A NEW high-quality residential care scheme designed to promote and maximise independent living has completed in London, providing 70 new homes and tackling the wider housing crisis in the area. Reardon Court in Enfield, located on the site of a former care home in Cosgrove Close, has been designed to
NATIONAL framework provider Pagabo has announced the launch of its latest procurement offering expected to be worth £90m, the Professional Services Dynamic Purchasing System (DPS). There are two versions of the DPS, one covering 11 regions across England, Wales and Northern Ireland, and another version covering Scotland. Now live, the
Innovative ‘Whole of Seabed’ approach helps plan seabed use up to 2050 including offshore wind The Crown Estate has won an Esri ‘Special Achievement in GIS Award’ for its innovative programme that helps plan seabed use around England, Wales and Northern Ireland. Considered a world first, the spatial planning system
Members of the Bee Network Committee have approved the release of more than £20m to progress with key transport infrastructure projects in Greater Manchester. The latest release of funds – including £10m from the City Region Sustainable Transport Settlement (CRSTS) and more than £10m from the Mayor’s Challenge Fund –
A Yorkshire based building services engineering company has marked its tenth anniversary by setting its sights on hitting £12million turnover and creating new jobs this year. GW Power-Safe was established in Hull in 2014 by managing director, Daniel Haley after he was made redundant from his job as an electrician.
Top 10 UK homebuilder, Keepmoat, has announced the appointment of Ben Leather as Regional Managing Director, to head up the West Midlands and South West regions. In his role as Regional Managing Director, Ben will focus on implementing new strategies for the region, supporting the land acquisition strategy and driving
The Sheffield Property Association (S-PA), a dynamic group of businesses dedicated to enhancing Sheffield’s built environment, announces an exciting opportunity for an individual to become the organisation’s next chair. Since its inception in 2017, the S-PA has driven investment, opportunity, and prosperity, transforming Sheffield into a vibrant place for everyone
The new MILWAUKEE® M18™ FORGE™ 8.0 Ah and 12.0 Ah batteries bring more power and high speed cooling in a redesigned resistant housing. The M18™ FORGE™ 12.0 ah Battery Pack delivers 50% more power than the EXISTING M18™ HIGH OUTPUT™ 12.0 ah. The M18™ FORGE™ 8.0 Ah Battery Pack delivers
Glenigan, one of the construction industry’s leading insight experts, releases the August 2024 edition of its Construction Index. The Index focuses on three months ending to July 2024, covering all underlying projects, with a total value of £100m or less (unless otherwise indicated, with all findings seasonally adjusted). It’s a
By Matt Clark, Managing Director, Cardium Law As a legal firm specialising in the construction sector, we are seeing an alarming rise in insolvencies and statutory demands linked to unpaid loans, breaches of facility agreements, personal guarantees, unpaid invoices and adjudications. This trend is not merely a reflection of current
A NEW high-quality residential care scheme designed to promote and maximise independent living has completed in London, providing 70 new homes and tackling the wider housing crisis in the area. Reardon Court in Enfield, located on the site of a former care home in Cosgrove Close, has been designed to enhance individuals’ quality of life through access to a multi-purpose environment. Two communal courtyards, a central social space, and several auxiliary function rooms come together to deliver a community within itself, with hobby rooms, a library, and hairdressing area promoting a sense of independence and connectivity between residents. Encircling the internal courtyards, accessible corridors have been incorporated into the design to enhance communal living and promote social inclusion. Leading multi-disciplinary consultancy Pick Everard is behind the scheme, collaborating closely with contractor GRAHAM and Enfield Council to deliver architecture, landscape architecture, project management, contract administration, clerk, technical advisory, M&E, sustainability and energy, and civil and structural engineering services. John Clarke, director at Pick Everard, said: “This has been a rewarding project, focusing on a specialist area of residential living that draws on our vast experience in delivering affordable and high-quality care environments. “The different elements of the scheme come together to create a mini community within Enfield where residents can enjoy a varied offering of active social and wellbeing opportunities, aided by an inclusive and disability conscious design. Each flat benefits from an outward facing balcony, with those on the ground floor having access to a garden space to really enhance a sense of independence that is present throughout the scheme. “We now look forward to seeing residents and staff make use of this fantastic new space, which will positively impact generations to come.” The Enfield scheme has been commended by local delegates for its wider impact on aiding housing shortages in the area, with older residents able to move into high quality housing, while increasing the availability of family homes in the borough. As well as maximising housing opportunities, the scheme has also incorporated a green design philosophy, with more than 100 