August 17, 2021

Colliers Urges Rate Payers to Push Back on Business Rates Consultation as Deadline Approaches

Leading Ratings Agent Fears Businesses’ Ability to Appeal Higher and Higher Rate Bills will be curtailed if government proposals come into force… The government’s latest proposals on business rates (Government Consultation Paper on More Frequent Revaluations)* will create more difficulties for businesses appealing their business rates than benefits, according to

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How Net Zero Carbon Differs from Carbon Neutral

As understanding of the climate crisis increases and the harm to ourselves, the environment, business, industry and the economy that will follow, so a desire to not only reduce carbon but to be seen reducing carbon increases. Two seemingly interchangeable terms often seen are ‘Carbon Neutral’ and ‘Net Zero Carbon’.

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New Eye Surgery Unit at Musgrove Park Hospital

Somerset NHS Foundation Trust has installed a state-of-the-art, Ophthalmic Theatre Suite and Day Case Unit in partnership with ModuleCo… ModuleCo has provided a state-of-the-art eye unit extension for the Somerset NHS Foundation Trust at their Musgrove Park Hospital site. Historically the Somerset NHS Foundation Trust has had greater demand for ophthalmic surgeries than they had the capacity

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‘Double London housebuilding to tackle housing crisis’

New analysis shows London needs 90-100,000 new homes each year to tackle the housing crisis – double the number currently being built according to the government’s most recent data.   The joint research from the London Housing Directors Group (LHDG) at London Councils and the G15 group of London’s largest

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Energy networks respond to UK Hydrogen Strategy

The Government’s Hydrogen Strategy sets out hydrogen’s critical role in securing economic opportunities across the UK, cutting emissions and delivering Net Zero.  Responding to the Hydrogen Strategy, David Smith, Chief Executive at Energy Networks Association which represents the UK and Ireland’s energy networks businesses said: “This is a much needed

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NEW, SUSTAINABLE SMILE HOMES® TO GENERATE £375K PER UNIT IN SOCIAL VALUE

ENGINEERED with technology, sensors, and devices to assist with day-to-day tasks, aid independence and improve health and wellbeing, ADS Independent Living Solutions’ Smile Homes® – an Innovate UK-backed initiative – will see the creation of purpose-designed homes that are adaptable and able to meet the personalised needs and wishes of each

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Common Problems with Tenants and How To Deal with Them

What do you do when you’ve got a tenant who seems to be causing problems? Many landlords and property managers have encountered this problem, and the result is a very frustrated landlord. Understanding the reasons why tenants behave as they do and what that means for your rental business will

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Technologies paving the way for carbon reduction in our homes

There are several government proposals on the table signalling a transition from where we are today to net zero 2050. Technical solutions have not been decided, but there is talk of certain technologies favoured for carbon reduction – among these are hydrogen-ready boilers and heat pumps. In the short term,

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Latest Issue
Issue 322 : Nov 2024

August 17, 2021

Colliers Urges Rate Payers to Push Back on Business Rates Consultation as Deadline Approaches

