Market Trends
The turbulent economic environment has continued this year, marked by high UK interest rates to combat rising inflation, cost of living pressures and global uncertainty, which have had a dampening effect on business investment and growth. Construction industry output continues to fall, as we move into next year.
Our Summer edition of PBC Cost Commentary reported that although the UK economy managed to avoid recession, there are still adverse pressures on the construction industry with some sectors in decline but with growth in others. New project orders saw a 3.9% increase in the last quarter and the November BCIS materials cost index shows the cost of materials decreasing and building costs starting to ease, with the reduction in material prices helping to offset the increase in labour costs. Click here to be redirected to our latest cost commentary report.
Responsibility
We continued our commitment to net Zero and have again this year achieved Carbon Neutral certification, our fourth year running.
The Global Cop 28 global Summit is upon us, and the UK drive for Net Zero has again been a key trend this year, with most of our clients being focused on ESG and improving the green rating of their properties. Investors have been offering green building loans, and many of our property clients have in place a strategy and pathway to achieving Net Zero carbon for their portfolios and the use of more renewable products and materials.
Our teams are involved in a number of EPC building upgrade projects to meet the minimum energy efficiency standards (MEES) by 2030 and we are promoting decarbonising across our construction projects, including minimising waste to landfill sites, the reuse of materials wherever possible and the responsible sourcing of construction products.
Diversity and inclusion also remains high on the agenda at PBC and we have taken significant steps in helping individuals and external organisations to become more accessible and inclusive.
Notable Achievements
This year we made some key promotions in our senior management team, with Glenn Wright MRICS our director of Project Management promoted to the PBC Board, Jack Dison MRICS promoted to a director of Building Consultancy and Jim Heatley MCIOB promoted to a Senior Associate in our PM Team.
We continued to grow our pool of talented staff with a number of strategic hires, including the appointment of Dante Makin MRICS, senior building surveyor who joined the business in September to work alongside Jack Dison.
We also launched a new Development Monitoring (DM) department and centre of excellence, headed by director, Mark Merritt MRICS, and in Q3 we launched a specialist Rights of Light, Daylight and Sunlight division, headed by Desrine Oak MRICS, Senior Associate.
The official launch of our new Matterport camera services provides advanced 360-degree, 3D scanning technology and imaging software, which has already proved popular with clients for building surveys and feasibility studies, insurance claims and recording progress on site.
The demand for our range of Professional and Construction Consultancy Services has remained both strong and diverse. We have seen significant growth, in client requirements for commercial fit outs and office flex space products, hotels and Purpose-Built Student Accommodation.
The Artesian, London E1 – Project Management Services
Our Projects Team delivered “The Artesian, in London E1 for CLS Holdings Plc, transforming a 1930’s former Co-Operative Bank HQ built in art deco style, into high quality modern office accommodation, providing over 110,000 sq. ft. of CAT A refurbished and CAT B fitted office space over 6 floors, with a large roof-top terrace and strong sustainability credentials, including BREEAM “Excellent”, EPC B and Wired Score platinum certification.
The White Hart Hotel, Lincoln – Cost Management Services
Our Cost Consultancy division cost managed the comprehensive upgrade and refurbishment of the historic White Hart Hotel, near to the Castle and famous cathedral in the heart of Lincoln, with a soft opening achieved in October and full opening due in the New Year.
The Hickman, Whitechapel – Employer’s Agent Services
Meanwhile, the larger Building Consultancy team have been busy with pre-acquisition Technical Due Diligence (TDD) surveys for property investors, and continued to manage the delivery of a range of serviced office fit-out projects for operators and landlords across the South-East of England, including “Flex space” offices for Great Portland Estates.
Five Fields, Grosvenor Gardens – Party Wall & Neighbourly Matters Services
Our Party Wall, Rights of Light and neighbourly matters team acted on behalf of Grosvenor on the “Five Fields” scheme in Grosvenor Gardens, set across 30,000 sq. ft, this new charity hub, has been brought forward by Grosvenor and the Westminster Foundation.
The Enso PBSA Building, Colchester – Development Monitoring Services
Our newly launched Development Monitoring department grew its client base with many projects monitored for lenders, including the Enso Building in Colchester, new purpose build student accommodation monitored for Investec Bank Plc. In Highgate Road, Kentish Town are monitoring a mixed-use scheme consisting of five assisted living residential units, commercial space and with 42 apartments above.
In terms of financial performance, 2023 has been a strong year to date, with a 10% increase in fee income compared to this time last year and all major departments remaining ahead of budget.
Look Ahead
The year ahead looks both exciting and challenging and we remain cautiously optimistic. Our strong pipeline of new business opportunities across all departments, with potential for adding more new clients, is one of our key strengths going forward into 2024.
We will be looking to invest in more good quality talent to strengthen our sector experience including in Hotels and office “Flex” space. We are also planning to grow our presence across the UK regions.
The drive towards Net Zero and implementation of the MEES regulations has undoubtedly given rise to more opportunities for advising clients on their proposed property purchases, existing portfolio upgrades and for managing clients’ Net Zero pathway implementation projects.
This year, we have also seen a shift towards modern methods of construction (MMC) in construction and development, particularly the use of timber framed structures and volumetric modular developments as part of a strategy for meeting 2030 net Zero targets.
Our 23 year business track record and reputation for professional expertise should enable us to grow further our framework agreements with private blue chip portfolio clients.
Faced with continued economic uncertainty and more financial pressures moving into 2024, clients should be taking early advice from their professional consultants to secure cost and programme resources for their projects. PBC is well placed to respond to our client’s demands as we continue to be a financially robust, with strong management and experience across our Building Consultancy, Project Management, Development Monitoring and Cost Consultancy Teams. Our motto is ‘to ensure the best outcome every time’ and we wholeheartedly believe that PBC achieves this for our clients.
