The Week That Was – 14 June 2024

Welcome to the week that was, a round-up of key events in the construction sector over the last seven days.

Upcoming election prompts construction's blueprint for growth

As the upcoming UK general election looms, a group of tier one infrastructure and construction firms, including Balfour Beatty, Laing O'Rourke and AtkinRéalis, have set out 12 key recommendations for the next government. 

One of the recommendations set out in the 'Blueprint for Growth' calls for the creation of a Cabinet minister responsible for infrastructure.  Other measures proposed include transforming the apprenticeship levy, simplifying the judicial review process for major planning decisions and increasing flexibility in the immigration system. 

The recommendations are aimed at boosting the UK's growth and productivity, and represent a collective commitment from the UK's infrastructure and construction industries to collaborate with policymakers, industry stakeholders and government agencies.

To read the full 'Blueprint for Growth', click here.

Directors' code of conduct unveiled by the Institute of Directors following Carillion 'shortcomings'

Following several high-profile corporate scandals, including the collapse of Carillion due to mismanagement and dubious accounting practices, the Institute of Directors has produced a code of conduct aimed at rebuilding the reputation of business and encouraging ethical practices in the boardroom.

The code is currently out for consultation and is not designed to be an additional layer of compliance but instead a voluntary commitment by business leaders. 

The code of practice, developed by a commission led by Lord McNicol of West Kilbride, includes principles such as communicating openly and honestly, acting with honesty and integrity and taking personal responsibility for actions.  Lord McNicol said that the code would provide a valuable reference for directors to consider, "What would a responsible director do in this situation?"

Click here to read more. 

Labour pitch mortgage guarantee for first-time buyers 

Labour and the Conservatives are vying to support future homeowners ahead of the general election on 4 July 2024.  

Labour have announced a government mortgage guarantee scheme which is intended to get 80,000 young people onto the property ladder.  Labour's scheme will be called "Freedom to Buy" and is based on a Conservative scheme, which is currently set to expire in July 2025.  Under the scheme, the government acts as a guarantor for part of the mortgage, which encourages lenders to offer lower-deposit deals.  Since its launch in April 2021, the existing scheme has benefitted 43,000 purchasers, of which 37,000 were first-time buyers.  

According to CBRE, the average deposit for a first-time buyer in England is now £68,700, with half of young first-time buyers receiving financial support from family.  The permanent continuation of this scheme is intended to help make ownership a possibility for young people.

You can read more here.

Construction failures rise again after short-lived dip

Despite an increase in construction administrations in the last month, experts predict client confidence could improve conditions in the near future.
According to Creditsafe, 23 construction firms went into administration in May, bringing the total number of failed construction firms this year to 115, which is down from 154 by the same time last year.

The two largest companies to go under were subsidiaries of Osborne, with parent company Geoffrey Osborne Ltd entering administration in late April.
Companies are attributing these losses to factors such as inflation, COVID-19 and the war in Ukraine.

Factors such as the recent reduction in inflation and the potential for reduced interest rates, as well as an improving contractor insurance market, suggest improvements can be expected in the near future.  Chris Smith, Head of Aldermore Bank, agrees that the industry has recovered from recent lows and that “hope is on the horizon” despite ongoing supply chain issues, labour shortages and tighter access to credit.

You can read more here.

Major changes to the Building Safety Act: What to look out for

In the wake of the Grenfell Tower tragedy, the Building Safety Act 2022 was introduced to impose a more scrupulous administration for the planning, design, construction and operation of buildings. 

The Act will also see the introduction of registered building control approvers and registered building inspectors, who will provide advice to those overseeing building work.  All building control approvers and inspectors now need to be registered, with a code of conduct and defined registration criteria established by BSR.

A competence assessment extension period of 13 weeks was introduced from 6 April to 6 July 2024 to enable those who meet specific criteria to continue to operate.  The extension was implemented to avoid the industry grinding to a halt, particularly due to the lack of inspectors with the necessary skills and qualifications to meet the requirements of the Act for anyone performing the role of Building Control sign-off.  As from next month, the competence of anyone who undertake building work will be rigidly assessed and new statutory roles for designers and contractors on all projects will apply to all building work, impacting any project that requires building regulations approval.

You can read more here.

Competition for transformation of Piccadilly Circus launches this month

Westminster Council and the Crown Estate will shortly be launching a competition for a tender worth £1.7 million, for the transformation of London's West End.  The partners are looking for a multi-disciplinary practice to design a "landmark city-shaping scheme" across Piccadilly Circus, Regent Street and Haymarket. 

The competition will be looking for urban designers with experience in high-profile urban spaces to meet a brief which includes incorporating nature and creativity into a flexible space that can be adapted to meet future needs. 

The call for proposals will be an open tender process with a deadline of midday on 2 August 2024 and a full contract notice is expected to be published in early September. 

You can read more here.