The Week That Was - 2 August 2024

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

Carbon-negative asphalt aggregate is trialled on the M11 

Skanska and Tarmac are trialling a replacement carbon-negative aggregate that has the potential to significantly lower the carbon footprint of asphalt.  The ACLA carbon-negative aggregate used in the asphalt acts as a permanent carbon storage solution, utilising the carbon removal technology of sequestration to permanently remove carbon dioxide from the atmosphere. 

The carbon-negative aggregate is being tested in "real world" conditions under levels of heavy traffic on the northbound carriageway of the M11. 

For further reading please click here.

Bristol housing developers sentenced for Covid-19 loan fraud

On 23 July 2024, James and William Leslie, son and father, Bristol-based owners of numerous housing development companies, were sentenced for 18 months and 16 months (suspended by 12 months) respectively for fraud by false representation contrary to section 2 of the Fraud Act 2006.

The Leslies made deliberate false representations to obtain money via the 'Bounce Back Loan' scheme, which was introduced to support viable businesses through the COVID-19 pandemic.  The representations were for dormant companies owned by the Leslies and the loans were then transferred to trading businesses.  The Leslies admitted at Bristol Crown Court that they acted dishonestly in making fraudulent applications.

Read more in The Insolvency Service's press release here.  

Bricklaying contractor featured in BBC TV shows files administration notice

Hodgkinson Builders, a bricklaying contractor based in Derby, has filed notice of intention to appoint an administrator.  The firm, which was founded in 1990 as a small family-run business, featured in BBC Three's documentary series "Brickies" (produced in conjunction with the Open University) which focused on the lives of young recruits and apprentices at the firm as they started their careers in construction.  The show also highlighted an increase in female apprentices joining the bricklaying trade, where currently only 2% of the workforce are women.  The founder and managing director of the company, Ian Hodgkinson, also featured as a project manager on "DIY SOS". 

The firm's work included contracts with new-build residential housing developers, including registered affordable housing providers, with filming of the series taking place in Stoke-on-Trent, Northampton and Derbyshire.

Read more about the company here.

Unite Students to construct 444-bed scheme in central London

Student accommodation developer Unite Students has bought a key Zone 1 site in South London with planning already in place to fast-track a 444-bed scheme consisting of 308 studio flats, 136 en-suite rooms in cluster flats, 8 key worker residential apartments, and 18,000 square feet of workspace accommodation. This will increase the developer's already substantial London portfolio including a total of 3,200 bedrooms currently planned for the next five years across all proposed development sites.

The site is King's Place on Borough High Street with the scheme being designed by Morris and Co, which will be spread over an H-shaped footprint building rising from 5 to 11 storeys.  The building is intended to be ready for occupation by the 2027/2028 academic year and will be targeted towards students studying at Kings College London and University of the Arts, London.

You can read more here.

Developer blames post-Grenfell reforms for tower planning breaches

A developer, Comer Homes, has claimed that the post-Grenfell fire-safety reforms motivated it to breach planning permission on a luxury build-to-rent development.

Comer Homes was originally given planning permission for the development in 2015.  In 2021, they informed Greenwich Council that they would upgrade the cladding to an A-rated aluminium finish due to “company policy post-Grenfell”. 

Greenwich Council has issued an enforcement notice, arguing that this change was just one of 26 breaches of the planning permission. The Council has ordered Comer Homes to demolish the two residential blocks.  Comer Homes is appealing the enforcement notice. 

The inquiry is ongoing until the end of August.

You can read more here.

Housing association boosts surplus after ‘reducing reliance on contractors’

Housing association, Clarion, has reported an increased surplus for the first quarter of the financial year seeing benefits in reducing its reliance on contractors for repair work and instead insourcing the work.

In its annual financial statement, Clarion explained how it has insourced the remaining part of its repairs service in Merton and Kent and is “taking action to control costs” relating to maintenance after a £42m increase in maintenance costs and major works in 2023/24.  Clarion is aiming to build around 1,800 homes this year with an ambition to increase this in the long-term but is taking a “cautious” approach to moderate its “development programme in response to market uncertainty and financial capacity”.

To read more, please click here. 

Authors: Ellen Ryan, Catherine Stead and  Emily Twomey

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.