Leading Ratings Agent Fears Businesses’ Ability to Appeal Higher and Higher Rate Bills will be curtailed if government proposals come into force… The government’s latest proposals on business rates (Government Consultation Paper on More Frequent Revaluations)* will create more difficulties for businesses appealing their business rates than benefits, according to rating experts at Colliers, the international property consultancy. Colliers is responding  to the government consultation, launched at the end of June which requires responses by August 24th 2021,  in which the government stated its belief that three yearly Revaluations (Revals) will provide  more accurate valuations and greater transparency about the make-up of valuations, enabling business rates liabilities to more closely reflect current rents and economic conditions. While Colliers supports the move to three-yearly valuations, (although would prefer annual revaluations) but is concerned that the government is not prioritising increasing the resources at the VOA to achieve this aim- resulting in a system- according to Colliers which will inevitably put even more burden on  ratepaying businesses. The consultation paper is asking for responses and comments on the following matters: Duty to notify the VOA of changes to the occupier and property characteristics, information which would be shared with the billing authorities. This is expected to include extensions, alterations or demolition, conversions, splits and mergers and change of use. Mandatory provision of rent and lease information as well as trade and cost information used for valuations. This would be on an annual basis, aligned with business rates billing, using an online portal and would need to include any side agreements. There is also a requirement to provide lease information following an “event” such a lease renewal or rent review. Provision of this information is mandatory for submission of an appeal against a Rateable Value and there would be penalty fines for providing late or incorrect information. The government is also proposing changes to the current appeals system: The Check stage would be removed (most likely for the 2026 Revaluation) on the basis that this would be covered by the Duty to Notify. There may be a fee for submitting a Challenge, in addition to the current fee for submitting an Appeal. This is expected to be refundable if the Challenge is successful. The draft list is unlikely to be issued prior to 1st January before the Revaluation, and all Challenges against the new list values would need to be submitted within three months of the start of the list. A new occupier would be able to submit a Challenge within three months of the start date of their interest in the property. The VOA would have a statutory duty to complete all list appeals by the end of the list i.e. within two years and nine months (the current Check and Challenge process alone can take up to two years and six months). Landlords could not submit an appeal where they are not the rateable occupier. The ratepayer can apply for a fuller analysis of rental evidence used, but this must be prior to the Challenge being submitted i.e. within the three months. This may also be subject to a fee. According to John Webber, Head of Business Rates at Colliers,  the proposals would result in a much more onerous and expensive way for businesses to appeal their business rates. In its response to the consultation, Colliers has highlighted the following flaws in the proposed system: Duty to Notify. This is a significant burden on ratepayers as it will now involve an annual confirmation return. This is effectively an annual check by ratepayers – even those who may benefit from reliefs and don’t pay business rates- 600,000 businesses currently- increasing the paperwork and administration burden. Mandatory Provision of Lease Information. Again, an annual return to include side letters and arrangements agreed with landlords. This is required by the VOA even though they already have access to this through land registry and other sources. There may also be multiple rental returns required for each ratepayer based on frequent events being concluded throughout the year. Restrictions on Appeal timescales. The government has already announced that the draft list will be published 3 months before it becomes live and not the usual 6 months. This proposal then suggests a 3-month window to appeal.  This leaves little time to review valuations and submit Challenges upon receipt of the draft list values. Fees for a Challenge with refunds upon success. This could cause cash flow issues and will reduce access to justice. (Currently there are no fees payable until the final stage of CCA). Although the 3 yearly cycle is a positive move, compared to what we have now (where rateable values are still based on rents in 2015), the VOA has maintained that it needs a 2-year gap between the Antecedent Valuation date (AVD), when values are assessed and when the list becomes live. Colliers believes the gap should be shortened to 12 months to give a truer reflection of the market. Landlords restricted from submitting challenges Although not of major concern to many, a lot of landlords take a proactive approach to the rates liability of their tenants. To remove their involvement in the process seems unnecessary as well as undemocratic. The death of MCC’s. Set against the background of the government legislating to outlaw Covid MCC appeals perhaps it is not surprising that they are suggesting the removal of the ability to appeal on any MCC grounds. While this could be possible in an annual revaluation cycle, to remove it in a 3-yearly cycle is again undemocratic and unjustified. Transparency – only proposed in stages – this is not fair to ratepayers and means the VOA will not be transparent until later lists. Backlog – the huge backlog of 2017 appeals mean that it is unlikely that these will be cleared prior to the new list and new process being put in place. Colliers are concerned that 2017 appeal rights could be cut off. Timescale Based on experience, Colliers also think that it

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How Net Zero Carbon Differs from Carbon Neutral

