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In an age of regulatory change, can precast concrete columns and precast staircases revolutionise the construction sector?
Mace warns clients to watch out for cheapest bids or face risk of jobs being hit by distressed firms
Data from construction insights firm Glenigan reveals that the construction sector is on the verge of an expected period of growth, with predictions that the industry will see a 12% increase this year. However, budget and timescale demands within the sector are one of the most significant parameters which affect the efficiency of a project.
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Meanwhile, the sector is facing a shift in building regulations prompted by safety concerns following the tragic Grenfell disaster of 2017.
Regulatory overhauls have spotlighted safety imperfections, particularly in high-rise residential constructions. This includes the changes to Approved Document B, mandating the inclusion of a second staircase in buildings over 18m tall.
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Plus, there is the ever-present push towards more sustainable practices.
Ultimately, this combination is seeing construction businesses looking to adapt new ways of working to meet requirements. As the sector evolves in response to higher demands, regulatory changes and sustainability goals, the integration of precast concrete columns and stairs heralds a new era of efficiency, safety, and adaptability.
Managing director of Milbank Concrete Products, Lee Cowen, explores how innovations in precast concrete columns and stairs are transforming how the construction industry operates.
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“In the current climate, developers are facing many pivotal decisions. As always, meeting timescales and budget constraints are a constant challenge.
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Yet in the coming years additional layers of complexity and change will need to be considered as the industry addresses vital adaptations to building regulations from a safety and sustainability standpoint. Moving forward, meeting sustainable goals through comprehensive legislation across scope 1, 2, and 3 is imperative.
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Source: Building Magazine
Firm says some firms could cut prices ‘by more than is achievable to secure work’
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Mace has told clients not to take the cheapest price on jobs – or run the risk of schemes being mired in problems from firms on the financial brink.
In its latest market report, covering the first quarter of this year, the consultant said pipelines drying up might tempt some of the supply chain to bid jobs at rock bottom prices to bring in turnover.
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But the firm said falling materials and staff costs could prompt some to send in bids that are unsustainable.
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Mace’s consulting business has said firms will be tempted to drop their prices on jobs to fill dwindling order books.
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Andy Beard, the firm’s global head of cost management, said: “Over the past quarter, material prices have continued to drop and there are now signs that labour costs are starting to fall. While this is good news, developers need to be careful of those who are aggressively cutting bid prices.
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Weakening pipelines are likely to encourage some firms to squeeze prices by more than is achievable to secure work.
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“Supply chains are still fragile, and work won at ultra-low prices won’t help to repair them. As a sector we should work together to ensure all of those we work with are able to remain in business, as more insolvencies will only reduce competition for supplies, potentially driving construction costs upward once more.”
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And he warned: “Suppliers are also facing problems from high credit costs, meaning that paying on time is vital in order to keep some afloat.”
Mace said tender price rises would stay at 2.5% nationally and 2% in London, rising to 3% nationally and 2.5% in London next year.
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Source: Building Magazine
London Square to convert 1980s riverside office into luxury housing
Turnover and profit down at Cala as rumours of sale swirl
Westminster Tower scheme on banks of river Thames will include three penthouses.
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Developer London Square has said it will turn a 1980s riverside building overlooking the Houses of Parliament into luxury apartments after buying the block for £41m.
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Westminster Tower is located at the southern end of Lambeth Bridge on the Albert Embankment and is currently used as office space.
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London Square has bought the building from property investment firm CLS who said the scheme already comes with planning permission for the residential conversion as well as approval to build an extra three floors.
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The tower was built in the 1980s and is currently used as office space
Abu Dhabi-backed London Square plans to build 25 apartments, areas for recreation, as well as three penthouses.
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London Square said: “It stands next to the Thames, with views right across to the Palace of Westminster, Big Ben and other historic landmarks and will offer a collection of unrivalled residences in the heart of the capital.”
The deal is expected to complete by the end of June.
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Established in 2010, London Square is perhaps best known for its Nine Elms development in the south-east of the capital. It is also the owner of Square Roots, a for-profit registered provider of social housing, which posted an £808,000 loss in its first year in business.
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In December, London Square was bought by the largest real estate group in Abu Dhabi, Aldar Properties, in a deal worth £230m.
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Source: Building Magazine
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Owner L&G reportedly looking for buyer for housebuilder.
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Turnover and profit dropped at Cala Homes in 2023, the firm’s financial report has revealed amid rumours it is set to be sold by owner L&G.
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The housebuilder’s results for the year to 31 December showed a 33.6% drop in pre-tax profit, from £169m to £112m.
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Cala Homes’ Fernleigh Park scheme in the Cotswolds
Meanwhile, turnover stood at £1.26bn, down 7.3% on the prior year.
The business completed 2,917 homes in the year, a 3.6% decline on the 3,027 posted in 2022.
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Insurance giant L&G is reportedly exploring a sale of its subsidiary and has been shopping the business to volume housebuilders ahead of a formal sale process.
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According to a Sky News report, the business is lining up Rothschild to run the auction of Cala, which it said could be worth up to £750m.
L&G last year ceased production at its modular housing factory outside Leeds after racking up £174m of losses.
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A spokesperson from Legal & General said: “Legal & General regularly review and conduct conversations about the future of all our various investments and subsidiary businesses as we seek to maximise value for our shareholders.”
Cala Homes chief executive Kevin Whitaker said the sales rate of 0.63, which was in line with the 0.62 recorded the year before, was a sign of strength.
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Source: Building Magazine
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