Construction Industry Trends 2023

Global market developments

The short-term outlook for the global construction industry is clouded by high levels of uncertainty. With a looming economic recession in major markets due to soaring energy prices and high interest rates, prospects for growth will be muted in 2023.

Tighter monetary policy and lower household purchasing power will weigh on demand for new buildings. Aggressive policy tightening by central banks in 2022 has lifted borrowing rates and thereby reduced the demand for building construction work. However, a large backlog of work will help to mitigate somewhat the impact on construction work done during 2023.

Infrastructure investment will drive growth in construction activity. Governments worldwide continue to champion major infrastructure projects to boost their economy’s productive potential and drive the post-Covid economic recovery. This will see civil engineering be the fastest-growing sector in the construction market.

Construction materials supply-side constraints will ease but not dissipate in 2023.

In advanced markets, labour shortage has become a serious issue. Tight labour markets and lack of a skilled workforce increase wage costs for builders in many advanced markets. In Europe this could become a structural problem in the mid-term future.

Construction costs will rebase at a higher level. A correction in the mismatch between supply and demand will ease the pressures driving construction cost growth. However, we do not expect construction costs to fall back to pre-Covid levels.

Work towards a more sustainable future will remain steady. The global push towards a less carbon-intensive future will continue in 2023 and beyond, with further investment in renewable energy generation and other green infrastructure.

Construction and sustainability – challenges and benefits

The construction industry is a major user of natural resources. From energy usage to emissions, it has a huge impact on the environment. According to the International Energy Agency (IEA), the buildings and construction sector accounts for a whopping 36% of worldwide energy use and 40% of CO2 emissions globally. Heavy plants used in construction still lean heavily on fossil fuels. Fabrication and shipping of construction materials have a massive impact on carbon emissions. Global cement manufacturing currently accounts for 8% of CO2 emissions annually, for example, with a rising rates due to ongoing urbanisation around the world.  

Amid widespread concern about climate change and the need to cut down emissions, there is increasing pressure on construction firms to reduce their environmental impact. Planning, building materials and construction processes must all change comprehensively. Supply chains have to be rethought, and an understanding of the materials required for a life-cycle approach will become crucial.

Revisions to building regulations are already changing the boundaries for the minimum requirements expected in construction today. This can be challenging, as the example of the Netherlands shows, where construction has been impacted by the need for  nitrogen reduction and tighter rules introduced regarding per- and polyfluoroalkyl substances (PFAS) in the soil. This has resulted in building project delays and postponement of building permits during the past few years.

Some benefits already visible 

Public construction is currently a strong driver towards more sustainability. National Highways in the UK, for instance, has committed itself to reduce construction-related emissions by 50% until 2030. As this report shows, public initiatives in advanced markets related to sustainability help to sustain the industry during a rather subdued market environment. There are many examples of this trend.

The civil engineering segment in Belgium is supported by public investment in clean energy projects, while the Inflation Reduction Act boosts spending in energy-efficient and sustainable building activities in the United States. The Next Generation EU fund supports large investments in projects with a sustainability aspect, benefiting the Italian and Spanish construction sectors in particular. A widespread phenomenon is increasing demand for renovation/upgrades to improve energy efficiency, and to comply with tighter environmental standards. The residential renovation work segment focused on energetic renovation (heating, ventilation, isolation and renewable energy) benefits from fiscal support/tax deductions e.g. in Belgium, France and Italy.


Source:atradius

2023 - The Construction Industry

Beyond the gloomy stats, the outlook for 2023 is nuanced (based on the UK market)

Courtesy: Michael Riordan - UK managing director of construction consultancy Linesight

 Life is likely to be tough for construction in 2023. The sector is expected to contract by nearly 1.9 per cent during the course of the year, according to GlobalData’s report on key trends and opportunities leading up to 2026. But the picture is more nuanced. While growth in residential, commercial and industrial areas is forecast to slow sharply, ‘mission critical’ sectors such as data centres and life sciences will see continued high demand.

And while these will not be immune from the sort of issues facing the rest of the industry – including ongoing supply chain challenges – these can be mitigated by providers embarking on greater collaboration with stakeholders or entering into relationship-based supply chain management arrangements.

Downbeat forecast

The outlook for the UK economy and construction sector in 2023 is gloomy, with the Bank of England projecting that the UK economy will be in recession for a prolonged period.

General sentiment suggests that material price hyperinflation is in the rear-view mirror. We agree, and expect that for the most part prices will either continue to moderate or drop back throughout 2023; as supply chains ease, sudden hikes are unlikely.

Elsewhere, the picture is less positive. A continued shortage of labour and specialist skills, high energy prices, contractor capacity and funding challenges could create a near-perfect storm – one that could affect the viability of some operators.

Meanwhile, financial markets are reeling from the impact of global events, high inflation and rising interest rates. 

The current general consensus is that the UK is in economic decline with a recovery unlikely before 2024.

The energy issue

The government’s recently announced increase in the windfall tax on the profits of oil and natural gas companies from the current level of 25 per cent to 35 per cent from January 2023 will remain in place until 2028. This could further incentivise moving away from oil and gas towards the adoption of sustainable energy strategies, such as wind and solar farms, as oil and gas strategies become less profitable. Indeed, the fourth quarter of 2022 saw a rise in approvals sought for various sustainable-energy initiatives with a combined capacity of 371+MW.

Subdued sectors

When it comes to activity, commercial, industrial and residential construction are unlikely to see much by way of growth in 2023. Commercial is likely to remain sluggish throughout the year, reflecting weak investor confidence, the increasing cost of finance and a worsening of the cost-of-living crisis, which will have an impact on demand.

While industrial activity has been booming in recent quarters, growth is expected to slow sharply in 2023, with the sector’s output affected by supply chain disruptions, soaring energy prices and uncertain global demand.

Residential has remained relatively strong in recent quarters, with output in 2022 set to grow by 6.4 per cent, but we expect to see a sharp reversal in 2023, owing to subdued demand for new housing amid rising interest rates and material prices.

Mission critical

While mission-critical sectors such as life sciences and data centres are less affected by elevated borrowing costs, other issues such as access to specialist contractors, general labour shortages and power availability remain a concern.

In addition, the pressures on long-lead equipment in the data-centre sector will continue to increase into 2023, with prolonged demand far outweighing the capacity of the supply chain.

Encouragingly, there has been growth in the development of tier two and tier three suppliers to support this demand. However, market entry remains a significant challenge, with suppliers reporting fully booked capacity until the second quarter of 2024.

Strategies for success

Addressing this capacity issue can be achieved by adopting procurement strategies that share the burden of extended lead times and maintain lines of communication between operators, contractors and suppliers.

The current outlook suggests turbulent times ahead for construction. It is crucial to mitigate the array of challenges by promoting relationship-based supply chain management and providing an elevated level of value engineering together with in-depth risk analysis and schedule management. Such approaches will be vital to delivering cost and programme certainty.

 

Vacant Property Refurbishment Grant

Courtesy: Citizens Information

What is the Vacant Property Refurbishment Grant?

 The Vacant Property Refurbishment Grant provides funding so you can refurbish vacant and derelict homes. It can also be used to renovate properties that have not been used as residential properties before.

To get the grant you must live in the home as your principal private residence when the work is completed.

You can get up to €30,000 to renovate a vacant property and an additional top-up grant of up to €20,000, if the property is derelict.

The grant was initially only available for vacant homes in regional towns and villages. However, on 15 November 2022, the grant was extended to cover all areas. So, it is now available if you are refurbishing a vacant home in a city or rural area, as well as a regional town or village.

The grant is funded by the Department of Housing, Local Government and Heritage through the Croí Cónaithe (Towns) Fund and you apply to your local authority. The Department of Housing, Local Government and Heritage has information about the grant including an FAQ. If you have questions about the grant, you can contact the Vacant Homes Officer in your local authority.

Do I qualify for the Vacant Property Refurbishment Grant?

To qualify for the Vacant Property Refurbishment Grant, you must meet the following criteria:

  • Your home must have been vacant for 2 years or more.

  • Your home must have been built before 1993.

  • You must own the home, or be in the process of buying it.

  • You must live in the property as your principal private residence when the work is completed.

  • You must have tax clearance from Revenue and your tax affairs must be in order.

  • You must have paid your local property tax, if applicable.

  • You must not have already got funding under the grant.

How much is the Vacant Property Refurbishment Grant?

You can get up to €30,000 to renovate a vacant property and an additional top-up grant of up to €20,000 if the property is derelict. The grant includes VAT.

If the renovation costs more than the grant, you will have to pay for this. You can apply for Sustainable Energy Authority of Ireland (SEAI) grants to help improve the energy efficiency of your home.

The grant must be approved before any work begins.

What work is covered by the Vacant Property Refurbishment Grant?

The grant covers:

  • Demolition work and site clearances including the removal of hazardous materials

  • Substructure works including work to foundations, rising walls, floor slabs, damp-proofing and underpinning

  • Structural works to superstructure including walls, party walls, chimneys, suspended timber floors, structural timbers

  • Works to internal walls, stairs, and landings, as well as internal wall completions including doors, windows, and applied finishes

  • External walls completions including doors, windows, sills, and applied finishes

  • Roof completions, including flashings, fascias, soffits, gutters, downpipes

  • Building services including plumbing, heating, ventilation, electrical services, telecommunications

  • Painting and decoration needed because of the work

  • Extensions in accordance with planning regulations and as part of a wider refurbishment

  • Necessary external works and site development works carried out within the area of the site

  • Professional services associated with works

The local authority will do a cost assessment and provide funding within any limits set out by the Department of Housing, Local Government and Heritage.

How do I apply for the Vacant Property Refurbishment Grant?

Step 1 – Send completed form and supporting documents

Complete the application form (pdf) and send it to the local authority with your supporting documents. You will need documents that prove:

  • The property is vacant.

  • That you own the property, or you are trying to buy it.

  • That the property is derelict, if you are applying for the top-up grant.

You will also need a quote for the work.

There is a checklist of the supporting documents you will need to send in the application form.

Step 2 – Application reviewed and processed

  • The local authority will review your application and documents.

  • They will arrange for a qualified person to visit the property to check that it is possible to do the work and to assess the cost.

  • The local authority will write to you to let you know if your application has been successful and how much you will get. If you haven’t bought the property yet, you will be approved in principle for the grant.

Step 3 – Send contractor and payment information

  • Send information about the contractor to the local authority, for example, their tax reference number.

  • Send your bank details to the local authority, so they know where to pay the grant.

  • Send invoices for the completed work to the local authority.

  • Get tax clearance from Revenue, if the approved grant is over €10,000.

Step 4 – Work is checked

The local authority will send someone to your home to check that the work has been completed as described and in-line with the costs.

Step 5 – Grant is paid

If the local authority is satisfied with the work when they inspect the home, they will pay the grant.

If you have questions about the grant, you can contact the Vacant Homes Officer in your local authority. The Department of Housing, Local Government and Heritage has more information about the process in the How to apply guide.

How are applications for the Vacant Property Refurbishment Grant prioritised?

Applications for the Vacant Property Refurbishment Grant are prioritised in this way:

1.     First-time buyers and ‘fresh start’ applicants.

2.     Applicants with particular needs who are selling or have sold their current home and want to refurbish a vacant home to live in. Particular needs includes people with disabilities and older people.

3.     Anyone else who is selling or has sold their home and wants to refurbish a vacant home to live in.

You are a first-time buyer if:

  • You have not previously bought or built a property to live in.

  • You do not own or have an interest in any property in Ireland or abroad.

You are a ‘fresh start’ applicant if you previously owned a home, but you no longer have a financial interest in it because:

  • You are now divorced, separated, or your relationship has ended.