As understanding of the climate crisis increases and the harm to ourselves, the environment, business, industry and the economy that will follow, so a desire to not only reduce carbon but to be seen reducing carbon increases. Two seemingly interchangeable terms often seen are ‘Carbon Neutral’ and ‘Net Zero Carbon’. The two, however, are not the same thing. Carbon neutral refers to a policy of not increasing carbon emissions and of achieving carbon reduction through offsets. While Net zero Carbon means making changes to reduce carbon emissions to the lowest amount – and offsetting as a last resort. The offsetting is used to counteract the essential emissions that remain after all available reduction initiatives have been implemented. In both cases Carbon Offsetting removes CO2 from the environment. For it to count, that removal must be permanent and accredited or licensed. Projects can offer a range of benefits. As well as reducing carbon from the atmosphere, offset projects can be selected to also offer social and community benefits. Projects can range from local planting of trees to the funding of projects that empower families in developing countries to reduce their dependence on fossil fuels. Examples include afforestation, reforestation and conservation. Alternative investments can also be made in initiatives that reduce greenhouse gas emissions, such as in cattle feed that reduces the methane output of cows. Other offsetting projects enhance biodiversity, improve soil quality, food production or rainwater absorption. Projects that benefit soil quality are particularly pertinent to global warming and climate change, as soil is a significant store of carbo, holding three times as much carbon as the atmosphere – and the importance of soil quality has often been overlooked. Food production benefits are relevant too given that crop failure is a significant negative impact of climate change, devastating communities and forcing migration. There are carbon offset schemes offered that are sold on an arbitrary average carbon footprint basis, as opposed to a quantified footprint. The risk with these is that they offer the temptation of an easy-to-buy option, which not only does not include any emission reductions they also may fail to meet sufficient offset to address the problem of climate change. These are sold on the basis that a true quantification of your carbon footprint can be expensive, time-consuming and complicated but this need not be the case. Net Zero Carbon Commitments always involve emission reductions. This requires an initial carbon footprint measurement. This is followed by strategic greenhouse gas emission reduction initiatives, the implementation of renewable energy solutions and then carbon offsetting. The right carbon reduction service can offer you all of these. Furthermore, they can support you in your net zero commitment with ongoing monitoring both of the success of the initiatives but also of emerging technologies for further emission reduction opportunities. These could be in the form of technology, or availability of alternative energy – or internal opportunities from changes in processes, or collaborative opportunities with your supply chain. Potential opportunities could arise with local business partners such as neighbouring manufacturing facilities with whom you may be able to trade reused processed heat or reuse or repurpose materials. For example, could your carbon cardboard waste be shredded to become their packaging material or could waste heat from your processes be used for their hot water or offices? This sort of methodical, structured and quantified approach leads to more optimised use of resources, lowers energy bills, reduces waste, reduces reliance on the national grid, delivers true reductions in emissions and so true reduced harm to the environment.

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New Eye Surgery Unit at Musgrove Park Hospital

Somerset NHS Foundation Trust has installed a state-of-the-art, Ophthalmic Theatre Suite and Day Case Unit in partnership with ModuleCo… ModuleCo has provided a state-of-the-art eye unit extension for the Somerset NHS Foundation Trust at their Musgrove Park Hospital site. Historically the Somerset NHS Foundation Trust has had greater demand for ophthalmic surgeries than they had the capacity to meet. Their eye unit is the busiest department at Musgrove Park Hospital, carrying out over 3,000 operations every year and providing nearly 50,000 outpatient appointments. This development is a key part of ‘Musgrove 2030’ – an ambitious programme to transform the hospital’s facilities and help make sure patients are cared for in the right place to meet their health needs. The state-of-the-art theatre and day ward suite is the first part in the development of a new eye care unit at the hospital, with a fifth theatre expected to be in operation at the site later this year. It has created additional operating theatre space, more recovery space and dedicated patient areas which help them feel comfortable when receiving care. Matthew Bryant, chief operating officer at Somerset NHS Foundation Trust (hospital services), said “The new ophthalmic theatre suite is a very important part of our recovery from the COVID-19 pandemic. “It’s the first time we’ve had a permanent dedicated day surgery theatre for eye surgery in Taunton and we are pleased to be able to offer patients a more positive experience in a better environment. “The additional capacity created by the new ophthalmic theatre suite, along with the hub for macular and glaucoma care introduced this year at Chard Hospital, will also help to reduce waiting times.” To maximise the space and provide all the accommodation needed, the ModuleCo design team developed a bespoke Day Surgery facility design consisting of multiple modules of varying sizes, making up a 484m2 footprint. A ceiling mounted microscope and laser equipment had to be factored into the design to create the specialist Ophthalmic Operating Theatre. The theatre is supported by an integral scrub, lay-up prep, anaesthetic room, dirty utility, 15-patient day ward and multiple consultation rooms for consultants to speak confidentially to, and examine, patients before their operation. The suite was constructed off-site, with nearly 90% of the construction process taking place in ModuleCo’s factory facility, and was installed over a weekend with minimal disruption to the active hospital site. Sales and Marketing Director for ModuleCo and project sponsor, Jonathan Brindley, said: “All of us at ModuleCo take great pride in our continued partnership with Somerset NHS Foundation Trust and supporting them to deliver specialised care to their communities. “The feedback from the surgical team when using the facility is excellent and I know they have been very keen to use the new theatre suite since we first started discussions last December. “It is pleasing to see that we have been able to deliver upon what was originally promised in terms of timescales, quality and the permanent feel and performance of the final build.” The Trust hope that the additional capacity and forming of a dedicated Ophthalmology Centre will help reduce waiting times for routine treatment for the people of Somerset and also marks a very important step in the Trust’s recovery from the COVID-19 pandemic.

