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Sector Deal to Initiate Revolution in Modern Construction Methods

Greg Clark, Business and Energy Secretary, announced a new partnership between the government and the construction industry at the Northern Powerhouse Summit. The investment, which is valued at £420 million, will use digital building design, offsite manufacturing, and new manufacturing technologies to cut new build delivery times by 50%.

Prosperity Capital Partners development director Ed Fowkes said that the government announcement will help modernise both the property and construction industries. By using modern methods of construction, much-needed homes can be delivered more quickly and efficiently.

With Brexit hovering over everything, the UK government needs to resolve the structural problems plaguing construction while encouraging more young talent to seek a career in the industry. The government’s sector deal is expected to do just that.

The Business and Energy Secretary said that the construction industry is an important part of economic growth. Major infrastructure projects like the pledge to deliver 1.5 million homes by 2022 mean that the sector needs to adopt modern methods of construction to deliver both homes and infrastructure more quickly.

Construction Leadership Council co-chair Andrew Wolstenholme said that the industry needs to spearhead the drive for future prosperity and growth in the UK, and expressed confidence that the deal would achieve this outcome.

Structural Defects Insurance

The Construction Sector Deal will provide:

  • An investment of £420 million to transform construction and speed up output through use of modern methods of construction
  • Lower energy bills for business and families by halving new build energy use by 2030
  • 1,000 Construction T Level placements and 25,000 construction apprenticeships by 2020
  • Global exports worth $2.5 trillion -a competitive sector aimed at the fast-growing international infrastructure market

Jonathan White, KPMG head of infrastructure, building and construction in the UK, said that he was pleased to see the government acknowledge that construction requires support if it is to support the future of the UK economy.

He said that the deal correctly pinpoints low-profit margins and lack of digital investment as problems. With low margins, it is difficult for businesses to make tech a priority, but they are not likely to increase their productivity without this investment. The new funding can help finance this change.”

Peter Caplehorn, Deputy Chief Executive and Policy Director at the Construction Products Association, said that these far-reaching plans will modernise and improve the construction sector while reassuring a supply chain heavily affected by Brexit.

The construction sector has already shown where it can experience a renaissance via offsite manufacturing and speciality manufacturing technologies that boost productivity, deliver quality properties more quickly, and make a career in construction more appealing to young people.

Mr. Caplehorn said his organisation was also pleased to see its work around LEXiCON and product data mentioned in the deal, as it believes that this will help ensure that buildings and homes function as intended and are safe for occupants. He added that it was promising to see the government commit to the long-term vision and he hoped that the industry and the government would work together to deliver real results.

Specialists in Construction Insurance


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