The Week That Was - 18 October 2024

Welcome to the week that was, a round-up of key events in the construction sector over the last seven days.

First Tier Tribunal rules that roof gardens count as storeys

First Tier Tribunal (FTT) has recently ruled that a roof garden counts as a storey for the purpose of calculating whether a building may be classed as higher-risk buildings (HRB), so that they are subject to the strict standards of the Building Safety Act 2022, which does not itself address roof terraces.

The decision concerned a claim brought by a leaseholder of Smoke House and Curing House in Hackney Wick, who was seeking wider remediation than that being offered by the owner of the property.  The FTT ordered that remediation works should be undertaken to balconies, external walls including a courtyard, walkways and other areas with combustible materials and that the works should be completed by the end of September 2025.  The FTT also awarded the leaseholder £400 in costs for making the application.

For more information please read here.

First new mews homes since the 1950s to be built

Westminster Council has unanimously approved plans to build London's first terrace of mews homes since the 1950s.  The development in Eaton Mews West, Belgravia will consist of six new homes (at around 200 square metres each) and will provide 426 square metres of office space.

The development is to retain the historic Georgian façade, dating back to its time acting as stables tending to the Royal Household Cavalry.  However, the façade will be refreshed with a new mansard roof, dormer windows with wrought iron flower boxes, along with new front doors and timber beams.

The development has been designed by architect MSMR, with local developer Leconfield also engaged and Hoare Lea providing acoustic, MEP, sustainability and fire services.  Construction is due to commence in November 2024 and is due to be completed by the second quarter of 2026.

For more information please read here.

Large construction companies to be required to report retention sums

Large construction companies will be required to report the retention sums they withhold from suppliers for financial years beginning on or after 1 April 2025, under a revised draft of the Reporting on Payment Practices and Performance (Amendment) (No 2) Regulations 2024 (the Regulations).  The Regulations are expected to come into force on 1 January 2025 and will require large companies and Limited Liability Partnerships that qualify to disclose various retention sum information, including their standard retention rates, how they release retentions and whether retention clauses are standard on all contracts.

The move is part of efforts to promote improved payment practices in the industry. The Department for Business and Trade will launch a public consultation in the coming months on additional legislative measures to address late payments and long payment terms.  The Government has also announced it will lay secondary legislation requiring large companies to include information about their payment performance in their Annual Reports.  Finally, a new 'Fair Payment Code' – a voluntary code of best practice for payments – is to be introduced in place of the existing Prompt Payment Code.

For more information, please click here and here.

Report indicates adoption of technology in construction sector could bring £417 billion to the economy

A report by Costain, commissioned by the Department for Transport, has found that adoption of Connected and Autonomous Plant (CAP) in the construction industry could stimulate the UK economy by an extra £417 billion by 2050.  CAP is construction plant that is connected to its environment through sensors or wireless transfer of data between a remote operator and may have partly or fully autonomous movement and operation around a site.  An example of current technology is Intelligent Machine Control being used to guide excavators to dig to precisely the right level and profile.

The predicted increase to the economy through use of CAP comes from two main sources: production and sale of CAP equipment and the increased output of the construction sector.  The study also identified other benefits, for example it estimated that the adoption of CAP in the road and rail sector could reduce the occurrence of safety incidents by 28,000 by 2050.

For more information, please click here and here.

Government focus on housing and infrastructure driving return to confidence, AtkinsRealis finds

A new report by AtkinsRealis reveals that Government investment in housing and infrastructure is boosting confidence in the construction sector.  The report highlights growing optimism about future activity, supported by proposed planning reforms and long-term infrastructure strategies.  This follows seven consecutive months of increased construction output, as reported by the UK Construction Purchasing Managers' Index.  Positive signals around the HS2 rail project also contributed to the market's momentum.  However, challenges such as inflation, planning delays, and contractor shortages could still hinder progress.  Tender prices are expected to rise by 3% over the next year, signalling further growth.

For more details, read here.

Report published into the SME construction landscape in Wales

The Chartered Institute of Building (CIOB) has recently published a report into the challenges facing small and medium-sized enterprises (SMEs) in the Welsh construction industry.  The CIOB notes that SMEs play an important role in the Welsh construction sector and are a significant contributor to the Welsh economy. Recent statistics indicate that 99% of Welsh construction businesses are SMEs and 96% of them employ fewer than 13 people.  However Welsh SMEs are facing significant challenges, including planning permission delays, a competitive market in which larger contractors are offering better wages and benefits and a shortage of people around the age of 28-36 trained in managerial or supervisory roles.  The report considers how such challenges might be mitigated or overcome.  It was presented to members of the Senedd last week, aiming to spark tangible policy change in the area.

For more details, click here and download the report here.

With thanks to:  Tom Westford, Kasia Ginders, Cai Pugh, Sophie Hudson

Disclaimer: The information in this publication is for guidance purposes only and does not constitute legal advice.  We attempt to ensure that the content is current as at the date of publication, but we do not guarantee that it remains up to date.  You should seek legal or other professional advice before acting or relying on any of the content.