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Govt launches £420m construction sector deal

Deal seeks to transform construction through innovation to increase productivity

The new joint government/industry deal worth £420m aims to transform construction through digital design and offsite manufacturing that help to increase productivity and build new homes quicker with less disruption.

The government hopes that the deal will help it meet its ambition to deliver 1.5 million new homes by 2022 and support its Clean Growth Grand Challenge mission to halve energy use of new builds by 2030.

Under the deal, the government is bringing together construction, manufacturing, energy and digital sectors to deliver innovative approaches that improve productivity in construction and accelerate a shift to building safer, healthier and more affordable places to live and learn that use less energy.

The partnership between the government and the construction industry, was announced on 5 July 2018 by the Business and Energy Secretary Greg Clark, in a speech to the Northern Powerhouse Summit in Newcastle.

Clark said:

“The construction industry is fundamental to growing our economy as we build to invest in our future. Major infrastructure projects like HS2 and the commitment to deliver 1.5 million homes by 2022 mean that we need a construction sector that can drive innovation, delivering homes and infrastructure quicker.”

Andrew Wolstenholme, Co-Chair of the Construction Leadership Council said that securing the deal “sends out a statement about the vital contribution our sector makes to the country”.

The Construction Sector Deal will deliver:

  • £420 million investment in ‘bytes and mortar smart construction’ through use of digital building design, new manufacturing technologies and offsite manufacturing helping cut the time taken to deliver new build by 50%
  • cheaper energy bills for families and businesses – support Industrial Strategy mission to halve the energy use of new builds by 2030
  • 25,000 construction apprenticeship starts and 1,000 Construction T Level placements by 2020, with £34m to scale up innovative training models across the country
  • improved global access to a $2.5tn export market – a globally-competitive sector targeting the growing international infrastructure market that is set to grow by 70% in the years ahead

Speaking to the Roofing Times last month, James Talman urged the roofing industry to further embrace digital technologies and see offsite construction as an opportunity.

Read the strategy document