Briefing Spring 2021 v11 (FINAL)_04.05.21

? BRIEFING Construction, Economic and Procurement Update SPRING 2021 MDA 1951-2021 - 70TH ANNIVERSARY YEAR MARKET REFLECTIONS Steve Jones, Managing Director Welcome to this special 70th Anniversary Edition of Briefing – scary to think I have been with the firm for nearly half of those years, having joined in 1987! Our Chairman has been with us for over 45 years and we have two young gentlemen, both still going strong, who joined us in 1973 - MDA certainly has inspired loyalty over the years. Incidentally, 1973 was the year the UK joined the Common Market. Don’t get me started on that but maybe there was one good thing that came out of 2020 after all, in that at least “that” was settled, for better or for worse. Incidentally again, not many people know, but we acted on the original construction of the European Parliament building: Berlaymont Building, Brussels Major new build HQ/office building to house the European Commission in Brussels. The building was extremely highly serviced, to a high specification and took ten years to complete. MDA acted as Cost Consultant and monitoring/checking surveyor to the principal consultant Ernst & Young (1992-2002). Whilst all the focus should be on our 70th year, it is difficult to put our 69th year behind us. As our Chairman Kevin Heaton says in the following article, “2020 was a year like no other” and he is right of course. Unfortunately, as a result, our anniversary celebrations have been delayed somewhat and whilst spirits remain high, we are itching to get going in the Autumn and arrange one or two functions in the run up to Christmas. www.mdaconsulting.co.uk @MDAtoday

MARKET REFLECTIONS (CONT’D) Covid has been a disaster for large sectors of the UK’s, and indeed the World’s, economy but, if we are honest, construction has probably had it easier than most. The end of March, April and May 2020 were uncertain months, but most sites re-opened quickly thereafter and there has been some form of normality in the sector since. Of course there have been local difficulties, and labour and material shortages, but at least the sector has kept going, unlike others that have been on hold for long periods. I am hopeful with the success of the vaccine programme and the further lifting of lockdown in June there will be an increase in confidence and that all sectors are able to recover quickly. For our own part, group turnover dropped by a little over 5% during 2020 but we have recovered and are forecasting a return to in excess of pre-pandemic income levels by September 2021. Profit stabilised and then increased in the period as some expenditure (most notably salaries, marketing, business development and travel to name a few) reduced during lockdown. We also managed to build up our balance sheet and cash reserves and are confident about the future, despite the many challenges that still exist. Personally, I never met Messrs Monk and Dunstone, who set the business up in the years immediately after the Second World War. I suspect though they would find it hard to imagine all the changes that have taken place in the intervening 70 years – the world now is a much different place to what it was in 1951 and not all of the changes have been for the better, it has to be said. We have also included some of the notable events from 1951, both sporting and otherwise, and also some of the iconic and significant projects on which we have worked over the years. I hope you will find both sections interesting and make you think a little. Thank you to everyone who has worked for MDA over the years, for making the stories and creating some of the legend, both good and bad. A special thank you to the current crop, who really are the best of the best and who have contributed massively to the success of recent times. Here’s to the next 70 years. We were thinking of writing the MDA story thus far but there was too much material and we ran out of time anyway, so I say again and finish with....“roll on the next 70 years.”

TENDER PRICE FORECAST Kevin Heaton, Chairman 2020 was a year like no other for the UK construction industry. In their latest release the Office for National Statistics (ONS) revised the annual construction growth for 2020 downwards from an annual fall of 12.5% to a fall of 14%, the largest decline since annual records began in 1997. However, the industry has recovered well and with an EU-UK trade deal now in place and the success of the vaccine rollout there is a sense of growing optimism in the construction industry and the wider UK economy. According to the ONS construction output grew by 1.6% in February 2021 to £13.319m, the highest month-on-month increase since September 2020 when it grew by 1.8%. The increase follows zero growth (revised down from 0.9%) in January 2021 and a fall of 2.9% in December 2020. The 1.6% increase in output is due to a 1.5% increase in new work and a 1.9% increase in repair and maintenance. The monthly increase in new work of 1.5% was due largely to a growth in new private commercial work of 4% whilst the growth of 1.9% in repair and maintenance was due to increases in both private housing and non-housing repair and maintenance of 4.7% and 2.6% respectively, which more than offset the 8.6% fall in public housing repair and maintenance which is a much smaller sub-sector. February 2021 saw increases in all new work sectors except infrastructure which fell by 3.4%. Notwithstanding the fall in infrastructure output, it remains the only new work sector above its pre-pandemic level. The three month- on-three month figures show construction output fell by 1.0% in the three months to February 2021 compared with the previous three month period due to falls in new work and repair and maintenance of 1.6% and 0.1% respectively. Despite the growth in the month-on-month figures for February 2021, the total level of construction output remains 4.3% below its February 2020 pre-pandemic level. Following the 9.9% fall in UK GDP in 2020 the Office for Budget Responsibility (OBR) in their latest Economic and Fiscal Outlook expects GDP to grow by 4% in 2021 and to regain its pre-pandemic level by the second quarter of 2022, some six months earlier than forecasted in November 2020. In their view the rapid rollout of effective vaccines should lead to a quicker and more sustained economic recovery than was previously forecast, resulting from the easing of restrictions generating a rebound in consumption and output partially supported by the releasing of extra savings built up by households during the lockdown. The latest GDP estimates published by ONS show that GDP grew by 0.4% in February 2021 following a fall of 2.2% in January 2021 (revised down from 2.9%) as Government restrictions affecting economic activity remained in place. Following the record falls in GDP reported in the months following the emergence of Covid-19, overall GDP is currently 7.8% below the pre-pandemic February 2020 levels with the services sector 8.8% below, production 3.5% below and the manufacturing and construction sectors 4.2% and 4.3% below respectively. In line with OBR and ONS projections the National Institute of Economic and Social Research (NIESR) are also forecasting stronger growth than previously expected thanks again to the rapid rollout of the UK’s vaccination programme and the easing of restrictions. Whilst GDP is likely to have fallen by around 1.5% in the first quarter of 2021 as a result of the latest lockdown and temporary disruption to EU-UK trade at the turn of the year, they are predicting growth of 4.6% in the second quarter driven by pent up demand and a return to pre-pandemic levels in the hospitality and retail sectors. The month-on-month forecast for March 2021 is an increase of 1.8% followed by growth of 2.2% in April 2021 driven by the re-opening of pubs and restaurants.

