POLITICS TRANSPORT ISSUE 33 | November/December 2018 Is the government’s Three-year industrial strategy driverless car still a priority trial comes to one year on? a close page 8-9 page 20-21

INTERVIEW Crossrail 2’s Michèle Dix talks about why the project needs to be more affordable page 16-17

Produced for the industry by the Association for Consultancy and Engineering

Engage the public on infrastructure, says Armitt page 10-11

PLUS: • Transport and towns • Russian railways • Late payment • Green economy • Book review 2 Infrastructure Intelligence | November/December 2018 MESSAGE FROM THE EDITOR

Can it really be that another year is drawing to a close? A year in which infrastructure has once again been high on our politicians’ agenda, along with the ever-present concern of Brexit and the effects that might have on the economy and our sector. While the ramifications of the Brexit negotiations are still (still!) uncertain, what we do know is that infrastructure expenditure is one of the best and most cost-effective ways of boosting the UK economy and improving the lives of millions of citizens. In 2019 I hope that our politicians finally grasp this truth and start to really invest in infrastructure and the industry that supports its delivery. Good quality infrastructure, as Keith Howells writes on page 22 and 23, can connect and unite communities and help resolve many of the challenges we face as a society. That’s a big message and we as an industry need to ensure that it is one that is heard loud and clear by those in government and, given the uncertain political climate, by those in opposition too. As Sir John Armitt correctly points out in this issue, winning over Produced for the industry by the Association for Consultancy and Engineering the public is a prerequisite to winning political support for projects and in 2019 I hope to see the industry redouble its resolve to engage people Infrastructure Intelligence and get its positive message across on all fronts. 12 Caxton St, London SW1H 0QL Finally, as this is our final issue of 2018, I’d like to be the first to wish T: 020 7222 6557 all our readers a happy and relaxing festive season and a prosperous www.infrastructure-intelligence.com and peaceful 2019. Editor: Andy Walker 07791 997602 Andy Walker, [email protected] editor, Infrastructure Intelligence Reporter: Ryan Tute 07843 055210 [email protected]

Commercial Director: Brian Nolk Contents 020 7227 1882 [email protected] PFI 4 Is the end of PFI just party politics? ACE’s chief executive speaks to MPs about the Construction Design and production: Politics 5 Riccardo Gualandi Sector Deal 020 7227 1891 Towns 6 Transport and its key role in revitalising towns [email protected] Placemaking 7 The importance of planning and design in placemaking Produced by Victoria Street Capital on behalf of the Association for Consultancy & Industrial 8 The government’s industrial strategy one year on Engineering, 12 Caxton St, London SW1H 0QL. strategy The views expressed in Infrastructure Why early public engagement is vital to infrastructure Communities 10 Intelligence are not necessarily those of the delivery Association for Consultancy & Engineering. Opinion 12 Air quality; Industrial strategy; Immigration after Brexit Printer: CPG, 9-10 Orchard Business Centre, Sanderson Way, Tonbridge, Kent TN9 1QG. Railways 14 Transforming Russia into a global rail leader T 01732 366666, [email protected] Crossrail 2 16 We talk to Crossrail 2’s managing director Michèle Dix 2019 subscription rates: £80 a year. Funding 18 Councils sitting on £443m as local infrastructure suffers GET MORE FROM Late payment 19 Roundtable report on tackling the late payment problem INFRASTRUCTURE-INTELLIGENCE.COM Infrastructure Intelligence is published Autonomous We report as a three-year driverless car testing project 20 six times a year, but you can find more vehicles comes to a close content online. Our website Infrastructure infrastructureintelligence. 22 Why infrastructure can and must deliver inclusive growth com is updated daily, with planning two free e-newsletters a week. Green We highlight a new partnership to drive clean economic 24 Sign up at the website: economy growth www.infrastructure-intelligence.com Follow us on twitter @infra_intel AECOM’s David Barwell on promoting infrastructure Think Tank 25 Join the Infrastructure Intelligence group investment on LinkedIn New website; CEO Awards and Conference: Regions and ACE news 26 nations meeting EIC news 29 Chancellor Hammond hesitates on the green economy Book review 30 We review architect Ben Channon’s book, Happy By Design

November/December 2018 | Infrastructure Intelligence 3 News feature Is the “end of PFI” little more than party politics?

After Philip Hammond pledged to not sign any new PFI contracts in his budget, Ryan Tute looks at what this means for financing future UK infrastructure projects.

t may not come as a surprise for many in the industry, but for any Ipotential PFI investors still in doubt then the chancellor used his autumn budget to deliver the fatal blow to any new Private Finance Initiative contracts. Philip Hammond was hoping to send a clear message out to the construction sector and investors that this government meant business, saying definitely a factor behind Hammond’s for government to adopt to facilitate the “days of the public sector being a statement. He says a programme of this investment as opposed to the PFI pushover” were over. fiscal devolution which allows local model. It is important, however, that MPs in the Commons were told that authorities to retain the growth in their the public and private sector finds a PFI deals no longer represented value tax bases and leverage finance is now way of forging effective partnerships, for money and while he had never required. working together to structure these signed off the use of a PFI contract, or The economist said: “This is arguably projects so as to ensure their successful its successor PF2, the announcement more an announcement to neutralise delivery when they are brought to would now end the future use of the Labour’s position on private finance market.” financing method. than a material change in government From the outside it appears that But with no deals of note signed since policy. In overall terms, the government only Highways England Stonehenge 2016 and just four transactions posted appears to be tilting towards a policy and Lower Thames Crossing projects with a value of around £500m in 2015 position in which drawing from public will be impacted moving forward, - way down on the £7bn plus value of sector sources is once again seen as with both using PFI deals. Arup 55 transactions of 2009 - then does the the norm. Examples of this include the economist Jan believes a switch to statement of intent hold much value? removal of the cap on local authorities’ more traditional contracting will be The idea of putting to bed PFI use of housing revenue accounts to implemented through conventional contracts is also nothing new. In 2017, leverage borrowing, the expansion of government expenditure as part of the shadow chancellor John McDonnell the Housing Infrastructure Finance agency’s £30bn Vehicle Excise Duty promised a radical review of all PFI programme and an expansion of the budget announced by Hammond. All contracts if Labour was to win the next government’s ‘Help to Buy’ scheme.” the money for these schemes is now general election, saying “we’ll bring Colin Wilson, partner at international set to come from public finance and these contracts and staff back in-house”. law firm DLA Piper, believes the lack of Highways England’s own budget. At the time McDonnell said PFI confidence expressed by the chancellor Simon Rawlinson, head of strategic has cost taxpayers over £28bn paid and Labour’s previous threats of research and insight at Arcadis, added: to private sector investors and nationalisation, are clear signs of a “lack “The end to the use of the PFI for shareholders. While a freedom of of trust between the public and private social and economic infrastructure information request conducted by sector”. is good politics as no deal has been the law firm Collyer Bristow recently “The need for infrastructure signed since 2016. However, finding showed that just £32m was withheld investment in the UK has never been the finance to plug the gaps left by from PFI providers, confirming higher, especially in the transport and the European Investment Bank, which government fears that tax payers are energy sectors, yet our need continues the budget does not address, along over-paying for poor service. to exceed the capital budgets that are with public sector expertise to deliver Alexander Jan, chief economist available,” he added. “There are many publicly-funded programmes, may at Arup, believes party politics is partnering alternative models available prove to be longer-term liabilities.”

4 Infrastructure Intelligence | November/December 2018 Construction Sector Deal Momentum vital for Construction Sector Deal, ACE CEO tells MPs ACE’s chief executive “For example, there are commitments in the transforming infrastructure has given evidence on programme and the publication the Construction Sector government construction strategy that haven’t been met. I think consistency is Deal to the Department really important and if we can get it to hit the market so to speak when they for Business, Energy and come out and procure then that’s when Industrial Strategy select you will really have the fundamental change in industry. committee. The ACE chief also told the committee how trade and business associations peaking to MPs, ACE’s chief executive were needed to “bridge the gap” between Hannah Vickers has spelt out what government and SMEs and changes in Sshe believed was important in the governance of the Construction ensuring that the £420m Construction Leadership Council were necessary to Sector Deal is a success story. utilise organisations like ACE more. In the latest evidence gathering “It’s good to have headline targets mission by MPs, Association for and working with the new chair what Consultancy and Engineering (ACE) we need to focus on is getting that chief executive Hannah Vickers has plan around it,” Vickers added. “We warned about losing the “goodwill” have the high-level frame, the targets, and “momentum” surrounding the but we are missing the plan. We need government’s Construction Sector Deal to focus very much now on delivery as questions on progress were brought to ACE chief executive Hannah Vickers and I do think there is a need to the table. giving evidence in parliament at the reformat the governance around the Vickers was part of a panel of industry Department for Business, Energy and Construction Leadership Council which leaders invited to provide oral evidence to Industrial Strategy select committee. has historically been represented by the Department for Business, Energy and individual firms.” Industrial Strategy select committee on the UK’s export potential and thus turn Finally, in response to a question on the industrial strategy, sector deals and the industry into a “product-based” one, what the government has done to help, issues surrounding productivity. rather than a “man-hours” offering. Vickers identified incentives like R&D tax The session also specifically focused While reaffirming the fact it was still credits and the apprenticeship levy. on the £420m Construction Sector Deal “early days” for the government and the She said: “We have been working which was announced in July and is an acceleration of the Construction Sector with the Construction Leadership integral part of the Industrial Strategy. Deal, Vickers told the committee that Council to shape the strategy around It sets out what it believes to be the early indications showed there were some the deal. I think the tangible things we foundations for an ambitious partnership promising signs from government. have noticed to date are more specific between the government and industry to “I think from what we have seen so far, policy announcements like the R&D tax transform the sector. given that the deal was only announced credits which have had a big impact, we The ACE chief executive has previously in July, the deal is giving industry know now we are spending 3-4% of the highlighted the need for representative confidence to invest,” she said. “I’ve got consultancy firms revenue on it which bodies to unite behind the Construction SME members now setting up separate we didn’t have before as an incentive.” Leadership Council and has backed its businesses because they have got a clearer incoming co-chair Andy Mitchell, on understanding of how government will his plea for the industry to overcome create a stable policy environment.” “It’s good to have headline its fragmented structure to deliver the However, Vickers did issue a word of targets and working with Construction Sector Deal successfully. warning to MPs on the real possibility of In the hour-long session, Vickers losing momentum. “I think we are at risk the new chair what we started by stressing how increased of that goodwill and momentum which need to focus on is getting investment in digital design and offsite has been built up around the sector deal that plan around it.” manufacturing, together with the sector stalling because there are dribs and drabs deal’s supporting role would help improve of announcements coming out,” she said. Hannah Vickers, ACE chief executive

