The post Read the Latest News on UK Delays Low-carbon Rules, UK Pays Bae $5b for Royal Navy SSN-AUKUS, Global Holdings Builds UK’s Largest Full Timber Edifice, and Hs2 Train Link Frustrates Business appeared first on UK Construction Blog.

In today’s news, we will look into the government that is delaying the implementation of low-carbon requirements, the UK housing industry can save billions. In the meantime, the United Kingdom has given BAE a contract for $5 billion to build a new Royal Navy SSN-AUKUS attack submarine. In addition to this, Global Holdings is currently in the process of constructing the largest full-timber structure in the UK. Moreover, the UK prime minister’s reticence on the HS2 rail link has angered business leaders.Â

The UK Delays Low-Carbon Rules, Saving Housebuilders Billions

Original Source: UK housebuilders save billions as government delays low-carbon rules

Housebuilders have little motivation to act alone. As significant funders, they naturally want to get involved in politics.

At least 10% of Tory donations since 2010 came from property.

Last month, shares in several of the UK’s largest housebuilders soared substantially after the government proposed relaxing river pollution laws.

If they developed houses that could overload a local sewage system, nutrient neutrality standards required them to clean up wetlands and other damaged places. On housing shares, the government’s decision to eliminate the obligation was dramatic.

Persimmon, Taylor Wimpey, and Barratt Developments were among the top 10 FTSE risers that day. Barratt Developments 3.8%, Taylor Wimpey 3.3%, Crest Nicholson 7.4%, and Vistry 4.1% climbed. None of these five corporations have donated to the Conservatives, but they show the industrial impact.

The House of Lords blocked ministers’ rule modifications, delaying them. Even though scrapping them would increase river pollution in the UK, the administration insists on doing so.

These effects show how government policies affect housebuilders and the construction industry. No wonder builders want to get involved in politics as large fundraisers.

The Guardian’s research into housing sector political donations indicates that nutrient neutrality is just part of the tale. Delays to low-carbon homebuilding requirements over the past eight years have saved housebuilders billions.

A quarter of UK greenhouse gas emissions originate from housing. Most UK homes are elderly and need retrofitting to fix leaks and install heat pumps and solar panels. This massive task will take at least a decade.

Building low-carbon homes from the start is cheaper and climate-friendly. It lowers bills—a 2021 analysis estimated that a well insulated new-build using low-carbon energy would save the average home £200 a year, presumably considerably more today.

Housebuilders have little incentive to take these steps alone because it costs money. They’re cheap compared to retrofitting houses afterwards. The last Labour government’s zero-carbon standard, maintained under the Conservative-Liberal Democrat coalition from 2010 to 2015, would have required all housebuilders to meet such requirements from 2016.

After David Cameron’s 2015 general election victory gave the Tories a large majority, such rules were eliminated. Since then, Cameron has called for Conservative governments to use “muscular interventionâ€� to transition to a low-carbon economy. Cameron declined to comment.

However, low-carbon house technology is not new. Heat pumps have been around for years, but their fast adoption in other nations has stimulated innovation and manufacture, making them cheaper. Component shortages and inflation have raised solar panel prices marginally after a decade of steady decline. Building houses with good insulation demands better materials and design, yet both are available.

Recent UK development rates have been disappointing, and the country needs additional homes. Housebuilders argue that the government’s tight planning laws don’t help, but they ignore the fact that many major builders possess enormous “land banks” with planning clearance for thousands of unbuilt dwellings. Land values rise, therefore owning this land can generate a financial return.

E3G thinktank and MCS Charitable Foundation figures for the Guardian show that kitting out a home costs £8,530, including £1,100 for a 4kWhp solar PV system, £1680 for a battery, and £5,750 for an air-source heat pump.

These prices have increased in the last two years due to inflation and supply chain issues. The Climate Change Committee calculated that attaining the abandoned zero-carbon dwellings criteria would have cost £5,200 per property before the cost of living crisis.

MCS data from 2023 shows that an air-source heat pump and solar PV system retrofit costs almost £33,000, including £13,000 for the heat pump, £9,377 for solar panels, and £9,800 for an average-sized battery.

Developers shrugging off these expenditures to save money hurts homeowners, taxpayers, and the planet. Lord Deben, the climate change committee chair until recently, warned of the impact. He criticised the government for “subsidising the housebuilders� in the nutritional neutrality discussion.

He told the Lords: “The number of houses built has nothing to do with this at all – it is about whether the housebuilders think that will keep the price up at the level they have it. The housebuilders are not building the houses they have planning authority for in unaffected areas. With current mortgages, housebuilders have bought land at a price that limits their ability to sell at 300,000 homes. We will not reduce the number of houses by voting against this.