TENDER PRICE FORECAST (CONT’D) Looking further ahead, NIESR are forecasting GDP growth of 3.4% in 2021 and 4.3% in 2022 before falling to 2.4% in 2023, 1.9% in 2024 and 1.7% in 2025. HM Treasury’s Forecasts for the UK Economy from a variety of independent sources (average of new forecasts) predicts GDP growth in 2021 to be 4.8% increasing to 6.1% in 2022. The improved outlook projected by many forecasters is echoed by the latest IHS Markit/CIPS UK Construction PMI which reported robust growth in all major categories of construction during March 2021. The IHS Markit/CIPS UK Construction PMI Total Activity Index rose steeply from 49.2 in January 2021 and 53.3 in February 2021 to 61.7 in March 2021, signalling the strongest rate of construction output growth since September 2014. Encouragingly, their latest survey also provided a strong indication of growing confidence in the outlook for construction activity in the year ahead. According to IHS/CIPS growth projections were also the most promising since 2015 reflecting increased confidence in the UK economic outlook, the improving pandemic situation and the existence of significant pent up demand. Despite the improved economic outlook the construction industry faces some specific challenges and risks remain, particularly with regard to supply chain pressures leading to longer delivery times, especially for imported items. Rising prices are also of concern with IHS/CIPS reporting that March 2021 saw the steepest rise in purchasing prices since August 2008. Other risks include the skills shortages and loss of significant numbers of EU workers returning home since January 2020, as reported by the Construction Products Association, and the impact this may have on the capacity of the UK construction industry workforce to respond to an increase in construction activity. Further risks surrounding the EU-UK trade deal also remain given the extent to which materials used in the construction industry are sourced from the EU and the extent to which further friction in trade may emerge in future. In this current climate it is likely that contractors will seek to reduce their risk in this respect as much as possible and look to reduce any long fixed price durations as well as seeking to introduce a number of Brexit and/or pandemic related terms into contracts for clarification and negotiation. All of these issues will no doubt have an impact on the recovery and expected upturn in construction activity in the coming months and it is likely that the strength of any recovery will vary between sectors and between different UK regions. The UK construction industry is already responding to changes in the way we live and work such as adapting offices to meet changing work patterns, the regeneration of town and city centres and the need to build an increasing number of houses. Increased public funding and investment in infrastructure forms a key part of the Government’s recovery plan for the economy post-pandemic. With the EU-UK trade deal and the success of the vaccine rollout investor confidence should return to the market and many indications point to a ‘V’ shaped recovery, however, risks to such a recovery remain particularly regarding the continued progression towards full vaccination and the opening up of the economy, as well as the potential impact from the ending of the various Government business support schemes and possible further Brexit related difficulties. Improvements have occurred in site productivity as contractors have learnt to adapt and respond to the new Site Operating Procedures during the course of the pandemic. The need for restricted numbers of site operatives has led to contractors increasingly looking to off-site components to maintain or increase productivity, a situation which is likely to gain momentum in the event of the loss of further EU labour.

