Following ongoing concerns since the Grenfell Tower tragedy, a parliamentary committee has intensified its focus on cladding remediation efforts across the UK. This investigation targets the efficacy, cost, and delivery speed of current remediation programmes, aiming to hold accountable both governmental bodies and stakeholders involved in addressing hazardous cladding.
The inquiry will re-evaluate the deadlines initially set for remediation, especially as the target completion date of June 2020 has long passed. Scrutiny of these timelines seeks to identify delays and any process gaps hindering the removal of dangerous materials.
Given the allocation of £5.1 billion from the government, with an additional £1 billion pledged in the Autumn Budget, the committee’s oversight will encompass how these funds are managed to avoid waste or misuse. This aims to ensure responsible and efficient use of taxpayer resources in supporting safer housing.
Examining the broader government strategy for risk prevention, the committee will question measures taken to prevent future safety hazards. The inquiry will also review changes in building regulations and the influence of industry bodies on policy standards.
With a multi-billion-pound budget dedicated to remediation, challenges remain regarding the equitable distribution of costs between the government and private developers. The committee intends to review agreements with property owners and assess developers’ roles in sharing financial responsibility, especially as remediation expenses continue to grow.
The upcoming sessions will serve as a critical examination of the UK’s progress in cladding remediation, with a focus on transparency, accountability, and the ultimate goal of safeguarding residents.
The UK construction industry has been grappling with an alarming increase in the number of insolvencies amongst contractors and sub-contractors. Data released by the Government’s Insolvency Service reveals that there have been 2,514 cases of insolvency within the sector, underscoring significant financial pressures and operational challenges facing many firms.
Economic Headwinds and Market Pressures
The construction industry has been affected by a convergence of economic pressures in recent years. Rising material costs, supply chain disruptions, labour shortages, and inflationary pressures have all placed immense strain on contractors and sub-contractors. Many companies, already operating on thin profit margins, have been unable to absorb these increased costs. Additionally, late payments from clients and increasing project delays have compounded financial vulnerabilities, pushing many businesses into unsustainable debt.
The cost of materials has risen substantially since 2020, largely due to supply chain disruptions caused by Brexit, the COVID-19 pandemic, and the Russia-Ukraine conflict. The price of key materials, such as steel, cement, and timber, has surged, forcing contractors to bear escalating project expenses. Sub-contractors, who often operate on fixed-price contracts, are particularly affected, as they have little flexibility to adjust prices mid-project.
Labour shortages have also been a notable factor, with fewer skilled workers available in the market. Many contractors have had to offer higher wages to retain and attract workers, putting additional strain on project budgets. The resulting increases in operational costs have left many firms in precarious financial positions, unable to meet financial obligations as they arise.
Cash Flow Constraints and Late Payments
Cash flow remains one of the most pressing issues in the construction sector, with contractors frequently experiencing delayed payments from clients. This delay can trickle down through the supply chain, leaving sub-contractors without timely payments for completed work. A recent survey by the Federation of Master Builders (FMB) revealed that over 60% of construction businesses in the UK have reported issues with late payments from clients.
Late payments disrupt cash flow and limit the ability of companies to invest in necessary resources and manage day-to-day operational costs. For smaller contractors and sub-contractors, who often rely on steady cash flow to fund ongoing projects, these delays can be particularly debilitating. When cash flow becomes insufficient to cover rising costs, insolvency can quickly become a reality.
Energy Prices and Operational Costs
Rising energy costs have also contributed to the insolvency rates within the construction sector. With many projects requiring substantial energy consumption for machinery, lighting, and other operational necessities, increased energy prices have eaten into already-tight profit margins.
The government’s initiatives to reduce carbon emissions and promote sustainable construction practices, while essential for the long-term health of the industry, have in the short term introduced additional costs and regulatory requirements. Smaller firms, especially, struggle to adapt to these changing requirements due to the limited capital to invest in energy-efficient technologies.
