Thursday, 28 September 2017

Research Indicates Incorrect Home Insurance Could Be Costing Britons £125m A Year

A new analysis of government statistics undertaken by a specialist home insurance provider highlights the fact there could be over three million unoccupied homes in the UK at present, with 1.3m properties without the correct home insurance.


As of April 1st 2016, there were 23,928 properties recorded as vacant and owned by local authorities in England. This number has declined significantly since the turn of the millennium, where local authorities in England recorded owning 87,200 vacant dwellings.

Of the 24,000 empty buildings currently owned by Councils in England, 3,152 are properties within highly desirable London Boroughs, which have been vacant for over six months and are not currently available for letting on the property market.

Figures published in August 2017 by the Resolution Foundation have shown that between the years 2000 and 2014, the number of people with privately-owned, multiple properties in the UK, has risen from 1.6m to 5.2m. The analysis suggested that the majority of these owners were not landlords, with perhaps as many as 3.4m people having an empty property that was not being used to let.

During 2017, the team at specialist home insurance company, have noticed a large increase in the number of home insurance policies taken out for properties with no occupants and not intended to be sublet.

Rob Rushton, Head of CoverBuilder said:

‘‘In recent months we have seen a significant rise in the number of home insurance policies that require insurance for an unoccupied property. A second home can be acquired for various reasons: through inheritance, people working abroad, properties purchased for holiday homes, or purely used as an investment’’.

Insurance providers will define ‘unoccupied’ as a building that is vacant for over 30 days. Unoccupied properties are at much higher risk of damage, particularly as a result of vandals and thieves.

CoverBuilder surveyed 574 owners of unoccupied properties and were alarmed to find out that only 219 (38%) were protected with insurance that covered unoccupancy.

Damian Downey of CoverBuilder said:

“The number of properties incorrectly insured is concerning. With the statistics that we’ve been analysing, there could be 1.3m empty houses with insufficient home insurance across the United Kingdom. If 12% of UK houses are unoccupied for over 30 days, then in line with current, domestic house insurance claim statistics, £125m is potentially being dismissed due to insufficient insurance each year.

He continued

“As one in ten of the UK adult population is a multi-home owner, I would urge anyone with an unoccupied property to check their policy documents and make sure that they have the correct home insurance cover for their property’’.

For more information on unoccupied house insurance, visit

from The UK Construction Blog

Wednesday, 27 September 2017


Bentonite, a clay substance which is often generated from the alteration of volcanic ash, is renowned for its water absorption. These properties make it a valuable material for a wide range of uses and applications, particularly as a waterproofing material in construction of belowground structures such as basements.

Bentonite’s availability in the marketplace in various product forms is well-known – it’s been around for hundreds of years. However, the appearance of natural sodium bentonite in Sika BentoShield MAX LM, a fully-bonded, needle-punched membrane and integrated polyethylene flexible laminate, represents a unique offering. The polymer-modified product, which is applied to external surfaces of belowground structures exposed to ground water, is the only bentonite system that’s BBA-approved to BS EN 1928:2000 standard relating to flexible sheets for waterproofing.


The sealing technology of Sika BentoShield MAX LM combines the superior swelling performance of the sodium bentonite with high strength polypropylene geotextiles. The two geotextiles are interlocked by a needle-punching process forcing fibres from the non-woven layer through and beyond the woven layer. This process forms a physical link between the geotextiles and locks the bentonite granules in between, keeping them contained. The system is finished with a polyethylene membrane which is laminated to the back which gives an additional level of protection.


Fully Bonded

During installation, the woven geotextile layer bonds to the fresh concrete due to the non-woven layer that is pulled through and beyond from the needle punching process.
When the polymer-enhanced natural sodium bentonite granules get wet they form a dense waterproof gel protecting the structure.

Sika BentoShield MAX LM is designed for use in below ground construction. It differs from other BBA-accredited geosynthetic clay liners as it contains specially formulated polymers to enhance performance in contaminated land with a high salt concentration. As well as basements, it is used in cut-and-cover tunnels, backfilled walls and in a variety of more demanding applications, depending on whether water is to be kept in or out.

The seams for vertical applications of many bentonite membranes are vulnerable to failure. Sika BentoShield MAX LM laps, however, are sealed with a tape to provide a watertight solution as well as protect against debris and water intrusion during backfilling the system. The seams on horizontal sections can be lapped and protected with a bed of paste created by mixing BentoShield granules with water. Alternatively, tape can be used on higher risk sites.



Sika BentoShield MAX LM can also be post-applied to concrete structures where pre-applying is not possible. The membrane is securely held in place with a robust fixing system.

Tested and approved to the latest industry standards, Sika provides a 10-year guarantee or 15 when it is used as part of a dual system from Sika.

Sika also provides, free of charge:

  • Full specification and detailing support
  • Sika tool box talk training
  • Site support and inspection

Easy to install, flexible and robust, Sika BentoShield MAX LM doesn’t require a primer or protection board. Its ability to mechanically bond with the concrete, which in turn virtually eliminates water tracking in the event of damage, makes it the ideal membrane for belowground structures dependent on retaining long-term watertightness.

For more information visit:

from The UK Construction Blog

Thursday, 21 September 2017


The Specialist Engineering Contractors’ (SEC) Group is calling on the Government to solve the UK construction industry’s long-standing and crippling payments problem, labelling the current cashflow position as “critical”.

In a recent article, the SEC Group – which represents SMEs in the construction engineering sector – warns that its members are increasingly being propped up by their directors’ wallets as an interim cashflow ‘solution’.

They cite Funding Options figures that show directors lent their construction businesses £38 million in 2015/2016, up from £29.7 million in 2013/2014 – a jump of 28 per cent in just two years.

Unsurprisingly, the SEC Group labels this rise as “unsustainable” and has urged the Government to introduce legislation to solve the problem.

We agree wholeheartedly with the SEC Group – the cashflow issue has affected growth of construction businesses of all shapes and sizes for too long and needs to be addressed urgently.

However, we feel that while the Government has a role to play in improving B2B payments in the industry, businesses themselves can do much more to take greater control of their finances.

We’ve partnered with Invapay, an Optal company, to make this easily achievable. Our unique proposition – a combined full-service payment solution – provides construction businesses with a quick and effortless way to manage their payment process and maximise working capital benefits.

With Open ECX and Invapay, businesses are able to make their payment processes simple, streamlined and effortless from the moment a payment application is made right through to the point that it is paid.

Our cloud-based paper-free WebContractor solution manages the first half of the process, giving subcontractors and suppliers the ability to submit invoices quickly and easily through an online portal. The automated service then processes the application, sending verification notices emails to the applicant and the QS, allowing invoicing authorisation to be granted hassle-free.

At this stage Invapay’s payment solution comes into play. With no changes to processes and systems, Invapay’s business-tobusiness payment platform allows businesses to optimise their payments to suppliers and subcontractors.

Through Invapay, businesses can take greater control of their cash flow – across working capital, credit lines and third party funds – ensuring long term cash flow benefits for buyers and subcontractors.

For more information and to download a free payments guide visit:

from The UK Construction Blog

Wednesday, 20 September 2017

Going Digital for the Digital Enterprise

As engineering firms move toward developing a digital strategy, a new phrase – going digital– will resonate with engineering, architectural, and construction professionals, as well as infrastructure asset owners, is now part of the infrastructure lexicon. Going digital refers to the business transformation being realized as infrastructure professionals take advantage of a connected data environment by leveraging a cloud computing platform that digitally connects and converges people, processes, data, and technology to yield significant benefits.


In its broadest sense, going digital means moving data that used to be locked in application-specific files or even paper documents, and making the data inherent in these files and documents available to be consumed and analyzed by other software and processes. Through going digital, 3D digital engineering models created during the planning and design phase can provide the interactive 3D environment for operations and infrastructure asset performance modeling, leveraging cloud computing, predictive analytics, and operational data from the Industrial Internet of Things and other sources. These models can now be referenced throughout the full lifecycle of an infrastructure asset, improving performance, safety, and sustainability.

