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August 11, 2020

The UK’s top 50 Contractor activity recovers to pre-coronavirus levels

RJ McLeod took this month’stop spot after being appointed the main contractor for the £500m Viking Wind Farm in the Shetland Isles, Scotland. This large development will consist of 150 wind turbines and work also includes the construction of substations, quarries and 62 miles of access road.

The runners up spot this month is ISG with five awards totalling £221m. The main contribution to this total will see them build another Amazon distribution centre in Dartford with completion expected to be in April 2022.

The latest edition of the Top 50 League Tables published by industry analysts Barbour ABI, highlights the number and value of construction contracts awarded during July. This month shows that the combined value of contracts awarded to the Top 50 was just under £4bn with a total of 165 projects.

For July, Morgan Sindall were the busiest contractor with a total of 13 projects at a combined value of £87m. Morgan Sindall currently sit in fifth place overall in the 12-month rolling league table, with a total of 128 projects valued at just over £1.2bn.

Tom Hall, chief economist at Barbour ABI & AMA Research said, “Top 50 contract awards recovered strongly in July to more usual levels of £3.9bn compared to 2019 average of 3.2bn and January to March 2020 average of £3.9bn. However, there was likely to be a bow wave of projects now being green-lighted after lockdown & furlough. given the uncertainty over the recovery in the wider economy the future planning pipeline is also currently uncertain”

Download the full report here: https://ubm.io/2WBolhM

August 6, 2020

CPS responds to planning White Paper

The Centre for Policy Studies today welcomed the publication of the government’s White Paper, ‘Planning for the Future’.

The think tank praised the focus on delivering sufficient new build homes and home ownership, which has been the core focus of its own work on housing. The CPS also welcomed the move towards giving communities greater say over development via binding local design codes. This echoes the recommendations of Alex Morton, the CPS’s head of policy, in his landmark paper ‘Create Streets’, co-authored with Nicholas Boys Smith.

The think tank also welcomed the goal of streamlining the planning process, trying to make the system deliver more land and an easier developer contribution process, while noting that the difficulty will be in the detail of how this works on the ground.

It noted that the proposed ‘growth zones’, the focus on the importance of SMEs in the housing industry, and the exemption of smaller sites from Section 106 payments, all echoed proposals in previous CPS papers.

Responding to the White Paper, Alex Morton said:

‘We need a simpler, faster, people-focused system to deliver the homes we need and keep Britain building. Local design codes can encourage development by making specific building requests easier to agree. By ensuring that all buildings complement the existing character of a neighbourhood, they boost a sense of place, create local buy-in, reduce opposition and allow for quicker and more profitable development.

‘Abolishing national prescriptions will clear the way for local people to set design codes on the issues that really matter to them through neighbourhood planning.

‘More broadly, these planning reforms are an intelligent first step in reform, but much more detail will be needed and many vested interests will try to slow and stop reform. We look forward to engaging on the detail and urge others to approach these reforms with a positive and supportive attitude – the housing crisis is one of the biggest issues facing our country and this radical paper is to be welcomed.’

August 6, 2020

Benefit of government intervention seen in infrastructure

The Q2 2020 RICS UK Construction and Infrastructure market survey results predictably show a contraction in output, as workloads decline across all sectors. Anecdotal commentary from respondents also suggests that labour shortages, some due to furlough, and difficulties in acquiring materials through the supply pipeline are causing projects to stall.

To gauge the impact of Covid-19 and subsequent lockdowns, the Q2 survey gathered additional data on project delays, productivity and bids coming in below cost. Significantly, 80% of the survey contributors noted that projects have been put hold across the UK with only 23% of contributors believing that projects which are currently on hold are likely to restart imminently. Anecdotal evidence suggests some projects are retendering due to costs.

In Q2 2020, 36% of contributors reported a decline rather than rise (net balance) in headline workloads, as they slipped across all areas covered by the survey. This including 27% more respondents reporting a fall in private housing workloads, ending a run of seven years of positive activity. A solid decline in output was also reported across public housing and the other public works categories, as some anecdotal evidence reported that council spending has seen a decline.

