construction – Page 2 – The NEN

Glenigan review shows major projects are propping up UK construction

Today Glenigan, one of the construction industry’s leading insight and intelligence experts, releases the November 2022 edition on its Construction Review.

The Review focuses on the three months to the end of October 2022, covering all major (>£100M) and underlying (<£100M) projects, with all underlying figures seasonally adjusted.

It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data.

The key takeaway of the November Review is a softening in the downward trajectory of project-starts registered throughout the second half of 2022. However, this brief period of respite should be approached with caution as geopolitical turmoil persists in Eastern Europe, material and energy costs soar, and the UK enters a recession.

Whilst the sector overall experienced relative stability in the three months to October, with project start levels remaining largely unchanged, figures were still down 4% against the previous year.

Underlying Issues

Major project starts performed well, helping to maintain sector-wide stability, rising an impressive 28% on the preceding three months to stand 19% up on a year ago.

The same could not be said for underlying project starts, which plummeted 17% against the previous three months and were 13% down on 2021 levels.

Overall main contract awards slipped back 7% against the preceding three months, 5% lower than a year ago. Although major projects performed well, growing almost a quarter (24%) on 2021 levels and up by a fifth on the three months to October, underlying projects declined by 13% against last year and 15% compared to the previous three months.

Despite the November Review’s generally sluggish outlook, there are indications of gradual recovery, with a pipeline of work starting to flow following almost six months of blockage. Refreshingly, detailed planning approvals were up 29% against the preceding three months and a nifty 22% higher than 2021 levels.

Major projects rose a stunning 99% compared to the previous three months and an even more monumental 126% up on last year’s figures. Underlying approvals dipped a modest 2% on 2021 but, encouragingly, increased 8% on the preceding three months.

Commenting on the results, Glenigan’s Economic Director, Allan Wilen, says, “UK construction continues to be buffeted by myriad external headwinds, many of which are entirely out of the industry’s control. However, it was encouraging to see a significant uplift in major projects over the period covered by the Review.

“Of course, the release of the November Review comes in the wake of The Chancellor’s sober Autumn Statement, which will no doubt have an effect on future iterations of this report. Significantly, as part of his drive for growth, Hunt outlined the largest public works package for 40 years and substantial funding for critical infrastructure, which will no doubt provide the shot in the arm many contractors have been looking for. Furthermore, the commitment to reduce built environment emissions by 15% by 2030 will provide plenty of opportunities for retrofit specialists.

“No doubt many housebuilders and developers will feel let down, particularly as the one significant point around the ending of Stamp Duty relief will no doubt disincentivise potential buyers in the second half of 2023.”

The Sector specific and regional Index, which measures underlying project performance, was characterised by a bottoming out of project-start levels. However, recent events have dented market confidence, meaning levels remain relatively depressed.

Sector Analysis – Residential

The value of residential work starting on site fell 21% against the preceding three month period to stand 10% lower than a year ago.

Drilling down into the figures, social housing project starts fell a substantial 26% on 2021 levels, yet fared less poorly against the previous three months to the end of October, only dipping 7%. This was a relatively good performance compared to other verticals.

In contrast, private housing dropped 24% compared to the preceding 3 months but only 6% against 2021 levels.

Sector Analysis – Non Residential

Bright spots were few and far between, however, office project starts experienced a good period, rising 11% against the preceding three month period to remain unchanged on a year ago. Industrial starts also experienced modest growth during the Review period, but remained 15% behind 2021 figures.

Hotel and leisure experienced the sharpest decline of any vertical (-38%) against the previous year, also slipping back 19% against the preceding three months.

Education (-24%) and health (-41%) fared little better in the three months to the end of October, respectively crashing 28% and 31% compared to 2021.

Utilities construction starts were the only ones to experience growth on last year (+14%), despite tumbling 15% against the previous three months. Looking at the wider civils landscape, work starting on site slipped back 13% against the previous three months to remain largely unchanged on a year ago.

Regional Performance

Regional performance was generally weak.

Once again, Northern Ireland posted the most positive results, increasing 16% against the preceding three months, to stand an impressive 35% higher than a year ago.

Scotland also had reasons to be cheerful, with starts 10% up on 2021 and 19% up on the preceding three months.

