Loans Made Available for Offsite and Modular Construction

Atelier has launched a lending framework to finance residential property developments built with offsite and modular construction techniques, in a bid to address the funding challenges SME developers face with these schemes.

Loans ranging from £5m to £40m, at up to 70% LTGDV, will be made available to SME developers and intermediaries.

The move aims to address the challenges that smaller enterprises face in financing these projects.

The launch comes after the lender completed an industry-wide consultation with the modular and offsite manufacturing community, including real estate professionals and trade bodies such as the National House Building Council (NHBC) and Buildoffsite Property Assurance Scheme (BOPAS).

The business has also created a simple guide for SME developers and intermediaries, providing lending and eligibility criteria where offsite and modular technology is used.

The framework will run alongside the company’s Carbonlite Challenge — the sustainable finance pilot it created to incentivise developers to build greener homes.

Chris Gardner, joint CEO at Atelier (pictured above), commented:

“Everyone agrees offsite construction technology has the potential to transform residential property development.

“But it’s time for that potential to be turned into reality, and that’s why we are determined to help developers build more homes this way.

“We’ve collaborated across the construction industry, incorporating the expertise of more than 30 leaders in offsite technology to give developers, intermediaries and contractors a clear and practical guide to the opportunities and challenges that these new ways of building offer.

“Above all, we’re working to be the lender of choice for developers who decide offsite is right for them.”

 

Chris Hall, innovation services manager at NHBC, added:

“The potential benefits of offsite construction are clear — consistent build quality, reduced costs and time on site, and strong sustainability credentials.

“More developers are considering these modern methods of construction, and that’s why Atelier’s lending framework is so timely.”

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Construction Failing to Recruit Young Talent

‘A staggering 98% of young women said they wouldn’t choose a career in construction’

The construction industry has been suffering from a skills shortage for some time.

This was worsened by the impact of Brexit, which saw the number of people from Europe working in the sector shrink significantly. A lack of awareness of opportunities amongst young people and those that advise them has also hindered construction businesses’ efforts to recruit the young talent needed to fill the skills gap.

Recent research from economic modeller Lightcast estimated that the industry will need to fill a staggering 250,000 job vacancies between 2022-2027. If these vacancies are not filled, the construction sector is unlikely to be able to reach its full potential. So, what is going on?

Construction work is failing to appeal to younger people

At City & Guilds, the recent “Youth Misspent” research found that only 6% of 18-24-year-olds identified the construction sector as somewhere they would like to work. A staggering 98% of young women said they wouldn’t choose a career in construction.

The main reasons respondents gave were that they lacked the right skills (34%), that they were dissuaded by manual work (35%), and that they felt they lacked the right knowledge about the careers available within the construction sector (28%).

The findings reveal a systemic issue with supplying the construction talent pipeline, particularly from young people. But all is not lost – here are three steps that industry could take to address the challenge and fill the critical skills shortages.

1. Engage with young people via the skills system to provide better opportunities and progression

Apprenticeships, skills bootcamps and T-levels are three initiatives already on offer for employers to help recruit and train young talent, but they are underused. More employers need to invest their time and resources in engaging with these programmes to help foster a new generation of skilled workers.

Closer collaboration between employers, government and learning providers will help to ensure that qualifications and training programmes are refined to meet the needs of the construction sector and provide a long-term solution to skills shortages.

2. Provide more work experience, paid internships or training opportunities, and work with education providers to raise awareness of careers on offer

Work experience is often a core part of the Year 11 curriculum. Approaching schools to offer week-long work experience placements within a construction company will increase accessibility and encourage young people to consider what a career in construction would be like. Additionally, T-levels require substantial work placements that are essential to the course, but many colleges report difficulty in finding enough businesses willing and able to offer them.

These experiences can span the wealth of roles in construction that young people are unlikely to know even exist, from manufacturing to marketing. What they imagine a career is like is often different to its day-to-day reality and experiencing a role first-hand can demystify ideas about the sector and spark an unexpected interest.

By engaging with local schools, colleges and learning centres, employers in the construction sector can influence young people to consider such careers early on in their education. Research has shown that many young people will have made firm decisions about their future from early secondary school age, so it’s essential that employers engage with schools early on to ensure that young people can make informed decisions about their future.

3. Make it easier for young people, especially the most disadvantaged, to access jobs and progress in their careers

Young people without work experience are likely to be unfamiliar with job application processes and can find them intimidating. They may even avoid applying for roles that they are a good fit for, as they might feel they don’t meet the criteria because of that lack of experience.

