Construction Industry Update – May 2021

Homes England shifts to a dynamic framework

Firms have been invited to tender for the new Delivery Partner Dynamic Purchasing System (DPS), which shifts from the agency’s Delivery Partner Panel system.

This new approach will open Homes England sites up more widely to the whole market and be more flexible to accommodate market changes.

The initial application phase will run from 25th May to 25h June with the new partners being announced on 1st September 2021.

Applications will re-open on an ongoing basis enabling new market entrants to join at any time.


Building quickly to avoid material problems warns Arcadis

Construction companies have been warned to start building now to avoid rapidly increasing material costs, Arcadis has said.

Prices are likely to rise over time, which could make inflation a “defining feature of the market over the next three years”. Arcadis warned that activity could be constrained with suppliers struggling to meet rising demand as new projects start and paused construction projects re-start.

It has been forecasted that tender prices in the infrastructure sector will rise around 3% in 2021 and 5% in 2022.

Timber and steel are among the materials that are currently in the shortest supply, with cement, aggregate, and plastic also facing supply and delivery constraints.


Environment Agency launches new flood and coastal action plan

The environment agency has announced it will partner with other organisations to tackle the rising threat of flooding and coastal erosion in the coming decades.

The Flood Coastal Erosion Risk Management Strategy (FCERM) has been updated to account for a new climate modeling and flood risks in the country.

The new action plan has three long-term ambitions: to bolster resilience to flooding and coastal change, ensure that future infrastructure is climate-resilient, and educate local people on the risks of flooding and coastal changes.

The EA has been tasked with delivering £5.2 billion of government investment in flood and coastal defences between 2021 and 2027.


Construction workloads return to pre-pandemic levels

Construction output has returned to the pre-pandemic level in March, according to the Office for National Statistics.

Data shows that £14.25 billion worth of work was done in March. This was the highest level recorded since September 2019 and far above £13.92 billion in February 2020, the month the pandemic severely affected the UK.

New Orders also rose just 12% in the first quarter of the year to £11.31 million compared to £10.08 billion in the first quarter of 2020.


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Article 1 – Homes England shifts to dynamic framework | Construction Enquirer News

Article 2 – Build quickly to avoid materials problems, Arcadis warns clients | Construction News

Article 3 – Environment Agency launches new flood and coastal action plan | Construction News

Article 4 – Construction workloads return to pre-pandemic levels | Construction News

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