  • You have gone through personal insolvency or bankruptcy.

Local authorities also consider the following when prioritising applications:

  • Level of vacancy or dereliction in the area.

  • Local development plan including any regeneration goals.

  • Wider regeneration plans for the area.

What happens if my application is not successful?

If your application is not successful, you can appeal the decision with the local authority. You should write to them within 3 weeks of the decision, giving the reasons why you are appealing. Your appeal will be reviewed by someone in the local authority who was not involved in assessing your application. The local authority will contact you with the outcome of this review. This can take up to 6 weeks.

What happens if I want to sell my home or rent it out?

If you decide to sell your home or rent it out within 10 years of getting the grant, you will have to pay the local authority back. The amount you repay depends on how long you’ve lived there. If you live there for:

  • Less than 5 years, you have to repay the full amount

  • Over 5 years but less than 10, you have to repay 75% of the grant

  • More than 10 years, you don’t have to pay back anything

You must pay back the grant in any situation where the home is no longer your primary residence within the first 10 years. However, if you want to rent out a room in your home while you live there, you do not have to repay the grant.

 

The 2023 Housing Crisis of Ireland: Fact or Fiction?

It seems like the housing crisis in Ireland has become common enough to seem like a permanent feature of living in Irish society. What exactly is the housing crisis, are we still in one in 2022, and how does it affect prospective renters and buyers? Read on and find out.

Courtesy: Selectra

What is the Housing Crisis in Ireland?

housing crisis occurs when the cost of housing, be it renting or buying, becomes higher than the income reasonably deemed adequate to meet it. In short, affordable housing has become a rarity.

How Can Housing Prices Become Higher Than the Average Income?

 Like any product on the market, prices are set by an equilibrium between supply and demand. If there is more supply than demand, the tendency is for prices to be lower. The theory is that producers will offer a lower price than their competitors to attract the few consumers asking for their product.

On the other hand, if there is more demand for a product than the supply, then prices tend to be on the rise. This is because the consumers are the ones competing against one another in a desperate attempt to obtain the goods. In short, it’s the reverse effect, where it is the consumers rather than the producers who are willing to pay more for a service or good to beat other consumers wanting the same product.

Unfortunately, this economic law of supply and demand does not pay a great deal of attention to the average worker's income. It pays more attention to the maximum amount that can be obtained.

What Affects House Prices in Ireland?

There are many factors that affect the price in a housing market besides supply and demand. Many other factors that are unrelated to general market conditions will change the way that house price behave in the housing market:

  1. Income
    Income for individuals and households has a big impact on house prices. As people have higher income, they will be more likely to invest in second homes and holiday properties, and will also be able to afford higher mortgages.

  2. Population
    Population has also been a driver of prices due to the higher demand. If there aren’t enough houses for a larger and larger population, this will bring the price up even more.

  3. Interest Rates
    Interest rates are another factor that determine housing prices. When interest rates are lower, the costs of borrowing are also lower and mortgages become less expensive. However, as interest rates go up, and mortgages become more expensive, then there will be less demand for them and this will drive down property prices.

  4. Social and Cultural Factors
    House prices can also be affected by social or cultural trends. For example, a housing market can experience a shift from buying towards renting if it’s more fashionable. Marriage rates and birth rates can also have an impact on the price.

 Save On Your Moving In Costs!

Is There a Current Housing Crisis in Ireland?

To determine if there is currently a housing crisis in the country, we just need to have a quick look at the numbers. Since the definition of a housing crisis is having the cost of buying or renting a home higher than the average income, we look at what these current numbers are below.

  1. The most recent numbers from the Central Statistics Office (CSO) place the average weekly earning at €871.62. That is €3,486 a month which becomes €2,737 after taxes as the take-home average salary.

  2. The Housing Agency of Ireland recommends a maximum amount to pay towards rent or mortgage of 35% of your monthly disposable income. As the balance of the funds needs to be applied towards other necessities such as food, electricity and gas, transportation, etc.

  3. The average cost of renting in Ireland is now €1,447 a month.

  4. A recent report by the Irish Examiner places the average cost of a new home at €262,000 and the average mortgage rate at 2.76%.

  5. Using a mortgage calculator with the minimum 10% home value deposit payment and the maximum 30-year mortgage brings the average mortgage cost for any new home buyer to €963.88 (including interest payments).

The above numbers paint a clear picture that the rental situation in Ireland is gloomy. The difference between what the average person can afford and the average cost is staggering. It is not surprising to hear so many stories about the increasing amounts of evictions in Ireland.

The housing market for buyers, although not technically a housing crisis by much, really isn’t much rosier. A decimal point change in the mortgage rate and all of a sudden, there is a housing crisis in the State for the buyers market as well.

So, this bolds the question, how did we get to such a state? We answer this question in detail below.

What Caused the Housing Crisis in Ireland?

Most experts agree that the housing problems in Ireland started in the latter years of the Celtic Tiger, at the start of 2007.

The economy was going so well at the time, that the State essentially stopped building social housing. On top of that, they turned the concept of buying a home into an investment venture, somewhere people could place their savings and make money from it.

Whether this was voluntary or not, this essentially shifted the responsibility of affordable housing over to the private market. Perhaps the thought was at the time that, in having a surplus of housing in the hands of the private sector, competition would force rental and housing prices down.

What the Government hadn’t planned for was the ensuing real estate market crash which started Ireland’s housing crisis.

What happened in 2008?The financial crash in 2008 had a lot to do with mortgages and mortgage delinquencies. Before 2008, mortgage lenders were lending very liberally to people (sometimes as 100% loan-to-value!) without properly checking their ability to pay back the loan.

In the end, the subprime mortgage crisis was caused by a surge in mortgage delinquencies and people failing to make their payments. This then triggered global financial prices and a housing market crash.

Since 2008, mortgage lenders have been very cautious about lending, and often require a very large deposit before you can take out a loan.

The CSO’s Housing Output Graph below shows a clear picture of the quantity of housing being built at its peak, 90,000 new homes in 2006. The following economic crash of 2007-13 put all of these new constructions practically to a halt. In 2014, only 11,000 new dwellings were built, much lower than the quantity of housing needed in the country.

This sudden stop in construction has essentially put Ireland with a 6-year backlog in new-builds which the Nation has never recovered from. Creating a massive shortage in homes rather than a surplus.

Although some experts have slight variations on the cause of the housing crisis in Ireland, critics tend to agree and blame the Government for failing to protect renters from the situation.

More on the causes and solutions to the Irish housing crisis.You can read more about the causes of the housing crisis in Ireland on Dr Rory Hearne’s blog page. Dr Hearne is a published Lecturer in Social Policy in the Department of Applied Social Studies at Maynooth University. He has researched and been a long time advocate for affordable housing and eradicating poverty.

Aggravating Factors in the Housing Crisis in Ireland

Irish renters and prospective homeowners now face the triple quandary of:

  1. Houses that are too expensive to buy.

  2. Stricter mortgage concession terms were generated by the previous financial crisis.

  3. Properties that are too expensive to rent.

The availability of rental property has been further exacerbated by holiday rental companies such as Airbnb.

Many landlords prefer to use properties for holiday rentals or short term lets due to the higher income the properties can then generate. Nearly 15 years after the housing bubble (which had caused another housing crisis) collapsed and prices fell and then rose again, there is still no proposed solution in sight for the current predicament.

Worryingly, the situation is not just being felt by prospective homeowners and renters, but also those dependent on social housing. An insufficient public housing system will detrimentally affect those who are homeless or at risk of being homeless.

In March 2022 the number of homeless people across Ireland was estimated at 9,825, a sobering statistic and nearly triple 2014 numbers. Research by Focus Ireland shows that the majority of homeless families previously depended on the private rental sector for housing.

To put these figures in perspective, a recent article by The Journal mentions in April 2022 there were only 80 homes available to people receiving the Housing Assistance Payment (HAP Scheme). That is a 92% drop in availability compared to June of 2021.

The Housing Crisis in 2022

The current Irish housing crisis is now being fed by an entirely different animal to the Celtic Tiger, the Russian Bear.

Now we can’t blame everything on the Ukrainian war. The global energy crisis was already in full swing long before Putin invaded Ukraine. However, the war has most certainly worsened the horrific situation the energy market was already in.

The cost of electricity and gas has been spinning out of control globally since the start of 2021 at the start of the post-COVID era. As the world was coming out of COVID, there was a sudden surge in demand for energy, unfortunately, there was not enough gas to go around. So, as we mentioned in our initial law of supply and demand, in this imbalanced situation, the price of gas rises.

The problem with having a shortage of gas and energy is that it has a trickle effect on just about every economic sector. Look at the food chain below as an example I am sure we have all noticed prices going up at the grocery store:

  Higher cost of transport +
  Higher cost of electricity in-store

  = Higher cost of food.

The same applies to the housing market. Builders need raw materials to make the home such as pipes, bricks, and windows. The same is happening in this sector as is happening in our food stores.

  Higher cost of transport +
  Higher cost of electricity at the factory

  = Higher cost of housing goods.

In 2022 however, the problem isn’t just about the higher costs of materials but the shortage of goods, as outlined in a recent article in the Irish Times.

Builders can’t even build new homes even if they wanted to! There is so much demand for the construction of new homes, that there is a shortage of materials as well as workers. As we have seen time and again in this article, what happens when there is a shortage of anything? That’s right, those material prices and wages go way up!

Rising Cost of HomesIn Ireland, a new house is 15.5%, and an apartment is 14.3%, more expensive compared to 2021. This brings the next question of what can be done to help fight this Irish housing crisis.

How To Solve the Housing Crisis in Ireland?

To solve the housing crisis in Ireland, we refer once again to Dr Rory Hearne at the University of Maynooth who proposes the following seven actions to solve Ireland’s housing crisis.

  1. New National Housing Plan

He estimates that 30,000 new affordable homes need to be built every year for the next 10 years to get out of this situation.

  1. Qualified Workforce

Put in place the necessary workforce with the skills to build to deliver such quantities of new homes.

  1. Change in Philosophy

Shift back the mentality of seeing a property to its initial use, like a home, not an investment.

  1. Protect Renters

To help renters, legislate the possibility of lifetime leases, freeze rents, and other enforcement mechanisms.

  1. End Homelessness

Other European countries have achieved this by providing support services and homes to the homeless without any preconditions to be met.

  1. Lower Vacant Sites

Implement a punitive vacant site tax to stop vulture fund investors from amassing properties.

  1. Go Green

Exceed climate targets set by the Paris Agreement. The new homes should have a net-zero carbon footprint and ensure all homes are energy-efficient by 2030.

It seems that the Government not only carries a large share of the responsibility for the current housing issues but also has the duty to solve the situation. Let’s have a look then at what policies the Government has put in place to address the affordable housing issue.

The Irish Government and the Housing Crisis

With such a big and complex problem, here are a few of the policies put in place by the Government to try and appease the housing crisis in the country:

Furthermore, in a recent interview with Sky News, the Minister for Housing, Darragh O'Brien, said the Government is to introduce a vacant property tax to address the problem of too many homes being left empty.

Asked specifically when this policy would be introduced, the minister replied ‘as soon as possible’.

Once the data is collated, and that's something myself and the minister for finance are working on… it will be as soon as possible,

How to Survive the Housing Crisis?

While we wait for these new affordable homes to be built and vacant tax policies to be in place, the most important advice for renters is to check all the major rental websites frequently (Daft.ie, Rent.ie, MyHome.ie, Property.ie).

While many available properties will be listed on all sites, some won’t. On some of the websites, you can also register for an account and set up alerts to let you know when suitable properties have been added.

