Plans to build one of the world’s tallest buildings have been announced by Scottish based architect, Kettle Collective, today [Tuesday 25 May 2021]. The tower will be built in St Petersburg and at 703 metres will be the second highest skyscraper in the world, just under Dubai’s famous Burj Khalifa (828m).
London based architecture firm, White Red Architects, are the only UK practice to have been shortlisted for the RIBA ‘Ancient Tree Civilization and Residence Future International Architectural Design Competition’. The practice has made the ‘top 6’ shortlist, fighting off competition from over 500 entrants across the globe. The much-anticipated shortlist
Winvic Construction Ltd, a leading main contractor that specialises in the design and delivery of multi-sector construction and civil engineering projects, has been awarded the eighth contract to build a net zero carbon industrial warehouse at the 700-acre SEGRO Logistics Park East Midlands Gateway (SLPEMG). It is the first speculative
St Helens Borough Council Planning Committee yesterday granted planning permission for delivery of the £54million global glass research and innovation facility located at Saints Retail Park. The planning application was prepared and submitted by developer and landowner Network Space, on behalf of not-for-profit research and technology organisation Glass Futures, to
Lallemand Animal Nutrition, a global leader in yeast and bacteria production, has chosen EJ Musk Process Services to undertake a £2,000,000 expansion of its Malvern site. The investment will see the installation of new larger capacity fermentation vessels, increasing production capacity and underlining Lallemand’s commitment to UK production. Musk, part
The ARDEX Group is a global is leading solution and service provider of innovative building systems, with 55 subsidiaries and 3,450 employees in over 100 countries on all continents. As part of the ARDEX Group of companies within the UK, both ARDEX UK and Building Adhesives Ltd (BAL) businesses are
Places for People is excited to release aerial images to show the progress being made at its Chapelton development, which is located just eight miles outside of Aberdeen. The development of high quality two, three and four-bedroom homes, offers the very best of rural and modern life, with beautiful scenery
A property maintenance company has announced two senior promotions. Platform Property Care – a subsidiary of one of the UK’s largest social landlords, Platform Housing Group – has appointed Adam Rudge as Head of Service for Voids and Duncan Palmer as Head of Service for Responsive Repairs; both roles are newly created ones. Previously
Plant and tool hire chain Speedy has posted annual results ahead of expectations, representing a solid come-back from the initial impact of the Covid-19 pandemic. Speedy ended the year to 31st March 2021 with revenues back at pre-Covid levels and has started the current year ahead of 2019. Revenue for
Like any other industry, the construction sector is highly susceptible to the volatility of the stock market. Price movements that impact the production costs of materials can have a butterfly effect on wider development projects and building contracts. The movement of oil prices and energy cost all impact the manufacturing
Plans to build one of the world’s tallest buildings have been announced by Scottish based architect, Kettle Collective, today [Tuesday 25 May 2021]. The tower will be built in St Petersburg and at 703 metres will be the second highest skyscraper in the world, just under Dubai’s famous Burj Khalifa (828m). Although the Burj Khalifa is taller, the new Lakhta Centre II, will boast the highest occupied floor and viewing gallery of any building in the world. It will soar above the Shanghai Tower (632m), which is currently the second tallest structure and will dwarf the UK’s Shard (310m), at more than double its height. The tower will be located on the outskirts of St Petersburg and will stand alongside Europe’s tallest building, the Lakhta Center (462m), which is the headquarters for energy giant Gazprom. Design lead, Tony Kettle, who is also behind the Falkirk Wheel, is one of the UK’s foremost architects. Kettle designed the Lakhta Centre when he worked at major architectural firm RMJM after creating the winning design in an international competition for the Gazprom tower in 2006. The tower will house pioneering multi-car lifts, powered by regenerating energy from the movement of the lift and is seen as a complimentary development to the first Lakhta Center. The build will include requirements universally recognised as essential for the office of the future -accommodation and relaxation spaces fulfilling the ‘live, work, and play’ needed in a 21st century business center. Kettle Collective was formed in 2012 with a focus on creating high performance and energy efficient designs. “The new Lakhta Center will be a template of sustainable design for global high-rise projects,” says Tony Kettle. “It will have the best-in-class low energy design and a mix of uses that will create a vertical atrium space with a vibrant centre as the heart for this new business district. “The design is both aesthetic and functional as it will reduce considerable wind forces that will impact the structure, in turn reducing the size of structural elements required within