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London Greater Authority Invites Firms to Bid for Building Construction Work

In a drive to boost the housing market and accelerate the building of new properties in the capital, the Greater London Authority (GLA) is seeking developers to join a new £5 billion procurement panel which will open more work for external contractors and building developers, Construction News reported today.

From 2013 the new housing procurement panel will replace the current Homes and Communities’ Agency, the London Delivery Partner (LDP). It is going to be managed directly by the GLA, speeding up the process for building private and social houses as well as improving the development of properties in the public sector.

The new panel will recruit up to 28 building firms that employ thousands of workers in the building construction engineering sector. This could provide more employment opportunities for trade professionals.

A bidding process is currently open to any firms that are capable of delivering housing developments, raising sufficient finance and improving community facilities. Interested developers need to apply before 4th May 2012 and successful bidders will be awarded by 1st April 2013.

The scheme is expected to increase competition between contractors and improve current housing standards as well as optimise the process of marketing and selling new homes in the capital.

What’s your reaction to the £5 billion fund which will give the Greater London Authority more control over future housing developments in the capital? Share your thoughts by leaving a comment below: 

 

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Train4TradeSkills News: Construction industry bounces back with positive Q2 results

After a disappointing set of results in the first quarter of 2011, the construction industry has bounced back and had a promising second quarter.

The UK construction sector recorded a growth of 0.5% in the second quarter of 2011, which shows that the industry is recovering from a bad end to 2010 and early 2011, as freezing temperatures affected construction activity over the winter months.

The construction industry actually outshone other sectors, as the industry performed well compared to the rest of the economy.

The Chief Executive of the Construction Products Association, Michael Ankers said about the figures:

“Growth in private sector construction has finally begun to recover and although public sector construction output remains stronger than we had anticipated it is clear that the impact of the public sector spending cuts is still to be felt and is forecast to cause sharp falls later this year.”

That’s the thing, as we can’t bask in good news for once, as these figures don’t take into consideration the government’s spending cuts, which will be shown in the next set of figures for Q3 and Q4.

The spending cuts are expected to hit the public sector hard, which means the UK construction industry needs the private sector to step up if it wants to continue its growth in 2011, with the hope that big projects like the Green Deal can stimulate the industry.

Michael Ankers sums the spending cuts up, saying:

“These public sector cuts will begin to hit the construction industry in the second half of the year. With the continuing economic uncertainty and falling consumer and business confidence, we are forecasting that construction output this year will be slightly lower than in 2010.

But there are some positive areas to focus on, with Mr Ankers saying:

“Construction work is also very much focused in the South East and particularly Greater London where there are major projects such as the Olympics, Crossrail and a number of major commercial developments.”

This is evident by the large number of new projects going ahead in London, and an office boom in the capital, as construction work on Olympics projects reach completion. It has been well documented that the construction industry is struggling at the moment, as we are in the midst of a recession, and won’t really start to improve until 2013/14, but at least these signs are encouraging for 2011.

What do you think? What do you expect the construction industry to be like in the next year? Let us know what you think by commenting below: