Author Archives: Intersect

Construction in central London has added billions of pounds to the UK economy, new research commissioned by some of the city’s most powerful property developers has revealed.

According to the study by consultancy Deloitte, construction activity in 11 inner-London boroughs added around £6.2bn to the economy in 2013.

The report, Supporting development, enabling growth, pinpoints further contributions of £3.3bn in ‘indirect’ effects from demands on supply chains, and £2.9bn from ‘induced’ gains from increased household spending as a result of construction.

“Property development is a major activity in London, drawing in investment and producing new architecture,” London School of Economics professor Tony Travers writes in the report.

“The economic sectors which depend on the strength of construction extend from developers and architects through to crane manufacturers and brickmakers.”

The research has been commissioned and released alongside a list of demands by the Westminster Property Association and the City Property Association, whose members claim 85 per cent of construction activity in inner London.

In their “manifesto for the mayor”, the associations urge the successful candidate in next May’s mayoral elections to reverse a trend in the city centre that has seen commercial space replaced by residential units.

Westminster alone has “lost” 4.4m sq ft of office space, according to the associations, which have extensive commercial interests in inner London.

They argue the mayor should help tackle affordability by fighting to keep receipts from Right to Buy sales in the city.

The associations also urge the next mayor to encourage the government to axe or relax borrowing limits on council housing budgets, a move they say will allow boroughs to build more homes.

The new mayor should also help address the shortage of tradespeople, which the associations see as a “key reason for the lack of homes and office space”.

“We call for the mayor to work with the associations and industry to help promote and co-ordinate the right training and support for young people and workers of all ages and backgrounds…to provide [them] with the skills…to build London’s future”, they said in a statement.

City Property Association president Rob Samuel described central London as “the economic powerhouse” of the city and the “entire United Kingdom”.

“Our manifesto for the next mayor outlines the key areas where we believe that our industriy, and the mayor, can work together to deliver housing, office and leisure space for the capital to continue to thrive as a global city.”

The route was revealed as TfL launched its third public consultation, with the organisation keen to get approval for the project next year.
If the project is given the green light, construction could begin as early as 2020, with the first trains running by 2030.
TfL’s new plans include a number of amendments such as a new section between New Southgate and Seven Sisters that would see trains stop at Wood Green instead of Alexandra Palace and Turnpike Lake.

Source: TfL
The plans also include a new section between Clapham Junction and Wimbledon, with trains stopping in Balham rather than Tooting Broadway.
Crossrail 2 would serve central London through 32 km of twin tunnels between Wimbledon in the south and Tottenham Hale and New Southgate in the north, connecting with existing national rail networks in Surrey and Hertfordshire.
Two previous TfL consultations on the project have seen it receive overwhelming support from local residents and businesses.
TfL will now seek views on proposed station locations, construction sites and service patterns. The consultation will close on 8 January.
Crossrail 2 managing director Michele Dix said: “This consultation gives people the chance to comment on where we are proposing to put station entrances, work sites and ventilation shafts needed to run Crossrail 2.
“As development of this vital railway continues, we will be taking on board feedback from the consultation to progress the designs for the project, so that we can open the railway by 2030.”

The London Bridge redevelopment is one of the most complex projects undertaken by Network Rail.

The fascinating video below documents Network Rail, Costain and specialist contractor Prater as they discuss challenges faced, 4D-modelling, off-site manufacturing and pioneering new construction methods, including a timelapse of the project team assembling a full-scale prototype of a platform section at London Bridge.

Source: Prater
The team were able to construct, disassemble and re-construct the prototype in order to root our any potential on-site issues beforehand, a process that played an integral part in the successful delivery of the first phase of works.

Demand for recruitment services has never been so great, with skilled workers in particular being highly sought after. This has placed increased pressure on recruitment agencies as companies compete to attract the top candidates.

The good news, according to the Recruitment and Employment Confederation (REC), is confidence in UK recruitment firms remains high. It found that recruitment agencies had a net satisfaction rating of 93% in July 2015 illustrating just how well they are performing amidst the pressure of heightened demand. In addition, the REC reported that 89% of hirers are satisfied with the quality of candidates being presented.

The REC’s report on jobs also found that 74% of employers believe that economic conditions, domestically, are improving and that 86% of hirers plan to add permanent headcount over the next quarter, whilst 79% plan to do so in the medium term. Eight in ten hirers are using agency workers to gain short-term access to key strategic skills.

Intersect Global are seeking both permanent and contract candidates for a range of QS, Commercial Management, Project Management, Site Management and Site Engineering roles for long list of employers in the Civil Engineering and Construction Sectors.
If you are considering a career move or looking for your next assignment please call us for a confidential chat today on 020 76820668. To be made aware of the latest vacancies as they arise register on our specialist site www.intersectglobalco.uk

Network Rail has set out the first stage of planning for Crossrail 2 after issuing a tender for a £60m consultancy contract.

