July 28, 2016

Byrne Group to replace Dunne on 100 Bishopsgate and One Blackfriars

Contractors started scrambling to secure replacements for Dunne Group on jobs across the UK after the firm went into administration this week. Brookfield Multiplex, which has employed Dunne Group on multiple projects, is understood to have moved quickly to replace the firm on 100 Bishopsgate and One Blackfriars to ensure

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Industry associations launch major Brexit survey

Industry associations launch major Brexit survey Published:  11 August, 2016 A new survey on the impact of the Brexit vote on the building services engineering sector has been launched by the Electrical Contractors’ Association (ECA), the Building Engineering Services Association (BESA) and Scottish electrical trade body SELECT. The survey aims

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Turner & Townsend turnover passes £400m

The global footprint of construction consultant Turner & Townsend helped it to maintain solid growth in the past year. Above: Chief executive Vincent Clancy Overall, turnover was up 8% to a record £409m (2015: £379.9m) and profit after tax was up 9% to £30m for the year ended 30th April

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Ravenheat launches search for oldest boilers

Ravenheat launches search for oldest boilers Published:  21 April, 2016 Boiler manufacturer Ravenheat is searching for its oldest combi boiler in the country after installers discovered a 30-year-old wall-hung combi in a property in West Yorkshire. Bradford-based A Adams & Sons Heating attended a property in Calverley, where they found

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Race starts for £110m Scottish sewerage works

The project, based at Daldowie on the River Clyde, will include the design, construction, delivery and commissioning of a tertiary chemical dosing plant and a granular activated sludge plant to clean wastewater. The tender is divided across two lots of £55m, but Scottish Water has said that its preference is

Read More »

Civil Contractors Forecast Downturn

Civil engineering contractors believe that growth years are now over, according to the first national poll since the EU referendum. According to the Civil Engineering Contractors Association’s (CECA) most recent quarterly workload trends survey, the sector’s boom period seems to be coming to an end as major projects stall. In

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Solar Trade Association Forecasts More Solar Job Losses

The latest research published by the Solar Trade Association (STA) and PwC has found that a third of solar jobs have been lost over the last 12 months, while a further 30% of solar firms have forecast staff cuts over the next year. The study surveyed 238 solar industry businesses

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MP Calls on More People to Join Construction Industry

Conservative MP, Ranil Jayawardena, has called on more people to join the construction industry during a visit to a huge local leisure centre redevelopment. Jayawardena visited the Hart Leisure Centre site to experience construction industry work first hand and to meet the next generation of talent in the industry. Hart

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Home Brewing Kit Maker Fined after Employee Loses Hand

A home brewing kit manufacturer based in Ellesmere Port has been fined after one of its employees lost a hand when cleaning a blending machine. The Health and Safety Executive (HSE) prosecuted SPL International Ltd after the incident at Poole Hall Industrial Estate in Ellesmere Port on October 21, 2014.

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Latest Issue
Issue 332 : Sept 2025

July 28, 2016

Client and contractor satisfaction improved but profits fell in 2015, construction KPIs reveal

