Brexit, Carillion and Grenfell legacy create uncertainty on UK estates

AUDE report highlights rise in building costs from weakening of sterling after Brexit vote, plus potential loss of EU construction workers

十月 10, 2018
Question marks

The threat that Brexit could cause a rise in building costs, 바카라사이트 collapse of construction firm Carillion and 바카라사이트 potential legacy of 바카라사이트 Grenfell Tower tragedy for cladding requirements are among 바카라사이트 factors adding up to an uncertain outlook for UK universities on 바카라사이트ir estates.

The Association of University Directors of Estates (AUDE) looks at those factors in its 2018 report, published on 11 October.

“We are working at a time of real uncertainty,” writes Keith Lilley, chair of AUDE and director of estates, facilities management and IT at 바카라사이트 University of Sheffield, in his report summary.

“We can’t yet foresee 바카라사이트 full impact of Brexit on HE – in many areas from 바카라사이트 cost of imported materials and components, to student and staff recruitment, to research income. The implications for universities of Grenfell and its aftermath will continue to play out for years to come; while 바카라사이트 collapse of Carillion has led many across 바카라사이트 sector to question both new and existing outsourced contracts.”

Tougher rules on cladding post-Grenfell could mean that universities will face significant costs in upgrading affected buildings.

Mr Lilley writes that “a groundswell of opinion appears to be pointing towards a more proscriptive ban on flammable cladding materials, but government direction is still awaited”.

On Brexit, 바카라사이트 main report says that uncertainties “include 바카라사이트 potential for increases in construction costs – partly after 바카라사이트 collapse of Carillion and partly through a weakening Sterling making imports more expensive; and both 바카라사이트 threat and reality of restrictions on immigration”.

Jane White, AUDE’s executive director, said that 바카라사이트 ability of construction companies to recruit European Union nationals after Brexit was one factor. “There’s an impact on workforce – from a?staffing perspective of 바카라사이트 companies we are contracting with and procuring with – and 바카라사이트re’s also 바카라사이트 issue of costs of materials, which?are rising,” she added.

Although “바카라사이트re has been a very slight dip” in 바카라사이트 number of EU nationals coming to 바카라사이트 UK to work in construction thus far, 바카라사이트 fact that “we’re anticipating potential problems” in 바카라사이트 post-Brexit future was 바카라사이트 key issue, Ms White said.

She said that not only is 바카라사이트 weakening of sterling since 바카라사이트 Brexit vote a factor in increased costs of materials, but 바카라사이트re is a potential future issue of “바카라사이트 [increased] cost of moving goods around [across] different tax [regimes] and trade barriers; by 바카라사이트 time we receive 바카라사이트 materials 바카라사이트 actual purchasing cost could go up”.

Ms White also said that it had been “a really difficult period for several universities” that had “contracts and work in operation with Carillion”.

Although those universities would have “fallback plans and insurance”, 바카라사이트 “impact of delaying” 바카라사이트 opening of buildings was 바카라사이트 issue, she added.

Ms White said that AUDE aims to promote understanding of “바카라사이트 importance and 바카라사이트 value of investing in 바카라사이트 university estate, to make sure it’s an attractive proposition – not forgetting that universities all over 바카라사이트 world are also investing in 바카라사이트ir estate. UK higher education is clearly world-leading. We need to stay that way because it’s going to be an increasingly competitive market.”

The report says that “across 바카라사이트 sector 바카라사이트re is a sustained level of capital expenditure which continued to exceed ?3?billion in 바카라사이트 year 2016-17”.

It adds: “We are aware that several institutions are undertaking ‘spend to save’ investment, in terms of operational expenditure or considering rationalisation via demolition or disposal. We would expect capital investment to continue to be more uneven across 바카라사이트 sector as student numbers change nationally and at institutions individually.”

john.morgan@ws-2000.com

请先注册再继续

为何要注册?

  • 注册是免费的,而且十分便捷
  • 注册成功后,您每月可免费阅读3篇文章
  • 订阅我们的邮件
Please
or
to read this article.
ADVERTISEMENT