May brought with it a continuation of the inertia established in April as the nation, and more specifically construction, holds its breath ahead of the Brexit referendum. Neil Edwards reports Our Contracts League table for May 2016 brings together data on almost 700 new contract awards with a combined value
The company said it was “unlikely” to continue building at scale in London in the near term as it focuses on letting its remaining space. The statement came as Land Securities revealed a 46 per cent drop in profit in 2014/15. Pre-tax profit fell from £2.4bn to £1.3bn, with the
The UK’s domestic gas and electricity prices were “amongst the lowest” in the EU in 2015, the Department for Business, Energy and Industrial Strategy has said. However, this was only the case when adjusting the prices to take account of the purchasing power of the pound relative
The Government wants to see a five-fold increase in the supply of shared ownership homes as part of its drive to reverse the decline in home ownership and has committed the most significant ever funding to support this ambition. A £4.1 billion budget has been announced to deliver a total
Owning a listed building is literally owning a piece of British history. The National Heritage list details over 376,000 sites in the UK, each with a unique character and special value to the local, regional or national community. The drawback of living in a heritage home is that traditional building
BFK is a joint venture that has been formed by BAM Nuttall, Ferrovial Agroman (UK) and Kier Infrastructure as part of the Crossrail London rail project. This contractor, consisting of the three companies combined, has been fined in excess of £1 million because of three different accidents that have taken
May brought with it a continuation of the inertia established in April as the nation, and more specifically construction, holds its breath ahead of the Brexit referendum. Neil Edwards reports Our Contracts League table for May 2016 brings together data on almost 700 new contract awards with a combined value of £3.69bn won by 374 contractors. This is as close to the established norm of £4bn per month as makes no real difference (what’s £300m between friends?) and, taken at face value, merely maintains the post-recession status quo. Dig a little deeper, however, and the signs that the industry is in a holding pattern are plain to see. It is now usual for each of the Top 10 companies in our Contracts League table to have topped the £100m mark in new contract awards each month. In May, only the top seven managed to pass that threshold. Laing O’Rourke and Galliford Try claimed the number one and number two slots respectively, but they did so with a combined haul of 28 contracts. This relatively large number of modestly-valued contracts throws into stark relief the absence of major landmark contracts these days. And when it comes to work being put out to tender – the closest thing the industry has to a crystal ball for predicting future prosperity – figures have fallen from the £4.5bn monthly average of this time last year to a relatively paltry £1.8bn in May 2016. This has had a significant impact on the Contracts League table for the “rolling year” total, which has fallen from a high of £56.6bn at the end of December 2015 to £50.41bn today, a fall of just over 12%. Against this background, Laing O’Rourke emerged victorious in the May 2016 Contracts League, bagging a total of nine contracts worth a combined £207.7m. Key among these is the £76.2m contract to build a new 192-unit residential tower for Imperial College, London. The 20,000m2 building will be erected on Imperial’s White City Campus in north London. Taking second place was Galliford Try, which won the additional distinction of pocketing the most contract awards this month; its haul of 19 new projects has a combined value of £202.3m. Like Laing O’Rourke, Galliford Try has scooped a couple of nice student accommodation jobs, together worth £102m. One is the £62m Park View Student Village for Newcastle University; the second, worth £40m, is for a nine-storey block containing 770 bedrooms at Godiva Place, Coventry, for Coventry University. Skanska – a constant presence among the Contracts League Top 10 – took third place with just two contracts worth a combined £165m. Largest of these is a £153m contract for the refurbishment and repair of London’s Waterloo Station for client Network Rail. Balfour Beatty, meanwhile, secured four new contracts worth a combined £152.6m to slide in at number four in the League. Its haul included a £130m deal with Highways England to build a controversial 3,600-vehicle lorry park on the M20 motorway near Dover. This facility, which is expected to be operational by the summer of 2017, is designed to prevent the traffic chaos of last year, when thousands of trucks heading for the Continent were parked on the motorway for days (a process dubbed “Operation Stack” by Kent Police) as a result of strikes by French ferry workers. To those companies occupying the seven top places in the Contracts League, May 2016 looks pretty much like a continuation of the prevailing trend. For the wider industry, however, this month’s EU referendum and an end to the interminable in/out hokey-cokey of recent weeks cannot come soon enough. Neil Edwards is chief executive of The Builders’ Conference Further Images This article was published on 29 Jun 2016 (last updated on 29 Jun 2016). Source link