TENDER PRICE FORECAST (CONT’D) A mix of inflationary and deflationary pressures still exist in the market, which added to the ongoing uncertainty over supply chain capacity, material and labour costs and availability, as well as the risk of further possible related Brexit issues and the dependence on a successful vaccination rollout, means that forecasting remains extremely uncertain. According to the ONS new orders in the construction industry fell by 8.8% in the fourth quarter of 2020 after a marked recovery in the third quarter following the collapse of orders in the second quarter after the emergence of the pandemic and lockdown. Any weakening in the levels of new orders during 2021 will exert further deflationary pressures in the tendering climate. From experiencing a range of negative and flat tender price inflation during 2020 we anticipate modest but increasing tender inflation as 2021 progresses and the recovery strengthens. As the number of projects and tendering opportunities increasingly emerge following lockdown together with labour and material cost pressures continuing to build up, we anticipate gradually increasing tender price inflation for 2022 and beyond. Our current projection is for tender price inflation to range between +1 to +2% in 2021; +2% to +3% in 2022; +3% to +4% in 2023 and +3% to +4% again in 2024. Kevin Heaton - Chairman | E: [email protected] | T: 0117 929 2641 Note: Forecasts of tender price inflation are indicative only and actual inflation will be dependent on the particular circumstances of each individual project including size, procurement route, programme, risk transfer and the prevailing market conditions in each location. For further information on forecasts of tender price inflation in your particular region, please contact your local MDA Consulting Ltd office. Our Tender Price Forecast uses published data current at the time of writing which may be subject to revision in subsequent releases. As a result of differences in release dates the impact of COVID-19 and other significant market factors will inevitably vary between publications. Sources: Office for National Statistics (ONS): Construction Output in Great Britain: February 2021 (date 13 April 2021) Office for Budget Responsibility (OBR) Economic and Fiscal Outlook: March 2021 (date 3 March 2021) Office for National Statistics (ONS): GDP Monthly Estimate UK: February 2021 (date 13 April 2021) National Institute of Economic and Social Research (NIESR): Monthly GDP Tracker (date 13 April 2021) National Institute of Economic and Social Research (NIESR): UK Economic Outlook Series A No 1 February 2021 (date 8 February 2021) HM Treasury Forecasts for the UK Economy: a comparison of independent forecasts No 404 (date March 2021) IHS Markit/CIPS UK Construction PMI (date 8 April 2021) Barbour ABI Snap Analysis: March 2021 Building Cost Information Service (BCIS) Construction Products Association

GUEST ARTICLE CAPITAL ALLOWANCES WITHIN COMMERCIAL BUILDINGS John Lovell - Lovell Consulting Both owners and occupiers of commercial buildings can claim substantial capital allowances but this opportunity is often missed. This can be due to confusion over capital allowances rules changes or because non-specialist solicitors, accountants and tax advisors do not recognise the full potential of available allowances. Frequently, construction cost information can be unhelpful and not nicely segregated for capital allowances purposes. Currently the UK has a generous tax regime which has been improved with the introduction of Structures and Buildings Allowances. It is now possible to get tax relief on close to 100% of all expenditure on constructing, refurbishing or fitting out commercial buildings including hotels. A further benefit is that the first £1m incurred on plant and machinery is written off in the first year due to the Annual Investment Allowance. Construction & Fit Out Works by Tenants & Landlords The main reason allowances are missed on the construction and fit out/refurbishment of buildings is because of the lack of detail in construction cost information provided by contractors. This information can consist of high level summaries of the works and it is difficult for non specialists to break down and segregate these costs which can result in lost allowances. Even when good breakdowns of construction cost information are available, the opportunity to maximise capital allowances claims can be missed. Accountants and tax advisors can readily identify and claim simple Plant and Machinery (P&M) items that are nicely labelled and laid out in cost breakdowns such as heating and cooling systems, lifts and electrical services. However, often elements such as “finishes” or “demolitions & alterations” as well as associated professional fees are largely ignored and treated as ineligible for capital allowances. It is only after a site survey and further segregation and sensible cost assessments that additional allowances and repairs that would otherwise be missed can be identified. Furthermore, less obvious P&M that can often be missed in the construction of office buildings include:- • Builders work in connection with mechanical and electrical services • Acoustic and thermal insulation within existing buildings where provided • Demountable partitions • CAA 2001 s.26 strip out of plant and machinery during refurbishment works • CAA 2001 s.25 incidental costs such as works to lift and food hoist shafts within existing buildings

CAPITAL ALLOWANCES WITHIN COMMERCIAL BUILDINGS (CONT’D) Structures and Buildings Allowances (SBA) The Government introduced a new allowance for expenditure that does not qualify for allowances as plant or repairs. This applies to expenditure incurred after 29 October 2018. Before this date there was no tax relief available for structural type expenditure including walls, most floors and ceilings. Tax relief is now provided spread evenly over 33 years. It applies to most commercial properties but residential, serviced apartments and student accommodation are excluded. Expenditure on legal fees/SDLT and planning fees are also excluded. Consequently for many commercial buildings it is possible to get tax relief on almost all of the construction expenditure and fees. Annual Investment Allowance The Annual Investment allowance is currently £1m and has been extended to 1 January 2022. This means that for expenditure on any type of plant and machinery tax relief on the first £1m can all be provided in the first year. Additional allowances can be claimed above this £1m at normal slower rates of 18% and 6% depending on specific types of plant and equipment. The current fiscal incentives are generous. Repairs Where a building is refurbished, expenditure on repairs such as redecoration, like-for- like window replacement and cleaning is either not detailed or is lumped in with other costs on new installations which cannot be considered repairs. Repairs can be treated as a revenue expense and either deducted 100% in the year of expenditure or follow the accounting depreciation treatment. Typically, 10 – 20% of refurbishment works can be treated as revenue repairs if identified within the construction cost information. Commercial Acquisitions Commercial buildings are abundant with plant and machinery including air conditioning and ventilation equipment, passenger and goods lifts, lighting and fire alarm systems as well as sanitaryware, fixed furniture and carpets. Even when acquired ‘second hand’ through purchasing an existing office building, it is possible for purchasers to claim allowances on these assets.

