Why is to so hard to commit to Smart Construction?
Jason Longhurst, Chairman UK Business Council for Sustainable Development
I find the constant debate to justify smart/modular/off site construction mind numbing. There is a lot of talk but very little action but, in my view, there are three fundamental requirements for sustainable development growth in the UK.
Firstly, get the policy environment working for the industry. The Government lifted the housing cap which was a step in the right direction as far as housing numbers are concerned but, so far, they have missed an opportunity to make any impact with offsite construction. Councils should be required to deliver 50% of their build via smart construction, creating a secure market and bringing down ‘smart’ build costs, which are currently around 30% higher than traditional build.
Secondly, give smart construction the benefit of zero rate VAT. Critically, smart construction is also a victim to the ‘golden brick’ zero-rate VAT issue which states that, for new residential units clearly under construction (ie demonstrating the one ‘golden brick’ laid on foundations) the VAT charge is zero. Given that smart construction is built off site and then erected in between three days and three weeks, on site, this is a stumbling block and one that has not yet been addressed by HMRC. Adding the standard 20% VAT to smart construction will kill the market completely and any aspirations the Government has towards smart/modular/off site construction will evaporate.
Thirdly, support the supply chain. Enhanced procurement awareness is needed, alongside advanced ordering, to give strength to the supply chain. This is particularly important in the public sector arena, which requires the greatest flexibility to unlock a more diverse build range into the market. Currently this does not exist. A fundamental shift in policy is critical but, for me, how this is achieved is a bigger shift in mind-set and focus. The public/third sectors’ commitment to unlock this approach and create a sustainable foundation to smart construction, offsite manufacturing and PMV, must be harnessed and proactively challenged if the construction industry is ever to modernise.
And another thing. The private sector must address the failure to bring smart construction into mainstream build commitments, across the full range of development in the UK. This must be positively disrupted and demonstrated as a viable diversification to our housing market offer. We all know the potential wins to the end consumer but no one is defining the tangible path to unlock this.
So, get the policy environment sorted as a matter of urgency then the industry can focus on enabling actual delivery, at scale and at pace. For me, creating the investment and environment to deliver into the existing market a more competitive product, unlocks the drive for efficiency and ‘standardisation’ (assuming this means high quality, efficient, cost effective design). Smart construction must be presented as a tangible market offer, over the risk of it remaining a virtuous circle debate with no change.
With over 3,500 delegates from 82 countries alongside 18 government delegations listening to 200 speakers, the President of Institution of Civil Engineers, Professor Lord Robert Mair declared this as the start of a movement, not the end. From the UN Secretary General’s opening statements to the very last panel debate, this 200th Anniversary of the Global Engineering Congress generated vision, commitment and a willingness across the global engineering profession to work together to transform infrastructure and lives in a manner very different from what has been previously witnessed. The Congress demonstrated the urgency of WHY and the importance HOW engineering can address the challenges of the United Nations Sustainable Development Goals.
UKBCSD is proud to have supported and participated in the largest event held in the UK, by a professional body, with sustainable development being its sole theme. Rightly, this event was about doing not talking. The ambition of today’s global practitioners, being harnessed to develop the actions and promoting the behaviours to become tomorrow’s sustainability leaders was evident throughout the week of events. We look forward to announcing further partnering with the Institution and its network, to demonstrate that sustainable development solutions, for society’s future enviro-economic welfare, is a goal worth pursuing by us all.
GEC Panel Conference debate Sustainability is bad for good development (for all)
26th October 2018: Presented and designed by UKBCSD
Panel members from left: Tassos Kougionis (BSRIA); Jacke Sadek (UK Regeneration); Martin Cooper (Prologis) and Allan Simpson (Anglian Water)
In attendance, a global representation of the civil engineering profession. Chaired by Jackie Sadek, the panel of professional experts engaged with the audience in a lively debate regarding the implications of whether they can demonstrate how sustainable development is beneficial for their practice and client base.
Time for doing rather than talking
During the Global Engineering Congress held at the Institute of Civil Engineers in London in October, UKBCSD hosted a panel discussion designed specifically to challenge the audience with the proposition “Sustainability is bad for good development”.
Jackie Sadek, Chief Executive of UK Regeneration, chaired the debate, in front of an audience representing the global engineering profession. The panel of professional experts included Tassos Kougionis of BSRIA, Martin Cooper of Prologis and, Allan Simpson of Anglia Water, who together engaged with the audience in a lively debate regarding the implications of the conference title and whether it really does represent their experience and views.
Among the headlines emerging from the discussion were a unanimous agreement from the panel that there is a business case for sustainability. Sustainable development is good development. Over-regulation and over-prescription, rather than commercial leadership, leads to box ticking and bad development. The industry needs regulation to address market failure but not at the expense of innovation, which must not be stifled. It was acknowledged that this is a delicate balancing act.
