Strategies for development of UK construction industry

Chapter 1: Introduction

1.1 Introduction

In the United Kingdom economy, which comprises a sea of goods, services and technology, the UK construction sector is key. This can vary concerning their economic benefit, indicating variations in the usage of specific productive factors and their value. Accordingly, UK building can be listed as, firstly the construction procurement sector, then the provision of technical facilities in construction and then the construction of goods and resources. The building industry globalization, which is expected to increase by over 70 per cent by 2025, would provide a substantial rise in this business. In recent years, a great deal has changed in the building sector and the workers’ specialities have started to adapt to this change of activity. Due to the current health and safety rules but also in building codes, more professionals and skilled personnel are essential. The sector requires professionals who can recognize and incorporate the latest reforms. Professionals and technicians should be trained at universities or universities to acquire the skills necessary. Although professional professionals, electricians, plumbers and carpenters, acquired their understanding of their specialities. This also called for an organizational framework to support cohesion between all parties (professional, skilled and technical).

The advantages of all three groups operating together included the opportunity to collaborate more quickly and efficiently while eliminating the need to do all things for one party. It saves resources as more people collaborate on a job. Furthermore, once it starts performing the same things over time, the skill would be more specialized and stronger at what it is doing. The productivity will generate allows the business to make more money and rise with the demand. The UK building industry has faced difficulties for years to improve its competitiveness and to improve the value and/or save time. Construction efficiency is by definition the overall building value (GDP), split between the total hour (hour) employed, i.e. the worker time. UK production has decreased by 20% following the recent global financial crisis, which has been projected to be the result of a mixture of human, economic and cultural influences. However, prospects are now being offered to boost UK construction efficiency and improved use of digital mobile solutions could contribute to a sector change in 2020. We summarize and better clarify all of this in this article.

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1.2 Background of the study

The UK building industry is currently among the biggest industries, adding 90 billion pounds to Britain’s economy and creating almost 10 per cent of UK jobs. It also includes several variables that can influence demand, including globalization. The UK building sector is well-positioned to profit from the world economy. Building in the UK has a strong reputation for their services such as engineering or the development of new technology in design, such as Building Information Modeling (BIM). The UK exported building contracts with a trade surplus of £590 million in 2011. One of Britain’s greatest strengths is to export survey services and design. Accordingly, the contracting business is one of the major subsectors in the UK building industry. That is proved by almost 70 per cent of UK construction’s overall value-added and approximately 70 per cent in the labour market. This has been confirmed. Despite that, UK building export technology ability is mixed in all its sub-sectors. Although building goods and services play a relatively lesser position in the welfare and produce economic benefit than other products, they contributed about £4.2 billion in gross benefits in 2011. However, the UK had a shortfall of some £6.2 billion in 2012, which was not in Britain’s business results in construction-related goods. In 2012. The building was not spared the crisis of 2008. The Building industry experienced a 2.2% decrease in the GVA in the UK between 2007 and 2011. However, according to an ONS poll, everything seems to begin on the way. The latest building production product association projections show that the impact of decreases in public spending led to a decline in construction production of two, 1 per cent in 2013. The following table displays the production of statics in the building industry.

It is also necessary to remember that, in 2008, the UK construction sector experienced global market challenges, even as the UK is now one of the largest building contracting industries. Over the last five years, the building industry in the UK has undergone several dramatic shifts, including increases in the prices of raw materials, reduced resources, cuts to government costs, company failures and declining customer demand along with new accounting rules and regulatory criteria. The global building demand is forecast to grow dramatically by 4.3 per cent next year, to USD 15.030 billion by 2025 from USD 8.663 billion in 2012. Several factors will enhance international growth. Globalization supports the major competitive characteristics worldwide. Most of us are invincible in terms of globalization, as regards political, economic, social and technical forces. Because of this steady rise in demand for global transport networks, improvement in ICT and major progress in removing tariff and non-tariff barriers, companies now conceit in more geographical areas all over the world. Although a broad range of sub-sectors, including structural engineering, architecture and building, are covered by the construction industry, market tastes vary considerably between different areas of the sector… In general, greater market volatility and reduced credit requirements have diminished consumer demand for a variety of building materials since 2008. Over the past twenty years, however, general interest in property production in the UK and around the world has risen, with the market for manufacturers rising, including energy efficiency standards and high-grade finishes. Preferences between urban and rural housing and homeownership vs renting also have a significant impact on the sector’s demands.

1.3 Significance of the study

The development of community services, accommodation, schooling and infrastructure has been supported by ageing populations and changes in the overall wellbeing of the nation. The improvement in life expectancy of the entire population led to the need for and the building, renovation and reconstruction of hospitals and nursing homes. The Provision of a decent job for the elderly will help the younger generation to develop important skills, which are on the verge of losing their qualifications. That could be why the UK building industry does not participate in foreign investment. Because of the growing low CO2 regulatory requirements and a significantly higher market for greener goods, the prediction for 2017 was a 22.8% annual growth. A new study shows that about half of architects, developers, builders, construction companies and building consultants worldwide want at least 60% of their jobs to be green by 2015. By 2020, it is estimated that developing economies account for 55% of all building expenditure. Recent countries, such as China and Brazil, are expected to follow this trend and be able to see transformative performance changes in their economies for development concerning developed economies, but these countries may be more susceptible to a demand increase for large-scale bills and development in areas like utilities and infrastructure renewals.

