Role of societal, regulatory and industry influences on construction and engineering. A personal view from Sarah Fox of 500 Words Ltd

1. A BRIEF HISTORY OF CONSTRUCTION
IN THE UK
SARAH FOX
500 Words Ltd

2. Page 2 © 500 Words Ltd, 2015
A Brief History of Construction
An overview of the major influences on the UK construction industry
Societal Changes & Regulatory
Influences
Era Landmarks in Construction & Industry
Influences
2500 BC Pyramid of Cheops at Giza constructed
1750 BC Law Book of Hammurabi, King of Babylon,
defines onerous responsibilities of builder for
workmanship in the construction of houses1
c25 BC Marcus Vitruvius Pollo publishes first ever
book on architecture and construction, De
architectura, a practical book on materials and
building2
118-
128AD
Dome of the Pantheon, Rome, constructed
with a span of 142 feet (matched in 1367)
using concrete3
Calm times led to development of
medieval cities based around cathedrals
and monasteries. Social stability results
in craft training and education
Middle
Ages
476-
1492
All construction carried out as design and
build under auspices of a master builder4
Northern European buildings
constructed of timber, southern
European of adobe
1000
William of Normandy sows the seeds of a
unified English legal system
1066
1100 First guilds formed followed by rapid
expansion, throughout Europe5
1189 Building Control commences. Regulations
introduced relating to party walls, rights of
light, drainage
Several cities in Europe have populations
exceeding 50,000 (none in UK)
1300 Early example of lump sum contracting for
new gaol in York – most work still done under
value and measure, occ lump sum for specific
packages
1420 Renaissance in architecture, building and
science starting with Brunelleschi
1570 Publication of I quattro libri dell-architettura
by Palladio (giving the ‘Palladian style’)
1657 Popularisation of baroque style in piazza near
St Peter’s, Rome
1662 The Royal Society is founded providing a UK
national academy for scientific understanding
1666 Great Fire of London resulted in
massive demand for construction under
a measure and value system, & QSs
1670s Iron increasingly used e.g. dome of St Paul’s,
old House of Commons
1729 Belidor6
, French engineer, publishes ‘La
Sciénce des Ingénieurs’ which considered the
maths and science behind elements of
construction

3. Page 3 © 500 Words Ltd, 2015
Societal Changes & Regulatory
Influences
Era Landmarks in Construction & Industry
Influences
1771 Society of Civil Engineers founded & first
reference to a ‘civil engineer’ in their
proceedings7
Water closet common among wealthy
households, although modern style
toilets not used until c1890
1780s 1779 First bridge made completely of iron,
with 30m span over the river Severn, UK
1785 Calver Mill, Derbyshire, UK constructed
using cast-iron columns to reduce fire risk
Wood, as main source of fuel, was
replaced by coal
19th
century
New system of contracting with one person
for fixed price becomes common8
and
retention provisions formed part of these
early contracts9
Civil engineering contracts evolve to cover
price, time for completion, damages,
specification of work
London population reaches 1m,
Liverpool 80,000, Manchester 75,000.
Apart from London now UK city has a
population over 100,000
1800 Technical equipment became critical to
building services. Shift in perception of use of
a building from provision of shelter to
provision of ambience, and home for
technology
1810s 1818 The Institution of Civil Engineers
founded10
1820s 1821 First railway line11
1824 Invention of Portland cement (silica +
limestone), a key component of concrete
1826 Telford designs 176m Menai Suspension
Bridge
Canal and railway construction results in
provisions on health, safety and welfare
(first HSAWA?) and to protect the
workforce and community. Chester and
Holyhead Railway Co require contractors
to provide accommodation for labouring
navvies where there is no local provision
1830s Use of bills of quantities well established (first
examples from c1750)
Invention of tarmacadam
1827 First building trade union started – The
Friendly Society of Operative House
Carpenters and Joiners of Great Britain
Privileges of the guilds abolished in
England12
resulting in the introduction of
professional designers and contractors
1830s 1831 Architectural Society founded,
forerunner of Royal13
British Institute of
Architects
New pressures on time resulting from
Industrial Revolution and need to
construct new factories/associated
premises speedily
1840s New standards and specifications prepared to
take into account new materials which were
becoming available in commercial quantities14
Civil engineering contracts take into account
massive variations in cost of works due to
quantities required and variable ground
conditions & opt for re-measurement basis of
payment (building work continues on lump
sum basis of payment)
London population at 2.5m, Liverpool
375,000 and Manchester 300,000
1850s New ways of constructing, managing work and
organisation required to keep pace with
demand for new construction and engineering
projects15