The rail operator is looking for a firm to undertake design and consultancy services for the ‘On Network’ element of the upcoming Crossrail 2 project, according to an OJEU notice.

The ‘On Network’ sections include areas in south-west and north-east London where Crossrail 2 could potentially link to the existing rail network.

The core Crossrail 2 route – the underground section between Wimbledon in the south and Tottenham Hale and New Southgate in the north – will be the responsibility of Transport for London.

Network Rail is seeking a consultant to undertake an assessment of the construction and operational environmental impacts of the potential Crossrail 2 route, as well as identifying the scope of works needed to protect or divert utilities.

Additionally, the contract sets out plans to identify which land on the route will need to be acquired and used for construction and operation of the Crossrail 2 network.

The consultant will also develop cost, programme and risk forecasts for Network Rail, and will be expected to “effectively engage with stakeholders to garner support for the scheme.”

According to the OJEU documents, a delivery model and delivery strategy for Crossrail 2 will be established in late 2017.

The consultancy contract has an initial estimated value of between £30m and £60m, with the potential for an additional pre-delivery extension of between £25m and £50m.

Mayor Boris Johnson has set-up the Crossrail 2 Growth Commission to promote plans for the £20bn project.

Business leaders are also backing the scheme and are calling on the Government to use the current Comprehensive Spending Review to provide the development funding needed to start building Crossrail 2 early in the next decade.

An open letter to a national newspaper backing the scheme was signed by the chief executives of Morgan Sindall, Mace and Turner & Townsend.

The Commission will help maximise the benefit of the new railway by bringing together the London boroughs, county councils outside London and other key business and development stakeholders along the route to work together on how the railway can best support housing and job creation.

Johnson said: “Major projects take time to plan and prepare and with Crossrail 1 nearing completion, we must move quickly to the next transformational growth project which could see even more benefits delivered.

“Crossrail 2 will support up to 200,000 more homes and jobs, adding billions of pounds to the national economy and ensuing a prosperous future for the whole country.”

Crossrail 2 will support the UK engineering, construction and manufacturing sectors with a supply chain stretching across the UK, potentially supporting around 60,000 full time jobs.

This is in addition to the 18,000 who will be employed directly during the peak of construction and over 1,300 new jobs that will be created to operate Crossrail 2.

Sir Merrick Cockell, Chairman of the Crossrail 2 Growth Commission, said: “This new railway is imperative to the future growth of the Capital and across the UK and the Growth Commission will play a key role in helping ensure local development plans along the route meet their full potential.”

A public consultation will begin in the autumn, providing more information on the scheme including locations for work sites and station entrances.

Your LinkedIn photo has the potential to make a prospective employer trust you.

So, how do you secure this trust? Look a little happy.

The emphasis is on ‘a little’ though.

Research from New York University has discovered that people with positive expressions such as upturned eyebrows, or an upwardly curving mouth, have a higher likelihood of being perceived as trustworthy.

Angrier expressions, such as a furrowed brow or a frown, are seen as untrustworthy.

Unfortunately, the study found that you can’t do much to change how you appear, as your appearance depends largely on your facial structure, which is unalterable: “perceived ability is more fixed and tied to the face’s static structure,” said the study.

Almost half of all specialist contractors are struggling to recruit skilled workers, according to new data.

The shortage of skilled labour is at its highest point for 14 years, according to a report ftom the National Specialist Contractors Council (NSCC).

Just under half (47 per cent) of specialist contractors have experienced difficulty in recruiting skilled workers during Q1 2015, said the report.

By contrast, only two percent of specialist contractors have found it less difficult to recruit than in the previous quarter.

As a result, the balance of recruitment difficulty – the difference between the number of firms reporting greater difficulty recruiting and those reporting less difficulty in recruiting – now stands at its highest point since 2001.

More than three quarters of specialists (77 per cent) cited the low number of skilled applicants as a reason for the recruitment crisis, while a lack of required experienced (54 per cent) and a lack of required qualifications (41 per cent) were also given as reasons.

The shortage of labour left 28 per cent of specialist firms unable to bid for work – this is higher than any point since Q2 2007.

But for the first time in 18 years, half of all specialists expect that recruitment levels will rise over the next quarter, compared to 2 per cent expecting them to fall.

And despite the increasing pressure of skills shortages, specialists’ work outlook is positive.

Nearly two-thirds (65 per cent) of specialist contractors reported an increase in enquiries, up 27 per cent on Q4 2014, while 54 per cent saw an increase in orders in Q1 2015.

A record 78 per cent of specialists expect to see an increase in workload over the next 12 months, while only 2 per cent are forecasting a decrease.

Although workloads are increasing, tender prices have now hit a record high, with 54 per cent of specialists reporting an increase during Q1. The net balance of +43 is the highest ever recorded by the NSCC survey.