Meanwhile, for the first time since 2012, there was also a decline in infrastructure workloads with 17% more contributors reporting a fall (as opposed to a rise) during Q2. Commentary from respondents, suggests that as well as delayed spending due to uncertainty, a lack of labour is also impacting infrastructure projects despite the commitment to these projects still being very apparent.

The RICS market confidence indicator, a composite measure of workloads, employment and profit margins expectation for the coming twelve months remains close to a decade low. Within this, profit margins are expected to decline in the year ahead with a net balance of -41% of contributors anticipating a fall.

Interestingly, workloads are seen stabilising over the next twelve months. Activity is expected to be most resilient across the infrastructure categories with 40% more contributors expecting workloads to rise rather than fall in the year ahead. This seems to be a response to the government’s intention to boost infrastructure investment in the Budget.

Once again, financial constraints were cited as the most significant impediment to market activity with 70% of contributors taking this view. However, both labour shortages and material supply chain uncertainty were also cited in a high proportion of the anecdotal feedback. 63% of the survey contributors also noted that shortage of materials were posing a significant challenge to output.

Simon Rubinsohn, RICS chief economist, comments: “A weak Q2 survey was only to be expected given the impact of the pandemic on the construction sector. Slightly more ominously, forward looking indicators are also still fairly cautious, apart from the infrastructure sector which should benefit from recent government initiatives. However, it is important to recognise that more timely announcements around Permitted Development Rights and the planning system (both came after the survey closed) should in all probability provide a welcome lift to expectations around private housebuilding, notwithstanding the uncertain macro environment.

“Although for the time being, the signs that tenders are not consistently coming in significantly below cost estimates is encouraging, the hit to productivity evident in responses to the survey is more worrisome and if current work patterns need to be sustained for the foreseeable future, there will inevitably be cost implications.”

Hew Edgar, RICS head of UK government relations, added: “While the survey shows the inevitable impacts of Covid, it also cites barriers to construction that could be removed with a bit more impetus and innovation from government.

“The RICS medium to long term housing report and recommendations, for example, underlines our past suggestion of a new land classification of Amberfield. ‘Amberfield’ is ready to go land, identified by LA’s and communities as favourable for development in line with local needs. It would reduce costs for developers including local authorities, and enable SMEs and self/custom builders to generate homes at speed. Lifting this particular barrier, could even be some way to being that mythical silver bullet as it would address multiple concerns cited in the survey including planning delays and the drop in housebuilding, as well as spawning activity in the supply chain and thereby easing materials shortages.

“We’d also like to see further support for modular housing, which has the potential to be a star contributor to activity, with the added bonus of positively impacting green targets and product quality.

“Construction and Infrastructure need a further boost from government through long term capital investment, support for innovation, and continued streamlining of planning as the sector battles Covid. It is reassuring that the government recognises the impact of fiscal stimuli and the role that planning can play in kickstarting recovery, but it must do more.”

August 5, 2020

Construction insurance market: Significant increase in insurance premiums

Mactavish, the specialist outsourced insurance buyer and claims resolution expert, warns the construction insurance market is growing increasingly distressed and that premiums, which were already rising prior to the impact of Covid-19, have been turbocharged in the period since lockdown commenced. As well as rising premiums, it warns construction companies to expect considerable erosion in the quality and extent of the insurance cover they buy and to remain extremely vigilant through upcoming insurance renewals.

It also says that some construction firms have made dramatic changes to their operations in response to Covid-19, which has altered their risk profiles, and this could mean current insurance policies may not pay out in the event of a claim. The second major risk, which, is almost unique to the construction sector, is that new insurance coverage restrictions can suddenly place firms in breach of commercial contracts that form the basis of existing projects.

Bruce Hepburn, CEO, Mactavish said: “Some of these problems are also affecting other sectors, but there are two factors that make them particularly challenging for construction companies. The first is the difficulties posed to the sector by the end of lockdown and return to work, which are far from straightforward on active construction sites. The second is the way in which commercial contracts create a complex web of liabilities and obligations across contractors, sub-contractors and other elements of the supply chain.”

Understanding the challenges:
The problems faced by the construction industry in the Professional Indemnity (PI) market have been well documented, but other lines have also fallen prey to unforgiving macroeconomic conditions in recent times. Construction All Risks (CAR) insurance, for example, has witnessed increasing restrictions in cover and a doubling of premium rates over the past 24 months.(1) Meanwhile, insurers’ severe economic losses following the Covid-19 pandemic, estimated to top $200bn, will only lead to further coverage erosion in the guise of new exclusions, higher deductibles, lower limits and more disputed claims.

