The proposed legislative shift will present both opportunities and challenges in delivering large-scale infrastructure projects. The industry must understand – and embrace – the changes, says Lance Gudger of O’Brien Contractors
The proposed Planning and Infrastructure Bill announced last month promises to bring much-needed reform to the planning system and accelerate economic growth across the UK. Before contractors are fully able to leverage the legislative shift, however, it is essential to understand how these changes might be used to drive innovation, improve sustainability and meet growing national infrastructure needs.
The industry has long been battling against the restrictions of the current system. Planning condition documents are often several pages long and can contain hundreds of conditions, all of which need to be complied with before obtaining planning discharge.
This can result in a massive commitment of time and costs (including the employment of several specialist consultants), with little to no certainty that the development will actually go ahead, making it a big risk for developers to even enter into the planning phase.
The situation becomes even more challenging when considering working on a brownfield site, an area which the government has made clear needs to be prioritised. Generally, there are more additional measures involved which need to be undertaken before brownfield development can start, such as multiple site investigations and ensuring that there is no contamination from previous construction works.
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Because of this, developers must commit to huge amounts of overheads, upfront costs and a considerable amount of time before the project gets underway – a prospect that can be off-putting to many.
The new bill offers additional security for developers, aiming to deliver a faster process, which in turn will increase demand and boost economic growth, particularly through the realisation of more national infrastructure projects. All of this is positive for the sector.
The construction industry has been one of the hardest hit in the past few years and the faster planning applications are processed and granted, the more opportunities there are for the industry, resulting in more employment and the prospect of more growth for the UK as a whole.
The new bill will also include measures to prioritise grid connections to support clean energy projects, in turn lowering carbon emissions and helping to bolster green practices. A new scheme will also encourage investment in long-duration electricity storage to ensure energy security. In total, these changes are set to unlock £200bn in energy investment.
Some of the main concerns within the industry are the environmental and ecological factors (including obtaining all necessary permits). This is another area of planning that notoriously takes months or years to get through.
Anything that streamlines timelines and costs is going to be a benefit to all involved
It is unfortunate that there has been little discussion on whether additional resources will be made available from local planning authorities to speed the process along. Without committing to quicker turnaround times in this area, the speed of delivery may not improve as much as originally hoped.
For contractors, the benefits of the bill are clear: better costs, more streamlined bureaucracy and more investment. It means developers are more likely to invest in the front-end work, in turn providing more opportunities for main contractors. The increase in work will reduce overhead expenditure and provide capacity for more workers.
The most promising aspect of this bill presents is the road to recovery it offers for the construction sector. It should boost the confidence of investors and suppliers, providing the proposed legislation is not amended too heavily on its way to becoming law. As a result, local authorities will be able to plan more infrastructure projects. Really, anything that streamlines timelines and costs is going to be a benefit to all involved.
For those working within the construction industry, it is vital to take some time to fully understand the proposed legislation and the changes it will deliver. It could be the key to unlocking vast project potential and securing the sector’s future within the UK.
Lance Gudger is a director at O’Brien Contractors
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