Prospective buyers will want to shop around for the best mortgage available and examine the various help-to-buy government schemes available.

Whether you are a property owner or renting a home, if your average income is under the recommended threshold of 35%, look to make savings or cutbacks in other monthly expenditures, such as:

Additional Hints and Tips for Renters

 

As the price of rent in Ireland continues to rise, we list here a few additional tips to help renters move into an affordable home during this housing crisis:

  • Have a clear idea of what you want. Which areas would suit you for work or schools, what your budget is, how much of a deposit you can afford, furnished or unfurnished etc?

  • Have any relevant paperwork such as copies of ID, payslips etc. prepared and ready to go in a folder that you can bring with you at all times. Alternatively, keep one set of papers at work and another at home so you can quickly go from either place to a viewing.

  • Haggle but don’t be too insistent, and only if you feel the situation warrants it. Unfortunately for renters, at the moment it’s very much a landlord’s market.

  • Don’t go into a transaction blind. Before heading to a viewing, whip out your smartphone and check average house prices for the area, news reports on the area, and nearby transport and facilities. Also, remember to ask about parking availability if you have a car.

  • Hang around a bit after a viewing and ask prospective neighbours about the pros and cons of the area.

  • Stay within budget. The general rule for housing is that you shouldn’t spend more than 30% of your monthly income on it. Due to escalating prices, you may have to budget for more, but establish limits. It makes no sense to get a nicer place if you can’t afford to eat or travel to work.

  • Always visit a property and insist upon seeing inside it before agreeing to rent it. Pictures can be old or deceiving.

  • Know your rights as a renter and read contracts carefully. If you leave a deposit, demand a receipt.

  • Ask questions. Lots of questions. Don’t leave anything up to chance and be wary if the person who is showing you the house is reluctant to answer your questions or acts cagey.

  • If you’re going to be sharing an apartment, it’s best to try and meet your new roommates beforehand. Also, make sure that you each have your own separate leases or you could be stuck with paying all the rent if anyone ups and leaves.

  • Offer to take a longer lease. Even in such a competitive environment, landlords still don’t like the hassle of finding new tenants.

  • If you’re paying extra for amenities, make sure you will use them.

Green Energy - Improve Your Home Energy Efficiency

Energy-efficient homes rely less on unnecessary energy consumption, adopt the use of renewable energy sources, and cut down greenhouse gas emissions which ultimately result in lower utility bills and increased green energy savings for homeowners.

Source: Bord Gais

Committing to energy efficiency improvements provides you with more sustainable living conditions and there are significant money-saving opportunities to those who embrace the full benefits of national energy grants and incentives on offer. While some home upgrades can prove expensive at the outset, the long-run benefits are worth it when your potential energy savings are calculated.

An energy-efficient home should have a high energy rating. This means that a home should be properly insulated as well as airtight. It should have high-efficiency heating and cooling equipment that help to keep the utility bills low. Such a home should also be outfitted with low-flow accessories to lower water consumption and water heating costs. Those living in this home should keep the inside temperatures reasonable, manage electricity properly as well as buy energy-saving products such as LED bulbs and A rated appliances.

Conserve the Environment 

All the efficient features of an energy-saving home usually work together to lower energy consumption. Moreover, such a home is environmentally friendly. The sources of energy should reduce greenhouse gas emissions and also shrink the home's carbon footprint. Greenhouse gases have been at the forefront of climate change.

Successive Irish governments, prominent business organisations and sustainably-minded citizens and community groups have been championing the use of renewable energy sources in recent years, which entail low to zero greenhouse gas emissions. Hence, an energy-efficient home should conserve the environment and it's a responsibility of those within Irish society to develop a greater sense of awareness on how our activity affects the environment.

Comfortable and Healthy 

An energy-efficient home should be comfortable and healthy at all times. This home is warm in winter, and cool during the summer times and also free of drafts. The home is well ventilated and has excellent air quality. The house is never too humid or dry at any given time. Upgrading to this kind of a home can bring a lot of comfort to its residents.

Energy efficient, smart home owners ordinarily utilise a programmable thermostat to regulate their heating and cooling operations during the night and at times when they are away from home.

A Home that Always Adds Value 

An energy-efficient home's fixtures and upgrades usually show the commitment to add resale value. Upgraded windows and doors, as well as highly efficient lighting and appliances, not only save a home's energy but also add value to it. Energy upgrades should also entail investing in renewable energy resources such as solar and wind that can pay off for years to come. Adopting the use of solar energy will save energy for a home, reduce emissions, and add significant value. The Government has committed to a Microgeneration scheme as part of  part of Ireland's Climate Action Plan stating that excess energy produced by households & businesses will be compensated with a Renewable Energy Feed In Tariff (REFIT) for every kilowatt of green energy currently sent back to the national grid. 

Being able to pocket an additional €400 per year through this initiative can make a sustainable home even more appealing to buyers if you’re ever intending to sell your home.

What is home insulation?

Energy-efficient homes are usually well insulated and sealed against any air leaks. Current Building Regulations and SEAI guidelines recommend a minimum of 300mm of insulation on  rafters above ceilings or 150/200mm of opencell insulation spray foam between rafters. Hidden cracks, such as those in attics and crawl spaces, can allow as much airflow as an open window can. This means that such cracks cause the heating and cooling systems to work harder to maintain the desired room temperatures. This increases the utility bills for a given home due to higher energy use. 

Sealing such air leaks and adding extra insulation to the outer walls and attic can prove to be a very cost-effective way to improve energy efficiency. Thus, insulation is the act of sealing air leaks, wall cracks, attics, crawlspaces, and other open spaces that could lead to higher energy consumption

Wall Insulation 

About 35% of a home's heat is usually lost via external walls. Any extent of insulation-related heat loss can essentially be eliminated by insulating the walls so that more heat is retained within a home. There are various ways of insulating a home's walls, such as a cavity, external, and internal wall insulation. The SEAI recommend a ‘Fabric First’ approach for creating a more energy efficient home and offer generous grants. These forms of insulation can be used on their own or in combination with a home's existing wall construction. Your building contractor or service provider will assess the best method and discuss this with you before your upgrade begins.

Cavity Wall Insulation 

Cavity wall insulation is an essentially easy and cost-effective first step to reduce heat loss in your home. If your home has cavity walls that are not insulated, or they are only partially insulated, it's advisable to completely insulate them. Insulation is usually pumped into the cavity to seal it.

A series of small holes are drilled in the wall, at regular intervals, on the outside of your home. The insulation is then pumped through these holes to cover the cavity. The holes are then filled in as well to match the rest of the wall. Cavity wall insulation ensures that heat is not lost through the cavities present on the walls. This is quite important when upgrading to an energy-efficient home. 

External Wall Insulation

For the solid block or concrete walls that have no cavity, external wall insulation is generally the most preferred option. This option can also be used in addition to cavity wall insulation to further improve the performance of a home's external walls. External wall insulation usually involves wrapping a layer of stable and rigid insulation around your home. External wall insulation also involves fixing a rigid insulation material on the walls and embedding a mesh into it to provide extra strength. Such insulation can also be covered with a render to provide weather resistance. 

Internal Wall Insulation 

You can apply internal wall insulation when your home has solid or cavity block walls. In this case, it means that external wall insulation is either not possible or it's not considered the best solution. This insulation process usually involves fixing insulation boards to the inside of the external walls and covering them with a distinct vapour control layer.

 The walls can also be covered with plasterboard, skim, and new painting to make the wall aesthetically appealing. Since boards are installed on the inside of a house, there will be a loss of space in the rooms. Internal wall insulation will help increase energy saving for your home. SEAI offers generous grants (i.e €6,000 for a detached house) for these upgrades and you may also qualify for Energy Credits.

Attic Insulation 

Your home's heat can be lost through the attic. When attic spaces are insulated, heat is kept below the ceiling and it circulates inside the rooms. Proper attic insulation is the best way to prevent heat losses in the winter and retain cool air in the summer.

If your home has an attic, a thick layer of insulating material, such as a blanket material, will be rolled out between and over ceiling joists. For large roof spaces spray foam insulation can be sprayed between rafters (roof uprights) once a suitable breeder card is fitted Spray foam can deliver greatly improved airtightness. Another technique involves the use of loose-fill insulation. Loose-fill insulation is great for insulating attics with very little headroom as well as multiple obstructions, such as vents and cross-beams. Loose-fill insulation can also be blown over existing insulation and can be available in fibreglass, cellulose, and mineral wool form. 

With new attic insulation, proper ventilation is required, reducing the risk of condensation build-up in the attic space, which, if left unchecked, can harm the effectiveness of your insulation and cause damage to the roof structure. It is also important to ensure that pipes and tanks are properly lagged to prevent freezing and leaks.

Heating and Cooling 

Normally, heating and cooling systems can be responsible for as much as half of the energy consumed in a given home. To maximise the energy efficiency of your home's heating and cooling systems, only use the system when necessary. It is good practice to change the air filters regularly and get the unit serviced as recommended by the manufacturer.

Conventional homes usually lose approximately 20% of the air that travels via the duct due to leaks and improper sealing. Regular system services can help avoid the 20% loss that takes place in conventional homes. Ducts should be sealed and insulated for increased efficiency and lower utility bills. 

New Home Planning 

When building a new home, it is good to incorporate energy efficiency in the initial planning and construction phases. Naturally, this is the best way to ensure your home is as energy efficient as possible upon completion, but of course, not all homeowners are in such a position. Common in new Irish builds, the passive solar energy design utilises the sun for lighting and heating purposes without incorporating mechanical devices. Embracing solar energy and adopting such designs can significantly cut your need for additional light and heat sources. URBAN can plan and build your home for you as a One Stop Shop.

Also, glazed windows, overhangs, and heat repellent roofing materials can decrease the need for air conditioning during the summer.

Install a Programmable (or Smart) Thermostat

Thermostats usually monitor temperature fluctuations and communicate with the heating and cooling systems. They tell when to turn on or off the temperature system. A good thermostat like Hive, will eliminate broad swings in room temperatures and moderate the flow of heat efficiently and reliably to your preference.

A programmable thermostat will allow you to set the desired temperatures and the heating and cooling processes will take place automatically. A high-end electronic or smart thermostat may cost more than electromechanical thermostats, but it will offer better gains in the long run. Installing a programmable thermostat will help to upgrade your home to an energy-efficient one.

Install an Energy Efficient Water Heater or Heat Pump

Water heating is a significant energy expense for many Irish homes, accounting for approximately 12% of your monthly utility bill on standard supply contracts from your energy service provider. Energy-efficient water heaters are therefore necessary for your home if it has to upgrade. There are several water heaters in the market with varying types of fuel.

The first is a storage water heater which contains a big tank where the water is heated. 

The second, more sustainable solution is a tankless water heater which heats water as it passes via a circuit, thus eliminating the need to use a tank. Tankless water heaters are more energy-efficient than the conventional storage water heaters. 

There are heat pumps that essentially move heat from one location to another instead of merely generating it. Such kinds of heat pumps are about 2-3 times more efficient than the ones that just generate heat. 

For solar water heaters, the active heaters are more efficient than the passive ones. Tankless coil water heaters are known to be most efficient during the cold months.

Upgrade Windows and Doors

Replacing your windows might be an expensive upfront cost, but it will result in an immediate energy saving experience as well as improved comfort. If you can't afford to acquire the best windows, consider choosing a more affordable option on the market that is not as good as the best quality available but improves your home Depending on the age and condition of your window frames you could consider a glazing only upgrades, this would entail removing existing glass and replacing it with the latest Low-emissivity (Low E) glass which has special coatings and gas filled units that are very effective for retaining heat with little or no decoration afterwards.

As a budget option, you can tape a clear plastic sheet on the inside of the window frame to diminish any present drafts.