It is against this tumultuous backdrop that the construction sector must contend with two significant challenges. Firstly, businesses’ operational changes in response to Covid-19 have altered their risk profiles. In some cases, these changes are so significant that current policies may fail to respond in full in the event of a claim. This problem is intensified for those construction projects in which various contractors and subcontractors, each with their own unique risk exposures, have sourced coverage independently – subject to separate terms and obligations. Even when wrap-up policies are employed, such as an OCIP or a CCIP (in which the project sponsor or lead contractor sources the coverage for all participants) these arrangements require all parties to comply with specified operational conditions to ensure certainty of coverage. Managing this mosaic of policies at a time of rapid and ongoing change represents a particular problem for construction companies of all types.

The second challenge – and one which is almost unique to the construction sector – is that new coverage restrictions can suddenly place firms in breach of commercial contracts that form the basis of existing projects. This can expose multiple parties. First, the contractor must ensure the appropriate cover is in place to comply with the insurance requirements contained within the commercial contract, which can be thrown by sudden reductions in limits or removal of cover for specific types of work. In addition, contractors might then expect to subrogate to subcontractors many of the losses incurred following a claim. However, to do so it is crucial that the subcontractor’s coverage also complies with master policy requirements. This is becoming more of a challenge under current market conditions, where substantial restrictions in cover are commonplace and policies become increasingly unreliable. As a result, contractors might find themselves unable to exercise their subrogation rights, leaving them ultimately liable for the loss.

Bruce Hepburn said: “Managing multiple overlapping policies while insurers are changing their terms and exclusions on a frequent basis is akin to playing a never-ending game of 3-D chess. The sheer complexity of the task means that errors are almost inevitable and, in an increasingly tough claims environment, there will be more disputes down the line.

What should insurance buyers do?
Firstly, Mactavish advices construction firms to start from the ground-up. They should reflect on their insurance programmes and develop a robust understanding of the key scenarios they want to be covered and the relevant structures of project and parties involved. All stakeholders must understand what coverage is contractually required for a project, and there should be a means through which they can communicate and collaborate on coverage developments and concerns; this is crucial where coverage changes might place a firm in breach of contract, or where additional disclosure obligations under the policy are likely to be required to maintain cover. Where there are rights of subrogation, firms should designate responsibility for overseeing the validity of the underlying policies that are placed.

Secondly, the other crucial area of focus in a hard market – of the type not seen for at least 15 years – is how to market your risk effectively. This involves improving insurers’ understanding of your exposures and differentiating it from those of your peers. Developing a bespoke risk prospectus is an effective way of ensuring that insurers will not view your risk as a commodity nor sell you a standard commoditised policy, and puts you in the best position to achieve improved, reliable coverage at a more competitive rate.

Mactavish specialises in helping construction firms enhance their chances of securing reliable insurance policies or challenging that claims have been rejected.

July 8, 2020

WMCA announces multi-million-pound investment

Work to breathe new life into a derelict industrial site close to the heart of Birmingham is being accelerated following a multi-million pound investment by the West Midlands Combined Authority (WMCA).
More than £4m is being made available by the WMCA to clean up and unlock another three acres of brownfield land at Ickneild Port Loop in Edgbaston.

The funding paves the way for developers Urban Splash and Places for People to build a further 138 homes using cutting edge construction technology. At least 20% of these homes will be affordable under the WMCA’s unique definition of affordability.

House-building is seen as critical to the West Midlands’ economic recovery from coronavirus as it helps to create and support jobs while also providing certainty for the region’s construction sector. The WMCA, led by mayor Andy Street, is also committed to a brownfield-first approach to housing, which sees derelict industrial sites cleaned up while precious greenbelt land is protected.

A focus on house-building and brownfield sites formed part of the region’s £3.2bn investment blueprint submitted to government, with the region seeking extra cash to extend its brownfield-first scheme. Ministers have already signalled their intention to back the region’s plans, with £84m of new investment made available last week.