November/December 2018 | Infrastructure Intelligence 5 Local transport Transport key to putting towns back on the map A new report examines the key role that The multi-modal transport interchange in Altrincham, Greater transport interventions Manchester, which helped to can play in supporting transform the town centre’s fortunes. post-industrial towns and transport infrastructure are insufficient • Hard and soft (capital and revenue) in themselves. One-off investments in transport measures can play a vital role argues that a coordinated flagship, capital transport projects, are in widening access to employment, approach is needed to not enough alone for towns to truly education and skills, enhancing quality succeed. Instead, investment must be of life, and enabling access to leisure, achieve success. integrated with other initiatives in areas recreation and physical activity for the such as education, housing and economic residents of towns. ransport has a key role to play in development, for example, locating • Transport is key to opening up new helping the UK’s post-industrial new colleges alongside public transport sites for housing and commercial Ttowns to thrive, putting them hubs and ensuring public transport is development in and around towns firmly back on the map, a report by the affordable for young people. Urban Transport Group has found. Jonathan Bray, director of the Urban The report also includes a number The report, About towns: How transport Transport Group, added: “We need of examples of where transport can help towns thrive, reveals how transport to move away from a ‘silver bullet’ has helped or is helping towns to can address many of the challenges approach based on a single transport succeed, including: that such towns can face, such as solution and instead towards packages unemployment, underinvestment and of transport measures combined with • Transformation of Kilmarnock Station, a lack of housing, by creating jobs, wider cross-sector initiatives on housing, in Scotland, into a vibrant hub for the attracting investment and opening up employment and education. Only then community; sites for homes. can transport make its mark in reversing • The new National College for Transport can also shape the way the fortunes of our post-industrial High Speed Rail’s £25m campus in towns look and how their residents towns.” Doncaster, which builds on Doncaster’s feel about them, renewing a sense of railway heritage and acts as a potential civic pride through better and healthier Key findings from the report include: anchor institution, reinvesting in the streets, and high-quality transport town’s rail businesses; and infrastructure such as stations and • Long-term leadership and planning • The creation of a new multi-modal interchanges. Tobyn Hughes, chair of the is needed to transform towns but transport interchange in Altrincham, Urban Transport Group, said: “As major with space for bottom-up community Greater Manchester, which (alongside drivers of the economy, cities have been initiatives. other investment) has led to a 19% the focus of much of the debate about • Restoring historic transport increase in town centre footfall and a urban transport policy. But the future of infrastructure and building new high- 20% reduction in vacancy rates. the UK’s post-industrial towns, and how quality interchanges in towns can they succeed and support their residents provide destinations in their own right, The report features case studies from the and wider economies, is increasingly becoming a welcoming gateway for UK and the wider world of how different under the spotlight. visitors and investors and a celebration types of interventions - from transport’s “This report shines a light on just of history and heritage. role as an ‘anchor institution’ how key transport is if our towns are to • The transport sector is a for local economies and as an thrive. Whether it is providing greater major employer in towns employer, through to how transport access to jobs, opening up investment and can be both an anchor interchanges can act as ‘gateways’ opportunities, meeting housing demand institution (reinvesting and sources of civic pride and or creating go-to destinations, transport in local businesses) and renewal - can achieve results. is a true enabler of prosperous and proud an exemplary employer towns.” (by investing in skills and You can download the About Towns A key finding of the report is that people, and by paying report at https://bit.ly/2STzMQp isolated capital interventions in decent wages).

6 Infrastructure Intelligence | November/December 2018 Cities

Better planning and design can boost city productivity A new report sheds light on the potential contribution of the way that cities are planned and designed makes to boosting local productivity. Ian Liddell of WSP.

ith a 44% difference between Spaces can work and remain independent for the most and least productive The report explains that when places longer. WUK cities, experts at are more attractive, more flexible and “Urban designs that offer step-free engineering and professional services are more efficient in their use of space, access, tactile paving and convenient consultancy WSP say that the lack of they will drive productivity. This includes public transport services to amenities focus on how the built environment spaces that are aesthetically pleasing, and workplaces can help disabled people contributes to local productivity is a have good connectivity and can easily be travel to and therefore stay in work”, said missed opportunity. adapted to future technologies such as Liddell. “Good practice should ensure WSP asserts that applying a electric vehicles. where feasible, that all common, daily ‘productivity lens’ to all development “An effective approach to spatial activities can be achieved within walking at a more local level will deliver planning can help to avoid isolated distance,” he says. productivity gains to local economies. communities and ensure we are A new WSP report sheds light on addressing the challenges of tomorrow”, Resilience the potential contribution of the says Liddell. “We think that local Areas which are more resilient can way that cities are planned and industrial strategies should consider how maintain higher levels of productivity designed to boost local productivity the public realm can be used to increase during disruption, protect local and recommends a new approach productivity,” he said. businesses and supply chains from rapid for city leaders to make their change and accommodate future trends cities more productive. The report Health in society, mobility and climate change. outlines how places which are It is well known that healthier “Planning best practice should consider designed and delivered with space, employees are more productive at work specific analysis of how areas can health, accessibility, resilience and and physical inactivity costs businesses remain productive in climate change engagement (SHARE) in mind can be around £126,000 every year per 1,000 scenarios, with specific focus given to more productive. employees. The living and working energy systems, water supplies and “Local authorities up and down environments affect the individuals’ transport systems”, explains Liddell. the country are currently responding experience and poor health creates an to the government’s call for action unproductive cohort of people who Engagement to deliver productivity through cannot contribute. With developments affecting local local industrial strategies,” explains “Poor health is a cost to the system communities, city leaders need to Ian Liddell, managing director, and public realm designs can play a put communities at the heart of planning and advisory at WSP. “By preventative role through high- quality regeneration and encourage meaningful introducing the SHARE approach, outdoor spaces and healthier homes and input which will help communities the potential productivity gains that workplaces”, says Liddell. “Placemaking shape the productive future of places can be unlocked by how the built strategies should consider monitoring where they live and work. environment is designed and delivered outcomes such as physical activity, air “Creating truly productive and are considerable,” says Liddell. quality, and noise to maximise health future ready places up and down the The report emerges after recent and productivity.” country will require engagement and research by Transport for New collaboration”, continues Liddell. “We Homes and RAC warning that some Accessibility aim to open this discussion about unconnected developments with a lack More accessible cities save time and productivity to all, and I am keen of public transport access, walking reduce traffic costs. Recent research that WSP continues to play its part in and cycling routes are trapping new shows that motorists in London currently collaboration with public and private occupiers into an over-reliance on spend on average 74 hours in traffic each sector delivery partners, academia the car, contributing to congestion, year, costing the city £9.5bn. Within an and think-tanks to promote the value gridlock and poorer health, all of which accessible city, there is also a need for of a productivity-focused approach to negatively impact productivity. inclusive developments so more people design”.

November/December 2018 | Infrastructure Intelligence 7 Industrial strategy One year on, is the industrial strategy still a priority?

Experts in the infrastructure sector talk to Ryan Tute about how they view progress a year since business secretary Greg Clark launched the industrial strategy.

lmost a year to the day after the government with industry, academia government unveiled an and business bodies who submitted Aambitious industrial strategy almost 2,000 responses to the green which pledged to support firms in paper consultation earlier in 2017. seizing the “big opportunities of our But in the 365 days since plans were time” and put the UK at the forefront revealed, what changes have we really of a data revolution, has its seen? Has there been real progress preoccupation with Brexit and other and are we on the road to improving affairs put the long-term vision on the productivity performance, embracing backburner? technological change and boosting The inaugural Industrial Strategy Council To answer this, Infrastructure economic output? meeting. Intelligence gauged the opinions of Concerns are centred around the several industry leaders who have cast strategy losing traction as Brexit of infrastructure investment in boosting a close eye on the process since the negotiations continue to be drawn the UK’s productivity. One year on, the launch of the industrial strategy out and dominate the political arena. rhetoric must turn into action. With on 27 November 2017, which Leading infrastructure firms government increasingly engaged with marked the culmination of like AECOM are just one the ongoing Brexit negotiations, there is an 18-month process starting example of a company who are a danger the strategy will lose traction. when Theresa May first got keen to see greater clarity and “Attracting investment requires the keys to number 10 and focus on the pace of delivery for increased certainty around the UK’s declared it a priority as PM. transformational programmes. project pipeline and greater engagement Central to the white paper Colin Wood, chief executive between government and industry will were the five foundations of civil infrastructure, EMEA, be an important step to drive forward of productivity – ideas, at AECOM, says: “Since the industrial strategy’s infrastructure people, infrastructure, its launch, the industrial agenda.” business environment and strategy has initiated the right Engineering consultants WSP believe places. Each foundation is conversations about the vital role progress has been made on the Grand underpinned with measures like raising Challenge funds, especially in terms of total R&D investment to 2.4% of GDP by clean growth and new mobility, and the 2027 and the rate of R&D tax credit to “But the most single leadership shown by ministers on these 12%. two fronts should be welcomed they say. Four grand challenges were important thing Charles Malissard, head of published in the white paper which ministers could achieve government relations at WSP, said: identified global trends that were “WSP welcomed the industrial strategy predicted to shape a rapidly changing by this point next year when it was published and fed in to a future and areas that the UK must with problems around number of key consultations. Its focus embrace to harness opportunities. on people, place, infrastructure, ideas The four grand challenges pinpointed productivity would be to and business environment, galvanised artificial intelligence, clean growth, get the best possible soft us to think about how we might help to an ageing society and the future of Brexit deal.” articulate better the major contribution mobility. The white paper launch of the built and natural environment followed extensive engagement by Alex Jan, Arup chief economist to the main challenge the strategy was

8 Infrastructure Intelligence | November/December 2018 Industrial strategy One year on, is the industrial strategy still a priority?

industrial strategy is a priority,” Jan said. “The signals coming out of government say it is important and the fact they have got some heavyweight people involved including the chair being the chief economist of the Bank England suggest they are serious about it. But the most single important thing ministers could achieve by this point next year with Theresa May on a visit to a tech company. problems around productivity would Andy Haldane. be to get the best possible soft Brexit designed to address productivity. Now, deal and provide as much certainty for softest possible Brexit deal for the UK to we must ensure that all local authorities businesses across the UK. But if that is see a resurgence in the economy. - and not simply combined authorities impossible to achieve then I think the Simon Rawlinson, head of strategic with developed budgets and mayors - industrial strategy will be viewed as research and Insight at Arcadis, reiterates are given the means to develop their sticking a plaster over a gaping wound,” that there is “no doubt that Brexit is local strategies, to ensure no one is left said Jan. placing a big demand on government behind.” In the wake of Brexit, Jan says there and the civil service” but has applauded However, the year-long process has is a need for the government to show the decision to appoint Haldane as chair not been without bumps in the road. that it is being proactive about many of of the council. When first announced it was hoped the themes within the strategy, while He added: “There are any number an independent council would be up it’s crucial ministers strive to achieve the of suitable candidates but two aspects and running by spring to keep tabs on of the role which single out Andy government progress. But it was only in Haldane are the fact that the priority October, that the body was setup with a “Attracting investment is to increase national productivity chair to oversee it in the form of Bank of requires increased and this is something which has been England chief economist Andy Haldane. at the heart of the Bank of England’s The council comprising of 20 leaders certainty around the work since the crash, as it is vital to from business, academia and civil UK’s project pipeline increase productivity so that the growth society met for the first time earlier this rate can increase without inflation. month and the chair vowed to develop and greater engagement His understanding of underlying a workplan that would deliver “strong between government issues is critical. Also, the remit of the evaluation metrics” and a programme of industrial strategy council is to develop activity challenging critical policy. and industry will be an success measures and KPIs and Andy’s Arup’s chief economist Alex Jan important step to drive background is vital for this.” believes that while the objectives of the forward the industrial Moving forward over the next year, strategy are difficult to disagree with, the Rawlinson would like to see more deals delay in establishing the strategy council strategy’s infrastructure demonstrating that a wider range of is “reflective of governmental machinery agenda.” sector councils are engaged in the sector that has been overly preoccupied with deal process and demonstrable outcomes Brexit”. Colin Wood, chief executive of civil from the forthcoming Construction “It’s still quite early to tell if the infrastructure, EMEA, at AECOM Innovation Hub.