the building. “The tower is born out of a daring idea that has been inspired by energy in all of its forms, from helical waves generated around deep space quasars to the spirals of wave energy. The outer layer of the building is created from spiralling columns that form an open organic helical diagrid, while the structure is carved out by a series of spiral atriums shared with vertical public spaces.” “Given its prominence and celebration of energy and sustainability, this project will be more than a city landmark, it will have national significance showcasing Russia on the world stage, as an investor in business, innovation and creative thinking,” says Kettle’s managing director, Colin Bone. “This is a hugely significant partnership for our studio and has come at a time of considerable global challenge, not just for Kettle Collective but for our industry as we navigate the impact of the pandemic. It highlights our extensive experience in the design of new buildings and communities across the world that are not only truly sustainable, but that celebrate the place.” The announcement comes on the back of the firm’s recent Queen’s Award for Enterprise for Sustainable Development. This was the second Queen’s Award for Kettle Collective, which is one of only 17 businesses recognised for Sustainable Development in the UK. The Lakhta Center II The building will stand 703 metres high with approximately 220,000m2 of accommodation and set over 150 floors The top floor will be approximately 590m, making it the highest occupied floor and viewing gallery in the world A vertical urban environment, it will be made up of 8 segments of 16 floors with triple height atrium space levels and shared public facilities Each section will include amenities and green space to cater for residents and visitors – similar to a low-rise development, but more easily accessible removing the need for car transport The tower’s core will house pioneering multi-car lifts, powered by regenerating energy from the lift movement There will be an added podium which will service accommodation and car parking.
London based architecture firm, White Red Architects, are the only UK practice to have been shortlisted for the RIBA ‘Ancient Tree Civilization and Residence Future International Architectural Design Competition’. The practice has made the ‘top 6’ shortlist, fighting off competition from over 500 entrants across the globe. The much-anticipated shortlist will go forward to the final judging stage with the champion being announced on 11 June 2021. The judging panel consists of an esteemed group of architects and academicians, including Azlina Bulmer, Director of RIBA International, Nishizawa Ryue, 2010 Pritzker Prize winner and Co-founder of SANAA, and Thomas Heatherwick, Founder of Heatherwick Studio. The RIBA competition invites entrants to design a unique visitor experience – an eco-hotel and guest houses – forming part of the Guandong Xiangtoushan National Nature Reserve, located at Kaisen Thousand Year Ancient Trees Garden in Pingan Village, Baitang Town, Boluo County, Huizhou City, Guangdong Province, China. The project focusses on the Thousand Year Ancient Trees Garden, and the surrounding land of 1333.33 hectares, including three villages – Gudong Village, Pingnan Village and Jiaomu Village, all with good transport links. The entrants’ (individuals or groups) design proposals are expected to fully consider the relationship of the buildings within the site and numerous ancient trees, to protect and enhance the site while providing services for visitors, and to clearly express the competition’s themes of protection, return and inheritance. Designers also need to focus on the design principles, design methods, and technical routes of sustainable and ecological architecture, and fully consider the specific ecological and cultural environment of this ancient tree garden. White Red Architect’s concept, ‘Discovery’, which caught the judge’s eyes, is designed to elevate, and inspire visitors to discover. It allows them to engage with nature through exploring the many layers of a forest, escaping the traditional perspective of the forest floor. Discovery enables stronger connections and forms memories. The resort will be composed of buildings and elements which will be situated within all the layers of the forest: The Undergrowth, The Understorey, The Canopy and The Emergent Layer. The proposed construction will have minimal intrusion on the existing nature and will coexist in harmony. The foundation structure will be driven timber piles, ensuring that the buildings can float about the forest floor, the soil is not interrupted or contaminated with harmful non-organic materials. The building materials will be sustainable, have a minimal carbon footprint and be durable to ensure longevity and maximise the lifespan. The masterplan will be composed of various typologies of buildings. The essence of the design is to connect with the nostalgia associated with the timeless ancient forest. The designs of these structures will relate to three main concepts which are the stages in the growth cycle of a tree: Ancient Tree, Young Tree, Saplings/Sprouts. The design of the buildings, the Walkways, The Hotel, Villas and Treehouses can co-exist with the forest and not intrude on the delicate biodiversity which provides health to nature.
