Search Results for: construction

Election uncertainly blamed for slowdown across the UK construction sector

Election uncertainly blamed for slowdown across the UK construction sector

Election uncertainly leads to slowdown across the UK construction sector The UK construction market experienced a slowdown in April, with output and new orders expanding at the slowest rates since June 2013, according to the latest Markit/CIPS UK Construction survey. Although the growth of commercial work was the least marked since August 2013, many survey respondents suggested that underlying conditions remained favourable, but some clients had delayed decisions ahead of the general election. Looking ahead, confidence regarding the 12-month outlook dipped from the nine-year high seen in March, but remained stronger than its long run average. A number of firms cited optimism that underlying demand would continue to improve, while others suggested that the removal of election related uncertainty would help support new business gains.

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Two new office developments worth £77m for construction firm

Two new office contracts worth £77m for construction firmConstruction group Galliford Try plc, has been appointed to two new major office contracts worth a combined £77 million. Its been selected as preferred bidder by Northamptonshire County Council to build its new headquarters in Northampton in a £38 million project. The new 17,600 sqm four-storey building is intended to consolidate the council’s existing offices in the town, and regenerate an area on the south side of the town centre. In addition to the office space, a café will be created together with extensive hard landscaping around the site. Galliford Try is also to deliver a new office building at Sutton in Surrey for offshore engineering company Subsea 7. The £39 million project creates a new 150,000 sqft Category A office space and associated facilities on the site of the former Brighton Road car park. Galliford Try Executive Chairman Greg Fitzgerald commented: “We have a strong reputation in the office sector and we look forward to providing these two clients with the first class facilities they require.”

BIM’s impact on future of built environment mapped out by construction experts

New report by construction group on digital future for built environmentA new report by an influential group of young construction professionals has been published today which illustrates the need for organisations to consider new skills, new processes and develop strategies around emerging technologies that will ensure that the UK stays ahead in embracing the digital construction future. The report by the BIM2050 Group, comprises a compilation of essays authored by BIM2050 work stream leads, and focuses on three key areas; education and skill; technology and process; and the culture of integration. Built Environment 2050: A report on our digital future, highlights the risks and challenges and the opportunities and benefits that come with large scale innovation and game-changing new technologies. Commented Graham Watts OBE, CIC Chief Executive: “It is an important discussion document of ideas and concepts that will, I hope, spark debate in the wider construction community.” More →

More construction developments required to solve office supply shortage

Construction Index warns of short supply of commercial office spaceThe development of new workplaces, shopping centres and industrial facilities is playing an increasingly important role in the UK’s economic recovery, according to the inaugural Commercial Construction Index by JLL and Glenigan. But the report raises concerns that the development of commercial space is still lagging behind the UK’s booming economy. Although the quarterly index reveals that work began on £22.7bn of commercial projects over the 12 months to June 2014, an increase of 6.6 per cent on the previous 12 months, Jon Neale, Head of JLL’s UK Research team warns that: “despite these positive trends, the volume of commercial space being started has not risen substantially since the recession and is still significantly behind the position before the crisis. There is evidence of an increasing supply shortage, particularly in the office market, and the amount of development needs to accelerate if this is not to hamper longer term recovery.” More →

Commercial property helps fuel rise in number of new construction projects

Commercial property fuels growth in construction projectsConstruction growth in the three months to June was at its highest peak since the start of the year, driven by a renewed strengthening of non-residential properties, according to new figures from industry analysts Glenigan. Following reports from the Confederation of British Industry (CBI) that the economy is growing at its fastest pace since its records began in 2003,the Glenigan Index, which covers the value of projects starting in the UK over the previous three months, is 20 per cent higher than a year ago. Its non-residential index is up by 24 per cent compared to the same period in 2013, the strongest rate of growth seen since the three months to January of this year; largely fuelled by the private sector, with the industrial, office and hotel and leisure sectors all seeing healthy improvements. More →

RICS claims UK is enjoying construction growth at fastest rate for 20 years

Construction sector

Construction workloads in the UK are growing at their fastest rate for twenty years, according to the latest quarterly survey from the Royal Institute of Chartered Surveyors (RICS). The report claims that while this is welcome news, it is causing pressure in the construction market in terms of skills shortages which are starting to put the brakes on further growth and leading to reports that contractors are even turning down projects. This appears to be a particular issue in the South East of England where the report claims there are unmistakeable signs the market is overheating. The survey found the balance of firms reporting workload growth in the first quarter of this year reached +43, the highest figure since the survey began in 1994, with consistent growth seen in the private housing, commercial and industrial sectors in every part of the UK.