It is also possible to install insulating window shades that can protect against cold drafts and heatwaves. If you're more concerned with heat coming into your house than going out, you can apply reflective films on the windows facing the sun. 

It is also important to consider how windows operate because some offer better air tightness than others. Awning, hopper, and casement windows usually entail low air leak rates. Fixed windows generally fall under this category but they are not very suitable for places where ventilation is a key consideration.

A significant amount of heat is usually lost due to poorly insulated core. For doors, the most efficient ones have steel frames with a foam insulation core. Steel doors are cost-effective as well as safe and greatly reduce actual consumption levels in a home.

Another option would be to choose an energy-efficient fibreglass door. This means that you have to look for doors which have labels that indicate their energy efficiency status.

Sliding doors usually have higher air leakage rates even when weatherstripping methods are applied. 

Generally, hinged doors are more efficient than sliding doors, but if you happen to prefer sliding doors to protect your home from the elements, choose the ones with metal frames and a thermal break for maximum efficiency. A thermal break is a plastic insulator between the exterior and interior parts of the frame.

The Programme for Government and the Climate Action Plan set ambitious goals to reduce greenhouse gas emissions from buildings, including our homes, with targets to retrofit 500,000 homes to a Building Energy Rating (BER) of B2 and to install 400,000 heat pumps in existing buildings over the next 10 years.

These targets represent a very significant increase in both the volume and depth of retrofit activity required. A half million homes equates to almost 30% of all residential buildings in Ireland.

Contact us to start your Energy Efficient Journey Today - We will guide you through every step of the process;

email: hello@urbanac.ie

telephone: 012544488

KEY DIFFERENCES BETWEEN RESIDENTIAL AND COMMERCIAL CONSTRUCTION

Residential and commercial construction projects have numerous differences in tools, materials, purpose and functionality. The cost of commercial construction in comparison to residential is usually much higher and more likely to be publicly funded. While residential construction is often privately funded through capital investment and bank loans.

Here are the main differences between residential and commercial construction.

Purpose

Residential construction is usually for domestic housing and apartment buildings. Projects range from self-builds to housing estates and apartment complexes. On the other hand, commercial construction is used for building offices, industrial facilities and professional establishments. These sites are often controlled by the commissioning business and the hired commercial building company.

Of course, the purpose of a construction site has a big impact on the materials and equipment used as well as the functionality of the space.

Materials

Residential projects are likely to rely on more cost-effective materials that can be used on a smaller scale. Timber is a popular choice for residential construction projects because of its affordability. Although with a bigger budget, residential projects may have more choice, creativity and flexibility when selecting their materials.

Residential materials are likely to be more focused on aesthetics, whereas commercial builds look for functionality and cost-effectiveness on a larger scale. For example, commercial buildings are more likely to use roofing sheets as opposed to traditional roofing materials that are more common in residential buildings.

Commercial construction sites operate on a larger scale and can afford more investment in materials, like steel. Commercial companies will usually benefit from economies of scale by ordering large quantities of materials.

Project length

Residential projects are much shorter than commercial builds and less complicated. Commercial projects usually need a large workforce to meet deadlines and maximum efficiency to ensure greater profits. Commercial sites will often have tighter deadlines and a more varied skillset on the site at once.

On the other hand, residential sites operate at a much slower pace and use a smaller workforce with less efficient equipment. Commercial projects are likely to take longer to complete because of their complexity and vast scale.

Equipment

Commercial projects often need high-powered machinery and specialist equipment to perform complex tasks. Workers will need special training to operate some machines, which comes with an added cost. Commercial construction sites can justify added training costs for a specialist workforce and machinery. Larger construction sites may need cranes and earth-moving equipment, which requires specialist health and safety training and experience to operate.

Residential construction is often on a much smaller scale and does not require such heavy-duty equipment. In the case of self-builds, homeowners often choose to DIY parts of their home to save costs on hiring a workforce and machinery. If these DIY projects go wrong, they can be solved fairly easily because of their smaller scale. It’s also important to note that commercial sites are more liable to huge lawsuits if things go drastically wrong.

 #URBAN #Architecture #Construction #Exclusive #Bespoke #Architect #Office #FitOut #Contractor #Commercial #Builder #Design #Build #Luxury #SouthCountyDublin

Source: UK Construction Blog

War on Ukraine to impact housing but Housing Minister insists Ireland will meet its targets

The war in Ukraine may have an impact on Ireland's ability to meet its housing commitments, the Government has said, although the minister with responsibility insists this year's targets are not in doubt.

The latest quarterly progress report of the Government's Housing For All plan says that while "good progress has been made through the quarter and early indicators are positive", the war in Ukraine could cause problems for homebuilding.

The report notes that there are challenges ahead "with the war in Ukraine leading to a number of risks. On one hand, it has led to significant inflationary pressures, supply chain disruption and instability, all of which pose challenges in delivering the plan. On the other hand, our commitment to welcome those fleeing Ukraine leads to an immediate need for accommodation and a longer-term requirement for additional housing.

The report states that: "Planning is also underway to ensure that more suitable accommodation is provided in the medium to longer term, with a cross-sectoral and cross-departmental housing taskforce having been established to address this issue. A range of solutions are being evaluated, including the expansion and acceleration of measures in Housing for All designed to make optimal use of existing stock. 

Solutions based on the construction of modular homes, at pace, on specific State lands are also under consideration. 

"All options are being explored in an effort to meet the emerging need while maintaining our existing commitment to support the provision of social, affordable and private houses for sale and rent."

The report, released this morning, adds that the war "has also exacerbated inflationary pressures, with rising energy and material costs impacting many sectors, including construction, leading to significant overall increases in the cost of building programmes".

"Supply chains have been disrupted, leading to uncertainty in both availability and cost of materials such as steel and timber. Overall, this has introduced a level of uncertainty into the housing market."

However, despite the rising costs, Housing Minister Darragh O'Brien said this year's targets are not in doubt. "It's not in doubt. We have built a very strong pipeline. Last year actually we produced about 1,300 more social homes than we had done in 2020 and that was even in a very difficult year with Covid,” he said, adding that the situation would need to be “watched very carefully”.

“We have to watch this very carefully, of course, and you know, there will be further challenges to delivery. But this year, our pipeline is strong, we're targeting about 9,000 new build social homes, and just around 4000 affordable homes. This isn't going to be easy. No one's no one's suggesting that it is. But thankfully that we we have shown that we've been able to adapt and be agile.”

Housing For All sets a target of 24,600 homes to be built this year and the progress report is bullish on meeting that, pointing out that commencement notices for over 33,000 homes in the 12 months to February were received and almost 43,000 units were granted planning permission in 2021.

Housing For All delays

However, of the 20 actions due for delivery this quarter, just 12 have been fully completed. Among those delayed are the First Home Scheme, the Government's shared-equity home purchase scheme. The much-discussed scheme will see first-time buyers offered up to 20% of the purchase price of a newly built home as an equity stake.

The document says that a company established by the Department of Housing is in discussions with a third party over the administration and day-to-day running of the scheme.

"It is anticipated that the scheme website will go live to begin the communications process in May 2022. It is planned that the scheme will open for formal applications and equity support will be deployed from the fund by end of Q2, 2022."

An overhaul of the differential rents system, which sees local authority tenants pay different rents across the country, has also been delayed. This, the document says, is due to the "emerging cost-of-living challenges in recent months".

Also delayed is the introduction of the Croí Cónaithe (Cities) Fund as well as a plan for state departments and agencies to review the property they hold and place them on the market if they are not required and may be suitable for residential housing and a national rightsizing policy.

 

Credit: Paul Hossford Irish Examiner

Grants For Home Energy Upgrades - February 2022

With new grants out last week, here’s is all you need to know to avail of them!

Introduction (SEAI IRELAND)

The new National Home Energy Upgrade Scheme provides grants to upgrade the energy efficiency of your home. When the work is completed your home should have an energy efficiency rating of B2 or above.

The Sustainable Energy Authority of Ireland (SEAI) administers the scheme and a private company manages the work for you. These companies are called One Stop Shops.

The SEAI also provides individual energy upgrade grants, if you only want to do certain home energy upgrades, and would prefer to manage the process yourself. There is also a free home energy upgrade scheme for people on low incomes.

How the process works?

You need to use a private company registered with the SEAI to access this grant (also known as One Stop Shops). They will manage the whole project for you, bringing your home up to a BER rating of B2 or above.

The company will:

Complete an initial energy assessment of your home and advise you on the upgrades you need to bring it up to a B2 BER rating or higher

Apply and accept the SEAI grants for your home

Assign a contractor to do the work on your home

Manage the works at your home ensuring that everything is up to standard

Complete the final BER assessment when the work is done

These companies deduct the grants from the cost of the works in advance, so you only pay what is outstanding. Some of these operators also provide finance options, so you have different ways to pay for the outstanding cost of the works.

Do I qualify for the grants?

To qualify for a grant you must:

Be the owner of a property built and occupied before 2011 for insulation, heating control systems and renewable systems grants

Have a home with a BER of B3 or lower before the work, and reach at least a B2 rating afterwards.

Not have already used grants for the same energy upgrades

Use an SEAI registered company (One Stop Shop) to manage the process, work and applications

What energy upgrade grants can I get under the scheme?

Under this scheme, you can get grants for:

Attic insulation

Rafter insulation

Wall insulation - including cavity wall, internal dry lining and external insulation

Floor insulation

Heating controls

Solar thermal solutions (solar hot water)

Solar PV panels and battery systems

Heat pump systems and central heating system for heat pump

New windows

New external doors

Mechanical ventilation

Air tightness

Home energy assessment

Project management

How much are the grants?

The table in this link - https://www.citizensinformation.ie/en/housing/housing_grants_and_schemes/grants_for_a_home_energy_upgrade.html - shows the grant amount available for each energy upgrade. The amount you get for each upgrade can depend on the type of home you have. For example, the grant you get to insulate a detached house is more than the grant you get to insulate an apartment.

How to apply

You should contact an SEAI registered One-Stop-Shop to apply for this new grant. The SEAI will be publishing a list of One-Stop-Shops shortly. In the meantime, there is information about One-Stop Shops on the SEAI website, or you can contact them for further details about the scheme.

 

Better Energy Homes Scheme

Sustainable Energy Authority of Ireland

P.O. Box 119

Caherciveen

Kerry

Ireland

Tel: 01 808 2100

Homepage: http://www.seai.ie/

Email: info@betterenergyhomes.ie

Five economic flashpoints to watch out for in 2022

Eoin Burke Kennedy  - Irish Times

 

Next year may bring good news but many of the concerns of 2021 will not have gone away

 

The economic rebound from Covid is now well under way but as we head into 2022 the outlook is still clouded with fresh risks from new variants, concerns about a slowdown in global growth, inflation uncertainty and more trade friction from Brexit. The only sure thing is that the issues that dominated in 2021 look certain to be to the fore again. Here are five potential flashpoints.

 

Inflation and the cost-of-living squeeze?

 

The biggest economic debate worldwide right now is whether the current acceleration in price growth and the ensuing cost-of-living squeeze is – as central banks keep telling us – transitory, a product of the post-Covid reopening of economies or something more prolonged, something that could usher in a new era of higher interest rates.

 

Our entire financial ecosystem – stock markets, company earnings, government bonds, mortgages – is predicated on low interest rates and a significant shift could have far-reaching consequences. Deutsche Bank warns a period of rate hikes could cause havoc in a “debt-heavy world”, spurring financial crises in emerging economies.

 

Prices have skyrocketed in the past few months on everything from home heating and fuel to hotel rooms and airline tickets, fuelled by a massive surge in energy prices globally, a post-lockdown rebound in consumer spending and supply chain bottlenecks. Brexit red tape is also a factor.