solar photovoltaic panels installed on the roof, alongside sustainable drainage systems (SuDS) to help with rainwater management. Social value was a key part of the project, with careers talks held at nearby schools and material suppliers chosen in the local area. Pat O’Hare, regional director at GRAHAM, said: “Reardon Court will provide independence, safety, and comfort for residents for years to come. This project underscores the importance of meeting the evolving needs of an ageing population who require extra support and care. “With its thoughtful design, comprehensive care services, and commitment to fostering a sense of community, Reardon Court sets a new standard for independent living in later years.” Chris Witterick, key account manager at Procure Partnerships Framework, added: “We are delighted to have supported Enfield Council in the procurement of this project. Reardon Court will nurture independence and provide the residents with comfort, community, and expert care. “The considered design choices on this project, coupled with the expert construction delivery by GRAHAM has set a new precedent for extra care facilities across the UK.” For more information on Pick Everard and the services it provides, visit: www.pickeverard.co.uk/
NATIONAL framework provider Pagabo has announced the launch of its latest procurement offering expected to be worth £90m, the Professional Services Dynamic Purchasing System (DPS). There are two versions of the DPS, one covering 11 regions across England, Wales and Northern Ireland, and another version covering Scotland. Now live, the DPS will run for three and a half years before expiring in 2028, and has no set value bands in order to offer unlimited project value. The fully PCR-compliant DPS will enable clients access to solutions covering the full spectrum of construction and premises consultancy services including project management, architecture, engineering, town and masterplanning, and strategy advice. Jason Stapley, chief procurement officer at Pagabo, said: “Professional services are under significant demand from our public sector clients, so we’re pleased to be able to offer them a flexible and compliant procurement option. “Through the DPS we can offer clients as little or as much help with their projects as they like, through a range of procurement support and resources available. Meanwhile they can also onboard the contractors and consultants with which they have existing relationships so that they can tender compliantly too. “We’re expecting the DPS to be particularly popular with SMEs that will see the appeal of this procurement offering due to its ability to put them in front of clients for free.” Organisations appointed to Pagabo’s latest Professional Services Framework will be invited to join the new DPS, but the onboarding process will be ongoing throughout the lifetime of the procurement option. Jason continued: “Our DPS cuts timescales, streamlines the process and simplifies the tender process for clients and suppliers alike. “As a DPS, this option provides an ‘open market’ solution designed to give clients access to a pool of pre-qualified suppliers – which can be constantly updated with new suppliers. This differs to the more traditional framework agreements, in which the list of suppliers is locked for the full term. “The DPS provides any client with a wide range of options when it comes to suppliers, which will go through the further competition process to ensure the best supplier is appointed to the job.” The Education Alliance Trust is the contracting authority for the two new agreements. For more information, please visit www.pagabo.co.uk Building, Design & Construction Magazine | The Choice of Industry Professionals
Innovative ‘Whole of Seabed’ approach helps plan seabed use up to 2050 including offshore wind The Crown Estate has won an Esri ‘Special Achievement in GIS Award’ for its innovative programme that helps plan seabed use around England, Wales and Northern Ireland. Considered a world first, the spatial planning system was developed by The Crown Estate’s Marine and Digital teams and includes data from over 250 sources across ten sectors, allowing for scenario planning across a wide range of marine industries. The Whole of Seabed approach uses Esri’s GIS (Geographical Information System) software to create scenarios which simultaneously consider the demands upon the seabed up to 2050, including offshore wind, carbon capture, telecoms and minerals, whilst protecting the interests of nature. This method has enabled The Crown Estate to play a key role in supporting the UK’s position as a world leader in offshore wind development, a sector which generated enough energy to power 50% of UK homes last year. The award was made at the Esri annual User Conference in California, one of the world’s largest geospatial industry events with around 40,000 physical and virtual attendees. ‘Special Achievement in GIS Awards’recognise organisations which are demonstrating geospatial leadership and setting new precedents for the global GIS community. More than 100,000 entries were submitted with the winners selected by Esri’s Founder and President Jack Dangermond. “Users around the world are applying GIS in countless fields to take a geographic approach toward solving complex problems and global issues,” said Esri Founder and President Jack Dangermond. “It is my honour to recognise these organisations for their innovative work integrating geospatial technology across industries, helping