But what about an infrastructure asset that does not have a digital engineering model? Reality modeling, an exciting technology that involves the process of capturing existing facilities and site conditions with the use of digital photographs and/or point-cloud data – enables the rapid creation of 3D, engineering-ready mesh representations of the existing, as-operated conditions. The process is simple: overlapping photographs taken with a camera either handheld or mounted on a UAV are uploaded to a cloud processing service that automatically reconstructs the 3D model for use in engineering applications. Further detail and accuracy can be added to the model through close range photos or point-cloud data from laser scanners.


In the past two years, reality modeling has gone from being a specialty service to a mainstream process by engineering and construction firms, and by owner-operators of infrastructure assets. The speed and ease of reality modeling now makes it possible to do nearly continuous surveying to monitor construction progress and as-operated conditions. And, the resulting 3D model components can be classified and hyperlinked to engineering models, documents, and specifications (the ET or engineering technology), historical operations data, (the IT or information technology), and real-time IoT sensors (the OT or operations technology). By going digital, the digital engineering model, whether built from scratch through design and engineering application software, or created from existing conditions through reality modeling, can deliver new value as an immersive environment to access open and live information for visual operations of infrastructure assets—bridging ET, IT, and OT—and with that visibility comes the empowerment to improve asset performance.


Making the Digital Enterprise Real

A going digital strategy begins with information technology and seeks convergence with operational technology. As such, realizing the digital enterprise would involve adding engineering technology to complete the convergence. While going digital means different things for different enterprises, in our industry, users of infrastructure engineering can take advantage of new form factors for connecting and computing in their pursuit of it. For many of our large users, the strategy is an opportunity to improve their business model for better asset performance and capital project cost reduction.

An effective digital strategy can realize benefits through all phases of the infrastructure lifecycle. In the CAPEX phase, a digital workflow can take advantage of better decision making with immersive design and collaboration in construction. For OPEX, the value of digital engineering information provides performance improvement opportunities for owner-operators seeking to maximize their assets. The core value is reducing TOTEX (total expenditure) as owners seek to manage and mitigate the risk associated with large capital projects and the ongoing maintenance over time. Owners require information from all phases of the project lifecycle to be useful in the asset management or maintenance management systems when the asset reaches handover, which is fully realized through a digital strategy.


For engineers, going digital can mean new business opportunities, such as conceptioneering, the process of quickly creating multiple iterations of a conceptual infrastructure design model with engineering content, at the beginning of a project, to constructioneering, the process of bringing engineering data directly to the field to drive construction workflows and equipment, during construction and into operations. It can also mean inspectioneering, which is the process of bringing as-operated and continuously surveyed, engineering reality meshes into digital engineering environments, enabling engineers to inspect and evaluate infrastructure assets from any location. And, lastly, to productioneering, which is the process of leveraging the digital engineering model, with live and open connections to IT and OT data, and predictive analytics, as an immersive environment for visual operations, decision support, and performance improvement. These are all examples of going digital, and Bentley is providing the solutions for our users to get there.

from The UK Construction Blog

Sunday, 17 September 2017

How To Get a CSCS Card

If you are working in construction in the UK, you have properly heard about the CSCS card. But what is it exactly?

CSCS stand for Construction Skills Certification Scheme, and the whole thing was invented about 25 years ago. It is a card that provide proof that an individual has the required training and qualifications to carry out work on a construction site.

What does it cost?

Before you can apply for the CSCS card you must be certified. That normally requires that you take a CITB Health Safety and Environment Test. Such a test cost £19.50 to take.

Once you have passed that test, you can apply for the CSCS card, which will cost you £30.

But be aware! There have been examples of companies overcharging the prices for the tests. These mentioned fees are the standard, so if you’re being charged more than that, you should make sure that you understand what additional services you will receive. To know more about booking the appropriate test, read more about that below.