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‘Double London housebuilding to tackle housing crisis’

New analysis shows London needs 90-100,000 new homes each year to tackle the housing crisis – double the number currently being built according to the government’s most recent data.   The joint research from the London Housing Directors Group (LHDG) at London Councils and the G15 group of London’s largest housing associations also shows that more social housing is key to meeting the housing needs of low and middle-income Londoners. Delivering on London’s Housing Requirement – an interim report sharing findings from on-going research – uses forecasting from Savills to demonstrate that the market is unlikely to meet the housing delivery targets in the new London Plan. The analysis provided by Savills indicates a need for 90,000-100,000 new homes each year to meet demand and improve affordability, a number higher than the 52,000 homes recently outlined in the new London Plan. Delivery rates are currently far below these figures. The most recent government data shows 41,718 completions in London in 2019/20. The forecasts for 2021/25 also highlight that private housebuilders are focused on the upper mainstream price bands only affordable to higher earners. While need is being met in these price bands, London’s demand for affordable housing is almost eight times greater than the number of homes forecast to be delivered (7.6 times greater than supply, compared to the national average of 2.6 in England). The LHDG and G15 argue this shows the importance of growing the capital’s social housing sector and securing increased government investment in affordable housing for those on low and middle incomes. The chronic shortage of affordable housing is a key factor in London’s homelessness crisis, with the capital accounting for around two thirds of all homelessness in England [1]. Joanne Drew, Co-Chair of the London Housing Directors Group, said: “London’s housing crisis has dragged on for far too long and there’s no end in sight. Due to total market failure and years of underinvestment at a national level, there simply aren’t enough affordable homes being built – leaving London with enormous housing pressures and the highest homelessness rates in the country. “Alongside our housing association partners, boroughs are determined to build affordable homes at mass scale for hard-pressed Londoners. This is crucial for helping us achieve the government’s targets on reducing homelessness, and would also give a shot in the arm to London’s economic recovery from Covid-19. But we need an immediate boost to councils’ powers and resources to make this happen.” Geeta Nanda OBE, G15 Chair and Chief Executive of Metropolitan Thames Valley Housing (MTVH), said: “Tackling the housing crisis is one of the biggest challenges facing Londoners. That’s why housing associations are committed to playing our part in supporting more people to have a decent, secure, and affordable place to call home. As the largest builders and providers of affordable housing in London, we want to work with local, regional, and national government to make sure our shared ambitions are realised. “As this interim report sets out, there are multiple systemic challenges and significant issues such as the building safety crisis, that need coordinated action to resolve. We hope this report helps the conversation move towards practical solutions that help more people have a home and the chance to live well.” The interim report highlights the extent of market failure in London’s housing sector and the affordability challenge that has been created as a consequence of lack of housing supply. The key findings are: The London Plan target of 52,000 homes per year is unlikely to be met in the short to medium-term, with Savills forecasting that completions will average 43,000 per year over the five-year period 2021-2025, with around 30% expected to be affordable or intermediate housing. By 2023 the number of homes under construction are forecast to be at its lowest level for a decade. London’s affordability challenge is much starker than elsewhere in the country and the need for affordable housing greater. Average house prices in the capital are 93% higher than the UK average compared to wages that are just 49% higher, with a house price to earnings ratio in London of 12.5, compared to the national average of 7.7. The boroughs have seen significant increases in homelessness, in part as a consequence of increasing costs resulting from under-supply, with 24,630 households owed a homelessness relief duty by a London borough in 2019/20 compared to 10,180 homelessness acceptances in 2010/11. Based on affordability alone, Savills assesses that the annual need for additional affordable housing in London is 7.6 times greater than supply, compared to 2.6 in England. According to Savills’ estimate of housing need, at least 42,500 sub-market homes are required in London per annum. This compares to an average of 7,900 sub-market homes that have been delivered annually since 2015/16. Savills’ forecast of future supply against demand shows that the largest supply shortfall over the next five years will be in the lower mainstream market segment below £450 pound per square foot (psf) and in the sub-market rent segment, demonstrating the market’s failure to deliver an adequate supply of homes affordable to low and middle-income households. The interim report has been published with a deadline of 17 September for comment and further evidence submissions by stakeholders across London.

