G&T Flying High at Heathrow

Heathrow airport is in its third year of the Independent Fund Surveyor (IFS) development framework. The aviation sector is one of the most diverse in the industry and an important part of developing infrastructure across the world. G&T is assisting clients with airport expansions to accommodate increasing air traffic and creative solutions are being sought to support the future growth of air travel in densely populated and politically sensitive areas.

G&T has experience across a number of key projects around the globe and has given advice on iconic developments such as the Dubai International Airport and the Manchester City Airport expansion. We also provided project management services for the Air India Relocation and delivered several elements of the Heathrow development programme, where we were also appointed as Independent Fund Surveyor for their new framework back in 2014.

www.gardiner.com

 

 

Find out more about Heathrow in our infographic by clicking the link below…

Heathrow Project Spotlight

 

 

 

Want to hear more about our work in the aviation sector? Visit our website www.gardiner.com.

Keep up to date on project information by following us on Twitter @gt_llp.

Are you working on Heathrow? We want to hear from you! Leave a comment in the box below.

Building with Bamboo – AA’s Haiti Visiting School Update

G&T is proud to support the Architectural Association’s (AA) Haiti Visiting School for the second year running. The school was set up as an annual programme following the catastrophic earthquake that hit Haiti in 2010. Its aim was to introduce new methods and innovative materials into the construction industry, teaching the next generation of Haitian architects alongside students and designers from across the world about the importance of finding lightweight, durable and sustainable resources. Working in partnership with the AA and the programme’s director, John Naylor, G&T is looking forward to helping another class of Haitian architects look to the future of building and construction innovation. Read on to find out more about the programme… 

www.gardiner.com

Haiti Visiting School Programme

The AA was originally formed in 1847 and is the UK’s oldest school of architecture. As an extension of the Association’s ‘unit system’ the Haiti Visiting School embodies the programme’s objectives of Education, Reforestation, Infrastructure and Construction and will this year be extended from the previous two week workshop into a fully structured education programme which will come to an end this summer.

An estimated three million people were affected by the earthquake, with one million people left homeless and 250,000 buildings destroyed. Yet one month later an earthquake 500 times more powerful hit central Chile, resulting in the deaths of 525. This was a disaster of Haiti’s lack of lightweight building materials, working practices and construction, not nature. The devastation was increased by the trend in the Haitian construction industry to use concrete blocks rather than more lightweight materials. The programme was set up to provide support and introduce innovative building methods using alternative resources and more sustainable materials such as bamboo.

www.gardiner.com

Bamboo Plantation

The importance of bamboo in Haiti’s history can be traced back to the 1950s, where this strong but flexible plant was introduced as a means of restoring the ecology with the potential to be a cheaper alternative building material during tough economic conditions. Bamboo can grow up to one meter a day, reaching heights of up to 30 meters tall if left uncut. Not only is this lightweight material naturally adapted for construction but it also absorbs twice as much carbon as trees, allowing the community to earn money from growing it as part of the worldwide drive to curb carbon emissions. The students taking part in the programme not only learn about bamboo’s uses in the built environment but also develop their own understanding of the material, designing new uses for it and new products, which if successful, will help boost the value of bamboo in the recovering Haitian economy.

www.gardiner.com

View across the bamboo  

In 2015 G&T collaborated with the Haitian Visiting School programme director, John Naylor, to introduce the ‘G&T Award for Determination’, which recognises one student each year who has overcome challenging circumstances in order to participate in the course. G&T is proud to once again be presenting the award at the end of programme for 2016, when the ceremony will be held on the 11 August.

www.gardiner.com

John Naylor

Programme Director, John Naylor commented:

“Once again we are grateful for the support and extremely thankful for the additional enthusiasm in organising the ‘Award for Determination’. In a country with such a rich architectural heritage as Haiti, having such a cutting-edge international firm as Gardiner & Theobald providing this attention adds a great deal to the classroom culture for all of us, and means an incredible amount personally to the recipient.”