 

Irish inflation is now running at a 20-year high of 5.3 per cent while, in the US, it is over 6 per cent, the highest level since 1982.

 

US Federal Reserve chief Jerome Powell has – in recent weeks – signalled a shift in the Fed’s thinking on the issue. He said it is probably time to “retire” the word “transitory” when describing inflation, while suggesting the Fed could accelerate its unwinding of bond purchases that have helped keep longer-term borrowing costs low.

 

A faster tapering could prepare the ground for an inflation-cooling interest-rate increase as soon as the first half of next year – rather than the second half as previously expected. Some say the market is already factoring in two US interest rate hikes in 2022.

 

The European Central Bank (ECB) tends to be less reactive and has so far ruled out an interest rate rise in 2022. Whether the current bout of inflation proves stickier may come down to wage growth. If wages start rising as workers demand better compensation for the current cost-of-living squeeze, that could trigger a wage-price spiral, leading to a more prolonged bout of price growth.

There is also a school of thought that believes the race-to-the-bottom globalisation that we’ve had for two decades, which has effectively exported price growth, may be at an end as businesses rethink their supply chains and consumers demand greater ESG (environmental, social and governance) standards. The debate is set to run.

 

Escaping the cycle of on-off restrictions

 

Predicting the end of the pandemic has – to date – proved a mug’s game. We are now officially in wave four of the virus, with the look complicated by the emergence of new, potentially more transmissible strains.

 

Another complicating factor is large differences in vaccination rates between countries. The Organisation for Economic Co-operation and Development (OECD) has warned that vaccine inequity – particularly in low-income countries – is fuelling renewed outbreaks, which are adding to the unevenness of recovery in the global economy.

 

Economic normalisation remains vulnerable to further restrictions as virus variants challenge public-health systems. Getting out of this cycle of on-off restrictions is a key challenge for 2022 and a key requisite for businesses in consumer-facing sectors.

 

On the upside, the severity of the virus continues to moderate as treatments become more efficacious. Pfizer and BioNTech say their booster jab promises to be an effective defence against the Omicron variant. Hopefully the era of circuit-breaker lockdowns is behind us.

 

 

While Ireland is experiencing exceptionally strong growth fuelled by an increase in aggregate income and the unwinding of lockdown savings, risks to the consumer-facing sectors from new restrictions and more stringent messaging around social distancing have risen. This points to a K-shaped recovery, with much of the economy reverting to the jobs-rich growth we had prior to the pandemic – the Central Bank is predicting that up to 60,000 jobs will be created over the next two years – while the worst-affected sectors take longer to recover.

Renewed restrictions are likely to see a temporary slowing of recovery in the final part of 2021 and the first quarter of 2022 with an acceleration again in the spring. Not for the first time, the economic outlook is tied to epidemiology.

 

Removing supports and zombie businesses

 

Covid has ushered in a new era of crisis management, with wage supports deployed en masse to cushion the economy from the worst of the hit. Such measures stand in sharp contrast to the austerity imposed in the wake of the 2008 crisis, which compounded the the fall-off in demand.

 

However, weaning the economy and businesses off these supports – a fiscal imperative from the Government’s point of view – is likely to prove tricky. The Government has already had to reverse out of a cut in the Employer Wage Subsidy Scheme (EWSS), which it plans to phase out on staggered basis between now and April. Minister for Finance Paschal Donohoe said the Government couldn’t design a targeted scheme for the hospitality sector in time for Christmas and so have gone this route instead.

 

Wage supports have been critical to maintaining the link between employers and employees and it is crucial the Government avoids a cliff fall when removing these safety nets.

 

The expectation is that they will be in place for longer than April, the current end date, but on a more targeted basis. That said, the final end point will necessitate condemning debt-laden zombie businesses – those being kept alive by supports – to oblivion, an unavoidable aspect of the current crisis. Many fear the true extent of this won’t be known until the tide of supports goes out.

 

An internal Government memo is warning that tens of thousands of jobs could be lost if the EWSS is removed in April.

 

Regardless of supports, Irish Small and Medium Enterprises (Isme) chief executive Neil McDonnell says he expects to see an uptick in insolvencies in the first quarter of 2022.

 

“We’d expect the action to kick off as early as Q1, since the Christmas restrictions will have changed the calculus for a lot of businesses, especially in hospitality, restaurant, pubs, music and entertainment,” he says. “Anecdotally, we heard a lot of businesses planned to trade as hard as possible for December, and then close the doors before the January-February VAT bill was paid. The new restrictions have altered those plans,” McDonnell says.

 

A positive is that the Government’s better-than-expected tax and deficit numbers, which are expected to continue in 2022, enables State to keep providing support to struggling sectors and businesses.

 

Brexit and an adverse trade outcome

 

If the past is the best predictor of the future, we’re likely to see more friction between the EU and the UK on post-Brexit trade arrangements but the avoidance of a serious breach in relations. Both sides are trying to reach a deal that would reduce customs checks on goods moving from Britain to Northern Ireland – seen as the key faultline in the current agreement – and ensure the free flow of medicines across the Irish Sea.

 

The UK government has warned that it will trigger article 16 of the Northern Ireland Protocol if progress isn’t made, although reports earlier this month suggested the ECJ issue had, for now, been taken off the table by the British side.

 

Article 16 is the legal mechanism allowing either the UK or the EU to take unilateral action if they believe the deal has brought “serious economic, societal or environmental difficulties” or “diversion of trade”.

 

In response to a UK triggering of article 16, the EU could terminate the Brexit trade deal, sparking a trade war between the 27-nation union and its former member.

Up to now, worst-case scenarios have been avoided but such a stark outcome remains a risk. Brexit has impacted trade between the Republic and Britain but much of it is mixed up with the pandemic and it may be some time before we get a clear picture. While imports from Britain have plunged, the value of goods exports from the Republic to Britain have increased, though there are pandemic base effects driving these numbers as well.

 

The other big shift is the pick-up in trade North-South. Much of this might be diverted trade as businesses use the North as a channel to move goods between the Republic and Britain.

Despite technology and the removal of trade restrictions across the world, studies continue to show that geographical proximity and economic size are still the dominant factors in trade patterns, even in services. As a result, the UK will remain a dominant export destination for many Irish businesses despite Brexit and despite our economic ties with the US.

 

Soaring housing prices and rents

 

A central question is whether a rebound in construction implicit in the Government’s Housing for All strategy, which promises 33,000 homes a year out to 2030, will bring about a change in Ireland’s increasingly fraught housing dynamic.

 

Demand for housing has strained a dwindling supply of available homes, pushing up prices and rents. Property website Daft.ie said there were just 1,460 homes to rent on its website as of November 1st last, the lowest number since its quarterly series began in 2006. This included just 820 in Dublin.

 

The Central Bank is also warning that a significant public spend on housing over the next few years could run up against capacity constraints, primarily related to a labour shortage, which may fuel further inflationary pressure in the sector.

 

There are two fundamental forces fuelling the crisis here: supply and price. One is too low, the other too high. The Government and industry are banking on the old supply-and-demand laws resolving the pricing issue but there is little evidence the housing market conforms to these laws.

 

It’s almost certain an increase in supply and a waning of the Covid-driven demand for housing will moderate the current levels of price and rent growth in the coming months, but the affordability gap at the heart of the equation is unlikely to change much, suggesting housing is likely to remain one of the chief economic and political flashpoints of 2022.

 

 

Eoin Burke Kennedy  - Irish Times

 

 

#Urban #Architecture #Construction #Design #Build #Ireland #2022

Economic Outlook For The Construction Industry 2022

The economic outlook for 2022 and the medium-term is largely positive – provided that the re-opening of labour-intensive sectors of the economy continues and that no further containment measures in the face of new Covid-19 variants are introduced.

Real GDP is forecast to grow by 8.8 per cent in 2021, before moderating to 5 per cent in 2022. However, this reflects the growth from 2020’s exceptionally low base and the strong performance of those industries focused on international export markets, such as manufacturing. Meanwhile, Real MMD (Modified Domestic Demand) is forecast to grow by 2.6 per cent in 2021, before rebounding more strongly in 2022.

The pandemic will continue to set the course for the Irish and EU economies in the short term.

The pandemic impacted all sectors of the economy during 2020, and 2021 to date, as the levels of Covid-19 related restrictions varied over the past 18 months.

Sectors focused on the domestic market, such as construction, experienced significantly lower levels of economic activity in 2020, with the construction sector contracting by -12.7 per cent. GVA for the sector was €7,502m in 2020.

The Covid-19 restrictions effectively shut down almost all construction output at the height of the crisis, except for a limited number of essential projects. The closure of all non-essential construction projects in early Q1 2021 is reflected in the year-on-year change in the volume of production for the Residential sector, which saw a volume decrease of 60.9 per cent in the seasonally adjusted index. Meanwhile, the Civil Engineering and Non-Residential sectors also decreased on an annual basis by 33.6 per cent and 19.5 per cent respectively.

The CSO’s data for Q2 2021, which has just been published, reflects a construction sector which slowly began to return to work in a phased manner during Q2. The volume of production in construction increased by 7.7 per cent in Q2 2021 compared to Q1 2021 on a seasonally adjusted basis. And on an annual basis, the overall volume rose by 26.3 per cent in Quarter 2 2021.

The Residential sector shows the largest quarterly increase with a rise of 52.6 per cent in the seasonally adjusted volume index, while the Civil Engineering sector increased by 30.6 per cent. The Non-Residential sector increased by 2.2 per cent in Q2 compared to Q1.

The overall increase in production on an annual basis saw a volume increase of 85.0 per cent to the end of Q2 2021 in the Civil Engineering sector. The Residential and Non-Residential sectors also increased annually by 43.6 per cent and 19.1 per cent respectively.

However, the closures during 2020 and 2021 must be carefully considered when interpreting the annual increase in the volume of production on a sectoral basis. The CSO’s Production in Building and Construction is best used as a short-term indicator.

While there was a moderate gain in the share of sectoral GDP for construction in Q4 2020 (€2.2bn) compared to Q3 2020 (1.9bn), data for Q1 2021 shows a steep decline from Q4 2020 investment figures of -27.9 per cent following the closure of all non-essential construction. Overall, for 2020, GFCF declined by 32.3 per cent. This decline was largely driven by the significant yearly drops in machinery and equipment (-25.2 per cent), and building and construction activity (-9.1 per cent).

In terms of recovery, modified investment is forecast to grow by 2.5 per cent this year, accelerating to 6.8 per cent in 2022 according to the Central Bank. Modified investment in building and construction is forecast to grow by approximately 1 per cent this year, accelerating to approximately 5 per cent in 2022 and 6 per cent in 2023.

Courtesy: Jeanette Mair at CIF

Link to Main: The Economic Outlook for Construction 2021/2022 - Construction Industry Federation (cif.ie)

#construction #architecture #ireland #design #build #2022

Key trends in the construction industry for 2022

VR, AR and MR – they’re here to help

  1. Digital models as legal documents

  2. Easy-access models in the Cloud

  3. Robots can keep working during construction site downtimes

  4. 3D printers for building construction

  5. Sustainable construction

 

The construction industry, often seen as a relatively conservative field, has over the last few years started to change rapidly. New technology has become available, and it is helping to make construction processes both simpler and easier to manage.

“You can see the parallels with the vehicle industry, which was able to streamline its production processes at an early stage. Eight to ten years ago, the construction industry started heading in the same direction, and now things are moving fast”, says Markus Waser, Head of Training in Construction Technology and Community Construction at Yrgo in Gothenburg.

