Author: Pranav Jaswani, Technology Analyst at IDTechEx The construction machine industry is still in its early stages of electrification, with the first small electric machine only coming onto the market in 2015. However, IDTechEx’s new report, “Electric Vehicles in Construction 2024-2044: Technologies, Players, Forecasts”, highlights how the electric machines of
Deposit alternative specialists flatfair have announced a bumper month with Build To Rent (BTR) sector landlords. And CEO Gary Wright says that smaller, private landlords should follow the lead of the corporate providers in choosing the additional protection offered by their No Deposit scheme. He said: “Understandably, landlords feel they
The Asticus London building, a striking ten-storey landmark, has undergone a remarkable transformation. Originally constructed in 2006, the office building features a stunning new reception, business lounge, landscaped terrace, breathtaking 360-degree panoramic views, luxurious end-of-trip facilities in the basement, and the addition of four new Stannah passenger lifts, one of
Underinsurance is a persistent problem that leaves property owners vulnerable to significant losses, often caused by something as simple as an outdated reinstatement value. To address the growing issue of underinsurance head-on, the Building Cost Information Service (BCIS), which has more than 60 years’ experience in collating and analysing construction
Technology is drastically reshaping many industries, and real estate is no exception. The way properties are evaluated has been transformed by advancements that bring speed, accuracy, and transparency to the process. Whether you’re a buyer, seller, or realtor, understanding these technological changes can give you a significant edge in the
BDC 319 : Aug 2024
Author: Pranav Jaswani, Technology Analyst at IDTechEx The construction machine industry is still in its early stages of electrification, with the first small electric machine only coming onto the market in 2015. However, IDTechEx’s new report, “Electric Vehicles in Construction 2024-2044: Technologies, Players, Forecasts”, highlights how the electric machines of today are bigger and better than their predecessors from less than 10 years ago. OEMs worldwide are picking up the pace of electric machine development, and IDTechEx finds the industry will grow to be worth over US$126 billion in 2044. Digging force of electric vs. diesel mini-excavators. Source: IDTechEx Machine performance continues to improve The first electric machines to come onto the scene were mini-excavators. Their smaller sizes and less intense workloads made them the ideal testing ground for construction electrification. Many construction companies’ concerns then were whether these electric machines could withstand the demands of the job site and deliver similar performance to diesel engines. IDTechEx’s new report finds that electric mini-excavators are now at a point of development where they can match diesel on virtually all key metrics. EVs offer up equivalent or even superior power to diesel machines, with models from Kato and Wacker Neuson able to generate 30-60% more digging force than an average diesel machine of the same size. Significant improvements have been seen in the runtime of these machines too. Where the first machines on the market only achieved 4 to 6 hours of operation on a single charge, newer machines can manage up to 8 hours of operation (a full workday) as standard. Persistent battery development has played a huge part in this increase, and IDTechEx expects runtimes to reach 9 to 10 hours in the near future. Large excavators and loaders are coming to the fore While mini-excavators dominated the early phases of electric construction machine growth and are still the market’s largest segment, the development focus has pivoted onto large excavators and wheel loaders. Together, these two machine types made up 35% of all equipment sales in 2023 and are some of the heaviest emitters of greenhouse gases on the job site, contributing to over 50% of all construction machine emissions. Their electrification is, therefore, key to furthering the decarbonization of the global construction industry. As the rate of new electric machine models entering production has increased from 2019 to 2023, so has the size of these machines. Where 3-tonne mini-excavators once represented the height of electric machine technology, multiple OEMs now have large excavator models weighing 20 tonnes or greater. The Chinese OEM Know-How even started producing a 52-tonne electric excavator in 2023, which is by far the largest seen to date. Wheel loaders have reached a similar stage, with new 20-tonne machines now being the norm for electrification. Bigger machines necessitate bigger and more advanced battery systems, and the rise of electric excavators and wheel loaders has seen battery sizes in construction shoot up dramatically over the last 5 years. The maximum battery size installed in newly produced models has consistently gone up from ~30 kWh in 2018 – used in mini-excavators and similar compact machines – to over 500 kWh in 2023. The Know-How 52-tonne excavator is equipped with an enormous 700 kWh battery, which IDTechEx estimates would cost US$210,000 on its own and weigh over 3.5 tonnes. What’s next for EV construction machines? Many of the larger machines now entering the market have already gone down the same path as mini-excavators in matching the performance of diesel counterparts. OEMs are at a stage where performance parity is no longer challenging to achieve and are focused on expanding their EV portfolios into bigger machines and new equipment types. Chinese OEMs have been market leaders in this sense, developing larger excavators and wheel loaders while also being proactive in the electrification of mobile cranes weighing in the hundreds of tonnes. Battery advancements will play a huge part in determining the future of the electric construction industry. OEMs currently achieve battery pricing far above what is seen in the automotive market, but increasing the scale of EV production and setting up dedicated supply chains will help bring down costs. At the same time, improving the efficiency of existing battery technologies and bringing in more advanced Li-ion and future battery technologies will widen the types of machines that can be electrified and further enhance their performance. The new IDTechEx report “Electric Vehicles in Construction 2024-2044: Technologies, Players, Forecasts” provides deeper analysis of the future of the electric construction machine industry. It finds that the industry will grow at a CAGR of 21% to reach US$126 billion in value by 2044. For more information and downloadable sample pages, please visit www.IDTechEx.com/EVConstruction. For the full portfolio of electric vehicle market research available from IDTechEx, please see www.IDTechEx.com/Research/EV. Upcoming free-to-attend webinar….. The Electric Future of Construction: EV Machines On The Rise Pranav Jaswani, Technology Analyst at IDTechEx and author of this article, will be presenting a free-to-attend webinar on the topic on Thursday 5 September 2024 – The Electric Future of Construction: EV Machines On The Rise. This webinar will include: We will be holding exactly the same webinar three times in one day. Please register for the session that is most convenient for you. Click here to check the timings and register for your specific time zone. If you are unable to make the date, please register anyway to receive the links to the on-demand recording (available for a limited time) and webinar slides as soon as they are available. Building, Design & Construction Magazine | The Choice of Industry Professionals
Deposit alternative specialists flatfair have announced a bumper month with Build To Rent (BTR) sector landlords. And CEO Gary Wright says that smaller, private landlords should follow the lead of the corporate providers in choosing the additional protection offered by their No Deposit scheme. He said: “Understandably, landlords feel they are living in uncertain times. Local authority licensing is on the increase and the Renters Rights Bill is just around the corner. “It’s not surprising that the bigger providers are looking at the rental landscape and seeking out as much protection as they can for their investments.” July was a record month for No Deposit plans from flatfair’s BTR partners with 80% more plans sold than the same month last year. Their deposit alternative option is offered at approximately 77% of live BTR units and their customers include many of the most respected names in the industry, such as Greystar, Native Residential and urbanbubble. Wright explained that flatfair offers free protection of up to 10 weeks’ worth of damages and/or rent arrears for landlords and if the amount owed exceeds this, flatfair pays the landlords upfront while recovering the debts themselves. Fully recovered “With the extra protection offered with our deposit alternative, there can be a misconception that it costs landlords money. But it is completely free for both agents and landlords and they unlock double the amount of protection in the event of damage to property or rent arrears at the end of the tenancy. “There can also be a mistaken belief that deposit alternatives attract a poorer quality of tenant but in our case, the vast majority of No Deposit tenancies have closed without charges or they have been settled in full by the tenant. “The remainder have set up repayment plans for the money to be fully recovered on behalf of the landlord. “A month on after the election, we can clearly see the direction of travel – that is very tenant-focused – landlords will be bound to be feeling pressure. “The BTR sector – as a group of very large landlords – are absolutely committed to this product and see the value of it and we firmly believe that agents and smaller landlords would feel the benefit if they followed suit. They are the lifeblood of the Private Rented Sector (PRS) and they should feel that their businesses are safe and secure.” Wright recounted the story of an agent client who also let their own property with No Deposit: “Their tenants’ charges exceeded 10 weeks’ worth of damages and unpaid rent. In this particular case, they received 5 weeks’ worth of rent plus additional payment for redecoration, cleaning and repairs – full recovery. They said they were paid more than they would have received through a traditional deposit scheme and it saved them a lot of hassle chasing down the debt. “The bigger BTR players have already realised this and there is no reason why private landlords should miss out.” Building, Design & Construction Magazine | The Choice of Industry Professionals