November/December 2018 | Infrastructure Intelligence 9 Interview Early public engagement is vital to infrastructure delivery In conversation with Andy Walker, National Infrastructure Commission chair Sir John Armitt says that the infrastructure sector needs to engage more effectively with the public to get its message across.

ational Infrastructure Sir John Armitt Commission (NIC) chair Sir John NArmitt is on record as saying that public engagement on infrastructure will be essential to the delivery of future projects. He has described this as one of the biggest challenges for the sector, but one that must be addressed. Given that the public is ultimately one of the country’s biggest investors in infrastructure - whether through taxation, pension fund investment or directly through paying to use the final product - Armitt says that the industry needs to do more to make the public aware of the challenges it faces and the potential options available for development. “The issue is how do you increase the acceptability of projects in a country where there is a guaranteed resistance are also the payers, so how come they whole of Kent in uproar, but at the end to almost any project,” said Armitt. get left out of the loop of debate and of a couple of years of going round the “There will always be a group of people consideration?” said Armitt. villages talking to everyone about the who will say “not in my back yard”, but “So, you need to involve the public impacts of the different choices, people my argument that I have been making and be much more upfront and get were keen to see a decision made and for several years to the profession is them engaged from the beginning. that made it easier for government to that if you don’t get out there and talk Once you do that then you stand more choose the route,” said Armitt. about it, explain it, be honest with chance of having a better solution and As well as early engagement, people and show them what choices one that is going to be satisfactory and openness was crucial when talking to and options you are having to deal meet people’s objectives, as well as one local people affected by development, with, ask for their input about what that is likely to garner political support Armitt said. “Project sponsors need to they would be happy with or not and because the politicians see that the take a lead. They are the people who explain to them what the impact of public are buying into this idea,” he need to get out there first and start doing nothing is, it’s not surprising that says. talking and accept that they may be you get this resistance. As long as you Armitt stressed the importance of talking not actually with a line on the have got resistance from the public, active and early engagement with local map even but actually say ‘this is our you are going to get resistance from the people, often before a route of scheme challenge, we’ve got to get from there politicians,” he said. had even been agreed. “One of the to to there but tell us what do you see as Armitt said that it was important difficult things is when do you start that being the pros and cons of the different to be clear about why infrastructure process?” he said. “High Speed 1 looked choices,’” he said. “If you are prepared development is taking place and who at 100 different options, but it looked to take people into your confidence at was going to benefit from it. “Who are at them prior and then announced that an early stage, not treat them as idiots we doing this for at the end of the day? this is going to be the route. People and ask them to get engaged, that seems We are not doing this for ourselves we criticised British Rail at the time for to me to be a much more sensible way are doing it for the public. The public announcing several different route of going about it,” he said. are the consumers, the users, they options through Kent, so we had the I asked Armitt if he thought that

10 Infrastructure Intelligence | November/December 2018 Interview Early public engagement is vital to infrastructure delivery

there and spruced them up and made them available for small business to start to go into. So, all of a sudden, this horrible housing scheme that was going to be dumped on their doorstep became a place where jobs were being made available and there was a brand-new school and so the reaction of people to that development is now a much more positive one,” Armitt explained. That public desire for consultation is only going to intensify in the age of social media and the internet and this could create a very interesting dynamic in terms of what people want to see for the future and in exercising their right to a say. I asked Armitt how he sees the growing importance of people power in the future in respect of infrastructure development. there was a connection between that “Absolutely. When I was at Costain “There’s a lot more knowledge out type of early involvement (or the lack and we did the Newbury bypass, when there these days and also let’s not of it) and taking people into the loop we finally got on site the site manager forget that much of the funding for and the reputation that the industry went out knocking on the doors of all infrastructure is the public’s money has - some of it deserved, some of it the nearest houses and said ‘can we help and it makes them the ultimate undeserved - amongst the general public you in any way’, would it be useful if we stakeholder,” he said. “Government as an uncaring sector interested only in came round and washed the windows and opinion formers are increasingly itself? on a regular basis to offset the impact recognising this too. The infrastructure the project was going to have’”. These we need to give people a better quality things made a big difference. of life is one that needs to be paid for “If you are prepared to “I was also out at a project a and people think that government has take people into your couple of weeks ago where that had the money because it has the ability to been enormous resistance to the borrow, but even when it borrows who’s confidence at an early development of the old Upper Hayford paying the interest? Who is paying for airfield site. One developer had to sell that borrowing? We are. stage, not treat them as off that opportunity in 2008 and they “We all pay at the end of the day, so idiots and ask them to had total resistance to everything they all this infrastructure belongs one way were trying to do. The guys who came or another to the general public and get engaged, that seems in immediately went out and started therefore the engagement of them as to me to be a much more talking to the people about what they the ultimate stakeholder in what we are are trying to do, why they’d bought planning to do, why we are intending sensible way of going the site and listened to what people’s to do it, what happens if we don’t do about it.” concerns were and so the first thing that it - which I think is a question that they built was a school. very often doesn’t get asked - is vitally Sir John Armitt, National Infrastructure “The next thing they did was to take important and a lot of politicians are Commission chair the old warehouses and the buildings starting to get that,” said Armitt.

November/December 2018 | Infrastructure Intelligence 11 Opinion

Urgent Six key enablers government to help deliver action is needed the UK’s to tackle UK’s industrial air quality crisis strategy

trong leadership with clear picture – and join up current ne of the five key foundations thinking and collaboration is the initiatives. Central government must of the government’s industrial Sonly way the UK is going to find take a step forward and lead efforts Ostrategy is a major upgrade to UK a solution to its air quality epidemic from the front. infrastructure, including an increase in and policymakers need to ensure But, there appears to be a lack the National Productivity Investment a planning system is implemented urgency on the subject, setting targets Fund (public spending earmarked for to deliver ambitious targets set out for well into the future rather than raising economic growth) to £31bn earlier this year, says Lucy Wood. ones achievable now. The ban on to support investments in transport, We already know that poor air the sale of all diesel and petrol cars housing and digital infrastructure up to quality contributes to respiratory announced in the Clean Air Plan 2023, says Barry Rust. problems, cancers and other very back in July, for example, will not From Tata Steel’s experience of serious illnesses. Recent studies have come into force for another 22 years. working on major projects we have shown that it can contribute to type 2 This is despite an understanding of identified six key enablers that diabetes and perhaps even contribute the detrimental impact particulate will be critical to the success of the to the onset of dementia, with further pollution is having on the health of government’s industrial strategy’s health implications likely. the population. infrastructure proposals. Currently, air quality effects from The government has tackled other new development are assessed through health issues proactively, such as the 1. Early vendor engagement and air quality assessments, which, obesity crisis. Arguably, its reactive communication when appropriate, form part of the stance to air quality will begin to A critical element in the successful Environmental Impact Assessments undermine the proactive approaches delivery of any infrastructure project is (EIA) process for developments coming to health. Initiatives such as ‘trim effective communication, specifically through the local planning system. trails’, cycle routes and public realm early vendor involvement. Aligning However, the most significant proactively tackle obesity and mental the objectives of the project, especially contributor to poor air quality is road health, but those benefits will be in the design brief, with the practical traffic and this issue rarely derives undermined if air quality is poor. The experience of the supplier at the earliest from the local level, individual issues must be tackled simultaneously opportunity can create significant buildings or schemes, but rather to be effective. benefits both in identifying cost from a macro-scale, so cannot be A national problem needs a national reductions and the agreement of mutual easily tackled at the project level. By solution. And, the solution towards outcomes. ‘macro’ we’re talking about design lower polluting infrastructure relies of infrastructure, its function and on a joined-up approach led by 2. Capacity planning connectivity, and the policies that government. Part of the communication process will govern them. be an understanding of the vendor’s For example, we can assess how Lucy Wood is environmental planning capacity to deliver in the contractor’s many motor vehicles would be director at Barton Willmore. required timeframe, especially where generated by a development and the vendor is managing several large what this would mean in terms of projects concurrently. This can be a air quality through project-level particular issue for smaller suppliers assessment. But it can’t tell us so To effectively address and reinforces the message that early easily how mitigation might affect air quality issues head vendor involvement allows for effective levels of pollution and give the planning and delivery as part of the confidence that the air we breathe on and achieve the project’s overall success. would not be damaging even with the NIA’s target, we need mitigation in place. 3. Stick to the brief To effectively address air quality strong leadership with Another critical element in ensuring the issues head on and achieve the NIA’s clear direction and an end results meet the original brief will target, we need strong leadership be to ensure the specifications set by the with clear direction and an energetic energetic plan that is project owner at the start are adhered to plan that is capable of delivering truly capable of delivering throughout the supply chain. If carried sustainable and healthy infrastructure. out as stated by the government, the This can only be achieved by looking truly sustainable and industrial strategy has the potential to at the macro-scale – the national healthy infrastructure. spearhead the UK’s economic growth

