Ofwat’s direct procurement reform creates the potential for water companies to win wholesale business from areas outside of their own patches, according to Pennon Group chief executive Chris Loughlin. As part of its Water 2020 reforms, Ofwat proposed that infrastructure schemes of suitably high value will be opened up to competition. It said this ‘direct procurement’ approach would require water companies to secure services from a third party for a project over £100 million whole-life totex, as was taken in the case of the Thames Tideway Tunnel. Loughlin told Utility Week: “There are opportunities if you are an efficient company, and we think we are, if you can deliver capital schemes efficiently, which we think we can, and focus on what customers need. There are opportunities out of that as well as concerns.” He said the fact this will apply on a whole-life totex basis would “reduce the threshold for what schemes will be caught by this new arrangement”. “The whole-life costs include the operating costs for the whole life of the assets, so it isn’t £100 million capex, it might be £50 million or something even less than that,” he said. “That means there will be a lot more schemes potentially open to this new arrangement.” He added that it was “an interesting proposition” from Ofwat, but would need further consideration. “It does mean there is potential for companies who are efficient and can deliver schemes well to be able to win some of the wholesale business from areas outside of their own patch,” he added. Ofwat said a possible consequence of direct procurement is that water companies may not design, build and finance as many large projects or operate the new assets as they would under existing methods. Consequently, water companies and their shareholders may feel they are losing out, the regulator said, “but this will be offset by gains for other private companies and customers”. The regulator estimates the net benefits of a direct procurement approach to be between £400 million and £850 million.   Source link

International real estate advisor Savills, on behalf of Pears Property, has sold The Levels, Capital Business Park, Phase 2, Cardiff to Longmead Capital in a deal reflecting a net initial yield of 7.34%. Built in 2006, The Levels is Cardiff’s most successful industrial park and comprises 119,306 sq ft (11,083 sq m) across 26 units in a site area of approximately 7.18 acres (2.904 hectares). The scheme generates an annual rental income of £369,632 per annum with current tenants including national occupiers such Fed Ex, National Grid and Panalux Ltd. Ross Griffin, investment director at Savills Cardiff, comments: “Having originally purchased The Levels in 2014 from AXA Insurance, our client has successfully asset managed the scheme to create the best multi-let industrial park in Cardiff. This was reflected in the strong yield, which is the sharpest multi let industrial yield seen in Cardiff for almost a decade.” Longmead Capital was advised by JLL. Source link

The RIBA Future Trends Workload Index increased marginally this month, standing at +29 in September 2014 compared to +28 in August 2014, maintaining the consistently strong workload forecast we have seen throughout the current calendar year. Overall confidence levels about future workload prospects for architects continue to be very positive across the whole of the UK. Northern Ireland and the North of England, which were the slowest to show signs of recovery, are currently the most confident about an increase in work in progress in the next quarter, returning balance figures of +80 and +46 respectively. Small practices (1 – 10 staff) remain positive about the outlook for future workloads (with a balance figure of +28), medium-sized practice (10 – 50 staff) are more confident (balance figure of +37), and large-sized practices (51+ staff) are the most optimistic about the likely shape of their medium term order books (with a balance figure of +60). The private housing sector forecast recovered the ground it lost in August, rising from +23 to stand at +30 in September 2014. The commercial sector forecast fell back from +23 in August to +19 this month. However both the public sector forecast (balance figure +5) and the community sector forecast (balance figure +7) saw modest increases this month. RIBA Director of Practice Adrian Dobson said: “Although the private housing and commercial sectors clearly offer the best current prospects, there is a sense of greater stability in public sector workloads, with larger practices in particular becoming more optimistic about a more predictable pipeline of public sector construction expenditure, and modest signs of increasing activity in the community sector.” The RIBA Future Trends Staffing Index increased this month, rising to +15 in September 2014 compared with +13 in August 2014, remaining strongly in positive territory, with only 2% of practices predicting a decrease in overall permanent staffing levels over the next quarter. However, this confidence is not yet manifesting itself in a significant increase in aggregate staffing levels across the profession, although we are beginning to receive reports of practices experiencing difficulties in recruiting staff with particular skill sets, especially in London and the South of England. In September 2014, the percentage of our respondents reporting that they had personally been under-employed in September 2014 was 17%, up from 13% in August. Dobson added “Our anecdotal commentary from RIBA members suggests that the overall market outlook for architects’ services continues to improve, with many practices reporting a sustained increases in their overall work levels. However, there remains significant competitive pressure on fees and whilst aggregate turnover is rising, profit margins on projects often remain very tight.” ENDS Notes to editors For further press information contact the RIBA Press Office: 020 7307 3761 pressoffice@riba.org  The Royal Institute of British Architects (RIBA) champions better buildings, communities and the environment through architecture and our members. Completed by a mix of small, medium and large firms based on a geographically representative sample, the RIBA Future Trends Survey was launched in January 2009 to monitor business and employment trends affecting the architects’ profession. To participate in the RIBA Future Trends Survey, please contact the RIBA Practice Department on 020 7307 3749 or email practice@riba.org.  The survey takes approximately five minutes to complete each month, and all returns are independently processed in strict confidence The Future Trends Survey is carried out by the RIBA in partnership with the Fees Bureau. Results of the survey, including a full graphical analysis, are published each month at: http://www.architecture.com/RIBA/Professionalsupport/FutureTrendsSurvey.aspx The definition for the workload balance figure is the difference between those expecting more work and those expecting less. A negative figure means more respondents expect less work than those expecting more work.  This figure is used to represent the RIBA Future Trends Workload Index, which for September 2014 was +29 The definition for the staffing balance figure is the difference between those expecting to employ more permanent staff in the next three months and those expecting to employ fewer. A negative figure means more respondents expect to employ fewer permanent staff.  This figure is used to represent the RIBA Future Trends Staffing Index, which for September 2014 was +15   Posted on Wednesday 22nd October 2014 Source link