Whilst project starts in Wales advanced on a year ago (+25%), they slipped back 5% on the preceding three months. The North West performed relatively well compared with other regions and, whilst project-starts remained unchanged on the previous three months, they dipped 2% against the previous year.

All other regions experience a decline against the preceding three months and previous year.

To find out more about Glenigan click here.

Glenigan Construction Index: Project start decline bottoms out

Underlying project-starts remain depressed, 17% down on the preceding three months, 13% lower than in 2021.
Residential (-21%), non-residential, (-13%) and civils (-13%) all fall against the preceding three months.
Northern Ireland (+16%) and Scotland (+19%) post strong results during November Index period

Glenigan, one of the construction sector’s leading insight experts releases the November 2022 edition of its Construction Index.

The Index focuses on the three months to the end of October 2022, covering all underlying projects with a total value of £100m or less (unless otherwise indicated), with all figures seasonally adjusted.

The key takeaway from November’s Index is the gradual levelling out of project-start decline, which has characterised the Index since May 2022.

However, whilst performance has stabilised, overall underlying project-starts remain at a low ebb, 17% lower than the previous three months to October, and 13% down on the same period last year.

According to Glenigan’s Senior Economist, Rhys Gadsby, “It’s encouraging to see a fall in project starts has slowed during the period covered by this Index, however, optimism should be cautious.

“Our recent Forecast, released last week, indicated some gale-force headwinds going into 2023, so we shouldn’t expect this performance plateau to be the harbinger of full recovery, at least in the short term.

“Geopolitical disruption, an uncertain domestic economy and a government finding its feet have dented market confidence. Despite the much-needed market assurance expected from the Chancellor’s Statement on 17^th November 2022, it’s unlikely it will provide an immediate boost in activity.”

Sector Analysis – Residential

Decline was consistent across the board, with project-starts falling 21% against the preceding three months to stand 10% lower than 2021 levels.

Despite social housing faring slightly better compared to other verticals covered in the Index (-7% against the previous three months), the value still dipped 26% against last year.

In contrast, private housing-starts tumbled 24% on the previous three months whilst only falling 6% compared to 2021.

Sector Analysis – Non-Residential

The downward trend continues in the non-residential verticals. However, office project-starts were an exception, remaining largely unchanged on a year ago and were up an impressive 11% on the three months preceding October. Whilst industrial starts were up 4% on the previous three months, they slipped 15% behind 2021 levels.

Hotel and leisure starts fell 19% against the preceding three months, experiencing a massive 38% decline against last year. Education (-24%) and health (-41%) work starting on site also declined against the previous three months, respectively standing 28% and 31% lower than a year ago.

Civils project starts slipped back 13% against the previous three months but remained stable compared to 2021 figures.

Regional Analysis

Similar to other Glenigan Indexes published in 2022, Northern Ireland project-starts saw another performance uptick, rising 16% on the previous three months and up by a massive 35% on a year ago.

Scotland also experienced a strong period, with on-site starts up 19% on the last three months and 10% higher than 2021.

Project-start performance was less consistent in other regions. Whilst Wales witnessed a 25% boost against the preceding year, figures were 5% down on the previous three months. The North West remained largely unchanged on the last three months and a modest 2% down on 2021.

All other regions registered decline during the November Index period, and compared to last year. Project-starts in London and Yorkshire & The Humber both experienced steep falls (-35%) against 2021 levels.

For more information about the Glenigan Index and its other publications and services click here.

Construction: Gloomy outlook offset by modest pipeline recovery

Overall project starts decline 9% on previous quarter
Major project contract awards and planning approvals up on 2021 figures by 59% and 158% respectively
Civils project starts modestly increase due to a spurt of utilities-related activity

Glenigan, one of the construction industry’s leading insight and intelligence experts, releases the October 2022 edition of its Construction Review.

This Review focuses on the three months to the end of September 2022, covering all major (>£100m) and underlying (<£100m) projects, with all underlying figures seasonally adjusted.

It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data.

The central finding of the October Review reflects recent, previous iterations, with high materials and energy costs, economic and political chaos and ratcheting building regulations keeping the market depressed for the foreseeable future.