Levels of client and contractor satisfaction rose in 2015 and project predictability improved, but profitability has taken a hit and productivity continues to drag, finds CITB-commissioned report. The 2016 UK Performance Report, carried out by Glenigan who surveyed over a 1,000 industry representatives on projects completed in 2015, paints a broadly positive picture for construction during a period of slowing but steady growth. Both client and contractor satisfaction improved significantly with 85% of clients rating their ‘overall satisfaction with the finished product’ as 8 out of 10 or higher – a 4 percentage point increase that reverses a declining trend of the last three surveys. Contractor satisfaction with the performance of the client and consultancy teams also rose to 74% – up from 69% in the previous survey. Accurate predictability of projects improved overall, but costing forecasts fared better than allocated time predictions. Sixty four per cent of projects came in on budget – a rise from the previous survey high of 59% in 2011. But only 41% of projects came in on time and the predictability of the design phase slipped to 48% from 53% from last year. Increasing labour and material costs meant that industry profitability took a hit, dropping from 2.8% to 2.5%. And though productivity increased by 2.5% in real terms, it is still well below levels reported in 2011 when employers were making more efficient use of a slimmed down workforce. Training levels increased from 1.2 to 1.5 training days and the take up of CSCS cards strengthened, with 75% of employees holding a card, up from 55% in 2014. Staff turnover slowed to 2.7% but more firms are reducing the size of their workforce. The average firm lost 7.0% of their direct employees – up from 6.3% in last year’s report. Steve Radley, Director of Policy & Partnerships, CITB said: “There are some really encouraging findings in this latest industry performance report. Improvements in client satisfaction, predictability and training levels are excellent news – especially where trends have been reversed. “However, the findings hold stark warnings too. Increasing pressure on margins driven by tough market conditions has begun to impact the bottom line and employers are reducing their workforce to minimise risk. “But operating on such tight margins is unsustainable. We need to find new ways to attract and develop the skilled workforce that will drive up performance and profitability. We are working with our industry to agree the best way to help it to do this.” Allan Wilén, Economics Director, Glenigan commented: “The latest survey results reveal a construction industry working hard to meet clients’ expectations and progressively improving its performance across a wide range of economic, social and environmental measures.   The construction industry is potentially facing a period of volatile workloads and structural change as the UK economy adapts to life outside of the EU. This will require the industry to redouble its efforts to upskill the workforce, enhance productivity and contain costs.” Source link

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Byrne Group to replace Dunne on 100 Bishopsgate and One Blackfriars

Contractors started scrambling to secure replacements for Dunne Group on jobs across the UK after the firm went into administration this week. Brookfield Multiplex, which has employed Dunne Group on multiple projects, is understood to have moved quickly to replace the firm on 100 Bishopsgate and One Blackfriars to ensure the schemes aren’t delayed. At 100 Bishopsgate, Dunne Group had been on a 92-week, £36m deal to provide concrete substructure and superstructure works. One source claimed the project manager and slipform manager have left the 100 Bishopsgate project, with Byrne taking on the deal and employing staff previously working for Dunne Group. At One Blackfriars, the contractor had been working on a 50-storey post-tensioned tower off podium level with inclined in situ columns including the central core. Laing O’Rourke’s Expanded business had carried out the substructure work, but Dunne Group took on the superstructure work for Brookfield Multiplex. It is understood work has stopped at Newington Butts as Mace seeks a replacement for Dunne Group on the site. This could include appointing a replacement contractor to the scheme or Mace directly employing the Dunne Group workers to finish the job. Construction News understands that Mace will make a decision on this next week, after it has spoken to the administrator. A source told CN suppliers were seeking to reclaim equipment while Mace decides how to replace Dunne Group on the project. The source told CN that Dunne Group had paid around £1m for pump and piping equipment at 100 Bishopsgate and that the group’s assets would “surely outweigh its debts”.  Santander told CN yesterday that Dunne Group had been making “substantial losses” and that ”despite having provided increased facilities on numerous occasions to keep the business trading, the company was insolvent”. A senior source disputed this, saying Santander had withdrawn credit facilities, forcing the Dunne Group into administration, despite it being “profitable” in the first half of 2016  Byrne Group has been contacted for comment. Brookfield Multiplex and Mace declined to comment.     Source link

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Industry associations launch major Brexit survey