The panel agreed that there is no ‘silver bullet’ or ‘one size fits all’ solution to meet IPCC commitments but partnership and collaboration is critical, if the agenda is to be moved forward towards tangible results. Engineers need and welcome non-engineers in creating tomorrow’s solutions for greater resilience and better places to live.
The panel concluded that measuring impact is the demonstrable evidence vital to communicating why sustainable development is good for communities and other stakeholders. The time is now right for doing rather than talking, a point emphasised by younger engineers who want the profession to take a more active leadership in this.
‘Joining the dots’ between regional actions and national priorities
Charles Roach, Chief Executive, UK Business Council for Sustainable Development
With the national programmes for infrastructure and growth making more accountable the role of regional government in increasing the pace of delivery, together with devolved capital programmes and the freeing up of the regulatory framework, the transition towards a sustainable Britain will be challenging.
UKBCSD welcomes the Government’s focus on this area of high-tech business activity, leveraging its economic potential to sustain growth from public and private investment. National Government is focusing on the Oxford-Milton Keynes-Cambridge Growth Corridor to improve housing and transport infrastructure, because it has rightly been identified as an economic area of global significance. Alongside the housing growth and infrastructure programmes, we believe this huge area should be seen as a significant component of an Industrial Strategy which “joins the dots” between these regional actions and our national priorities.
The contribution of sustainable development in the rebuilding of our regions, towns and cities beyond London, has the potential to provide opportunities way beyond provision of physical infrastructure. Sustainable solutions and Innovation practice within this high-tech corridor offers the key to unlocking the productive capacity needed, if we are to deliver more permanent employment, more climate resilient development and greater levels of long term investment across our commercial supply chains.
We would encourage the local partners’ strategy to develop, alongside the various arms of Government, a sustainable development charter. This must capture how the benefits of contributing more, higher value jobs, longer term business certainty and investment can be enabled through sector innovation, alongside sustainable solutions.
The prize of delivering sustainable development should not be lost in these once-in-a-generation plans for the Central Area.
Joining UKBCSD this quarter are:
ProLogis UK - is the leading developer and owner of logistics property in the UK and worldwide .In the UK, Prologis is pioneering an approach to sustainable distribution centres that they have developed working within established environmental standards and their own stringent methodology. Its portfolio has 304 sustainable building certifications in 17 countries demonstrating how forward looking, nimble and resilient this organisation is within a rapidly changing world.
LABC works with manufacturers, trade bodies, professional institutions and other recognised bodies to ensure that standards are well-defined and easy to apply Promoters of LABC Regional Building Excellence Awards the largest business to business awards in the building control sector. LABC gives national recognition to sustainable design and high performance buildings; outstanding companies, partnerships and individuals able to solve technical problems with creative solutions and; use of innovative products and the skills to overcome difficult site conditions. Their renowned and respected Awards actively encourage use of a diverse range of skills and technology solutions to achieve quality in all types of building project.
https://www.labc.co.uk/about-labc
Heatrae Sadia - are a market-leading manufacturer of electric heating and hot water products manufacturer specialising in domestic and commercial hot water, hygiene and drinking water solutions and renewable technology. Their expertise in solar thermal technology has led been led by innovation, producing solar products capable of providing up to 60% of annual hot water requirements for UK households. Heatrae Sadia’s own National Design Awards competition, which showcases their further commitment to Innovation and sustainable solutions, is devised to encourage more young people into the industry in response to the current skills gap.
David Lock Associates - An independent multi-disciplinary town planning, urban design and master planning consultancy based in Milton Keynes. DLA’s advisory expertise across residential, employment, transport infrastructure, retail and education, has led to establishing plans and sustainable evidence base for creating some of the UK’s largest new settlements and urban extensions.
UKBCSD Roundtable event hosted by Burges Salmon, London
17th September
This, the first in our ‘Challenger’ series of Roundtable discussions, the Garden Villages debate set out to explore the Government’s latest housing initiative designed to spark new demand in the housing market. The event attracted colleagues from private sector, national and local Government to discuss the challenges ahead for delivering something very different from building traditional housing estates.
Opportunities to deliver more than 100,000 new homes over the next decade or so were showcased by Homes England, Cornwall, Derby City, North Staffordshire and Wychavon Councils as well as the approaches they would take to encourage local communities to sanction large scale development on, or close to, their market towns and villages.
Chaired by Jackie Sadek of UK Regeneration, challenges raised by the Roundtable partners ranged from "How do we get the growth we need?", to "How should we serve the new communities we are planning for?" The commitment to a longer-term vision and delivery captured the attention of private developers and infrastructure providers, whose role in shaping and resourcing sustainable delivery of such large scale programmes, was not lost.
The roundtable report, prepared by our partners LDA-Design, capturing the issues and potential solutions to delivering differently, will be launched at MIPIM UK later this month.
Our thanks to the following organisations for contributing to this event:
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Are you seeking better ways of measuring your impact on sustainable development?