The Broader Economic Environment
The broader economic environment has exacerbated these challenges. High inflation rates and rising interest rates have affected the availability of affordable financing, making it more challenging for contractors to access loans for growth or even to maintain liquidity. As a result, many firms have been forced to operate without sufficient financial cushioning, leaving them vulnerable to even minor cash flow disruptions.
Government Response and Industry Support
The government has introduced some initiatives to support struggling businesses, including the Construction Playbook, which encourages best practices in procurement, project management, and risk allocation. However, many industry leaders argue that more targeted financial support is necessary to address the root causes of insolvency. Measures to enforce timely payments, reduce the burden of compliance for smaller firms, and address material price volatility could be beneficial in stabilising the industry.
The Construction Leadership Council (CLC) has called for further action, urging the government to address supply chain issues and provide support for companies transitioning to greener construction practices. Increased awareness and understanding of construction sector challenges amongst policymakers could help improve the longevity and resilience of firms, particularly those that play vital roles in regional economies.
The high rate of insolvencies among contractors and sub-contractors in the UK construction industry reflects significant structural issues exacerbated by economic pressures. Addressing these challenges will require both government intervention and industry collaboration to mitigate risks, encourage prompt payments, and manage escalating costs. Without targeted support, the industry faces continued financial strain, potentially leading to more insolvencies and greater uncertainty for the construction sector’s future stability.
The UK government has renewed its commitment to unlocking brownfield sites for development, aiming to address the nation’s housing shortage through the regeneration of previously used land. Brownfield sites, typically former industrial or commercial areas, offer significant opportunities for redevelopment while helping to preserve the country’s green spaces.
In a recent announcement, the government pledged an additional £68 million to support the development of brownfield sites across the country. This funding will be distributed amongst 54 local authorities, with each council receiving tailored financial support to prepare and unlock brownfield land for new housing projects.
The £68 million is part of the wider Brownfield Land Release Fund 2 (BLRF2) initiative, which aims to encourage the transformation of derelict land into vibrant residential communities. The government estimates that this latest round of funding will enable the construction of around 6,000 new homes, contributing to the broader national target of delivering affordable housing.
This new £68 million commitment builds on the £1.8 billion investment announced in 2023 for brownfield site regeneration. The broader funding aims to prioritise areas where the demand for housing is most urgent, particularly in urban regions with limited available land. Of the total, £550 million had already been earmarked specifically for brownfield sites, highlighting the government’s focus on reusing previously developed land.
The combined funding from these initiatives is expected to support councils in addressing the key challenges posed by brownfield redevelopment, including site contamination, planning hurdles, and infrastructure improvements.
Redeveloping brownfield land offers a sustainable solution to the UK’s housing needs. These sites, often located in urban or semi-urban areas, benefit from proximity to existing infrastructure, such as public transport, utilities, and services, which can reduce the cost and complexity of development. This approach also helps protect the green belt and rural areas, ensuring that new housing is built in places where it is most needed.
Moreover, regenerating brownfield land can breathe new life into neglected areas. Redevelopment projects can revitalise local economies, create jobs, and improve the quality of life for residents by transforming derelict land into thriving communities.
Despite the many benefits, developing brownfield sites presents its own set of challenges. Many brownfield sites require significant remediation work to make them suitable for housing, particularly those with a legacy of industrial contamination. This can make development more expensive than building on greenfield sites.
The government’s financial support is therefore critical in helping local authorities overcome these hurdles. The £68 million fund will be used to prepare sites by clearing and decontaminating the land, making it viable for housing projects. Additionally, the funding will assist councils in navigating planning processes and ensuring that necessary infrastructure is in place to support new developments.
The government’s strategy to focus on brownfield development aligns with its broader goals for sustainability and urban regeneration. By prioritising the reuse of previously developed land, the UK can reduce its environmental footprint, limit urban sprawl, and ensure that new housing is built in locations with existing infrastructure.
Unlocking brownfield sites is also a key component of the government’s long-term housing strategy, which aims to address the shortage of affordable homes while maintaining the integrity of the countryside.