Booking the test

At first glance, the whole system can appear a bit complicated with loads of different coloured cards showing people’s qualifications in different areas of construction skills. The number of colours has recently been reduced, but to make it more complicated, one colour card can cover many things. However, things have been made easier now through On the site you’re able to use their online card-finder to figure out what kind of test and CSCS card you need, based on your occupation.

You’re also able to call them and have people at the other end of the line asking you the questions and be able to advise which card an applicant you should be applying for. That makes the whole decision-making process easy. Once that bit is over, you will be given a date on which you can take an online test in a center.

Revolution Construction

How is the test?

Okay. So you booked the test and everything is set, but how will the test be, you might wonder? The test is a multichoice based test with 50 questions that you have 45 minutes to answer. The questions can be case study or knowledge questions, but the difficulty of the test depends on the type. For entry-level construction workers such as labourers or apprentices, the questions and answers are pretty simple. Moving to the other end of it though, for people like contract managers, their test is actually very demanding as their card is equivalent to an NVQ 7.

Once you book the test, it will take place at a CITB-approved test centre where you can use a computer to take the test online. Make sure to be there 15 minutes before your test begin.

How can you prepare for the test?

There is different ways that you can prepare for the test. You could buy a book with information that can help you prepare for the specific grade of card you’re going to apply for. There are different books out there, which will give you loads of questions and answers that would appear in the test. A good thing is to buy the latest addition though because the different tests keeps getting updated. And then keep reading the book from cover to cover until you are able to pass the test. You will need to score 47 out of 50 questions correct in order to pass.

Another thing you can do, is to go online and use some of the free tests of there. You can find a bunch of tests here.

Is a CSCS card a legal requirement?

No, it is not a legal requirement. It is up to the different contractors if they require workers on their site to hold CSCS cards. But the law in the UK states that anyone undertaking construction work need to be competent. And a way of showing that, is by having a CSCS card as a proof of that. Another things is that if you’re working in an unsafe manner because you don’t know better, the site manager will get fined or imprisoned. That eventually lead to you getting fired.

How long does it take to get a CSCS card?

It doesn’t take long to get a CSCS card. Once you have paid for the CSCS card, it will be posted to you the next working day. You will just have to wait then, and normally you can expect the card to be there in around 10 days. Be aware that if your card has not been delivered within five weeks of your application, you should contact CSCS. After 90 days your application will be considered closed, and you will then need to pay an additional payment of £30 to reprocess an application.

How long can you keep your CSCS card?

It depends on the type of CSCS card that you are applying for. But in general most of the cards can last five years. Once you have your card, you can read the expiry date on it.

If you need to renew your card, you will have to prove once again that you have the appropriate training and qualification that your job need. That means you will need to retake the CITB Health, Safety and Environment test.


By preparing for the test, you will get a better chance of passing it. The CSCS card is good to have, and something most employers will require that you have (at least in the UK). Therefore, if you are in construction and know what kind of card you need, start preparing today and take the exam to get your CSCS card.

Prepare by taking our quiz and other quizzes online or buy a book that can help improve your knowledge, and make sure that you pass the final test. We wish you the best of luck.

from The UK Construction Blog

Thursday, 14 September 2017

Considerate Constructors Scheme reaches major 100,000 milestone

Considerate Constructors Scheme reaches major 100,000 milestone


  • Mulalley celebrates as Network Homes’ housebuilding project is named as 100,000th Scheme-registered site
  • Government praises Scheme’s invaluable role in improving the image of construction

The Considerate Constructors Scheme – the national Scheme to improve the image of the construction industry – has reached a major milestone in UK construction history by registering its 100,000th site.

The Infrastructure and Project Authority’s Head of Construction, Dr David Hancock, welcomed this achievement and the Scheme’s role in helping to improve the image of the industry.


The site registration was made by one of the leading UK’s contractors – Mulalley – for the Chauncey Residential Development in Ware, Hertfordshire.