1.4 Rationale

One of the many factors of growth in this sector is, without doubt, the rise of export activities and access to international markets. There are several other factors in this respect correlated with long-term development. The following item will discuss further the forces that drive the UK construction industry to boost competition and to promote long-term development. UK building industry’s promise lies in the expertise and agile workers, be they foreign or territorial. On the other side, the number of apprenticeships in building linked to industry in the last few years has declined dramatically. Around one-fifth of all jobs in the broader building industry are permanent and difficult to fill when companies cannot hire employees with the correct expertise, credentials and experience. Innovation would be necessary to fulfil this expectation by becoming sustainable, surviving and growing. Competitiveness may be beneficial, improving competitiveness and enabling businesses to achieve higher targets.

The research and development found that the building industry was less competitive than other industries in the UK economy. Whilst investments in architecture and organizational creativity were £7.42 billion compared to £3.15 billion in 2007, they remain poor compared with other industries. Access to capital is one of the main aspects where an enterprise operates and grows for a long time. The studies show that the difficulty of the building of the bank is because of the low fixed capital levels and smaller companies; they feel that they have a far higher chance… In addition to this late payment, building companies are not able to depend on loans to ensure that firms have a fluid cash flow. In the building sector, the supply chain plays a big role. The UK’s main source is the supply chain. A study estimated at least 90 per cent of the building remains in the UK for every £1 expended. A study by BIS also shows explicitly that the principal contractor personally manages some 70 smaller subcontracts for a major construction project. The fact that the UK construction industries still play a significant and crucial part in the health and well-being of the UK population is, considering the unforeseen problems that emerged in the recent financial and economic crisis of 2008, very predictable. It has made the UK one of Europe’s biggest building markets. The UK construction industry was well aware of the difficulties brought by the world economy but also showed its ability to seize on the significant opportunities offered by the global market in the future.

Britain is known for providing the most experienced building facilities. It is also intended to provide excellent architecture and technological advancement, such as information modelling (BIM). Accordingly, the UK is considered to have a larger proportion of building contract workers with the requisite qualifications, such as a diploma or comparable degree, which has nearly doubled in the past ten years. The industry appears to have a trade imbalance in the building sector for some technical services including the architectural and quantity surveys. The UK building industry has taken advantage of numerous resources. The UK’s building sector is internationally innovative. It would gain further from economic shifts including a low-carbon economy and green and sustainable development. There is an ongoing need, however, to guarantee expenditure in creativity and technology for the UK to realize its potential, along with this, to build and increase cooperation between companies and research institutions. The lack of qualifications and the scant knowledge of funding opportunities concerning this UK building industry must be paid special attention to. They could also strengthen the supply chain and export of building goods and services at comparatively low prices.

1.5 Research aims and objectives

The research aims to critically analyze the challenges faced by the UK construction industry and its probable opportunities.

Research Objectives

  • To analyze the current scenario of the construction industry of the UK
  • To analyze the challenges faced by the construction industry
  • To analyze the opportunities available for the industry
  • To develop a theoretical evaluation of the issues

1.6 Research questions

RQ1: What are the challenges faced by the UK construction industry?

RQ2: What are the opportunities available for the UK construction industry?

1.7 Ethical Consideration

For the UK, and indeed the planet, the building sector is extremely significant. In the United Kingdom, it accounts for over ten per cent of the nation’s GDP, hires and is valued at two, 6 million. This industry has received a surplus of £33 billion over the last three years to increase public services. Significant expenditure in transport, sanitation and housing is included in this number. As this sector is dominated by spending, it is prone to the strings of economic upturns and downturns, and there was a major downturn in the recessions in the mid-1980s and early 1990’s. In the late 1990s, though, a significant swing took place on the contrary direction. All understand that the slump has seriously affected the building industry, with some industries affected worse than others have. The deterioration of the economy and the financial crisis have been seriously impacted by private housing, offices and industry. For those working with engineering and Olympics, the condition is better, but each of both would be insufficient to support industrial production. Economic dynamics have historically contributed to a rapid decline in the flow of new development pipeline ventures. Leading forecasts indicate that the prospects for 2009 may be worse, as the UK has been formally in recession.

