The pair talk to Dave Rogers about the added risk of getting major schemes built at a time of rampant inflation and acute skills shortages 鈥� and what they think the industry could do to attract more young talent. Photography by Tom Campbell
Laura Collins tells a story about an online careers event she attended this year where she was asked to promote construction as an industry to join. It was for a troop of 50 girl guides, aged between 10 and 17, and her 10-minute slot was sandwiched between a dance instructor and someone who worked in tech making software for video games.
A tough gig, then? 鈥淎fter I鈥檇 finished, the first question I got was: do I get bullied by men?鈥�
She admits she was shocked and a little deflated. 鈥淲hy does this stereotype exist? We have the ability to do incredible things in this industry but it鈥檚 not talked about enough in schools.
鈥淚t鈥檚 not given as an option; it has always been the last option. We need to get to the parents.鈥�
Collins should know all about that, because that is exactly how she got into the industry. Raised in Essex, all the 18-year-old Collins wanted to do was work in London.
鈥淚 had no interest in construction at all 鈥� I was going to work in insurance or something like that. I just wanted to get a City job; I didn鈥檛 particularly want to go to university.
鈥淢y mum met a recruitment consultant on a plane coming back from Spain and they got chatting, and the consultant told my mum that I should come in for an interview with a firm.鈥�
That company turned out to be Davis Langdon, where she became an apprentice QS, chartered at 23 before heading off to join Mace鈥檚 consulting business and later Rider Levett Bucknall for a couple of years.
Now 34, Collins has been at Stanhope since 2019, where she is a project director and was recently in charge of the firm鈥檚 Warwick Court scheme, a refurbishment of the old Goldman Sachs headquarters in Paternoster Square which sits in the shadow of St Paul鈥檚 Cathedral.
Warwick Court, which was carried out by Mace, was procured entirely online because of the pandemic and the scheme had to ride out several storms 鈥� both literal, with February鈥檚 gales bringing work to a stop, and metaphorical such as the squeeze on labour caused by Brexit and then the coronavirus pandemic.
Built in the 1990s, Warwick Court is one of several refurbishment schemes that Stanhope will be carrying out in the coming years.
Over the summer, Multiplex was appointed to revamp the IBM building 鈥� the listed landmark on London鈥檚 South Bank completed in 1983 by architect Denys Lasdun 鈥� while Stanhope will soon start work to overhaul Woolgate Exchange, a headquarters building near Guildhall in the City that was completed at the start of the 2000s.
Mace, which is tipped to carry out the Woolgate Exchange job, last year finished a 拢50m overhaul of Garrard House, the former headquarters of banking giant Schroders which was built 24 years ago by Bovis on Gresham Street, near St Paul鈥檚.
The IBM building is a stone鈥檚 throw away from the ITV studios development, designed by Make and being developed by CO-RE, that was called in last month by Greg Clark in one of the last acts of his brief tenure as communities secretary.
Collins鈥� boss, Stanhope construction director Tony Wall, who celebrates 10 years at the business next autumn, says the ITV decision 鈥� which has stalled plans to knock down the broadcaster鈥檚 former headquarters and replace it with a mixed-use scheme 鈥� has put firms like Stanhope on guard. 鈥淚t makes you sit up and think: Why? What are the reasons? Is there a risk around the things we are doing?鈥�
It鈥檚 more difficult to knock a building down and start again, so we have to think differently. If you can refurbish it, then why shouldn鈥檛 you?
Laura Collins, project director, Stanhope
Wall adds: 鈥淲e鈥檙e being asked questions today that wouldn鈥檛 have been asked five years ago. We鈥檙e pushed a lot more around reuse. I think, as a business, we need to be pushing in that direction as well.鈥�
Collins says: 鈥淚t鈥檚 more difficult to knock it down and start again, so we have to think differently. If you can refurbish it, then why shouldn鈥檛 you?鈥�
Most of Stanhope鈥檚 work is in London and its core output remains commercial work. But it is also getting involved in more life sciences jobs such as its schemes at Royal Street opposite St Thomas鈥� Hospital and the British Library in the capital.
It is also working on Oxford North, a new science and technology hub just outside the city centre and ID Manchester, a city centre innovation district the firm is helping to develop alongside local firm Bruntwood.
Still, it has not forgotten its commercial heartland, with the firm involved in planned towers in the City of London at 55 Bishopsgate 鈥� set to go in for planning before Christmas 鈥� and 70 Gracechurch Street, which it bought in the spring for 拢400m with joint venture partner Cadillac Fairview, a Canadian investor.
But Wall is worried about who will do the work should it all go ahead, notwithstanding the impact of a predicted recession. 鈥淚f all the potential projects out there push the green button to go, there most certainly will be an issue around expertise. Everybody out there is trying to secure professional teams.
鈥淎ll the tier 1s are fighting each other for talent. Over the last two years, there鈥檚 been a huge amount of movement between the top five or six contractors. There is a lot of work out there, which makes it a very different issue to previous recessions. If all that [work] happens, we will have problems with labour and professional shortages,鈥� he says.
We are beginning to see some firms go under. There is a lot of pressure in terms of cash flow
Tony Wall, construction director, Stanhope
Wall believes the whole construction team 鈥� including clients 鈥� need to be more collaborative. 鈥淚t鈥檚 all about trust. The more you talk and communicate, the better for everyone.