He noted that the government revisions would have “subsidised the housebuilders� by making taxpayers pay for nutrient mitigation schemes instead of polluters.

When energy secretary, Grant Shapps was questioned why the government didn’t require solar panels on newbuilds. He said the government wanted to be “technology neutral,â€� so people could make their homes low-carbon in other ways. Solar panels, a widely available clean technology that can be fitted more easily when a house is built and planned than added later, are hard to beat. Houses can then be built to face the right direction for the panels to catch the most sunlight.

Rishi Sunak promised to “make big decisions in the long-term interests of our countryâ€� and protect customers from net zero prices after his U-turns last month. However, the Guardian’s investigation indicates that the government has been willing to let newbuild homeowners pay tens of billions of pounds when it might inconvenience Tory benefactors.

United Kingdom Pays BAE $5B for Royal Navy SSN-AUKUS Attack Submarine

Original Source: U.K. Awards BAE $5B for New Royal Navy SSN-AUKUS Attack Submarine

The MoD revealed Sunday that BAE Systems will build its new nuclear assault boats for the Royal Navy and Australia for $4.95 billion.

After winning the SSN-AUKUS, BAE Systems can commence thorough design and obtain long lead materials boats that will start building in the late 2020s and deliver in the 2030s.

The financing follows the March AUKUS announcement by Australian, British, and American presidents. According to BAE Systems, Australia and the U.K. will operate SSN-AUKUS submarines based on the U.K.’s next-generation design and incorporating technology from all three nations, including cutting-edge U.S. submarine technologies.

Australian nuclear submarines will be based on the new vessels, which will replace the Royal Navy’s Astute-class.

U.K. Defence Secretary Grant Shapps said, “This multi-billion-pound investment in the AUKUS submarine programme will help deliver the long-term hunter-killer submarine capabilities the U.K. needs to maintain our strategic advantage and secure our leading place in a contested global order.

BAE said the operation would bring 5,000 workers to its north England shipyard. It would increase garden workers to 15,000.

“The U.K.’s submarines will be built principally in Barrow-in-Furness, while Australia will work over the next decade to build up its submarine industrial base and build its submarines in Australia with Rolls-Royce supplying the nuclear reactors for all U.K. and Australian submarines,â€� the MoD said.

Babcock received a parallel engineering assistance contract from the MoD to help develop the new boat.

The prize follows the March declaration by Australian, U.S., and U.K. presidents of their 20-year targets.

The SSN-AUKUS is the main thrust in the third phase of the programme, which follows the deployment of U.S. and U.K. nuclear submarines to western Australia and the sale of up to five Virginia-class submarines.

Last month, U.K. Royal Navy First Sea Lord Adm. Ben Key told USNI News that Australia’s industrial base was crucial to constructing SSN-AUKUS assault boats.

“What industrial options would they use? Key added that more precise planning will allow Australia to develop nuclear submarines and ensure that they get SSN-AUKUS.

At last month’s International Seapower Symposium in Newport, R.I., Royal Australian Navy Vice Adm Mark Hammond told USNI News that having their own industrial base capacity is the biggest obstacle to building their own submarines.

He told USNI News, “The big lift is making sure we can manage and steward the nuclear ocean piece you can’t fake that you’ve got to earn the trust [from your partners].

Our career adventure is on improving nuclear power skills. The submarine component is mostly done. Get a number of Australians in the front half of Virginia-class submarines tomorrow and give him a couple of weeks to dive, fight, and surface it.�

The U.S. Pentagon and Congress are developing legislation and regulations to allow technology transfers to develop the SSN-AUKUS boat for Australia and the U.K.

We went through that process for years, and the regulatory climate has improved. Understanding how we develop an ability for Australia to conduct full and comprehensive nuclear stewardship like the U.S. is a really critical part of this journey, Key told USNI News.

Global Holdings Builds UK’s Largest Full Timber Edifice

Original Source: Global Holdings’ Construction of Largest Full Timber Structure in the UK

Memery Crystal designed, developed and built Global Holdings’ net-zero carbon office building, the UK’s largest full timber workplace.

The 95,000-square-foot LETI Pioneer building was developed with circular economy ideas in mind, using green construction processes and sustainable materials. This office building will lower its carbon footprint more than the UK Green Building Council’s Net Zero Office aim. It surpasses GLA and Camden energy efficiency and sustainability goals.

Besides ecological design, the LETI Pioneer building prioritises human health. Most floors have landscaped terraces, a community yoga deck and rooftop garden, a ground-level café and active commuting hub, and huge windows for natural light. Enabling work will begin this year, with on-site work starting in early 2024 and finishing in Q1 2026.

Memery Crystal assisted Global Holdings with Head of Construction Jo Kelly, Legal Director James Ashwin, and paralegal Meera Pankhania.

