British Telecom has been prosecuted yet again for dangerous and disruptive roadworks in London. It is the second time in three weeks that Transport for London has brought action against British Telecom (BT) and the 41st time since 2010. BT’s latest prosecution follows work carried out on Victoria Street close to Victoria Station on 26th January 2016. On 6th July BT pleaded guilty to four offences at Westminster Magistrates’ Court, these were: conducting street works without a permit unsafe execution of works failing to serve necessary statutory works notices before commencement failing to serve necessary statutory works notices following completion. BT was fined £3,250 and ordered to pay £1,800 in court costs. In passing sentence the judge said: “This is not a one-off breach. I can see from records before me that these are regular occurrences despite the large number of fixed penalty notices issued by TfL. I understand no injuries occurred on this occasion but clearly more needs to be done to avoid these embarrassing prosecutions.” Last month BT was fined £4,500 plus £3,916 costs for dangerous streetworks on Brixton Road and Clapham Road in south London earlier this year. (See our previous report here.) Garrett Emmerson, TfL’s chief operating officer for surface transport, said: “This is the second time in three weeks BT has been prosecuted for undertaking dangerous work and failing to provide required streetworks notices. Ensuring that roadworks are carried out safely is vital, especially in a busy city such as London. BT is a repeat offender – having failed to manage roadworks properly on a number of occasions. We will always push for the strongest possible action in order to ensure London’s streets are safe and free from unnecessary congestion.”     The table below sets out the number of times Transport for London has prosecuted utility companies since 2010: Company   Number of prosecutions  British Telecom  41 Thames Water  13 Infocus  11 Virgin Media  10 Fulcrum  9 UK Power Network  5 National Grid Gas  5 Cable & Wireless  3 Vodafone  3 Abovenet  2 McNicholas (of behalf of Virgin Media)  1 O2  1 TOTAL  104           This article was published on 14 Jul 2016 (last updated on 14 Jul 2016). Source link

The construction industry is increasingly favouring arbitration over other methods of resolving cross-border disputes, according to a new survey. The research by Queen Mary University of London (QMUL) in partnership with global law firm White & Case found that 90% of respondents prefer international arbitration to resolve cross-border disputes. The result marks a significant increase from QMUL’s first international arbitration survey in 2006, where the figure was 73%. International arbitration is now conclusively the industry’s preferred form of dispute resolution for cross-border disputes, found the study. “When the typical value of construction related claims average £100m but can be well over £1bn, it has never been more important for those in the industry to choose the right method of dispute resolution,” said Michael Turrini, a White & Case construction partner based in the Middle East. Construction companies and project sponsors now favour international arbitration thanks to benefits including the greater enforceability of arbitral awards, the inherent flexibility of the process, and the ability to avoid specific legal systems yet choose arbitrators. Turrini said: “As this research reveals, it is the ability to harness specific construction industry expertise that makes international arbitration particularly appealing to the sector. Construction is a particularly technical area of law, constantly evolving and often involving complex design/engineering defects and delay and disruption claims. As such, it sits at the apex of some very complex disciplines. “Companies which choose litigation therefore run the risk of having a court-appointed judge to hear their case and who may not have a construction background. However in international arbitration, where parties can select arbitrators with the specialist technical knowledge and industry expertise, there is a likelihood of achieving a more considered result which better reflects the specifics of the issue. London and Paris continue to be the preferred venues for international arbitration, ranked by respondents as the two most used seats over the past five years (45% and 37%, respectively) and the two most preferred seats (47% and 38%). However, reflecting the growing importance of Asia for investment in large infrastructure and construction projects, the study shows that Hong Kong and Singapore are gaining momentum, coming in third and fourth. Singapore is perceived to be the most improved seat for international arbitration over the past five years, with Hong Kong following closely behind. Turrini added: “The growth of emerging markets in Asia has created a flow of capital between west and east – often to fund mega-infrastructure and construction projects. But these types of projects inevitably create issues over access to resources, finance and funding. In addition, because these projects are so large, they are extremely costly and often result in disputes. As such, we are seeing more Asian parties involved in large construction disputes and, as this research shows, Singapore and Hong Kong are becoming increasingly important as centres for international arbitration.”     When respondents were asked to choose their three preferred institutions, just over two-thirds (68%) included the International Chamber of Commerce (ICC) in their answer, and more than one-third (37%) included the London Court of International Arbitration (LCIA), mirroring the results from the 2010 International Arbitration Survey. The Hong Kong International Arbitration Centre (HKIAC) and the Singapore International Arbitration Centre (SIAC) came in third and fourth (28% and 21%, respectively). The survey revealed that institutions are primarily chosen due to their high level of administration, neutrality/internationalism and ability to administer arbitrations worldwide. The research was conducted earlier this year by the School of International Arbitration, Queen Mary, University of London. It was led by Professor Loukas Mistelis and Rutger Metsch and was conducted in two phases: the first quantitative and the second qualitative. Phase one involved a questionnaire of 80 questions which was completed by 763 respondents between March and June 2015. The respondent group included academics, arbitral institutions, arbitrators, expert witnesses, in-house counsel, private practitioners, judges, third-party funders, mediators and government officials. Phase two included 105 face-to-face or telephone interviews, ranging in duration from 15 minutes to 2 hours, which were conducted between April and July 2015.     This article was published on 12 Oct 2015 (last updated on 12 Oct 2015). Source link

The government is asked to implement a new bricks and water sustainability code for house-building to account for future flood and drought risk. A cross-party inquiry, published by Policy Connect and the Westminster Sustainable Business Forum, states that by 2050 climate change could see 2.5 million homes in England face the flood risk that just 4.48% of homes face now – with cost to the taxpayer of dealing with the damage caused by flooding already running over £1 billion every year. Moreover, the report estimated that an extra 4 billion litres of water will be needed every day by 2050, with projected water demand shortfalls of 22%. As the government advances on its target to build 1.5 million new homes by 2022, WSBF warns of a need to ‘rethink’ the house building agenda to include flooding and drought risk A brand new bricks and water sustainability code should be implemented in order to achieve fairer, tougher and simpler planning framework.  WBS also recommends the new environmental watchdog body proposed by environment secretary Michael Gove is independent with robust powers to hold government to account. “WSBF’s in-depth year-long inquiry into housing, water and planning policy strongly concludes that the government needs to act now to improve guidance and standards for the houses that being built – water is a precious resource and we must use it wisely,” said Angela Smith MP and Baroness McIntosh. “The government needs to ensure we are building the green, water-efficient, flood-resilient communities.” The report suggests the relationships between water companies, housebuilders and local authorities are disorganised and have no designated forum to initiate strategic discussions about how to tackle problems at scale or nationally. Each sector is said to have had a different planning horizon leading to ‘incoherence of approach’, with palpable distrust between some housebuilders and water companies evidenced by breakdown in communication.  

