The future of the city

What should we be thinking about now for then?

Whilst studying International relations and security at university I attended a lecture on ‘the city’. It was one I found fascinating, and a year on, I am revisiting it, from a construction angle to see I if can take a guess at just where we are heading.

Our ever increasing urbanisation is an area we increasingly need to seriously consider. Cities are only so big, they can only hold so many people, and more importantly they can only grow at a certain rate. So what happens when they reach capacity? Here in the United Kingdom we have an estimated annual rate of urbanisation at 0.7% between 2010 and 2015. But with smarter living this is something that can be manageable, and as technology develops so does our ability to handle it. However in the in our ever increasingly globalised world we need to look outside ourselves. Take for example Uganda with an expected annual urbanisation rate of 5.74%[1], is that really a sustainable growth for the city? It is in scenarios like this that we see slums developing, and Uganda is certainly not alone, or even an unreliable prediction. Look at Sao Paulo which saw its favela’s grow by a rate of 19% per year throughout the 1990’s[2]. This may not be an accurate precedent for every city globally, but it is clear that we need to start looking at ways to manage the future of the city. There are technologies being used today in the construction industry designed to vastly increase the time and money it takes to build homes and office buildings alike that could hopefully one day be used to house displaced people and help to put an end the ‘state of nature’ like slums. For example SkyCity, the next tallest building in the world will be constructed in just 90 days at a rate of 5 story’s a day by using pre-assembled pieces, although the building has had its fair share of difficulties and delays. Or the Contour Crafting 3-D printer that can build a house in under 24 hours. However we must be aware of the dangers this brings to the construction industry itself, yes there will be more affordable housing for those in need, but more people will become in need by robot-asising a heavily human workforce.

With increasing technology to construct building and infrastructure alike at unprecedented rates, does this mean we are then heading for the era of the mega-city? Could we see more like China’s plans for the Pearl River Delta, a mega-city twice the size of Wales merging 9 cities, with 42 million inhabitants?

But it’s not just the population increase that we need to look at. We need to seriously consider how climate change and an oncoming resource and energy crisis is going to play out in the city. As they say prevention is the best cure, so why aren’t we looking at more sustainable urban environments now? The answer is that we are, but this, like everything, is going to take time. 




It is clear then that we need to fight slums, and non-slums alike with a good dose of innovation. With smart phones in everyone’s pocket what is there to stop the smart bubble growing out of our pockets and into our city’s? Only our ability to develop the technology to make that giant leap from our pocket to our urban environment. But there is progress from apps like foursquare designed to tailor your trip to town around you, to the ‘smart city’s’ out there currently, but it is my notion that they don’t quite deserve the title ‘smart’ yet. Take for example IBM’s smarter cities challenge. This is less about making cities ‘smart’ right now, and more about making them smarter and more efficient, something they are succeeding in. This can be done by developing technology to better handle infrastructure as in the case of Ho Chi Minh City[3] or working to reduce fuel poverty as in the case of Glasgow[4]. Important yes, and definitely making cities smarter, but this does not necessarily make them smart, well not yet anyway. To look at truly smart cities, we need to enter the world of sci-fi, here things think and act for themselves, inanimate objects are now intuitive and have information at the ready before you ask for it. Welcome to the Sentient City.

So alarm clocks that change the time they go off depending on what the traffic looks like may not be on everyone’s bedside tables tomorrow, but we can see sentient objects beginning to emerge in the city today. You have most probably heard of intelligent bins that texts it owner when it needs emptying, but I would imagine less have heard of the ingenious crime-fighting lampposts, (and you can get that image of a movable, walking talking robot out of your head right now, they look like normal lampposts I promise). Something that seems so futuristic, and yet is soon to be piloted across Glasgow. The lamps it turns out can do everything from monitoring footfall and noise levels, to adjusting the brightness for users, as well as being able to detect disturbances and consequentially alert emergency services, CCTV monitors and being programmed to flash to divert and attract attention. All this and they are of course energy efficient. It is undoubtable that we are moving towards a smart city, where data informs action without the need of human interaction, or informs human intervention where it cannot act itself. It is through technologies like this that we can build more sustainable cities. Even little adaptations like solar powered speed signs may not be what you imagine from the world of Sci-Fi, but are the first step on the stair case to a ‘smart city’.

The smart city essentially uses data to make itself more efficient, an efficiency that is very much needed. With the increasing intersection of Metcalfe’s law and Moore’s law it is an efficiency of which technology and the city is capable. In the space of flows we currently live in, a second electrification could bring unimaginable transformations to our cities and to our way of life. The future is coming, we just need to allow it some old fashioned patience.