Robots can keep working during construction site downtimes

In the near future, it will be more common to see robots out on building sites. At the moment, only a small number of all industrial robots make it to the construction sector, and most of those are used in prefab production. However, several companies are currently working on the development of mobile robots for the construction industry. Build-R, for example, is developing a plasterboard installation robot. The idea is for the robot to work overnight while the construction site is on downtime, and the company hopes it will be able to install a plasterboard in three minutes. The robot has a camera and sensors which measure angles and distance, and enable it to map out the wall. Build-R plans to test the robot on some of NCC’s buildings in spring, and it is expected to be ready for market launch in 2019.

Linköping-based company Cbot is currently developing a slab placement robot that can pick slabs from a stock and then lay them out using an arm. It uses cameras, lasers, lights and algorithms to ensure that the slabs are positioned correctly. There are also robots that make reinforcement cages on site, while right now in Switzerland, a robot that can install foundations for steel bars is currently being tested.

Jonathan Eriksson finds the development of robots extremely interesting. They can perform heavy lifting tasks and work in cold, dirty environments. As such, they contribute to a better working environment and increased productivity.

“There’s a lot of monotonous work involved in construction. Bolting plasterboards together every day for 20 years can cause repetitive strain injury in the shoulders and elbows. It’s better to let robots do the monotonous work and have the people programme the robots. Even if robots take over the same job, we’ll still always need people. Every aspect of society is heading towards automation”, Jonathan says.

Budget Ireland 2022

New land hoarding tax presented as game-changer as hopes rise for housing.

Housing expectations are high due to receding pandemic and Housing for All plan.

With the State firmly in the grip of Covid-19 during last year’s budget, expectations for housing completions were not high, but it didn’t stop the Government from making outlandish housing projections.

Social housing and homelessness schemes spent far less time out of action than the rest of the construction sector, but still, upping the output from Rebuilding Ireland’s 2021 social housing target of 8,907 houses to 9,500 seemed almost eccentric.

Unsurprisingly, it looks highly unlikely this target will be met. In the first six months of this year 2,433 social homes were built, which includes regeneration schemes – where existing social homes are being replaced – and Part V schemes, regarding homes that developers are obliged to sell to local authorities.

The number of homes completed generally speeds up in the second half of any year but this is a lot of ground to make up. Doubtless, however, given the pandemic and materials and worker shortages, there will be a degree of self-congratulation if the figures come anywhere near the mark.

Expectations will be different this year. Housing hopes are high, not just because the pandemic is receding into the rear-view mirror, but because of the new Housing for All plan published just last month, the successor to Rebuilding Ireland.

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Broadly the new plan aims to provide an annual average of 9,500 new-build social homes, 4,000 local authority provided affordable-purchase homes and 2,000 cost-rental homes per year, up to 2030.

Specifically for 2022, it has set targets for the construction of 9,000 social homes, less than the average for the plan, 4,100 affordable and cost-rental homes, again less than the 6,000 average, and 11,500 private homes.

Perhaps surprisingly, Budget 2022 is essentially sticking with the figures announced a month ago, although an additional 30 affordable homes, or possibly cost-rental homes, are to emerge out of somewhere with Minister for Housing Darragh O’Brien announcing this figure as 4,130 on Tuesday.

It is at best notional, anyway, as figures indicate a total of 75 cost-rental homes and possibly eight affordable-purchase homes will have been provided by the end of this year. None of these homes are in Dublin city, where the housing needs are most acute.

Reaction

Reaction to the housing budget was damper than usual, with most having got their joy or outrage out of their system over the Housing for All plan.

The extension for another year of the help-to-buy scheme, a tax relief for first time homeowners, has been welcomed by the Irish Home Builders Association. Landlords’ representative group the Irish Property Owners’ Association, however, said it was “disheartened, disillusioned and disappointed” that the Government had done nothing to stop landlords leaving the market.

Labour housing spokeswoman Senator Rebecca Moynihan said it was a “landlords and landowners” budget. “Renters remain relegated to second-class citizens. Nothing will be done to tackle unaffordable rents. Too many people are struggling to pay high rents, or simply can’t find an affordable place to live. There are tax breaks for landlords in the budget but nothing for renters.”

Tenants advocacy charity Threshold and the Irish Council for Social Housing both welcomed the “commitment” to increasing social, affordable and cost-rental housing. Threshold, however, raised concerns about the long lead-time for the new zoned land tax (ZLT), “as well as the very low rate of taxation”. The new tax on land hoarding – ZLT – will replace the ineffective vacant-site levy.

Mr O’Brien acknowledged the new tax would not be charged until 2024, but said the unsuccessful vacant site levy it replaces would continue to apply in the meantime. The new tax would be collected by the Revenue Commissioners, which gives it, despite its long lead-in time, the best chance of success of all the budget’s housing measures.

Source: IRISH TIMES

 

Under-resourced, under-funded and ignored – how construction can prepare for a changing climate

Progress on protecting buildings from the impact of climate change is behind where it should be, and the need is only becoming more urgent. 

“Climate change has arrived.”

That was the clear message in a key paper handed to ministers in the UK this summer. The declaration in the Climate Change Committee’s Advice to Government report came just weeks before Germany was hit by devastating floods and London was deluged by heavy rainfall.

And the committee, set up in 2008 to advise Westminster on progress towards minimising and preparing for global warming, had more stark news: “Further warming is inevitable,” the report stated, part of a broad suite of studies forming the committee’s third risk assessment.

Reading on, ministers learned that 7,000 people could die from heat-related causes in 2050 – up from an average of 2,000 per year at present.

Then there is the risk from increased rainfall. Figures from the committee show that expected annual damage to property from surface-water flooding could soar from £139m today to £312m by the 2080s. This could affect not only individuals but critical infrastructure such as power stations and water-treatment plants.

After that bleak UK assessment came a global report from the Intergovernmental Panel on Climate Change (IPCC), branded by the head of the UN as a “code red for humanity”.

Hope, where it appears, lies in mitigation rather than prevention of a changing climate. The UK “has the capacity and the resources to respond effectively,” the committee report says.

But here’s the sting: “Alarmingly, new evidence shows that the gap between the level of risk we face and the level of adaptation under way has widened,” the report adds. “Adaptation action has failed to keep pace with the worsening reality of climate risk.”

Contractors must plan

Building flood defences and better designed buildings are just two of the measures required – and construction will play a key role in both.

The committee urges ministers to take firm action, including updating Building Regulations and the National Planning Policy Framework to encourage introduction of measures such as passive cooling and sustainable drainage in new and refurbished buildings.

The Building Safety Regulator – created in the wake of the Grenfell Tower tragedy – could also have a role to play in ensuring greater climate resilience, according to the report.

Mott MacDonald UK and Europe sustainability lead Kim Yates says the construction industry needs to think about changing weather patterns in everything it does.

“It is not just projects looking specifically at resilience that are the future; we have a duty of care to take climate resilience into account on all our projects,” she says, conceding it is “extremely challenging” in the face of uncertainty.

“In our flood-risk assessments for highways projects, for example, we look to ensure that the drainage design will accommodate a 40 per cent increase in flooding,” Yates says. “This is in line with government guidance and, on the basis of our current climate change modelling, this is enough. But what if our models are wrong? How do we allow for the fact that our models may be too optimistic?”

Storm events that used to happen every 1,000 years are now happening once a century, she explains, and it is hard to know what a one-in-100-year flood will be in a few decades’ time.

In July, two regions in the west of Germany saw almost twice the amount of rainfall they usually receive throughout the month in just 48 hours. Days later, an even more extreme deluge landed in the Chinese city of Zhengzhou in just one hour. Both incidents claimed a number of lives. Later the same month, hospitals and tube stations in east London were hit by flash floods.

In the UK, Yates says resilience measures have to be considered within a climate change context when environmental impact assessments are submitted to planning authorities. However, such impact assessments are currently only required for a “small proportion” of schemes and those are usually selected on the basis of environmental impact rather than resilience requirements. “The regulatory drivers are not there to consider climate resilience in everything we build,” Yates says.

A government spokesperson insisted in a statement that all developments should take climate adaptation into consideration. It has also launched a research programme for securing infrastructure (see box, below).

Government response

In response to the Climate Change Committee’s warnings, the UK Government has launched a £5m research programme to help it become “more resilient to the impacts of climate change”.

The four-year scheme, called Climate Services for a Net-Zero Resilient World, aims to help the country respond to the impact of global warming on national infrastructure – including heatwave impacts on buildings, power stations, electricity networks and flooding.

It is being led by a consortium of environmental scientists, including those from University College London and the UK Centre for Ecology & Hydrology.

Climate minister Anne-Marie Trevelyan, who is also construction minister, says: “This new programme brings together the brightest and best climate scientists, universities and research institutions from across the country to provide us with the latest tools, advice and research to inform future climate policies at a national and local level. This research will be vital to ensure we’re making the best possible choices on our journey to net-zero, making certain the UK is adaptable and more resilient to the effects of climate change.”

Resilience versus net-zero

Despite the clear message from the Climate Change Committee, preventing – or minimising – global warming still holds sway as a primary focus. The Paris Agreement saw world leaders promise to keep the change in global warming below 2 degrees above pre-industrial levels, while the UK Government has made its bold pledge of net-zero carbon emissions by 2050.

Climate Change Committee adaption member Michael Davies admits there are challenges for governments trying to push resilience measures alongside carbon reduction: “You have to adapt to climate change that has happened and will continue to happen regardless of net-zero targets,” he says. “But it is challenging to have metrics and clear messaging for adaption.”

Yates insists the two goals must be aligned: “We are thinking about decarbonisation and climate resilience from the outset of any projects we embark on,” she says. “It is built into our processes.”

The company employs specialists who can interpret meteorological data and advise on adaption strategies, as well as carbon-focused infrastructure professionals. “For our engineers and designers, it’s about being climate-change literate and understanding the [trends] so we can build in resilience to compensate,” Yates adds.

However, trying to reduce carbon emissions while building to withstand more extreme conditions can put the two goals in conflict. “We are trying to arrest climate change by building in a low-carbon way, which requires new materials and techniques,” Yates says. “You have to be aware of whether your new low-carbon concrete will survive with higher levels of carbon dioxide in the atmosphere.

“You have to build an asset that is fit for a future where we don’t decarbonise fast enough. You can’t concentrate on a low-carbon material that would see a building fall over when it gets hotter.”

Projects to protect people against changing weather will become increasingly prevalent over the coming years, she predicts: “We had a project in Bangladesh looking at the resilience of bridge assets to climate change, making sure the infrastructure stays in place with higher carbon dioxide levels, fluctuating water levels and so on. In the UK, making sure our building stock can cope with wetter winters and hotter summers is important from a climate-resilience perspective.”

Client demand

Clients are also becoming more aware of the benefits of building in resilience, according to Yates. “We have worked on projects where we identified the risk of, for example, tiles blowing off in high winds, explained it to the client, and the design was changed,” she says. “It can be a differentiating factor in a bid. If you do not have a good grip on climate change and the impact it will have, you will have a lot of issues in the future as there is increasing pull from clients to ensure it is dealt with.”

Dr Anastasia Mylona, head of research at the Chartered Institution of Building Services Engineers, says climate change will exact a number of impacts on the built environment. Intense rainfall can lead to flash flooding in unexpected places, and potentially cause landslides that damage infrastructure, she adds. On the other side of the coin, droughts can cause subsidence and even create the soil conditions for further flooding.

“Extreme events will become more frequent, more extreme and more destructive,” she says. “There is a cycle because, if rail lines buckle in the heat, then the engineering to fix it is carbon-intensive and uses resources. You need more of everything if you keep fixing things in the way we have been.”