CAPITAL ALLOWANCES WITHIN COMMERCIAL BUILDINGS (CONT’D) Why then is this opportunity to claim often overlooked by buyers and their professional advisors? The problem comes down to the fact that claiming allowances on ‘second hand’ fixtures is complicated and fraught with legislative restrictions. The main complexity is the meeting of new rules brought into practice in April 2014. The changes effectively meant that in order for a buyer of any commercial property to claim allowances, two requirements have to be met:- • A Seller that is entitled to claim allowances (i.e. a tax paying entity) must “pool” and insert the value of all fixtures qualifying for capital allowances within a relevant tax return • The Seller and Buyer must then agree the value of fixtures to transfer either by a s.198 tax election or by tribunal - this “fixed value” will then be transferred across to the Buyer These requirements must be met within two years of the purchase of the property; failure to do so will result in the Buyer, and all future Buyers, having no entitlement to claim allowances on their purchase. Due to misconceptions about what these rules mean for office investors, other property professionals commonly provide incorrect and conservative advice on capital allowances during transactions; if any advice is given at all. Another reason allowances are often overlooked is simply because of the difficultly in identifying P&M embedded within an existing structure. Whilst obvious plant and machinery assets, such as furniture and sanitaryware, can be easily recognised and documented, assets such as air conditioning and heating installations that are often hidden in ceiling voids or service risers are harder to spot and quantify for capital allowances purposes by non specialists. Recommended Approach For investors in commercial buildings, it is imperative that the Buyer’s position and intentions are set out early in the offer letter and heads of terms. It is vital to obtain specialist capital allowances advice before opportunities are missed. It is also important to consider capital allowances during the early planning stages of any construction or refurbishment of office buildings. As detailed above, construction cost information can be vague and difficult to break down for non specialists resulting in lost allowances. By considering allowances early and engaging a specialist capital allowances advisor, co-ordination with your project team can result in maximising allowances through effective planning, design and claiming accelerated tax reliefs. Lovell Consulting have a highly skilled and expert team, dual qualified in surveying and tax. Therefore we have the expertise to identify the unusual items of qualifying P&M, as well as segregate the high level construction costs into qualifying P&M items. Furthermore, we can provide practical assistance during transactions.

THE CLERK OF WORKS ROLE Sarah Jones, Clerk of Works - London Sarah Jones, one of our team of Clerk of Works, talks to Director and Head of our Residential team, Mark Fowler, about her role and experiences as a Construction Inspector, and some of the issues and challenges that the industry currently faces. Why did you first consider a career as a Clerk of Works? I had already had a long and successful career as a level 3 qualified carpenter and supervisor, during which time I had worked on a large selection of residential and mixed-use new build projects in and around London and the South East. During one of those projects in 2016, I met Mike Brooks (an Associate Director in MDA’s Residential team), as MDA were also carrying out the role of Construction Inspector for the Housing Association. Mike and his team were snagging one of the houses, and I was intrigued at the role that they were carrying out. I had been considering a career change for some time and had come to realise that my attention to detail and eye for quality might be well suited to such a role. I was particularly keen to progress with my career in the industry, so I worked with Mike to investigate the necessary training and career-progression that was available to me. I met the other members of MDA’s Clerk of Works team, and they were very active in encouraging me to pursue this career path, and to take the step from “Contractor” to “Consultant”. I have a keen eye for quality and a passion for exceeding our Clients’ expectations. Coming originally from a contracting background I am familiar with all aspects of construction and I always strive to form collaborative and effective relationships with the Contractor’s team that will assist in the production and delivery of high-quality projects. Having worked on residential sites throughout London and the South East, I understand that homes are incredibly important to everyone - regardless of tenure, location, size or type of property, every resident deserves the right to have a high-quality home and I have always felt a duty of care to help deliver this. I recall some historical data published which calculated that it is 5 times more expensive to put defects right once a project has been handed over, rather than getting it right in the first place. So, I feel that if I can be a part of that process, then I will be doing my small part to help our Clients and the industry improve the quality of our buildings. In fairness to most Contractors, I think they too are realising that it is better to spend the time and money upfront getting it right in the first place. Explain the qualification process for a Clerk of Works? The governing body for our team is The Institute of Clerks of Works and Construction Inspectorate (ICWCI), and they cover all aspects of training, qualification, standard, CPD and the like. Mike Brooks is a Fellow of the Institute, so he was able to explain to me the various grades of membership and qualifications – I started as a Student, and have now progressed to Licentiate member, with my next target being full Membership, which I hope to achieve within the next couple of years.

THE CLERK OF WORKS ROLE (CONT’D) The Institute holds regular meetings and CPD sessions (I am registered with the central London Chapter), and this is an essential way to keep up to date with latest trends and developments in our role, latest technology, and also to “compare notes” with other Inspectors about current issues. What sort of projects have you been involved with during your time at MDA? There has been a tendency for Clerk of Works to be appointed by our Public Sector clients, and I know that MDA have been involved with hundreds of schemes over many years for both Housing Associations and Local Authorities. However, in recent years, we have seen more appointments from our Private clients, who are also now looking to us for reassurance that high standards are being met on site, and that the specification is being complied with. I think all Clients realise that it is better to deal with a problem as soon as it comes to light, rather than leave it to be resolved at a later date, with the associated impact on other trades, finishes, coordination, etc. In my 3 years with MDA, the schemes that I have been involved with have included: - • A new build development of 57 apartments – this was completed last year for our long-standing Client, Newlon Housing Trust, and I worked closely with Steve Hurworth who was MDA’s Employer’s Agent and QS, to ensure that a high-quality product was achieved. • A project of extensive remedial works to a recent new build development of 32 apartments for Royal Borough of Kensington & Chelsea. • We are currently involved with a new build scheme of 38 apartments in Waltham Forest – again, this is for one of our long-standing HA Clients – Islington & Shoreditch Housing Association. • New build development of 117 high-end, high-spec apartments in Imperial Wharf Chelsea for the Hadley Group. As part of a post-Grenfell package of works, we were involved with the installation of sprinkler systems within 13 existing high-rise blocks for Croydon Council. Clearly, a project of this nature – working within residents occupied properties – involves a very careful and sensitive approach by all members of the team. We worked with the Contractors, Client and residents’ groups to ensure that the works were carried out to a high quality, and with the minimum of disruption and disturbance to the residents. I have recently completed my involvement with the modular construction of a new youth and community centre in Croydon, for Croydon Council, where I also undertook the role of Supervisor under the NEC Form of Contract. As with many projects these days, the modular element was a key component – as part of our role, I made regular visits to the modular factory in Belfast to inspect the works as they were being manufactured, and ensure that a high-quality build was achieved when the units were delivered to site. As well as many large-scale residential projects, I have also acted as CoW on more unique projects, including a new build primary / special school, and the refurbishment of the Town Hall in Chelsea – this was a Grade II Listed building, which meant that I was closely involved in all aspects of the refurbishment, to ensure that the Contractor complied with the strict rules regarding works on the existing structure and fabric of the building. Similarly, I also acted on the extensive phased refurbishment to a Grade II Listed school in Royal Borough of Kensington & Chelsea.

THE CLERK OF WORKS ROLE (CONT’D) So, all in all, I think that I cover a wide range of project types and sizes during a typical working week – it’s a phrase often used in construction that no two projects are the same; every job seems to have its own issues and challenges. During my early time with MDA, I also often accompanied our Senior Inspectors on some of their visits, and this was invaluable to me to understand some of the typical issues and pitfalls to look out for on my own projects. What sort of challenges have you faced in your role as a Clerk of Works? Obviously, most Clerks of Works that people come across tend to be former tradesmen, who have re-trained to become Inspectors. Whilst I still occasionally come across some “old-fashioned” attitudes on some sites, I am pleased to say that is the exception rather than the norm – and particularly if I mention that I worked on sites throughout London as a carpenter for 11 years, that soon seems to put an end to any negative perceptions. And I like to think that I can give as good as I get in any discussions about quality and workmanship…! How do you currently see any wider challenges for the industry as a whole? The whole issue of Fire safety – separation, strategy and protection are rightly under the spotlight across the industry. I know that MDA are involved on many high-rise, large volume projects, and it is important that we stay up to date with revisions to Building Regulations and standards generally, to ensure that we are aware of all relevant details, products, systems, etc during our site inspections. Covid has clearly had a major impact on the entire nation over the last 12 months, and I have generally been impressed with how most Contractors have dealt with the challenges of working in such difficult circumstances. There are the obvious issues of social distancing, which is notoriously difficult on large scale residential projects where many trades are working in close proximity to one another. In addition, there have also been related issues of increased site welfare provision (particularly difficult on congested, central London sites, where space is at a premium), staggered working periods and disruption to supplies of goods and materials. All of these need to be properly managed by the Contractors to ensure that they don’t have a detrimental effect on quality. The advancement in technology has also helped to make our reporting process much more efficient. Having invested in the Field View range of software, this means that we can record defects or issues very quickly, with reference to specific photographs and floor plans – many Contractors are also adopting this software, which means that our reports can be shared with them almost instantaneously, and so that any issues can be rectified promptly. As well as covering issues of quality and progress, our typical reports also cover issues such as numbers of operatives on site, Health & Safety arrangements, weather conditions, materials and plant on site, information required, etc – all of which is essential record information to both the Employer’s Agent and the Client, particularly in the event of later discussions about delays, extra costs, extensions of time, etc. So I think the Clerk of Works remains a valuable asset in the overall construction process to ensure that, not only a high quality product is achieved, but also to assist the rest of the Client team in ensuring successful project delivery.