Winvic Construction Ltd, a leading main contractor that specialises in the design and delivery of multi-sector construction and civil engineering projects, has been awarded the eighth contract to build a net zero carbon industrial warehouse at the 700-acre SEGRO Logistics Park East Midlands Gateway (SLPEMG). It is the first speculative development at the park, which is adjacent to East Midlands Airport and 1.5 miles from the A42/M42 connection at J23A, and the £9 million project will be completed in November 2021. The 200,000 sq ft unit, with a 15m clear height to the eaves, will be cold store ready and have 17 docks, 4 Euro docks and 4 level access doors and is being designed by Winvic using BIM Level 2. As part of this digital design development and careful supply chain choices, Winvic has already reduced material wastage on this project by 34 per cent and upscaled the development so it will achieve an EPC A+ rating. It will be constructed to BREEAM ‘Excellent’ and sustainable features will include roof mounted photovoltaic (PV) panels, LED lighting and upgraded cladding which improves air-tightness for temperature controlled operations. It is the first time that PV has been used on an industrial warehouse at SLPEMG and it will be installed to offset all operational carbon based on the base build specification. All embodied carbon associated with the building will be calculated and offset through a scheme in line with the United Nations Sustainable Development Goals (UN SDG) framework and utilising Gold vested carbon credits. For example, this could include UK tree planting, supporting local communities, schools and charities and improving clean cooking facilities, whereby efficient stoves replace wood burning open fires. Additionally, the scheme comprises 10,000 sq ft of two-storey office accommodation, a 3,000 sq ft transport office, a 55m yard, and parking for 170 cars and 45 HGVs. Winvic will also be undertaking all associated external works including hardstandings, car parking, landscaping and drainage, plus alterations to the existing estate road with pedestrian crossing points. Winvic has had a presence on the SLPEMG site since its inception February 2017 when the main contractor began the civils and infrastructure work to facilitate the park and a Strategic Rail Freight Interchange (SRFI) and are currently constructing two other modern industrial warehouses. One of which is a 694,000 sq ft facility for DHL, which comprises two mezzanine levels and over 25,000 sq ft of two-storey integral offices. Unusually, it has a 33m high bay and an 18m low bay that wraps around two sides of the unit, and it is due to complete in September 2021. The second facility is a 150,000 sq ft fulfilment centre with ancillary offices, car parking including double-deck parking for 200 electric vans and lorry loading facilities. Danny Nelson, Winvic’s Head of Industrial, Distribution and Logistics, commented: “We’re thrilled that the SEGRO team has once again put its trust in Winvic at SLPEMG, and this eighth unit means we have three separate project teams working at the 700-acre site. It is a special facility due to its true net zero credentials and we’re utilising BIM to its full potential to assist with this goal. For example, our design team has been working closely with SEGRO to push the scheme to achieve EPC A+ and material wastage has been reduced through digital processes by a significant 34 per cent. The short 26-week programme means we will be handing the scheme over in November of this year, and we are ready to assist with fit out when a tenant is secured.” Andrew Pilsworth, Managing Director, National Logistics at SEGRO, said: “This speculative development is really exciting, as it highlights our confidence in the ongoing demand for well located, connected, modern space in the East Midlands and underpins the importance of logistics. Including this speculative build, Winvic is currently constructing three units for us at this site and the company’s expertise with net zero carbon projects is evident. With the park nearly 75% full, we’ll be working hard over the coming months to secure customers for the spec build and the remaining 1.5m sq ft of space to ensure that SEGRO Logistics Park East Midlands Gateway can continue to play a key role in creating jobs and economic growth in the region.” For more information on Winvic, the company’s latest project news and job vacancies please visit www.winvic.co.uk. Join Winvic on social media – visit Twitter @WinvicLtd – and LinkedIn.
