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McBains’ Summer 2025 Construction Market Report said that confidence was returning to the sector but warned clients remain cautious about pricing risk – making it harder to strike deals on large two-stage contracts. Colin McCaffrey, director at McBains, said: “Most organisations remain cautious about pricing risk, which is causing hurdles in negotiating deals on large two-stage contracts. “We forecast an increase in the use of innovative procurement strategies including the possible resurgence of the package-based procurement model, which offers an alternative to traditional lump sum contracts, and larger contractors choosing to self-deliver where possible, such as splitting mechanical and electrical services into smaller, separately procured trades.” The report also says more contractors are seeking to explore co-investment opportunities, seeking higher returns through shared risk and reward. McBains is forecasting tender price inflation to rise by 2% in both 2025 and 2026, with overall market output reaching nearly £170bn by the end of next year. Private housing, infrastructure and industrial work are all expected to post growth, but the sector will still face planning logjams, skills shortages and rising wage bills – with labour costs set to climb 19% by 2029. McCaffrey added: “Despite challenges, the report shows that medium-term confidence is buoyant, with growth in private housing, infrastructure and industrial work predicted.” Read More

A strong performances from its highways, materials and civil engineering businesses drove the recovery at the group which has been corporately restructured combining Eurovia and mainstream construction into a new unified UK group. Revenue, including joint ventures, across the five main operating businesses rose 7% to £2.45bn. Eurovia, Ringway and Taylor Woodrow all posted operating returns above 4%, with highways maintenance, specialist surfacing, and major infrastructure schemes underpinning the rebound. But the overall result was tempered by heavy provisions against legacy risks in the building and facilities businesses, linked to historic fire safety claims, fixed-price contracts, and PFI disputes. The new consolidated business accounts detail extra provisions of £24m for construction project losses taking the running total to £88m at year-end, and extra provisions of £8m for after sales service relating to warranties on completed projects, taking this total to £80m. Vinci Construction group operations trading Business Revenue % change Operating profit Op. margin % Eurovia £197m 11% £10.1m 5.1% Ringway £565m 8% £29.3m 5.2% Taylor Woodrow £381m -3% £17.1m 4.5% VINCI Building £606m 9% £10.7m 1.8% VINCI Facilities £598m 9% -£18.9m -3.2% Chief executive Scott Wardrop said the results marked a pivotal point in the group’s three-year recovery plan following the 2023 merger of Eurovia UK and Vinci PLC into Vinci Construction Holding. “Our Eurovia, Ringway and Taylor Woodrow businesses all had exceptional results in 2024,” he said. “But due to the impact of the significant provisions made for VINCI Building and VINCI Facilities risks, the group’s second full year trading was suppressed. “We now have a three-year plan for each business and unit, and we plan to deliver a 3% operating result in 2025, the last year of our recovery plan.” Vinci said the order book surged 71% to £3.4bn by the year end, supported by contract wins in the highways, rail, energy and defence sectors. It also held a cash balance of £597m. Vinci entered the new 2025 financial year buying a 100% stake in highways contractor FM Conway to boost its highways and materials footprint across London and the South East. Following this, the group bolstered the balance sheets of its building and facilities companies, injecting £61m into Vinci Construction UK, £60m into Vinci Building, and £45.7m into Vinci Limited to support working capital and strategic delivery. Wardrop said the group’s financial firepower, combined with the backing of shareholder Vinci Construction SAS, positioned the UK business to deliver sustainable growth. He said: “We have endured significant change in our careers, but this period has been unprecedented. It has enabled us to evolve through optimisation, innovation, and, when necessary, transformation. We are emerging as a strong and resilient dynamic UK infrastructure group.” Read More