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Caddick Construction Appointed to Deliver Flagship Carlisle Healthcare Hub

Caddick Construction has been appointed by United Healthcare Developments to deliver a state-of-the-art, four-storey, healthcare hub on Locke Road, Eastern Way in Carlisle on a design and build contract. This state-of-the-art landmark building will be the most efficient and sustainable primary care centre in the UK. It is designed to be carbon neutral and BREEAM Outstanding. All the building’s power will be supplied by renewal energy, including on site solar electricity generation (roof top photovoltaic panels) and battery storage. Using innovative technologies, heating and cooling will be provided by a heat recovery ventilation system, and hot water by point of use heaters.  This will avoid the need for any “traditional” heating system or any reliance on fossil fuels. Derek Billows, contract manager at Caddick Construction, said: “This carbon neutral primary care building a will be a flagship facility for patients and staff. Our team has a raft of healthcare experience and looks forward to delivering this exciting and innovative project, as well as further strengthening our commitment to the Cumbria region and its supply chain.” Rachel Brown of United Healthcare Developments said “Today is the culmination of 6 years working in partnership with Carlisle Healthcare who have a vision to modernise and transform care, providing more accessible and extended services and improve the health and wellbeing of patients and communities in South Carlisle.  It is wonderful to see the vision now being transformed into a reality.” The Caddick North West team employs more than 70 staff and operates from offices in Warrington and Cumbria. The team has successfully delivered a range of projects including the £154m Angel Gardens’ Scheme in Manchester, a flagship car showroom at Trafford City, Liverpool Shopping Park and a wide variety of industrial developments including Mere Grange and Triumph Business Park on behalf of Network Space.

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Energy networks respond to UK Hydrogen Strategy

The Government’s Hydrogen Strategy sets out hydrogen’s critical role in securing economic opportunities across the UK, cutting emissions and delivering Net Zero.  Responding to the Hydrogen Strategy, David Smith, Chief Executive at Energy Networks Association which represents the UK and Ireland’s energy networks businesses said: “This is a much needed and welcome first step for the development of the UK’s hydrogen economy. It puts in place the right pieces for Britain’s energy networks to act as the platform on which the UK’s hydrogen ambitions will be built, recognising the importance of hydrogen blending and investing in innovation. “We need further recognition that for hydrogen to play its part in Net Zero, producing 5GW of hydrogen by 2030 will not be enough. We must set our sights higher, towards a figure twice that amount.”