St Helens Borough Council Planning Committee yesterday granted planning permission for delivery of the £54million global glass research and innovation facility located at Saints Retail Park. The planning application was prepared and submitted by developer and landowner Network Space, on behalf of not-for-profit research and technology organisation Glass Futures, to build the 160,000 sq ft Global Centre of Excellence. This planning consent moves the delivery of the state-of-the-art facility, together with the world’s first openly accessible test and trial furnace operation, a step closer. The facility will be used to deliver industry and government backed R&D projects focused on decarbonising glass production and will also provide a platform for industry to test and trial their own commercial ideas on a state-of-the-art line, both collaboratively and individually. Construction company, Bowmer + Kirkland, has been appointed to build the Global Centre of Excellence following an open procurement process through the North West Construction Hub. Work is expected to begin on site in July this year and will complete by December 2022. The project delivery is led by Network Space on behalf of an innovative partnership created between Glass Futures, the global glass supply chain, Network Space, St Helens MBC, the Liverpool City Region Combined Authority and UKRI (UK Research and Innovation). This dynamic and fast-moving partnership has rapidly turned the Glass Futures concept into a worked up and deliverable scheme in less than two years. The project will be funded through a mix of public and private investment. Glass Futures has secured a £15m UKRI grant to support the installation of a globally unique, experimental furnace and state of the art infrastructure capable of melting 30 tonnes of glass per day in a safe experimental space. Network Space will secure private sector investment and has been awarded a £9m grant from the Liverpool City Region’s ‘Build Back Better’ fund to support the construction costs. Glass sector companies will also contribute a further £20m in resource, time and equipment to support the project. St Helens Council will take a head lease of the building to facilitate the development and deliver a green recovery. Catherine Chilvers, Development Director at Network Space, said: ‘’We are delighted to have successfully secured planning permission for such a high profile and transformational project for St Helens and the Liverpool City Region. The consent is another major milestone in transforming the former United Glassworks site into a global hub for research whilst once more positioning St Helens at the forefront of glass innovation and sustainable glass manufacturing. Our team and the partnership that we have formed has worked tirelessly in bringing the concept to life and converting it into a deliverable scheme. We hope to announce further progress in the coming months.’’ Steve Rotheram, Metro Mayor of the Liverpool City Region, said: “I’m committed to reshaping our economy after COVID so that it is cleaner, greener, stronger, and designed around the needs of local people. We’ve invested £9m to help bring Glass Futures to life to help deliver that radical change. “Glass Futures has the potential to put our region at the forefront of the Green Industrial Revolution and make us a global leader in new technology. When complete, this project will help take St Helens proud history in glass making and bring it into the 21st century, creating lots of local jobs and drastically cutting carbon emissions.” In addition to creating 80 new permanent jobs, the project will lead to much-needed apprenticeships, training and general up-skilling within the glass and similar industrial sectors. It is also set to attract further inward investment to the region as leading international glass companies focus resources to be within geographical reach of the facility. Glass Futures’ Chief Executive, Richard Katz, said: “Today’s decision is fantastic news. It enables the delivery of a test-bed facility to develop processes to make glass the most sustainable and recyclable material solution available. The research, innovations and energy efficiencies we deliver here can be shared and harnessed by all glass applications including packaging, glazing and glass fibre, as well as across other foundation industries. The Global Centre of Excellence will enable us to work collaboratively with our members, the supply chain and academia to achieve zero carbon glass.” Councillor Richard McCauley, Cabinet Member for Regeneration and Planning at St Helens Borough Council, added: “We are delighted that the ground-breaking development Glass Futures is now set to become a reality in the heart of St Helens Borough. Our borough has been at the centre of global glass production and innovation for many years and throughout the process of creating this new centre of excellence we have worked extensively to ensure that St Helens Borough is its home. “Glass Futures fits perfectly with our plans for green recovery as we look to reset our borough’s economic future and deliver wide ranging positive impacts from this new development, which include reviving a derelict brownfield site and securing direct benefits and opportunities for St. Helens communities. Taking this scheme from concept through planning and on to site in less than two years demonstrates the focus the council and partners have on delivery, I am sure this will be the first of many exciting and ambitious schemes that will be coming forward in St Helens over the coming months.”
