May 2015 Newsletter

“Our May Newsletter is a round up of all the latest and biggest news within the construction industry for the month of May.”

North West Region’s Construction Pipeline Worth £114bn

A Construction Pipeline Analysis report covering the whole of the north-west, has been released by Greater Manchester Chamber of Commerce The report outlines construction projects in Greater Manchester, Cheshire, Cumbria, Lancashire and Merseyside and indicates that the planning system has a total of £114.36bn of north-west construction projects, with £69.78bn expected to have a high degree of certainty of delivery. Output between 2015 and 2018 inclusive is expected to be £29.93bn, with the driving factors being infrastructure and housing at £10.88bn and £6.84bn respectively.

The report reveals not only the size of the pipeline, but also the numbers of trained employees, across a wide variety of trades who will needed to complete the projects.

The Greater Manchester Spatial Framework calls for 10,706 housing units to be built annually in the Greater Manchester region between 2012 and 2033. In comparison, 2,317 housing units were delivered in 2012, 3,709 units in 2013 and 7,693 units in 2014. For 2015, 10,657 housing units are planned but contracts have only been entered into for 7,693 units.

Professions most in demand Non construction professional, technical, IT and other office based staff, not including managers: 20,729 required in 2015 Wood trades and interior fit-out: 20,138 needed in 2015 Construction managers: 15,487 required in 2015 Plumbing and heating, ventilation and air conditioning trades: 12,818 required in 2015 Electrical trades and installation specialists: 12,474 required in 2015 Training needs for the 2015–2018 period are 45% more than the average for 2011–2014.

There are £8.97bn worth of projects in Greater Manchester, £2.67bn of which are housing projects Cheshire and Lancashire have a high proportion of housing projects in the regional pipeline at £ 1.56bn (34%) and £1.35bn (51%). Cumbria has £8.74bn worth of projects planned, of which £5.12bn are infrastructure projects. Some of the projects in the Greater Manchester area The Nugen Project: Nuclear Power Station in Cumbria is number 1, with a value of £14bn and a start date of 2018, due to complete in 2024 NOMA Masterplan: In Manchester city centre ranks as number 9, is worth £800m and is due to complete in 2025 Carrington Power Station: At £800m is due to complete in 2016, andranks as number 10 The Chapel Street regeneration scheme in Salford city centre: At £650m is number 11 and is due to complete in 2028 Others include… Northern Hub Carrington Energy Centre New Bridgefield Town CentreMasterplan Electrification of The Transpennine Express.


New £50m Faculty Of Business And Law For University Of The West Of England

The University of the West of England in Bristol plans to expand its Frenchay campus and course delivery options with a new building for the faculty of business and law. The £50m construction project has been awarded to ISG.Pearce Ltd, part of the ISG.PLC group, which has its headquarters in nearby Stoke Gifford, Bristol. Included in the new five-storey building, totalling 185,000 sq ft, will be will space for professional organisations, small business owners, start-ups and collaborative learning areas. It will also feature a 300-seat, double-height lecture theatre plus two lecture halls together with two simulated court rooms and a high-specification trading room.

The new building will be located next to the student union and plaza, which are also currently under construction. The university intends to use the project as a learning resource for students on its built environment courses. In a statement, ISG’s Western regional managing director Rob Martin said: “UWE Bristol has significant built environment expertise as the ‘university of choice’ for students looking to pursue a career in the industry. “Working in partnership on this landmark building is an exciting proposition, providing the opportunity to implement many of the most advanced methodologies used in modern construction.”

He added: “The project team will foster strong links with the student community, with a wealth of training and work experience opportunities for UWE Bristol students.” ISG will deliver the project to building information modelling Level 2, with all design information shared between project stakeholders to create a computer-based model of the building. The scheme also uses a Soft Landings approach with the project team working closely with UWE Bristol to maximise efficiencies and enhance performance during the design, construction, commissioning and final occupation phases. UWE is one of the most modern universities in the country and its long-term strategy is to expand even further offering a wide range of courses to both national and international students.

Plans for the second phase of the Bower Ashton Campus redevelopment project, which will include the faculty of arts, creative industries and education are currently being drawn up. The university is also committed to providing excellentsports facilities. Work is currently underway to provide a new UWE stadium including a 1,000 space car park, which will be located in the western part of the campus in collaboration with Bristol Rovers Football Club.


Work To Begin On £165m New Papworth Hospital

Skanska UK PLC, the world leading project development and construction group has finally announced it will begin construction work on the much anticipated £165m New Papworth Hospital, after reaching a financial deal on the public-private partnership project. The design, build and provision of finance for the project will be provided by Skanska, who will also provide hard facilities management services at the hospital for a period of 30 years after completion. The 310-bed hospital will be built on the Cambridge Biomedical Campus.

The contract is valued at around £140m and work will begin immediately as the original start date has already been delayed by 3 years. The project is now expected to be fully completed during 2018. Innovative design and construction techniques will allow reconfiguration of the hospital over a period of time, making it fit for purpose for the future. It will the first hospital in the UK to achieve an EPC ‘B’ energy rating. The carbon emission reduction process will be due to a large scale ground-source heat pump system.

Papworth Hospital chief executive Stephen Bridge said, “I am excited and pleased to declare that the building phase of the New Papworth Hospital will now commence and I now verymuch look forward to seeing Skanska turn our dream into a reality.” Skanska project director Richard Spencer added, “The stunning architecture of the new hospital will showcase a confident civic presence that will help to attract the very beststaff and clinicians, and will make Papworth a treatment centre of choice, both within the UK and internationally.”