12 Infrastructure Intelligence | November/December 2018 Opinion

Post-Brexit immigration system must allow industry to thrive

well into the mid-21st century. This is he latest Migration Advisory MAC report to support such a change in too big an opportunity to ‘fudge’. Cost Committee (MAC) report on the immigration policy from an economic engineering to deliver a project that Teconomic and social impacts of perspective. There is nothing to suggest approximately fits the original plan the UK’s exit from the EU envisages that low-skilled migration is detrimental cannot therefore be accepted. that from the end of 2020, European to the UK’s economy. Economic Area (EEA) and non-EEA With 14% of construction workers in 4. Innovation immigration would be managed under the UK from the EU and in London this The industrial strategy will demand the same set of immigration rules, increasing to one third, these workers innovation from suppliers in the although of course such a transition have played a very significant role in delivery of products and services. For period is dependent on a no hard Brexit mitigating the severe skills shortages example, to avoid congestion issues and in March 2019, says Edward Goodwyn. the industry has experienced in recent on-site waste, some of the country’s It recommends that the Tier 2 cap years. largest infrastructure projects, such as on current skilled migrants should be The construction industry is aware Heathrow, are planning the creation abolished and that the Resident Labour that it needs to do more to recruit of supply chain logistics hubs with Market Test should either be removed and train domestic workers. Until a products assembled into component or reduced in scope, which would have time where apprenticeship schemes parts, at a distance from their final pleased many employers. are able to provide local available destination, so they can be installed However, the MAC does not skills, many in the sector are calling more efficiently on site. Suppliers may recommend the introduction of any on the immigration route to supply have to abandon traditional business sector-specific work-related schemes for the shortfall in the immediate term. models in favour of more collaboration lower-skilled workers, with the possible However, this will take time and in the and adaptability for the greater good of exception of a seasonal agricultural interim, migrant workers have, and the overall project. workers scheme. It also suggests that will continue to play, an important part those in low-skilled roles will need to and so it is essential that the post-Brexit 5. Sustainable solutions be paid £30,000 a year as well as their immigration system allows the industry Innovation will also be required in the employer having to pay full immigration to thrive. sustainability of materials to be used fees, including the immigration skills What is important for employers to with the intention of further reducing charge. Should the government choose be aware of is that under the current lifecycle costs and delivering more to introduce a low-skilled immigration proposals, any EU nationals who arrive circular economic solutions. Tata Steel route, the report advises that this up until the end of December 2020 will has developed a number of product should instead be based on an extended be able to register for “settled status”, solutions from energy-generating steel youth mobility scheme. which means they can stay living and facades in construction to weathering, The MAC report was not well working in the UK regardless of Brexit. maintenance-free steel that significantly received by the construction industry, As a result of this, we may start seeing reduces corrosion potential and will with the Federation of Master Builders some firms increasing their recruitment generate clear benefits in terms of saying that its recommendations “would drives before this period. reducing maintenance during the cripple the construction industry” project lifetime and therefore enhance and that MAC has ignored the pleas of Edward Goodwyn is employment partner at cost optimisation. construction employers who have called the international law firm Pinsent Masons. on the government to introduce a visa 6. Enhanced and improved system based on key occupations rather digitalisation than arbitrary skill levels. Innovation through the improved and MAC also announced that The MAC report was increased use of digitalisation across immigration for higher-skilled not well received by the the board to collate and deliver data workers should be less restrictive than at speed can improve processes and for lower-skilled workers and that construction industry, enhance communication. The drive this “aligns with the government’s with the Federation of towards greater digitalisation will industrial strategy”. Yet, this is in effectively underpin the above enablers contrast to the government’s long-stated Master Builders saying and the delivery of the strategy. commitment to invest in construction that its recommendations and infrastructure. It’s also important Barry Rust is marketing manager energy and to note that there doesn’t seem to be “would cripple the sustainability at Tata Steel. anything in terms of evidence in the construction industry”.

November/December 2018 | Infrastructure Intelligence 13 International infrastructure Transforming Russia into a global rail leader On one of their rare to control the country’s rail network but to expand east-west, north-south visits to the UK, transport corridors which could unlock Ryan Tute met with a opportunities for Russia to become more of a global economic player. member of Russian Domestically RZD is seeing a spike in passengers with services proving Railway’s board to to be as popular as ever. The latest discuss expansion plans, figures published show the company transported 101.5 million passengers productivity and why during October - an increase of 3.2% over the same month last year. Meanwhile, nationalisation of the passenger turnover in October 2018 network is beneficial. increased by 3.6% compared to the October 2017. s UK rail firms continue to A total of 961.9 million passengers try repair the damage from a travelled on the network during January of Russia’s railways is the growth Asummer of misery that saw to October 2018, which was up by 3.1% in productivity levels which the widespread delays and cancellations, compared to the same ten-month period organisation can boast. As the UK the picture in Russia is somewhat in 2017. Long-distance passengers strives to solve the puzzle and boost different with the firm responsible for were up by 8.3% to 94 million, while levels across the country, the RZD boss maintaining and running trains along suburban passenger numbers rose to paints a simple picture behind the 6.5% 85,500km of railway able to boast 867.9 million, an increase of 2.5%. increase in productivity growth for the transporting more than one million The transformational changes being first half of 2018, compared to the first passengers in just one month. seen in eastern Europe are helped of last year. Russian Railways (RZD) is one of the by what is in no doubt a long-term “Keeping happy 900,000 workers is country’s largest companies and is a plan. It was back in June 2008, when not easy but we have a very strong trade fully state-owned organisation which the government provided a much- union that we liaise with,” Mikhaylov manages both infrastructure and needed injection into rail reform with said. “It’s a very simple message for operating freight and passenger train the ratification of the Strategy for people that work for Russian Railways, services. Despite the huge operation Developing Rail Transport in the Russian if you increase productivity then we undertaken within Russia, the firm has Federation up to 2030. will pay you more. It’s very clear to big plans for expansion across several A hugely ambitious modernisation staff, they understand that they will European countries. plan was mapped out for the coming go home with extra cash in hand. The While visiting the UK, Infrastructure decades with a “maximum” vision of development of Russia’s high-speed rail Intelligence spoke to Vadim Mikhaylov, a constructing up to 20,000km of new services is central to its modernisation leading figure within Russian Railways. routes, the upgrade of 13,800km of of passenger lines, so we have to make He is the first deputy chief executive of freight lines and the purchase of 23,300 sure staff feel valued,” he said. an organisation which not only aspires modern locomotives. On the debate of nationalisation, Central to the fast track development Mikhaylov believes competition and free market of the railways “simply would “It’s a very simple not work” in a country the size of Russia message for people and believes it can only work in the UK when geographical boundaries don’t that work for Russian overlap as this can lead to disruptions Railways, if you increase in the service which UK passengers have seen for themselves all too often productivity then we will in 2018. Following the end of the Soviet pay you more.” Union in 1991, Russia was faced Vadim Mikhaylov, deputy chief executive, with the prospect of overhauling Russian Railways its infrastructure and needed a plan

14 Infrastructure Intelligence | November/December 2018 International infrastructure Transforming Russia into a global

sector is able to flourish in Russia. take goods and passengers through six “We are able to further increase countries including China, Kazakhstan, the efficiency of transit transport by Russia, Belarus, Poland and Germany. rail leader eliminating bureaucratic barriers and Commenting on the project, introducing electronic technologies,” Mikhaylov said: “Once implemented it he added. “Today RZD can deliver goods is expected to be the largest network from the Russian eastern border to of high-speed and higher-speed rail, its western border in seven days and with the length of more than 50 000 plan to shorten the delivery time. In km, as it unifies the transport systems 2015, JSC Russian Railways updated its Asia, Russia and the European Union. program for high-speed and higher- In 2017, a preliminary feasibility study speed rail services in Russia. Twenty of the project was prepared, confirming projects are planned, each of which is its great significance for all potential operationally profitable.” participants, first and foremost, for One such example which identifies Russia. how the organisation is enjoying “One of Russia’s highest profitable times is the World Cup in transport priorities is the creation of the summer which on paper presented effective, safe and reliable overland massive challenges for the country’s international corridors to increase infrastructure network. the competitiveness of the country’s Finances boasted by the firm transport network. We plan to create of action within the new political allowed the organisation to take the a logistical network that will allow landscape. The Structural Railway unprecedented move whereby visiting ‘through’ freight services between Reform Programme, approved by the football fans were offered free rail Europe and Asia.” Russian Federation in 2001, led to 100% travel. This meant 319,000 fans from There is little doubt that rail remains of railway assets becoming state-owned. across the world benefitted from free Russia’s most important piece of the On the objectives of reform, the tickets on the 75 additional trains laid country’s jigsaw puzzle with over 45% of RZD executive said: “It was important on for them. freight and more than 25% of passenger we built up a well-balanced transport RZD said the trains provided facilities traffic shifted by trains. So, moving system in the country, met the growing for passengers with reduced mobility, forward, Mikhaylov is under no illusion demand for rail transport services and air-conditioning and power sockets. how big a role digitalisation plays in ensured the reliability, accessibility More than 2,300 onboard crew members development. and safety of rail transport. Structural and 4,000 station staff received special “Collecting big data is vital,” he said. transformations in the passenger training ahead of the tournament. The “We want to understand passenger railway sector have meant we have busiest day was 24 June when 45 special movements better, so we are using data setup 25 suburban passenger companies trains were operated used by 26,000 from when people buy tickets to see (SPCs) that provide passenger transport fans. what journeys they make and when services linking city centres with outer But despite the vast network they make them to inform decisions. suburbs, commuter towns and other that needs constant monitoring and Digitalisation also means convenience suburban residential areas.” maintenance, bosses are plotting and for our customers, so a large number of But as the Russian Railway boss made pushing ahead with big plans to extend digital services have been introduced reference to yet another negative rail into more regions. A large-scale Eurasia lately. We have plans over the next four story on the front page of a UK national project is one example which would see years for our whole railway system to newspaper, Mikhaylov identified more the construction of a cargo–passenger be converted to digital technology,” said reasons why under state ownership, the high-speed railway transport corridor to Mikhaylov.

November/December 2018 | Infrastructure Intelligence 15 Major project The Crossrail 2 conundrum: How will the £30bn scheme be paid for? Crossrail 2’s managing director Michèle Dix sits down with Ryan Tute to provide an update on progress, how it can be more affordable and lessons to learn from the Elizabeth line.

hile the managing director of Michèle Dix Crossrail 2 could not be more Wconfident of the business case for the major rail project and the benefits it will provide for the UK, Michèle Dix admits it “still needs to be more affordable”. The scheme is still in its very early stages with nothing finalised or granted permission but initial indications suggest a hybrid bill could be submitted to parliament by 2021 and all being well construction could finish in the early 2030s but the latter is a very loose date. As proposals for funding and even a final route continue to be deliberated, the preceding Crossrail 1 is in the final stages. However, it’s inevitable that those behind Crossrail 2 will be under much more scrutiny this time and 200,000 jobs across London and the Having submitted a revised business around due to problems that have been south east once operational. case in 2017 to the government, Dix reported elsewhere this year. “It’s a scheme of regional significance says they were told while the project Not only has Crossrail seen costs and also national importance, provided a compelling strategic case, skyrocket £600m over budget but its particularly from a productivity angle,” ministers wanted those behind the rail former boss Simon Wright was forced she said. “It’s not just a London scheme, network to once again explore how it to delay its opening by at least an extra it’s got a lot of cross-party support in can be more affordable. nine months until autumn 2019. London and beyond because of the role But despite issues with Crossrail, Dix it plays for the wider economy.” is adamant that Crossrail 2 is in “a good While the Elizabeth line runs place”. The managing director reiterated east to west, Crossrail 2 why the scheme has a very good will predominantly business case, by the fact it will generate run north to south, 200,000 new jobs, add £150bn to the UK connecting London to economy and most importantly support its outer surroundings the development of 200,000 new homes. with the two lines Furthermore, the line could bring intersecting at Tottenham about 60,000 new jobs across the UK Court Road. Its construction would supply chain while under construction provide extra transport capacity needed to accommodate population growth in the capital and the wider south east while projected to reduce overcrowding “The question is can we at no less than 17 underground stations. make further savings and But the Crossrail 2 boss concedes The original affordability challenge the main challenge moving forward laid out by the former chancellor deliver it cheaper than we is ensuring it is affordable and George Osborne supported the £30bn costed for.” acknowledges “£30bn is a big number”. project as long as London paid half