to build a better world.” By prioritising different data, The Crown Estate programme ensures all environmental, industrial and social interests and constraints are fairly represented. This delivers the best evidence available to support marine spatial planning. Scenarios are then compared in a dashboard to understand the differences in cost, constraint, or displacement, among other criteria. “Geospatial innovation is helping The Crown Estate balance a green energy transition to net zero and nature recovery whilst creating a thriving marine economy”, said Gus Jaspert, Managing Director, Marine at The Crown Estate. “We are incredibly proud to win this award which is testament to our world-leading work in spatial analysis using Esri software, and a demonstration of our ongoing investment in digital technology and skills. It helps make sense of highly complex and competing demands on the seabed, driving better planning decisions for the benefit of the nation for years to come.” The Crown Estate is an independent company which manages a diverse £16bn portfolio, including the seabed and much of the coastline around England, Wales and Northern Ireland, urban centres and development opportunities. Through the management of its portfolio, company is helping to solve some of the nation’s major challenges, including delivering net zero and the energy transition, enhancing biodiversity and nature recovery, and creating thriving communities by stimulating regeneration and economic growth. “With an increasingly busy seabed, it is critical that development decisions are based on robust data and evidence”, commented Michelle Moore, Spatial Planning Director, The Crown Estate. “Advanced Esri spatial analysis tools allow us to tackle complex, multidimensional problems in an open and transparent way. Our unique ability to plan for the long-term and convene a wide range of stakeholders, helps us to balance all interests to achieve the best outcomes for net zero, nature and economic growth.” Pete Wilkinson, Managing Director, Esri UK said: “The Crown Estate’s approach is a best-in-class example of how geospatial expertise can deliver valuable outcomes. True innovators in marine spatial planning, the team’s work is of national importance making them a very worthy winner of the award.”
Members of the Bee Network Committee have approved the release of more than £20m to progress with key transport infrastructure projects in Greater Manchester. The latest release of funds – including £10m from the City Region Sustainable Transport Settlement (CRSTS) and more than £10m from the Mayor’s Challenge Fund – will go towards a range of projects, each contributing towards the delivery of a high-quality, affordable and fully integrated public transport and walking, wheeling and cycling network. Vernon Everitt, Transport Commissioner, said: “We are moving quickly to bring about improvements that will make a real difference to how people get around Greater Manchester using public transport or when walking, wheeling or cycling. “Over the next few years more than £1bn will be invested to make bus and active travel journeys better and to make paying more convenient through ‘tap and go’ ticketing. The scale of ambition is reflected in the drawdown of these funds that support continued delivery of the Bee Network across all ten districts of the city-region.” Integrated ticketing and travel information To ensure people can travel conveniently and seamlessly on Bee Network services, funding of £7.3m was approved to deliver contactless pay-as-you go across bus and Metrolink services. It means customers will be able to pay via a contactless card or device while using Bee Network bus and tram services throughout the day, with the best value fare automatically worked out and capped for them. The funds will also be used to help combat fare evasion, with new devices to check whether passengers have paid via contactless, along with a new feature that will enable passengers to see their journey history in the Bee Network app. Middleton ‘Streets for All’ The ‘Streets for All’ scheme – that will ensure that high-quality walking, wheeling and cycling connections – is currently being developed for Middleton town centre by Rochdale Council. The scheme, which is still subject to further approvals, supporting the wider Masterplan and its ambition to unlock regeneration around the Market Place, creating new housing and establish of a new cultural quarter. A key feature of the scheme will involve reconfiguring the Market Place roundabout, to include a new public space, better segregated cycling provision around the roundabout and improvements to the underpass to allow sufficient width for shared use between pedestrians, wheelchair users and cyclists. The Bee Network Committee approved £0.7m to progress the scheme to a final business case and progress with awarding a contract for the Streets for All scheme. Improving journeys – Rochdale – Oldham – Ashton Improving bus routes around Greater Manchester is a Bee Network priority, and a long-term project is already underway to improve the reliability of bus services between Rochdale, Oldham and Ashton, along with bettering connections to and from bus stops and the environment along key routes. The route between Rochdale, Oldham and Ashton is currently the busiest on the franchised network. Funding for the project, known as Improving journeys – Rochdale – Oldham – Ashton is being released in phases, and the Bee Network Committee has now released £2.1m of CRSTS funding to develop the Rochdale element of the scheme to Full Business Case. Construction of the main scheme in Rochdale is anticipated to commence in Autumn 2025, subject to further approvals. Active travel schemes Walking, wheeling and cycling infrastructure is a key component of the Bee Network, enabling people to opt for active modes of travel for shorter journeys through the provision of high-quality, safe and well-connected routes. Funding for four active travel schemes was approved by the Committee, with a total of £10.46m to be released from the Mayor’s Challenge Fund – a programme of work partly funded by CRSTS. The draw down will enable the delivery of almost 5km of Bee Network standard routes, crossings and junction improvements. Almost £5m (£4.99m) was approved for cycling and walking infrastructure along Seymour Grove in Trafford, part of a wider programme of work that forms Trafford’s A56 North Active Travel Corridor between Stretford and Manchester city centre. The Seymour Grove scheme will provide a series of measures along a 0.5km section of Talbot Road, addressing a missing link in the existing active travel network. The wider scheme will link the cycle route to Trafford Bar Metrolink station, see the addition of Starling Bank Bike hire facilities and support the wider regeneration vision for Stretford. As well as a segregated cycle route, this scheme will provide two fully segregated protected junctions (Chester Road/Stretford Road/Talbot Road and Seymour Grove/Talbot Road) and will enable future development of an active travel route running south along Seymour Grove, connecting to the Chorlton Cycleway. The committee also approved £2.17m to build a new cycleway in Leigh, along on the A572 St Helens Road from the Bridgewater Canal to Bonnywell Road. This route will also improve the route from Leigh to Leigh Sports Village and Pennington Flash. In addition, £1.99m of MCF funding will be released to develop a traffic-free active travel route from Wigan town centre to Standish, bypassing the busy A49, and £1.31m to extend the Whelley Loop Line, and build an accessible ramp up to Hall Lane, improving access to Haigh Hall. Building, Design & Construction Magazine | The Choice of Industry Professionals
A Yorkshire based building services engineering company has marked its tenth anniversary by setting its sights on hitting £12million turnover and creating new jobs this year. GW Power-Safe was established in Hull in 2014 by managing director, Daniel Haley after he was made redundant from his job as an electrician. Today it offers a full range of renewable energy, mechanical and electrical solutions to public sector clients and businesses across all industries. The company now employs a 37-strong team and is actively recruiting electricians, plumbers, gas and heating engineers, air conditioning engineers, renewables specialists and apprentices this year. In recent years, GW Power-Safe has diversified into decarbonisation and the renewables sector, and two years ago Daniel co-founded C3 Group which provides sustainability consulting services to businesses around the UK, focussing on sustainable energy solutions, carbon reduction plans, feasibility studies, funding and net zero strategies. C3 Group is headed up by Ash Wray and currently employs a team of four sustainability consultants and designers. In recognition of his work in decarbonising buildings, as well as the success of both GW Power-Safe and C3 Group, Daniel was recently presented with an Octopus Energy Springboard Entrepreneur Award by Octopus co-founder, Chris Hulatt. He was nominated for the award by Kingston upon Hull West and Haltemprice MP, Emma Hardy. This follows GW Power-Safe also being named as Hull College’s Apprentice Employer of the Year. GW Power-Safe celebrated its tenth anniversary with a celebration in Hull’s Victorian Paragon Shopping Arcade. During the event, awards were also presented to team members who go above and beyond. These were voted for by their colleagues and included Apprentice of the Year, Zuzanna Radzewicz, Engineer of the Year, Aiden Armstrong, Office Champion, Amy Mumby and Rising Star, Dion Wilkin. Daniel said: “After leaving school and becoming an electrical apprentice at Hull College, I qualified as an electrician but when I was suddenly made redundant in my mid-20s, I decided the time was right to start my own business and GW Power-Safe was born. We now provide a full range of mechanical and electrical trades to all types of clients, as well as becoming a renewables specialist. “As part of this we’re now working on solar, commercial battery and air source heat pump installations for public sector organisations such as NHS Trusts and education establishments across the north of England. We also recently secured a place on the Crown Commercial Services’ renewables framework, which provides the public sector with decarbonisation services to support their carbon net zero strategies. “This is already proving to be a big growth area for us which will result in double-digit revenue growth this year as our turnover reaches £12million. Our team is also growing in line with this and as well as recruiting up to 10 qualified and experienced engineers this year, we’re always committed to investing in apprentices. After I came into the industry as an apprentice, I know how important it is to invest in future talent. We already employ seven apprentices and will recruit another four in the coming months.” Finally, Daniel added: “Another area that’s driving growth has been the launch of C3 Group and its ability to collaborate with G3 Power-Safe to provide clients with an end-to-end solution, from design right through to delivery, for their decarbonisation needs. This also means that we’re increasingly securing work outside our East Yorkshire heartland and we’re now working on projects across the country, and this national focus will be key to our future growth.” Building, Design & Construction Magazine | The Choice of Industry Professionals