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NEW, SUSTAINABLE SMILE HOMES® TO GENERATE £375K PER UNIT IN SOCIAL VALUE

ENGINEERED with technology, sensors, and devices to assist with day-to-day tasks, aid independence and improve health and wellbeing, ADS Independent Living Solutions’ Smile Homes® – an Innovate UK-backed initiative – will see the creation of purpose-designed homes that are adaptable and able to meet the personalised needs and wishes of each resident. A report by specialists at Social Profit Calculator into the social benefits these homes can provide has forecasted that an average of almost £375k will be created over each unit’s lifecycle. ADS Independent Living Solutions is a social enterprise that delivers a ‘different solution’ for housing especially for individuals with challenges in living independently with learning disabilities, autism spectrum disorder and mental health, behavioural and physical challenges. The organisation’s Smile Homes® are constructed off-site to ensure quality, robustness, efficiency, and speed, being delivered volumetrically to minimise works on site. They are highly sustainable, low carbon homes with PVs, green roofing, and the ability to be removed and relocated or refitted and redeployed. David Adams, chief executive at ADS Independent Living Solutions, said: “Our Smile Homes® are highly intelligent and are a new way of responding to the needs and wishes of people with learning difficulties, autism, mental health or behavioural challenges, or physical differences who want to be able to live independently. “A huge benefit to Smile Homes® is the reduced risk of harm or accidents within the homes due to the tailoring of each unit to an individual’s unique needs, for example through avoiding stairs or trip hazards for physical needs, or use of textures, acoustics, or light requirements for sensory needs. “At ADS, everything we do is about the people who live in our homes and their families. We know that the needs of end-users are often complex and always unique, so we strive to understand and tailor services to their requirements and alleviate the day-to-day challenges they face to afford them independence in their lives. “As part of this work, we wanted to make sure we explored and demonstrated the tangible potential social value these homes can deliver, so we commissioned Social Profit Calculator to produce an in-depth analysis, which really helps to demonstrate the far-reaching benefits to everyone from the end-users to local authorities and the health service.” The report forecasts an initial estimate for the social value each Smile Homes® unit could generate over its lifecycle. Fiscal, economic, wellbeing and environmental outcomes were all analysed, and where possible quantified and monetised. For this project, there were 81 key outcomes identified through stakeholder engagement that could be quantified and measured. From this, SPC has calculated a forecast showing that during the lifecycle of each Smile Homes unit, an average of £374,540 will be created in Social Present Value (SPV). This Social Present Value includes figures attached to project delivery, such as jobs created or safeguarded and LM3 economic outcomes from the supply chain during the manufacturing and instalment process, but also environmental elements including waste reduced, waste recycled, and reduced car miles. The benefits for end-users include calculations around the A&E and dispatch savings created by reduced risk of harm or accidents to Smile Homes® residents, plus the all-important increased quality of life thanks to increased autonomy, independence and happiness, and reduced stress and isolation. Angus Townsend, senior social value consultant and lead consultant on the Smile Homesâ report at Social Profit Calculator, said: “We are really pleased to have been able to calculate the social value of ADS Independent Living Solutions, helping showcase both the quantifiable and qualitative outcomes that the Smile Homes® initiative has the potential to provide. “While we calculate the social value of schemes and projects, it’s really important to us as an organisation to play a part in making a real-life difference to people through involvement in diverse projects such as this one – and we look forward to seeing the residents moving into their new homes and reaping the numerous benefits this excellent scheme brings.” The first unit has just rolled off the production line and is ready for deployment to a site in Mansfield and further units will be available and ready for occupation in 2022. To find out more about Smile Homes® or to get in touch, please visit https://www.smilehomes.org/ For more information about Social Profit Calculator, please visit https://www.socialprofitcalculator.co.uk/

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CONSTRUCTION MATERIALS SHORTAGE: NEC AND MANAGEMENT SYSTEMS TO MINIMISE PROGRAMME RISK