Want to find out more about the Haiti Visiting School? Visit their website: www.haiti.aaschool.ac.uk or follow the programme on Instagram at: @aahaitivs.

Keep up to date on the programme by following us on twitter @gt_llp

Want to hear more about G&T’s social impact initiatives? Visit our website www.gardiner.com

 

10 Hudson Yards – Project Spotlight

10 Hudson Yards has officially opened its doors to employees for the first time! The 52-storey building is an iconic development in Manhattan’s West Side and the new headquarters for luxury brand Coach, Inc. as well as many other high-end brands. G&T provided both cost and project management services on this 1.8 million sq.ft development. Read on to find out more about this groundbreaking scheme…  

www.gardiner.com

Coach’s new headquarters

Hudson Yards is the largest private real estate development in New York’s history and following its completion will see more than 125,000 people a day walk its streets and enter its buildings. This iconic development in the heart of New York will become home to some of the world’s most innovative businesses and Coach, Inc. has been a strategic partner in the development from the very beginning.

10 Hudson Yards will be home to 7,000 employees, featuring panoramic views and interwoven with the world famous High Line.

As part of the project team G&T’s Joanna Cuevas commented:

www.gardiner.com

G&T’s Joanna Cuevas

“G&T New York has had the pleasure of working with a dynamic client that represents American design at its finest, demonstrating a commitment to the  redevelopment of Manhattan’s west side as the first tenant partner in 10 Hudson Yards. Coach, Inc. will forever hold the legacy of taking a leap of faith in partnership with Related Hudson Yards in the first building to be completed in the complex. G&T was at the forefront of this project beginning with the challenging partnership negotiation with Related, seeing the client through several design and marketing changes, and adjusting to construction market fluctuations over the course of the project. We are proud to have worked with such a knowledgeable and determined design and construction team and look forward to the success of Coach, Inc. in their new headquarters.”

FullSizeRender (1)

Hudson Yards atrium

G&T provided project and cost management services for two of the major tenants – Coach and L’Oréal USA. As anchor tenant and part owner of the new building, Coach will occupy floors 6-19 and the interior fit-out includes a design studio, small-scale manufacturing capability and office space.

As L’Oréal’s tenant representative for their headquarters relocation, G&T provided technical assistance on an extensive lease negotiation and offered guidance on key base building modifications including the addition of a terrace and raised floor system.

 

Following the completion of the first phase of this iconic development G&T’s Gordon Kerr stated:

www.gardiner.com

G&T’s Gordon Kerr

“The G&T Coach team feels extremely proud to be involved in the first phase of such an iconic and high profile real estate development in NYC. Managing the interior fit-out of the Coach floors and representing Coach on the Core & Shell project provided many challenges. To bring the project to a successful completion has been incredibly rewarding.”

Want to find out more about this project? Read our press release.

Find out more about G&T’s experience by visiting our website www.gardiner.com

Keep up to date on project information by following up on twitter @gt_llp

Review from the Chair – Tony Burton reflects on his time at the CIC

Last week G&T’s Tony Burton came to the end of his tenure as chairman of the Construction Industry Council (CIC) and handed over the mantle to his successor Professor John Nolan.  Tony will now step back into the role of deputy for the next 12 months to complete the hand-over period. The CIC is the representative forum for professional bodies in the construction industry providing a single voice for professionals in all sectors of the build environment. As a senior partner on G&T’s main board and chairman of the CIC, Tony has been able to get involved with vital initiatives aimed at targeting key issues within the built environment, working alongside government to find solutions to improve the future of the UK’s construction industry. Following his two year term Tony reflects on the changes that have happened since he was appointed and looks to the future of the CIC. Read on to find out more…  

I was appointed as chairman of the CIC back in July 2014 and one of my first actions was to set out several challenges for the organisation to get involved with and play a major part in achieving over the next two years. I felt it was a vital part of my role to highlight key industry issues including the skills shortage, the lack of education programmes available and diversity and inclusion to ensure we were doing all we could to encourage others across the property and construction industry to get involved.