With the government’s additional £68 million investment in brownfield development, the potential to transform derelict sites into much-needed housing has gained further momentum. Distributed amongst 54 local authorities, this funding will enable the construction of thousands of new homes while preserving green spaces and promoting sustainable urban growth.
By continuing to support brownfield regeneration, the government is taking significant steps towards meeting its housing targets, revitalising communities, and ensuring a sustainable and responsible approach to development across the UK.
The UK Ready Mixed Concrete sector stands to gain significantly from the establishment of the British Concrete Transport Association (BCTA), a new not-for-profit association. The BCTA, which brings together industry experts, is poised to address crucial issues within this specialist sector, enhancing its overall performance.
The BCTA has assembled a team of familiar and highly respected industry figures, each with unique expertise. Their collective goal is to elevate industry standards through their advice, guidance, and integrity and to shape the sector’s future through collaborative effort.
Lindsey Rudd, the current Acting BCTA Chair, who previously served as the Group Sales Director of TVS Interfleet and Director of McPhee Mixers, believes that now is an opportune moment to establish a new trade organisation. Lindsey believes the new organisation can continue and amplify the work initiated during his time as Chair of the Concrete Division of the British Aggregates Association (BAA).
“Having seen firsthand some of the issues that affect the industry, especially around Concrete delivery, concrete transport and the daily challenges that drivers and operators continue to face, bringing together a group of outstanding people willing to influence change for the right reasons, and address those problems that need adequate solution
“Establishing the new association will take time but establishing a group who genuinely care about doing the right thing presents an opportunity to improve and then maintain standards for everyone.
“Leading the charge of the BCTA are Lisa Fleming, MD of Logico and previous Chair of the BAA Transport Committee, and James Dawes, MD of Dawes Highway Safety and previous CSR Officer at the BAA. Their tireless work over the past few weeks and their willingness to sacrifice their time is a testament to their dedication to our cause.
“They will be supported by Scott Bell (JMW Solicitors), Gavin Brain (EMPI Awards), Jonathan Barker (Ready Mix Group), Mark Brooks (Blue Rinse), Dan Cowan (DEK Group), Jamie Clarke (Specialist Transport Consultant) and Jonathan Goldsmith (Watery News).Each brings ingredients to create a unique blend of the experts needed to influence change, with continuous and prodigious discussions to further add to the group in progress.
“Through this combined expertise, we believe established strategic partnerships will bring positive improvements to the critical issues surrounding transport, skills, health and safety, and the environment.
“While we may not yet have the resources or member numbers of the more established industry associations, we can provide an opportunity for everyone to have a voice in an industry through shared values.
“As we continue to work in the background and prepare for some exciting announcements, the team continues to prioritise pressing industry issues and has already started work on proactive solutions.
“It is an ambitious strategy, but the support we’ve gained shows that our joint commitment will give the industry an alternative, effective and real solution to shape the sector for many years.”
If you’d like to know more about the British Concrete Transport Association, please email info@britishconcrete.com or visit www.britishconcrete.org
Hyde are working with the London Borough of Croydon to build 126 affordable homes close to Waddon railway station. The new homes, which will include 56 for affordable rent and 70 for shared ownership are due to be ready in autumn 2025.
The homes will surround a green space for the community to enjoy, which will also include natural play equipment and allotments for residents. There’ll also be EV charging and a public art installation.
Hyde’s Development and Sales Director, Steven Morrice, said: “We’ve been committed to this scheme for a number of years, which was unfortunately delayed after the original contractor became insolvent. It’s great to see the progress being made on these much-needed affordable homes.”
This is Hyde’s first project with contractor Formation Design & Build, which began building the two low-rise blocks of apartments, duplexes and town houses in January 2024.
Formation Design & Build CEO, Sean O’Brien, said: “We’re pleased to be working with Hyde to deliver these sustainable, energy-efficient and high quality homes. This development will have a really positive impact on the local community.”
Steven Morrice added: “This is a great example of what we can achieve when we work closely with the Greater London Authority and local authorities.
“Thanks to our strategic partnership with the GLA, all the homes will be affordable, rather than the 30% originally approved via planning. These partnerships are vital, if we are to deliver the thousands of genuinely affordable homes needed across Greater London.”