The company said it was “unlikely” to continue building at scale in London in the near term as it focuses on letting its remaining space. The statement came as Land Securities revealed a 46 per cent drop in profit in 2014/15. Pre-tax profit fell from £2.4bn to £1.3bn, with the company blaming “valuation increases [that] were unable to match the sharp increases in the year to March 2015”. Revenue profit, which excludes valuation movements and one-off items, was up 10 per cent to £326m. Commenting on the strategy, chief executive Robert Noel said: “With construction largely complete, we are focused on letting our remaining space and giving our customers the best occupier experience. “We will continue to seed our portfolio with opportunities for the future, although we are unlikely to resume building at scale in London in the near term.” Mr Noel also issued a warning on the dangers of the UK leaving the EU, saying an exit would drive down occupational demand in the property market. “In turn, this would lead to falling rental values and a reduction in construction commitments, particularly in London,” he said. “So an exit could be painful for the property industry and those it supports.” He added: “But there is a higher principle at play here. This is a decision for the British people, not businesses. “It is up to individuals – including those among our customers, communities and partners – to decide what’s best. “As guardians of shareholder capital, our responsibility is to position the company so it can thrive whatever the outcome. That’s what we have done.” Financial highlights Valuation surplus £907.4m (£2.04bn: 2015) Profit before tax £1.34bn (£2.42bn: 2015) Dividend 35p (31.85p: 2015) Source link
The UK’s domestic gas and electricity prices were “amongst the lowest” in the EU in 2015, the Department for Business, Energy and Industrial Strategy has said. However, this was only the case when adjusting the prices to take account of the purchasing power of the pound relative to other European currencies. Britain’s domestic gas prices were twelfth cheapest out of 28 when compared using the market exchange rate, putting them 5.3 per cent above the median for the region. Compared on the basis of the ‘Purchasing Power Standard’ per kWh, only Luxembourg had cheaper gas. Using this metric UK prices were 29 per cent below the median. Domestic electricity prices in the UK were 26 per cent above the median and the eighth most expensive when sized up using the exchange rate. They were sixth cheapest when adjusted for purchasing power and 19 per cent below the median. Industrial gas prices were twelfth cheapest in the union when judged according to the exchange rate but were third cheapest when adjusted for purchasing power. The picture was less rosy for industrial electricity. Even on the basis of purchasing power Britain ranked eleventh and dropped to second from the bottom when using the exchange rate. Source link
The Government wants to see a five-fold increase in the supply of shared ownership homes as part of its drive to reverse the decline in home ownership and has committed the most significant ever funding to support this ambition. A £4.1 billion budget has been announced to deliver a total of 135,000 additional shared ownership homes, equivalent to funding of £30,000 per home. Significantly, private developers will now be able to bid for grant funding alongside housing associations. This opens up new opportunities for development and investment into a historically undersupplied market, according to real estate adviser Savills. In its latest analysis, Savills estimates that there is market capacity to absorb at least 60,000 additional shared ownership homes per year. There is excess demand across the country, but the greatest volume is in markets where affordability is most stretched and therefore demand is highest, notably in the south of England (see map below). Build volumes averaged less than 8,000 per annum in the three years to March 2015, suggesting a huge mismatch between supply and demand. “The Government’s policy and financial commitment to this form of home ownership could be a real game changer,” says Mervyn Jones, director, Savills housing consultancy. “Investment activity in the sector has so far been limited, but there is now a clear opportunity for new investment vehicles that will not only accelerate the delivery of much-needed shared ownership homes but also create stable returns to the investor.” The diversity of subsidised home ownership schemes (Starter Homes, Help to Buy and shared ownership) now available means demand for each may overlap, reducing the potential rate of delivery across a site. Developers of large sites therefore have a real incentive to retain control of sales to ensure that different products are effectively differentiated. “We could see developers retaining the first tranche sales of shared ownership homes, but they will then wish to pass on the management responsibility and secure a capital return for the unsold equity,” says Piers de Winton, director in residential investment at Savills. “Housing associations are likely to remain best placed to take on the management of the new units, while the unsold equity creates a new investment asset which would go to the highest bidder. The net result could be a speeding up of delivery.” Investor returns come in two forms: rental income at a standard 2.75 per cent, index-linked yield, and capital repayments on staircasing, though performance data is to date largely anecdotal. However, evidence suggests that delinquency rates (occupier default on rent or mortgage payments) are very low, while the fact that the income from shared ownership has rarely been sold by housing associations is a testament to the quality of the asset. The opportunity is concentrated in high value markets where affordability is most stretched. This is largely the south of England, although in many parts of London it will be difficult to deliver viable shared ownership below the income caps except by selling very small initial shares and reducing the rent on the remainder below the standard 2.75 per cent. To see a map of the shared ownership potential, please click here. Source link