4. Page 4 © 500 Words Ltd, 2015
Societal Changes & Regulatory
Influences
Era Landmarks in Construction & Industry
Influences
1850s Practice of tenderers appointing a joint
surveyor to measure work from drawings is
overtaken by employer appointing a
surveyor16
to provide it as part of tender
information, in the form of bills of quantities
First ‘standard forms of contract’ prepared by
large corporations
Glasgow company publish catalogue of pre-
fabricated building components
1851 Paxton uses pre-fabrication in Crystal
Palace at Great Exhibition
1854 In US first (hydraulic) passenger elevator
is demonstrated, essential to skyscrapers
1860s 1859-1869 Construction of Suez Canal
1863 First part of the London Underground
opened (the world’s first underground
railway)
1868 Institution of Surveyors founded (RICS in
1946)
Glazing of windows in houses is universal
1873 & 1875 Judicature Acts unified
court system, allowing rules of equity
and common law to be applied in all
courts and creating a hierarchical system
of courts
1870s 1870 Heads of Conditions of Builder’s Contract
published by RIBA with London Builder’s
Society
1877 Society for the Protection of Ancient
Buildings founded to encourage sympathetic
restoration by repair rather than demolition
1878 Act permits local authorities to introduce
control over buildings
Ancient Monuments Act covers
earthworks, burial mounds, stone circles
and abbeys
1880s 1882 Construction of first electrical power
station
1885 First skeleton-framed skyscraper
constructed, Chicago, USA
1887 RIBA rule that no architect could also
hold a profit making position in the building
industry – the end of the contractor architect
(changed in 1981)
1889 Eiffel Tower, France, completed using
steel frame; also first all steel-framed building,
ten-storeys Rand-McNally, Chicago USA
Wider remit for preservation for the
National Trust set up in 1893
1890s First edition of Hudson’s Building and
Engineering Contracts
1895 RIBA/LBS Form of Contract
1897 Institution of Heating & Ventilation
Engineers (CIBSE in 1976)
1898 First reinforced concrete building in UK
(Swansea Waver’s Mill)
Oil and natural gas used as fuel, although
coal dominates until 1950s
20th
century
1904-1914 Construction of Panama Canal, one
of the largest civil engineering project in
history, employing 45,000 workers at its peak
Construction of Letchworth then Welwyn
as new towns and ‘garden suburbs’
1900s 1903 IEE publish Form of Model Conditions for
electricity works17

5. Page 5 © 500 Words Ltd, 2015
Societal Changes & Regulatory
Influences
Era Landmarks in Construction & Industry
Influences
1909 First Planning Act to control
building and systematic town planning
1900s 1906 First steel-framed building in UK (Ritz
Hotel)
1908 Concrete Institute (later ISE)
1909 RIBA publish first Conditions of Contract
Demand for housing in Britain resulting
in the pre-fabrication of components;
central heating boilers become common
Post
WWI
1921 Building Research Station (later
Establishment) formed
1920s 1922 Institution of Structural Engineers
founded
Standard Method of Measurement for
Building Works first published
1935 Planning Act ‘the most
comprehensive planning system in the
world’18
1930s 1931 Joint Contracts Tribunal established
(RIBA and NFBTE)
1939 New RIBA edition published
First regime for listing important and
historic buildings following 1947 Act
1940s
1945 Acts make arrangements for the
establishment, status and management
of New Towns (28 in the UK)
Growth of new methods of procurement
to deal with huge demand for
construction
1945 First ICE standard form contract for projects
on re-measurement basis.
Approx 10% world GDP invested annually
in construction of dwellings, buildings,
civil engineering works and utilities
1945-
now
Great London Smog of 1952 resulted in
c12,000 fatalities & Clean Air Act 1956
1950s 1955 First edn Keating on Construction
Contracts
1956 First FIDIC19
edition for international
contracts
1957 JCT comprises RIBA, NFBTE, RICS (1947)
and representatives of 6 Local Authority
bodies
1958 Preston bypass, UK’s first motorway
Construction Industry Training Board
established in 1964 (supported through
levies)
Banwell Report said construction
industry not flexible enough for modern
needs
First set of English/Welsh Building
Regulations
1960s 1963 First JCT standard form contract,
superseding RIBA forms, for use with
traditional contracting
1967 JCT publishes Prime Cost Contract
1968 JCT publishes Agreement for Minor
Building Works
VAT introduced to the construction
industry by the Finance Act 197220
Defective Premises Act 1972
Government publishes GC/Works/1 (first
government sponsored standard form)
Health & Safety at Work Act 1974
1970-4 1973 Formation of Association of Consulting
Architects
Energy crisis forces re-think on use of
whole-life use of energy
Unfair Contract Terms Act 1977
1975-9