Andy Street, the mayor of the West Midlands, said: “One of my key priorities since becoming mayor has been to been build more homes to meet demand, whilst also protecting precious greenbelt land. Before the coronavirus outbreak we were building record numbers of homes, and doing so on old, derelict, industrial sites, thanks to our brownfield-first approach.

“Now house-building has an even more important role to play in the West Midlands. Not only do we still need to reach our target of 215,000 new homes by 2031 – protecting greenbelt land in the process – but we now need house-building and the wider construction sector to help re-boot our regional economy following the coronavirus pandemic. The government appears to be behind our plans, and last week wrote us a cheque for £84m to continue our pioneering brownfield remediation work.

“Icknield Port Loop is a prime example of what we are trying to achieve here in the West Midlands, and I am delighted to see this new waterside community come to life.”

Components for many of the new homes at Port Loop, which will eventually be part of a new 1,150 home waterside neighbourhood, are being built off-site in factory conditions using Advanced Manufacturing in Construction (AMC) before being delivered and assembled quickly and efficiently at Port Loop to produce quality homes.

AMC allows entire building sections, complete with insulation, fitted plumbing, electrics and finishes to be manufactured off-site and installed more quickly and with less waste. Last month, ten homes were craned in and assembled at Port Loop in just four days with social distancing in place.

Cllr Mike Bird, WMCA portfolio holder for housing and land and leader of Walsall Council, said: “Having been awarded three Structural Timber Awards, a Sunday Times British Homes Award and the prestigious Housing Design Award, the quality of these new homes shows us just how good AMC can be.

“We’re proud that alongside design and construction excellence, we can offer 20% of the homes as affordable housing, under the WMCA’s own locally determined definition.

“What the project results in is a shining example of the sort of housing developments on derelict industrial land that will help us secure a green and inclusive economic recovery for the West Midlands.

“We are doing this through making homes more sustainable and affordable whilst also providing jobs, training courses and apprenticeships for local people to get the skills needed to work in the AMC sector.”

Mark Farmer, chair of the WMCA’s AMC advisory panel, added: “The announcement of this funding deal demonstrates the clear commitment that WMCA has towards not just delivering more high quality housing in the West Midlands but in driving forward its ambitious AMC agenda.

“Urban Splash are at the forefront of housing design and production innovation and through their Memoradum of Understanding with the WMCA both parties are now leading the way in modernising how we build new homes in this country.”

The pioneering Port Loop development is being delivered by a joint venture partnership of Urban Splash and Places for People, alongside the landowners Canal & River Trust and Birmingham City Council.

Speaking on behalf of the joint venture partners, project director Adam Willets, said “Innovative and forward-thinking construction methods are helping us create a sustainable new community at Port Loop.

“We have been working alongside architects ShedKM and Glenn Howells to create a diverse housing offering, with typologies which have been designed with internal layouts that provide flexible space for residents.

“Using sustainable modular construction technology enables us to spend more time on developing quality inside and outside spaces for a growing city.”

When completed, Birmingham’s newest waterside neighbourhood will include more than 1,000 homes over 43 acres and new spaces for walking and cycling along the Old Line canal.

More than 100 of the homes have been delivered or are onsite and 40 are already occupied by residents who started moving in last year. A one-acre public park has also been completed and is the first of many green spaces that will eventually feature at Port Loop which is located off Ickneild Port Road.

In March, WMCA and Urban Splash signed a Memoradum of Understanding which will aim to deliver almost five percent of the 215,000 new homes the WMCA’s wants to see built in the region by 2031.

Construction of the Port Loop development continues at pace following the £4m funding from the WMCA for the clean-up of a further three acres of derelict industrial land

July 3, 2020

Construction firms eye return to work with bank support

A South West construction company is protecting its workforce as it begins to reopen some of its sites with the support of a multimillion pound Coronavirus Business Interruption Loan Scheme (CBILS) loan from Lloyds Bank.

Chippenham-headquartered Stonewood Builders took the decision to close all sites back in March, when social distancing measures were first introduced.

Along with furloughing more than 80% of its 180 employees, the business contacted long-term banking partner Lloyds Bank to provide the capital to cover ongoing operating costs such as rent, insurance and non-furloughed staff’s salaries. The loan also gives the business medium-to-long-term stability as it emerges from the disruption caused by coronavirus.