However, whilst project starts dipped once more (-9% against the preceding three months), a modest rise in main contract awards (+3%) and detailed planning approvals (+3%) hint that recovery, although not immediate, is on the horizon.

Glimmers of Hope

The slight growth in the project pipeline can largely be attributed to a jump in major project contract awards, which were up 27% against the preceding three months, 59% higher than a year ago. Equally, major project planning approvals were up an impressive 58% by the end of Q.3, to stand a staggering 158% up on 2021 figures.

However, underlying performance was comparatively week, tempering results, dipping 8% compared the previous three months in contract award terms, 6% down on last year. Despite planning approvals increasing 8% over the past quarter, they remained 10% lower than a year ago.

Once again, major projects saw a respectable rise in work starting on site, climbing by a third in comparison to the preceding three months, however this figure remained 14% lower than the same period in 2021.

Underlying project-start performance was dismal, posting a 27% decline against the preceding three months, 23% down on last year.

Commenting on the results, Glenigan Economics Director, Allan Wilen, says, “The sector has faced considerable amounts of turbulence over the past twelve months. A new Prime Minister, changing of the ministerial guard and wildly fluctuating markets have done nothing to inspire consumer and investor confidence.

“At the time of this Review’s release, we find ourselves in a state of flux, with yet another new premier, however, the pound rallying once again and the promise of economic stability from the autumn financial statement should go some way to calming the choppy waters.

“With activity trickling back into the pipeline, everyone in the sector hopes the flow of awards and approvals picks up once again, even if project starts currently remain stagnant.”

The sector-specific and regional index, which specifically measures underlying project performance, was characterised by overall decline. However, a few bright spots could be seen within an otherwise gloomy picture.

Sector Analysis – Residential

Overall, residential work starting on site fell by a third during Q.3, to sit 24% lower than a year ago.

Private housing performed particularly poorly, plummeting 37%, 20% lower than in 2021. Social housing also fell by 13% and 36% against the same set of criteria.

Sector Analysis – Non-Residential

Sharp decline was the consistent theme across most verticals during Q.3, education and health weakened 37% and 39% respectively against the preceding three months. Both were also down on 2021.

Office project starts fell dramatically, 30% against the preceding quarter and 37% compared to the previous year.

Industrial (-13%) and retail (-14%) experienced relatively small declines against the preceding quarter, but dropped 16% and 27% respectively against last year’s performance scores. Hotel and leisure was 13% up on the preceding three months but down 28% on 2021 levels.

Civils provided a welcome lift in an otherwise disappointing period, increasing 1% on the preceding quarter and over 10% on last year. Particularly, growth can be attributed to a spurt in utilities work starting on site, as well as a relatively steady stream of infrastructure project-starts.

Regional Performance

Once again, Northern Ireland performed well with project-starts increasing 31% against the preceding quarter, standing 51% up on a year ago. Wales also delivered positive results, remaining unchanged on the previous three months, rising 7% on 2021.

Unfortunately, the outlook was decidedly bleaker across the rest of the UK. The North East (-38%), East of England (-36%) and London (-30%) and Scotland (-26%), all slide back on the preceding quarter. London, which has seen a steady decline in activity over 2022, also posted the largest decline against last year, diving 45%.

Wilen concludes, “Sector verticals and the UK regions are feeling the economic pinch and, whilst a few major projects are bolstering results, the underlying figures indicate there’s a massive mountain to climb to stabilise the sector.

“The new Government needs to get a grip of the situation from day one and offer a clear strategy to support UK construction, which currently lacks the rigorous policy from key departments to recover and progress.”

To find out more about Glenigan click here.

Work set to commence on next phase of homes at Blindwells

The latest housebuilder to acquire development land after securing planning permission for new homes at Blindwells will start on site this month, with the first properties expected to be available Spring 2023.

Stirling-based housebuilder Ogilvie Homes, part of the Ogilvie Group, will deliver 77 homes, including 23 affordable properties, at the New Town located to the east of Prestonpans in East Lothian.

In September, East Lothian Council granted planning permission for the £17m scheme which is to be developed on a 4.5-acre plot at the north-west of the Blindwells site.

Ogilvie’s development will comprise of a mix of two, three and four bedroomed residential properties available for private sale, as well as a range of two and three bedroomed homes for social rent.