6. Page 6 © 500 Words Ltd, 2015
Societal Changes & Regulatory
Influences
Era Landmarks in Construction & Industry
Influences
Civil Liability (Contribution) Act 1978
Sale of Goods Act 1979
1975-9
Limitation Act 1980 consolidates
limitation periods
Severe economic downturn in property
resulted in growth of facilities
management (co-ordination of various
services21
)
Supply of Goods and Services Act 1982
implies terms into relevant contracts
Building Act 1984 introduced for building
control & permits Secretary of State to
make building regulations
1980-4 1981 JCT publish With Contractor’s Design
version, the first standard form contract for
D&B procurement
1982 Presentation of the Abrahamson
Principles for risk management at
international conference
1983 British Property Federation publishes
manual for building design and construction
1984 Completion of the Channel Tunnel,
privately funded
1985-9 1987 JCT publishes Management Contract to
foster co-operation and new procurement
strategies, its first ‘cost plus’ contract (instead
of lump sum)
1988 Formation of Construction Industry
Council
Town and Country Planning Act requires
all developments (as defined) to have
planning permission
Environmental Protection Act introduces
polluter pays
1990 BPF publishes standard forms of collateral
warranty (based on earlier RIBA Version)
Water Resources Act 1991
Private Finance Initiative scheme begins 1992 1992 ICE publish its Design and Construct
standard form
GC/Works/1 design and build 1993 ICE publish New Engineering Contract22
Sir Michael Latham’s Constructing the
Team23
recommends collaboration & use
of a single form of standard form
contract for construction & engineering
projects
1994 Opening of Channel Tunnel (51km long, 38km
under water)
Construction Industry Board set up
Sir Peter Levene’s Construction
Procurement by Government: An
Efficiency Unit Scrutiny blames
government bodies for industry’s poor
performance
1995 ICE publish 2nd
edition of New Engineering
Contract
ABI publishes its Model Form of contract
guarantee bond
Housing Grants, Construction and
Regeneration Act 199624
Arbitration Act consolidates and
develops new code for arbitration
Party Walls etc. Act
1996
Construction (Design & Management)
Regulations aimed at risk reduction
1997
Construction Task Force/Egan report Re-
thinking Construction25
proposes use of
integrated project processes and long
term relationships
1998 Industry gets behind Construction Best
Practice Programme, lessons from
demonstration programme set up after Egan
JCT becomes limited company

7. Page 7 © 500 Words Ltd, 2015
Societal Changes & Regulatory
Influences
Era Landmarks in Construction & Industry
Influences
Civil Procedure Rules introduced
following the Woolf Report (1996)
Contracts (Rights of Third Parties) Act
provides exceptions to privity of contract
Achieving Excellence launched
1999
Pre-Action Protocol for Construction and
Engineering Disputes
Building Regulations
NHS Procure21 launched
2000 ACA publish PPC2000 the first standard form
project partnering contract – following Egan
report
NAO report Modernising Construction
HSE strategy statement Revitalising
Health and Safety
2001 Over 100 standard forms of contract for use in
the UK construction and engineering
industries are available
SCL publish Delay and Disruption
Protocol Rethinking Construction –
Accelerating Change published by the
Strategic Forum for Construction
2002 NEC publish partnering option for NEC 2nd
edition
Constructing Excellence set to unite
cross-industry bodies26
set up after
Latham/Egan
2003 JCT publish Major Project Form
Be (Collaborating for the Built Environment)
publish the Be Collaborative Contract
CIC publish new forms of collateral warranty
2004 Constructing Excellence formed
2005 BPF publish Consultancy Agreement with
multi-disciplinary approach to clauses
New editions of JCT suite of standard forms
Part L of Building Regulations,
conservation of fuel and power
2006
Construction (Design and Management)
Regulations which supersede 1994 Regs
and introduce CDM Co-ordinator
2007 JCT publish JCT Constructing Excellence
contract for integrated project working
City of London Law Society publishes standard
form letter of intent
Climate Change Act (leading to
mandatory 2010 Carbon Reduction
Commitment)
Government’s Strategy for Sustainable
Construction
2008 Procurement challenges start to increase and
frameworks start being set aside
OFT imposes fines ~ £129m on 103
English construction firms for collusion
2009
Global economic recession 2010
Introduction of amendments to HGCRA
under LDEDCA (October) and Bribery Act
2010 (July)
2011 New suite of JCT standard forms
Government Construction Strategy
published which recommends
collaborative working.
Trials of three procurement strategies
started
2012 New Rules of Measurement published to
replace SMM07
Mandatory CE marking of products
under Construction Products Regulations
2013