The Asticus London building, a striking ten-storey landmark, has undergone a remarkable transformation. Originally constructed in 2006, the office building features a stunning new reception, business lounge, landscaped terrace, breathtaking 360-degree panoramic views, luxurious end-of-trip facilities in the basement, and the addition of four new Stannah passenger lifts, one of which can be used by emergency services in the event of a fire. Architects, Aukett Swanke, envisioned a remarkable Cat A office refurbishment design, with a strong focus on sustainability, achieving BREEAM Very Good accreditations. The building prioritises inclusivity with the new lifts providing daily step-free access. The Client The re-imagined Asticus building was acquired in 2016 by AXA IM Alts, a global leader in alternative investments. AXA IM Alts teamed up with primary contractors MND Construction Services, and architects Aukett Swanke, to undertake a comprehensive building refurbishment to all areas. This also included adding a new floor, all part of a broader lease opportunity. Stannah worked with MND Construction Services and Aukett Swanke to create modern and compliant step-free access throughout. Work Stannah installed three passenger lifts, as a triplex, each accommodating 13 people, transporting visitors and staff from the ground floor all the way up to the new tenth floor, with one lift extending to the basement. Stannah installed the lifts using a scaffold-less method. These passenger lifts were specified at 1000kg capacity and operated at a speed of 1.6m per second, providing a quick and efficient ride for passengers. Stannah also installed a fourth lift which is for firefighting but can be used as a normal passenger lift. A firefighting lift is an essential safety asset in high-rise buildings and has dedicated control features to aid the fire and rescue service. Some of the key features included in the firefighting lift design are trap doors, ladders, an emergency intercom system, and a separate power supply used by firefighters during rescue operations. This ensures the lift can operate efficiently even if the main building electrics are compromised. All the lifts adhere to the relevant performance and safety standards. Additional works included a new tenth floor, extensive refurbishments featuring new Cat A and optional Cat A+ finishes, the implementation of end-of-trip facilities such as bike storage racks, and a complete renewal of building services. Challenges New modern lifts were required to accommodate the increased number of people working in the building due to the addition of a new storey. This resulted in the need for a fully compliant and modern firefighting lift to meet the associated fire and safety specifications. There was an existing firefighting lift, although a survey by Stannah revealed concerns about compliance and operational issues. Before the new lifts could be installed, the existing four lifts had to be removed whilst minimising disturbance to the building occupants, ensuring safety and retaining step-free access at all times. This site was a live office environment, meaning it had existing tenants on some of the floors. As always for Stannah, safety was the first priority during the work as well as managing dust and noise levels. The Stannah team took great care to understand the operational requirements and concerns of the building occupiers to ensure that disruption to their daily activities was kept to a minimum. This even involved site tours so that they were fully involved in all aspects of the programme. Results The lift solution provided by Stannah at Asticus centred around accessibility, design and, for the fourth lift. fire safety. Stannah provided a tailored lift solution that not only fulfilled the design requirements but also aligned perfectly with the logistical needs of the construction process. To ensure precision in meeting the design requirements, Stannah delivered black-painted glass car finishes, with careful attention to the equal spacing of grey vertical stripes, even where the back and side panels met. Given the lifts’ placement on an odd-floor triplex, Stannah incorporated priority buttons into the design of the lift which served all floors, enabling efficient group call planning. Additionally, two lifts were installed with counterweight safety gears, emphasising Stannah’s commitment to delivering a functional, secure and aesthetically pleasing lift solution tailored to the specific needs of the project. The bespoke full-depth architraves, which were acid-etched with floor markings, added a decorative touch to the building’s design. The passenger lifts resulted in a practical and elegant solution, transforming the building into a desirable office refurbishment with step-free access to all areas. The 63,000sq of reimagined office space launched in February 2024. Building, Design & Construction Magazine | The Choice of Industry Professionals