Mulalley are working with housing association Network Homes – a Client Partner of the Considerate Constructors Scheme – to deliver this £8.6m project of 18 semi-detached houses and 29 apartments, with associated car parking and amenity space, delivering much needed affordable homes in Ware.


In addition to this site being the Scheme’s 100,000th registration, it has also been recognised as an Ultra Site – the highest level of attainment with the Considerate Constructors Scheme.


Registering its first site in 1997, the Scheme has firmly established itself as the major force for good in helping to improve the image of the construction industry – for the benefit of the community, workforce and environment.


It is highly regarded throughout the UK construction industry as the ‘go to’ organisation to support construction sites, companies, suppliers and clients in raising their standards and best practice above and beyond statutory requirements.


One of the very few organisations to monitor the industry’s progress and share best practice on the ground, the Scheme undertakes around 14,000 visits to sites, companies and suppliers per year.


Considerate Constructors Scheme Chief Executive Edward Hardy said: “We are delighted to celebrate the registration of the Scheme’s 100,000th site with Mulalley, who have been registering sites for nearly 20 years and are a founding Scheme Partner. This is a truly momentous milestone for the Considerate Constructors Scheme and the industry, and is made even more special with this being the 20th year of the Scheme.


“It is with huge thanks to the continuous hard work, commitment and dedication from an increasingly growing proportion of the UK, and more recently the Irish construction industry, that the Scheme has gone from strength to strength since it registered its first site in 1997. At the very centre of this success has been true collaboration across our industry.


“As a Scheme, we continue to grow and engage with an ever-increasing number of contractors, suppliers, companies, clients and other construction industry-related organisations to continue to promote the benefits to the industry in looking after our workforce, site neighbours and the environment.


“Whilst it is important that we celebrate this phenomenal achievement, it is also important to remember that much more still needs to be done to continue to improve the image of our sector and to encourage the industry to continually raise its standards and share best practice throughout the supply chain. It is only through an ever-improving image that our industry can continue to attract the very best to work in our fantastic sector.


“As one of the few people who have been involved with the Scheme from its earliest days, I am incredibly proud of what the Scheme has achieved. I am also hugely grateful to the construction industry for the way in which it has embraced the concept of considerate construction, and how it continues to challenge itself to attain even higher standards.”


Considerate Constructors Scheme Executive Chairman Isabel Martinson commented: “This is a huge achievement for the industry. By reaching such a significant milestone, the Scheme is clearly demonstrating its ongoing importance in driving higher standards to improve the image and reputation of construction.”


Mulalley Director Vince O’Malley said: “Mulalley are extremely pleased for our Chauncy Residential Development project to be the Scheme’s 100,000th registered site. As a Founder Partner of the Scheme, this is a significant milestone and testament to the Scheme’s commitment to improving the construction industry’s image and creating a legacy of continued improvement.”


Network Homes’ Executive Director of Development Vicky Savage added: “It’s really important that we provide high quality affordable homes for the communities we work in. This is a positive statement to local people, letting them know we take construction standards seriously. We look forward to continuing our work with the Considerate Constructors Scheme and providing fantastic new homes with Mulalley at the Chauncy Residential Development.”


The Infrastructure and Project Authority’s Head of Construction, Dr David Hancock added his congratulations to the Considerate Constructors Scheme in reaching this milestone: “It was a pleasure to present at the Considerate Constructors Scheme’s National Site Awards earlier in the year, and it is great to hear that the 100,000th site has registered with the Scheme.  It reflects well on the efforts that have been made by the industry.  We are seeing much cleaner and tidier sites, efforts being made to minimise noise and having safety systems in place.  This has had a positive effect on the environment and surrounding communities, and also on working conditions.  We are seeing constructors providing a more supportive and caring environment for their workforce.


“This is great progress and I hope it will continue and help attract more people into the industry at a time when we are seeing much change and challenge around how the industry operates.”


Click here for further information about Site Registration.