Top 10 UK homebuilder, Keepmoat, has announced the appointment of Ben Leather as Regional Managing Director, to head up the West Midlands and South West regions. In his role as Regional Managing Director, Ben will focus on implementing new strategies for the region, supporting the land acquisition strategy and driving growth in key areas to deliver quality new homes for local people, regenerate disused and abandoned brownfield land and create affordable housing options. With a wealth of experience within the sector, Ben most recently worked as Managing Director at Spitfire. He brings more than 20 years’ industry experience to the role with extensive knowledge of growing and scaling business operations, securing land and building partnerships. Commenting on his appointment, Ben said: “I am thrilled to have been appointed by such a well-established, national homebuilder. Over the past few years the West Midlands and South West has seen significant successes and has grown to become one of Keepmoat’s flagship regions. I have a strong track record sourcing and securing new land opportunities and I look forward to bringing my expertise from previous roles as both Land Director and Managing Director. “Keepmoat’s vision is to build communities and transform lives, and its sustainability activity contributes towards the delivery of this ambition. I strive towards achieving the company’s goal of improving the quality of new homes and creating communities that leave a lasting legacy for future generations.” Keepmoat West Midlands and South West has multiple live developments operating from Birmingham down to Bristol. Flagship partnerships are ongoing with Homes England, North Somerset Council, and local housing associations. Charlotte Goode, Divisional Chair at Keepmoat, added: “I’m really pleased that Ben has joined the team and I look forward to working with him to further strengthen our land pipeline and support the growth of our business. “Our West Midlands and South West team is currently delivering across five operational sites and has completed 240 new homes in the last year. We specialise in developing brownfield land and we are committed to building 4,000 future homes with net carbon zero emissions – namely on our Winterstoke Gate development in Weston-super-Mare. I’m excited to see Ben push forward our goal to regenerate areas through our partnership model and drive relationships with landowners to create thriving, sustainable communities.” To find out more about Keepmoat, please visit: www.keepmoat.com Building, Design & Construction Magazine | The Choice of Industry Professionals
The Sheffield Property Association (S-PA), a dynamic group of businesses dedicated to enhancing Sheffield’s built environment, announces an exciting opportunity for an individual to become the organisation’s next chair. Since its inception in 2017, the S-PA has driven investment, opportunity, and prosperity, transforming Sheffield into a vibrant place for everyone who lives, works, and socialises in the city. Their core mission focuses on supporting, celebrating, and promoting Sheffield, strengthening the city’s communities through continuous collaboration with land-owning and development businesses. The new chair will lead the board through its next phase of growth and development, building networks and partnerships for the directors, Priority Groups and S-PA members. As a key ambassador for the S-PA, the individual must be a strong communicator and have a talent for discovering projects and initiatives at local, regional, and national levels. The S-PA has already brought together over 80 companies in the Sheffield region as part of their membership. Everyone involved shares a vision to improve Sheffield’s built environment, drive investment and prosperity, build strong relationships with stakeholders and partners, and inspire young people about career opportunities in the city. Tim Bottrill, director of the Sheffield Property Association, said: “It’s wonderful to see all that we have accomplished so far at the Sheffield Property Association, particularly our events that unite our members to celebrate and discuss the work we are doing. “Our outgoing chair, Martin McKervey, has been exceptional in his role and has served as the board’s central point of contact for official communication with us and the Priority Groups. “We look forward to welcoming our next chair to continue this dedication, as they will play an important role in leading our board meetings, encouraging all members to continue their participation and support our vision, as well as championing the S-PA across a diverse stakeholder group.” This voluntary role requires one to two days of commitment per month for a term of three years, with the option to stay on for a further three years and is open to all interested parties. For the full job description or to express your interest, please contact info@sheffieldpropertyassociation.com. Deadline for applications is September 13 2024.