Select sold its construction plant fleet to Explore in 2017 Explore Transport Limited, a 50:50 joint venture between Laing O’Rourke’s Select Plant Hire and WS Transport, is being carved into two. Select Plant Hire is acquiring Explore Transport’s civil plant and tool business, while WS Transport is taking sole control of Explore’s transport and rail plant operations. WS Transport is owned by William Stobart and his son Edward Stobart. Explore Transport was set up in 2015 to take over Laing O’Rourke’s Worksop-headquartered transport operations. The relationship expanded in 2017 with the creation of Explore Plant, to which Select sold its construction plant operations to focus on cranes. More than 500 mobile mechanical machines, including more than 200 excavators, were transferred to Explore along with several thousand tools, and a substantial inventory of formwork, lighting towers, bowsers and other equipment. The two parties said that breaking up the joint venture would enable each to focus on its own core strengths. The relationship will continue, however, with Explore Transport remaining the exclusive transport and haulage provider for both Select Plant Hire and Laing O’Rourke. Select Plant Hire business unit leader Mark Herlihy said: “Select Plant Hire is delighted to be bringing this business back, and further enhancing Select’s plant capability, whilst continuing to work in an exclusive logistics partnership with Explore Transport.” WS Transport managing director David Cox said: “We are delighted to confirm that Explore Transport will be continuing the strategic partnership with Laing O’Rourke and Select. Throughout the last 10 years we have seen the business develop into three very distinct streams and this transaction will enable both businesses to continue to develop and benefit from the individual strengths of our organisations.” Got a story? Email news@theconstructionindex.co.uk Read More

Britain has an abundance of mineral resources in the ground but securing the permitted reserves to meet the country’s demands requires long-term planning, which is currently lacking Permitted aggregate reserves in Great Britain fell by 46% between 2001 and 2023. That is one of the headline findings of the Aggregate Minerals Survey 2023 (AM2023) that was published last week. The Aggregate Minerals Surveys are conducted every four years by the British Geological Survey (BGS) for the Ministry of Housing, Communities & Local Government (MHCLG) to assess the national supply and demand of aggregate to  inform future mineral planning policy. According to the Mineral Products Association (MPA), the proposed changes to the planning system that are meant to speed up new housing approvals will do little to halt the decline in permitted reserves of the materials needed to build them. Aggregates continue to represent the largest material flow in the British economy, comprising the vast majority of materials for all construction products and being the only bulk material to be sourced almost entirely domestically.  MPA has called on the government to renew its commitment to the long-established managed aggregate supply system (MASS) that is intended to ensure a steady and adequate supply of aggregates for construction and industry. Yet despite years of warnings from the minerals industry to the contrary, successive governments continue to take aggregate supply for granted whilst reserves continue to dwindle, the MPA says. Mark Russell, MPA executive director for mineral resources, said: “Aggregate Minerals surveys are a vital part of the managed aggregate supply system.  Failure to respond to the findings of AM2023 would create a serious and costly risk not just to the minerals sector but also to the construction industry and the wider national economy, especially given that up to half of all aggregates are procured, directly and indirectly, by the government. “As it stands, areas such as the southeast of England rely heavily on imports of materials from other regions in the country. The long-term planning for these supplies and the transport and infrastructure needed to deliver them, is vital to economic development. Britain is blessed with a diverse geology and while we understand the government’s focus on ‘critical’ minerals over recent years, it has undoubtedly taken its finger off the pulse regarding the bread-and-butter minerals that the economy, and in particular the construction sector, relies upon.  We hope the government will heed the message from the AM2023 report, that the decline in permitted reserves must be urgently addressed to support investment in UK plc.” The MPA has repeatedly highlighted that government policy, particularly around the delivery of housing and infrastructure, assumes that mineral products like aggregates (and downstream products such as concrete and asphalt) are in plentiful supply.  However, the reality remains that while Britain does have an abundance of mineral resources in the ground, securing the permitted reserves to meet the country’s demands requires long-term planning, monitoring and continual management.  But the national and sub-national Guidelines on Future Aggregate Provision, providing essential forecasts of need, have not been renewed since 2009, with the latest guidelines having expired in 2020.  