The Week That Was - 23 August 2024

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

RPC contributes to ICLG's Construction and Engineering Law Guide for 2024

We are excited to announce RPC's contribution to the 2024 edition of ICLG's Construction and Engineering Law Guide.  This year's edition features in-depth chapters on construction laws and updates to English Building Regulations, authored by experts from RPC.  These contributions provide essential insights into the legal landscape for professionals navigating construction laws and regulations in England and Wales.

For a deeper dive, you can access the chapters here. 

Government plans to limit landowner profits on green belt sales

The Government is planning to introduce new legislation that will change compulsory purchase rules and limit the amount of profit that landowners can make from the sale of green belt land.  The Ministry of Housing, Communities and Local Government has published its revised National Planning Policy Framework, which set out its plans to boost housebuilding by opening up development on parts of the green belt.  The Government plans to use “benchmark” values to limit the amount of profit that landowners can make from the sale of green belt land to prevent profiteering on land newly eligible for development.  The new framework will also encourage the use of compulsory purchases by bodies such as Homes England and local authorities in situations where landowners are unwilling to sell at a fair price.

You can read more here.

Fire Safety warnings handed to Hinkley Point C firms now resolved

Four companies who were issued with warnings over failures in fire safety at Hinkley Point C have made improvements at the request of the nuclear watchdog.  The Office for Nuclear Regulation (ONR) identified the breaches after pre-planned inspections at the Somerset nuclear plant in November last year.  The enforcement notices were given for contraventions under the requirements of Article 22 of the Regulatory Reform (Fire Safety) Order 2005 and required improvements to be made to address the shortfalls in compliance and to prevent reoccurrence. 

You can read more here and here.

Construction starts up 8% in 2024

The August 2024 edition of Glenigan's Construction Review (GCR) has revealed that construction starts in 2024 are up 8% from 2023.

The GCR focuses on the three months to the end of July 2024 and covers all major (over £100m) and underlying (below £100m) projects.  The 8% increase in this period compared to 2023 is driven by a spike in major project starts, which rose considerably, increasing by 42% compared to 2023.  However, this growth was limited by underlying starts, which were down 11% on the previous year.  While the comparison to 2023 appears positive, overall work on site failed to grow during the preceding three-month period, declining by 10% in the three months to July. 

Glenigan's economic director, Allan Wilén, noted that the 8% increase on 2023, coupled with a 3% year-on-year growth, indicates a "cautiously optimistic outlook within the industry".

You can read more here.

Halsall Construction collapsed owing suppliers £7m

Halsall Construction went into administration earlier this year and it has now been revealed by its administrators, Begbies Traynor, that it when it collapsed it owed more than £7 million to subcontractors and suppliers.  

Begbies Traynor have blamed problem contracts and the ban on Russian investors as reasons for Halsall's demise.  More than 400 companies were left with unpaid bills, although Begbies Traynor has indicated that there will be sufficient funds to enable to a dividend to be paid to all unsecured creditors.

The administration has left residents on half-built developments in a difficult position, living next to unfinished properties and having to call on National House Building Council warranties to rectify defects in their own homes. 

You can read more here and here. 

First environmental product declarations for asphalt

MPA Asphalt has published the UK's first environmental product declarations (EPDs) for asphalt.

EPDs make it easier to compare different products' environmental performance and are key in supporting the construction industry's shift towards net-zero.

MPA Asphalt expects its members soon to have access to an online tool which will allow them to calculate their own EPDs.  This anticipated influx of data will then be used to refine MPA Asphalt's calculations and make them even more accurate.

You can read more here.

Signs of greenwashing in a construction supply chain

With an ever increasing focus on sustainability, greenwashing from businesses is on the rise.  When evaluating a company's green credentials, it is important to bear these points in mind:

• Genuine sustainability can be evidenced with data, reports, audits, reviews and certifications such as BREEAM;
• Sustainability should be integrated into every phase of a construction project; and 
• Companies should be able to answer questions about their emissions, waste management, sourcing and energy use.  

You can read more here.

Thanks to Authors: Abbie Dyas, Harry Langford-Collins, Laura Sponti and Sophie Meek.

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.