Bruce Lindsay, development director at Hargreaves Land, said Ogilvie’s development marks the next ‘exciting’ phase of the site’s overall long-term regeneration. “This is excellent news and a welcome addition for local housing stock, particularly the availability of more affordable accommodation.

“Ogilvie are committed to creating a development that will meet community needs and deliver exceptional high-quality homes for East Lothian. This exciting phase in the Blindwells regeneration story marks another chapter of positive change to this part of Scotland.”

The project will see the construction of detached, semi-detached and terraced 2-storey properties. Ogilvie will also construct four two-bedroom cottage flats as part of the affordable element of the scheme.

Ogilvie will join Bellway, Persimmon and Cruden Homes on site at Blindwells which has planning consent for 1,600 new homes and proposals which include education facilities, a healthcare hub, and local retail outlets.

Julie Leece, head of land at Ogilvie Homes, said: “We’re delighted that planning permission was granted last month and look forward to bringing our plans for Blindwells to fruition.

“Our development will deliver much needed quality homes within the wider masterplanstrategy, contributing significantly to meeting local housing needs and creating a strong sense of community.”

Part of the £200 million turnover Ogilvie Group, Ogilvie Homes is one of Scotland’s fastest growing house builders with current sales of £53m and developments in Boness, Crieff, Plean and West Kinfauns among other sites. The company offers new homes and social housing properties that combine exterior character with interior spaciousness and high levels of craftsmanship.

Real estate consultancy firm JLL is acting as the residential land agent for Blindwells and handled the sale of Plot 11 on behalf of Hargreaves Land.

The Stand is back and ready for The Royal Edinburgh Military Tattoo 2022

The Royal Edinburgh Military Tattoo Piper, Conner Pratt (Fife), Highland Dancer, Rosey Watt (MacDuff) and Drummer, Frazer Rankin (Dunbar), took to the Edinburgh Castle Esplanade at sunset to mark the completion of the Stand build, ready for this year’s much-anticipated Tattoo performances.

Crowds will gather at Edinburgh Castle this summer, from 5-27 August, for the cultural spectacular, which returns for the first time in three years.

This year’s Show, Voices, is a celebration of expression, giving a stage to performers and acts from around the globe to share their voices through spoken word, song, music and dance.

The Tattoo belongs to the city and to recognise this and celebrate the countdown to the first Show, The Royal Edinburgh Military Tattoo is giving back to people living in Edinburgh, the Lothians and Fife with a special, limited offer of a 25% discount for the first 1000 tickets sold – only applicable to locals who use the code EH25 from the 11th of July.

Buster Howes, Chief Executive of The Royal Edinburgh Military Tattoo, said: “The Stand’s construction changes the Castle skyline dramatically, marking the start of Edinburgh’s summer of festivals and cultural celebrations.

“After two years without its presence, its completion today has even more meaning for the people of Edinburgh as it signifies the dawn of a new era. The Tattoo is ready for its return, and we are coming back with a bang!

“We’re committed to giving back to the city, the Tattoo belongs to the locals and we’re celebrating with a discounted offer to give everyone the chance to see the spectacular Voices Show live. I’d encourage everyone across Edinburgh, the Lothians and Fife to make the most of this offer, the Tattoo has something for everyone, and they will be blown away with the Show”.

Tickets are on sale now and can be purchased at edintattoo.co.uk/tickets or on the phone on 0131 225 1188.

Drum Property Group starts construction at Stead’s Place

Edmond de Rothschild Real Estate Management to Forward Fund First Phase of 110 Build-to-Rent Apartments

Drum Property Group’s ambitious vision for the long-awaited redevelopment of a key site on Leith Walk, Edinburgh, is now to be realised with on-site construction starting in July 2022.

Drum’s proposals for Stead’s Place, near the foot of Leith Walk, were approved by the City of Edinburgh Council in 2021 heralding a major regeneration of the 2.9-acre site and bringing much-needed investment to this important part of the city.

The Stead’s Place site has been earmarked for development by the Council since 2008 and consisted largely of an aged industrial estate and office space, together with a two-storey red sandstone building facing directly on to Leith Walk.