1.8 Conclusion

In several industries, the Government has an aggressive expenditure policy on construction. This year’s importance for building programs would in particular support education and health. The article follows on how the building sector is currently doing economically in the UK and across the globe. We discussed how the UK came to terms with its financial position and how the downturn of the world economy has affected the current economic situation. All the causes that contribute to the present recession are studied and the economic situation is most important to the present one. The analysis has shown that financial firms are to distribute funds and reinvest in building programs for the government to return the industry to its former glory. In the last 12-15 months, the UK economy, in general, has been hit enormously. The British Chambers of Commerce claimed the findings of their poll have been terrible and worse since 1989. In January 2009, the Bank of England cut the interest rate from 2.0% to just 1.5%. In December 2008, VAT was cut from 17.5% to 15% before the economy improves in 2010. In 2008, there was a major slump in the building industries in particular. Experts pointed out that in the last year over 100,000 building workers have been destroyed and 2009 is even worse. This is obvious with the UK formally labelled in January 2009 at the height of a contraction. The RICS forecasts that in the building sector 300 000 workers would be lost in the crisis.

Chapter 2: Literature Review

2.1 Introduction

The poorest area affected by unemployment would be the property market, so it is not just this part of the sector that is unemployed. Since the UK is deeply involved in the Credit Crunch, the funding of new infrastructure is essential to government and developers alike. Many building companies have stated that this credit squeeze was largely due to the decision to leave workers. Persimmon has decreased 2000 workers, 1,900 jobs for Taylor Wimpey, 1200 for Barret, 850 for Bellway and 600 for Bovisa Homes. The availability of scarce resources restricts entrepreneurs to undertake new ventures in the future. The slump has probably caused more than 2000 building companies to take over, and without the Olympics, Cross rail and health and education programs, it would be worse. The Price Waterhouse Coopers reported that it was probably still down turning. This new economic climate does not just work in the United Kingdom, as are other once-powerful economies like the United States and Japan.

One cannot forget the role of the building industry in all industries underpinning the UK economy. In 2017, the industry contributed £113 billion to the economy and consisted of 280,000 individual companies, which account for 10% of UK employees. Given the importance of building to domestic output, it is important to understand how the industry’s long-term development prospects are influenced by Bruit, whatever the shape it takes. Importantly, the uncertainty around Bruit has not dissuaded the building sector following the EU referendum in June 2016. One must look at the increasing urban core areas in places like Liverpool, Cardiff and Lupton to observe that there has been a steadily high demand for facilities and new buildings. Take large infrastructural initiatives such as HS2 and Cross rail – not only do they improve transport links between major UK cities but also raise property demand in those areas. Furthermore, infrastructure production is projected to reach a record peak of £23 trillion by 2020 and is a key catalyst for building development.

2.2 Challenges of the construction industry in the UK

The US fiscal pressures that first arose in the summer of 2007 turned into a complete financial crisis in the fall of 2008: credit markets collapsed, capital markets plunged, and the foreign financial structure was threatening with sequences of insolvencies. Massive central bank liquidity interventions and a range of government stall steps have proven insufficient to prevent the first crisis. The policy answer that was initially reluctant became steadily robust. A $700 billion bailout programme was launched by the United States Government, which took equity shares in even main banks and many major regional banks. Different assurances of loan and deposit were also added. Around the same period, the government has revealed the proposals to invest and acquire bank reserves of about $460 trillion in equity and bank loan guarantees of up to about $2 trillion. Virtually no nation, whether developed or high-income, spared the effect of the widening crisis, even if certain countries with stronger fundamentals were less impacted by the crisis. UK domestic prices have risen even faster than inflation, creating a wealth impact and enhanced consumer trust, and hence the consumption and AD… However, the reverse is seen in a drop in home prices. The UK, for example, entered a decline after house rates plummeted 15% in 1992, with a negative 2% increase.

2.3 Opportunities of the construction industry in the UK

The huge decline in financial prices caused investor sentiment to crash, which can contribute to a recession in general. A major reason for the great depression was the Wall 1929 collapse. Nevertheless, the 1987 stock market crisis did not spark an economic decline. In reality, an extraordinary economic boom was followed in Britain. Partly because of the way, the government reacted. Reduce income tax and decrease interest costs. On Monday 15 September 2008, the domino effect started when the Lehman Brothers collapsed. At 9 a.m., HBOS securities, the UK’s largest mortgage lender, plunged into early trade at 34 per cent. At midday, chaos had hit the London Exchange and almost 400 points had been dropped by the FTSE. Nobody could accept that. Nobody could believe it. The worse was that HBOS was adopted by Lloyds three days from now and that FTSE was to plunge under 4,000 within three weeks, thereby wiping out our leading corporations’ worth in billions. It used to think that the target remained about 6,000.

In addition, the US polls had been overshadowed. Some companies become insolvent due to the subprime mortgage issues in the US. It causes a huge drop in confidence in loans. This lack of loans contributed to new building schemes being limited. This has exacerbated northern rock issues and diminished customer trust. Interest rates are used as a method for inflation management. Often interest rates do not affect, but they may have a far higher decline than predicted when they are in line with other causes. Many households have a contingent mortgage in the UK, for example. For example. A minor change in interest rates can also have an important impact on disposable income. Whilst the interest rate reduction is positive for people with loans, the rapid decline in real estate rates has dramatically depreciated the valuation of any house in the UK, which will lead to a slowdown in house price development and a large drop in expenditures. In an age of globalization, the world economies are being interdependent. For example, the boom in China is slowly over, and there are concerns that it may lead to difficult times and stagnation, which could lead to a pronounced decline in global development.