“The evolution toward smart cities will likely take quite a bit longer than we anticipate, but the eventual impact will probably be more transformative than we can currently envision.”[5]

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[1] https://www.cia.gov/library/publications/the-world-factbook/fields/2212.html
[2] Mike Davies, Planet of Slums
[3] http://smartercitieschallenge.org/city_ho_chi_minh.html
[4] http://smartercitieschallenge.org/city_glasgow_unitedkingdom.html
[5] http://blog.irvingwb.com/blog/2013/12/are-smart-cities-empty-hype.html

The next round of Innovation Vouchers closes on the 22nd January, so what are they and how do you get yours?

 

The Scheme
The technology Strategy Board (TSB) funds Innovation Vouchers to the value of 5k to help SME's in the Built Environment adapt their working methods and develop innovative processes.
When facing narrowing margins and ever increasing demands this funding allows companies not only to raise their ability to compete, but also to find and build new ways to stride ahead of the competition that may otherwise have been sidelined. 
This may be done by simply adopting new strategies to make your company more efficient and Lean, or by developing a new product or service, and many more in between.


Our Offer
We are offering to assist companies in preparing and submitting voucher applications for innovation projects that require the specialist assistance of Room4. We are offering to do this free of charge subject to availability 


Interest Areas
We are interested in supporting projects in the following areas:

- Lean and efficiency

- Sustainable construction including waste, water and carbon reduction
- Sustainable building technologies
- Building Information Modelling (BIM) - Other new product or process ideas that improve the efficiency and environmental impact of construction.
 

Who is Eligible?
In general to be eligible for the scheme you must:
- be a startup, micro, small or medium sized business operating in the UK,
- not have received an innovation voucher before,
- not have worked with Room4 Consulting Ltd before,
- not have recieved more than £165k of public sector support in the past three years.
 


Next Step
Please contact us for a no obligation discussion about the opportunities for innovation in your business. We will sign to confidentiality agreements where required.

> Call 0151 339 9355
> Email Tim Whitehill
> Visit our website

Innovation comes from the producer - not the customer

WE Deming

  

The autumn statement 2013 and the construction industry

“Britain’s economic plan is working, but the job is not done.”

Yep it’s that time of year again, time for politicians to stand on their soap boxes and tell us what has changed and what changes we can expect to this country’s economy. The Autumn Statement this year informed us that the deficit is down, growth is up, unemployment is down and disposable income is up. Regardless of whether we on the ground are feeling the effects of this it is, apparently, undeniable true.

  So, if things are on the up, how will this affect the construction industry? Can we expect the government to start stamping down even more? Or can we expect kind treatment to grease the grubby pole of recovery?

  According to Chancellor George Osborne it is the latter, and will go something like this:

  In the next two years we will see employers with apprentices being funded directly through HMRC. The Governments is making a £40 million investment in the new initiative, which should see an additional 20 000 apprentices being created over this time. However it is still unclear how this will work exactly, and there is a worry that this will affect SME’s the greatest with complicated and extended routes to payment, not to mention the additional paperwork. However there is a proposed route which does look promising, where a business could potentially calculate how much an apprentice would cost them and claim back linked to taxes, the feasibility of this is still unclear. But with promises of consulting SME’s on the best options things are looking promising.

  There will be reforms to job taxes for young people, with employer National Insurance payments being scrapped for under 21’s. This will effect 1.5m jobs giving a projected saving of £500 to a business employing a young person on a salary of £12 000 salary, and £1000 for a £16 000 salary. This will incentivise companies to take on young staff, it will also help open up the job market to the young, hopefully increasing works capacity for businesses with a slightly reduced financial burden. However these changes won’t come into effect until April 2015 and won’t apply above the upper earnings limit.

 

According to the Chancellor “the latest survey data showed residential construction growing at its fastest rate for a decade." Alongside this we have seen a 35% increase in approval for new developments thanks, he says, to new planning reforms. So this would indicate a growth in the housing market, something we can soon hope to see spread to new sectors, as well as being something that we can hope to endure for at least a little while longer. With the government offering £1bn in loans over six years to unblock sites for large housing developments in Manchester, Leeds and other areas, this will not only ease the housing crisis, but will inevitably bring more construction jobs.

  Alongside this, they are also going to increase the Housing Revenue Account borrowing limit by £300 million, allowing councils a bigger scope in housing development. Not only this, but we will see the ability to sell off more expensive social housing in favour of new developments. So it would seem that there is scope for some movement, and building, of the housing market and that we are at last seeing changes. However there are worries that this may not be going far enough. Not only this but within the construction sector things may seem a little one sided by focusing on the housing market when areas such as schools have gone relatively unmentioned, unless of course you include things like free school meals.

  Earlier we heard that employers with employees under 21 no longer have to contribute to National Insurance, this eases the employer’s burden. Something they will apparently have plenty of time to worry over as the pension age increase has been brought swiftly forward, with the state pension age being increased to 68 by the late 2030’s. The reasoning given by the Chancellor is that as life expectancy increases, so should your working life expectancy. Apparently sound logic in a state where we have an ever growing elder generation that are a continuing burden on society’s financials. However we must raise the issue that although the length of life may be extending, this does not necessarily mean our ability to work longer is also extending. We still feel the effects of our age at times in our lives that will soon far succeed the state pension age. This is particularly true in a sector like construction, where with such a high proportion of manual work, comes such a high proportion of bodily ailments defying our ability to work. Nor does it take into consideration that the average life expectancy in areas such as Glasgow is now 71 for men. For someone born after 1990 this may now mean only one year of claiming pension if we are to follow the government’s plans.

  So as with every announcement from Whitehall there are ups and downs, with many down’s disguised as ups. But either way we can only speculate as to what is to come, and how it will really affect us.

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BIM - Psychology not Technology is the Key to Success

The UK Government’s chief construction adviser has characterised BIM as unstoppable.  There is no doubt that BIM is certainly the ‘buzz word’ of the moment.  Many polarised views have arisen as to BIMs arrival with some seeing it as the ‘silver bullet’ for construction and others of a somewhat pessimistic outlook.  Whatever your view of BIM there is no doubt that it is rapidly reshaping the construction industry and changing the way construction is carried out.

Recent reports indicate that the UK is fast becoming the market leader in BIM gaining recognition not only in the UK but the EU, meaning the work opportunities are perhaps far greater than envisaged.  Those wanting a slice of the BIM pie need to put themselves ahead of the game.  With Government mandating all public work to be completed through BIM by 2016, those that don’t may find themselves at a significant loss of business opportunities and market competitiveness.   BIM is not only for the public sector however and Peter Hansford at a recent address at the ARCOM conference held in Reading earlier this month stated that the private sector are following suit, and are even perhaps ahead. Despite ever increasing awareness and the looming 2016 deadline, the majority however are still yet to engage with BIM.

Back in 2012 we reported on research conducted by Room4 on behalf of the NFB which evidenced that whilst most  construction contractors are not engaging, those that are, are noticing considerable benefits.  In some instances, 20% costs savings have been demonstrated as well significant time savings.  The report also identified that whilst there is concern that SME’s will be left behind with only the big contractors being able to afford and carry out BIM, many are actually bucking the trend with the report finding that contractors with 51-100 employees reported working on more projects utilising BIM tools than their larger counter-parts.
 

Across the pond, McGraw Hill conducted an internet survey to gauge the practitioner perception of the value of BIM which elicited 2,228 completed responses from a variety of professions including, 598 Architects, 326 Engineers, 817 Contractors, 118 owners, 73 Building product manufacturers and 296 other industry respondents.  The findings revealed that 77% of users perceived a positive ROI on their investment, 87% were experiencing a positive ROI and 93% believed there is more value to be realised in the future. Given the positive feedback from the US, engaging with BIM might therefore help put us ahead not only at UK and EU level but also worldwide.

Collaboration is Key - Psychology not Technology

There has been a tendency to focus on the technological implications of BIM leading to some misconceptions. Having attended a number of various sessions on BIM during the last few weeks, including a number of research presentations and the BIM Task Group meeting, what is becoming increasingly apparent to me as I try to grapple with the underpinnings of BIM myself, is that it is (not at the moment at least) not just about technology.  It is the knowledge sharing platform that BIM creates that is the key component.  In essence BIM is just a process but one that requires people at the forefront to drive it.  It requires people foremost, process second and technology last. 

Collaborative relationships are vital to the successful delivery of projects and thus the knowledge platform will only be successful if there is mutual adjustment by all parties involved.  This for some may be harder to get to grips with than the technology aspect. Whilst collaborative working has improved within industry in recent years, BIM requires taking this to another level. Trust must be developed and relationships nurtured. This requires a significant change in mind-set.  The silo mentality currently adopted by industry is the biggest barrier to adoption.  It could be said that the business case for BIM has been made.  The biggest challenge is changing the mind-set of industry to get on board.  The industry is on a transformational journey whether it likes it or not and in order to see BIM implementation through, managing change at both cultural and operational level is paramount.  To stay competitive companies have to be mentally prepared for the upcoming transformation. 

BIM will no doubt be a dynamic process, updated frequently resulting in a constantly evolving business environment.  Adopting a proactive approach and ingraining it as part of your company strategy now will ensure minimum impact when and if change does occur and that you are mentally ready for the challenges that lie ahead.

There is no doubt there is still a long way to go with BIM.  Many clients asking for BIM are unsure of what it actually entails and how it can be used to deliver their projects and so for industry this creates further challenges! Those engaging with BIM however will be better informed to inform the uninformed when they come knocking requiring BIM on projects. The earlier companies adopt BIM, the greater their catalogue of evidence demonstrating BIM capability will be. A critical success factor for collaborative working is also early involvement.  In a fast growing market, those wanting to be at the top of tender lists need to start making headway.  This takes more than just technological learning.  It requires a shift in mind-set, not on an individual level but on an organisational level. 

Want to get 'BIM ready'? Why not start by taking our BIM diagnostic ?

The Social Value Act - how will this effect the construction industry?

In January this year the Social Value Act was officially enacted.  The Act aims to change the way that public money is spent ensuring value for money in public service delivery.  This means that all services commissioned by public authorities must now demonstrate social value with this being incorporated into the design of the service.  At a time when government spending is being cut back but the demand for public services is rising, this is obviously an important objective for Government.

Chris White MP who introduced the Act in 2010 stated “The aim of the Act is to support community groups, voluntary organisations and social enterprises to win more public sector contracts and to change commissioning structures so that a wider definition of value rather than just financial cost is considered.”

The Act requires authorities to consider: 

• how what is proposed to be procured might improve the economic, social and environmental well-being of the relevant area, and

• how, in conducting the process of procurement, it might act with a view to securing that improvement

So what does this mean for construction?  The Act means that the way public procurement is undertaken will change.  More specifically, the Act applies to the pre-procurement stage of contracts for services because that is where social value can be considered to have the greatest effect, meaning that for the first time the public sector must consider social value ahead of procurement. 

The social value act applies to public services, and is not necessarily enforced on public works. However it is undeniable that this will have a knock on effect. Not only in the desire of those choosing the successful bid to show they are using socially valuable construction companies. But we can also see this desire quickly becoming legitimised as criteria for tender.

If we look to Wales we can see that since 2011 they have been pushing community benefits to public procurers through their guidance document, in the aim of establishing maximum value for the Welsh pound.  This takes the spirit of the act and goes a step closer to us in applying it to public works.

With the act placing directives on those that employ us, community benefits increasingly appearing as requirement for tender, and governments issuing guidance on how to deliver, should this be something we are turning our minds to? Regardless of what strictly speaking applies to us in the construction sector, if we as conscious individuals can see a shift in the culture of our larger environment, should we be paying more attention to it? Is this an opportunity to predict how this topic might affect us in the future?

If we believe this as true, there are two ways this may affect us for the better: Getting to grips with these changes now can easily and effectively gain us a competitive advantage. But it also benefits us by ensuring we are prepared for what may be enforced on us in the future. In realistic terms if you can demonstrate securing both best price and meeting the wider social, economic and environmental needs of the community, it may not only  place you higher up the ranks on tender lists, but with this criteria being a growing requirement on tender documents, it will ensure you are able to compete in the first place.

Given that the Act came in without much publicity, many are perhaps still getting to grips with the technicalities of it all.  Government have provided an ‘action note’ however this does  not specifically set out a number of points including how the results of these impacts and feedback from accompanying consultation should shape any procurement which is undertaken.  It does however provide examples of how social value may be considered at various stages of the procurement process. 

With the construction industry just getting back on its feet after the latest economic downturn, implementing and achieving these wider reaching aims alongside price and quality may seem a rather large task.  Engaging with the Act early on and getting to grips with the fundamentals however will help secure a better position in the market when it comes to the bidding process.  

If you'd like to learn more about the Act and what it means for you, join our free webinar on 30th October.

Industry and Academia Collaboration for a Better Future - where are all the students?

In June Constructing Excellence held the Universities and Industry Working Together for a Collaborative Future’ event at the BRE in Watford.  As a PhD student and trying to engage with industry for my research I thought this would be a good opportunity to see the real interface between industry and academia.

The day started with a number of talks from both academia and industry with questions to the presenters at the end. Some strong polarities developed around the room during the discussion, making for interesting listening.  

Workshops were conducted throughout the afternoon of which I attended the two I thought most relevant to myself. The first was the ‘Research and how it can be used to educate inform and inspire’ which was met with both enthusiasm and cynicism in my group (myself being the former).  Anna Scothern from BRE gave a presentation about the development of a community platform via mobile apps where customers can easily engage with aspects such as the Green Deal, BREEAM and receive information from BRE on a range of other topics. Personally I thought this  demonstrated  how research can benefit industry and consumers, although not everyone in the room felt the same questioning where and how some aspects would work. 

The second workshop was with our very own Katy Harris facilitating as part of the Collaborative Working Champions Group. A number of workshops around this topic were conducted and at the end each group presented their discussion results to the room.  The workshops centred around the question ‘what is the industries view of best practice and what modern graduates need to know and is this being reflected in the current delivery of HE?  What are the barriers to improvement?'  A broad ranging question which met with a broad range of diverse answers!

A key theme that emerged from this workshop and those associated with it was that practical experience is important.  The disappearance of the sandwich year was a topic  which met with great interest in my group.  An afterthought that came to me surrounding this was just how on board with this would industry actually be?  Time and resources are scarce especially after the economic downturn and workforces in some cases are operating at two thirds of the capacity.  Would industry really be willing to give up time and resources to engage with students?

In my own research on sustainability I have come up against much resistance from industry.  Comments such as “we will get there but it will be like the health and safety issue, it will take time”.  It doesn’t have to, not if industry adopt a proactive rather than the reactive approach they currently adopt.

A thought that struck me during the day was that I was the only student at this event and there only by default through my position at Room4.  If industry and universities are to have a true collaboration we need student engagement.  The construction industry is a dynamic one and needs dynamic individuals.  Talent and innovation is out there in the form of our graduates.  The graduate pool is not being utilised to the extent that it should be (or indeed the undergraduate pool).  I know from my own research that the construction industry is a resistant one and dislikes change.  Change however is key if the sector is ever to move forward. 

Positive comments however emerged from the day with Giles Price from Heathrow Airport presenting commenting “Give me a graduate with energy and passion and I'll take 'him' above all others!”   Had such a graduate been present in the room might he have landed himself such a position?

My overall experience of the day was that we still have a long way to go in integrating industry and academia.  Links between the institutions themselves are well established but are not utilised effectively.  In addition, and in my opinion, the voice of the students is a missing link here.  A question posed by Katy “where are all the bright sparkly things?” is a very good one and prompted me to write this blog.  A platform where ideas are exchanged and where employers can spot talent and bring it on board is needed.

Is Social Media the way forward?


Social media is a powerful tool and is indeed the very means by which I find myself in my current position as a Trainee Consultant at Room4. I see all the time on Linked in and Twitter students trying to engage with industry about projects they are working on.  Employers need to engage more with students on these platforms as it’s where the ‘bright sparkly things’ are.  You never know what you might find.  It’s where Room4 found me.  My background is not in construction but psychology.  My research area however has crossed me over into the complex world of construction.  Whilst I don’t bring any construction skills to the market I bring people skills, critical thinking along with passion and drive for achieving sustainability in construction (amongst many others!). 

Our latest recruit, Frankie, came in 2 weeks ago fresh out of university and has already assisted our managing director in delivering a workshop on social media in the construction industry as well as transforming our own social marketing agenda. (Check out Frankie’s blog about her experience and the ‘Frankie Challenge’).

Comments from the collaboration event were tweeted throughout the day generating a good stream of conversation and food for thought, again highlighting the use of social media.

Not yet conversant with the world of social media?  Why not attend our free social media and marketing webinar on 16th October?  And if you’re Interested in helping with my research you can complete my survey and request info/feedback to me at michelle.brennan@room4.co.uk 

http://events.constantcontact.com/register/event?llr=doh5sujab&oeidk=a07e80db6kha5cc311cfree social media and marketing webinar on 16th October?

How BIM ready are you?

If you need to know where your company currently is on the BIM maturity scale or how you can 'get ready' for BIM Level 2, then this is the place to start.


Building Information Modelling (BIM) is the future of construction.   The drivers couldn't be simpler. Unless you are working at level 2 BIM by 2016 you will be ineligible for public sector work.  

In 2012 the NFB published their report BIM: Ready or Not?  The report was based on an industry wide survey which set out to assess the BIM readiness of the contracting sector with a particular focus on SMEs. At the time the survey confirmed that the industry did indeed have a giant leap to make to achieve the Government mandate of BIM Level 2 as a minimum on all government funded projects by 2016. 

As part of the NFB's BIM programme of support Room4 have developed Building Information Modelling (BIM) online diagnostic tool, FREE to organisations looking to implement BIM strategies within their organisations.

Simply click on the link below and answer some simple questions to receive an overview of where you are on your BIM journey and a top level action plan for what you need to do to move forward.