MDA TIMELINE - 1951-2021 1951 Monk & Dunstone established 1962 First QS practice to purchase a mainframe computer and pioneer computer BQ production 1963 Commenced operations in Belgium 1966 Commenced operations in Mediterranean (Malta) 1970 Monk & Dunstone joined by Mahon & Scears (established 1946) 1970 MDA Cyprus opens 1971 MDA Bristol opens 1971 MDA Leicester opens 1975 Commenced operations in USA 1977 Commenced operations in the Middle East 1985 The MDA Group of companies was established 1985 MDA International Ltd commenced 1986 Commenced operations in Hong Kong and Australia through merger 1988 Acquired Leonard Fletcher & Partners 1989 MDA Newcastle opens 1990 Commenced operations in Germany through merger 1993 Acquired Wilfred Sykes & Needham 1994 Acquired L C Mann & Partners and Lintotts Project Management 1995 Commenced operations in Czech Republic and Poland 1997 MDA Birmingham opens 2001 UK trading company renamed as Monk Dunstone Associates Ltd 2001 Opened office in Hungary 2002 Monk Dunstone Associates (Central Europe) Ltd commenced 2003 Management Buyout completed and MDA Consulting Ltd created 2005 MDA Consulting (Turks & Caicos) Ltd commenced 2006 Acquired David Marshall Associates 2009 MDA Libya commenced 2011 MDA Oman opens 2012 MDA Brighton opens 2013 MDA Holdings Ltd created 2016 MDA Manchester opens 2017 MDA Specialist Insolvency Services commenced 2018 MDA Cardiff opens 2018 MDA Estates commenced 2018 MDA Developments commenced 2021 MDA 70th Anniversary MDA CONSULTING - 1951-2021 HONOURING OUR PAST AND LOOKING FORWARD TO THE FUTURE

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 Lloyds HQ, London MDA provided Cost Consultancy services to Lloyds Corporation (1978-1985) on their iconic HQ building. Value - £225m The landmark building stands at 88m high (289 feet), with 14 floors. The design includes striking public and meeting areas and catering and dining facilities, all in keeping with the grandeur of the external design. In 2008 The Twentieth Century Society called for the building to be Grade I listed which was granted in 2011. The project won international acclaim and cemented MDA’s reputation in the commercial sector. Whiteleys of Bayswater, London MDA provided Cost Consultancy and M&E Consultancy services to The Whiteleys Partnership (1987-1990) on this iconic mixed use development. Value - £45m Major retail and office development behind a beautiful retained façade.

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 Queen Elizabeth II Conference Centre, London MDA provided Cost Consultancy services to the UK Government (1981-1986) Value - £Confidential The QE II Centre is the largest dedicated conference and exhibition space in Central London. The facilities are located on 7 floors and can cater for up to 2,500 delegates. The works were let on the basis of a management contract, commenced in 1981 and the building was opened by Her Majesty the Queen in 1986. Stansted Airport Control Tower MDA provided Cost Consultancy services to the Civil Aviation Authority (1989-1991) Value - £Confidential The construction of a new 60m high control tower and associated two storey support facility (1,100m²). The tower was fast tracked using innovative slipform concrete construction and was built airside.

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 Little Britain, London MDA provided Cost Consultancy services to Wimpey Property Holdings (1987- 1992) on this state-of-the-art mixed use development. Value - £Confidential Works involved the construction of a 600,000ft² office building. The Methodist Movement was founded by John Wesley in the Block G residential building, hence its listing and refurbishment as new residential units. The famous regatta was started by the consultants working on this project. St Martin’s Le Grand, London MDA provided Cost Consultancy services to Kumagai (1990-1994). Value - £140m Demolition of existing building (former Post Office HQ) within 360 degree retained facade - construction of major new speculative office development including new basements within the facade. This was the largest retained facade scheme in the UK at the time. Works were let on the basis of a management contract.

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 New En Route Centre (NERC) for Air Traffic Control, Swanwick MDA provided Cost Consultancy services to the Civil Aviation Authority (1990-1995). Value - £115m MDA carried out an extensive Environmental Impact Study for the local authorities and this was successfully done within the overall programme period and to the satisfaction of all concerned parties. We completed an exhaustive selection process for the Management Contractor, finally selecting Bovis Construction Ltd. Rasin Building, Prague MDA provided Cost Consultancy services to ING Real Estate (1994-1996). Value - £7m A landmark piece of architecture, carefully designed by Frank Gehry to create a high quality office building and signature roof top restaurant within an architecturally sensitive location of the city centre.

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 Lantau Fixed Crossing, Hong Kong MDA provided Cost Consultancy services to Sir William Halcrow & Partners (1992- 1997). Value - £980m MDA provided services to the resident engineering team for the main infrastructure works to connect the new Hong Kong International Airport on the island of Chek Lap Kok to the Kowloon Mainland and Hong Kong Island. The contract works involved the construction of the Tsing Ma Bridge, the Kap Shui Mun Bridge, the Ma Wan viaducts and Toll Plaza. The works were procured using a bespoke Civil Engineering Form of Contract and method of measurement. No 1 Poultry, London MDA provided Cost Consultancy services to Stadtbau (1995-1998). Value - £Confidential A new landmark office development was constructed on this famous site in the mid 1990’s. It replaced a stone Victorian building which was loved by many and meant the development gained notoriety from the start and contributed to lengthy delays. The Stirling designed new building is colourful with an obvious ship prow metaphor and strong façade striation.

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 London Heathrow, Terminal 1 MDA provided Cost Consultancy services to Heathrow Airport Authority (1996-1998). Value - £Confidential Extension of the existing departures lounge including creation of dedicated passenger lounge area. Works involved adaptations to the existing baggage handling installations. County Hall, London MDA provided Cost Consultancy and Employer’s Agent services to Whitbread Hotel Company (1997-1999). Value - £35m The project involved the conversion of the former County Hall into a hotel. The hotel was split to provide 312 ‘budget rooms’ for Travel Inn Capital and 200 luxury 4* Marriott Hotel bedrooms and ancillary facilities. These works were undertaken within the Grade I listed building, together with the provision of a high quality leisure centre and a swimming pool.