One major concern for the industry over the last two years has been the skills shortage. This is something which needed addressing as soon as possible and the industry had to start looking at other methods of attracting different groups of people into construction.

www.gardiner.com

Tony Burton hands over to John Nolan

One method developed to tackle this issue was the Trailblazer Apprenticeship scheme which forms part of the government’s overall apprentice programme which aims to give employers and professional bodies in the construction industry the opportunity to develop the new apprenticeship standards and occupations in their sector. The programme has a target of creating three million new apprentices by 2020. This is a scheme G&T has supported and championed by becoming the lead employer, developing new top-quality apprenticeships and giving people the skills they need to thrive.

Another way of addressing the skills shortage was to focus efforts on improving our understanding of diversity and inclusion within the industry. As part of this I became a diversity champion sitting on a panel alongside others discussing how we can improve the built environment to address these key issues. The Royal Institution of Chartered Surveyors (RICS) also introduced the Inclusive Employer Quality Mark which is a programme designed to encourage organisations to have diversity and inclusivity at the forefront of everything they do. G&T joined this scheme following the success of other recent programmes including our Change the Skyline initiative and Women’s Development Programme.

The third part to my initial challenges set to the CIC was to address the lack of education programmes aimed at introducing children to opportunities in the built environment at school. On the day of my inauguration Alison Watson from social business Class of Your Own spoke to the council for the first time and I am proud that throughout my time as chairman this organisation has become an official part of the CIC and introduced initiatives such as the Adopt a School Programme, which allows schools to teach the qualification ‘Design, Engineer, Construct!’ using funding from the private sector. I was able to personally get involved with the scheme when G&T joined it in 2014 and as a firm we have sponsored Heathcote School & Science College in Chingford, North London for the last two years.

Whilst I have been chairman I have also been part of the All Party Parliamentary Group Commission of Inquiry for Excellence in the Built Environment, looking to the future of the industry and the big topics which will be affecting the UK over the coming years. As part of this group we previously published a report ‘Living with Water’, which looked at what could be done to counter extreme weather conditions in the future and we are about to publish a second report focused on introducing standards for the quality of new build homes across the country.

www.gardiner.com

Congratulations John

I am delighted to be succeeded as chairman of CIC by Professor John Nolan. John is a deep thinking and very capable individual who I know will relish his time as chairman. I look forward to working closely with him as his deputy during the next 12 months to embed the strategic changes approved at the 100th Council meeting. These changes will enable CIC to play a strong thought leadership role on behalf of its members representing the built environment professions together.

Although I am pleased with the progress I have seen over the last two years and the strides that have been made so far I know this is only the beginning and we have a long way to go with many issues that still need addressing if we are to ensure the industry is prepared for the future and what is to come.

Tony Burton

G&T’s Tony Burton

Tony is one of the firm’s senior partners and has extensive experience across a wide range of projects covering offices, industrial, residential and historic restoration. He regularly provides expert evidence in relation to cost and programme issues on rent reviews. Tony lectures on Value Management at Leeds Metropolitan University and London Southbank University. He was also an external examiner to the Quantity Surveying courses at the University of Salford and Leeds Metropolitan University and he is a member of the RICS Regulatory Board.

Want to hear more about the new CIC Chairman? Read the CIC’s recent press release.