By widening the application process to focus on attitude and aptitude, young people will feel more empowered to apply for roles and become more comfortable with the idea of learning on the job. This way, they can focus on what personality traits make them a good fit, rather than the construction-specific skills that they cannot be expected to have at such an early stage in life.

Prioritising a good attitude and an appetite for learning in the recruitment process will foster a better view of the construction industry as a place of lifelong learning and promote a healthier workforce that is more accessible for young people.

Employers should also consider where and how roles are advertised, exploring new opportunities to reach underrepresented groups through different kinds of media and engaging directly with those communities. By making it clear that opportunities are open to all through the language used in job adverts, people from underrepresented groups can be encouraged to consider roles they might otherwise dismiss.

Source: The Institute of Mechanical Engineers

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THE RISKS OF THE DIGITAL AGE

Digital processes are transforming construction and introducing new risk considerations. The question is, how should these risks be handled?

As the digital age gains momentum, technology is at the forefront of CEOs’ minds. Indeed, Marsh’s Head of Climate & Sustainability Strategy, Amy Barnes, recently wrote about The risks and rewards of frontier technology.

In 2016, the Farmer Review warned the UK construction industry it would have to “modernise or die”. The 80-page report, written by industry veteran Mark Farmer and commissioned by the UK Government, noted that research and development within the industry was almost non-existent, productivity was low, and cost inflation high. This situation was mirrored in many countries around the world.

In order to modernise and move into the 21st century, the industry has accelerated its uptake of new technologies, including robotics, machine learning and automated planning decisions through digital design. Onsite, hard-hat sensors and driverless vehicles are coming into use, while digital aids such as artificial intelligence (AI), and building information modelling (BIM) are used throughout the duration of a project.

Top tech risks for construction companies

The adoption of new technology can create a wealth of opportunities for construction companies, including improvements in management, information, speed, accuracy, accountability, costs and reduced risk, but it can also bring new risk.

Cyber Risk

New technology often has a cyber element and one of the biggest risks is cyber breaches. It’s estimated that cybercrime costs the UK industry £27 billion a year. Construction output in the UK is more than £110 billion per annum and contributes 7% of GDP, making it a very attractive, wealthy industry to target. As relatively new adoptees to sophisticated technology, construction companies risk leaving themselves at the mercy of a wide range of players, from nefarious state actors intent on disruption or wishing to steal information, to hackers who want to profit by the placement of ransomware and siegeware. Understanding vulnerabilities and installing and maintaining cyber risk protection is imperative.

 

New technologies being considered by construction companies

 BIM

Projects procured by the UK Government now require the use of BIM, which offers a central point of building reference in a 3D digital model. BIM software creates a collaborative design and build process that visualises the physical and functional aspects of a building. BIM enables real-time collaboration on a single platform, and is important to contractors of large projects, for both a visual and quantitative model of the build. It is also useful for materials ordering and scheduling. Taking BIM a step further is the digital twin, which creates a digital replica of a finished, functional building.

How to deal with construction technology risks

For companies looking to adopt new technology, risk management is key. Contractors, owners, and developers should work with trusted advisers to ensure all adequate protocols have been adopted in order to identify, analyse, evaluate, and address cyber security threats. This could include outside organisations that are commissioned to discover weaknesses in cyber security systems. These companies engage in activities such as penetration testing designed to find vulnerabilities in a system before an attacker does. It simulates real-world attacks so companies can identify and fix weaknesses before they’re exploited.

Companies also need to speak to their construction broker to review how it will affect risk allocation and insurance, and ensure the risks are covered under their construction insurance policies.

How to gain optimum insurance terms

The construction insurance market has gone through a transition, moving from a market that experienced stable or declining pricing for over a decade, to one in which prices have been rising — though there has been some moderation from 2021. Underwriters will continue to scrutinise each project in detail as the market remains challenging, seeking detailed risk information for in-depth review.

This is why it is important to engage early with a broker who has expertise in both construction and in wider specialties, including cyber risks, and has the capabilities to respond to the challenging economic and business risks faced by contractors, developers, and owners. With their specific technical and market knowledge, and close relationships with underwriters, experienced brokers are able to expertly navigate periods of tightening insurance markets. Early engagement will ensure the contractual structure reflects the optimal insurance programme design and enable sufficient time to negotiate terms.

 

Source: Marsh

 

 

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New report highlights how home building ban could be lifted

River pollution crisis; New report highlights how home building ban could be lifted

Calls to prevent SME builders suffering for water company and farming failures

 

With pressure growing on water companies and farmers to address high nutrient levels in rivers, a new Lichfields report published by the Home Builders Federation (HBF) identifies solutions to Natural England’s disproportionate ban on building new homes.