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 The Pavilions, London MDA provided Project Monitoring services to Barclays Bank (1998-2000). Value - £29m Construction of a 122 unit luxury residential development in St John’s Wood. The apartments were constructed to a very high standard above basement car parking Zlaty Andel (Golden Angel), Prague MDA provided Cost Consultancy services to ING Real Estate (1999-2000). Value - £18m Construction of an office and shopping complex in the centre of Smichov, Prague. New air conditioned cooled offices, alongside local shops and a supermarket. Creation of a modern, convenient working environment outside the city centre.

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 New No 1 Court, Wimbledon MDA provided Cost Consultancy services to The All England Lawn Tennis Club (2001- 2003). Value - £Confidential The construction of a new No 1 Court Stadium and 7,500m² Broadcast Centre. The style of the completed development was stated to be “tennis in an English garden setting” and this meant that the building was set into the ground to reduce its visual impact on the development. The first half of the project required temporary “soil nails” to stabilise the hillside (later called “Henman Hill”), the removal of about 250,000m³ of spoil and many kilometres of reinforced concrete piles. GCHQ, Cheltenham MDA provided Cost Consultancy services to Carillion Building (2000-2004). Value - £250m Prior to this project, Government communication in the UK was spread across 2 sites. The development popularly known as the “Doughnut” brought together 4,000 staff on to this 40 acre site. The works involved the construction of a new innovative, environmentally sustainable 1,100,000ft² facility. The building has 3 identical offices covering 4 floors. The outer wall provides protection from external threats, while the inner space was designed to foster integration and community.

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 Arena Project, Prague MDA provided Cost Consultancy services to ING Real Estate (2000-2004). Value - £70m Construction of a mixed-use development comprising hotel, cinema complex, theatre, performance square, apartments, designer studios, office and retail, together with underground parking. Dozsa Gyorgy, UT 84 B & C, Budapest MDA provided Project Management, Cost Consultancy, Construction Management Site Supervision, CDM Coordination and M&E Coordination services to ING Real Estate (2001-2004). Value - £20m MDA worked with ING Real Estate on a number of projects in Europe and provided a total of six services on this new 46,000m² office scheme near Heroes’ Square. The project provided a new headquarters building for the ING Group, and comprised approximately 32,000m² of offices on up to seven levels above ground and 14,000m² of parking on three basement levels.

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 Roundshaw Estate, Surrey MDA provided Design & Construct Management, Project Planning & Programming, CDM Consultancy, Demolition Management, Party Wall Surveying and Fire Risk Management services to Hyde Housing Association & Metropolitan Housing Trust (1998-2009). Value - £150m A model urban regeneration project recognised by DCLG as an exemplar project in developing sustainable communities. The project involved the phased decant, selective demolition and redevelopment of 1065 dwellings, as well as community and leisure facilities, infrastructure works and new public realm spaces. Wimbledon Centre Court Roof Development MDA provided Cost Consultancy services to The All England Lawn Tennis Club (2004- 2009). Value - £Confidential The redevelopment of Centre Court Complex to provide an opening roof. Complete demolition and rebuilding of the East Stand, an upgrade of debenture holder facilities in the North Stand, the addition of 6 rows of terracing to the top of the bowl and the construction of a new fixed roof over the spectator seating area. Associated works included a chiller farm, sub-station complex, gatehouse at main entrance, and the replacement of most of the 1926 concrete terracing.

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 Veranda Grace Bay, Turks & Caicos MDA provided Cost Consultancy, Project Management and Development Consultancy services to Cherokee Ltd/ FAEZ Ltd (2005-2009). Value - US$100.0 million A luxury resort/hotel development in the West Indies comprising 168 private apartments, eight detached, beachfront cottages/villas, meeting space, ancillary circulation, reception in the main building and a signature beachfront restaurant. The completed development was managed by a leading Caribbean service provider. In addition to the construction, MDA also managed the procurement and installation of all the furniture, fixtures and fittings. Qatar National Museum MDA provided pre-contract Cost Consultancy services to French Architectural practice Atelier Jean Nouvel (2007-2012). Value - £Confidential New build National Museum. The buildings are arranged as low lying, interlocking pavilions and comprise 430,000ft² of indoor space, including 86,000ft² of permanent gallery space, 21,500ft² of temporary gallery space, a 220 seat auditorium, a 70 seat food forum and TV studio, two cafés, a restaurant and museum shop.

A LOOK BACK IN TIME - SOME ICONIC MDA PROJECTS 1951 - 2021 Louvre Museum, Abu Dhabi MDA provided pre contract Cost Consultancy services to Louvre Museum (2007-2013). Value - £Confidential A new museum located in UAE and part of a thirty-year agreement between the city of Abu Dhabi and the French Government. The museum is located on the Saadiyat Island Cultural District, and is approximately 24,000m² in size. Artwork from around the world is showcased at the museum, with particular focus placed upon bridging the gap between Eastern and Western art. Great Northern Hotel, London MDA provided Cost Consultancy, Project Management and Employer’s Agent Services to Aries GNH (GP) Ltd (2009- 2013) on this multi-award winning project. Value - £25m London’s first purpose-built railway hotel originally opened in 1854 to serve the Great Northern Railway Company. After a 12 year closure and a 3 year redevelopment plan, the Grade II listed building reopened in 2013 offering 91 rooms, 90 cover Plum and Spilt Milk restaurant and a separate ground floor bar.