With refurbishment of the red sandstone building nearing completion, Drum has cleared the Stead’s Place site to the rear and, in the first phase of construction, will build 110 high-quality build-to-rent apartments for Edmond de Rothschild Real Estate Investment Management (REIM), who have agreed to forward-fund the development.

The apartments will be completed by spring 2024. The Stead’s Place apartments represent the second Scottish investment for the firm, having forward funded a build-to-rent development of 114 apartments in Finnieston, at Drum’s G3 Square development in December 2021.

Graeme Bone, Group Managing Director of Drum said: “The start of construction of the new apartments represents another significant step forward in the long-awaited regeneration of the Stead’s Place site.

“Once completed, the apartments will be a huge boost to the area and to local businesses, bringing life and access to what has been an inhospitable site, and delivering much-needed homes for local people.”

The Edmond de Rothschild Residential Investment Fund UK, which invests in the private rented sector (PRS) on behalf of European institutional investors, was launched in August 2018 and to date has raised equity commitments of £320m.

Charlie Miller, co-head of residential in the UK and director of residential transactions at Edmond de Rothschild REIM, said: “Stead’s Place is an excellent opportunity to establish the fund’s first development in Edinburgh and second in Scotland.

“We will provide high-quality rental accommodation at affordable levels in line with the strategy for the fund. Edinburgh is the sixth most competitive financial centre in Europe, second in the UK behind London and has six universities, a diverse economy and a thriving tourist market – all contributing to exceptionally strong demand for homes to rent”.

The final phase of construction at Stead’s Place will start at the end of the year, and will comprise of 38 affordable homes, owned and operated by registered social landlord, Hillcrest Homes, completing the attractive landscaped residential scheme linking Leith Walk to Pilrig Park and beyond.

David Milton, Development Manager at Hillcrest Homes said, “Stead’s Place provides the opportunity to deliver 23 new social-rented homes and 15 mid-rented homes, all of which will be allocated to those in housing need.

“The Social Rented homes will deliver a good mix of one, two and three bed apartments and we are particularly pleased to be delivering family sized homes in this location.

“There is a continuing unmet demand for affordable homes across Edinburgh and this development will help meet this demand and provide high quality, energy efficient new homes to those who need them the most.”

The start of construction is the culmination of five years of research, planning and local community engagement by Drum since the company first purchased the site in 2017. For more information about Drum Property Group’s redevelopment of the Stead’s Place site, visit www.steads-place.com

GRAHAM reinforces commitment to the next generation of construction workforce

Leading contractor, GRAHAM (formerly GRAHAM Construction), has pledged to support Scottish youngsters to establish a career in construction by joining the Young Person’s Guarantee (YPG) – a joint commitment to bring together employers, partners and young people across the country.

The £60 million Scottish Government led initiative aims to provide opportunities for all 16-24 year olds in Scotland through jobs, apprenticeships, further and higher education, training programmes and volunteering.

In addition to the existing apprenticeship and training opportunities at GRAHAM, including its dedicated GRAHAM Academy Scotland, the firm has joined the YPG to underline its commitment to supporting youngsters whilst future-proofing skills needed in the construction industry.

GRAHAM will now work alongside Developing the Young Workforce (DYW) Edinburgh, Midlothian and East Lothian; DYW Glasgow; DYW Fife; DYW North East and Action for Children to establish valuable partnerships which will see young people obtain both practical experience and academic accreditation with the team’s support.

Already through its partnership with Action for Children, GRAHAM has employed four youngsters in various positions across its live Glasgow build to rent (BTR) schemes, which are creating an abundance of community benefits and helping to address the demand for high-quality homes in the city.

Three young people are currently employed on Edinburgh projects and a further two apprentices will be joining the firm in August. Two Action for Children work trials have started at GRAHAM sites in Edinburgh and both have now secured full time roles, where they will be working across student accommodation and BTR schemes.

Suzanne Stevenson, social impact advisor at GRAHAM, said: “There are a number of young people across Scotland who face a variety of obstacles which prevent them finding a route into construction and a fulfilling career.

“At GRAHAM, we are proud to offer year-round apprenticeship and graduate programmes where over the last five years we have created more than 300 opportunities – many of which have extended into full-time employment.