Lallemand Animal Nutrition, a global leader in yeast and bacteria production, has chosen EJ Musk Process Services to undertake a £2,000,000 expansion of its Malvern site. The investment will see the installation of new larger capacity fermentation vessels, increasing production capacity and underlining Lallemand’s commitment to UK production. Musk, part of the Edwin James Group, is delivering the turnkey project from design to installation with fabrication handled via the Musk workshop in Swadlincote. “This investment and the improvements at our Malvern production site will help us to meet the growing demand for our products. We are committed to our UK production and delivering more solutions that positively impact animal nutrition and well-being. The team at Musk showed a real understanding of the project, and with their other group companies they were able to provide us with a full solution from planning and design right through to manufacturing and implementation,” said Jonathan Wiffen, Operations Director at Lallemand Animal Nutrition. Lallemand Animal Nutrition specialises in microbial fermentation using yeast and bacteria in animal agriculture. The business develops, produces and markets high-value yeast and bacteria products, including probiotics, silage inoculants, and yeast derivatives. Commenting on the project Charlie Price, operations director at Musk Process Services, said: “We are working in partnership with Lallemand to deliver a turnkey project that will expand capacity at this key production site in the Malverns. It underlines the integration of services across the Edwin James Group to deliver everything from project design to fabrication and installation.” Edwin James Group is a national engineering, technical and process services group that operates throughout the UK. The group offers a complete range of services that are delivered by a highly skilled workforce.
The ARDEX Group is a global is leading solution and service provider of innovative building systems, with 55 subsidiaries and 3,450 employees in over 100 countries on all continents. As part of the ARDEX Group of companies within the UK, both ARDEX UK and Building Adhesives Ltd (BAL) businesses are quite rightly very proud of their history and their own distinct cultures and it is this heritage we have been building on, to progressively develop one culture, with one mindset, with everyone acting as one team and sharing one vision. At the beginning of 2021, ARDEX UK and Building Adhesives Limited (BAL) have moved ahead with the next phase of their “Stronger Together” strategy with a new leadership structure taking responsibility for the UK Commercial teams. Reporting into David Hackett, General Manager – Building Adhesives Ltd (BAL), David Lyman, formerly BAL Sales & Marketing Director will take on the new role of UK Commercial Director with responsibility for the key functional areas of Tiling, Flooring and the Home Improvement Channel (HIC). UK Marketing and Training will also report into David Lyman. Andy Reid, formerly ARDEX Business Development Director takes on the recently formed role of UK Business Development Director overseeing major project specification selling across the UK for both ARDEX and BAL, also reporting into David Hackett. Peter Bell remains as the Managing Director of both businesses and member of the ARDEX Group Global Management Committee. As part of his pre-retirement plan until July 2021, Lee Kidd – ARDEX Sales & Marketing Director will provide support to the newly re-structured UK Commercial Team and support the business transformation with his vast experience of the respective markets. The move consolidates the activities of all UK teams and more formally combines the forces of ARDEX and BAL for a stronger and more coordinated approach to the market. Ardex.co.uk Building-Adhesives.com
Places for People is excited to release aerial images to show the progress being made at its Chapelton development, which is located just eight miles outside of Aberdeen. The development of high quality two, three and four-bedroom homes, offers the very best of rural and modern life, with beautiful scenery on its doorstep and excellent transport links into the city. With over 40 new homes under construction, we have released a range of two and three-bedroom homes that are available through shared equity, and a range of mid-market rental apartments and bungalows. Sales and Marketing Director, Allison Sutherland said: “It’s great to see the site coming to life in these aerial photos. Chapelton is located in a beautiful area and will create a thriving community. “The development has been very popular, due to the desirable location and the range of high-quality homes