Construction output fall slows in August

Construction’s ongoing supply chain issues saw output slip for the fifth-month running in August holding new work levels 3.7% below the pre-pandemic watermark in February 2020.

The small 0.2% fall in August was down to contraction of the refurbishment and maintenance sector with new work remaining flat at the same level as July.

Government economists at the ONS said anecdotal evidence suggested supply chain issues were a key factor behind falling GDP.

Many firms said that order books were healthy but the availability of products was impacting on projects currently underway.

Mark Robinson, group chief executive at SCAPE, one of the UK’s leading public sector procurement authorities, said: “A decline in output highlights a telling loss of momentum across the construction industry, as energy costs, labour shortages and fast-rising material prices continue to paint a concerning picture heading into winter.

“With attention turning to this month’s Budget and Spending Review, the industry will be considering how best to mitigate these challenges when it is handed the baton to deliver more of the community-focused regeneration needed to deliver on the government’s ‘Levelling-Up’ ambitions.”

Mark Markey, Managing Director of civils contractor Akela Group, said: “It is disappointing that the monthly output has fallen, however this is not reflective of what we are experiencing at Akela Group.

“Instead, we are seeing growing levels of demand for a wide range of ground engineering and civil engineering services, and in fact this appetite has been a key driver in our recent expansion into the English market.

“Our new North of England hub in Leeds is well placed to meet this growing demand, especially in the house building sector.”

According to the three-month trend figures infrastructure, industrial and public housing repair and maintenance were the three main sectors to see continied growth.

Latest figures for building materials for all work in August increased by 2.8% compared with July and 23.5% compared with a year ago.

Specific construction materials with the greatest annual price increase in August were imported plywood (78.4%), fabricated structural steel (74.8%), and imported sawn or planed wood (74.0%).

Did you miss our previous article…
https://www.thegraduatemag.com/?p=792

Labourers left exposed to asbestos during shop refurb

A Bradford contractor  has been fined for safety breaches after labourers were exposed to asbestos after removing false ceiling tiles during a shop conversion in Hull.

Beverley Magistrates’ Court heard that the company had not commissioned a refurbishment asbestos survey prior to the work commencing.

Employees removed over 1000 m2 of asbestos insulation board ceiling tiles in an uncontrolled manner, exposing them to asbestos.

An investigation by the HSE found that the company’s director, and the casual labourers they employed, spent approximately three to four weeks removing the suspended ceiling, along with the ceiling tiles which contained asbestos, to install new stud walls to divide the shop floor into separate units.

The labourers were unskilled and untrained. They were provided with a claw hammer to knock the tiles down. The asbestos-containing tile debris was then shovelled or collected into approximately 62 one tonne bags.

MS Properties (Northern) Limited of Bradford, pleaded guilty to breaching asbestos regulation and was fined £16,000 ordered to pay £3,011.87 in costs and a victim surcharge of £190.

After the hearing, HSE inspector Trisha Elvy said” If the company had identified any asbestos on the site through a refurbishment asbestos survey, carried out by a competent surveyor, and had it removed by licenced asbestos removal contractors prior to the refurbishment work commencing, then MS Properties (Northern) employees would not have been exposed to asbestos.

“No matter how small or large your company, there is a need to prevent exposing your employees and the public to asbestos by ensuring that it is identified on site prior to any work commencing.”

Did you miss our previous article…
https://www.thegraduatemag.com/?p=788

Bolton splits with £1bn city regeneration plan developers

Bolton Council has parted ways with the developers behind its ambitious £1bn town centre regeneration plans.

Developer Bolton Regeneration  – a partnership between Chinese firm Beijing Construction Engineering Group International (BCEGI) and regeneration specialists Granite Turner – have agreed with the council to rip up the agreement.

A key part of the plan, the £250m redevelopment of Bolton’s Crompton Place Shopping Centre was due to start this year.

Now the council will have to find a new developer to take forward this project as well as its other planned Trinity Gateway and Le Mans Crescent projects due to be developed by Granite Turner.

The council said that as circumstances have changed over the last 18 months, a mutual agreement was reached with partners BCEGI and Granite Turner to surrender their options agreements on the projects.

Bolton Council leader, Coun Martyn Cox, said: “Although re-procuring development partners will extend the development process, removing all option agreements gives us a much better chance of securing a levelling up fund grant from government.

“The work already undertaken in relation to these projects means the new developers will start from a more advanced stage than would normally be the case and will therefore be in a position to start construction as soon as possible.”

The council said it hoped to have a new development partner in place before the end of the year.

 

Did you miss our previous article…
https://www.thegraduatemag.com/?p=782