Click here for more information about Ultra Sites.

from The UK Construction Blog

Sunday, 10 September 2017

Rebuilding the UK’s infrastructure at Civils Expo 2017

Civils Expo, the UK’s leading event dedicated to civil engineering and infrastructure, will once again bring together leading suppliers of the latest technologies, systems and products for the sector when it returns to Birmingham NEC from 10-12 October 2017.


Exhibitors already signed up to launch new products, showcase software and provide technical advice include HS2, CEMEX, Breedon Group, Creagh Concrete and Bluebeam. Leading figures from across the industry will also attend the show, such as Crossrail, Heathrow, BAM Nuttall, Kier, Transport for the North and Highways England, where they will debate the industry’s most pressing topics and discuss the challenges and opportunities currently facing the sector.


The seminar programme for Civils Expo has been designed to inform and educate visitors about the planning and implementation of significant projects, as well as introduce them to suppliers so they can learn about new products, gain skills and make long-lasting contacts. One of the show’s biggest attractions will be The Infrastructure Hub, which will explore the process of planning, designing and building a variety of projects from road infrastructure and rail infrastructure through to airports and seaports. Topics such as future proofing infrastructure and construction, sustainability in business, drones, offshore wind turbines and connecting Britain to the world post-Brexit will be discussed at the show, while projects that are having an important impact on the sector such as Crossrail, Ordsall Chord and Hinkley Point will be explored by those leading them in front of a live audience.

To tackle the issue of building safety head on, Civils Expo will also bring together leading authorities to deliver free CPD advice and guidance on key issues such as fire prevention and safety in buildings; guidance on sprinklers, fire doors and dampening; health and safety and how to improve safety through technology, as well as the latest advice on cladding and other flammable building materials. These free CPD and workshop sessions will be hosted at The Infrastructure Hub and have been specially tailored for those responsible for building safety. The sessions are expected to book up quickly, so registration is encouraged.


Nathan Garnett, Event Director at Media 10, which runs the show, said: “This year’s Civils Expo will bring together the UK’s largest and most important infrastructure projects with the latest products and innovations being used to build them. Our programme is evolving with more speakers, exhibitors and suppliers signing up every day, and we’re committed to making this our most successful show to date. In addition to showcasing new products for the sector, we will also tackle the issues surrounding building safety head on with a carefully chosen schedule of talks, workshops and events.”


Consisting of Build Show, sponsored by Easy-Trim, Civils Expo, Plant & Machinery Live, Energy 2017, Smart Buildings 2017, Surface & Materials Show, HVAC 2017 and Grand Designs Live, UK Construction Week caters for the entire spectrum of the industry from builders, architects, innovators and consultants, each show provides exhibitors with the opportunity to network alongside decision makers and purchasers while showcasing their services and products to thousands of visitors.  For more information and free registration visit

from The UK Construction Blog

Thursday, 7 September 2017

4 tips for a clean construction site

Health and safety on a construction site is most closely associated with the use of heavy equipment and hazardous materials.

But each year in the UK, there are 1000 slips or trips on worksites that cause fractured bones and dislocated joints.

And many of these accidents are caused by a messy and disorganised work environment.

So here are four tips for a clean construction site that keeps your staff safe.

Safe storage

Clients, contractors and suppliers should all be clear about where certain types of materials and equipment are stored onsite and any materials that are flammable or hazardous should be separated and labelled clearly.

Large pieces of valuable kit can be kept safely overnight in vandal-safe storage containers but secure portable cases for smaller tools are also useful.

And if you store materials and equipment that only certain workers are qualified to work with, then it might be wise to only provide keys for these zones to qualified staff.

Once you’ve decided where various materials and equipment should be stored, be sure to leave pathways for workers to travel safely on foot.

Waste management

There are stringent guidelines regarding the collection and disposal of hazardous waste materials.

But even more commonplace waste like rubbish and rubble can cause serious accidents if it’s allowed to pile up.

Rubbish chutes offer a solution to this problem — waste is collected by workers and slid down smoothly into skips positioned below.