On the back of the Planning and Infrastructure Bill, the MPA is lobbying government to provide more support and stronger planning policy for the mineral planning system as it anticipates a refresh of the national planning policy framework towards the end of the year. A further risk to supplies is that the vast majority of current planning permissions expire in February 2042. The BGS AM2023 report shows that total permitted reserves of aggregate in Great Britain, (including sites worked in the past but still containing reserves and sites that have yet to be opened) at the end of 2023 were 5,106 million tonnes (Mt). Crushed rock accounted for 90% (4,589 Mt) and sand & gravel the remaining 10% (518 Mt). Total permitted reserves in Great Britain have decreased by 359 Mt (7%) since 2019. In England and Wales, total permitted reserves show a 10% decrease of 396 Mt since the previous report (2019) when total reserves for aggregate use were 4,157 Mt, comprising 3,697 Mt of crushed rock and 460 Mt of sand and gravel. In 2023, total consumption of primary aggregates in Great Britain was 164.9 Mt in 2023, of which 137.1 Mt was used in England, 15.5 Mt in Scotland and 11.5 Mt in Wales. AM2023 does not consider the contribution of recycled or secondary aggregates (those derived from demolition or industrial by-products) which MPA data shows account for around a third of the total aggregates consumed in Great Britain. The importance of inter-regional supply reinforces the need for minerals to be planned strategically. Inter-regional flows of crushed rock are significantly larger than for sand and gravel because of the overall larger demand for crushed rock, particularly for roadstone, and because some regions, including London, the southeast and east of England have only minor or inferior quality crushed rock resources. Got a story? Email news@theconstructionindex.co.uk Read More

The first of five beams is set on tressels Major sections of a replacement railway bridge which will take the West Coast Main Line over the M6 motorway are arriving on site ahead of its complete overhaul next year. Network Rail is investing £60m to replace Clifton bridge near Penrith so it can continue to trains over one of Britain’s busiest motorways. Weight restrictions on the current 60-year-old structure mean that it can only carry one train at a time, causing delays to train services. Once constructed in January next year the new bridge will be 130 metres long and weigh around 3,000 tonnes.  In recent weeks, Network Rail and its main contractor Skanska have welcomed the delivery of the first of five beams for the new three-span structure. The parts are fabricated in Glasgow before making their journey south, ready to be assembled on a purpose-built work site next to the M6 in Clifton. The main work starts in January 2026. Skanska’s rail programme director, Rosario Barcena, said: “We’ve had fantastic collaboration on this project, including with Network Rail, National Highways, local authorities and our supply chain partners.  “To see the first steels arriving on site is a massive achievement. Our expert team is now very much focused on building the new bridge off site and planning for its installation in early January.” Got a story? Email news@theconstructionindex.co.uk Read More

The CITB has launched its Training Provider Network (TPN) for approved training providers across England, Scotland and Wales. To become a member, training providers must deliver training relevant to employers in the construction industry and meet a quality assurance criteria specific to the type of training they provide. And pay CITB up to £1,000 a year. TPN members are offered the opportunity to connect directly with employers through initiatives like Employer Networks, to build relationships with employers and create better work placements and employment opportunities for new entrants. There are four types of training categories that a training provider can apply to offer: Endorsed: You are delivering training that that is not standardised or accredited by CITB or an awarding organisation but supports the construction industry. This includes soft skills training. This category is free of charge. Recognised: You are delivering training that is approved by an awarding organisation e.g. City & Guilds, or qualifications regulated by Ofqual, SQA or Qualification Wales Assured: You are delivering training that can be mapped against appropriate CITB short duration training standards Licensed: You want to deliver CITB Site Safety Plus (SSP) courses, or become an Internet Test Centre (ITC) for the CITB HS&E test. Fees for this are £1,000 a year. The CITB says that members of the TPN will be recognised by the British construction industry as a training provider who delivers quality-assured training. CITB nations engagement director Deb Madden said: “Everything we do at CITB is about meeting the skills and training needs of the industry. Training providers are vital partners in driving necessary change, which is why we’re  launching the Training Provider Network. It will create a platform for training providers to have a stronger voice in shaping the future of construction training. “The network will also work alongside our well-received Employer Networks initiative so that construction employers have access to a trusted pathway to quality training exactly when and where it’s needed.” Got a story? Email news@theconstructionindex.co.uk Read More