Ineffective action taken to address the nutrients issue has resulted in a quarter of local authority areas in England now having a moratorium on the construction of new homes, leaving over 120,000 homes on hold.

As this week’s episode of BBC’s Countryfile demonstrated, agricultural run-off and the failure of water companies to upgrade infrastructure to cope with the growing population resulting in the dumping of raw sewage into rivers, are the root causes of the nutrients issue. The contribution of all housing stock is estimated to be less than 5%, so adding 120,000 homes to England’s stock of 25 million dwellings would lead to a negligible increase.

Despite this, Natural England’s solution has been to use a little-known EU rule to ban the construction of desperately needed new homes on the basis that a single new property could increase the amount of waste water generated.

Natural England’s disproportionate ruling fails to address the heart of the issue and account for the increased water-efficiency of modern new builds compared with older housing stock.

The report published by HBF identifies improvements to Natural England’s nutrient calculator so it more accurately reflects the impact of new residential development, therefore releasing some homes currently blocked from being built.

According to Natural England’s calculator, the land-take requirements associated with achieving nutrient neutrality through nature-based solutions is considerable. The report’s recommendations would allow for some housebuilding to resume. It would also reduce the amount of farmland that would otherwise need to be taken out of food-production to make way for nature-based solutions.

The report’s publication coincides with the UN Water Conference. It identifies two important areas for change:

 

  1. Adjusting Natural England’s calculator to reflect the net additional population that will result from the delivery of new housing – rather than a continued focus on the gross population of the new dwellings – based on an application of the net additional average household size; and

 

  1. assessing the number of dwellings that are to be delivered before 2030 rather than a requirement to mitigate a development in its entirety, regardless of when the houses will be delivered. This would enable larger schemes with longer build-out timetables to benefit from the planned statutory improvements to wastewater treatment works which it is hoped will take effect in 2030.

 

Natural England’s current ban on home building is having an increasingly detrimental social impact, deepening the housing crisis we face. With the home building industry being a major employer and driver of economic activity, the ban is also damaging local economies and posing a major threat to many businesses, especially SME builders.

While the most sensible solution would be to lift the unnecessary moratorium immediately and focus on tackling the major polluters, so long as the government insists on nutrient neutrality it must explore short-term solutions to alleviate the burden and release some of the homes delayed.

As part of this year’s Budget, government announced a requirement for water companies to upgrade their infrastructure by 2030. While HBF welcomes this measure, it fails to address the urgency of the issue and provides no immediate relief to the risk that many small house building companies will go out of business well before the measure takes effect in 2030.

 

Stewart Baseley, Executive Chairman of the HBF said;

“It is widely accepted that the ban on new housing is disproportionate and unnecessary and does nothing to tackle the main causes of the nutrients issue. The new report identifies more balanced and speedier solutions that would help to alleviate this socially and economically damaging ban.”

 

If the recommended improvements are made, it will become more feasible for some medium and larger sized housing developments to achieve nutrient neutrality before 2030 when the Government’s proposed measure to improve the performance of wastewater treatment works is hoped to come into effect.

However, government will still need to consider a package of measures to assist SMEs who have neither the cash reserves to procure nature-based solutions nor will benefit from the Government’s proposed improvements to wastewater treatment works or Natural England’s nutrient mitigation scheme.

The proposals in the report were raised at a roundtable HBF convened with government and Natural England in February. The industry is now calling on the government to support the proposed amendments.

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Equinix uncovers first-of-its-kind rooftop urban farm atop Parisian data centre

 

Reid Brewin Architects (RBA) has announced the completion of a ground-breaking project that uses waste energy from data centres to power a rooftop ‘urban farm’ on the outskirts of Paris.

RBA’s design for the Equinix PA10 data centre, located in Saint Denis, is the first of its kind in France. Central to the client’s sustainability commitment was the desire to reuse waste heat from the data centre, and to create a usable area that would promote health and wellbeing. 

The project comprises a 430m2 greenhouse surrounded by a further 570m2 of green space, with the rooftop structures powered using a heat recovery system with heat exchangers linked to the data centre’s water cooling system.

Each greenhouse is fitted with sensors to monitor humidity as well as internal and external temperatures – which can trigger heaters in cooler weather. Together with sunshades, automated irrigation, and ventilation systems, they deliver a controlled climate year-round within the greenhouses. 