Underinsurance is a persistent problem that leaves property owners vulnerable to significant losses, often caused by something as simple as an outdated reinstatement value. To address the growing issue of underinsurance head-on, the Building Cost Information Service (BCIS), which has more than 60 years’ experience in collating and analysing construction costs, has partnered with risk management firm Intelligent AI to provide a service that produces reinstatement cost assessments at the touch of a button. The BCIS Intelligent Rebuild Cost Platform draws from multiple data sources to create rebuild cost reports for residential and commercial properties, including BCIS reinstatement data, planning applications and satellite imagery. Crucially the platform can report on everything from individual residential properties to multi-billion-pound commercial portfolios, enabling annual assessments where previously a rolling-check every three or four years might have been all that was possible. James Fiske, BCIS CEO, said: “We help property professionals to not only access high-quality data, but to understand the most appropriate data for them. Sadly it’s not uncommon to find unreliable sources of data being used to inform sometimes major business decisions. “This could be a property owner simply using market valuations for declared reinstatement values, or using inappropriate indices, like general inflation, to estimate movement in rebuild costs. In some larger organisations, there can be issues with data management where figures have been passed between teams, have come through an acquisition, or nobody is quite sure what the original source is. “The use of problematic data is of course not limited to reinstatement values, but the financial risk in this area could be the most significant one a property owner or portfolio manager has, if they are exposed to considerable loss through underinsurance. On the flip side, having a clearer view of the rebuild costs also helps to avoid overinsurance, and overpaying on a policy.” BCIS polled more than 200 professionals, predominantly from surveying and insurance roles, and asked what factors they thought contributed most to incorrect reinstatement valuations. More than one-third (36%) said a lack of regular re-evaluations, 24% said changes in construction costs, and 20% said inaccurate initial assessments. Fiske said: “We know policyholders want to be adequately covered, but annual site visits for a whole portfolio may be unfeasible. From portfolio managers using IRCP to perform an immediate risk assessment to surveyors using pre-populated assessments as a starting point, the intention is to improve efficiencies, save time, and reduce risk for everyone in the process.” Using reliable, verified data is crucial to reducing instances of underinsurance and is the driving principle at the heart of the platform. BCIS reinstatement data alone constitutes more than 1,100 dwelling models and 650 ancillary models, representing a wide range of supporting structures, components, and features. These models are built upon input costs derived from upwards of 12,500 regularly updated supply prices, as well as labour, plant, and specialist rates, in total producing more than four million rebuilding cost permutations. Estimates of the prevalence of underinsurance in residential and commercial policies vary, but with the onus on professionals to ensure they have done everything they can to minimise risk, it represents an area of huge concern. In the BCIS poll of professionals, the majority said they encounter underinsurance issues related to reinstatement valuations either frequently (29%) or occasionally (30%). Less than one-quarter (22%) said they rarely did, and just 13% said never. A recent survey commissioned by Aviva[1] found 73% of brokers are worried that some of their clients may be underinsured and they ranked underinsurance second on a list of market challenges they are concerned about. Intelligent AI CEO Anthony Peake said another key aim of the platform, which has been developed using groundbreaking AI tools, together with support from Lloyd’s Lab and leading insurers, is to provide the industry with the tools necessary to communicate the importance of reliable and regular assessments. He said: “We’re essentially trying to avert disaster. Whether that’s a residential property where a few hundred pounds difference in the premium could save the customer potentially missing out on hundreds of thousands of pounds in a payout, or a commercial portfolio where the declared value is upwards of a billion, it’s about safeguarding people’s homes and livelihoods should the worst happen. “In a recent test we did with an insurer, analysing a portfolio of 355 commercial properties, we found the reinstatement value to be £1.17bn underinsured. “In the poll, the top three barriers to customers updating their coverage to avoid underinsurance were cost considerations, lack of understanding and lack of awareness. Policyholders need to understand the potential consequences and what they can do about it.” Underinsurance is not a new issue, but it has been exacerbated in recent years by rampant inflation, which particularly impacted construction materials prices. Annual growth in the ABI/BCIS House Rebuilding Cost Index peaked at 19.4% at the end of 2022, representing a significant hike in the costs associated with rebuilding a property. The vast majority of professionals polled said rising construction costs have had either