£30m Office Redevelopment For Leeds City Council

Town Centre Securities PLC, the property investment company has appointed Shepherd Building Group Ltd to deliver preconstruction works at a £30m office redevelopment for Leeds City Council. It is reported that Shepherd Construction will provide preconstruction services, valued at £30m, at Merrion House in Leeds city centre ahead of a full refurbishment and extension of the building.

Leeds City Council had previously agreed a 25-year lease for 170,000 sq ft of space in the extended Merrion House with owners Town Centre Securities back in October 2013. The council plans to move all its operational services to the new building, saving an estimated £15m. In a recent interview, Shepherd Construction director Neil Clarke said: “The Merrion House project is one of several key developments our multidisciplinary teams are successfully delivering across the city, including MEPC’s Wellington Place and Leeds University library and multi-storey car park.”

Town Centre Securities (TSC) chairman and chief executive Edward Ziff said: “Even in the preconstruction phase of this development, the live nature of Merrion House required a technical understanding of the challenges it posed.” Headded, “Shepherd was able to provide an insightful and deliverable preconstruction bid and we are looking forward to working collaboratively in order to move the project into the next phase of development.”




Busy Times Ahead For Commercial Property Developer

The Birmingham-based commercial property specialist, Stoford, has unveiled a 10m sq ft development pipeline for 18 new projects across the UK. The company announced it had a portfolio of 18 industrial and warehouse developments, amounting to 700 acres, capable of delivering 9,675,000 sq ft of commercial space.

Projects are in London, Bristol and Bournemouth in the South, Thame, Worcester, Coventry and Wednesbury in the Midlands with further developments earmarked for Liverpool,Manchester and Wakefield in the North. The projects are at a various stages of the planning process and include work in the retail, office, hotel and industrial sectors.

Managing director Dan Gallagher said, “Having so many projects in the warehouse and distribution sector demonstrates a major upturn in activity – whether it be build-to suit or speculative development – which is very good news indeed for us. “With the shortage of available buildings and land in this sector we are well placed to take advantage of the strongtenant demand and record investment yields.” Stoford’s clients include Standard Life, AXA, LaSalle, BlackRock, GE Capital, Severn Trent Water, Npower, Admiral Insurance, Tesco andthe Co-operative, as well as government departments such as HMRC, DSA, DEFRA and the Home Office.


Millennium Mills Site Ready For Major Redevelopment

Work to strip out asbestos from Millennium Mills, as part of a £12million grant by the Department for Communities and Local Government, has been completed allowing the site to finally be redeveloped. Planning permission has been granted for the £3.5billion Silvertown Quay project on 62 acres neighbouring the Royal Docks. It will provide offices, a tech hub, 3,000 new homes and brand experience pavilions.

Newham Council recently confirmed the planning status for the development, which will result in the creation of up to 20,700 new jobs over a period of 10 years. A school, health centre and shops are also included in the plan and an innovative new bridge will cross the Royal Docks to get people to Custom House and Crossrail.

The first phase, due to be finished by 2018 and in time for the new Crossrail connections, will see the 450,000 sq ft Millennium Mills site brought to life with technology, media and telecoms businesses housed in the iconic former flour mill. Silvertown Partnership chief executive Simon Webster said: “We are delighted to receive the go-ahead for this vital scheme.” He added, “This part of London is now destined to be a creative hub for our capital, offering a new, easily accessible location for innovative businesses, as well as housing for Londoners and amazing new brand experiences to attractvisitors from the UK and abroad.


New Office Block For Manchester’s Springfields Business District

Manchester’s Springfield’s business district is to get a new 10-strorey office block. The Cotton Building will be a significant and innovative property with 160,000 sq ft of commercial space and over 30,000 sq ft of public amenity space. Construction Company, McLaren, has been awarded the contract by developers, Allied London to construct the building, which will be situated on Hardman Boulevard next to the Civil Justice Centre.

It will be McLaren’s second major commercial project in Manchester. The building will be managed by Allied London’s new property management service, developed with Capital Properties, and is due for completion in April 2016. The building will comprise of 2 levels of basement, providing parking, plant requirements and a gym and cycle facility for the Spinningfields area.

The ground floor of the building will provide a number of different uses, including a secure reception facility for tenants. A business support centre, which will include seminar space, meeting rooms, exhibition facilities and breakout spaces, will serve tenants and the general public. Levels 1 to 6 will comprise highly flexible commercial office space where multiple arrangements can be accommodated to meet thedemands of tenants. Level 7 will link to large south facing terraces and an upper mezzanine level via a double height space and feature staircases, maximising southerly vistas along Hardman Boulevard.


£560m Joint Venture Awarded By Scottish Water

Scottish Water has awarded a £560 joint venture framework to Galliford Try, MWH Treatment and Black & Veatch.

Works will include design-and-build projects for Scottish Water’s water and wastewater treatment programmes, including new-build projects and upgrades. The non-infrastructure Quality and Standards IV framework starts immediately and is expected to run for six years. The joint venture has been called Efficient Service Delivery (ESD) and is part of the company’s overall £3.5 billion investment programme.

Galliford Try executive chairman Greg Fitzgerald said: “We are delighted to have secured such a substantial amount of long-term business in a key sector for us.” He added, “We look forward to building on our relationship with Scottish Water and bringing the benefit of our experience of collaboration across the UK water sector to Scottish Water and its customers.”

Douglas Millican, Chief Executive of Scottish Water said, “This is our third alliance appointment and the benefits for communities of Scotland across Scotland will be felt through all of these partnerships.” In addition he said, “Through the commitment of our alliance partners, 90 modern apprentice and 55 graduate roles will be created as a result of our investment programme in the three alliances. This reflects the commitment of Scottish Water to developing the next generation of people to take forward the future of the industry.”

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