Stonewood Builders works with professional and private clients across the South West on traditional and contemporary design, building and maintenance. Recent projects include The Newt in Somerset, Lansdown Crescent in Bath and Icomb Place in the Cotswolds.

The company has now started to return to some sites, with strict social distancing rules in place.

Stonewood Builders has been operating since the 1970s and became a limited company in 2001. It became a customer of Lloyds Bank in 2009, when it had just 45 employees, and has since increased turnover from around £2.5m to just under £45m.

Commercial director Ben Lang sees Lloyds Bank’s understanding of the business and its recent growth as key to securing the loan.

He said: “Lloyds Bank knew we could demonstrate that we are robust as a business, and that we use our money wisely. It understands where we are and our plans for future growth, and has made the support available nice and clear, and every step of the process transparent. We of course have a duty of care to our amazing staff. Those who have continued to work, including directors, have voluntarily sacrificed their salary to furlough levels, as an act of solidarity and to further support the business. With their safety our priority, we can now slowly begin to return to work, and look to the future once more.”

John Evans, relationship director at Lloyds Bank, added: “Like with so many businesses, the coronavirus pandemic hit at a time when Stonewood Builders was growing at rapid scale. With our support, we hope Ben and the team can get back on track as soon as possible. During this unprecedented and extremely challenging time, we remain by the side of firms across the UK to help them do the same.”

June 30, 2020

Prime minister announces further £84m for West Midlands

Up to 7,500 new homes across the West Midlands are to be built on former industrial land after Boris Johnson today announced an extra £84m to expand the region’s trailblazing brownfield regeneration programme.

Unveiling a £5bn infrastructure investment package to help drive the UK’s post-Covid-19 recovery during a visit to Dudley, the prime minister revealed his economic stimulus included £400m to support brownfield redevelopment across Britain – something the West Midlands has been campaigning for.

The prime minister’s decision to award more than a fifth of that funding to the region means hundreds more acres of derelict land can now be regenerated, building on the footsteps of numerous stalled schemes the West Midlands Combined Authority (WMCA) has unlocked over the last two years.

Since the £100m Brownfield Fund was given to the WMCA as part of its housing deal in March 2018, sites such as Friar Park in Sandwell, the largest brownfield housing site in the region, have been made ready for redevelopment by the WMCA.

Last week the region submitted a £3.2bn West Midlands investment plan to government, which included a request for further funding for brownfield land regeneration.

Andy Street, the mayor of the West Midlands, said: “The West Midlands has been leading the way since 2018 on regenerating brownfield land to create thousands of new homes, and I am pleased the prime minister has given us the cash needed to keep the work going at pace. It is also encouraging that just one week after submitting our £3.2bn investment plan to government, one of the requests has already started to come to fruition.

“Our Brownfield First policy is critical as it not only regenerates contaminated, derelict old land – which in some cases has blighted communities for decades – but it also allows us to protect our precious greenbelt at the same time.

“This latest funding will allow hundreds more acres of former industrial land to be developed into thousands of new homes, something that will be critical as we look to re-boot our economy following the coronavirus pandemic.”

The mayor said the region was now ready to move quickly in deploying the new funding using its widely acclaimed Single Commissioning Framework to support the creation of vibrant new communities, affordable homes, innovative construction methods and quality place making, building momentum for a regional recovery.

Cllr Mike Bird, leader of Walsall Council and WMCA portfolio holder for housing and land, said: “Our economic recovery from Covid-19 gives us an opportunity to build back better, by providing quality, affordable homes and decent jobs for local people in a way that protects our environment.

“Our Brownfield First policy means we are using our funding to drive new developments on derelict, former industrial land wherever possible.

“This funding means the WMCA can continue to ‘invest to unlock’ and clean up brownfield land for developers while laying down minimum standards of affordability, design and energy efficiency.”

The brownfield package announced by the prime minister for the West Midlands will see:-

  • Construction commencing on new homes as quickly as possible
  • Land in the region’s comprehensive brownfield sites pipeline accelerated
  • The WMCA supporting advanced manufacturing in construction (AMC) techniques in projects it helps fund and support in order to speed up construction and deliver energy efficient homes for local people
  • The delivery of a minimum 20 per cent of affordable housing in WMCA funded schemes using the authority’s new, local definition of ‘affordable’
  • Funding delivered through the procedures and principles set out in the WMCA Single Commissioning Framework, and continuously monitored to ensure delivery of those requirements on the ground.