Thornham wastewater treatment works Kier has been awarded a £15.8m early contractor involvement (ECI) contract under Southern Water’s strategic delivery partner framework for asset management period 8 (AMP8). It is Kier’s first project under the framework. The contract covers early-stage design and planning for nitrogen reduction works at Portswood wastewater treatment works and the installation of UV disinfection at Thornham wastewater treatment works, where capacity upgrades are also being developed. At Portswood, near Southampton, Kier is developing solutions to meet a new total nitrogen discharge consent of 9mg/litre by 2030, in line with the Water Industry National Environment Programme. The site is heavily constrained, requiring innovative, space-efficient approaches. Current proposals include repurposing existing infrastructure and expanding the activated sludge and tertiary treatment facilities. At Thornham, near Havant, the scope includes installing a UV disinfection system to improve shellfish water quality by 2027, alongside longer-term upgrades to increase treatment capacity to support population growth. Options under consideration include converting the plant to an activated sludge process and building new assets south of the existing site. Southern Water capital delivery director Simon Tomlinson said: “Together, these upgrades will help Southern Water continue to deliver safe, high-quality wastewater services for its customers, strengthening resilience, supporting regulatory compliance, and enhancing environmental performance across its network.” Rob Campbell, operations director, water for Kier Natural Resources, Nuclear & Networks, said: “These are two technically complex schemes on constrained sites, and we’re bringing our expertise to shape the right long-term solutions. This early collaboration sets the tone for how we’ll work together throughout AMP8, aligned, agile and focused on delivering real value for communities and the environment.” Got a story? Email news@theconstructionindex.co.uk Read More

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The formal revival of Northern Powerhouse Rail (NPR) is set to be a centrepiece of the Labour Party’s policy platform ahead of its conference next month, according to reports. Government sources told The Guardian that prime minister Keir Starmer, chancellor Rachel Reeves and transport secretary Heidi Alexander would all make speeches about the project before or during the September event. According to the newspaper, the announcement aims to boost the morale of backbenchers and show commitment to the northern areas of England where the party has traditionally been strong but now faces a challenge from Reform UK. The Yorkshire Post reported a government source last week suggesting the announcement could take place at the party’s conference. The rail line connecting Liverpool and Leeds with links to Sheffield and York has been repeatedly announced – and twice cancelled – by ministers since 2015. It has often included a proposed station at Bradford (pictured). Ben Brittain, director of public affairs at the Association for Consultancy and Engineering, told Construction News that HS2’s Manchester leg should be revived alongside NPR. He said: “Northern Powerhouse Rail has the potential to catalyse a renaissance in northern England and create an economic powerhouse. “To maximise the full effect of the rail project, it must be linked to the wider national rail network; any revival of NPR must thus be echoed by a revival of HS2 to Manchester.”   Last month the government announced plans to sell off land between Birmingham and Leeds that had been earmarked for HS2’s eastern leg, but left a section between Crewe and Manchester protected from development. In January 2024, Starmer said the Labour Party, then in opposition, would not revive HS2’s second phase and was committed to a form of NPR, but that the shape of the project would be decided later. Introducing her Spending Review in June, Reeves said: “In the coming weeks I will set out this government’s plans to take forward our ambitions for Northern Powerhouse Rail.” An announcement has yet to be made. Alexander told the Yorkshire Post last week: “We’re working through some detail following the Spending Review allocations, but we know to get the country’s economy firing on all cylinders we need to support local economies in places like Manchester, Leeds and York, and we will be saying more in due course.” The scheme appears in the recently released National Infrastructure and Service Transformation Authority’s (NISTA’s) published infrastructure pipeline. Its project