16 Infrastructure Intelligence | November/December 2018 Major project

oversite development opportunities.” need for it, Dix points to the National Another method mentioned to fund Infrastructure Commission’s National the project which has attracted Infrastructure Assessment which attention is exploring was published in July that reaffirmed whether all people Crossrail 2 is one of the top schemes who directly benefit for investment in infrastructure. from Crossrail 2 should Dix said: “Based on the remit given contribute. The idea relates by the Treasury that 1.2% of GDP could to a report published by be spent on infrastructure then the TfL in February 2017 on NIC concluded that not only Crossrail 2 land value capture - a way could be afforded but crucially HS2 and of monetising the increase Northern Powerhouse rail networks in land values that large could be built to meet demands of the infrastructure projects can future. The document in the summer bring. reconfirmed its importance after “There are other previously listing Crossrail 2 in its beneficiaries who aren’t being top 12 infrastructure projects for the asked for contributions, Dix UK. Getting that endorsement is very added. “So, TfL has asked important.” whether we could seek The project boss is also satisfied that ways for people to make lessons can be learnt from Crossrail 1 a contribution and that and the transfer of knowledge from one is largely in the form of scheme to another will be invaluable in property owners. When ensuring targets are met and obstacles big infrastructure projects are are overcome. built, the properties in the vicinity “We have been talking to Crossrail go up in value and you have seen since day one,” the managing director that with Crossrail 1. While owners said. “Many of the people who have benefit, the railway doesn’t so it’s come on board here have been on a question of exploring that Crossrail as we believe it’s the best way relationship and seeing if any to capture experience and expertise. benefit can be captured to help pay for We have regular discussions with the costs.” colleagues about lessons that can be The former Transport for London learnt. Crossrail 1 have been really planner also revealed how achieving good with sharing knowledge and the savings could play a pivotal role in its day-to-day liaison has been great for success by attempting to reduce costs asking what can we do on Crossrail 2 through value engineering – not by that you in hindsight would have done minimising its scope but identifying if you had the chance to do this again.” ways to deliver the infrastructure more The British civil engineer has cheaply. had an extensive career in transport “The question is can we make planning and engineering within the further savings and deliver it cheaper capital. After spending 15 years at the than we costed for?” she added. “There engineering consultancy Halcrow (now is a lot of benchmarking work ongoing Jacobs), she joined TfL as co-director comparing to what other schemes for congestion planning and later may cost so we can understand what is became managing director for planning realistic for us to assume at this stage London’s future transport needs. She for potential savings going forward, was also named as one of the Top 50 particularly when it comes to the Influential Women in Engineering two but planners were forced to delivery of it as opposed to the amount years ago. check funding possibilities of concrete required.” Commenting on the state of once again after the transport But in relation to highlighting the London’s transport network today secretary Chris Grayling asked and how it’s changed, Dix said: to see whether they could pay half “It’s certainly evolved. I think it’s up front meaning some revenue “It’s not just a London been a slow evolution, rather than a streams would not be utilised. revolution. I think one of the things “There are a number of things scheme, it’s got a lot that has been critical in the evolution we have looked at in terms of making of cross-party support has been transport playing a role in it more affordable,” Dix said. “One is enabling development. The fact that whether you can deliver it in phases in London and beyond the London Plan and the mayor’s so we could reduce pressure on us in because of the role transport strategy are developed terms of paying half up front. If you together means there is a far greater phased construction then you could at it plays for the wider synergy between land use and least collect fares and take advantage of economy.” transport development.”

November/December 2018 | Infrastructure Intelligence 17 Community Infrastructure Levy

Councils sitting on £443m as local infrastructure suffers

Millions of pounds earmarked for local infrastructure improvements remains unspent by local authorities, writes James Ketchell.

ew analysis by the Association for Consultancy and Engineering N(ACE) reveals that two fifths (40%) of the receipts from a levy on property developers meant for local infrastructure improvements remains unspent by councils in England and Total collected: Total unspent: As a percentage of Cities Wales. 2014 – July 2018 2014 – July 2018 total collected: The Community Infrastructure Birmingham £1,630,600.74 £1,630,600.74 100% Levy (CIL) was introduced in 2010 to help local councils secure the revenue Bristol £10,991,087.45 £5,229,212.01 48% needed to meet the impact of new Newcastle £309,845.00 £309,845.00 100% property developments, for example improving local transport links or Oxford £5,721,119.00 £3,161,795.00 55% helping to build new schools or GP surgeries. Plymouth £9,104,045.43 £10,443,827.14 114% Freedom of information requests Southampton £11,312,621.09 £3,502,669.00 31% undertaken by ACE show that despite raising more than £1.1bn for councils of the levy as a means of fairly raising • Retains Section 106 as a means of across England and Wales between money for supporting infrastructure mitigating specific development 2014 and July 2018, £443m remains is failing. The government needs to issues; unspent and is currently sitting in address this imbalance and put in • Reassesses how the CIL is council bank accounts. ACE’s research place a system which is simple and implemented and charged at an also shows that across the board, take- transparent. At the moment the system authority and local level; up of the levy remains poor, with only is failing old and new residents alike.” • Issues guidance over best practice for 43% of councils in England and Wales ACE’s investigations revealed that CIL spending including developing a (148 out of 348) choosing to implement local authorities across England and transparent pipeline of work; and it. Wales fail to collect the levels of CIL • Starts charging a new property sales A new ACE report, Scrapping the Levy, that was anticipated when the levy levy to replace the CIL over the also highlights a number of regional was first introduced and that councils medium to long term. disparities. More than half (56%) of were also holding back a significant unspent CIL is with councils in Greater portion of the overall levy that was “The effective delivery of infrastructure London, while Birmingham and collected. The reasons for this may vary is dependent on close collaboration with Newcastle have, to date, not spent any but the impact and potential dangers local authorities, in conjunction with the of the collected levy. of this are easy to see, say ACE. Failing appropriate financial backing to provide Commenting on the findings, ACE to spend sufficiently on infrastructure what is best for them and for the broader chief executive, Hannah Vickers, said: in a smooth and consistent way can society,” said Vickers. “The success of “While councils are deciding not to have costly and potentially dangerous infrastructure delivery on a local level is, implement the levy, or sitting on consequences claims the report. in part, dependent on the effectiveness the funds raised, local infrastructure The report makes it clear that of the Community Infrastructure Levy; is bearing the brunt of increased issues with the implementation and ensuring it is working to strain whenever new homes or retail collection of the CIL have prevented its maximum potential is developments are green-lit. This means local infrastructure needs being in the interests of all,” more cars on our local roads, more met and without intervention, local Vickers said. pupils in our crowded schools and infrastructure spending will continue longer waiting lists at the GP. Given the to fall below the level required to You can download the current financial demands on councils deliver positive outcomes for local Scrapping the Levy report this is surprising state of affairs. residents. To counter this, ACE at http://tiny.cc/epbm0y “It’s clear that the original intention recommends that the UK government:

18 Infrastructure Intelligence | November/December 2018 Late payment

Tackling the late Roundtable participants: ∙∙ Andrew Croft, senior associate, Beale & Co ∙∙ Kevin Crawford, vice president payment problem technical, Chartered Institute of Architectural Technologists ∙∙ Diane Dale, practice and Suspension notices and automatic interest technical director, Chartered Institute of Architectural charges need to become the norm for those Technologists who consistently refuse to pay on time, a recent ∙∙ Indu Ramaswamy, director at Allies and Morrison and member roundtable discussion found. Ryan Tute reports. of RIBA Insurance Agency Board ∙∙ Nick Hopcraft, chair, procurement and delivery panel, Chartered Institution of Highways and Transportation ∙∙ Ian Wright, Network Rail ∙∙ Rowan Crowley, managing director, CIBSE Services ∙∙ Mark Hurst, GHD ∙∙ Tim Findlay, Hoare Lea ∙∙ Philip Glowinski, TGZ Partnership ∙∙ Neil Sandberg, Sandberg

ith nearly a quarter of UK 90 days, now this client gives us a everything shouldn’t be electronic,” businesses reporting that late programme of work and at day 90 rest one director told the room. “Not only Wpayments are a threat to their assured it’s there so once you’ve going is it more traceable but it adds to survival, the industry’s worst kept secret through the initial pain, you know it’s delays. I had a letter from a major UK of a problem which has stifled firms there. So, the commercial aspect is that housebuilder last summer that said they across the UK has become mainstream it’s a good client and it’s an agreed time are going fully electronic, but it is still knowledge in 2018. so you just have to get over the initial yet to happen,” he said. But what measures can be hump.” As the room continued to deliberate implemented to stem the decline - and But it was agreed by the room that the over solutions, one of the biggest the demise of those particularly affected? two issues at the crux of the issue were differences discussed that could be What are reasonable payment terms? And setting payment terms and then having implemented to curb late payments what can be done to improve payment the terms stuck to. It was noted within was the idea of automatic interest periods? the discussion by one director that three being charged, regardless of if it was These are all questions that the or four contractors employed by his firm the mistake of one person in the chain. latest Association of Consultancy and had been threatened with legal action One participant said: “For me, it comes Engineering (ACE) liability and payment due to repeated refusal to pay on time. down to how can we incentivise firms issues group attempted to answer during However, the threat of legal action to pay on time? Whether it’s payment a recent roundtable event, hosted by law or a suspension notice was highlighted in five, 30, or 45 days, it doesn’t matter; firm Beale & Co in their London offices. as being potentially detrimental to it’s about sticking to the agreed upon Chatham House rules were in place, companies, particularly smaller firms contract.” so this report can only give a flavour of who know they can’t threaten the loss It was argued that real action the topics put under the spotlight during of work from a client moving forward was needed but despite the industry the main debate but a full list of the or cannot afford the time/expenses acknowledging the need for change, participants who took part is posted at the associated with taking such action. since the start of the year that saw the bottom of the article. “Although there is a lot of us about, fall of the former construction giant Potential solutions to the late it’s a very small industry, extremely Carillion, “Fundamentally things haven’t payment issue were presented and small, so it’s very rare we will go down changed much,” said one consultant. discussed as was what action was that road,” one company’s boss told the “You are not going to change anything needed immediately. The roundtable roundtable. until you change the house contract,” was opened by a real-life client situation The use of electronic payments as another participant claimed. “Until that emphasised the vital importance a mandatory requirement was also collectively it becomes normal to charge of having agreed upon limits that were mentioned. Major UK clients were interest and issue suspension notices and adhered to. highlighted that still refuse to pay you are not the exception, you are the Speaking to the room, a participant electronically and insist on paying rule so the paymasters out there can’t said: “We have a client that pays on by cheque. “There’s no reason why discriminate against you.”