available. Homes at Chapelton are finished to a high specification, which includes tiling in bathrooms, beautiful high-quality shaker style kitchens with integrated appliances and French doors connecting to the rear gardens. “With a range of two, three and four-bedroom homes, available to buy or rent, there’s never been a better time to take a look at Chapelton – we really do have something to suit everyone’s budget. “With our updated marketing suite and show home now open, we are looking forward to welcoming visitors to view our Chapelton development.” Chapelton is a long-term vision to create a new sustainable town, comprising 8,000 homes and an equal number of job spaces, as well as all the amenities you would expect. Located just eight miles south of Aberdeen, the development pays homage to the established buildings of north eastern Scotland, with homes integrating local materials such as slate, granite and stone. For further information about homes available at Chapelton and ways to buy, contact our Sales Executive on or click on www.homestobuy.placesforpeople.co.uk/find-a-home/chapelton/
A property maintenance company has announced two senior promotions. Platform Property Care – a subsidiary of one of the UK’s largest social landlords, Platform Housing Group – has appointed Adam Rudge as Head of Service for Voids and Duncan Palmer as Head of Service for Responsive Repairs; both roles are newly created ones. Previously Operations Manager for Voids and Grounds, Adam’s new role will see him responsible for the operational and financial delivery of all Platform Property Care’s group void servicing teams. Adam – who has worked in social housing maintenance for more than 18 years – started his career as an apprentice plumber and gas engineer before qualifying as a gas engineer. Over the course of his career, Adam has studied horticulture and gained accreditation from The Royal Horticultural Society. He has also successfully completed an advanced level management apprenticeship as well as a qualification from The Institute of Leadership and Management. Adam said : “I am thrilled with my new role, which will, I hope, allow me to influence a sector I am passionate about. Delivering a consistently excellent service to all our customers is at the very heart of what we do and I am excited about my part in this as we move forward.” The promotions are part of a wider restructure within the business which has created five new service areas; the objective being to offer a designated service function for each area of the maintenance business as well as providing a consistent approach to how services are delivered group wide. Previously Operations Manager for Responsive Repairs, Duncan Palmer has been promoted to Head of Service for Responsive Repairs. This new role will see Duncan managing the delivery of the group’s responsive repairs service which aims to deliver more than 100,000 responsive repairs each year. Duncan – who has twenty years’ experience in social housing – originally started out as an electrician. Duncan explained : “This new role is an exciting step forward for my career. Platform Property Care is a great place to work and I feel very fortunate to have been given this opportunity. By supporting my team and providing a clear purpose, I hope to make a positive impact on PPC’s aim to become a sector leading repairs organisations that puts our customers and colleagues first.” Since the merger of Fortis Living and Waterloo Homes at the end of 2019 to become Platform Housing Group, changes and development within the property maintenance arm have been ongoing. Establishing Platform Property Care has included bringing gas servicing and breakdown in house to ensure a seamless service to customers; these, and other initiatives, have resulted in the organisation winning the coveted status. Dennis Evans, Executive Director at Platform Property Care said : “We are delighted to announce these two new roles and the promotions of both Adam and Duncan. Their new responsibilities are testimony to the hard work and dedication that they have shown throughout their careers within social housing. We wish them all the best as we continue on our journey to become a truly modern housing association.” Platform Property Care – launched in October 2018 – employs more than 300 people, including 27 apprentices. Its growth plans include a turnover of £50million by 2023. Recent improvements include better diagnostics, intelligent scheduling, assertive supply chain management and investment in new technologies. Results include 100 per cent of homes being both gas and electrically compliant. For further information about Platform Property Care please visit www.platformhg.com.