One of the UK’s leading real estate businesses, The Crown Estate, has appointed Savills as professional advisor to its Strategic Land Portfolio. The appointment is for the project management of over 60 sites, with a capacity for 15,000 new homes and 5 million sq ft of commercial space, for a three year period. The Crown Estate manages a portfolio of over £11bn assets, including a core focus on actively promoting land for development through the planning process, taking a considered and long-term approach to support the delivery of high quality, desirable places for people to live and work in. Last year The Crown Estate secured consent for 7,000 homes across the country. As well as a dedicated project management team, Savills will assist with the promotion of sites through the planning process, securing planning permissions, land acquisitions and disposals. Key sites in the portfolio include: • Hemel Hempstead – a potential urban extension to the east of the town that could deliver up to 2,500 hew homes and 55 hectares of employment land.• Bingham, Nottinghamshire – a major strategic site to the north of the town with planning permission for 1,050 homes and 16 hectare of employment land.• Luton – a potential urban extension to the east of the town for up to 2,100 in conjunction with other developers.• Knutsford, Cheshire – potential releases of land for housing on the north western side of the town. Steve Melligan, Strategic Land Manager, The Crown Estate said: “Savills’ expertise and experience will make a valuable contribution to the development and growth of our strategic land portfolio, where we take a considered and collaborative approach to bringing forward the right sites, in the right places, for much needed new homes and where people are proud to live.” Peter Blake, Director in Savills Funding & Development Team, who is leading on the project, said: “We’re delighted to be working with The Crown Estate across their strategic land portfolio, and look forward to securing planning permissions to unlock much needed housing across the country and great places for people to live and work in. They have a significant appetite for new acquisitions, so our 650 strong development division will be on the look out for new opportunities”. Richard Rees, Savills Executive Director and Head of Development says: “This is a fantastic instruction for Savills and we are delighted to be involved in this really important portfolio’   Source link

16 September 2016 | Jamie Harris A report has found that US building owners, managers and investors are becoming increasingly interested in creating healthier buildings. The Drive Toward Healthier Buildings 2016, published by Dodge Data & Analytics with research partner the World Green Building Council, suggests that the US could be set to adopt building practices that prioritise the well-being of occupants. On surveying 671 owners, architects, interior designers and contractors in the US, the study notes that occupant health and well-being was becoming a more important factor in influencing design and construction decisions.  Two-thirds of building owners cited this factor as important, while architects placed more emphasis on the occupants’ welfare (74 per cent). Better lighting and daylight exposure, spaces that enhance social interaction, and enhanced air quality are all currently building features high on the agenda for respondents. But the research also found a gap between what building owners want and what architects and contractors set out to achieve. Three-quarters of owners want to achieve improved employee satisfaction when they invest in healthier buildings, but only 68 per cent of architects, 51 per cent of contractors, and 41 per cent of interior designers see this as a top goal for their clients. Despite an improved focus on well-being initiatives in the built environment, more than half of building owners surveyed did not know the impact of these investments on their organisation, and a quarter did not know the impact on employee satisfaction. The report was published in the same month that a British and International Standard that prioritises employee well-being was launched. BS ISO 27500 was developed with input from BSI’s ergonomics standards committee. It sets out to help businesses achieve a ‘human-centred organisation’ and act in socially responsible ways. The Drive Toward Healthier Buildings 2016 report can be downloaded here. Source link