November/December 2018 | Infrastructure Intelligence 19 Driverless cars Race to revolutionise roads accelerates as testing concludes As a three-year project comes to a close, Ryan Tute went for a spin in an autonomous vehicle through the streets of Milton Keynes to see how far testing has come.

s the global race to get the progress accelerate over the three years there’s also large sections that would first driverless car on the road and believes the consortium has made get in an autonomous car tomorrow and Acontinues and despite huge sufficient progress. drive away because it’s a cool new gadget strides being made, the director of the “We have done exactly what we in their eyes,” said Armitage. ‘world’s first’ tests involving more than said we would deliver when we started However, in respect to how close the one connected and autonomous vehicle out on this journey,” Armitage said. UK is to seeing fully autonomous cars still believes the country is a “long, long “Considering it’s absolutely a research driving anywhere in the UK without way away” from seeing fully autonomous and development project, I think we and restriction, then the Arup boss thinks vehicles having the freedom of UK roads. the stakeholders have done really well to government and enthusiasts need to This won’t be welcome news for achieve the things we have. A lot of effort rethink expectations. the government after the chancellor has gone into where we are today. What Armitage said: “I think we will see Philip Hammond in 2017 vowed to we have done technically so far is show driverless pod-type systems in relatively ensure “genuine driverless vehicles” on that connected and autonomous vehicles controlled environments along with level Britain’s roads by 2021. What Hammond will work,” he said. four autonomous vehicles within cities specifically meant by this is up for but geographically limited and possibly discussion but questions about the Public perception on motorways. But what I don’t see is us possibilities continue. The man leading the trials for Arup says being close to is level five vehicles which In a bid to find answers and explore the next challenge for the industry is can go anywhere as what the project the technology, an Arup-led consortium switching its focus on “socialising the has reinforced to us is how different and has just brought the curtain down on technologies” and addressing public complex they are. three years of testing. The consortium perception after having done a lot of “We have vehicles that quite included local authorities, technology public attitude work asking questions comfortably drive round Milton Keynes and automotive businesses and academic about autonomy with not many people and Coventry but take them to Sheffield institutions. Each party has not only having any experience. and a tram comes down the middle of developed new technologies, but also “Trust is a big thing, it goes hand in the road then they wouldn’t know what explored the wider legal, insurance, hand with safety,” Armitage explains. to do. There is such a variety of places data protection and public acceptance “The results from our public attitude that level five is a long, long way away,” implications that impact on the adoption surveys show that people are very open- he said. of connected and autonomous vehicles. minded to the technology certainly both here in the UK and in USA which is great Journey of the future Research and Development news. Of course there are always those The final day of testing also allowed Tim Armitage, Arup’s UK Autodrive that are a bit technophobic and don’t people to see how the first and last project director, has been at the centre of like the idea of not being in control, mile of the journey of the future could the engineering and consultancy firm’s which is understandable with where we be done via driverless pods that could testing from day one. He has seen the are with technology development, but eventually do up to 120km of journeys

20 Infrastructure Intelligence | November/December 2018 Driverless cars Race to revolutionise roads accelerates as testing concludes

every day. Manufacturing specialist Aurrigo, which has invested in the My driverless journey technology, has developed the pods to allow up to four people, travel at 15mph and cover up to 60 miles on one charge Clambering into the back of the The drive itself is still rather clunky as to their final destination. Jaguar Land Rover, I wasn’t sure the braking still needs work and the Miles Garner, sales and marketing what to expect for my first time in technology remains over-cautious at director at Aurrigo, believes the potential a driverless vehicle. roundabouts and junctions, which given is huge and the firm is targeting a the risks is completely understandable. “£900m opportunity” after projecting The drive started quite smoothly a substantial increase in turnover that as the car steadily made its way But overall, I never felt in danger even in could run to tens of millions over the down a busy dual carriageway but rush-hour traffic when the risks escalate. next three years. the novelty of seeing the wheel The ride isn’t the smoothest yet, but Garner said: “The trials in Milton turn itself and kick itself into gear the basics have been put in place. If and Keynes have proved we have advanced does not wear off throughout the when they become the norm on UK roads autonomous technology that works in a journey. however is another question. live public environment and pods that can provide that crucial first and last mile transport solution for towns and describes the event as “dreadful” for the standards required by them will be cities throughout the world. We need to the person and everyone involved and far higher than those in the manual car take advantage of being first to market concedes it can be damaging for the market. and we are already in discussions with a brand and Uber especially who have now Armitage said: “As a society we are number of potential customers to take all but exited from the technology. tolerant of killing five people every day our pods for use on university campuses, He said: “We need to be very careful on the roads of the UK and seem to find theme parks, shopping malls and and you cannot afford to take risks on that an acceptable level, but it wouldn’t retirement villages.” the road, which is why for our trials all be for an autonomous vehicle and the of the systems have been tested before standards will be much higher on this Reputational damage we get on roads and super vigilant with side. However, the overall advantage Testing outside of UK Autodrive has highly-qualified drivers. Any accident of the technology will save lives and it not been without its problems though. will set back a programme and I think is already. Insurers can see that highly- Earlier in the year, the industry was we have worked very hard to ensure we autonomous systems like autonomous shook after the death of a 49-year-old won’t have any accidents.” emergency braking, which stop vehicles woman in Arizona who was hit by an In addition to this he believes any driving into back of others, are reducing autonomous Uber while wheeling her companies entering the automation accident and whiplash claims, so the bike across the road. Armitage obviously market will have to be fully aware that benefits are there to see.”

November/December 2018 | Infrastructure Intelligence 21 Infrastructure and society Infrastructure can and must deliver inclusive growth Engineers must ensure that social inclusion is at the front of their minds when planning projects to ensure that those projects make a real difference, writes Keith Howells.

ith increasing importance attached to the social Woutcomes of infrastructure projects, it’s an exciting time to be an engineer committed to making a difference to people’s lives. When planning infrastructure projects, we talk about the three pillars of sustainability - economic, environmental and social - yet the social element has perhaps been the poor relation. I believe that’s now changing. The links between economic growth and social development are well known, albeit there are many issues to resolve, not least inequality. We know that inequality breeds insecurity and that poses a fundamental risk to society. At the extremes, it provokes conflict between the ‘haves’ and the ‘have nots’ to remember that most, if not all, of reduction through education, health which can manifest itself in many ways, what we do is about improving people’s care, economic development and gender from crime to civil disobedience, and lives, whether that’s providing safer equality. In 2015, the United Nations even war. And it’s clear that the world water, reliable electricity, a better living passed legislation on the 17 Sustainable is a more insecure place when large environment, education opportunities, Development Goals (SDGs) to provide segments of society are left behind in the healthcare facilities, or even a faster a framework for global development absolute pursuit of economic growth. and safer commute to work. But most applicable to both developing and The link between environmental of what we do also has the potential to developed nations. sustainability and social outcomes is also affect people’s lives in adverse ways, They’re aimed at forging a path becoming more critical when you think unless we offer solutions that eliminate towards a fairer and more just about the importance of maintaining or mitigate those risks. society and seven of the 17 goals an environment in which we can enjoy reference equality and inclusion. Goal healthy and prosperous lives. Climate Social inclusion 10 specifically addresses reducing change, air pollution, water quality, There’s no doubt that social inclusion is inequality, both within and among marine pollution, ecosystem fragility firmly on many of our clients’ agendas. I countries. Goals 6, 7, 9 and 12 address and species loss, all impact on our health think I’ve heard more clients talk about water, energy, infrastructure and cities. and wellbeing and therefore on society outcomes in the last 18 months than I’ve So, it’s clear that what we do has the at large. heard in my entire lifetime. Crossrail, for potential to directly support many of the The mass migrations we’re seeing example, will tell you that the Elizabeth goals and indirectly, most of them. In the across the world are not just the result Line is not about building 100km of UK, the government has committed to of conflict or economic mismanagement, railway; it’s about moving more people meeting the SDGs, and has specifically but also of environmental degradation, through London faster. That’s an called on infrastructure developers to making the struggle to survive harder, outcome. keep inclusion and equality in clear and fuelling the desire of people living at Social inclusion has been an aim of focus. the margins to seek a better life. the international funding institutions for There’s thus a growing requirement We as infrastructure engineers need many years, with a clear focus on poverty for the development of new

22 Infrastructure Intelligence | November/December 2018 Infrastructure and society

infrastructure to consider local impact development - building the communities the incomers. and engagement with communities, of tomorrow - what’s becoming clear is The second was health: with the so that the long-term benefits of the that both developers and engineers have incomers from the highlands having investment can be fully realised. an obligation to provide solutions that are almost no natural resistance to malaria, more inclusive, address inequalities and which was endemic in the lowlands, Better outcomes do not impact negatively on communities. resulting in much illness and many We know that infrastructure is a strong Putting social inclusion, alongside fatalities. A salutary lesson which, to underpinning driver for economic growth environmental impact, at the heart this day, sits on my conscience, even and development. We know it helps of project planning will deliver better though I had nothing to do with the to stimulate employment. We know outcomes for clients and end users. concept or the project planning. it has the power to connect and unite communities. It can help resolve many of Unforeseen consequences Inclusive growth the challenges we face as a society. If we don’t think these issues through, For a long time, the global focus has Planned and delivered with thought, I know from my own experience what been on economic growth as the it can provide better outcomes that are can happen. Around 35 years ago, at the measure of success, sometimes at all environmentally sensitive and socially start of my engineering career, I worked costs. We’re now entering a phase of inclusive. If we look at infrastructure as a on a project in Africa which had the aim development thinking, as captured by platform for economic growth and social of providing irrigated agricultural land the SDGs, where the focus is shifting to to poor, landless people from another inclusive growth. Engineers will need part of the country. The resettled people to examine who will benefit from a would also be provided with housing, project, how communities engage with clean water, schools, clinics and other the project from conception, and how amenities. marginalised groups can be supported. The aim was noble but the land being By ensuring social inclusion is at the offered was in lowland areas, while front of our minds when we develop the people being resettled were mostly our thinking and plan projects, we from highland areas. There were two can make a real difference to project negative social consequences that were outcomes. not foreseen. The first was conflict: with indigenous people in the lowland areas Keith Howells is group chairman of Mott resenting what was being provided for MacDonald.