QBE Europe’s surprise announcement that it was no longer providing bonds over £1.5m allegedly sent a shock wave through the construction industry, or did it really?
QBE attribute the decision to increased volatility within the industry driven by Brexit, the pandemic and political unrest that has disrupted supply chains. Over the past 2 years or so, on average, a construction company goes into administration every week, including some big players such as Buckingham, Henry and Readie, leaving insurers to pick up the pieces.
A spokesperson for QBE Europe said: “Following a review, we have decided to cease writing new construction-bond business from our London office.”
“This decision does not impact in any way our construction bond MGA for SMEs.”
“As always, we will continue to monitor developments in the sector and periodically review our market position.”
Nationwide Sureties Ltd, a specialist Bond provider and a major supplier of construction bonds for the UK Construction Industry responded to the news and wanted to reassure everyone that it is business as usual.
“Since 1999, Nationwide Sureties has provided well over £600 million worth of bonds and guarantees and can see no reason why QBE Europe’s decision will have any effect on our ability to place your business. We will utilise every avenue available to us that we have nurtured over the course of our 25 years in the surety market to ensure that all our Contractors and Sub-Contractors have capacity available to them for their Bonding needs”
“We have clients ranging from small independent businesses through to major blue-chip companies who have all successfully relied on our expertise in finding the right solution for each requirement.”
“Over the past 25 years, Nationwide Sureties Ltd has steadily grown, experienced all the ups and downs of the markets through the financial crashes and unprecedented inflation, Covid, Brexit and many of the other financial fluctuations, to become a major provider of bonds within the industry, and that growth will continue for many years to come. We will continue to support our 1000 plus clients and welcome any new ones with our one-on-one personal service.”
Pictured left to right Tony Steel, operations director of Band of Builders and Gavin Crane, CEO of Band of Builders
Hendy Van and Truck has pledged its support for a national charity which helps construction workers and tradespeople.
For the next 12 months, the Band of Builders charity will have use of two vans to help in its work to deliver life enhancing projects to those dealing with life’s most challenging circumstances.
The charity was set up in 2016 and since then has provided practical, financial and wellbeing support for members of the UK construction industry and these vans will be used across the country transporting tools and materials to a wide range of projects.
Hendy head of business Performance David Graham said the Ford Transit Custom and Vauxhall Vivaro will be sign written to further raise the profile of Band of Builders.
“Many of our customers are in the construction industry. From those operating large fleets to local small businesses, this charity is a perfect fit for us,” said David.
“The charity does an incredible job in supporting those in need and we wanted to get involved in supporting something which resonates with a key area of the business.”
Band of Builders (BoB) CEO Gavin Crane said: “We are forming a great charity partnership with Hendy Van and Truck and its generosity in providing us with the use of two new BoB liveried vans will make a massive difference in enabling us to take BoB on the road.
“As a charity, we visit construction sites, attend trade shows, and deliver projects right across the UK – so the vans will be essential in helping us transport materials to where they are needed.
“We would like to thank the Hendy Van and Truck for supporting BoB so that we can continue completing practical projects to help members of the UK construction industry and their families who are battling illness or injury.”
Family-owned Fox Group is taking delivery of four new zero tailpipe emission Volvo trucks which will be used to service a low carbon asphalt plant being constructed at its site in Leyland.
The order comprises three Volvo FMX Electric 8×4 Tridem tippers – to be followed shortly by an FH Electric 6×2 tractor unit.
Image: Volvo Trucks
Paul Fox, Managing Director of the Blackpool-based business, says: “Electric trucks are no longer on the horizon; they’re here, now, and key to reducing our carbon footprint. At Fox Group we see it as our role and responsibility to make the switch; we’re demonstrating to the whole of the sector that in the right applications, the transition from diesel to electric can be happening now.”