2.4 Economic impact on the construction industry due to Brexit

Corruption is driven by the huge amounts of funds invested in the implementation of the schemes and by the culture of corruption anywhere, the money shifts. Corruption is illicit and creates serious difficulties. Construction corruption takes several forms from bribery to abuse of power/position to huge funds by theft or other misconduct. Corrupt methods are therefore not practised to obtain contracts. This has implications for decision-making and independent systems and increases costs. Corruption is a worldwide phenomenon in the building industry; it is not only limited to developing nations, as corruption in industrialized countries is widely shown. High-profile, leading firms have been engaged in corruption controversies through large-scale public service contracts to the corporate sector, sometimes involving a huge overload of taxpayers. Politicians are convicted that they take cash from companies incorrectly.

In recent years, there are exposed scandals like ‘cash for amendments’ and cash for favours. Contracts and discounts in the public sector are in the UK the single biggest cause of corruption and the bulk of instances of corruption in the UK are related to contract awards. There is systematic usage of illicit commissions for contracts. In a Transparency International survey, the construction industry was defined as the most bribery-prone market sector – even before the weapons, defence, and oil and gas industries. Sourcing supplies may also be a problem for post-Brexit building firms. Indeed, more than 10 billion pounds are annually transported from the EU from building materials. According to Build UK, this accounts for about 15% of all items in UK building. With the steady decrease in the Pound Sterling value, the expense of these imports is expected to increase. In addition, it may result in a rise in operation and development costs for the developer by sacrificing tariff less entry to the Single Market and thereby experiencing import duties and restrictions.

2.5 Evaluation of Brexit on construction organization supply and trade with other countries

The Office of Fair Trading’s latest investigations into ‘contract fixing’ and ‘cover price’ is a very serious scandal for the UK building sector lately. The main intelligence outlet. One of the main inquiries in the history of the building sector in April 2004 was initiated by the Fair Trading Office. The cartel behaviour investigation claimed to inflate falsely the costs of public and private contracts of £3 billion. 112 firms have been convicted of pricing years. It accused the market, in contravention of the Concurrency Act 1998, of ‘bid fixing’ and ‘cover pricing.’ The contracts examining covered many ventures in the public sector including the construction of colleges, clinics, colleges and social housing. This check also included misrepresentation of invoices. The OFT announced that it observed cover pricing in thousands of bidding processes in the construction sector affecting far more than those named during its inquiry. During the investigation, scores of prosecutors and attorneys and companies searched their premises. It was private industry recognition that, for some time before the OFT interrupted, the pattern of bid manipulation and price-setting was common. The names included big firms including Carillion, Balfour Beatty and the Kier Group, but a lot still included tiny family-owned companies.

The OFT can punish businesses for violations of antitrust laws up to 10% of their global turns, though some corporations pleaded responsibility to limit penalties to 1% or 2% of sales. The Information Commissioner’s Office was also a major repository of information and issued enforced notices on 14 building companies who charged unauthorized information on prospective workers. They also revealed significant infringements of the Data Protection Act and served the information commission. Companies like Balfour Beatty and Laing O’Rourke have charged an average charge of £ 3,000 to access classified workers’ records and over 40 buildings companies have been accused of being against the rules by paying blacklist staff confidential details. In order to vet prospective new hires, the illicit list will be used by construction companies. The details included personal relationship records, union membership and the background of jobs. The ICO said businesses paid a £3,000 recurring charge for the service to a company named the Consulting Association. Ian Kerr, who met the prosecutor’s office for violating the Data Protection Act, was a Consultative Association.

2.6 Evaluate effects of Brexit on the construction labour market in the UK

In a 2004 internal audit of construction schemes commissioned by the Nottingham University Hospital NHS Trust, an OFT study was carried out which had a serious effect on the building industry. This was the greatest inquiry ever made by OFT into cartels and prices. The OFT based its inquiry on about 240 suspected violations, while it revealed that a significant number of more firms are taking care of cover pricing. The cover prices of over 4000 tenders covering more than 1000 firms were seen. Proof. The consequences of the controversy culminated in 1003 enterprises, including several very high profile enterprises, becoming included in the OFT inquiry into bid-rigging. This was a scandal since all of these programs including schools and hospitals were for the public sector. The fact that these enterprises were several major players in the building business – Carillion, Balfour Beatty, Kier Group, Interserve and several others – became much more scandalous. Under certain circumstances, the successful bidder paid for the others who were offering high offers of many 000 pounds (kickbacks). During the inquiry, businesses under the Competition Act were visited and several companies acknowledged that they were violating the law and helped investigate the matter under the expectation that they might decrease their penalties. The firms embroiled in the fraud received a sum of around £129.5 million in fines… At £ 17.9 million, the Kier Group was fined the most.