“However, we are always looking at ways to enhance how we support our future generations and by pledging to support the YPG, we will now have national support to develop a workforce that has young people at its heart and help create a resilient industry for decades to come.”

GRAHAM is also a member of The 5% Club – an organisation consisting of companies committed to ensuring that at least 5% of their workforce over the next five years is comprised of young people on structured learning schemes.

Already across Scotland, 13% of GRAHAM’s workforce is made up of young people and its Building North region hosts a quarterly Young Persons Forum where younger colleagues come together to share ideas and network.

Scottish National Gallery project set for Summer 2023 completion

A ‘transformative project’ to deliver an inspiring new space for Scotland’s renowned collection of Scottish art has passed a series of crucial milestones and the main construction work is on track to complete this winter.

With all the major engineering challenges now successfully overcome, the project is entering its final phase. This means that members of the public can look forward to experiencing a brand-new suite of world-class galleries at the Scottish National Gallery in the summer of 2023.

The Scottish National Gallery Project will create a beautiful space for Scotland’s art right in the historic heart of Edinburgh, with striking displays drawn from the National Galleries of Scotland’s (NGS) broad-ranging collection alongside special loans from other leading arts institutions.

Large windows will offer spectacular light-filled views across Princes Street Gardens, inviting visitors to come in and discover the work of pioneering Scottish artists such as Phoebe Anna Traquair, William McTaggart, Anne Redpath, Sir Henry Raeburn and Charles Rennie Mackintosh.

Stunning exhibition spaces will enable visitors to experience Scotland’s greatest art anew and feel pride in their national collection. Scotland’s artistic legacy will be revealed through innovative presentations, with much-loved Scottish Colourist paintings appearing among other major works from the first half of the twentieth century, bringing to life key aspects of Scottish art and society.

New ways of looking at Scotland’s built and natural environments will be on offer, with early photographs of Scotland’s cities shown in the same spaces as grand paintings of majestic Highland and island landscapes.

Reimagined displays of drawings and sketches will celebrate artists such as Glasgow Style pioneer Margaret Macdonald Mackintosh and David Allan, whose depictions of ‘Edinburgh Characters’ will allow visitors to get up close to street life in the capital in the late eighteenth century.

The teams working on the Scottish National Gallery project have been dealing with an incredibly challenging location, situated within a World Heritage Site which comprises an iconic A-listed nineteenth-century building with several major modern additions from the late 1960s onwards.

The creation of new Gallery spaces has entailed extensive excavation underneath the existing building and its setting on the Mound. Unexpected remnants from previous developments added significant complexity to the building work.

These include deeply buried layers of dense concrete and other undocumented obstructions which had to be extracted before major waterproofing works could be completed to protect the new development for the future.

In addition, the location of a key area of the site directly above the three Mound rail tunnels, some of the busiest in Scotland, posed distinct logistical challenges. These challenges have all now been successfully overcome and the construction work is entering its final phase.

Director-General of the National Galleries of Scotland, Sir John Leighton, said: “We are excited to be looking forward to a summer 2023 opening for the magnificent new spaces that will be delivered by the Scottish National Gallery Project.

“They will enable our visitors to discover and enjoy Scotland’s greatest art in a fully accessible suite of world-class facilities right in the centre of Edinburgh. Reaching this stage has been no mean feat, given the unique set of construction challenges faced by the Project all within the very difficult context of the global pandemic.

“With these now largely overcome, our attention can now focus on preparing the new Galleries for a joyous and celebratory unveiling next year.”

While construction has been ongoing, a wide programme of engagement and outreach for the Project has also been delivered, taking in schools in Fife, Orkney and West Lothian, social groups for older people experiencing loneliness in Edinburgh, and youth groups in the Borders.

Digital activity has further extended the reach of the Project through a rich and engaging series of videos about star works of art from the Scottish collection, and a painstaking monumental conservation project gripped online audiences during lockdown.

The first phase of the Scottish National Gallery Project was completed successfully in 2019. This included a new entrance area in East Princes Street Gardens, a new café, refurbished restaurant and shop, an elegant sandstone terrace, and new landscaping and paths to improve access to the gardens and the Galleries.