The FMX Electrics will be used to deliver asphalt from a soon to be established low carbon asphalt plant to local construction sites, before backloading sand from Fox Group’s nearby quarry into the plant – with zero tailpipe emissions and minimum noise. It complements the recent re-opening of the former Leyland railhead, which Fox Group is using to bring in enough materials daily to replace 95 eight-wheeler loads. The use of electric vehicles is vital on Fox Group’s journey to net zero, reducing the reliance on fossil fuel.
Image: Volvo Trucks
Supplied by Neil Crook, Customer Solutions Executive at local dealer Thomas Hardie Commercials, each new FMX Electric is plated at 32-tonnes and benefits from a hydraulically steered tag axle, operating with an insulated aluminium tipper body manufactured by local bodybuilder AJ Hayton.
In a first for the UK, one of the FMX Electrics has been manufactured with fossil-free steel to form the truck’s chassis frame. Produced using a completely new technology based on hydrogen, it ensures a much lower climate impact than conventionally produced steel. It is being gradually introduced to Volvo’s heavy-duty electric trucks, as part of plans to make them both net zero in operation, and when it comes to the materials used in their construction.
Fox adds: “We’re confident that with these electric Volvos, together with our other investments in electric plant and the railhead, we’re showing how we can transport large volumes of materials in a much more efficient and sustainable way.
Image: Volvo Trucks
“It’s the right thing to be doing for the planet and the communities we operate in, and we’re proud to see Fox Group leading from the front.”
Specified with five traction batteries, each FMX Electric runs on three electric motors, delivering 666hp of continuous power. The massive power is handled by an electromobility traction control system which ensures precision vehicle control even on slippery surfaces, all driven through Volvo’s popular 12-speed I-Shift gearbox – a long-standing favourite with drivers.
The FH Electric tractor unit will feature a matching driveline, but with six batteries, whilst operating at up to 44-tonnes. It will be used in conjunction with a 12m tri-axle tipping trailer, transporting stone from the railhead to local concrete plants.
To support the new vehicles Fox Group has extended its DC charging facilities, with the installation of additional recharging equipment at the railhead. Trucks will operate predominantly during the day, returning to base at night to recharge.
They have been supplied on five-year Volvo Gold Contracts which includes preventive maintenance, repairs, real time monitoring to keep track of the health of the batteries and battery replacements, should performance drop below agreed levels. The trucks are also backed by a full suite of Volvo Connect fleet management services to help boost productivity and energy efficiency.
Fox Group currently operates from 32 locations nationally, specialising in the supply and haulage of aggregates, recycled materials, muck-shift, earthworks and civil engineering projects. It has a fleet of more than 350 vehicles, consisting of six- and eight-wheel tippers, artics, low loaders and road sweepers to work alongside its impressive 4,500 pieces of plant and machinery, and a team of more than 850 people.
New regulations are set to permit the use of hydrogen-powered tractors, diggers, and forklifts on roads throughout Great Britain, excluding Northern Ireland. The consultation period will span four weeks, concluding on April 24th, 2024.
Image: JCB
Since 2017, hydrogen-fuelled cars, vans, buses, and trucks have been authorised for road use. However, non-road mobile machinery (NRMM) was omitted from the amendment to the Road Vehicles (Construction & Use) Regulations 1986, commonly referred to as C&U.
In February 2023, JCB secured special dispensation from the Department for Transport to conduct tests on its hydrogen-powered machinery, specifically a backhoe loader, on public highways.
The government is committed to promoting cleaner alternatives to diesel fuel. While battery electric power is suitable for smaller construction machinery, hydrogen is widely acknowledged as the most promising clean alternative for larger machines, provided that the necessary refuelling infrastructure can be established.
Nevertheless, the existing prohibition on hydrogen-fuelled NRMM from travelling on roads between sites poses a significant obstacle to progress in decarbonising the construction industry.
Anthony Browne, the Minister for Technology and Decarbonisation, commented: “Permitting hydrogen-powered tractors, diggers, and forklifts to utilise our roads is a pragmatic step towards reducing emissions. These proposals are integral to our strategy to decarbonise transport in the UK, with skilled jobs in British companies facilitating the widespread adoption of this cutting-edge hydrogen technology, thereby making it more accessible and commonplace.”