By attending the Global Engineering Congress, you will become an intrinsic part of planning the routemap guiding the community of civil engineers and designers towards delivering United Nations Sustainable Development Goals.
Throughout the week, you can meet our line-up of influential and high-profile speakers to discuss what your organisation can do to achieve this or click on the link below to learn more.
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Our congratulations to UKBCSD Ambassador, Prologis, for being shortlisted in three categories for this year’s first ever The Planet Mark Awards, for their work around Sustainability and Social value.
The inaugural ceremony will take place in London on 11th October, 2018
The Awards showcase outstanding achievements in sustainability from across The Planet Mark’s diverse community of accreditation holders. https://www.theplanetmark.com/planet-mark/
UKBCSD invites Ambassadors to lead and shape industry best practice
Event held 25th July 2018
The UK Business Council for Sustainable Development recently held an inaugural event, hosted by CBRE, to welcome an invited group of 22 organisation representatives, spanning the widest range of industry sectors and supply chains operating in Britain, as well as announcing new members BASF PLC, ENGIE, Federation of Master Builders, Prologis and South Northamptonshire and Cherwell Council.
CEO Charles Roach introduced new Chairman Jason Longhurst who underlined the commitment to reset the organisation as a “network working with your networks”, positioning the ethos of sustainable development beyond the housing development industry and reflecting a desire to work across sectors, not within them.
He said, “We recognise that by coming here, you seek an alternative to the silo thinking offered by other networks. We are bringing together Leaders, Innovators and Market disruptors, to become the Ambassadors for UKBCSD. We are inviting you to lead and shape our new programme of Challenge Events designed to navigate the most pressing commercial obstacles in our path towards a sustainable Britain. These challenges of tomorrow cannot be addressed by writing more Policy, but by a shift in the culture of procurement and decision making on sustainable development principles.
“UKBCSD is about bringing opportunities to its members for collaboration and demonstration of the emergent technologies and innovative practice that brings meaningful benefits for enterprise and communities. This is not a talking shop or a policy thinktank. This is, with your engagement, a ‘doing’ organisation, responding to, or leading initiatives demonstrating industry best practice.”
Jason Longhurst announced the launch of the Government’s Industrial Strategy Challenge Fund, citing it as an opportunity for those present to demonstrate capability across sectors and organisations, to secure part of the £12.5 million available for projects to transform how the construction sector delivers new buildings.
Interested members should contact us to discuss their participation in a Steering Team for a joint Bid. Further details of the Fund are available at Gov.UK https://www.gov.uk/government/collections/industrial-strategy-challenge-fund-joint-research-and-innovation#transforming-construction
Chris Carr, director of the UK Council for Sustainable Development and Chairman of the Federation of Master Builders Home Builders Group, challenges the industry to make a small change.
The humble brick has become the unwitting focus of much controversy in recent months. With huge national housebuilding targets, which the industry is struggling to meet, it now has a double whammy because of a shortage of bricks that is certainly a problem for the smaller house builders and is cited as an operational health risk by larger operators.
So, what’s to be done? Alongside two other commentators, I was recently asked this question by BBC Breakfast, during an interview at a brick factory. The answer I gave wasn’t broadcast, most probably because it might have come across as a little too ‘radical’ for the industry. My answer? Use smaller bricks. Why does the industry use 4” bricks when a 3” version will do the job just as well? Anyone in the industry will know that, where facades are concerned, the bricks are purely aesthetic. The integrity of the building is reliant on the strength of the inner structure - concrete block or timber frame. It's is the inner walls that support the 1st floor joists and roof. Yet, when I’ve asked house builders the 3” brick question, the response has usually been along the lines of ‘Why change - we’ve always done it this way?".
Reduce the size of the brick and you immediately increase volume, you can fit more bricks on your pallet, getting more bricks to site on one lorry load. The other benefit is that we could increase the size of cavity insulation. Changing the size of a brick is nothing new. We already have longer and thinner bricks been manufactured as they are sometimes specified by architects and designers to create some very impressive modern building designs. If we can reduce depths and increase length why can't we make the common facing brick narrower? And because you are reducing your energy use in doing this, you are reducing your carbon footprint. This is about simple economics; reduce the product size, increase productivity and, ultimately, complete more houses.
I accept there would be initial start-up costs to automate the change-over in existing brick factories but I can’t imagine these would be prohibitive. Ibstock and Forterra have opened or are opening new brick factories. Here is a great opportunity for them to build-in a really simple solution that might just ease the supply and demand issue.
There is also a mild threat behind all this; smaller builders don’t have the benefit of volume procurement like the major housebuilders and they are struggling. Yet they have also been noted by Government as being a fundamental part of the answer to meeting the UK’s housing targets. If they are unable to see a way through the brick-supply problem, they will start to look at different construction methods. While the industry must explore all available options to build and build fast, addressing the brick size option is one way in which traditional construction can help itself, to help others. So, I would challenge the manufacturers to throw us a reason why they can’t make the change and, if they can, let’s get on with it.
