News

Contractors are starting to suffer heavy cost pressure as the industry clocked up its fourth consecutive quarter of growth for the first time in six years. According to the latest all-industry trade survey construction firms of all sizes across the industry are now reporting strong new-build activity and high expectations for the year ahead. The first three months of the year also recorded the first significant jump in firms reporting tender price rises. But these are being forced up by intensifying labour and materials price pressure, rather than strong margin growth. While private housing remained the key driver in Q1, there was reported growth in commercial work and, for the first time, public school and healthcare work. The number of building firms reporting tender prices rises …

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The Construction Supply Chain Payment Charter has been hit with a new blow just weeks after it was launched with a whimper. Only nine firms were listed as signing-up to the charter last month during a low-key launch by the Department for Business, Innovation and Skills. But the Enquirer understands that Kier was wrongly listed as one of the signatories by officials. That leaves just eight firms backing the scheme with Laing O’Rourke and Skanska the only big main contracting names on the list. The charter commits firms to paying suppliers within 30 days from January 2018. It has already come under fire from specialist contractors who fear it will become another toothless initiative. The document has been drawn-up by the Construction Leadership Council and sets out 11 “Fair …

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Google is planning to re-tender its King’s Cross HQ contract due to radical design changes. Google British HQ – Telegraph The move will be a blow for BAM Construct who were named preferred bidder on the £300m contract last March after beating-off competition from Skanska and Carillion. The value of the contract could more than double as architects Allford Hall Monaghan Morris rework the scheme. BAM said: “While we are very proud to have won the original Google HQ scheme, we took the view a long time ago that its big re-think will be fundamental, and mean that the project won’t happen in this form. “Like everyone else, BAM will wait to see what Google decides about the future.” A consultant said: …

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THE number of state bodies planning to release publicly owned land for development is set to rise by more than a fifth in the next 12 months. The inaugural Lend Lease/ComRes Land and Regeneration Index interviewed 200 public sector officials with direct responsibility for land holdings. Three quarters of officers (76%) expect to release publicly owned land for development in the next 12 months compared with just 63% in the previous year. The new public sector land will predominately be used for residential development with a 27% rise in both social and private housing. Eric Pickles, Secretary of State for Communities and Local Government, said: “I welcome this new survey, which shows the scope for releasing surplus and redundant public sector property. “This will help provide more land …

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The construction recovery slowed to its lowest rate in six months according to the latest survey of buyers. The latest Markit/CIPS UK Construction Purchasing Managers’ Index fell to 60.8 in April from 62.6 in March. But output continued to rise strongly in all sectors with the index way above the 50 no-change threshold and the long-run survey average of 54.3 New business figures were also the highest seen this year and employment levels rose for the eleventh month on the trot. David Noble, Chief Executive Officer at the Chartered Institute of Purchasing & Supply, said: “While the rate of growth slowed slightly in April, the construction sector is still experiencing a remarkably strong and consistent period of expansion. “Positive news abounds as housing activity reached a near ten-…

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Tender prices will not make up the 20% eroded during the crash for another three years. According to the AECOM’s Tender Price Index average annual tender price inflation, across all sectors, will rise by 3.9% this year. Tender Prices If tender prices then rise as predicted the UK will have endured a 10-year wait to return to peak construction prices. Construction inflation figures, which are based on tender movements in the Capital, actually slowed a little in the first quarter of the year. Competitive supply and install rates for reinforcement (£950- £1,050/tonne); reinforced concrete (£135-£155/m3); steelwork universal sections (£1,400-£1,500/tonne); and steelwork hollow sections (£1,650-£1,850/tonne), remain broadly similar, or only marginally higher to those tendered in mid-2013. But growing capacity …

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A roofing firm and its managing director have been fined after a passer-by took photos of workers without safety harnesses. The member of public tipped off the HSE after seeing a man standing halfway down the sloping roof in Tyldesley using a jet washer to clear moss and other debris. An HSE inspector visited the site later the same day and immediately issued a Prohibition Notice ordering the workers from IQ Roofing Solutions to come down until scaffolding or other safety improvements had been implemented. Trafford Magistrates’ Court heard that Managing Director Stuart Bell had visited the site on the morning the work was due to start, and so knew it would be carried out without scaffolding around the edge of the roof. The company also …

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Part of the main seafront road in Brighton has been closed following the collapse of arches underneath during renovation work. Picture courtesy of the BBC Tonnes of rubble came crashing down underneath the road as contractors carried out renovation work to a pub situated in historic arches beneath the route. Engineers from Brighton and Hove Council are working at the scene to assess the damage. Council Executive Director Geoff Raw said; “Structural engineers will be working over the weekend to assess the extent of the problem which seems to have been caused by historic alterations to premises in the arches. “We’re working as swiftly as possible with the police and key partners to ensure public safety and to keep the traffic moving as smoothly as possible.” …

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Further details of the death of a construction worker in London’s Grosvenor Square this week have been revealed by his employer. Above: 20 Grosvenor Square The victim was Dainius Rupsys, a 33-year-old Lithuanian employed by site contractor McGee since 2012. As previously reported, he was killed on the afternoon of Monday 14th April after a partial collapse at a building site at 20 Grosvenor Square. The £250m project involves the conversion of the former London headquarters of the US navy into luxury apartments. McGee chief executive Declan Sherry said: “The incident involved a piece of machinery that was demolishing a concrete floor slab of around 12 square metres when the floor slab gave way and fell to the next level down.” He added: “Dainius was a …

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Proposals for University of Cambridge key worker homes at the North West Cambridge Development have been approved today by the local planning authorities. The 73 one- and two-bedroom apartments will be built to the north of the planned development’s local centre, providing a critical mass of University affordable housing alongside other residential buildings and social amenities. The proposals by Maccreanor Lavington Architects and Witherford Watson Mann Architects, with Grant Associates designing the courtyard landscape, include three connected buildings of varying heights and two courtyards. Project director Roger Taylor said: “This response and style of architecture reflects the vision for the development, which is to create an urban extension to Cambridge and we are thrilled that the local authorities continue to support the designs for the North West …

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