Want to find out more about G&T and the initiatives we get involved in? Visit our website www.gardiner.com

Keep up to date on industry news and updates by following us on twitter @gt_llp

G&T Backing the Next Generation at LREF

G&T sponsored the Next Generation initiative at the 2016 London Real Estate Forum (LREF), including both the round table debate held at Mr Fogg’s Residence and the evening reception held in Berkeley Square on Tuesday 14 June. This initiative forms part of G&T’s ongoing NextGen programme alongside the sponsorship of the NLA Next Gen Programmenurturing new talent and promoting lifelong learning and personal development within the property and construction industry. Read on to find out more about LREF and see pictures from the event…

G&T delegates Katie Metcalf, Paul Eldred and Rachel Oldham took part in a pre-reception round table debate held at Mr Fogg’s Residence entitled ‘Property’s Next Generation: The Change Agents‘, which centred on how young minds are revolutionising the built environment and discussed everything from the places we work, to the places we live and the way we interact with them. Topics debated included new technologies and the value of innovation in the construction industry, as well as the impact of disruption and importance of investment in infrastructure.

Following Mr Fogg’s the Next Generation reception began in Berkeley Square where G&T’s Adam Glover gave the welcome speech to over 200 guests, which focused on the achievements and opportunities available to the next generation and introduced the keynote speaker Reza Merchant, CEO of The Collective. Reza spoke about the concept which began The Collective, creating ground breaking spaces with the greatest possible experiences and how they’ve built the company in order to respond to the way people want to live, redefining the way people choose to work. The reception continued into the evening with networking, drinks and canapes, offering the next generation a chance to engage with other individuals across the industry from a wide variety of backgrounds and disciplines.

G&T’s Adam Glover commented on the sponsorship of the initiative:

“At G&T we have a reputation for recruiting top talent in the market place and retaining those people within the firm for the long haul. This is never more important than now when our industry is dealing with a skills shortage. We are therefore delighted to align ourselves with the Next Generation initiative at The London Real Estate Forum which supports our values as a firm and our vision for the sustainable and long-term success of the property and construction industry.” 

See the collage below for images from the event:

Want to find out more about the G&T NextGen programme? Click here to watch our new film series ‘G&T NextGen‘ 

Keep up to date with the NextGen by following us on Twitter @gt_llp.

Are you part of the next generation in the property and construction industry? We want to hear from you! Tweet us @gt_llp or leave a comment in the box below. 

 

G&T Times Newspaper 2016

G&T has published the latest edition of the G&T Times Newspaper! 

Click the link to read our new publication:

G&T Times 2016

As part of the centre spread we ran an internal selfie competition to capture the faces of G&T employees on a typical day in our offices across the world. We were overwhelmed by the response. We had entries from site visits, meetings, lunch breaks and after work drinks, from both groups and individuals all the way from the US to our head office in London.

Check out the collage below to see just a few of the many selfies we had in:

Read the full newspaper here!

Find out more about our G&T people on our website www.gardiner.com

Keep up to date with G&T news by following us on twitter @gt_llp

UK Steel – Market Insights with Owen Weatherley

Keep up to date on key trends in the property and construction industry with Owen Weatherley’s ‘Market Insights’. This week we hear from Senior Market Analyst, Owen Weatherley and G&T Partner, Rachel Oldham on the UK steel industry and the effects of the recent well publicised decision by Tata Steel to sell off its UK manufacturing operations…

With Tata’s decision to sell off its UK steel manufacturing operations there is a growing desire within the industry to understand the present dynamics of steel pricing within the construction market (the following is a summary of a longer report that can be found here).

UK Construction Steel Market

The UK steel industry directly employs around 18,000 people with a total UK workforce of around 31million. As a significant contributor to the UK economy the steel industry is of vital importance. In spite of the disconnect between the sustained levels of steel prices and the well-publicised weakness in global prices for steel generally, there are several factors that explain the resilient steel pricing in the past 18 months including:

  • The level that steel pricing is starting from – since 2008 supply and install rates in London have risen around 20-25% while nett rebar prices have increased between 15-20%.  This compares with concrete costs that over the same period have risen from 40 to 50%.
  • Recent media attention has focussed on the UK steel industry as a whole (including steel for manufacturing, packaging etc) which ignores the fact that products like CE marked structural sections are not under pressure from cheap Chinese imports.
  • Localised market factors such as labour costs, capacity, overhead and profit allowances and overall demand can outweigh changes in material input costs. While labour costs for steel trades have not increased as much as other trades due to a four year industry wide training and apprenticeships push, demand for steel across the UK has been sufficiently high to sustain prices over the past two years.

