Construction News

Construction News Round up April-June 2024

 

Construction bond bombshell as major player quits market

QBE is a major player in the surety bonds market and the move will be a massive blow to main contractors already struggling to get cover.

One contractor said: “QBE are a key provider in the construction market so this will be a significant issue for contractors.”

Performance bonds guarantee a contractor’s obligations under the contract and protect against insolvency, reducing the risks for the employer who takes them on to do the work.

Adequate bond cover is a condition of most contracts, but providers are tightening conditions following a string of high-profile construction insolvencies.

Source: Construction bond bombshell as major player quits market | Construction Enquirer News

 

A circular economy is within reach – if we listen to the right voices

Construction has a pivotal role to play in the circular economy. The industry remains heavily reliant on the use of materials, products and technologies, and is a significant contributor to the 100 billion tonnes of resources consumed globally each year. The take-make-use-dispose model – whereby natural resources are over-extracted and eventually disposed of in landfill – needs to be addressed.

“Circular thinking pushes us towards new ways of doing business”

The Circular Buildings Coalition, which promotes sustainable practices, estimates that a circular building scenario could, between 2024 and 2050, reduce the volume of material used globally by 6.7 gigatonnes – nine times the estimated amount that the EU construction sector will use this year.

Source: A circular economy is within reach – if we listen to the right voices | Construction News

 

Construction output falls for third month running

Construction output fell sharply in April marking the third consecutive monthly fall since a small uplift was recorded in January.

The 1.4% contraction in activity was caused by decreases in both new work (- 1.9%), and repair and maintenance (-0.8%).

According to fresh data published this morning by the Office of National Statistics, survey returns suggested heavy rainfall and strong winds dampened activity during April.

The latest figures will be a blow to the Government, which yesterday set out its Manifesto plan to boost house building with stamp duty cuts and reinstatement of help to buy for first-time buyers.

At the sector level, seven out of the nine sectors saw a fall in April. The main contributors to the monthly decrease were private housing new work, and private housing repair and maintenance, which fell by 4.4% and 2.5%, respectively.

Source: Construction output falls for third month running | Construction Enquirer News

 

How to prepare for the Procurement Act 2023-Procurement Essentials

The Procurement Act 2023 is about to revolutionise the regulations that govern how the public sector spends money, and you can start getting prepared now.

What is the Procurement Act 2023?

The Procurement Act 2023 is bringing significant changes to the regulations that govern UK procurement.

Each year the public sector spends around £300 billion on public procurement. This includes spend on:

• goods: such as office equipment or hospital beds
• works: the building and maintenance of roads, schools, and major infrastructure projects
• services: adult social care, waste management, and technology services

On 26 October 2023 the landmark Procurement Bill was granted Royal Assent and became the Procurement Act 2023. The Procurement Regulations 2024 were then laid in Parliament on 25 March 2024. This statutory instrument (SI), which is a form of secondary legislation, applies a broad range of powers within the Procurement Act 2023 and provides additional detail about various aspects of the new procurement regime.

This all means the regulations that govern how that money is spent in the UK are about to change.

Source: How to prepare for the Procurement Act 2023 – Procurement Essentials – CCS (crowncommercial.gov.uk)