2.7 Overview of the economic implication of Brexit on the construction industry

Smaller than before after a conversation with a local construction business proprietor, who wished to be anonymous, it became evident that even on a small scale the cover prices were normal. He acknowledged he had received quotations from fellow workers that allowed him to make sure the lowest quotation was sent, normally for insurance quotes or small jobs for local authorities. However, in his defence of insurance cases, he explained that both of these things were undertaken on behalf of the customer, who wished to guarantee that they secured the services of the contractor they knew and trusted by attempting to obtain the lowest quote from the chosen contractor. It was also mentioned that this deck-pricing act was viewed in difficult times as a method of survival and of holding business running. It is not about big businesses that deal with collusion. Due to scarce finances, small businesses and self-employed people are more disadvantaged in tenders. A tender is the building industry process from which customers select the main contractor. It is a problem to create companies that quote free. To deliver a correct quote requires a lot of time and effort. The company’s loss has to be absorbed in the tendering costs of contracts not won. More analysis to be done to offset these losses on any dollar lost through the failed offers otherwise the value is lost from the lost tenders. Rigging bids were seen as a rewarding process. Each project is individual and businesses are not guaranteed to gain any jobs via the tendering phase. Perhaps contracting and/or tendering policy needs to be revised, as the final costs of the construction, which depend on some difference in delays, weather, etc., do not matter in the tendering price. The bidding fiasco and the resulting media attention have certainly changed the thinking of customers. Companies should be more mindful that there has been easier mistrust and whistleblowing, which may serve as a deterring measure. Measures should be encouraged to fight the potential need for bid-rigging, but no one is likely as enticing as financial benefit.

2.8 Effect of urbanization on the construction industry of UK

Following the gradual increase in the use of modern techniques, which make the construction process cost-effective. The policy reforms that led to an additional reliance on inexpensive quality builds and other systems contributed to the reliability of the building method beyond the building site. As the number of competent employees decreased, the future generation found this sector not worthy. The private housebuilders began searching for steps to improve the integration of pre-production industries into the constructiveness business. Because of its secure distribution promise, the offsite building approach has proved peculiar. If we understand, the arrival period is negatively influenced by on-site building practices owing to the weather, the site and its access requirements. However, all these challenges are well managed when it comes to off-site building practices since the main operation takes place within the plant. This gives the retailer a broad range of opportunities to maximize delivery. The strongest evidence to demonstrate this can be found in the Portakabin Group numbers, which achieved a good delivery of almost 100 per cent over a long 12-year stretch. In the same timeframe, the average for the sector was 40 per cent and 30.7 per cent for timely delivery. For its time quality, the off-site building process is highly regarded. Unlike in-site building practices, the work is carried out simultaneously when we select an off-site construction process, although it can only be performed sequentially on site.

For starters, the construction of off-site buildings in the factory would be started around the same time as the foundations are started on site. This has a very optimistic impact overall project’s implementation time. Many of the developments that have been undertaken by outside building strategies state that the job was completed long before the planned completion date. Cost is still the most critical attribute that customers search for when consistency is assured. It is also one of the most significant features in the off-site building. The design strategy on site is very expensive relative to conventional building techniques on site. That is because of the absence of the possibility of some expense blown-out considerations like temperature or impacts on off-site building methods. With greater safety at the expense, lower on-site labour demands help building practices beyond the site to do so. Another explanation why the life cycle expense of offshore building procedures is lower than conventional onshore construction practices is because of the slim prospects or possibility for remedial operation. The amount of waste created by a conventional construction process in material terms is considered 10-20%. This is essential since they account for 3-5 per cent of the building expense as a matter of money. Resources analysis carried out by the WRAP showed that the off-site building strategy eliminates pollution from on-site to up to 90 per cent. Due to the move from site to works, the pollution in production and on-site is minimized.

2.9 Sustainability effect on the construction industry of UK

A brief review of new building schemes in the UK reveals that urban planning is not lacking in reality. This is particularly important in the case of new buildings. The Government intends to bring 300,000 homes to the sector by the mid-2020s, to fix the perceived gap between the supply and the demand. New housing projects in popular metropolitan cities are therefore emerging. Liverpool, for instance, has quickly become an enticing destination for employees who want to benefit from inexpensive housing opportunities and new amenities throughout the area. As part of the Northern Powerhouse plan, the investment in the city culminated in further leading companies establishing new offices in the northern portion. Liverpool is now home to the second-largest digital start-up cluster in Britain, promoting businesses to travel across the capital. Responding to the prosperous Liverpool markets, residential and industrial property growth has significantly increased, with state-of-the-art architecture and installations. The Liverpool City Council is now spending £250 million on improved facilities, whilst the construction pipeline for modern office spaces, student housing, and residential buildings already totals £14 billion in major development. The construction sector must have access to the workplace and the expertise required to maintain the speed of the country’s infrastructure needs.