Everyone understands the reasons risk management is important – both within construction and elsewhere – but at a time of great pressure to ‘build back better’ and rebuild the economy, it’s more vital than ever to manage risk smoothly and efficiently. Here, Dr Stuart Kings, director at Sypro and NEC4 co-author, examines how the introduction of the Early Warning Register within NEC4 works closely with cloud-based contract management systems to communicate and effectively manage potential risks, while minimising further impact elsewhere. The construction industry is currently facing a whole host of challenges that present risk to ongoing and upcoming projects, with the risks primarily being driven by a shortage of both materials and labour within construction – all set against the background of post-pandemic recovery. Earlier this year, the Construction Leadership Council (CLC) warned that a fair approach was needed towards supply of materials, going as far as suggesting rationing to make sure smaller firms get their fair share of dwindling supplies. Several months later, the demand for supplies both in the UK and globally continues to dramatically outstrip supply. Record sales of building materials are putting enormous pressure on supply chains, which are still in the process of recovery from the pandemic – and there is no indication of shortages improving over the coming months. This of course presents construction schemes with the risk of not being able to acquire supplies critical to their completion, paying much higher prices that squeeze budgets further, or having to alter designs and source alternative products. Indeed, surge in demand will impact smaller companies in greater ways, with SMEs unable to purchase key materials off the shelves, or even afford them. Some may be forced to delay starting schemes on site altogether until they have certainty on product availability in order to keep risks as low as possible – but all of this ramps up the financial pressure, especially on smaller businesses. Another big issue causing potential risk to construction schemes is a shortage of hauliers to get supplies to where they are needed. Brexit has led to the loss of some 15,000 European drivers this year, and the remaining drivers are having to undertake COVID tests and self-isolate where necessary, further exacerbating the shortage. The global shipping industry is also struggling in its post-pandemic recovery, facing congested shipping routes, container cancellations and higher costs, which continue to impact global supply chains – including construction materials. It is crucial that builders and contractors maintain open communications with their customers regarding lead times, possible product substitutions and early notice of price increases – which is where excellent project and contract management systems will become incredibly important. But, how best to manage this risk assessment and communication? NEC contracts have a clear and simple, yet centrally important process for early warnings, whereby the Contractor and Project Manager must notify each other of any matter that could affect the cost, completion, progress or quality of the project. The move from NEC3 to NEC4 was labelled as an ‘evolution, not a revolution’, building on and improving what we were already working with. The updates were about the key principles of being risk-focussed, planned and transparent. As well as mitigating any impairment on a project, the focus is to safeguard timelines, objectives and change the procedure of risk reporting, and therefore mirror the principles of good project management. With regards to early warnings, in NEC4 the ‘Risk Register’ was renamed to the ‘Early Warning Register’ to help separate it from the project risk register, which is often used as a wider project management tool. Default periods for early warning meetings have been set to allow the Project Manager and project team to mitigate any risks quickly and efficiently. There were shortcomings in the previous iteration, including the fact that the Project Manager did not convene meetings and did not put together a first Risk Register. Additionally, early warning meetings were held sporadically and not always with the involvement of the supply chain. Following the changes, there is a clear mandate that the Project Manager issues an Early Warning Register to the Contractor within one week of the starting date. Secondly, the Project Manger convenes a first early warning meeting within two weeks of the starting date and thereafter imposes regular meetings – at the interval states in the Contract Data – to initiate a better ethos and culture of risk under the Engineering and Construction Contract. These key changes appear under clause 15.2 to promote a better management of risk, and so the role of the Project Manager becomes much clearer and proactive in managing the process. The early warning process is simple in principle and critical to the success of NEC contracts and facilitating the spirit of mutual trust and cooperation required by clause 10.1 of the contract. The contract administrator must give the process, and the associated risk, the attention it deserves and develop and use their soft skills to get the best out of risk reduction meetings. Any software system for contract management should facilitate this using a cloud-based – and therefore paperless – process. This is easy to implement under NEC4, which states that ‘if the Scope specifies the use of a communication system, a communication has effect when it is communicated through that system specified in the Scope’ – meaning that the communication has effect only when it takes place through the system. With a cloud-based system, the Project Manager and Contractor can seamlessly manage risk ‘on the go’ from any handheld device – with the digital approach creating one central point of truth, minimising the risks of miscommunication that could exacerbate any issues further. Considering the pressures facing the industry at the moment presenting more risk than ever, the implementation of systems that improve transparency, efficiency, information exchange and the all-important element of risk management will ensure that we keep projects on track, building back better and delivering the high-quality schemes the construction industry is known for. For more information, please

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Common Problems with Tenants and How To Deal with Them