Owning a listed building is literally owning a piece of British history. The National Heritage list details over 376,000 sites in the UK, each with a unique character and special value to the local, regional or national community. The drawback of living in a heritage home is that traditional building techniques do not always hold up in the modern world, and often simply by their nature of being hundreds of years old, become vulnerable to a number of issues over the years. Maintenance and repairs are often a constant requirement, and while you’re not obliged to improve the condition of a listed building during your tenancy, it is necessary to preserve it at the level at which you took ownership. Here are some of the most common problems found in historic buildings, and what measures you should take to look after an ailing property. Damp Fortunately, damp issues are often the simplest to resolve in a period property. Once an experienced surveyor has confirmed the source of the damp, you will likely be left with one of three scenarios. In many situations, damp can be remedied by repairing roof timbers or tiles, emptying and adjusting gutters or removing non-porous materials, such as concrete, that are preventing older elements from breathing. Other cases may need the external landscape to be adjusted, as it may have bridged your home’s damp proof course (DPC), allowing moisture from the ground into the walls. Timber Frames Timber frames are a stunning feature in any home, but they do require significant attention to keep them healthy and functional over the generations. Poorly-planned structural changes often cause timbers – particularly those hidden between floors or behind render – to succumb to damp, rot and distortion due to heavy loads. When cleaning your beams, use a damp cloth or soft brush; don’t be tempted to reach for a harsher cleaning agent, which can strip away generations of delicate patina. A light coat of beeswax polish will keep beams glowing, and won’t stay sticky like linseed oil. If you notice softness in the wood, or clean, light-coloured bore holes from insects, call a professional timber surveyors for a proper diagnosis and sensitive treatment plan. Insulation Although their character is woven into the fabric of our community, the construction of listed buildings does not always mesh so well with modern energy bills. Where most homeowners add an extra layer of wool into the loft, or another pane of glazing into the windows, with a listed building it is not always to simple. Adding wall insulation can prevent the house from “breathing”, causing moisture to get trapped and create damp. Suspended timber floors have space for padding between the joists, but the installation process can easily damage old floorboards. For double glazing, windows should be considered on a pane by pane basis. Do they contain the original glass, or otherwise contribute to the historic interest of your home? If not, you can probably obtain permission for new windows with relative ease, providing your new frames are sensitive to the style of the property. Consulting with a specialist surveyor, or your Conservation Officer, should shed some light on the possible changes for your home. Further details about your options for insulating a period home can be found on the Historic England website. Unauthorised Alterations Any work on a listed building, including repairs and maintenance, must be sanctioned by the local Conservation Officer. They may advise particular materials or techniques to preserve the integrity of the original building, and not soliciting their approval can have severe penalties. Currently, anyone convicted by the Crown Court for completing work without Listed Building Consent can face unlimited fines and up to 2 years imprisonment. If previous owners have taken their chances and made changes to a building without Listed Building Consent, the liability for taking corrective action becomes yours upon taking ownership. There is no time limit on these corrections being enforced, so it’s vital that a Listed Building Survey is conducted before you move in. Wear and Tear The simple passing of time may be all that creates a need for repairs to be made to the property, whether it be a fresh coat of render or the replacement of damaged roof tiles. Regular inspections are recommended to minimise the need for extensive work on a historic building, and put the focus on routine maintenance instead. Conservation is advocated by Historic England, and homeowners are encouraged to restore their homes using historic fabrics and techniques wherever possible. If authentic materials are no longer available, the most comparable modern alternative is required, to maintain the function and aesthetic of the original building. While they certainly take a bit of care, few homeowners are willing to give up the character and uniqueness of their heritage building, and with a little bit of effort they can provide truly wonderful homes for your family.
BFK is a joint venture that has been formed by BAM Nuttall, Ferrovial Agroman (UK) and Kier Infrastructure as part of the Crossrail London rail project. This contractor, consisting of the three companies combined, has been fined in excess of £1 million because of three different accidents that have taken place in the Fisher Street development site in Holborn. The central London construction work is being carried out in order to deliver a new railway line that, when complete will be known as the Elizabeth line. The new tracks well go through central London and is expected to be open in 2018. The contractor BFK has been sentenced today, on the 28th of July at Southwark Crown Court after Rene Tkáčik, which occurred when a section of the roof collapsed on him while he as working on the 7th of March 2014. The other two accidents that took place at the Fisher Site were the severe leg injuries sustained by Terrence Hughes after being hit by a reversing excavator in an incident on the 16th January 2015, and head injuries suffered by Alex Vizitiu on the 22nd January 2015 after he was hit by a high pressure mix of water and concrete during a routine operation at the site. At a previous hearing which took place at Magistrates’ Court, the contractor pleaded guilty all three of the offences. The company admitted being in breach of reg 10(2) of the Work at Height Regulation that relates to falling objects. The company was in breach of this regulation at the time Rene Tkáčik died. In relation to the other two incidents that took place in 2015, BFK pleaded guilty, admitting breaches of s. 22(1) (a) of the Construction (Design and Management) Regulation of 2007, a regulation which looks into the role of the principal contractor. The company was also given fines: £300,000 for the breach in regulation that led to the death of Rene Tkáčik, and £600,000 and £165,000 respectively for the breach which led to the incidents involving Terrence Hughes and Alex Vizitiu. The JV, who was the principal contractor of the construction work for the western tunnels of the Crossrail project was also ordered to pay costs which amounted to over £42,000 in addition to a further £31.065 million penalty.