The availability of labour, which is compounded by Bruit, is already one of the main problems confronting the sector. As it stands, approximately 7% of construction staff are EU27 citizens, although this figure is the two over a quarter in London (28 per cent). Because of Brigit’s uncertainties, the position of certain employees has been shadowed, which has been more worrying, as the way Bruit is handled is still not agreed upon. The UK administration must also ensure that detailed – and open – rules are in effect to explain and support workers’ privileges employing any required authorization to live. More money must now be allocated to supporting specialized occupations such as carpentry and plumbing, to guarantee that certain useful talents are not wasted. The provision of high-demand training programs to address the long-term requirements of the UK building sector, thus recruiting the next wave of prospective jobs. For example, it is worthwhile to work with local authorities to build apprentice courses for individuals who want practical skills and instruction.

2.10 Conclusion

One of the most evident steps is routine and adequate instruction that can be used at the local and national level so that the knowledge about what kinds of behaviour are unlawful is increased. It may also be used to affirm the spiritual duty to do right. Again, it is extremely doubtful that the self-employed small contractor will bear the extra time or expense for formation. Small companies could not be able to circumvent tendering. If companies are capable of employing experts to prepare offers and tenders the probability of bidding rigging decreases, which they face losing their professional status if unethical activities are discovered to be carried out. The practice of reducing uncertainties, including the usage of non-collusion provisions, and the cautious design of procurement procedures, may be implemented. A code of conduct was developed by the National Builders Federation (NFB) and by the UK contractor group in 2009. This underlined the need to develop internal protocols for building firms to deter ant competitiveness. If this code would have an enduring impact on contractual procedures remains to be seen.

Codes must be implemented in conjunction with ongoing preparation and assessment and must be integrated into the community of the organization. However, if the United Kingdom has effectively renegotiated trading agreements in replicating existing contracts, the supply of goods is likely to proceed at an equal expense. With volatility in mind, the role of UK building as a driver of competitiveness and economic development must be remembered. Since the vote in June 2016, we have witnessed unparalleled levels of new construction projects across the region, driven by strong public and private sector investment. The construction industry has an important role to play in tackling UK needs, as there is a growing demand for housing, particularly in regional hotspots such as Liverpool. This is why during Brexit the business must be funded so that it can achieve the maximum production capacity.

Chapter 5: Conclusion

2.1 Introduction

The amendments aim to speed up the planning application phase and streamline it so that companies and home accommodation will grow without the need to move. It aims to minimize the need to develop greenbelt lands in the vicinity of towns and villages while maintaining strong and productive economic communities, helping to maintain employment and maintain local employees, interprets and communities. Before reconstruction, complete zoning applications shall no longer have to demolish abandoned buildings; they can now be converted into residential, industrial, or market issues with fewer paperwork such that fresh revenues are rapidly transferred to the centre of the cities. Homeowners may now add up to two floors to their current homes to help transition the shifting face of family life- this would be very useful for expanding families and can also sustain our older demographic and make it more recognizable. The update of the permit preparation framework was long overdue; the manufacture of buildings has for years spoken of the bureaucracy that has provided a time stick and funding for building projects. Westminster has invested heavily in the modern scheme and has been invested £12 billion in the Government’s affordable home plan, including 180,000 houses to help. That financial involvement in the building industry would certainly help to ensure the safety of the industry, construction workers, and related facilities and supplies across the whole of the Brexit time and beyond. In future planning and building stability, access to goods and services after Brexit is an essential component.

2.2 Construction industry in the UK economy

The UK building industry currently depends heavily on foreign workers from other EU countries and a decline in labour free mobility after Brexit in certain places would contribute to a lack of expertise. A new Strategic Plan for 2031-2025 was presented by the Construction Industry Training Board (the government backed by the Department of Education). This focuses on how the Department invests in training support for the construction industry to improve the resources and results for the trainees and current employees. Although this will not resolve challenges in the near term, it gives optimism that a qualified and creative employee can be created after Brexit for a long time. The European pension fund is the source of a significant part of investments in large-scale infrastructure building projects; this finance would stop as we leave the EU. It is currently unclear whether UK tax savings are to be sufficiently reduced by a shortfall of €7,8bn in EU membership dues, a scholarly idea does not say. There is no question that because we departed from the EU the building sector will struggle. However, the potential progress in building in the UK has promises of a brighter future with a forward-looking optimistic stance, dedication to procurement in British business-focused suppliers and facilities, the assurance of government investment and an overhaul of the planning legislation to reduce certain burdens.