The arrival of GRS Group’s latest batch of Mercedes-Benz trucks means the operator is now running the country’s biggest fleet of low-entry Econic tippers.
The three new trucks take GRS Group’s Econic line-up to 15 – all are 3235 models, and were delivered by Dealers Motus Truck & Van and Sparshatt Truck & Van. Based at depots in Rainham, Kent, and Bow, East London, they are currently working full-time on construction projects in Central London related to the HS2 high-speed rail link.
They were chosen for the unrivalled field of view offered from the driver’s seat, a key factor in allowing the Econic to achieve the highest possible rating from Transport for London’s Direct Vision Standard – a full five stars.
But that’s not all they offer. The Econic combines this significant attribute, which helps make it one of the safest trucks on the road for both operating crews and other road users, combined with proven Mercedes-Benz build quality, reliability and Dealer support.
GRS’s trucks are powered by 7.7-litre six-cylinder engines that produce 260 kW (354 hp) and drive through 12-speed Mercedes PowerShift 3 automated manual transmissions. The operator chose ENA configuration chassis, with single front steer axles, double-drive bogies and rear-steer axles, which allow for an impressively tight turning circle. The resulting, enhanced manoeuvrability compared to a standard 32-tonne construction eight-wheeler is a major advantage for operation in the capital.
The Econic’s deep, panoramic windscreen and the full-height, glazed folding side door chosen by GRS afford unbeatable visibility. Coupled with a seating position which is much lower than that of a conventional construction vehicle, this allows drivers to make direct eye contact with vulnerable road users, particularly cyclists and pedestrians, a major advantage in enabling each to understand the other’s intentions.
The vehicles are also equipped with Active Brake Assist 5 emergency braking technology, which boasts an industry-leading pedestrian recognition capability, and an Electronic Parking Brake that is applied automatically when the engine is switched off.
They were acquired with competitively priced funding from Daimler Truck Financial Services, and will be maintained on Mercedes-Benz Service Contracts. All 15 have Thompsons Loadmaster Lite tipping bodies and are fitted with Samsara telematics.
Matthew Johansson, GRS Group’s Plant & Logistics Director, said: “Our decision to invest so heavily in the Mercedes-Benz Econic was driven by a desire to go beyond minimum requirements and set the highest possible standards for safety, while at the same time future-proofing our fleet against any tighter future restrictions. We believe these trucks are the best option available for work in the busy urban environment of London.
“The low-entry cab makes life easier and safer for our drivers – the reduced height floor means the cab is very easy to access, while the seating position allows them to keeps a much closer eye on other road users. We take our responsibility to operate in the safest way possible very seriously, so this package made the Econic a very attractive choice.”
He continued: “The trucks have now been well proven in a tough application – removing excavated materials from HS2 sites. We took the first examples early this year and the most recent arrived in October. Between them they’ve already shifted the best part of a million tonnes of construction spoil, and they often deliver aggregates on the return leg of their journeys too. I’ve no doubt we’ll be adding more soon.”
Peter Watson
Mark Starosolsky, Logistics Director for HS2 contractors SCS JV, added: “GRS have proved themselves to be a trusted partner with their investment in five-star Direct Vision Standard tippers.
“These Econics, with their lower driving position, place the driver at the same level as vulnerable road users. The cab design, with much larger windows, maximises visibility while minimising the blind spots present in traditional truck design.
“We’re committed to using the safest vehicles available and are please we could work with GRS to support this investment to deliver our programme.”
Driver Peter Watson is among those tasked with piloting a GRS Econic in and out of London. He added: “Some of the guys were unsure about the cab design when we first started with these vehicles – being so low down is not what we’ve traditionally been used to in a construction truck.
“However, we were all quickly won over. The panoramic view and the fact that you’re much closer to other people on the road makes the job of negotiating busy city streets much less stressful. As an all-round package the Econic is unbeatable for this role.”
As with all new Econics supplied through the manufacturer’s UK Dealer network, GRS Group’s trucks are covered by a three-year/160,000 km warranties.