More positively, no respondents had to wait more than 90 days for payment in Q1 2015, while 75 per cent were paid between 30 and 60 days and a further 20 per cent being paid between 60 and 90 days.

Only 5 per cent of specialists saw payment in under 30 days – below the five year average of 6 per cent.

Commenting on the survey, NSCC chief executive Suzannah Nichol said: “The growing construction market is great news for Specialists Contractors but we need to tackle head-on the skills crisis that is facing the industry.

“If we do not invest in recruiting and training people with the right skills, the industry will not be able to meet demand and this will impact on the wider UK economy.”

Construction leaders have called on the incoming Conservative government to commit to a long-term infrastructure spending plan as the industry digests last night’s shock election result.

Rob Oliver, chief executive of the Construction Equipment Association, said that the continuity offered by the Tories’ victory was “generally welcome”.
He added: “The continuation and thorough execution of the existing strategies covering construction and manufacturing will be something we will press for.
“We will be particularly keen to see that the current construction pipeline remains intact and that longer term infrastructure projects are not side lined.”

Nelson Ogunshakin, chief executive of the Association for Consultancy and Engineering, said: “It is now vital that we continue with the infrastructure investment that will embed the economic recovery and reposition the UK as the economic power of Europe.
“The industry needs the government to honour the electorate’s wish for political stability and policy continuity to attract investment in the much-needed social and economic infrastructure.
“Notwithstanding, it is crucial that infrastructure continues to enjoy the cross-party support that has characterised the past five years.
“It must remain above the fray when progressing with the planning, financing, funding and execution of the current project pipeline contained in the National Infrastructure plan.
Alasdair Reisner, chief executive of the Civil Engineering Contractors Association, said: “The last five years have seen a steady push to improve the way infrastructure is managed through visibility of investment and workloads.
“This has created long term certainty, allowing for investment in skills, equipment and innovation, reducing delivery costs and making savings for the taxpayer.
“It is now imperative that an incoming government recognises the importance to the market of maintaining long term certainty for, and fully commits to, the existing project pipeline.”
There was also concern over the prospect of an EU exit, with David Cameron having committed to an in/out referendum if the Conservatives win a majority.

Guy Grainger, UK chief executive at JLL, said British businesses would look to avoid a referendum on EU membership.
“While most in business will be reassured by the continuity of the Conservative economic plan, there are concerns regarding the planned referendum on British membership of the EU in 2017,” he said.
“British businesses will remain committed to a strong position within the European Union and will need to engage in the reform debate to see if a referendum can be avoided.”
David Lutton, director of competitiveness and financial services policy at London First echoed this view.
“Our members are almost unanimous in wanting the UK to remain at the heart of the European economy,” he said. “One of the things that makes London such an attractive a location for global companies is that it is the business capital of the world’s biggest and richest single market.
“What is needed now is sensible and rational debate ahead of a referendum so that the public have all the information they need to make an informed choice – and business leaders have a strong role to play in that debate.”
There were also calls from industry voices for the incoming government to commit to tackling the housing shortage.
Steve Sanham, development director at developer HUB, called for the expansion of the Community Infrastructure Levy to be used to fund the development of affordable housing.
He said expanding CIL “would have the added benefit of speeding up the whole development process, and make buying land quicker and less complex, which in turn would help quicken the delivery of housing more generally”.
Mr Sanham added: “Planning guidance also needs reform to have greater emphasis on good design.
“Regulations still have a habit on focusing on the wrong aspects of design, which is why so many buildings are emerging that look so very similar, and are of inferior quality.”
Melanie Leech, chief executive of the British Property Federation, said: “We would like to see the government prioritise a coherent plan to deliver increased housing supply; to follow through on the commitment to fundamentally review business rates, and take action to put in place the right infrastructure – including real estate – that will allow our country to thrive.
“The prospect of an EU Referendum will inject uncertainty into the equation, and it is important to have clarity about its parameters and timetable as soon as possible.
“Our industry has the potential to significantly increase the amount of housing in the UK, regenerate our towns and cities, and contribute significantly to the economy if it is provided with the right legislative framework, and we look forward to working with the next government to achieve this.”

The Chartered Institute of Building, meanwhile, has called on the government to tackle the skills shortage and “change the image” of construction.
Eddie Tuttle, senior policy and public affairs manager at CIOB, said: “Whilst pledges that detail a commitment to the number of apprenticeships and graduates represent a significant shift in the right direction – and will undoubtedly help the industry with its response to the current skills shortage, there is a pressing need to change the image of the construction industry in order to attract the best, and the most skilled individuals.
“To achieve this, the industry needs strong leadership and greater recognition – across the political spectrum – of its strategic importance.
“By establishing a close dialogue with industry professionals, this Conservative-led government has the potential to raise the profile of construction and alter the public persona of a career in construction.”