Prominent projects announced or underway as part of the WMCA’s ‘Brownfield-First’ strategy using funding previously awarded to the region include:

  • Friar Park, the largest brownfield housing site in the region, now becoming a 750-home community in Sandwell. The scheme follows the purchase of an old sewage works by the WMCA which had sat derelict for more than 30 years with no developer taking it on
  • Steelhouse Lane in Wolverhampton – 151 new homes at a former industrial site
  • Bull Street in West Bromwich, an abandoned multi-storey car park to be turned into new homes
  • The demolition of the eyesore Cavendish House office block in Dudley which will form the Portersfield development featuring retail, leisure and housing.

The WMCA submitted a business case last year for new brownfield funding that could be deployed within 12 months to build on the nationally leading work in brownfield regeneration and housing delivery undertaken by the WMCA since it was formed.

The business case provided evidence of how the West Midlands had the capability, pipeline of projects and capacity to make that happen while highlighting the delivery record of the WMCA.

Today’s announcement also follows an effective 12-month lobbying campaign by the region for more funding for brownfield regeneration.

While the £84m funding is seen as a welcome step, it remains just the latest tranche of investment that the West Midlands needs from government if it is to unlock the region’s huge brownfield regeneration ambitions.

The WMCA is seeking more funding so it can further realise its true potential and ambition for urban regeneration and the delivery of high-quality affordable homes.

With an impressive pipeline of projects and close, productive relationships between the public sector and business community, the West Midlands programme aims to continue leading the way nationally in brownfield land regeneration.

June 30, 2020

Manufacturing businesses emerge from lockdown with support from Lloyds Bank

A Worcestershire-based specialist steel fabrication business remains open with the support of Lloyds Bank and hopes to realise its expansion plans post-Covid-19.

NHS supplier, All 4 One Engineering is continuing to process orders for the industrial roofing and cladding trades after working with the bank to secure a six-figure funding package via the government-backed Coronavirus Business Interruption Loan Scheme.As well as providing materials to NHS construction projects, the business is also manufacturing essential steel products for healthcare trusts across the UK. The funding will enable it to continue supporting the NHS while managing cashflow issues caused by the temporary closure of construction sites during the pandemic.

Prior to Covid-19, the £3m turnover firm had secured planning permission to double the size of its 22,000 sq ft Bromsgrove production facility and plans remain in place to expand the business when economic conditions improve.

Kim Williams, managing director of All 4 One Engineering, said: “We’ve been fortunate enough to remain open for business with a reduced team despite the impact of coronavirus on the construction industry. However, like all businesses, our suppliers and clients have been affected which has had implications for our cashflow.

“The rapid arrival of the funding has provided us with the short-term flexibility to weather the storm and continue to support projects for clients including the NHS.”

Ian Monk, relationship manager at Lloyds Bank, said: “We’re supporting businesses up and down the country as the current crisis continues to affect critical sectors, including manufacturing. We’ve worked with All 4 One Engineering for more than 15 years and it is clear that, prior to Covid-19, it was performing well. This funding will be critical in the short-term and hopefully leave them in a strong enough position to revisit their growth aims on the other side of the crisis.”

June 24, 2020

Further drop in contract awards for May but signs of improvement

The total value of construction contract awards in May 2020 was £2.4bn based on a three-month rolling average. This is a decrease of 45.9% on April and is also 52.3% Lower than May 2019. Contract awards numbers in May decreased by 16.2% to 263, approximately 73.8% below the recent high point of 1,003 recorded for February 2020.

The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI, highlights levels of construction contract values awarded across Great Britain.

The residential sector dominated the share of contract awards with a total of 31.4%. The largest project awarded for May was the Audley Square residential development valued at £250m. Since reporting on contract awards in May, 14 of those projects have now confirmed to be on hold, at a total value of £63m.

The total value of planning approvals has remained consistent throughout 2020 when looking at the three-month rolling value average, with May 2020 at 7,540, which is just 1.2% down on pre-lockdown figures in February 2020.