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Glenigan, one of the construction industry’s leading insight experts, releases the August 2024 edition of its Construction Index. The Index focuses on three months ending to July 2024, covering all underlying projects, with a total value of £100m or less (unless otherwise indicated, with all findings seasonally adjusted). It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months. August’s Index reveals that recent changes in the political landscape have had a modestly positive effect on sector performance. Whilst starts on site were still 11% down on 2023 figures, there has been a slight increase of 2% in the three months to the end of July 2024. The first industrywide lift in many months, this reversal of fortune for a sector battered by strong economic headwinds over the past few years can largely be attributed to a growth spurt in private housebuilding. There was also strong regional growth with a near-unprecedented number recording growth in the Index period, including East Midlands, South West, Wales, Northern Ireland, London, Yorkshire & the Humber and Scotland. It’s a strong indication of sector resurgence in the coming year, as indicated in Glenigan’s latest Forecast (June 2024). As Allan Wilen, Glenigan’s Economic Director says, “The industry should be buoyed by these results, a clear sign confidence is starting to return to the market. This is evidenced by the spike in private housing starts, a longstanding barometer of investor conviction and consumer appetite. Developers will no doubt see plenty of opportunity as this vertical continues to thaw over the next six months, hopefully having a positive, knock-on effect for other, associated built environment assets. “Social housing and non-residential sectors have remained relatively subdued, yet this is unsurprising. After all, the timing of planned projects has been disrupted by the general election and the new Government’s commencement of a wide-sweeping review of programmes. For example, the uptick in Civils should be taken as short-lived, especially in light of this week’s announcement to pause and scale back road and rail projects. Taking a closer look at the sector verticals and regional outlook… Sector Analysis – Residential Residential construction experienced a particularly healthy period, despite start performance finishing 17% lower than a year ago, it rose 12% during the three months to July 2024. This overall boost was attributed to a spike in private housing starts, which rose by 25% following a weak start to the year as developers’ sentiment toward the prospects for the housing market improved. Despite the upturn, starts were still 12% lower than a year ago. Social housing work starting on site remained depressed, dropping by 23% against the preceding three months and being 32% down against the previous year. Sector Analysis – Non-Residential Non-residential performance was sluggish, with a few bright spots here and there. Education starts held firm, with the value of underlying project starts slipping a mere 1% against the preceding three months but standing an impressive 24% up on 2023 levels. Hotel & Leisure increased 10% against the preceding three months and were 18% up against the previous year, with various schemes contributing to the increase. Retail starts slipped 2% against the preceding three months but stood 8% up against the previous year. Civils work starting on-site rose 9% against the preceding three months and was 14% up against the a year ago. This was boosted by a rebound in infrastructure starts which rose by 21% against the preceding three months and by 45% on a year ago. Tamping down these fires of growth, utility starts decreased 8% against the preceding three months to stand 16% down against the previous year. Elsewhere it was decline across the board. Industrial project starts experienced a poor period, with the value of starts decreasing 10% during the three months to July and were 34% lower than a year ago. Health starts have continued to weaken, decreasing 30% against the preceding three months and by 39% on the previous year. Office starts also performed poorly, decreasing 8% against the preceding three months to stand 9% down on the previous year. Community & Amenity also weakened, decreasing 44% against the preceding three months and standing 8% down on the previous year. Regional Outlook Refreshingly, regional performance was generally impressive, taking in the context of previous editions of the Index. Paragons of consistently good performance, the value of starts in Yorkshire and the Humber and Scotland rose by 10% and 4% during the three months to July and was 5% and 4% up respectively on a year earlier. Other strong performers included the East Midlands, which experienced a 33% rise in starts against the preceding three months but was still 11% lower than a year ago. The South West, Wales and Northern Ireland also experienced double-digit growth of 16%, 10% and 39% respectively against the preceding three months, but the value of starts remained down from a year ago. London experienced a 9% rise against the preceding three months but was 20% down against the previous year. By contrast starts in the East of England, the North East and the North West declined by 7%, 23% and 10% respectively against the previous three months. To find out more about Glenigan and its construction intelligence services click here. Building, Design & Construction Magazine | The Choice of Industry Professionals
