The Week That Was - 24 January 2025

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

Welsh Government fire safety consultation response indicates increased regulatory alignment with England

The Welsh Government has issued its response to its consultation on amendments to Approved Document B on fire safety, issued under the Building Regulations 2010 ("the Regulations"), following a consultation which ran from October 2023 to January 2024.

Key changes include the extension of regulation 7 of the Regulations (on materials and workmanship) to hotels, hostels, and boarding houses; a reduction in the maximum combustibility of materials which can be used in the walls of residential buildings; and further detail being added to specific items such as solar shading and laminated glass.

The amendments, as and when they become effective, will largely bring Wales in line with England, but diverges on the question of mandatory second staircases, on which the Welsh Government considers it necessary to undertake further research before holding a possible further consultation on the question.

You can read the consultation response here.

RIBA to undertake education review following Grenfell Tower inquiry report

The Royal Institute of British Architects ("RIBA") has issued its full response to September's Grenfell Tower inquiry Phase 2 report ("the Report") on 16 January.

In its response, RIBA accepts the Report's findings, and, while noting the steps it has already taken since the fire occurred to improve general standards of architectural training, it has committed to reviewing and improving educational standards. It also highlights a number of areas which the Report did not cover – such as a fully-fledged review of Approved Document B; consolidation of fire safety functions within the remit of a single Secretary of State; and free provision of all safety-critical guidance – for which it recommends review and reform.

You can read RIBA's full response here.

Caroline Gumble to step down as head of CIOB

The chief executive of the Chartered Institute of Building ("CIOB"), Caroline Gumble, has announced that she will step down in July this year.

In-post since 2019, her tenure has notably included navigating the Institute's pandemic response in 2020 and 2021; undertaking a wholesale organisational brand refresh aimed at redoubling focus on the Institute's public benefit focus; and most recently, beginning a project to address a 'mental health crisis' in the construction industry.

Dr Gumble also drew particular attention in her public statement to her efforts in establishing a new team within the Institute to address sustainability, the skills gap, and diversity in the industry.

You can read more here.

ISG collapse presents opportunity as well as tragedy for industry

While ISG's collapse in September last year was undoubtedly a catastrophic blow for many in the industry, workers/employees, contract counterparties and clients alike (for our initial coverage in The Week That Was, see here), there are undoubtedly also opportunities arising from vacant contractor positions in projects with which ISG were involved.

Take, for instance, the revival of the Surrey-based Project Apple scheme to build a new headquarters for UCB, a global pharmaceutical company. Walter Lilly, recently acquired by luxury contractor Size Holdings, has taken over construction work on the project to fill the gap left by ISG after UCB pulled the plug on their involvement in April. Undoubtedly there are numerous other projects suffering delays for which the involvement of replacement contractors can offer a solution.

You can read more here.

ONS reports a significant increase in construction output

The latest figures from the Office of National Statistics show a positive trend for the construction sector, with output growing by 0.4% in November compared to the previous month – a growth rate which is four times faster than the overall UK economy.  Both new work and maintenance has contributed to this increase, with October's growth also revised upwards to 0.3%.  Commercial work saw a notable rise, with private commercial new work up by 3.1% and non-housing repair and maintenance increasing by 1.1%. 

Richard Cook, senior economics director at Pegasus Group, highlighted this growth as a positive sign for the UK economy, especially following a reported drop in inflation.  However, he cautioned that skills shortages continue to challenge the sector.

You can read more here.

£1.5bn decarbonisation framework put to market

Procurement specialist Fusion21 has advertised plans for a four-year decarbonisation framework ("the Framework") covering homes and public buildings. It has committed up to £1.5bn on retrofit and refurbishment work with the help of 15 contractors, who will be appointed to deliver insulation, heating, air conditioning, roofing and a range of other works.  Lot 1 (which is valued at up to £1bn) is allocated to residential properties, while Lot 2 will be utilised for various other buildings and is predicted to be worth half as much.  The Framework will perform whole-house refurbishments, including replacement doors and windows, alongside installation of renewable energy systems.  In order to be selected as a contractor for the Framework, companies must have a minimum turnover of £20m.  Chosen suppliers will be expected to provide social value outcomes through their work, following confirmation of specified levels of professional and product liability cover. Statements from Companies House and a third-party credit reference agency will determine the financial viability of each bidding party.

18 firms have also been named on an additional framework which is intended to improve the sustainability of the delivery of health services.  Kier, Willmott Dixon and Seddon are just some of the big names which comprise the Decarbonisation of Estates Framework.  Anjub Ali, senior category manager at NHS Shared Business Services, expressed that the deal was geared towards enhancing the modernisation of the NHS.  The Framework has committed to decarbonising certain aged buildings, including performing domestic works to update the insulation, heating and lighting.

You can read more here.

With thanks to: Keira-Anne Dowsell, Sky Arklay and Joe Towse

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.