鈥淭here has to be an intelligent way of doing things rather than trying to throw risk at somebody that isn鈥檛 capable of taking it. We are beginning to see some firms go under. They took a contract a couple of years ago, suffered huge inflation on that price and can鈥檛 trade through it.鈥�
He says some of the more labour-intensive trades are beginning to suffer. 鈥淭here is a lot of pressure in terms of cash flow. We have a reduced pool of labour in London, post Brexit and covid. The whole market around inflation and pricing is up there as the number one issue.鈥�
Wall worries that some clients are simply trying to hand risk down the supply chain. 鈥淵ou have this food chain. You can鈥檛 just have people hanging out there on their own. You鈥檝e got to be responsible for what鈥檚 happening, and you鈥檝e got to be a good client. I wish all clients would be.鈥�
He adds: 鈥淚f someone is struggling with a cash flow issue, I鈥檇 much rather hear about it from them than go and find out about it somewhere down the line. If a bit of intervention can give somebody some help, and you鈥檙e in a position where you can be [doing that], then you should be.
鈥淧eople think they are passing on risk but, in some instances, just that very passing risk on is a risk because the person on the other side of the table taking that risk might not be able to accept it, and that happens far too much in our industry.鈥�
Stanhope has quarterly meetings with its consultants 鈥� its go-to QSs tend to be Alinea, Core Five and Exigere 鈥� to take the temperature of the market and find out what is bothering them. It does the same with its contractors as well. The cost consultants tend to be all in the same room for their brainstorming. And the contractors? 鈥淲e鈥檙e not that brave yet,鈥� smiles Collins.
Laura Collins CV
2006 Joins Davis Langdon as apprentice QS in the firm鈥檚 M&E business and becomes an M&E project surveyor. Schemes she worked on include Argent鈥檚 redevelopment of King鈥檚 Cross and the Heron Tower
2012-17 Associate director at Mace Consult, having joined as a project surveyor. Schemes she worked on include the HSBC headquarters in Birmingham
2017-19 Associate at Rider Levett Bucknall, where she worked on the Commonwealth Bank of Australia scheme in London
2019- Project executive and project director at Stanhope
Tony Wall CV
1995-2001 Various roles, including building manager at Mace
2001-11 Construction director, More London Development
2013- Construction director, Stanhope
Wall says that Stanhope has always had meetings like this but admits: 鈥淲e鈥檝e turned up the volume since Brexit and covid. The [Ukraine] war has made us go further into the detail. Inflation is the number one issue. If you ask a contractor about inflation, you get a very different story to a cost consultant.鈥�
He returns to the point about how many firms can do the work if it all comes to fruition. 鈥淲e鈥檝e always enjoyed good relationships with the people we鈥檝e used. But increasingly you are beginning to have to look around.鈥�
Stanhope has hired Multiplex to carry out the IBM work, also known as 76 Upper Ground, under a 拢120m deal. 鈥淭hey tendered three jobs before and came very close on two [both built by Lendlease]. Kier [another newcomer for Stanhope] is working with us at TV Centre [on a 拢50m affordable housing scheme].鈥�
Recruitment begins at school
Meanwhile, on the problem of the reduced pool of labour, the answer, for Collins, is simple: 鈥淚t comes down to attracting people into the industry. We need parents to understand this is a profession. We do great stuff internally in the industry to say what we鈥檙e doing to change it, but when you step outside the construction bubble, it鈥檚 not talked about in schools.鈥�
She says she recently took 30 girl guides to have a look at the Warwick Court scheme. A trip to McDonald鈥檚, a treasure hunt in Paternoster Square and a spot of making something out of Lego were all on the agenda.
鈥淲e had the best day,鈥� she remembers. 鈥淥n the way home, they said they wanted to be a project manager or a structural engineer. It鈥檚 the parents we have to target. They told me they thought construction was about being an architect or a builder. They didn鈥檛 realise all these other things existed.鈥�
She thinks new recruits need to learn in an office as well, because working from home and having virtual catch-ups is not ideal for those starting out in their careers. 鈥淚 started as an apprentice in 2006, and I got all my experience by listening to my colleagues. If you鈥檙e not getting that, it鈥檚 a bit difficult.鈥�
When Collins joined Stanhope, she was the first woman in the operations team. 鈥淣ow there are four or five鈥� out of a team of about 20, she says. 鈥淪ometimes people get a bit worked up and feel that all the women are coming for their jobs.
鈥淚 get pretty annoyed when people say 鈥榶ou鈥檝e only got that because you鈥檙e a woman鈥�. Actually, it鈥檚 because I work bloody hard and I鈥檓 good at my job.鈥� Still, maybe that鈥檚 why she got asked that question by those girl guides.
To underline the task that the industry faces, a recent survey of 1,100 people working in it found a quarter believed that better advice on construction for youngsters at school or college would help to tackle the skills problem. Other issues which put young people off, said respondents to the poll conducted to coincide with this month鈥檚 UK Construction Week, were that it was still seen as being too dirty and male dominated.
Collins, no doubt, would agree. 鈥淲e鈥檝e got a labour issue, regardless of any diversity stat,鈥� she says. 鈥淚 shouldn鈥檛 be relying on my mum meeting someone on a plane for me to get into this industry.鈥�
In development
Stanhope has 2.3 million ft虏 of development under construction, including the 8 Bishopsgate office scheme that is due to be completed by Lendlease next spring, a residential scheme being carried out by Kier at Television Centre, and the Gateway West office scheme at White City Place being carried out by Sir Robert McAlpine. The sister Gateway Central scheme is also being carried out by McAlpine and has been part let as French cosmetics firm L鈥橭real鈥檚 new headquarters.
Stanhope also has more than 12.5 million ft虏 of pre-development work in its portfolio, the largest of which is 3.2 million ft虏 of life sciences work at ID Manchester and a further 1 million ft虏 at the Oxford North life sciences scheme. This is being developed by a joint venture called Oxford North Ventures which is 50% owned by Thomas White Oxford, the development company of St John鈥檚 College, with the other 50% owned by Stanhope and Cadillac Fairview, the real estate arm of the Ontario Teachers鈥� Pension Plan.
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