Commenting on the figures, Tom Hall, chief economist at Barbour ABI and AMA Research said, “A continued decline in contract awards was expected for May and is in line with the Government lockdown guidelines. However, we anticipate a slight increase in contract awards for June as restrictions continue to be eased and hope that the strong planning pipeline will come to site sooner, rather than later, as the sector looks to bounce back post Covid-19.”

Download the full report here: http://ubm.io/2FRLrwm

June 18, 2020

WMCA funds region’s first training courses on construction simulators

Local unemployed people are learning the latest construction skills using virtual reality simulators, thanks to training funded by the West Midlands Combined Authority (WMCA).

The WMCA has joined forces with Solihull College & University Centre, Birmingham-based RMF Construction Training Academy and education equipment provider Tenstar Simulation to install four simulators at the College in the first training programme of its kind in the region.

The move is one of a number of WMCA initiatives to train local people in the construction skills needed to help the region build its way out of the Covid-19 economic shutdown.

Andy Street, the Mayor of the West Midlands, said: “It’s great news that we are able to fund training on construction simulators at Solihull College & University Centre, working in partnership with RMF Construction.

“Construction was one of the best performing sectors before the coronavirus outbreak hit, and we know that large infrastructure projects, such as HS2, will be key to our economic recovery.

“Training local people to operate modern plant is a crucial part of the advanced construction skills that the industry will need over the coming years. The training we are funding will also help make sure that the jobs being created go to local people.”

The WMCA is funding training on the equipment through its Construction Gateway programme, which offers unemployed people free construction training and a guaranteed job interview at the end of the course.
Construction simulators offer a number of benefits and significantly reduce the time needed for training on real machines, meaning the environment will benefit from lower carbon emissions from diesel-powered engines.

The main benefit to local people and the industry is that more learners are able to learn real-life construction skills, gaining a Level 1 qualification, and move on more rapidly to gain Construction Plant Competence Scheme (CPCS) trained operator cards.

John Callaghan, Principal and CEO of the College, said: “We are delighted to be working with the WMCA and RMF Construction to develop new, innovative ways to address the skills gap in the construction plant sector.
“Learners will be able to build their confidence and competence on a variety of machines in a controlled setting before moving on to real construction plant.

“The simulators will also help to ensure we are Covid-19 compliant and reduce our carbon footprint.”

The training is for adults aged 19 and over, particularly unemployed people and ex-offenders.

Up to 50 residents are currently learning on the simulators in a five-week pilot at the college, which plans to incorporate simulated training into its WMCA-funded construction courses from this September.

Cllr George Duggins, WMCA portfolio holder for productivity and skills and leader of Coventry City Council, said: “The Construction Gateway is a great opportunity for unemployed adults, or those on short-hours contracts or low-skilled jobs to improve their skills and gain new qualifications as we recover from the Covid-19 lockdown.

“I’m pleased that this new initiative at Solihull College & University Centre is enabling local people to increase their technological knowledge, with the opportunity to gain new jobs in construction where we know machine operators are still in high demand.”

Dara McCarthy, operations manager at RMF Construction Training Academy, said: “Although plant operations in large earth-moving and transportation vehicles will always involve an element of risk, learners have previously only been able to gain skills and competence by working on these machines.

“Simulators are a safe way for students to practise and measure their performance in realistic scenarios, while reducing the impact on the environment and damage and wear to real plant.”

Simon Hogg, area sales manager UK at Tenstar Simulation AB, said: “The construction sector is increasingly using more advanced technology, such as GPS systems, in modern plant machinery. Construction simulators mean the industry gains highly skilled plant operators with the skills needed to operate this machinery in the modern construction environment.

“Once users complete the simulated training activity, we are able to produce a report detailing the individual’s performance. This allows us to drill down into finer detail, highlighting areas that may require improvement. This feedback engages the learner and ensures a correction can be implemented over a short period of time.”

To sign up for construction training, contact the National Careers Service West Midlands on 0121 296 5550, or you can find out more information about the National Careers Service via https://nationalcareersservice.direct.gov.uk/ or by calling 0800 100 900.

Residents can access links to new job opportunities and online adult education training by visiting the WMCA’s Covid-19 support site at https://beta.wmca.org.uk/what-we-do/covid-19-support/online-resources/

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