Trams to Newhaven project ‘on track’

The majority of track has been laid to take the tram to Newhaven as the scheme enters the final phase of construction works.

More than 3km of track – 70% of the total to be laid – is now in the ground as part of the Trams to Newhaven project, which remains on schedule to begin revenue services in spring 2023, delivered within the £207.3m budget.

The main construction work on three of the eight new tram stops is also complete, while over 3km of drainage (66% of the total) and almost 4km of communications ducting (82% of the total) serving the tram and wider area has been installed.

Construction is ‘largely finished’ on several key sections of the route, other than some localised works, including Constitution Street, between Constitution Place and Queen Charlotte Street, and Ocean Terminal to Rennie’s Isle.

Next week, operational tram stops on Princes Street and St Andrew Square will reopen following their temporary closure. These were closed to allow for the removal of the York Place tram stop and installation of new infrastructure there connecting the existing line to the new one.

As we enter the final year of major civil work ahead of testing and commissioning this winter, a review of the specific completion dates for remaining sections has been carried out.

This has resulted in some changes affecting certain sections due to various unavoidable factors such as complex utilities diversions, archaeological finds and an industry wide shortage of materials, though this is not expected to affect the final completion date.

Full details of the updated programme are available on the Trams to Newhaven website.

Councillor Lesley Macinnes, Transport and Environment Convener, said: “It’s clear that the Trams to Newhaven project is well on its way to completion, as these figures show, and before long we’ll be testing trams on the streets of Leith.

“Next week, we’ll also see the return of the existing service to the city centre, which I’m sure will be great news for many.

“Of course, while this project will bring significant benefits to the area, we know that its construction has impacted all those who live and work nearby, and I’d like to thank them for their patience during the last two years.

“As we enter the final year of work to deliver the tram line, we’ve had to make some changes to the programme due to issues outwith our control.

“I want to assure communities along the route that we’re doing everything we can to mitigate the impacts of this, and that we’re still on track to begin providing the service by spring next year.”

Councillor Karen Doran, Transport and Environment Vice Convener, said: “This project will be transformative for the north of the city and it’s really exciting to see it take shape already.

“Once complete, it will play a key role in the future growth and development of the city. Delivering the tram line to Leith will unlock a large area of the city for housing and economic development, while providing a low-carbon, clean mode of transport to densely populated communities.”

The project team is working to mitigate the impact of changes to the programme, ensuring the scheduled spring completion date is met.

Based on lessons from the first tram line, and best practice from other major European construction projects, Trams to Newhaven focuses on large work sites, providing the flexibility to continue construction elsewhere on-site if issues are encountered.

In the coming months, localised works will continue on completed sections to resolve defects, carry out landscaping, install equipment to support the new tram line including tram communication systems, complete tram stop fit-outs and install overhead line equipment, street lighting and traffic signalling.

Since 2019 the project has provided significant support to businesses through its £2.4m Support for Business initiative. As part of this more than £100k has been spent on an ‘Open for Business’ campaign, 60k deliveries have gone through dedicated logistics hubs and 140 applications have been made to the business continuity fund. In addition, the extremely popular itison scheme has seen over 20k vouchers sold, generating £200k spend in participating businesses.

Additional milestones:

90% of utility diversions complete
Substation at Melrose Drive complete and fit-out ongoing
Lindsay Road retaining walls complete
All track crossovers, which allow the tram to turn back on itself, installed
Constitution Street wall rebuilt following archaeological excavations
Archaeological excavations on Constitution Street complete, which saw more than 360 bodies exhumed, dating from between 1300 and 1650, as well as finding the apparent remnants of the original medieval graveyard wall.

Still no word from the long-running Edinburgh Tram Inquiry into the Edinburgh Tram project.

This inquiry,which was set up in 2015, aims to establish why the original Edinburgh Tram project incurred delays, cost massively more than originally budgeted and through reductions in scope delivered significantly less than oroginally promised.

The costs to taxpayers so far is an eye-watering £12.5 million …

Find out more about Trams to Newhaven online.