All onsite workers should be responsible for clearing their own work areas throughout the day and a rubbish rota can be used so there’s a shared responsibility for cleaning general areas.

Clear floor spaces

Trailing cables and abandoned equipment can present risks from falls.

But workers’ dirty boots can also drag mud and hazardous materials from one area of your site to another, resulting in risky cross-contamination.

So plastic shoe covers should be worn in certain areas, while floor mats should suffice for keeping shared canteens and restrooms clean.

And don’t forget the basics — buy sufficient stocks of brushes, brooms and dustpans that can remain in arm’s reach in every area.

Dust control

Construction dust is another substance subject to regulatory control in the UK — it can cause serious diseases like asthma and cancer.

And many tasks carried out onsite create dust, so it’s essential that workers are provided with protective equipment like masks and suits.

But a specialist dustguard machine can be used for dust control and washing equipment on larger sites.

As with any construction housekeeping task, keeping dust at bay relies on team members working together to ensure it doesn’t build up until it’s unmanageable.

The success of a construction project isn’t just based on the quality of the finished building — it relies on a safe and efficient site that’s kept in good shape throughout.

These four tips for a clean construction site should ensure your project runs smoothly from start to finish.

Do you have other tips for keeping construction site clean? Share your advice in the comments section.

from The UK Construction Blog

Impact of Brexit on Construction Industry

After the decision of Brexit, there is an uncertainty in the economic sector in Britain. Consequently, construction industry is currently facing a slowdown as many projects are being put on hold. In August, the growth in construction sector unexpectedly fell to a one year low.
Economic activity slowed down to 51.1 in August from July’s 51.9 indicating expansion of marginal size according to a survey published with the help of Chartered Institute of Procurement and Supply (CIPS). While 50 is stagnation, anything below that shows contraction in a business sector. Samuel Tombs from Pantheon Macroeconomics who is a major UK economist, states that, the figures indicate that construction sector is currently flirting with recession.

If Brexit talks don’t progress well, then large firms will be forced to relocate activities to Europe. A range of banks including Goldman Sachs and HSBC have previously stated the possibility of moving staff. Mr. Tombs believes that the negotiations for Brexit will continue progressing slowly. This will lead to more firms acting on contingency plans, through freeing up offices resulting in exhaustion of demand for commercial projects.

After commercial building work dropped at a quick pace since July 2016, the civil engineering sector came close to stagnation but the construction industry kept growing due to house building activities. The employment rose at the slowest pace due to completion of more projects and lesser new projects.

Reason for slowdown in construction sector:
Duncan Brock, who works with CIPS, believes that there are more than one interrelated factors for this situation. The major factors are economic uncertainty, delayed decisions due to Brexit and reduced expenditure by government. These factors if not improved immediately can easily lead to a recession in construction.

The survey was done after the recent fall in Sterling value which increased pressure on the construction sector. Consumers in UK need to pay more costs and businesses who have to purchase products from abroad have lower purchasing power thus making the market slower. This, if not mitigated, will lead to accelerated inflation forcing the Bank of England to increase interest rates for coping up.

The survey also took into account the slowing down of house prices since the middle of last year after Brexit. This was pointed out previously by the Office for National Statistics. But, since the mid 70’s, house prices have garnered a support from even the lowest brackets of unemployed people and low interests reducing mortgage costs.

Possible outcomes:According to these results, the construction sector may contribute only a little portion to GDP in the economic quarter ending in September. Many firms are also preparing themselves if these conditions continue into autumn and lower confidence in firms leads to weak trends for creating jobs.

Joshua Mahony, who is a market analyst at trading firm IG, believes that according to current situation, there is a strong possibility for construction sector to move into contraction in coming months. But, there is also a potential for robust production especially if the Brexit discussions go well. Also, since homes are a necessity, the government may subsidize house owning with the decrease of Sterling value. Until final decisions are made and market stabilizes, the construction industry will keep flirting with recession.

The post Impact of Brexit on Construction Industry appeared first on Econ Construction LTD.

from Econ Construction LTD