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Consultation opens on changes to construction project safety

Safety on construction sitesA consultation on changes to the way safety on building projects is managed has opened today. The ten week consultation is being carried out by the Health and Safety Executive (HSE) on proposals to replace the Construction (Design and Management) Regulations 2007 (CDM 2007). These currently apply to all construction work in the UK, and cover construction, alteration, fitting-out, commissioning, renovation, repair, upkeep, redecoration or other maintenance, decommissioning, demolition or dismantling. Key changes being proposed include the replacement of the CDM co-ordinator role with a principal designer role within the project team; introducing a duty on information, instruction, training and supervision to replace the duty to assess competence; removal of the domestic client exemption and transfer of these limited duties to the contractor/designer; and the replacement of the ACoP with tailored guidance. More →

Government BIM target ‘unachievable’, claim construction industry experts

ConstructionThe majority of building industry experts surveyed by law firm Pinsent Masons believe that one of the key UK Government target for the uptake of Building Information Modelling  is now unachievable due to unfit contracts and the lack of a collaborative approach between clients and builders. The Government had hoped that all central Government construction projects would achieve BIM Level 2 by 2016. But according to the new report, nearly two thirds (around 64 percent)of the 70 people surveyed claimed it was impossible for the target to be met. ‘Level 2’ refers to a collaborative 3D setup in which all project information, documents and data are electronic with fully integrated software and interfaces.

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Strongest growth in commercial construction activity since 2007

Strongest growth recorded in commercial construction activity for over six years

The construction industry has had its best month for almost six-and-a-half years; including the largest increase in commercial activity since August 2007. Although the upturn was led by house building, which increased for the twelfth successive month; surging growth was also recorded for commercial construction and civil engineering, due to increased spending by business on infrastructure, office space, industrial units and retail outlets. The Markit/CIPS Construction PMI™ rose from 62.1 in December to 64.6, its highest since August 2007 – one of the strongest growth rates seen since survey data were first collected in 1997. The index shows that while house building has been rising for a full year, commercial building and civil engineering only started recovering in earnest last summer. However, growth of both has now accelerated sharply. More →

Fewer projects put on hold as construction sector recovery continues

Construction sector

In the week the ONS announced the UK unemployment rate has dropped to 7.1 per cent, comes more evidence of the recovery from the built environment. Figures released by construction industry analysts Glenigan have revealed that the value of UK projects put on hold during 2013 was the lowest since the start of the recession in 2008. In total, £12 billion of potential projects were put on hold last year, compared to £47 billion in 2012 and a peak of £80 billion in 2009. According to Glenigan economist Tom Crane, the value of stalled projects have been falling since 2009, but the latest figure shows the continuation of an encouraging trend, with a 16 per cent fall in the value of underlying projects.   More →

New CIOB survey lifts lid on extent of corruption in UK construction

Bribe brown envelopeA new survey from the Chartered Institute of Building (CIOB) claims that the majority of professionals in the UK construction industry believe that corruption in the sector is commonplace. The survey, which can be downloaded in full here, found that over a third (35 percent) had personally been offered a bribe or some other form of inducement at some point in their career, while nearly two-thirds (65 percent) believed the offer of gifts and corporate hospitality to win contracts is commonplace. A similar proportion (38 percent) of respondents had come across anti-competitive practices on at least one occasion, and of those, 29 percent had experienced cartel activity in the year running up to the survey.

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Construction sector awarded £60m for development of more energy efficient buildings

New Government funding announced to develop more energy efficient buildings£60 million to help the UK construction industry design and develop more energy efficient buildings is to be awarded by the Government’s Technology Strategy Board. The projects, which address the challenges of both new and existing buildings, are expected to leverage in an additional £60 million of industry investment and £30 million extra funding from across government and other agencies. The board has already invested £83 million of funding through the Low Impact Buildings Innovation Platform, (LIBIP). It aims to help the UK construction industry deliver buildings with a much lower environmental impact by investing jointly with industry and other funders in projects to bring innovative solutions to a growing market for more environmentally friendly buildings.   More →