Interview with Jo Kelly, Memery Crystal:

Can you describe this project and how Memery Crystal helped finish it?

Given the enormity of the development and its sustainability and ecological credentials, working with Global Holdings on it is fascinating.

Memery Crystal advises on legal papers and appoints experts like Piercy & Co (architects) and Heyne Tillet Steel (structural engineers) for this project. We also advised on the enabling contractor, Erith Construction Limited, and the main contractor, who is being appointed.

We make sure the legal documents reflect the full extent of services consultants and contractors provide and stimulate construction supply chain cooperation and innovation.

The client worked hard to establish a collaborative approach to this project, including bringing in builders and subcontractors early to advise the designers on design buildability.

We must also guarantee that our legal bundle of paperwork fits the needs of any third-party lenders financing the project and any tenants who may occupy the building.

How did your team’s skills help the project succeed?

This project’s staff is well-structured to provide effective service. As the supervisory partner, I’ll make legal document decisions. James Ashwin, assisted by Meera Pankhania, manages the project daily. Teamwork made the legal paperwork and procurement process successful!

The staff is good at problem-solving and will work with a consultant to resolve a contract legal issue that benefits both parties.

Meera excels at document management and follow-up. This is crucial given the quantity of documents we manage on a project this size and complexity!

Did you face any major challenges creating LETI Pioneer? How did you overcome them?

We’ve had no major procurement issues. The design team and contractors seem enthusiastic about this novel project and have been simple to work with. sector costs consultants report that construction sector inflationary pressures since COVID-19 are reducing and that construction product procurement lead times have eased. Both things helped the project, in my opinion.

UK PM’s Inaction on HS2 Train Link Frustrates Business

Original Source: Business frustrated over UK PM’s silence on HS2 rail link

CEOs, businesses, and MPs from northern England wondered on Monday whether Prime Minister Rishi Sunak will scrap or delay the northern leg of Britain’s HS2 high-speed rail project.

Most agreed Sunak had likely opted to delay the stretch from Birmingham to Manchester, the northern English home of the Conservative Party’s conference, but they were mystified and upset why it hadn’t been disclosed.

On Monday, a source from Sunak’s Number 10 office stated HS2 had not been decided, as government officials have been saying for weeks.

But Manchester business leaders and groups feared the writing was on the wall, with one boss, who requested anonymity, calling the northern leg’s possible cancellation or delay a “betrayal” by government.

, or High Speed 2, was supposed to connect London to Birmingham, Manchester, and Leeds, but it was drastically back. Every delay increases project costs, say business experts.

The once-in-a-generation opportunity to level up will be missed. You will damage our worldwide investment profile “West Midlands Conservative mayor Andy Street stated.

Given growing costs, government authorities have suggested reviewing HS2, Europe’s largest infrastructure project, which may cut its northern section and cause corporate cautions about investment.

Sunak has often claimed he will make “tough decisions” at his party’s annual convention to restore his premiership and close the polls on the Labour Party before next year’s election.

By removing the Manchester link, HS2 would only serve London and Birmingham. First-phase work is advanced.

HS2’s budget rose before Britain’s double-digit inflation from late 2022 to early 2023.

Its 2015 cost of 55.7 billion pounds ($68 billion) rose to 98 billion pounds by 2019, and a 2020 study predicted 106 billion pounds.

0.8234 pounds = $1

Summary of today’s construction news

Overall, we discussed several of the top housebuilders in the UK saw their stock prices surge last month after the government proposed easing river pollution restrictions. Nutrient neutrality guidelines mandated the restoration of wetlands and other degraded areas if the construction of new homes threatened the capacity of the local sewage system. The drastic elimination of the government’s housing share responsibility was a result of this decision. Meanwhile, new nuclear assault boats for the Royal Navy and Australia will be built by BAE Systems, the Ministry of Defence announced on Sunday. The contract is worth $4.95 billion. With the SSN-AUKUS contract in hand, BAE Systems can begin meticulous design and secure long lead materials for boats that can begin construction in the late 2020s and be delivered in the 2030s. In another development, the largest full-timber office block in the United Kingdom, owned by Global Holdings, was planned, developed, and constructed by Memery Crystal. The 95,000-square-foot LETI Pioneer building was built utilising eco-friendly methods and sustainable materials with a focus on the principles of the circular economy. The carbon reduction achieved by this office building will exceed the Net Zero Office standard set by the UK Green Building Council. It exceeds sustainability and energy efficiency targets set by the Greater London Authority and the London Borough of Camden. Moreover, Northern England’s business leaders and lawmakers spent Monday wondering if Prime Minister Rishi Sunak will cancel or postpone the construction of the northern section of the HS2 high-speed train line.