Industry associations launch major Brexit survey Published:  11 August, 2016 A new survey on the impact of the Brexit vote on the building services engineering sector has been launched by the Electrical Contractors’ Association (ECA), the Building Engineering Services Association (BESA) and Scottish electrical trade body SELECT. The survey aims to identify the key issues within the sector following the UK’s landmark decision to leave the European Union. The survey covers the likely implications of Brexit for the sector, including the UK government’s exit negotiations with Brussels. The results of the survey will inform the representational work of the ECA, BESA and SELECT as the government develops its Brexit negotiating position and establishes new approaches to domestic and international policy and legislation. Rob Driscoll, director of commercial and legal at BESA, said: “The referendum vote has created business uncertainty and knocked confidence just when the economy was showing signs of gradual recovery after the financial crash. However, there is a lot of misinformation and scaremongering out there – the UK is in danger of talking itself into a recession. “It is vital, therefore, to gather good quality, accurate market intelligence at a time like this so businesses can make investment and recruitment decisions based on what is actually happening. We need to build up a picture of what Brexit could really mean for our sector and which issues most concern our members so that we can provide useful advice and guidance.” Paul Reeve, director of business services at the ECA, added: “The Prime Minister has famously said that ‘Brexit means Brexit’. She quickly added that the UK is going to ‘make a success of it’, and so it’s now up to our sector to help shape UK government policy and to identify the opportunities, and solutions to the challenges ahead.” The survey has just 12 questions and will usually take around five minutes to complete. It is open to all contractors in the BSE sector, and most notably ECA, BESA and SELECT members. The survey findings will be shared with member-firms and key stakeholders from across the industry, this autumn. The online Brexit survey, which runs until Tuesday 6 September, can be accessed at https://www.surveymonkey.co.uk/r/TJWQ5WY. Source link

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Turner & Townsend turnover passes £400m

The global footprint of construction consultant Turner & Townsend helped it to maintain solid growth in the past year. Above: Chief executive Vincent Clancy Overall, turnover was up 8% to a record £409m (2015: £379.9m) and profit after tax was up 9% to £30m for the year ended 30th April 2016. Net revenue, excluding subcontract revenue, was up 7.9% to £378.2m (2015: £350.5m). Turner & Townsend, which employs nearly 4,300 staff across 97 offices worldwide, has now notched up six consecutive years of revenue growth and profits have grown threefold since 2012. The company’s senior management attribute the success to the geographic footprint and the diversity of activity spread across three core sectors – real estate, infrastructure and natural resources. Thus the company’s Middle East operation balanced last year’s abrupt fall in oil prices through increased real estate and infrastructure work – growing total revenue in the region by 24%. There was similar growth in the Australia and New Zealand operation. Mainland Europe saw 9% growth, while turnover in the UK and Ireland was up 14% to a record £180m. Revenue also grew in Africa and Latin America. Across its sectors, Turner & Townsend reported growth in global real estate revenue (up 15% to £196m) and infrastructure (up 16% to £123m), which more than offset a 20.4% fall in the natural resources sector. Commissions secured during the year included work on US airports in Houston and Dallas, the UK’s HS2 rail line and Australia’s largest-ever hotel and residential complex, The Jewel. Turner & Townsend also converted back into a partnership business during the year after eight years as a public limited company (plc). Chief executive Vincent Clancy said:  “Our achievements are a testament to the strength of our business, despite a backdrop of significant volatility. The past year has seen us become the partner of choice for many of the world’s largest capital programmes, and our diversified business model continued to serve us well – giving us the flexibility to adapt to changes in individual markets. “We’ve grown our global footprint, supporting our key regional hubs and strengthening our operations around the world to better serve our clients wherever and whenever they need us. “Through our partnership, we’ve continued to invest in our people by giving a pathway for our most talented employees to become partners – with a say in how the business is run and a share in our success. “With the UK set to leave the EU and volatility in other global markets, these are changing times for our industry. However, 70 years on from our formation, I am confident our strong business model and investment in our capability will continue to see us on the right path to deliver long-term sustainable growth.”     This article was published on 26 Jul 2016 (last updated on 27 Jul 2016). Source link

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Ravenheat launches search for oldest boilers