A LOOK BACK AT LIFE IN 1951 Key Sporting Events March - England beat Scotland 5-3 at Twickenham in the Five Nations but went on to finish last with Ireland winning the Championship. April - Newcastle United won the FA Cup for the fourth time with a 2–0 win over Blackpool at Wembley Stadium. Jackie Milburn scored both goals in front of a crowd of 100,000. April - Nickel Coin won the Grand National at 40/1. May - Tottenham Hotspur were league champions for the first time. Everton and Sheffield Wednesday were relegated. July - The British Grand Prix at Silverstone was won by Argentinian José Froilán Gonzalez in a V12 Ferrari. It was his first victory and the first time Enzo Ferrari had won a Grand Prix with a car of his own company’s construction. The team went on to be the most successful in Formula One history. The UK’s Reg Parnell finished in 5th place driving a BRM. July - English boxer Randy Turpin beat American Sugar Ray Robinson in a fight in London to become world middleweight champion. July - The mens and womens Wimbledon singles titles were won by Dick Savitt (USA) and Doris Hart (USA). July - Golf British Open won by Max Faulkner (ENG). September - Cricket County Championship won by Warwickshire County Cricket Club, claiming their second title. October - A cricket team from England organised by the Marylebone Cricket Club toured India from 5 October to 2 March 1952. The first three Tests were drawn, with England winning the 4th by 8 wickets and India winning the 5th by an innings and 8 runs. Wisden Five Cricketers of the Year - Godfrey Evans, Sonny Ramadhim, Alf Valentine, Everton Weeks and Frank Worrell. Source: en.wikipedia.org Key Price Comparisons £1,994 (£61,615 in today’s money) £ 344 (£10,640 in today’s money) Average house price in London £ 615 (£19,004 in today’s money) Average salary 3s 7d (18p) (£5.14 in today’s money) Average car 0s 7d (3p) (77p in today’s money) Gallon of fuel 1s 0d (5p) (£1.59 in today’s money) Loaf of bread Pint of beer Source: hillarys.co.uk/back-in-my-day and Birmingham History Forum

A LOOK BACK AT LIFE IN 1951 Key Events George VI was King, reigning since 1936. Clement Attlee was the Labour Prime Minister until 26 October when Winston Churchill won the Election a month before his 77th birthday. January - production began on radio programme The Archers. February - Ferranti delivered their first Mark 1 computer to the University of Manchester, the world’s first commercially available general-purpose electronic computer. April - The Peak District was established as the first of the national parks of England and Wales. The Lake District followed in May with Snowdonia and Dartmoor in November. May - George VI opened the Festival of Britain on 3 May in London, including the Royal Festival Hall, Dome of Discovery and Skylon. It was the last major public event jointly attended by the King and Queen. Festival Gardens and a fun fair opened in Battersea Park, and the Lansbury Estate in Poplar began this year as a housing showcase. June - Lavender Hill Mob released starring Alec Guinness and Stanley Holloway. October - Zebra crossings and Austin A30 were introduced. November - UK bank rate, maintained at 2% since 26 October 1939, was raised to 2.5% on 8 November 1951. December - Prime Minister Winston Churchill travelled to the US for talks with President Harry S. Truman. The UK singles chart did not appear until the following year, but popular artists in 1951 included Nat King Cole, Tony Bennett, Rosemary Clooney, Perry Como, Mario Lanza, The Dominoes, Eddie Howard, Frank Sinatra, Frankie Laine, Guy Mitchell, Hank Williams, Johnny Ray, Vic Damone and Dinah Washington. Source: en.wikipedia.org

A LOOK BACK AT LIFE IN 1951 Famous Births 30 January - Phil Collins, musician 14 February - Kevin Keegan, footballer and football manager 15 February - Jane Seymour, actress 20 February - Gordon Brown, former Prime Minister 4 March - Kenny Dalglish, footballer and manager 4 March - Chris Rea, singer and musician 13 April - Peter Davison, actor 14 April - Julian Lloyd Webber, composer 27 May - John Conteh, light heavyweight boxer 8 June - Bonnie Tyler, singer 17 August - Alan Minter, middleweight boxer 2 October - Sting, rock musician 5 October - Sir Bob Geldof, singer and organiser of Live Aid Famous Deaths 2 January - Edith New, suffragette (aged 73) 30 January - Ferdinand Porsche, founder Porsche car company (aged 75) 6 March - Ivor Novello, actor, musician and composer (aged 58) 14 April - Ernest Bevin, labour leader, politician and statesman (aged 70) 14 August - William Randolph Hearst, newspaper baron and politician (aged 88) 27 September - Robert Thomas, politician (aged 78) 11 December - Christopher Addison, anatomist and politician (aged 82) Source: en.wikipedia.org

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