Mylona stresses that engineers need to reduce their impact on the environment, slashing embodied carbon and actually doing less new-build work. But she adds that where new buildings are created, they need to be extremely well considered: “Have a good understanding of the risks of the future and ensure your buildings can deal with them,” she says. “We still build homes in floodplains – fair enough – but please have a strategy. There is very little thought going into making developments more resilient.”

A lack of specific design criteria and resilience-performance levels in planning guidance leaves dangerous grey areas, Mylona adds. “Everyone interprets advice as they want. You have fully glazed towers in London, homes built wherever, and that tells you no-one is checking how new buildings and infrastructure will cope with future events.”

Lack of knowledge is not an excuse available to modern day town planners and construction clients, she adds. And climate-resilience measures do not have to be over-complicated or expensive. “We have a lot of information available. Councils and organisations like the Environment Agency have a lot of tools. They know which areas are more prone to heat or flooding. Plans can be put in place. You can add shading devices such as shutters or overhangs to increase the thermal comfort of buildings – we are talking about small engineering interventions. It is common sense but it’s missing. When you build a development, you can think about where the water will go – using sustainable drainage systems such as swales. Other countries deal with these risks all the time and have solutions in place.”

Echoing the Climate Change Committee, she calls for the government to intervene. “Engineers can’t solve the problem on their own. They need support and motivation. Private clients and councils are sometimes motivated to do the right thing but unfortunately the vast majority are reliant on profit. Without a policy driver it’s very, very difficult for engineers to tell clients to implement something.”

A call for more action

Sadly, a big tragedy may be needed to influence ministers, she adds. “Every time we have a shock event, everybody talks about it. The fire at Grenfell Tower changed so much in terms of policy and regulation. Unfortunately, people in government respond much quicker and more effectively after a disaster.”

The government insists the planning system does take factors such as flood risk, coastal change, water supply and rising temperatures into account. A Ministry of Housing, Communities and Local Government spokesperson said in an emailed statement: “Our national planning policy is clear that local councils should take into account the impacts of climate change and responsibilities to the environment, as well as prioritise building on brownfield and urban land, so that we put green spaces, communities and environmental protection at the heart of the planning process.

“We are also ensuring new homes are producing less emissions and that new housing developments are leaving nature and biodiversity in an overall better state than before development.”

A consultation earlier this year called Future Building Standards also set out proposals to reduce the risk of overheating in new residential buildings via Building Regulations. However, Mylona stresses that contractors do not need to wait for the future to prepare to deliver climate-resilience work. “Engineers are in a good position technically to propose and implement solutions to improve the resilience of the built environment but they need the support of regulation, common understanding and sometimes funding.”

Baroness Brown, chair of the Climate Change Committee’s adaption team, describes adaption as the “Cinderella” of climate policy. It is still “sitting in rags by the stove, under-resourced, underfunded and often ignored”, she warns. At some point soon, as this metaphor implies, we are due a miraculous transformation. In the absence of a fairy godmother, it would benefit contractors to ready themselves now if they hope to live happily ever after.

 

 Courtesy: GREG PITCHER @ Construction News

Climate Change

Climate Change

Construction In Ireland – Key Trends And Opportunities To 2025

Construction Network Ireland expects the Irish construction industry to expand by 10.9% in real terms in 2021 – up from a decline of 12.7% in 2020.

The industry’s output was affected by the COVID-19 outbreak and the subsequent lockdown measures imposed to contain the virus’s spread. This has continued to weigh on construction progress and has created supply chain disruptions and project delays.

The industry is expected to be further affected in Q1 2021 owing to the closure of non-essential construction sites from early January to early March 2021. The initial effects of the latest lockdown restrictions on the industry are reflected by the fall in Ulster Bank’s Construction Purchasing Managers Index (PMI) (Explained below). It fell to 21.2 in January 2021, following an average score of 42.1 in 2020. A further downside risk to the industry’s outlook stems from the double-digit year-on-year (Y-o-Y) contraction in the number of planning permissions granted during the first three quarters of 2020.

The construction industry’s output is expected to pick up pace and improve gradually over the coming months, following the re-opening of the industry. Output will be supported by the government’s investments in roads, housing, hospitals, and school projects. In the 2021 budget, announced in October 2020, the government allocated EUR10.1 billion towards capital expenditure, with the housing and transport sectors accounting for 27.3% and 24.5% of the total allocation, respectively.

Over the remaining part of the forecast period, the industry is expected to register an annual average growth of 4.4% between 2022-2025, supported by the government’s investment in transport and housing infrastructure, as well as its focus on reducing greenhouse gas emissions in the country, which will attract public and private sector investment on renewable energy projects.

For more information please click on:

Construction in Ireland – Key Trends and Opportunities to 2025 (H1 2021)

 This report provides detailed market analysis, information, and insights into the Irish construction industry, including:
– The Irish construction industry’s growth prospects by market, project type and construction activity
– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Irish construction industry
– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Ireland. It provides:

– Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Ireland, featuring details of key growth drivers.
– Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
– Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
– Listings of major projects, in addition to details of leading contractors and consultants

Construction Confidence Reaches 2 Year High – PMI

The latest results of the Ulster Bank Construction PMI point to a further significant contraction in Irish construction activity in March.  The headline PMI remained considerably below the 50 no-change level for the third month in a row, as activity across all sub-sectors declined sharply for the third consecutive month. 

While the pace of decline in overall activity eased somewhat relative to the very extreme weakness registered in January and February, the March results again highlight that activity was markedly restrained by the pandemic-related restrictions throughout the first quarter.

Despite what has undoubtedly been an exceptionally weak start to the year, survey respondents are becoming increasingly upbeat about the prospects for recovery. 

The future activity index jumped again in March to stand at its highest level in two and a half years as almost 60% of firms expect an expansion of activity over the next twelve months.  The jump in confidence was underpinned by the expectation of improved business conditions for the sector as restrictions are eased and as pent-up demand is released. 

Indeed, the recent government announcement that residential and childcare-related construction can restart from this week marks an important, albeit partial, step in the sector’s recovery journey.

Source: Construction Network Ireland

 

Construction Technology to Watch in 2021

Innovative construction technology enables massive improvements in the safety, efficiency and productivity of large-scale construction projects.

Construction has a long history of innovation that has spurred impressive advances in the types of buildings we can produce. For example, the development of cofferdams and caissons opened the door for majestic underwater structures. Meanwhile, advancements in tower crane technology propelled construction upwards, opening up the possibility for massive skyscrapers.

After a long construction boom, the past year amidst the pandemic was difficult for the construction industry as it strived to protect its workers and keep job sites open. The industry always responds to difficult periods with an increased focus on innovation, so the coming year is likely to see further development of automation and technologies that are reshaping construction as we know it.

Below, we’ve outlined 10 of the most important technologies to watch in 2021.

1. Augmented Reality

Augmented reality (AR) is a digital layer of information that enhances a view of the real world. By using a mobile device with AR capabilities, construction professionals can look at a job site with additional information laid directly on top of the real world.

For example, a construction worker could point a tablet at a wall, and the tablet could display the building plans for that wall as if they were actually part of the environment. Augmented reality has huge implications for construction because it provides additional information exactly where it’s needed.

Here are a few other uses for augmented reality:

  • Automate measurements: By measuring a physical space in real-time, AR technology can help construction workers accurately following building plans.

  • Visualize modifications: By layering potential project modifications directly onto the job site, contractors can visualize potential changes before committing to them.

  • Provide safety information: By recognizing hazards in the environment, augmented reality devices can display real-time safety information to workers.

While augmented reality can be used on a tablet or other portable computer, the future of augmented reality will likely rely on AR glasses, which would enable hands-free access to crucial information at all times. These augmented reality glasses are one of several construction wearables that are likely to gain traction over the next year.

2. Construction Wearables

Construction wearables offer numerous benefits for productivity, but they may succeed in rapid adoption especially because of their upside for safety.

Even before the pandemic, construction was one of the riskiest industries to work in, with accidents like falls and collisions with equipment accounting for hundreds of worker deaths each year. Wearable technology offers the possibility of added safety for workers, potentially preventing injuries and deaths across the industry.

Here are a few construction wearables that are already available today:

  • Smart boots: Powered by walking, smart boots can detect workers at risk of a collision with nearby construction vehicles equipped with sensors.

  • Smart hard hat: By sensing brainwaves, smart hard hats can detect “microsleeps,” which put workers at risk of injury.

  • Power gloves: When worn on a workers’ hands, power gloves increase dexterity and strength, helping reduce overuse injuries.

Other wearables, like smartwatches, monitors and goggles, improve lone worker safety, check for fatigue and enable contact tracing. We’re at the beginning of a revolution in construction that will help improve the efficiency and safety of each individual worker.

That said, the technological benefits for workers don’t stop with small, portable wearables, but also include larger personal devices like construction exoskeletons.

3. Construction Exoskeletons

Construction exoskeletons, or exosuits, are wearable machines with motorized joints that provide extra support and power during repetitive movements like bending, lifting and grabbing.

While exoskeletons originated in rehabilitation programs, they are gaining attention as a tool to reduce injuries and increase efficiency for construction workers. Some exoskeletons are powered by electricity and others simply redistribute weight throughout the body, but all of them have advantages for workers performing tough jobs.

Here are a few examples of exoskeletons being used on construction sites:

  • Back support exosuits: A powered suit that fits around the shoulders, back, and waist reduces strain during lifting.

  • Crouch support exosuits: Attached to the legs, a crouch support exoskeleton acts as a “chair” even when no chair is present, making it easier to crouch for long periods of time.

  • Shoulder support exosuits: By redistributing weight from the shoulders, exoskeletons can prevent fatigue when performing overhead lifting.

There are also full-body construction exoskeletons, which enhance strength and reduce fatigue for difficult lifting jobs.

Though exoskeletons are making strenuous jobs easier for construction workers, the industry is also looking toward construction robots to ease the burden even more by offloading certain risky and difficult tasks to machines.

4. Construction Robots

Construction robots are still a ways off from completely taking over the industry, but a number of designs and proposals are on the table as the industry considers ways to deal with a labor shortage and the need for social distancing.

Three main types of robots seem poisoned to help reshape labor in the construction industry:

  • Factory robots: Factory robots are able to perfectly and repeatedly perform a single job, like simple manufacturing tasks.

  • Collaborative robots: Collaborative robots can be used on a job site to ease the burden on a human companion, for example by carrying tools or equipment.

  • Fully autonomous robots: Similar to the robots of science fiction, fully autonomous robots (which already exist in some form today) can scan the environment and perform complex tasks with tools independently.

While robots like this have not yet been widely adopted in construction, other formerly futuristic technology is already widespread. For example, drones are now a common sight on construction jobs, performing work that would have been cost-prohibitive just a few years ago.

5. Drones

Drones have already made an impressive contribution to construction, and their influence is set to grow in the coming year. Small, camera-mounted, flying drones are able to reduce the costs of processes that used to be extraordinarily expensive.

Here are just a few of the ways that drones are making a difference on job sites:

  • Topographic maps: Mapping is vital prior to construction. Aerial drones survey large amounts of land quickly, reducing mapping costs by as much as 95%.

  • Equipment tracking: Purchased or rented equipment can quickly get misplaced on a vast job site, but drones can automatically keep track of all equipment on site.

  • Security surveillance: Job sites are vulnerable to theft of materials and equipment when no one is working, but drones can monitor a site even when no humans are around.

Drones also have implications for progress reports, personnel safety and building inspections. One of the ways that drones—and other types of construction technology—will continue to improve is by increased use of artificial intelligence and machine learning.