Ravenheat launches search for oldest boilers Published:  21 April, 2016 Boiler manufacturer Ravenheat is searching for its oldest combi boiler in the country after installers discovered a 30-year-old wall-hung combi in a property in West Yorkshire. Bradford-based A Adams & Sons Heating attended a property in Calverley, where they found a fully functioning RSF 820/20. It was installed in 1986 and was the 1,225th boiler manufactured by Ravenheat in this particular model. The boiler was still fully functioning and providing heating and hot water. It was only taken out because the homeowner was carrying out a property renovation and wanted a newer model. A Ravenheat combi condensing boiler WH90 was installed in its place. Ravenheat believes the potential is there for numbers 1 to 1,224 to still be in use – and installers up and down the country are being asked to join in the search. Alan Adams, Director of A Adams & Sons Heating, said: “We’ve been dealing with Ravenheat boilers for more than 20 years and our team regularly encounters models over a decade old. This is testament to the quality of the products and the excellent work installers are doing.” John Wilson, technical service manager at Ravenheat, said: “Ravenheat boilers have always included premium components, so we’re not surprised this 30-year-old model was still going strong! With a 12 to 15-year working life, we’re confident the WH90 will perform just as well. We’d love to hear if anyone can beat the 1986 model. Ravenheat installers are often getting in touch to let us know how our boilers have stood the test of time, so we’re interested to see just how many are out there.” Any installer who encounters a Ravenheat boiler with a long lifespan is asked to get in touch via the company’s Twitter account @RavenheatUK. Source link

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Race starts for £110m Scottish sewerage works

The project, based at Daldowie on the River Clyde, will include the design, construction, delivery and commissioning of a tertiary chemical dosing plant and a granular activated sludge plant to clean wastewater. The tender is divided across two lots of £55m, but Scottish Water has said that its preference is to appoint both lots to one bidder, based on a “most economically advantageous tender” evaluation. In total, the project is expected to last for 18 months, while a maximum of five bidders will be invited to tender. In April last year, Scottish Water appointed a Galliford Try, MWH Treatment and Black & Veatch joint venture as preferred bidder on its £560m non-infrastructure Quality and Standards IV framework. Works for the framework include design-and-build projects for Scottish Water’s water and wastewater treatment programmes, including new-build projects and upgrades. The operator also appointed an Atkins/RPS JV and a Mott MacDonald/MWH JV to its £120m consultancy framework in February this year. Source link

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Civil Contractors Forecast Downturn

Civil engineering contractors believe that growth years are now over, according to the first national poll since the EU referendum. According to the Civil Engineering Contractors Association’s (CECA) most recent quarterly workload trends survey, the sector’s boom period seems to be coming to an end as major projects stall. In the second quarter of this year, six out of 10 civil engineering subsectors reported a fall in workloads. Compared with a balance of over 20% reported in the first quarter, workloads increased for a net balance of just 2 percentage points; the lowest growth balance in three years. Alasdair Reisner, Chief Executive of CECA, said that these results are bad news for the UK economy and need to serve as a warning sign for policy makers. He said: “We know that infrastructure investment is a driver of economic growth. Given the recent disappointing economic forecasts following the Brexit vote, our figures show that the market is slowing just as the country needs it to speed up. “The new government can’t afford to sit on its hands. There are existing committed programmes of work where we need to see the delivery of schemes – now – if this situation is to be reversed.” Reisner also believes that unless the government is able to kick on and ensure more work for the construction industry, then a dramatic slowdown in growth is inevitable, which will spell trouble for the 200,000 workers in the sector, as well as bad news for the country on the whole. Earlier in the month, CECA said that new Prime Minister Theresa May must commit to infrastructure at the start of her tenure. Reisner commented: “The government must provide certainty on other elements of the country’s infrastructure investment pipeline. After three weeks of uncertainty, the new government must hit the ground running, and commit to a bold infrastructure agenda.”