Plant and tool hire chain Speedy has posted annual results ahead of expectations, representing a solid come-back from the initial impact of the Covid-19 pandemic. Speedy ended the year to 31st March 2021 with revenues back at pre-Covid levels and has started the current year ahead of 2019. Revenue for the year (excluding disposals) was down 11% to £359.4m (2020: £402.5m), while pre-tax profit was down 41% to £12.3m (2020: £20.7m). However, operating profit was up 21% to £17.0m (2020: £14.0m) and net debt was reduced during the year from £79.3m to £33.2m. After a tricky start to the year with the first national lockdown – revenue fell 35% in April 2020 – Speedy recovered progressively, with hire revenue up 4% on a like for like basis in the fourth quarter. Utilisation improved in the second half to 58.8% (2020: 55.9%). Speedy initially closed two-thirds of its network in April 2020 but by September the network was operating at full capacity again following a review of the depot footprint. This resulted in the permanent closure of 13 depots and the consolidation of a further 22 depots into larger service centres. Approximately 200 staff were laid off. As a result, there were £5.6m of exceptional property related costs and £1.9m of redundancy costs incurred during the year.
Like any other industry, the construction sector is highly susceptible to the volatility of the stock market. Price movements that impact the production costs of materials can have a butterfly effect on wider development projects and building contracts. The movement of oil prices and energy cost all impact the manufacturing output of many common building materials such as steel, cement, bitumen and glass. Now that we have a clearer picture of the pandemics overall impact it is easy to identify where some of the financial burdens originate. Supply chains are now under great pressure to deliver materials across the globe, and with shortages in key elements such as timber, prices are inflating. In this post we will identify how businesses reduce the risk of financial loss in the face of changing market conditions. What is Financial Hedging? In simple terms, financial hedging is an investment practice that can offer protection on riskier trades and situations. For example, a company may be in the market to acquire a certain amount of steel. This company can create a hedge contract that stipulates the price of steel for a set amount of time. If the market value of steel changes, the company will still pay the contractual price for the same material. Businesses and investors who trade futures in UK markets often rely on hedge bets to ensure they have a clear and transparent financial investment, regardless of market conditions. Hedging can be categorised into long and short contracts. Longer contracts protect against volatile price changes for an investor during the term of their contract. However, there is greater risk in long hedges that could see the market price of a material drop considerably. In this scenario, the business would still have to pay the contract amount, causing a financial loss. Short hedges are simply a shorter contract and offer much more flexibility and the potential to reduce losses. Risk Management in Construction Finance Financial loss is a huge consideration when running a time sensitive project and so understanding marketing conditions can be a crucial step. Ensuring a project has a dedicated construction finance manger can help mitigate the risks in construction. Not only this, a CFM should make proper use of an operational budget, predict profitability, employ and maintain compliance, and anticipate any future financial needs. Having the foresight to plan out and predict future financial commitments will enable a construction project to run smoothly over the projected timeframe. Relating this back to financial hedging, having a dedicated CFM could provide an opportunity to plan out any financial losses caused by stock market movements, socioeconomic events and impacts to material prices. Determining costs early on within a project will enable a more balanced approach to the overall financial targets and will stabilize the risk factor. Due to so many uncertainties brought on by the pandemic, hedging can be a reliable way for managing costs for the construction industry.