6. Artificial Intelligence and Machine Learning

Artificial intelligence is the ability for technology to make decisions independent of human input, while machine learning is the ability for technology to “learn” from past experiences. Both of these technologies have massive implications for construction, where efficient and intelligent decision-making has notable effects on productivity and safety.

Take a look at some of the ways AI and machine learning are already re-shaping construction:

  • Improved safety: For example, by using machine learning processes, software can analyze job site photos and identify risks and safety violations.

  • Decreased costs: By analyzing past projects, machine learning software can identify inefficiencies and propose more effective timelines.

  • Better design: Because machine learning software can learn over time, it can improve building design aspects by exploring hundreds of variations.

Machine learning and artificial intelligence will soon affect every aspect of a construction project, from planning all the way through post-construction. Additionally, AI and machine learning are improving novel methods of building, like modular construction, which is a growing part of the construction sector.

7. Modular Construction

Modular construction is an alternative building method in which structures are constructed off-site, delivered in pieces, and then assembled by cranes.

Because construction of the building happens at the same time the site is prepared, modular construction can be up to twice as fast as traditional projects.

Other benefits of modular construction include:

  • Decreased construction waste: Since many buildings are constructed simultaneously in one factory, excess materials from one project can easily be used on another.

  • Lower emissions: By reducing total deliveries as well as total time spent on-site, modular construction decreases carbon emissions.

  • Optimized by machine learning: In the factory, building processes are optimized over time through software enhancements, further reducing waste and increasing efficiency.

While modular construction currently represents a small fraction of the overall industry, two-thirds of contractors believe that it will experience increased demand in the coming years. A related technology that benefits modular construction as well as traditional construction is 3D printing.

8. 3D Printing

3D printing involves layer-by-layer creations using machines. Like traditional printers, 3D printers take a digital design and render it in the physical world. Unlike traditional printers, however, 3D printers are not limited to a flat document, but can instead use a variety of materials to create objects or even entire structures.

Though 3D printing is still in its infancy with respect to large-scale construction projects, entire houses have already been printed using this technology. Here are some of the ways that 3D printing is likely to influence construction:

  • Efficient materials usage: A growing field is invested in printing building materials (like cinder blocks) or entire structures (like bridges) out of concrete, reducing waste as opposed to traditional methods.

  • Increased speed: Compared to traditional building, a 3D printed structure can emerge in its entirety within a few days.

  • Eliminating errors: Once a 3D printer receives a design, it renders it perfectly in the physical world, eliminating costly errors.

Though 3D printing is likely to have a huge impact on construction in the coming years, the technology is still relatively new and untested. In the meantime, another 3D technology has emerged to increase efficiency on job sites: building information modeling.

9. Building Information Modeling

Building information modeling (BIM) is the process of creating a digital representation of a structure (a “model”) prior to building it. An accurate representation of the building enables everyone involved in the construction to anticipate difficulties, eliminate risk, determine logistics and increase efficiency.

Building information modeling is useful for all stages of construction:

  • Before construction, BIM helps reduce the need for future change orders by anticipating challenges.

  • During construction, BIM improves communication and efficiency by offering a central hub for up-to-date and accurate reference documentation.

  • After construction, BIM creates the possibility for building management for the structure’s entire lifecycle by providing owners with valuable information about every detail of the building.

Building information modeling may currently be one of the most important developments in construction because it affects and improves every aspect of the construction process. That said, an emergent new technology may ever further revolutionize construction with its innovative approach to information: blockchain.

10. Blockchain

Blockchain technology, first used for the online cryptocurrency “Bitcoin,” is a way of recording information that has broad applications for construction project management. Though difficult to understand at first, the importance of blockchain is that it is an intuitive way to increase project efficiency.

A few aspects of blockchain make it particularly appealing for the construction industry:

  • Secure: All data related to the project is encrypted, so proprietary information stays protected.

  • Decentralized: Project information is not stored in a single location, and it is accessible from anywhere.

  • Scalable: Since it doesn’t require a massive data warehouse, blockchain can be scaled to very large projects.

In the coming years, blockchain is likely to influence many aspects of construction management, from contracts and asset management to payments and materials procurement. Blockchain is helpful for the entire length of a project, and it helps store information that is accessible even after a project is completed.

Technology is moving rapidly in the construction industry, which is currently looking for ways to innovate and improve processes. Today, technological innovations in construction affect every aspect of the industry, including project planning and safety for workers. With the right equipment and technology, the construction industry is ready for its next leap forward.

SOURCE: BIGRENTZ

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Exempted Development - Section 5

All development that is not exempted under planning law requires planning permission.

The Planning and Development Act 2000 and Planning and Development Regulations 2001 as amended set out categories of development that are exempted development (in other words, exempted from the general requirement to obtain planning permission).

The legislation sets out various thresholds relating to, for example height or size. If these thresholds are exceeded, then the exemptions no longer apply and planning permission is required.

A person is entitled to carry out exempted development subject to the terms of the legislation.

There is a mechanism provided under Section 5 of the Planning and Development Act 2000 as amended where any person on payment of the relevant fee (currently €80) may request a declaration from their local Council as to whether any particular constitutes development* or exempted development*.

(* these terms are specifically defined in planning law)

In other words, a Section 5 Declaration Request is the procedure to follow if you want the local Council to confirm in writing whether or not any particular development requires planning permission (in other words, whether or not any particular development is exempted development).

To request a Section 5 Declaration, you must: 

The local Council office may require an applicant to submit further information to enable the assessment and determination of the matter.

If, following the issuing of a Section 5 Declaration by the local Council office, you are dissatisfied with the Council’s determination, you may on payment of a fee and within 4 weeks of the date of the declaration refer the matter to An Bord Pleanála for review – refer to An Bord Pleanála’s website for details.

Trends In The Construction Industry - 2021 And Beyond

Remote Technology:

“Remote” is the world of the times and anything that promises that a task can be completed remotely is going to grow quickly. This is true for both building tasks and administrative tasks.

Almost no commercial jobsite now is without a Drone. Construction is the fastest growing adopter of commercial drones according to DroneDeploy, a drone surveying and mapping app. By peering down at a project from above, contractors find invaluable information. Safety issues are quickly discovered, quantities of materials on site can be accurately estimated, and orthomosaic maps can be created making even the largest job site visible as a whole. Substantial financial savings are achievable as a result.  Safety information can reduce insurance claims, accurate assessment of materials and progress can lead to more timely information for Pay Requests and can help make necessary adjustments to manpower and scheduling to avoid delays.

In the office, technology is greatly enhancing the flow of information. Blockchain technology is a method of user-verified, real time input of an endless number of data points, from transactions, to payments, to completion of tasks and revisions of schedules.

This technology is becoming simpler to use and is being rapidly adopted in large-scale work, with inroads now being made even on smaller jobs.

Modular Construction:

Modular construction and pre-fab building, which was already steadily on the rise, should see a huge boost in interest in the post-pandemic era. Both the manufacturing process and the result are perfectly suited for the times.

Manufactured buildings are already built in a way that promotes low worker density. The manufacturing is done in enormous, airy buildings, with plenty of room for distancing.  And the equipment used — ceiling cranes, conveyors, and lifts — is specifically designed to let fewer workers move larger components, reducing worker proximity and labor costs.

Once manufactured, these buildings are typically small, limited by the ability of trucks to move them. As a result, they’re perfect for a world where separation is required.

They are ideal if a business needs individual offices with independent systems, a remote worker needs an office at home, or a hospital needs a few additional rooms. Prefabricated buildings have the dual advantage of being affordable and also potentially temporary. In times of uncertainty, a temporary solution is often the best option. This construction trend isn’t going anywhere.

Courtesy: Level Set Blog

COVID 19 and the effects on the Construction Industry

According to Construction Information Services (CIS), €17.9bn in project work has been halted in Ireland due to current COVID–19 industry shutdown, with a further €2.7bn in stoppages in Northern Ireland.

The COVID-19 pandemic has had a profound impact on all of our lives. While it is much too early to assess the full implications, the latest assessment from CIS estimates the direct impact on construction activity on the island which has ceased beyond works directed at repurposing medical and care facilities, and essential maintenance works.

CIS has taken a snapshot of construction activity at the end of March, which quantifies the impact across the various sectors. Its researchers have identified 1,137 active sites in the Republic of Ireland that have ceased, with a combined overall value of €17.9b.

In Northern Ireland, they have identified a further 345 active sites, with a combined value of £2.7b.

Their latest report examines this impact in detail across the regions and sectors. It provides a baseline by which to monitor recovery, which will inevitably resume with sites previously under construction. The report outlines the economic context, drawing on preliminary work by EY Ireland and details the levels of support available in both jurisdictions. The speed with which the industry can get back to the levels outlined in the report is dependent on many variables including financial capacity, materials and supplies, workforce availability, workplace conditions, legislative barriers and Government policy.

Courtesy: Robbie Cousins - Construction News

Invest in property in Ireland and Europe and gain an EU Passport

We have ‘ready to go’ property portfolios in Ireland for Hong Kong residents to invest in.

Investment will get your funds returned plus+ substantial return, as well as a European Union Passport.

URBAN organises; the Legals, Banking, Passports, any Architectural Design, Project Management, Construction - All In-House.

Ireland is ranked first for High Value Foreign Direct Investment in the World

Get in touch with us to find out about residency rights in Ireland under the Government’s Immigrant Investor Programme.

The Immigrant Investor Programme was established in 2012 during the financial crisis and is administered by the Department of Justice.

It’s widely used to secure investments from groups of foreigners for single projects such as housing, primary care centres and nursing homes.

The Immigrant Investor Programme enables foreigners from outside the European Economic Area to secure residency in Ireland for an initial period of two years.

The residency can be extended up to 10 years if certain criteria are met, and successful applicants and their families don't have to actually live in Ireland, but must visit once a year.

To qualify, the applicants must apply to invest via the programme in one of four categories.

One option is to invest at least €1m across any number of Irish companies for a minimum of three years. The businesses can be a start up established by the investor, or an existing business registered in Ireland. The investment must support the creation or maintenance of employment.

Alternatively, investors can opt to make a minimum investment of €1m in an approved investment fund; invest a minimum of €2m across real estate investment trusts listed on the Irish stock exchange; or provide a minimum philanthropic endowment of €500,000 to be used in a project to benefit the public in the arts, sport, health, cultural or educational fields.

Email us on: hello@urbanac.ie or call us in Dublin on +35312544488 to discuss how we can help you invest in Ireland and Europe and gain an EU passport

PC Sums in Construction - What do they mean?

Prime Cost sums in construction (PC or PC sums) is a sum in the contract to provide an idea of the basic cost/price of some material or items for pricing the tender. Most of the time, for the material items, which are with a range of a price (like Tiles, Sanitary fitting, Light fittings, etc.) to price bid on an equal basis.

It is a sum provided for work or services to be executed by a nominated subcontractor, a statutory authority or public undertaking or for materials or goods to be obtained from an approved supplier.

The main contractor is eligible to get his mark up and attendance costs to the above allowance.

Benefits of allowing Prime cost sums also later on client or consultant can make certain changes of the specification changes to the prime cost items without causing any variations.

Actual cost may be higher or lower than the allowed Prime cost sum, and in such cases, the contractor is required to provide all the relevant cost details with supportive documents & justify this actual cost.

Summary:

  • A PC sum is an allowance/money provision.

  • It is provided for getting work or materials from a nominated subcontractor or supplier.

  • Main Contractor is eligible for Profit Mark up or attendance costs.

  • PC Sums are added items like; tiles, sanitary items, lighting fixtures, etc., to get an idea of the price of such particular material or item to be priced by the tenderer.

  • It is provided for a certain element of the works that are not adequately described, or such details can not be given at the tender stage for tenderers to price accurately.