Jul 31, 2020

Landsec develops net-zero carbon commercial building

landsec
the forge
net-zero carbon
london office space
Jonathan Campion
2 min
The UK’s largest commercial property development company is to work on a zero-carbon office building in Southwark, London.
The UK’s largest commercial property development company is to work on a zero-carbon office building in Southwark, London...

The office development will be known as The Forge, and will be built with the aim of making it the first commercial building in the United Kingdom to be both constructed and operated in compliance with the UK Green Building Council’s net-zero carbon buildings framework.

Landsec’s chief executive, Mark Allan, commented that his company is committed to becoming a sustainable business in the short-term: “Our target is to be a net-zero carbon business by 2030. That means we have to start making changes to the way we do things now.

“We know that property companies have a vital role to play in addressing the climate emergency.

“We’re clear, therefore, that our sustainability strategy must be deeply embedded in our development programme and we will continue to be ambitious in our approach.”

The chief executive of the UK Green Building Council, Julie Hirigoyen, added that The Forge in Southwark had the potential to kickstart this necessary change: “40% of the UK’s carbon emissions are attributable to the built environment and so as a sector, we need to be pursuing aggressive rates of decarbonisation.

“The Forge is a ground-breaking development and testament to Landsec’s desire to tackle the climate crisis head-on.

“Developers, construction firms, architects and occupiers must start working together at scale to deliver buildings like this that minimise whole life carbon and contribute to meaningful progress in the battle against climate change.”

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Jun 20, 2021

Contractor issues head disputes list in 2020: Arcadis report

construction
contractors
Disputes
surveys
Dominic Ellis
2 min
The average value of disputes globally rose to $54.26 million in 2020 - but the numbers were much the same as 2019, according to an Arcadis report

The average value of disputes globally rose from $30.7 million in 2019 to $54.26 million in 2020, while the length of disputes fell from 15 months in 2019 to 13.4 months, according to an Arcadis report.

The data, featured in Arcadis' 11th annual report, illustrates industry-wide ripple effects of the COVID-19 pandemic although interestingly the overall volume of disputes stayed relatively the same in 2020 as in 2019.

While trends in the value and length of disputes varied from region to region, all regions surveyed saw an increase in "mega disputes" related to bigger capital programs and private projects. Notably, more than 60% of survey respondents encountered project impacts due to COVID-19.

Owners, contractors, or subcontractors failing to understand and/or comply with their contractual obligations became the leading cause of construction disputes in 2020 (jumping from 3rd place in 2019), followed by owner-directed changes and third-party or force-majeure changes as the second and third-leading causes, respectively.

Highlights from the report include:

  • Proper contract administration was a theme across the globe for the successful and early resolution of disputes
  • Most disputes were settled through party-to-party negotiation, and a willingness to compromise played a key role in early resolution
  • Among regions surveyed, the buildings (education, healthcare, retail/commercial, government) sector saw the most disputes
  • In North America, construction dispute value rose from $18.8 million in 2019 to $37.9 million in 2020, while the length of disputes shortened from 17.6 to 14.2 months.

While cost and length have changed since 2019, risk management was still seen as the most effective claims avoidance tactic, while owner/contractor willingness to compromise was once again the top-ranked factor for the mitigation/early resolution of disputes.

"COVID-19 irrevocably changed every industry," said Roy Cooper, head of contract solutions for Arcadis North America. "Construction disputes experts will have to continue to adapt, even post-pandemic, as workforce expectations, climate events and government infrastructure funding change how projects are designed and contracted in the future."

The research presented in the report was compiled by Arcadis based on survey responses, global construction disputes the team handled in 2020 and contributions from industry experts.

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