The development means seasonal fruit and vegetables can be cultivated using a hydroponic system, in a bid to maximise space efficiency and minimise water usage, while the gardens are planted with vegetation chosen specifically to maximise the amount of rainwater consumption, while supporting the local insects and wildlife, with the installation of insect hotels.

All rooftop garden space is wheelchair accessible, and provides natural shade, cooling, and relaxation areas. Visitors and staff are invited to share the food grown on site, and to make the most of the dedicated seating and catering areas.

“It is of increasing importance that we increase our actions and mitigate the environmental impact of an increasingly digital world,” explained John Hutchinson, director at RBA.

“We’re extremely proud to support our clients with this shared goal, and PA10 heralds the start of an exciting new era, enabling us to apply learnings from this project across other projects. Sustainability and safeguarding the environment are at the heart of everything we do, and this opportunity has already inspired further initiatives across our client base.”

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Construction Giant Snaps up Innovaré

Belper-based construction heavyweight Bowmer + Kirkland has snapped up structural insulated panel manufacturer Innovaré Systems.

Innovaré, of Coventry, was part of the Osborne Construction Group. It develops “new materials, technologies and methods” for use in offsite building projects.

The company reported a turnover of £11.6m in its last available accounts.

Osborne Group chairman Andrew Osborne said the deal would

“ensure [Osborne’s] core business can be successful in the years ahead.”

“Everyone at Osborne is proud of Innovaré’s growth to date and I know the company will continue to thrive under its new ownership”, he added.

The deal follows a pair of lucrative Framework successes for Bowmer + Kirkland. The Derbyshire firm was awarded a place on the £10bn Crown Commercial Services Offsite Framework last month and revealed it had been appointed to the prestigious Ministry of Justice Constructor Services Framework earlier this week.

 

Financial details of the transaction have not been disclosed.

 

Source: The Business Desk

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GROUND-BREAKING DEVELOPMENT RECEIVES FIRST FACTORY-BUILT HOMES

The first factory-built homes at a housing association’s ground-breaking development in Gloucestershire have been craned into place.

Bromford is building 28 new homes at Stockwells in Moreton-in-Marsh, all of which are being built in sections by leading modular housebuilder ilke Homes. Now the first modules have been transported from ilke’s Yorkshire factory to Gloucestershire and representatives from Bromford, ilke Homes and Cotswold District Council were in attendance to watch them arrive and be craned into place. A total of 10 homes have been delivered to the site so far, with the remaining 18 due to arrive in the month ahead.

Millie Nicholls, regeneration project manager at Bromford said:

“It’s been so exciting to see the first of these modular homes being lowered into place here in Moreton-in-Marsh.

“With high energy prices continuing to fuel the cost-of-living crisis, it’s never been more important to build energy efficient affordable housing. Not only will customers benefit from living in A-rated homes which require less energy to run, it is another step for us to making sure all of our homes have at least a C Energy Performance Certificate rating by 2028.

“This is the first development of its kind for us in the Cotswolds and our first project with ilke Homes. We can’t wait to see the rest of the homes arrive on site in the weeks ahead so we can put the finishing touches to them and make them ready for customers to move in. We hope to work with them on further sites in the next few years to deliver more affordable, energy efficient homes for our customers.”

Tom Heathcote, executive director of development at ilke Homes, added:

“This site milestone demonstrates offsite manufacturing’s ability to speed up the delivery of highly energy-efficient, affordable homes,

“ilke Homes is increasingly becoming a partner of choice for housing associations looking to scale up the delivery of much-needed housing. Much like many councils and housing associations across the country, Bromford and Cotswold District Council understand the role modular housing has to play in enhancing the build quality of homes and their ability to speed up construction programmes.

“We look forward to working closely with all delivery partners to bring this scheme forward.”

Thanks to £550,000 of funding from Cotswold District Council, the finished homes will also boast additional sustainable features such as solar panels, battery storage and air source heat pumps, making them some of the most energy efficient homes in the country.

Leader of Cotswold District Council, Cllr Joe Harris, said:

“It was great to watch this development take shape. This is an innovative zero-carbon housing scheme and the first modular build of its kind anywhere in the Cotswolds.

“Our housing teams have worked incredibly hard to build a strong relationship with Bromford and I would like to thank them for all their efforts in bringing about this fantastic scheme for the Cotswolds.

“This is the standard we expect of affordable housing here in the Cotswolds. Not only do we want housing to be zero carbon, we want it to be genuinely affordable. This development is set to make Stockwells of the best parts of Moreton and we’re confident these exemplar modern homes will do just that.”