Construction: Start performance continues to decline, but negative curves start to soften

Planning approvals and main contract awards rally, indicating future recovery
Value of underlying work starting on-site (less than £100 million) during the three months to February fell 12% against the preceding three months, down 30% compared with the previous year
Residential project-starts performed poorly, with the value declining 21% against the preceding three-month period to stand 46% lower than a year ago.
Non-residential work starting on-site increased 1% against the preceding three months but fell 2% compared with a year ago
Civil engineering-starts slip back 17% against the preceding three-month period to stand 34% lower than the previous year.

Glenigan, the construction industry’s insight expert, has released the March 2022 edition of its Construction Index.

The Index focuses on February 2022, covering all projects with a total value of £100m or less (unless otherwise indicated), with all figures seasonally adjusted.

It’s a report which provides a detailed and comprehensive analysis of year-on-year construction data, giving built environment professionals a unique insight into sector performance over the last 12 months.

Silver Linings

Although decline continued into February, making it the weakest on record, performance-wise since 2015, a strengthening pipeline of planning approvals and main contract awards indicates future, if not immediate, recovery.

This month’s Index shows that, the downward curve, which has persisted since spring 2021, is starting to soften. Supply chain issues might continue to bite, but are less aggressive in material terms.

However, socio-economic ructions caused by the Russia-Ukraine situation will no doubt have an effect as fuel and energy prices are likely to rocket in Q.2 and Q.3. However, the full impact is still too early to appreciate.

Sector Analysis – Residential

Private housing experienced one of the worst overall performances of any sector during this period, with the value of project starts declining by 23% against the preceding three months (to February 2022), standing 50% lower than a year ago.

Social housing fared little better, having remained relatively robust in the preceding months, falling 16% during the period and 26% compared with the previous year.

Looking at the sector overall, work commencing on site fell 21% during the three months to February, and were 46% lower than the previous year.

Sector Specific – Non-Residential

It was a mixed bag in the non-residential sector, however, a few trends are starting to emerge which indicate post-COVID resurgence.

Last month, the Index reported that hotel & leisure grew (23% on the preceding year, and 35% in the three months to January). Once more, the sector has increased performance-wise, standing 23% on the preceding the three months to February and 7% higher than a year ago.

Community & amenity was another March index high-riser, experiencing a spike in activity. Starts jumped 28% against the preceding 3 months and 38% compared with a year ago.

Industrial-starts, the consistent star performer in Index terms, declined 17% during the three-month period covered by the Index. However, the vertical remained steadfast, up 19% on the previous year.

Sprinting ahead, office construction-starts increased by nearly a fifth (17%) in the three months to end of February, but fell marginally short compared to 2021 levels (-6%)

Education and health-starts fell, reflecting a steady decline in both sectors, which will no doubt throw the Government’s levelling-up policy open to scrutiny.

Whilst infrastructure construction-starts indicated green shoots of recovery, increasing 2% during the three months to February, the value fell 27% compared to 2021.

Modest increases will be tempered by another sharp fall for civils work, down 17% against the preceding three months and 34% compared with a year ago. The utilities sector added further salt to the wound once again posting big losses in start terms, falling 43% against the preceding three months to February to stand 48% lower than a year ago.

Regional Analysis

The North East was the best performer during the three months to February, and the only one that experienced growth against this period and 2021 (+6%).

Inconsistency reigned supreme in the other regions. Scotland experienced the greatest increase in project starts against the preceding three months (+13%), but was down 36% on a year ago. Similarly, project starts in London declined by over a quarter (26%) compared to 2021, but increased during the three months to February. The South East was the only other region to experience growth against the preceding three months (+4%).

Unfortunately, all other regions returned poor performances. The value of project starts fell in the West Midlands by 41% during the three months to February, standing 54% lower compared to a year ago. Strong declines were also seen in the East Midlands, East of England, North West and South West on both the Index period covered and 2021.

Commenting on the Index’s findings, Glenigan’s Senior Economist, Rhys Gadsby says, “We urge readers of this Index to maintain a positive outlook. Whilst project starts remain low, the downward curve is softening and, as our most recent Forecast predicted, a gradual rise in the latter half of 2022 is likely.

“External events are skewing the market and no doubt current geopolitical events in Eastern Europe will create some challenges. However, the UK construction industry is incredibly resourceful, and the strong pipeline of planning approvals and contract wins is testament to this. In our view it’s very much a case of ‘keep calm and carry on’.”

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