The Private Rental Sector (PRS) has been officially named as the second largest housing tenure in England, according to the most recent Government paper on the issue ‘Building the New Private Rented Sector: Issues and prospects’. With the majority of PRS homes in the country supplied to market by buy-to-let landlords, Tower Eight explores the significant cost issues around the Build to Rent model and how landlords can mitigate them.       Building Fabric & Balconies The architectural aspect, planning element and greater consideration around durability of materials, their replacement and cleaning need to be balanced. The operational considerations should be also reviewed to include greater provision for cleaning and maintenance. However, the ability to facilitate the ongoing maintenance of the building will inevitably be much more of a consideration than on scheme with units for sale.         Modular Components As the BTR model expands, there will be growth in the supply chain that services this element of the market and with this will come more specialisation of components.  In turn, this will reduce build time and cost as the sector matures.       Apartment Fit Out BTR schemes will generate a significant body of work around the life cycle costing of wall and floor finishes against the refresh period of units.  A key element of this assessment will be the use of durable products that can be easily replaced due to high usage and different occupiers over the lifecycle of the scheme.  This will also involve the substitution of high end fixtures for those that offer more durability, much as we see a balance between practicality and quality in the hotel model.          Amenity Spaces & Offering PRS planners need to work hard to generate a sense of place and introduce elements that encourage long-term occupancy, while also developing a sense of longer term brand loyalty. In recognition of the need to adapt to tenant demand, amenity areas should be kept flexible as use may change depending on demand and demographic of tenant base – this should be incorporated in design so that the cost of change is kept minimal.         Communal Areas Proper consideration of the design facets of communal areas will extend the tenants’ demise.  If it retains customers for the long-term and improves a sense of “brand” then it will need to be in the costs. This will also lead to other considerations such as the introduction of natural lighting in communal areas and furnishing requirements.          Unit Sizes & Mix Both the mixture of units on the scheme and their sizes will have to be led by higher density schemes to ensure the fundamental business case stacks up. In a market where land values are as high as they are, the higher unit density will increase the revenue generated per sq. ft. and, ultimately, make these schemes competitive with the residential sales model. The schemes will have to be designed for functionality and be highly efficient with unit sizes closely aligned to rental value and price points that have been scrupulously researched.       Mechanical Electrical and Public Health Systems The careful adoption of the right technology will ensure that elements of these schemes do not become quickly obsolete as that would obviously impact on their ability to provide a long term solution for tenants. And, it will also affect ongoing rental value and drive up the cost of refurbishments so they must be future proofed from the outset.          Procurement To gain significant competitive advantage and deliver on the necessary housing numbers, developers need to be thinking about seven or eight schemes at a time and benefit from the ensuing economies of scale. This will facilitate programme wide procurement and service level agreements, all of which we contribute to scalability and a lower cost model.         Warranties As the operator of the space,  the developer will fall liable for the upkeep of these goods – that is the way many PRS schemes are now going – and ensuring sufficient warranties will minimise that risk but increase costs in the short-term. Latent defects insurance will also come into play too by which to recover the costs of replacing, strengthening or repairing the site if an inherent defect is discovered.      Refurbishment Responsibility will sit with the operator of PRS schemes to maintain its standards, so the ability to replace fixtures and fittings, and the durability of these items must be factored in.  Similarly the longevity of the building itself must be maintained as these schemes are a long-term play and any signs of fatigue will impact on the long-term rent-ability of the scheme. All of these elements will play a key role in developing and maintaining the brand of the schemes and the operators responsible for them.  

The Ministry of Housing’s 2016-17 English Housing Survey, released in 2018, has revealed that millions of private renters live in homes that do not meet the Government’s minimum standards for human habitation. Almost a third (27%) of them fall below the Decent Homes Standards, a set of criteria that aims to regulate the condition of all council and housing association homes. Moreover, another report released in April 2018 by Hometrack UK found that house price inflation is running at the moment at 4.9% year on year, meaning that many Britons have little choice but to live in rental accommodation often found to be under the standard. “Landlords have a responsibility to their tenants to ensure that the rental property is safe, secure and well maintained. Unfortunately, many landlords are taking advantage of the current property market and providing the bare minimum at vastly inflated prices. The shortage of available housing is causing tenants to ‘put up and shut up’ as many live in fear of being unfairly evicted if they demand improvements to the property,” said Richard Taube, director of design and construction at South Coast Estates. The increased demand for rental properties and the shortage of new private rented accommodation suggests that there will continue to be a ‘sustained demand for good quality rented accommodation’ and increased opportunities for investors who can offer professionally managed modern homes to prospective renters, according to Alan Collett, fund manager at Hearthstone Investments. The landlords who want to improve their tenants’ living conditions often take the following measures: upgrade fire ratings, regularly maintain alarms and security systems, tackle pest control and renovate communal areas. Increasingly, landlords are looking at launching projects that can help to pay for such improvements. One such strategy is the use of air space development – in which additional storeys are built on to existing properties. Such projects often have the benefit of guaranteeing improvement work on all communal areas, along with the exterior of the building and the grounds. Making these changes will not only improve living conditions for tenants, it will also help to preserve the condition of the property itself.