Construction Equipment Market – Global and China Forecast, Market Share, Size, Growth and Industry Analysis, 2011 – 2017 The global construction equipment market, driven by infrastructural developments in emerging economies, is poised to grow by 6.0% to a valuation of US$192.3 billion by the end of 2017. As per a recent market research report, the global construction equipment market amounted to US$143.6 billion in 2012. Emerging Economies Contributing to Construction Equipment Market India, China, and Brazil are some of the major emerging economies, contributing to the growth of the global construction equipment market during the forecast period. The Brazil construction equipment market seems to be well placed with infrastructural advancements, political stability, and economic growth. The Middle East and Africa are expected to exhibit promising growth in their construction equipment market, as new construction OEMs are ready to enter the market. Increase in infrastructural developments have led to better contribution from these countries. China leads the market with a 40% share of sales in the global construction equipment market. In China, the construction equipment market is projected to develop at a CAGR of 10.1% in the period from 2012 to 2017. Irrespective of import restrictions in countries such as India, Brazil, and China, their economies are steadily growing. Get Sample Report Copy at –http://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=110 Demand from the construction equipment market in Europe will be average in upcoming years. Growth in public development projects such as roads, railways, schools, and water systems, will help China grow faster during the forecast period. Compared with other regions, Asia has been the promising market for global construction equipment. Asia will continue to lead the global construction equipment market in coming years. India, along with China, has driven the market due to improved performance of the mining and construction industries. Wheel loaders and excavators are the two dominant product segments of the entire construction equipment market. Factors driving the construction equipment market The global construction equipment market is driven by investments in infrastructural development. Volvo, Caterpillar, and Komatsu have evolved as key players in the manufacture of construction equipment. By rapidly implementing technology advancements in the manufacturing process of construction equipment, these players are setting perfect examples for others. Growth in investments by the government in several infrastructural activities has helped the developed countries to contribute further. Support from the government in the form of eliminating current tax compulsions and lowering the tax burden has helped the players implement technology advancements with minimal inconvenience. Additionally, increasing demand from the industrial and real estate sectors has played a major role in developing the construction equipment market globally. Lease-based equipment assists the construction equipment market to overcome the market challenges.   With the help of market opportunities such as global expansion by acquiring infrastructure advancements, demand from real estate, and focus on research and development, the global construction equipment market is ready to overcome the challenges it faces. Some of the challenges that the construction equipment market needs to tackle are differences in restrictions and import duties, security concerns, and strict emission regulations. The overall market is segmented into construction equipment market, construction vehicles market, and agriculture equipment market. The global construction equipment market is forecast to grow faster by applying new marketing strategies such as brand value creation, value addition to the customers, new product development, and globalization with marketing tie-ups. Browse  Market Research report athttp://www.transparencymarketresearch.com/construction-equipment-market.html About Us Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information. TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports. Source link

It has been announced that over the next two years hundreds of thousands of construction workers will be in line for a pay rise, along with a number of other benefits. After several lengthy discussions, an agreement was reached between contractors and unions for the Construction Industry Join Council. From July 25 this year, more than 400,000 professionals in the construction industry will see a rise in their pay by 2.5%, and by a further 2.75% in June next year. This figure is much higher than inflation rates, which were measured in May at 0.3%, with the two year pay deal securing increases in sick pay in the industry and subsistence allowance. Furthermore, construction workers will now be able to take an extra day of holiday from January 1 next year, with changes also set to be introduced on the way travel distances are calculated. Instead of kilometres, the system will now produce a figure in terms of the number of miles travelled. Unite, Ucatt and GMB unions all welcome the deal, although they added that they will now be turning their attentions to securing further benefits for workers. Among the areas they will now work on are the impacts on supply chains, the rates of pay and the London Living Wage. Employer’s secretary to the CIJC, Gary Lean, said that the agreement has been put in place to benefit all parties involved. He said that a robust series of negotiations have come to a close with the result being another two year agreement which will not only benefit industry workers but also employers and clients. Mr Lean added that all parties involved have now secured certainty for the next two year period and  unions and employers have continued a harmonious relationship. Therefore, he insists, this is good news for all parties involved.