November/December 2018 | Infrastructure Intelligence 23 Green economy

new relationships with industry and commerce to address global challenges, New partnership ultimately benefiting the environment and the economy. The two will have to go hand-in-hand if we are find ways to keep temperature increases below 1.5 to drive clean degrees,” Pickard said. EIC director Matthew Farrow said: “The UK has some world-class strengths in environmental technology and economic growth services and we need to build on these to deliver the clean growth and exports we all want to see post-Brexit. Innovation The Centre for Global Eco Innovation and the is central to doing this. How can we Environmental Industries Commission have teamed solve environmental challenges such as air pollution or plastic waste faster and up to support green businesses, writes Andy Walker. more efficiently? To succeed we need business, policymakers and universities ancaster University has teamed up working together and by partnering with the Environmental Industries with Lancaster University with its eco- LCommission (EIC) to support innovation strengths we believe we can innovation and grow business which help make this happen.” reduces carbon emissions and delivers Claire Perry, minister for energy and clean growth. clean growth, said: “The UK has led The partnership between the the world in cutting emissions whilst two organisations will support growing our economy, with clean businesses which are working on ideas, growth driving incredible innovation developments and innovations which and creating hundreds of thousands could cut energy use and waste. of high-quality jobs. Ten years on from The recent Intergovernmental Panel the Climate Change Act, is a time to on Climate Change (IPCC) special build on our successes and explain the report on global warming highlights huge opportunities for business and the urgent need to develop new young people of a cleaner economy. technologies and approaches that will I’m delighted to see how many more help limit temperature rises to 1.5 businesses and organisations such as degrees. According to EIC, “the global Lancaster University are seizing this move to cleaner economic growth, multi-billion-pound opportunity to through low carbon technologies and energize their communities to tackle the the more efficient use of resources, very serious threat of climate change.” is also one of the greatest industrial The Lancaster Environment Centre opportunities of our time”. As well as (LEC) represents one of the world’s being central to the IPCC report, clean largest centres for environmental growth is also at the heart of both the research offering balanced perspectives UK Clean Growth Strategy, and the on complex societal challenges. LEC industrial strategy. hosts the Centre for Global Eco- The Lancaster University-based Innovation, an award-winning centre Centre for Global Eco innovation which delivers high quality business-led and the Environmental Industries research, through enabling enterprises Commission hope that their partnership to access the expertise, resources and will maximise these opportunities for global contacts of Lancaster University business. Dr Andy Pickard said Lancaster and its national and international University had been working for many partners. years to enable innovation which is The UK has some The Centre is “solution focused” better for both the environment and for world-class strengths rather than “technology driven” the economy. enabling it to offer a range of “We have a strong track record of in environmental multidisciplinary solutions, each working with businesses on innovations technology and services based upon collaboration between the from new energy technologies to universities, their researchers, and the improving food security,” said Pickard. and we need to build on business community. “This could mean finding new ways of these to deliver the clean The university and EIC are committed using existing resources more efficiently to working together to maximise low or reducing waste and carbon emissions. growth and exports we all carbon innovation opportunities for This partnership also enables us to want to see post-Brexit. business. Opportunities over the next 24 work closely with business to inform months include joint workshops, case government policy. It will help develop EIC director, Matthew Farrow studies and position papers.

24 Infrastructure Intelligence | November/December 2018 In the latest Infrastructure Intelligence Think Tank article, David Barwell, chief executive, UK & Ireland for AECOM, says that the industry has a key role to play in making UK infrastructure an attractive investment opportunity. Industry has key role in promoting infrastructure investment hen I was a young boy, I domestic, searching for a home. Yet Equally important is the need to remember the excitement despite infrastructure being critical to create innovative financing structures Wsurrounding new the growth and economic health of any and institutions. The need for new ways infrastructure, with regular news coverage country, the Organisation for Economic to mobilise private capital is even more of the Queen, dignitaries or famous Co-operation and Development estimates pressing as Britain prepares to leave the actresses and actors cutting ribbons at that only a tiny percentage of this European Union. The EU’s European new airports, bridges, motorways and cash, just 1.6%, is invested in global Investment Bank has worked for decades ports. With a construction boom for new infrastructure. to bring private capital into infrastructure infrastructure, projects were bold, even If government is to attract private projects, but the UK’s membership of the a bit glamorous, and they were certainly investment, it needs to turn visions for bank could end post-Brexit. Despite the about improving quality of life. new infrastructure into action. Indeed, complications of doing so, a dedicated UK In the intervening decades, society there are a number of things that can be infrastructure finance institution needs to has become accustomed to the networks done to bridge the UK’s infrastructure be created if this happens. and services that fuel modern life. We’ve investment gap and help secure finance Political bias is an issue that has taken infrastructure for granted. Yet we for new projects. stunted the growth of the sector for still need improved airports, more and Firstly, the UK must vigorously decades. Moving big projects outside the faster trains, better water systems, clean promote its infrastructure as a great political cycle is essential for attracting energy and all-round improved resilience investment opportunity to private private investment. If the private to meet today’s demands and to help financiers. Private investors are not investment community is being asked stimulate economic growth. necessarily infrastructure experts, to make long-term, multi-billion-pound It is widely acknowledged that the so vocal government endorsement investments, the government needs to UK will face mounting economic, of infrastructure as a sector full of offer long-term guarantees and protection environmental and social problems if investment opportunities is vital. to these investors in return. the nation’s infrastructure fails to meet Matching potential investors with the But industry also has a key role to present and future demands. Government most suitable infrastructure project, and play in making UK infrastructure an estimates propose that almost £500bn crucially the right stage of a potential attractive investment opportunity. All of is required to bridge the infrastructure programme, will be key. us involved in infrastructure delivery can funding gap. A common criticism of infrastructure do more to promote the positives of new The National Infrastructure investment is that it is risky and and improved infrastructure as a path to Commission’s first National unpredictable. Collecting and making economic growth and a better standard Infrastructure Assessment (NIA) readily available accurate, up-to-date of living for large numbers of people. published in July set out a long-term data on the financial performance and Gaining public support for infrastructure plan for meeting the country’s identified costs of UK infrastructure assets gives investment is essential to getting projects infrastructure needs and priorities. private investors the ability to predict off the ground, particularly in the UK, While the government has committed and project long-term revenue streams. where schemes are frequently blocked by to responding to the NIA within six Taking a pragmatic, data-and-results- local opposition. months, one thing is clear - the state led approach to offering investment The infrastructure sector needs to step simply cannot finance all these changes opportunities to the private sector up to make projects more attractive, help and advancements alone. enables engagement at the design stage, build project certainty and promote the There are trillions of pounds of giving investors early input into a project benefits of new networks and services to private capital, both foreign and and allows both parties to share data. the public.

November/December 2018 | Infrastructure Intelligence 25 ACE news

New website for ACE The redesign of acenet.co.uk provides a new platform for engagement.

eveloped with the end-user in mind, a new ACE website has Dbeen designed to better reflect desktops. In addition to news from ACE we’ve achieved that.” ACE’s work, allowing users to easily and the industry, it also hosts blogs from Those working for an ACE member browse industry events, purchase thought leaders from across the industry. company are encouraged to visit www. agreements and explore member Commenting on the launch, Tam acenet.co.uk and register to access services. Stakeholders can engage Simmons, head of marketing and exclusive member-only content (policy, with the breadth of ACE’s policy work, communications at ACE, said: “This is HR and legal briefings, as well as while journalists will be able to easily the product of months of work and I’m business templates) or to sign-up to find ACE’s latest comments and media delighted to be able to share our new regular email communications. releases. website with ACE members and the Thanks to the intuitive and responsive wider world. We’ve tried to make it as Visit the new website at design, the website works equally as easy as possible for users to access the www.acenet.co.uk well on mobiles and tablets, as it does on information they need and we hope that Representing members across the UK Regions and nations meeting highlights initiatives with huge potential to shape local infrastructure.

CE’s regional and Progress This will have provided ACE Scotland – in Northern Ireland some 40% of Network conference took place in manager, Sam Ibbott with plenty of food construction output is publicly funded ABirmingham on 2 November 2018. for thought and a perhaps a workable – and the discussions have now led to The meeting, which brought together vision for engaging with the future CPD beginning this pilot scheme, which the chairs of ACE’s regional groups and Scotland Infrastructure Commission, forms the first stage of a wider piece the Progress Network, with the chairs which was recently announced by of work on reform of procurement in and managers of the devolved nations, the first minister at the SNP autumn Northern Ireland. as well as representatives from ACE’s conference. ACE will be working hard to ACE chief executive Hannah Vickers staff and the chair, aimed to share best shape this future relationship over the pulled together the strands of the day’s practice and plot future activity over the coming months and with this in mind, discussions, highlighting the need for coming year. an upcoming reception at Holyrood in ACE to work holistically on campaigns Kicking things off, ACE Chair Mathew Spring 2019 will be hugely important. of interest to all members and help the Riley shared his views that ACE needed Procurement was a theme common to regions and nations achieve more while to do more to counter the negative all of the groups. ACE Northern Ireland supporting the build-up of local networks perceptions that can surround the manager, Bill Taylor, shared his work – whether at it be for emerging engineers industry, from Carillion to Grenfell over the last 18 months with the Central and consultants, or member companies. to delays on high-profile projects like Procurement Directorate (CPD) to agree a Find out more about the work of ACE’s Crossrail. He stressed the importance of new methodology where the lowest price regional/national groups, and how you increased local engagement activity for is no longer the determining factor in can get involved, at this. the award of a contract. www.acenet.co.uk/groups ACE Cymru | Wales shared the Working alongside news that they are heading a new other professional bodies alliance to interact with the National in the Construction Infrastructure Commission for Wales. Professionals’ Council Working alongside the Welsh branches NI, ACE Northern Ireland of ICE and CECA, ACE Wales manager has effectively made the Simon Shouler shared the vision of the case that a new approach alliance to increase dialogue and join-up to public procurement thinking between the industry and the is required. This is vital commission. to the local economy

26 Infrastructure Intelligence | November/December 2018 ACE news

Celebrating exceptional achievements European CEO Awards shine spotlight on innovative and creative leaders.

race Hall in the City of London This year three was the venue for this year’s CEO of the Year GEuropean CEO Awards. Kicking awards were off a packed European CEO Conference bestowed on worthy Karin Sluis (centre) recieving her award from ACE chair week, the awards on Monday 5 leaders from across Mathew Riley and chief executive Hannah Vickers. November 2018 recognised exceptional, Europe - Gerry Carty innovative and creative leaders in the of RPS, Ciarán Kennedy of Barrett a special one-off award was bestowed consulting engineering sector. Mahony Consulting Engineers and Karin to Nelson Ogunshakin, former chief Chair of the judging panel, Roger Sluis of Witteveen+BOS. executive of ACE and currently chief Flanagan (Construction Management, In addition to the three CEO of the executive of FIDIC. He received the ACE University of Reading) praised all Year awards, John Turzynski of Arup Lifetime Achievement Award which was nominees for demonstrating strong was presented with an Ambassador presented to him by former ACE chair integrity and for demonstrating their Award, Graham Nicholson formerly of Rod MacDonald. contribution to their companies, the Tony Gee and Partners was presented View the photos from the awards at industry and wider society. with a Lifetime Achievement Award and www.acenet.co.uk/news/gallery Future of the industry firmly on the agenda The annual European CEO Conference stressed importance of future-proofing the industry and meeting the challenge of disruptive change, writes James Ketchell.