2.3 UK construction in the global economy

In reality, the construction industry itself is a varied type of industry, including the mining, construction material, forestry, manufacture of construction products and materials, repair and disposal, facilities construction and buildings construction. The output in the UK is over £110 billion a year and contributes 7% of GDP (Government Construction Strategy). Approx. 3/4 of construction is produced by private industry and a quarter is produced by the government. Andy Hill, CEO of Homes’ Hill, claimed that Brexit would provide crucial results broadly for the real estate market and economy. It has well recognized that we need to create more houses faster, with over one million in demand by 2020. Developers are expected to step away from constructing further houses without investing in the UK on the current stage, and the significantly decreasing market would be extremely challenging to satisfy. While Jacqueline O’Donovan, managing director of O’Donovan Waste Disposal, the building sector would experience great confusion if Britain exits the EU, “We are attempting to understand what the decision entails for our industry.” If we exit the world’s largest trading union, investments would affect. It would be a knock-on discouraging impact by companies investing in security technologies for their floors, and by preparing drivers essential for the sector.

Covid-19 also strongly influences the supply of raw materials, building and work materials; this is the main driving factor for the crisis that the UK currently faces. Details of UK industry with the EU and world markets continue to surface, the only approach to expand the building sector in these difficult times is to spend as heavily as possible on our shores. Using the expertise and goods that either exist or are made within the United Kingdom, we will boost the British economy while changing the livelihoods of all the industries and services within the supply chain and contributing to the building industry on a grassroots basis. There is fear that the building industry is having difficulty seizing control because Kaplan Pithier is anxious about the vote. With the inflated prices of inputs and the margin being smaller, settlement contracts and world economic growth have only declined three times over the previous six months, and begin to fall. Production costs have fallen three times. Matt Ainscough, CEO of national engineering firm Ainscough Industrial Services, Wigan, said it would be too much for the UK to abandon the EU (AIS).

2.4 Drivers of long-term growth of UK construction industry

The effects of Brexit will appear to be the withdrawal and most devastating EU funds, Wilson notes. “The closure of the path of entry to these financing sources for UK innovation will have very detrimental consequences.” Indeed, Britain is one of the EU’s largest Net Recipients of Funds. Leaving the EU community means immediately excluding itself from this incoming investment. Uncertainty concerning the world environment, fiscal and financial access may be removed from the safety layer of the British building industry. This lack of willingness to take chances in an uncertain financial landscape could theoretically contribute to the conservatism of building officials. The building industry’s productivity fell by 0.2 per cent in January 2016 relative to December 2015. Both new works have been raised by 0.8 per cent, although all repairs and maintenance have been increased by 0.8 per cent. In all new jobs and infrastructure, compared to private-commercial gains (4.7%), declines were observed for public new housing (-10.6%), new jobs (1.6%), private-sector industrial (0.7%) and private-sector housing (0.6 per cent). Housing repair and maintenance rose by 3.0%, while non-housing repair and maintenance fell by 1.5%.

2.5 Supply chain development of UK construction industry

The announcement of the decision to suspend the Production and New Ordinances was the product of the national statistics regarding the Official Statistics Code. The Department of Business Innovation and Skills (BIS) will be responsible for publishing the Construction Price and Cost Indices on 1 April 2015. The number of people living in metropolitan areas in 1900 was just 13%. However, more than half the population of the world now resides in towns. These heavily populated regions could be more supportive than spread over agricultural settlements, as the non-renewable resource used accounts for more than 75%, creating almost three-quarters of the world’s population. By the second half of the century, more than 70 per cent would reside in towns, as the global population is growing from 7 to around 9.5 billion. In order to satisfy these relentless growths, the architecture and building requirements can become even smarter while at the same time reducing total consumption.

Both new works, repairs and production were reduced in both the building industry by 0,4 per cent and 1.4 per cent in comparison to January 2015, respectively by 0,8 per cent. New orders for the building industry were reported to have declined by 0.5% in Q4 (Oct-Dec) 2015 relative to Q3 (July-September) and by 1.4% compared to Quart 4 (Oct-Dec) 2014. The second estimation in the Gross Domestic Product was released in Quarter 4 (Oct-Dec)2015 on 25 February 2016, which indicated a 0.4 per cent decline in production (GDP). This report has updated the forecast upward by 0.7% to an expansion of 0.3%. This does not affect GDP up to 1 decimal position. The sum paid by construction firms to clients for the value of work (produced in the reporting period) and payments to contractors other than VAT, is specified as the value of work. Building output within Britain is assessed by the private sector and public companies as a short-term measure of construction production. Due to its quality issues, the United Kingdom Statistics Authority has agreed on December 11, 2014, to declare a suspension of the classification of building costs and prices.