a significant (71%) or moderate (24%) impact on their customers or clients in the last two years. Cos Kamasho, BCIS Asset Data Manager, said: “Although inflation has cooled, and we’re not seeing those massive spikes now, there are still lots of external influences that can push up costs. “Annual growth in the BCIS Labour Cost Index, which tracks movement in trade wage agreements, for example, is at a 20-year high, and there are widely reported skills shortages in the industry. Changes to building regulations can also greatly impact rebuild values as properties have to be rebuilt to the current standard, not what was in place when the property was first built. “Inflation coming down doesn’t necessarily mean prices have come down. The cost of many materials in construction remain at historic highs, so using an up-to-date data source is vital.” To find out more about the BCIS Intelligent Rebuild Cost Platform please visit: https://bcis.co.uk/product/bcis-ircp/ For more information about BCIS, please visit: www.bcis.co.uk and for more information on
Technology is drastically reshaping many industries, and real estate is no exception. The way properties are evaluated has been transformed by advancements that bring speed, accuracy, and transparency to the process. Whether you’re a buyer, seller, or realtor, understanding these technological changes can give you a significant edge in the market. From AI-driven analytics to virtual property tours, modern techniques are making real estate valuations more precise than ever before. As we dive deeper into these innovations, you’ll see how they streamline processes and enhance decision-making for all parties involved. 5 Ways Technology Is Transforming Real Estate Valuations Curious about how technology is changing the game in real estate? Here are five ways that tech advancements are revolutionizing property valuations, making the process better. 1. AI and Machine Learning AI and machine learning are transforming how real estate valuations are conducted. These technologies can sift through massive amounts of data, such as historical property prices and neighborhood developments, to deliver precise value predictions faster than manual efforts. With their ability to identify patterns and trends that may not be obvious to human analysts, AI, and machine learning provide deeper insights into market dynamics. This results in more accurate valuations that both agents and buyers can trust. 2. Automated Valuation Models (AVMs) Automated Valuation Models (AVMs) are a game-changer in the world of real estate valuations. These sophisticated systems use mathematical formulas and extensive databases to instantly estimate property values. By incorporating factors such as recent sales, market trends, and geographical data, AVMs provide remarkably accurate valuations. They are particularly useful for quick mortgage rate analysis because they offer immediate insights into property worth. This streamlines the decision-making process for both lenders and buyers, ensuring speed and efficiency without sacrificing accuracy. 3. Big Data Analytics Big data analytics has become a cornerstone in modern real estate valuations. By analyzing vast sets of data, including market trends, buyer preferences, and economic indicators, big data offers a holistic view of property values. This technology allows you to delve deeper into the factors that influence pricing, whether it’s local amenities or historical sales patterns. The ability to process and interpret this information quickly leads to more informed decisions and accurate valuations. As a result, both buyers and sellers benefit from greater transparency. 4. Virtual Reality (VR) Tours Virtual Reality (VR) tours are revolutionizing the way potential buyers experience properties. With VR, you can explore a home in detail from anywhere in the world, gaining a comprehensive understanding of its layout and features without physically being there. This immersive experience is valuable during the valuation process, as it provides an accurate sense of space and condition that photos can’t capture. VR tours enhance engagement and allow for more informed decisions, making real estate transactions smoother and more efficient. 5. Blockchain Technology Blockchain technology is bringing a new level of transparency and security to real estate transactions. By creating decentralized, tamper-proof records of property histories, blockchain ensures that every transaction is traceable and verifiable. This level of clarity simplifies the valuation process by making it easier to confirm ownership histories and property data. Additionally, blockchain reduces the risk of fraud, increasing trust between buyers and sellers. As a result, real estate professionals can rely on more accurate and secure information. These Technologies are Transforming Real Estate Evaluations Technology’s impact on real estate valuations is undeniable and constantly evolving, offering extensive opportunities for all stakeholders involved. By embracing these tech advancements, you can stay ahead of the curve and make smarter, more informed decisions in the property market. If you’re looking to buy, sell, or get a clearer understanding of property values, now is the perfect time to leverage these cutting-edge tools.