aking place at the European solutions within this new business with representatives from the world Bank for Reconstruction and prism. Sessions on developing new of politics, industry and academia at TDevelopment (EBRD), this year’s commercial models, accessing funding the House of Commons. It also saw European CEO Conference certainly or support for R&D and creating new ACE launch a new discussion paper on delivered on its key theme, ‘Visions for and different partnerships, rounded off sustainability. our Shared Future’. an informative and engaging conference In its ninth year, and now firmly ACE chief executive Hannah Vickers and set the scene for future activity established as the highlight of the made the opening address announcing a around ACE’s Future of Consultancy sector’s autumn business event new campaign, Future of Consultancy. This campaign. calendar, the two-day conference gave will bring members and stakeholders Complementing a hard-hitting attendees a unique insight into the together to seize the opportunities business agenda, there were plenty of issues facing the sector. Somewhat offered by the huge technological opportunities for informal networking. uniquely, it also offered an opportunity changes the industry is collectively The European CEO Awards celebrated for delegates to proactively address the facing and help to create a vibrant, the best of the industry, while the issues they are facing too. profitable and sustainable industry. ACE annual parliamentary reception View the photos from the conference Keynotes from Amanda Clack (CBRE), offered delegates the chance to mingle at www.acenet.co.uk/news/gallery Rupert Whitehead (Google) and Paul J. Harris (Rolls Royce) returned to the theme of the disruptive digital forces challenging traditional industries, while discussions with panellists from across the industry, KPMG, Heathrow Airport, Bentley Systems, BST Global and EBRD echoed these ideas too. Sessions on mergers and acquisitions, macro- economics and infrastructure finance gave delegates a fully-rounded picture of the major issues facing their businesses today, as well as in the future. In addition to the results from ACE’s annual benchmarking survey, day two of the conference focused on developing

November/December 2018 | Infrastructure Intelligence 27 ACE news Shaping the future of consultancy The consultancy and engineering sector needs to come together to seize the opportunities that the technological revolution offers, argues Hannah Vickers.

he world is changing. Technological, environmental and Thuman advances have disrupted many industries. The internet revolution has changed the way we shop, listen to music, watch TV, and even engage with politics. Further advances in big data, AI and virtual reality are promising to do the same for many others, including consultancy and engineering. Our industry now stands on the brink of the fourth industrial revolution. Led by data and technology, new tools are emerging, including self-monitoring infrastructure, offsite and modular construction, drones and virtual reality which enables engineers to monitor projects from their desks, digital there are significant opportunities for Deal, the modern industrial strategy and design which takes minutes, rather consultancy and engineering firms to beyond. than weeks. All of this to help build improve outcomes and deliver better This is why I was delighted to the ‘smart’ infrastructure society is quality services for the end users of announce ACE’s new Future of Consultancy demanding such as more efficient infrastructure, but this must be enabled campaign at the European CEO turn-up-and-go transport networks and by the actions of the government and Conference in London in November. sustainable, yet affordable housing. private sector clients. They are ultimately A multi-year, two-phased campaign Engineering and technical responsible for creating the environment which will firstly scope new areas of consultancy in the UK remains which will allow us to bring forward the opportunity, identify and explore new the backbone of the economy as best the industry has to offer. Exploiting business models for consultancy and infrastructure investment is the only these new technological opportunities analyse the sector’s changing needs in way to ensure post-austerity and post- will improve the productivity of our terms of skills. Secondly, the campaign Brexit growth across the whole of the sector and its export potential. will pull together findings from phase country. In this economic and political On a delivery level, there is an one and focus on enhancing existing environment, our industry is more opportunity for our sector to help revenue streams and the development important than ever before. deliver transformational buildings of new ones, piloting tomorrow’s However, with the demands we are and infrastructure that is sustainable, training, apprenticeship schemes and now facing, is our sector, collectively, affordable and - most importantly - contracts and creating effective and ready to meet this challenge? It is wanted by society. This will enable us fit-for-future-purpose industry forums clear that in order to do so a change to bridge the north/south divide, better and partnerships to support a vibrant, is required – not just on a technical or connect regions to the economic centre profitable and sustainable sector. project level, but on strategic, market whilst fuelling London’s continued All of this will help all our members, and industrial levels too. growth, build the 300,000 homes a year no matter what their size, seize the The government has shown the country needs and ensure the UK is opportunities that lie ahead of us. leadership with its commitment to the better connected to the world and post- However, for this to happen, we will industrial strategy and Construction Brexit markets. need to build a consensus for change, Sector Deal and our industry is But realising these opportunities, and not just among ACE members, but with exploring future opportunities our industry’s transformation, requires wider stakeholder and government through our own R&D programmes deeper collaboration, not just within our bodies too. I look forward to working and campaigns like Project 13. We’re industry, but with government, clients with you all over the coming months to all aiming to build an industry that is and users of the built environment we help turn this into a reality. future-proofed and sustainable while create. This will ensure our consultancy remaining prosperous in the UK and business can build the skills, tools Hannah Vickers is chief executive of increasing its impact internationally. and capabilities needed to meet the the Association for Consultancy and It’s clear that within this new prism, ambitions of the Construction Sector Engineering (ACE).

28 Infrastructure Intelligence | November/December 2018 EIC news Hammond’s hesitation on the green economy In his recent budget, the chancellor seemed somewhat reticent on highlighting the value of saving the planet. Matthew Farrow looks at the factors behind Philip Hammond’s reluctance to play the green card.

hilip Hammond’s budget speech also highly politicised, inevitably so minister in a hurry if there ever was was one of the longer ones in given the amount of media attention one. Precent years, which only increased they automatically command. So, the Given Blue Planet, The Daily Mail, the fury of the environmental Twitter focus was very much on various tax and and Gove’s skilful positioning as the fraternity that it did not contain a single spending changes that may or may not scourge of plastic waste, Hammond had mention of climate change. (depending on your point of view) back to be seen to be doing something on As the green lobby pointed out, up the claim by the prime minister and plastics at least. He (wisely) rejected the the IPCC report stressing the very chancellor that ‘austerity is over’. blunt instrument of an incineration tax significant dangers of warming above On climate policy, the government’s (while seeking to keep its supporters 1.5C was only a few days old and had macro-policy is fairly stable (and it on board by naming it as a theoretical made headlines across the world. deserves credit to it for that). A set of future option). Instead he opted for The fact that the UK actually has a carbon budgets and targets through the a welcome commitment to a tax reasonable story to tell on climate policy Climate Change Act, carbon pricing, on plastic packaging but kept the (the Climate Change Act, record levels diminishing subsidies for renewables excitement levels down by making it of renewables, big push on electric as costs fall, some modest efforts to clear it would not come into effect for vehicles etc) made environmental improve energy efficiency and a push four years and that the details would to commentators even more perplexed. to make UK a centre of low carbon be determined by future consultation. Green policies are the ones that technology such as electric vehicles. Caution was also the watchword on dare not speak their name, With no big development in carbon taxes as, despite the IPCC report they wailed. climate policy to announce, noting a need for steadily rising carbon So why was the chancellor the Treasury saw no reason taxes, the budget view was that UK so reticent on the value of to include it in the speech. carbon taxes might be reduced in the saving the planet? I think But what about broader early 2020s. And the plans to reshape there are two main factors environmental policy, UK environmental policy post-Brexit behind this. where things are definitely through a new Environment Act was not The first is the nature of a-changing? Here I think the touched on. This caution was partly due the budget. Budget speeches reason is more a difference to the Treasury’s desire to give weight are primarily about change; of temperament and view to the concerns of business, who argue about what great reform the between the cautious that it takes time to redesign packaging chancellor is going to ‘Spreadsheet Phil’ and that high energy costs damage bring in to tackle at No 11 and competitiveness. a problem Michael Partly though, I think the chancellor holding the Gove at and his closest advisers are unpersuaded economy or Defra – a that greening the economy is the the country key to tackling the UK’s growth back. and productivity challenges. That They are does not mean they are set against environmental initiatives, but they are wary of anything that might hold back housing development for example in the future. Expect to see some Treasury- Defra tension next year over what the prime minister’s commitment to ‘net environmental gain in all new infrastructure’ actually means.

Matthew Farrow is director of the Environmental Industries Commission, the leading trade body for environmental firms.

November/December 2018 | Infrastructure Intelligence 29 Book review Designing for a happier life

A new book by architect Ben Channon, Happy By Design, explores the ways in which buildings, spaces and cities affect our moods and reveals how design can make us happy and support mental health. Andy Walker reviews the book here.

appy By Design: A Guide to Architecture and Mental Wellbeing, Hpublished by RIBA Publishing, is a brilliant little book which looks at the ways that buildings, spaces and cities affect our wellbeing and mental live in happier places in which to dwell. the things to consider in every building health. Presented through a series of Many of them need not cost the earth if you want to optimise good wellbeing. easy-to-understand design advice and either and in many cases the measures His seven fundamental design information and illustrated by handy outlined in the book are more cost elements include light, comfort, illustrations, Happy By Design is a great effective in the long run. control, nature, aesthetics, activity and resource for architects, engineers, The book’s author, architect Ben psychology. Channon describes how builders and indeed anybody who wants Channon of Assael Architecture, these broad areas are interlinked and to understand the relationship between certainly knows his stuff. He’s the helpfully colour codes the different buildings and happiness. mental wellbeing ambassador for his sections of the book and uses symbols In short, according to Happy By company and he’s also an accredited for the seven categories alongside Design, good design really matters and mindfulness practitioner. In his very design tips. Including just one of there are lots and lots of things that well-illustrated book, which is broken the seven features will make a real architects, builders, home owners and down into seven features of design that difference to the people that use your tenants can do to make the places they affect wellbeing, Channon highlights space or home and you don’t need to

30 Infrastructure Intelligence | November/December 2018 Book review

Ben Channon of Assael Architecture and the author of Happy By Design.

be a building industry professional to references section at the end which lists follow Channon’s advice. numerous books, guides and online Happy By Design provides a toolkit papers that have helped to inform of ways in which designers can Channon’s work or inspire him. Fellow support people’s wellbeing through architects and engineers have produced the buildings they create. Channon’s some excellent advice and information key concepts to consider include on how to make buildings happier and creating good lighting, considering the Channon generously lists website links importance of touch, making spaces and references useful books to add to comfortable, giving people control the reader’s experience and knowledge. over their buildings, involving plants I’ve already ordered two of his and wildlife in design, creating visible recommended books - on getting rid interest and joy, encouraging physical of clutter and how to think about activity, having calm spaces for escape exercise - and I can’t wait to read them. and relaxation, providing good storage So, both for the book itself and also for and creating a sense of home. Channon’s very useful tips for further His tips and handy advice are all reading and research, I can heartily easy to follow and reading the book I recommend Happy By Design. It really couldn’t help thinking that if only all is a brilliant little book that will help buildings were designed this way we people to live better and feel better. would go a long way towards improving Anyone with an interest in the built people’s mental wellbeing and creating environment must read it. a better world. Maybe that’s a grand statement but it’s clear from reading Channon’s book that such lofty aims Happy By Design is are entirely possible using good design available from the RIBA and the will to carry it through to a Bookshop, price £20. conclusion. Order online at One of the best bits of the book for www.ribabookshops.com me was the comprehensive notes and

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