By Matt Clark, Managing Director, Cardium Law As a legal firm specialising in the construction sector, we are seeing an alarming rise in insolvencies and statutory demands linked to unpaid loans, breaches of facility agreements, personal guarantees, unpaid invoices and adjudications. This trend is not merely a reflection of current economic challenges but is also deeply intertwined with the lingering effects of the pandemic and the fallout from other global events. Bad reverberations Aftershocks from the Covid-19 pandemic have continued to ripple through the construction industry. Many businesses that managed to survive the initial lockdown and subsequent disruptions are now finding it difficult to stay afloat in the face of higher finance costs, labour costs, and the cost of construction materials. One poignant example are developers that used bridging loans to fund planning and acquire development land only to find that the rising construction and finance costs make the development unviable. Such developers are left with costly loans that are unaffordable and land that is undevelopable. Another is a client which operated a leisure centre and managed to sustain it through the pandemic’s peak, only to succumb to recent insolvency. To make matters worse, the industry is also seeing a surge in fraud involving misuse of loan funds and unmeritorious pre-action protocol claims targeting vulnerable individuals or businesses designed to destroy either creditworthiness or business reputation. This case underscores a broader trend. Many businesses are still grappling with the delayed financial repercussions of the pandemic three years later, as they struggle to survive in a tough market, weighed down by strains on profits and cashflow from the original Covid outbreak. Economic pressures Current economic conditions have exacerbated the struggles of the construction sector. High inflation rates have driven up costs for materials, labour and equipment. This surge in expenses is straining the budgets of construction projects across the board, from small-scale developments to large infrastructure projects. A recent CHAS report highlighted how these economic pressures have led to a significant downturn in the housing sector, particularly in new private housing work. This not only affects construction companies but also reverberates through the supply chain, impacting suppliers, contractors and ultimately clients. The construction industry is now at a critical juncture, trying to balance escalating costs while maintaining profitability. These financial strains are contributing to an increase in legal disputes, as companies find themselves unable to honour contracts and pay for services rendered. Labour shortages The financial pressures on the construction industry are exacerbated by significant labour shortages and a widening skills gap. This issue has been intensified by Brexit, which has reduced the availability of skilled workers from the EU, and an ageing workforce, which is leading to higher retirement rates. Government efforts to address these shortages include adding construction occupations to the Shortage Occupation List and increasing investments in apprenticeships and training programmes. The effectiveness of these measures remains to be fully seen. The lack of skilled labour not only drives up wages but also delays project timelines, adding another layer of financial strain to already overburdened companies. As projects become more costly and prolonged, the risk of insolvency increases, further contributing to the rising caseload of legal disputes. Rising caseload Our firm has seen a marked increase in the number of insolvencies and statutory demands related to unpaid loans, breaches of facility agreements, personal guarantees, unpaid invoices, and adjudications. Professional failures have also contributed to, or caused, failed developments. Businesses across the construction sector are facing cashflow challenges, making it difficult to meet their financial obligations. This situation often leads to the appointment of administrators or LPA Receivers shifting control over assets to lenders and, all too often, insolvency proceedings. Insolvencies in the construction sector not only affect the companies directly involved but also have a cascading effect on the wider economy. Subcontractors suppliers, and employees all feel the impact of a company’s financial distress, leading to further legal disputes and economic instability. Looking ahead As we navigate these troubled waters, we remain committed to supporting our clients through legal challenges arising from the current economic climate. We offer expert guidance on managing insolvencies, negotiating settlements, defeating unmeritorious claims, and reinstating assets where there have been professional failures. Our goal is to help clients navigate the legal complexities of the construction sector, ensuring they can focus on sustaining, protecting, and growing their businesses. The construction industry is undoubtedly facing significant challenges, but with the right legal support and strategic planning, companies can overcome these hurdles. Building, Design & Construction Magazine | The Choice of Industry Professionals