What do you do when you’ve got a tenant who seems to be causing problems? Many landlords and property managers have encountered this problem, and the result is a very frustrated landlord. Understanding the reasons why tenants behave as they do and what that means for your rental business will help you develop a workable strategy for managing this often difficult relationship. Bad tenants can take on many forms, from the irresponsible to the frankly criminal. Here are some common problems with tenants and tips for dealing with them. Late or Partial-Paying Payers Since landlords manage properties, they often see tenants as customers. Failing to look at it from the tenant’s perspective and understand why they might be late in paying rent, however, will only lead to problems. Landlords need to identify who their most profitable, reliable and long-term tenants are early on in the relationship. And once they do, landlords should strive to retain them as much as possible by building a good personal relationship with them and communicating effectively. Whiners A landlord who has a tenant who is a constant complainer may finally have to evict them. The strategy will depend on the landlord’s reason for wanting to get rid of the tenant. A tenant who sublet without permission or a lease is another example of a troublemaker, as well as one who causes a major disruption in the apartment complex or building. Indulgent Pet Owners Landlords face different problems from pet owners every day. Most often face premises liability issues with pet faeces, urine, damaged property and general disturbance to neighbours. Many pet owners are reasonable, but some pet owners let their animals do what they want and disregard the property rules. It is important for landlords to have a clause in the tenancy agreement that covers renting with pets (such as size, number, and appropriate care) and address the potential cost of damages to the property. Landlords should also be aware that tenants can be held responsible for the behaviour of their pets and must be willing to follow through on any eviction proceedings. Destroyers Even the best tenants can damage your property. The first step is to sanction them immediately in writing for damage and then begin the eviction process. Start by serving an eviction notice which is a legal document used by a landlord to evict a tenant for not complying with the original terms of the lease or rental agreement. Don’t let tenant problems ruin your home, your cash flow, or your peace of mind. You can protect your property with insurance. Landlord insurance is a type of insurance that covers your own possessions and liability in case of lawsuits or claims from damage caused to property and/or bodily injury. It can also cover damage to the inside of your home caused by your tenants if you have chosen to rent out your house. Conclusion Solving common problems for tenants is one of the hardest but most profitable duties of a landlord. Some problems may be as simple as returning calls or messages. Most problems can be solved with little to no issues, but it never hurts to make sure everything is covered in your tenancy agreement just in case.

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Technologies paving the way for carbon reduction in our homes

There are several government proposals on the table signalling a transition from where we are today to net zero 2050. Technical solutions have not been decided, but there is talk of certain technologies favoured for carbon reduction – among these are hydrogen-ready boilers and heat pumps. In the short term, it is likely we will see carbon free gases such as hydrogen and bio methane introduced into the current gas grid, neither of which would require home appliances to be replaced. However, should the hydrogen blend exceed 20%, which it eventually will, a hydrogen-ready boiler would need to be installed. 100% hydrogen blend may not be possible for another 10 to 15 years, so in the interim it is likely that government policy will legislate only hydrogen-ready boilers can be placed onto the market from as soon as 2025 – effectively future-proofing existing homes in the UK. Positively, hydrogen-ready boiler installations are simple and straight forward. They connect to the existing gas grid, look like any boiler we see today, the installation process is the same, and will run on natural gas until hydrogen becomes available. At this point, it takes an hour of an engineer’s time and two or three components before the boiler is ready to run on 100% hydrogen. I expect some social housing providers might wish to move forward with this before hydrogen comes online. Heat pumps are another solution to reducing carbon. They are not the easiest of technologies to install, as changes will generally need to be made to the heating and hot water system, as well as the very fabric of the property. While some are pioneering these technologies into existing homes, others may wait until government policy becomes firmer. There may be a middle ground where a gas boiler is supplemented by the installation of an air to water heat pump, a hybrid system which is very common in parts of Europe. We expect there to be various solutions, if not already there, available over time. The general trend of the country, in fact, the world, is to reduce carbon – this is one of the biggest challenges that anybody with housing stock faces. Martyn Bridges is Director of Technical Communication and Product Management at Worcester Bosch

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