2.6 Changing global demand of UK construction industry

The production of buildings is not well expected as it was at the design level, and this proves to be important facts. The output differential is defined also as the difference in the expected performance from the real. It is seen that real energy usage in buildings is normally twice as high as expected PROBE tests are also (Post Occupancy Review of Buildings and their Engendering). It is concluded that the energy demand in usage maybe 5 times greater than the conformity calculation, as the Carbon Trust Low Carbon Building Accelerator and Low Carbon Buildings Programmer have recently found. The free flow of labour between the UK and other EU countries represents a vital advantage for the building sector because of the large number of non-UK citizens of qualified and unskilled distinction. The accounts for 3 million workers in the UK and a large majority of those in the construction sector belong to the other EU Member States, representing 10 per cent of the overall UK workforce. If the UK is ready to exit the EU, clarified Manchester, qualified building labs which have previously planned to enter the other country for labour will find it easier to obtain jobs from France, Germany or Spain.’ Paul Payne, Head of Building and Rail Recruiting, asks: “Why must jobs fight stringent emigrant legislation in Britain?.” In an area such as buildings where technological technologies and green policies affect the working methods and the opportunity to acquire knowledge from around the continent of the EU and construction workers, new perspective and expertise could be lost.

2.7 Growing demand for green and sustainable construction

Concerning the EU, keeping ahead of the curve is extremely helpful,” he said. The increase in labour costs is an alarming notion for small contractors and businessmen. Monika Slowikowska, the creator of the creation of Golden Houses, describes that the existing costs of building expenditure have risen over the past 6 months by an average of 8 per cent, and are expected to grow. UK practitioners may be permitted to perform a larger range of jobs in the construction sector without competing building staff travelling from the continent. Some supporters of the EU movement, however, said that separating from the EU could help UK staff. The EU will simplify importation processes for goods such as free mobility from other Member States of labour, instruments and material. Increased procurement costs may result in materials and services is limited. The cost of specialist building facilities will be increased afterwards. Any homeowner/company/organization who seeks certain facilities will influence the effect of this move on those that operate inside the building company. The 27 Member States find it more challenging to invest in and do business since the UK is not an EU member. It could take many years for resettlements to reach a new agreement with the 27 countries either group or separately once out.

2.8 Strategies for development of UK construction industry

The UK imports some construction supplies, from Germany, China, Italy and Sweden, the four major import markets, Since most domestic products are used in the UK building industry. The business is concerned about the ongoing freedom of movement of products, and there are three of them in the EU. This, though, relies mostly on how the interaction between the UK and the EU would take place, although there has been some evidence that the laws of the World Trade Organization, which may escalate the costs which may force them to comply. The Construction Materials Regulation 2011 sets harmonised export regulations for the sale of building goods in the EU. The UK will also have to comply with the EU-export Regulation, Although the UK-export Regulation will no longer have to adhere following Brexit. In the end, it will be a must for Great Britain to meet with rules with which the UK has little negotiating leverage. Some voices would say in the case of a Brexit that the United Kingdom would be free to share more with the globe. Although, as part of the EU, the United Kingdom could establish unilateral trade arrangements to substitute the multilateral trade agreements. Some countries have severe trade barriers, especially in the USA, and there are only countries with which they can export agreements.

2.9 Recommendation for development of UK construction industry

The United Kingdom would deal with these countries now, since the EU is holding such agreements, fresh deals will have to be signed in the case of Brexit negotiation. Goods, Services, Investment, Limited commitments, Immigration – No obligations as laid down in the General Trade in Services Agreement (GATS) Britain will be subject to the tariffs of EU Most Favored Nation (MFN), and vice versa. Brexit would have an effect on vulnerable sectors including passenger cars Car production in the UK exports between 1,2 and 1,6 metres of vehicles. The knock-on impact of departure may be drastic as services could theoretically rise and new jobs are slowed down. The building sector will not only be impacted but all those that rely on the facilities they provide would be significantly affected. The influence could be immediate and significant for major companies from first-time property purchasers. The EU might not be ideal, though, but a considerable vote to quit the EU may lead to a significant amount of disruption, which may take years to resolve. The UK will be the first-ever nation to exit the EU, but it has no blueprint to support it and just optimism and nostalgia are not enough.

2.10 Conclusion

Britain is well placed to profit from global building industry prospects. This is due to the UK’s reputation for design departments, such as engineering and the advancement of new construction technology, such as building information modelling (BIM). In contrast with amber of G7 and BRIC nations, the UK is still comparatively larger in construction-related patents. However, the image of building exports is diverse through its subsectors notwithstanding UK technical capabilities. UK building contracts exports have gradually increased to offer a trade surplus of approximately £590 million in 2011. Britain is still high in architectural exports and quantity surveys, with a trade surplus of about £530 million in 2011. On one side, the UK is less optimistic in terms of economic results in building-related goods, with a trade gap in 2012 of about £6.2 billion. Evidence suggests that compared with other industries a comparatively limited number of UK building contractors are exporters. In 2012, approximately 6% of the building contracting SMEs exported. Any two-thirds of those SME contractors who are non-exporters claimed that they have no export-oriented product or service. One quarter said that export is not part of their business strategy. Building companies may not be completely informed of possible export benefits and lack the expertise or managerial skills needed for the effective exploitation of foreign markets. The UK building firms appear to be less large and work less collaboratively than certain European nations, which may render it more challenging to enter international markets.


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