summary is described as “increasing connectivity and agglomeration across the North of England from west to east”, without any specific detail included. Earlier this week, it was given a red rating in NISTA’s annual report on the viability of publicly funded projects, meaning “successful delivery of the project appears to be unachievable”. The body, which replaced the Infrastructure and Projects Authority and National Infrastructure Commission, said red ratings are often given to projects in their early stages. A Department for Transport spokesperson said: “We are investing in the North and delivering transformational projects across the region, such as the multibillion-pound Transpennine Route Upgrade, and we will set out our ambitions for Northern Powerhouse Rail in the near future. “Reliable and affordable public transport links are essential for supporting jobs and driving economic growth, and key to our Plan for Change, and we continue to work with local leaders to improve rail connectivity.” Read More

The Health and Safety Executive (HSE) is to review regulations on workplace heat, amid calls for legal maximum temperatures. The regulator is drawing up a consultation on issues including heat stress at work. The move follows campaigning from unions on the issue and comes as the Labour government moves forward with measures to increase workers’ rights. A scientist at the Cambridge University Hospitals NHS Foundation Trust asked at the HSE’s recent AGM whether the watchdog would introduce a legally binding maximum working temperature “to prevent heat-related workplace concerns”. HSE director of engagement and policy Rick Brunt said potential changes to its workplace code of practice relating to the Workplace (Health, Safety and Welfare) Regulations 1992 would be considered “shortly”. “One of the things we will be consulting on is different potential temperatures as trigger points for certain action, heat stress and so on,” he said. “It is part of the government’s manifesto commitments and that’s the umbrella that we’re looking under. “I can’t say, yes, definitely there will be [a maximum temperature]. I can say we’re in the process of reviewing and taking into account what evidence might point us in that direction.” Current regulations mandate that the temperature in all workplaces inside buildings shall be reasonable. The Construction (Design and Management) Regulations specify the need for reasonable workplace temperatures at indoor areas of construction sites. “Where the site is outdoors, you must provide protection from adverse weather. Site rest facilities must also be maintained at an appropriate temperature,” they add. The HSE’s code of practice currently suggests a minimum indoor workplace temperature of 16°C or 13°C “if much of the work involves rigorous physical effort”. Unions have long called for stronger regulations on workplace temperatures with Unite asking for a maximum of 27°C for “strenuous” jobs and 30°C for “sedentary” work. The Trades Union Congress held a week of action last month over heat issues. It pointed out that working in hot weather can lead to dehydration, tiredness, muscle cramps, fainting and even loss of consciousness. Those who are working for long periods in high temperatures are at serious risk of sunstroke, heat stress and skin cancer, it added. TUC general secretary Paul Nowak said: “With heatwaves becoming more common, we need to adapt. “We need new laws on maximum working temperatures, improvements to workplaces to keep them cool and climate action to reduce global heating.” During a parliamentary debate in July, Green Party peer Baroness Natalie Bennett put forward an amendment to the Employment Rights Bill asking for consideration of a maximum workplace temperature. “There is an obligation on employers to provide a safe workplace, but without that maximum temperature, and with circumstances [high temperatures] arising that neither workers nor employers have encountered before, we really need to set some guardrails for the safety of workers,” she said. Bennett withdrew the amendment after being told the HSE was already reviewing the issue. Mayo Wynne Baxter solicitor Ross Spiller said: “Given the occurrence of more frequent and intense heatwaves during the summer months as a result of climate change, the push for updated rules is not surprising. “Employees must not be subjected to disciplinary action as a result of raising health and safety concerns or taking action to protect their health and safety. “In specific circumstances, employees do already have the right to leave an unsafe workplace. “The updated regulations or guidance from HSE will provide greater clarity to both employers and employees on when these rights can be relied on.” He added that workers with specific characteristics, such as pregnancy or certain medical conditions, may be more affected by hot weather and that a ‘one size fits all’ approach might not be appropriate. Read More