The new homes Bromford is building at Stockwells replace a street of 24 non-traditional properties that had been built as a quick-build solution to the housing shortage in the 1950s. But over the years their condition had deteriorated and they were experiencing issues with damp and draughts. The former properties were demolished in the summer of 2022 and the groundwork prepared for the arrival of the new homes. The finished two- and three- bedroom homes will all be available at social rents to let when completed later this year.

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First Step towards Using Fossil-Free Steel

Swegon takes its first step towards using fossil-free steel

This week, Swegon presented its first product made from carbon dioxide-reduced steel – a GOLD RX – at the ISH trade fair in Frankfurt. The manufacture of steel consumes large amounts of both resources and energy. As ventilation units are primarily made of steel, there is considerable potential to reduce the carbon footprint of embodied carbon in production, by replacing traditional steel with steel that has a lower climate footprint.

In January, the first delivery of XCarb® RRP (recycled and renewably produced) Magnelis from thesteel manufacturer ArcelorMittal was received at Swegon’s Kvänum factory, where the companymanufactures ventilation units. According to ArcelorMittal, XCarb® RRP Magnelis has anapproximately 70% lower CO2 footprint than traditionally manufactured steel. XCarb® RRP ismainly produced from recycled steel and uses 100% renewable energy in the manufacturing process.

The first concept air handling unit has now been produced, and the plan is to gradually introducecarbon dioxide-reduced steel into ongoing production, starting during the second quarter of this year.

“We are delighted to now be phasing in carbon dioxide-reduced steel in our large ventilation units.We all have to contribute and reduce our climate footprint, and this transition is enabling us toreduce not only our own, but also our customers’ footprint,” says Robert Siverby, Supply ChainDirector at Swegon Group.

Swegon has, for a long time, focused on sustainability and on reducing the climate footprint in theproduction as well as the use phase of its products. Swegon was among the first in the industry todevelop EPDs (Environmental Product Declaration) for its products, and has a significant amount ofEPDs in its portfolio.

Based on the existing EPD for GOLD RX, size 12, the total Global Warming Potential (GWP) isexpected to be reduced by approximately 20% with the transition to XCarb® RRP Magnelis steel,given that all the steel is replaced. The introduction of XCarb® RRP is a first step in the company’sjourney towards fossil-free steel.

www.swegon.com/UK

 

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PLANNING NEEDS TO CONSIDER CLIMATE CHANGE

Planning overhaul needed for climate change ‘resilience’, think tank says

Successfully adapting to climate change will need an overhaul of the planning system to create measurable local targets, according to researchers.

The think-tank Localis is calling for a nationally accepted definition of ‘resilience’ to enable local authorities to defend their communities from climate change.

Analysis of 88 English local plans by Localis found that more than half of local plans emphasise ‘water stress’ including flooding as a potential pressure.

Its report, entitled Climate resilience in Local Plans, says two in every five of the plans surveyed consider the use of building regulations as potential solutions to climate change.

Localis head of research Joe Fyans said:

‘Given what we know from Met Office climate projection about best case scenarios for the probable damage likely to be wrought by increased flooding and the impact of heatwaves, what is worrying here is that current legislation comes nowhere close enough to covering the risk impact.

‘Where rules are not in place, appropriate measures are not provided by all local plans.

‘On the ground, this means there is a great deal of variability in local government preparations for climate change.

‘Suitable resilience is needed for all areas, and a place-based approach that accounts for levels of vulnerability will be the appropriate remedy for many of the country’s upcoming climate problems.’

Source: LocalGov

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TIMBER GIANT REVEALS PLANS

Hundreds of jobs on the way as timber frame giant reveals plans for £45m HQ

 

One of the UK’s largest timber frame manufacturers has chosen Derby as the location for its new headquarters.

Oregon Timber Frame will relocate from its current HQ in Burton to a recently-completed 186,000 sq ft facility at Infinity Park Derby this summer, with the move expected to create around 200 jobs.

Housebuilding giant Barratt Developments, which owns the company, is understood to have invested £45m in the new site.

The facility is located off Junction 3 of the A50 and boasts a BREEAM “Very Good” rating and an EPC rating of “A.” It was built by Bowmer + Kirkland.

Barratt acquired Oregon Timber Frame in 2019 to support its off-site production operations.

Peter Wade, joint managing director of Oregon, said:

“Infinity Park Derby will ultimately become our new base to support Barratt’s move to modern methods of construction, and so it was imperative that the building’s sustainable credentials were in line with those of our business. This new state-of-the-art facility will support our long-term goals to increase our use of modern methods of construction off-site and reduce our carbon footprint.”

 

Source: Buisness Desk

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