8. Page 8 © 500 Words Ltd, 2015
Societal Changes & Regulatory
Influences
Era Landmarks in Construction & Industry
Influences
2014 IET publishes MF/1 Rev 6
RIBA publishes Concise and Domestic Building
Contracts
Further revised CDM Regulations 2015 New editions of JCT suite of standard forms?
Mandatory use of 3D BIM on public
sector centrally procured construction
projects
2016
This guide is provided by Sarah Fox, a speaker and trainer who helps construction specialists
write simpler contracts and understand complex ones, as well as their industry context. To
find out how she can help you email: sarah@500words.co.uk or ring her on 07767 342747.
Please also let me know of any errors or omissions from my personal view of our history.
1
“If a man builds a house badly, and it falls and kills the owner, the builder is to be slain. If the owner's son was killed,
then the builder's son is slain.”
2
According to Vitruvius all buildings should have the qualities of firmitas (durability), utilitas (usefulness) and
venustas (beauty). See ’50 Architecture Ideas You Really Need to Know’, Wilkinson.
3
Concrete=aggregate + water + cement. The Romans used lime and volcanic ash as their cement.
4
SEBESTYEN, G. Construction – Craft to Industry. 1998. E&FN Spon: “The master mason was totally committed to the
building in which he was engaged. He not only designed it and led its construction, but in many cases he even lived
on the site; indeed, it is no exaggeration to say that he lived for his building.”
5
Guilds were structured on apprentices, journeymen and masters. They controlled training, rates of pay (later
through local magistrates) and standards of workmanship. They declined due to the trend for laissez faire
government.
6
In 1760 he became France’s Royal Inspector General of Engineering.
7
Allegedly John Smeaton’s title for himself.
8
Examples include London Custom House (1817), new Houses of Parliament (from 1837), Drury Lane Theatre (1811),
Covent Garden Market (1828) Ashmolean Museum (1841).
9
The Military Barrack Office contract from 1805 had provisions for stage payment, retention at 12 per cent of the
value of the work certified and for the last payment to be made three months after completion. Cited in Champion’s
2005 paper in the Construction Law Journal “Do we need retention?”
10
Its Royal Charter states that “civil engineering” is the art of directing the great sources of power in nature for the use
and convenience of mankind.
11
Steam locomotive invented 1814.
12
From 1791 France to 1864 in other parts of Europe.
13
Designation from Queen Victoria in 1866.
14
Cast iron used in St Paul’s Cathedral, 1710 completion. Steel making improved in 1856. Portland cement invented
1824, leading to concrete. Steam digger originated in 1830s. In latter half of 19
th
century factories produce most
building materials including glass, cement, steel, bricks, tiles.
15
MORTON, R. Construction UK. Introduction to the Industry, 2002. Blackwell Science Ltd. “The new industry was led
by an extraordinary group of men with drive, energy and imagination whose achievements still impress us.”
16
Payment of the surveyor was by the successful contractor and until 1963 the RIBA standard form of contract,
included an optional provision to this effect.
17
Followed in 1923 by Model Form A, then jointly with IMechE, Model Form/1 in 1988.
18
Cited p199 Construction UK : Introduction to the Industry, Morton (1
st
edition).
19
Fédération Internationale des Ingénieurs-Conseils.
20
Some work is zero-rated including residential homes, care homes, student/armed forces accommodation, religious
community dwellings.
21
Those services included property management, facilities planning, operations and maintenance, support services.
22
ICE launched a review in 1985 which concluded that a new contract was required because of, amongst other factors:
increasing multi-party approach, greater interfaces to be managed, continual disputes, use of different procurement
routes.
23
His report included the following recommendations: (a) the use of co-ordinated project information should be a
contractual requirement. (b) a set of basic principles is required on which modern contract should be based. (c) a
complete family of interlocking contractual documents is required. (d) guidance should be issued on rationalising
tender list arrangements and on partnering. (e) adjudication should be the normal form of dispute resolution.
24
This was the first statutory intervention into the relationships between parties on a construction project.
25
His report identified five drivers of change: committed leadership, a focus on the customer, integrated processes
and teams, a quality driven agenda and commitment to people.
26
These included: Reading Construction Forum, Design Build Foundation, Construction Best Practice Programme,
Movement for Innovation, Local Government Task Force, Rethinking Construction, Be, Constructing Excellence and
Construction Clients' Group.