 Impact of Tata’s Decision

The impact of Tata’s decision on the construction market is not anticipated to be as significant as first thought for the following reasons:

  • The recent deal completed with investment firm Greybull Capital for the sale of its long-products operations.  This mitigates the immediate impact of potential closure on prices (issues around delivery lead times are expected during the transition period).
  • As a result of the EU Conformity (CE) marking which implemented strict quality controls in 2013 the vast majority of steel sections used in UK construction are sourced either domestically or from the EU, which also reduces structural steelwork’s exposure to an influx of cheaper Chinese steel.  EU production of long sections remains over 9 million tonnes annually.  Therefore the relatively small potential increase in demand from the UK (c. 500k tonnes) if operations close does not pose a significant inflationary risk to pricing or supply, although will increase the sensitivity of pricing to currency fluctuations.

Impact of Importing Chinese Steel

While the mandatory CE marking for structural steelwork in the UK/EU has impacted Chinese steel section products entering the UK, it is not the case for rebar (reinforcing steel bars).  Chinese rebar imports have increased significantly in recent years (up from 2% in 2013 to 44% in 2014). As growth and demand for construction in China has weakened Chinese producers have looked to export markets, often selling at significantly lower prices. Despite concerns around quality and compliance with British Standards and a recent rally in domestic steel demand, Chinese rebar is expected to remain a cheaper alternative to UK/EU rebar with the proportion of it used in the UK construction industry continuing to rise.

Forecast for the Future

Looking forward, factors affecting steel sections and rebar will see differing cost pressures applied. The recent rally in demand for steel in China is viewed by most analysts as a result of policy makers talking up growth and stimulus and increases in steel speculation activity. This is unlikely to be sustained.  Therefore a longer-term continuation of weak construction demand within China will maintain the surplus Chinese supply of rebar on the global market.

The recent introduction of levies between 9 and 13% (11% in UK) by the European Commission on China’s rebar exports will offset some of this.  Should higher tariffs be imposed this will have an inflationary impact on rebar pricing. Our medium-term outlook is for continued price stability.

For steel sections the price of iron ore will drive pricing, alongside fluctuations in other input costs, overheads, profit rates and overall demand.  The recent rally in Chinese steel demand has seen a 40% surge in iron ore prices but as mentioned is not expected to be maintained. Citigroup forecasts iron ore prices will average $US45/tonne in 2016, $US39/tonne in 2017 and $US38/tonne in 2018 indicating continued weakness for several years to come.

As residential and commercial demand for new construction is anticipated to normalise over the next year, localised inflationary factors should also moderate.  Continued weakness in structural steelwork pricing is therefore expected in the short to medium term.

 

Want to find out more? Read Owen’s full report here!

Keep up to date with Market Insights by following us on twitter @gt_llp

Want to find out more about Gardiner & Theobald? Visit our website www.gardiner.com

Remember – Our advice is to review each project on its own merits. This forecast publication must be treated as a guide only, being that it is based on averages of various types and sizes of projects across a region, ascertained through our latest market research. The quality, both of design and desired end product, procurement route (particularly ownership and transfer risk), delivery timescales, complexity of design and desire of contractors to tender should be carefully considered in project specific estimates and their outturn cost. Suitable allowances should be made for project specific designs, site conditions and local market conditions, which should be reviewed regularly with your Gardiner & Theobald team to determine the appropriate base cost. Neither the Author nor Gardiner & Theobald LLP owe a duty of care to the reader or accept responsibility for any reliance on the foregoing.