Solid procurement strategies, NEC contracts and new project management methods will be key to getting UK aviation construction back on track, argues EDGE’s Simon Cooper
Construction and development in the aviation industry requires a unique approach and never more so than now, as it grapples with outdated infrastructure, the impact of the pandemic, and ongoing financial and supply constraints.
Innovative solutions and effective project management are essential to support aviation’s comeback and secure its future. Simon Cooper at leading multi-disciplinary property consultancy firm EDGE, discusses.
Airports require a fairly unique operational approach when it comes to construction projects – you have a large amount of civil engineering, drainage and lighting needs, runways and highways and a building attached, with a very specific world where journey and experience are inherently intertwined.
Sectors that normally would sit separately come together in what is essentially a mini city, with incredibly high footfall.
Right now, the main challenge to our airport client budgets is the baseline investment needed to keep them running but also needed to expand and deliver more.
When budgets get squeezed, the only way to get ahead of the game is to be lean and flexible, adapting to client needs, not just assessing cost but going back to the drawing board and reassessing.
Understanding the various procurement routes and NEC contracts – and how to adapt those to market conditions – is becoming more crucial than ever before against this backdrop. You also need to have project management teams that understand the operation to offer development routes that won’t have a negative impact on the airport environment, but still deliver on time and on budget.
Aviation development was significantly set back by the pandemic- after already struggling to evolve
Airlines were informed that by 26 March 2023, they would need to return to using their slots 80% of the time in order to keep them – the ratio in place before passenger numbers dropped as a result of the pandemic.
It shows confidence in the industry is growing as demand for international travel returns, with passenger numbers at UK airports reaching 85% of equivalent 2019 levels by October 2022. But this is not without its challenges.
To continue meeting this rising demand, airports across the country had been planning expansions and upgrades to their terminals. As well as backlash from environmental groups and sustainability concerns, the Covid-19 pandemic put a halt on these projects with some even being scrapped completely.
When looking at aviation construction and development today, the airport industry is still playing catch up. The ongoing impact of the pandemic means airports are facing funding and supply issues, coupled with trying to keep operations going while these projects are being carried out.
Leeds and Bradford Airport is one example of this, where plans for a £150m upgrade were put on hold in March last year after the government decided it wanted an enquiry into the plans.
Now, a year later, work is underway to improve the terminal with modern facilities. This is a huge project for the airport that has already lost a year of time, so good management is essential to helping it get back on track while causing minimum disruption to passengers and tackling any delays in materials supply chains.
In addition, plans for a second terminal at London Luton airport were impacted by Covid, with original project completion moving from 2041 to 2045. The work planned has been reassessed to be “greener and cheaper” but again, this requires re-analysing.
Having experienced project managers can make all the difference under these difficult circumstances, allowing work to progress speedily and taking into account the size and scale of the operation. Furthermore, making the best use of capital and other funding streams will mean estate teams can work within a budget, apply for support and get the most out of their spending.
Updated standards of compliance are adding pressure
Another key issue in aviation development is meeting new security compliance standards. In December last year, the UK government announced its biggest shake-up of airport security rules in decades. The rules on taking liquids and large electrical items through airport security are set to change by 2024 with the installation of new technology across most major UK airports.
The deadline follows several trials conducted at some airports since 2018, which have demonstrated the effectiveness of this new screening equipment – which uses CT X-ray technology to essentially provide a 3D image of what is in passengers’ bags, as well as deploying highly advanced threat detection algorithms.
The change will enhance passenger experience and hopefully speed up their journey, but for this to happen, airports need to upgrade their security areas and install the machines efficiently.
With less than 18 months until this change is expected, airports face a huge challenge on top of an already difficult time. Some new machines have already been implemented while others are still working to achieve the deadline, but this is complex work that requires expertise to handle the process.
All projects will be slightly different as not all the same machines are being used and the capacity will vary. In some cases, the entire airport security floor needs to be stripped out, sterilised and repurposed with a new search area and machines – and for some airports, this will also mean looking at the roof to ensure no leaks will affect the new technology.
Other considerations include assessing how many machines will be needed to benefit the airport, while also looking at the power supply to allow for this. Then there are also important discussions around layout to make the most of the space, particularly in terms of passenger wayfinding.
EDGE has been appointed to cover multiple disciplines on airport construction projects around the UK, which are being delivered under NEC4 contracts, which includes weekly inspections and visits and provides an information manager to keep everything running smoothly. Getting these airports up to new compliance measures is essential as the UK faces an even bigger surge in air travel next year, which is why working full-time inside the airport is often the best method of project management.
With an uncertain future ahead, strong project management offers structure
Given what we have learnt in the past few years, the changes to demand and compliance, the construction industry is integral to aviation’s future. While these changes and shifts show promise, construction and development is needed in the long term to safeguard the future of the aviation industry.
Underlying all the challenges, there is also an uncertain economic landscape to contend with. Effective project management will seek to use managers in the same location, keep up communication and use strong digital tools to support smooth communication and cost management.
Inflation and the cost-of-living crisis is only in its infancy and creating cost plans is incredibly difficult when the government announces cost increases – it’s back to the drawing board. Prices across materials and containers all add up and is something we are seeing a lot in the mechanical and electrical engineering space. Due to supply and demand issues and the cost of materials going up, clients are faced with increasing budget and costs for services.
With all this in mind, it’s safe to say the next five to seven years are going to be incredibly busy for the industry. Good project management will be essential to keeping aviation construction and development on course while also offering the potential to spot new opportunities or collaborations that will provide a boost for airports if needed.
Understanding NEC contracts and the various procurement routes for airports is going to be vital. EDGE has had experience in advising clients in the X22 Clauses on NEC4 Contracts which promotes early contractor involvement – this was something the airport then chose to go with.
Software such as CEMAR is recommended for contract communications, as it helps keep discussions clear and removes ambiguities. In addition, the option to use X10 in contracts also helps clients with information management, while acknowledging the status of BIM.
Overall, the outlook is positive for the aviation industry, but more innovative approaches and reliable expertise will help it to navigate the obstacles to reach new heights.
You can learn more about more about how EDGE has worked with aviation giants such as Heathrow and British Airways here.