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Solar Trade Association Forecasts More Solar Job Losses

The latest research published by the Solar Trade Association (STA) and PwC has found that a third of solar jobs have been lost over the last 12 months, while a further 30% of solar firms have forecast staff cuts over the next year. The study surveyed 238 solar industry businesses which employ 3,665 staff between them now compared with 5,362 at the same time last year, which is a 32% fall. The analysis shows that four in 10 companies are left with no alternative but to diversify into other markets or completely exit the solar market to keep their businesses going. The survey also found that the number of job losses over the last 12 months could exceed 12,500, which is about a third of previous total employment in the sector. In the next year, solar deployment is expected to fall from the 1GW average of the last five years to fewer than 300MW in the next 12 month period, which is a fall of 75%. For quite some time the STA has been concerned with the UK’s lack of industrial strategy for the solar industry despite global energy investments being dominated more and more by solar power. Now, the UK government is allocating just 1% of new renewable energy project expenditure to solar power under the Feed-in Tariff. Therefore, the new Department of Business, Energy & Industrial Strategy represents a much welcomed chance to adopt a strategic approach to a relatively cheap and winning technology, according to the association. STA’s Head of External Affairs, Leonie Greene, said that the survey shows that the British solar industry has suffered damage and the government should act promptly to resolve this. Greene added: “We urge new ministers, rather than increase the tax burden of going solar, please reward investment with sensible solar tax breaks consistent with action on climate change. International experience of tax breaks is solid, and the industry is clearly behind this.”

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MP Calls on More People to Join Construction Industry

Conservative MP, Ranil Jayawardena, has called on more people to join the construction industry during a visit to a huge local leisure centre redevelopment. Jayawardena visited the Hart Leisure Centre site to experience construction industry work first hand and to meet the next generation of talent in the industry. Hart Leisure Centre is a £23 million project being constructed by Willmott Dixon in Fleet, Hampshire. Over the next five years, CITB has forecasted that more than 230,000 new construction jobs will be created in the UK, meaning that more workers are needed urgently in the industry. MP for North East Hampshire, Jayawardena said: “I thoroughly enjoyed my visit. It just proves how successful and rewarding a career in construction can be. After experiencing this first-hand, I would encourage everyone to consider a career in construction.” Meanwhile, CITB Partnership Manager, Hayley Coe, said that such site visits are a great way to inspire more people to pursue a career in construction and it is an excellent chance to show how rewarding a career in the industry can be. Coe added: “There is no better time than now, with over 8,500 new construction jobs expected to be created over in the South East over the next five years. She also urged anyone with an interest in pursuing a career in construction to visit the industry website – Go Construct. The Hart Leisure Centre site recently opened its gates to the public as part of Open Doors 2016 – a joint initiative between the Construction Industry Training Board (CITB) and Build UK. The new centre recently celebrated a significant milestone as the ‘topping out’ ceremony took place earlier in the week. Tim Southern, council chairman, said: “The structure is impressive and now the building is at its highest point we will see the centre come to life.”

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Home Brewing Kit Maker Fined after Employee Loses Hand

A home brewing kit manufacturer based in Ellesmere Port has been fined after one of its employees lost a hand when cleaning a blending machine. The Health and Safety Executive (HSE) prosecuted SPL International Ltd after the incident at Poole Hall Industrial Estate in Ellesmere Port on October 21, 2014. Liverpool Magistrates’ Court heard how the injuries sustained by the worker led to his right hand below the thumb and fingers being severed and he has since been unable to return to work. On the day that the incident occurred, the employee was asked by his supervisor to carry out a task that he had done before – cleaning the ‘Ritchie blender’, a Kek Gardner horizontal cantilever mixer. He turned the blender off at the mains before cleaning and drying the inside of the blender and then turned the power back on. However, sometime after water was seen dripping from the rim of the outlet hole underneath and as he attempted to dry the rim he placed his hand into the access hole which made contact with the blades. With the machine still running, there was nothing in place in the machine to prevent his hand from making contact with the blades. SPL International Ltd, of Poole Hall Industrial Estate, Ellesmere Port, Cheshire, pleaded guilty to a breach of Section 2 (1) of the Health and Safety at Work etc. Act 1974 as the firm had failed to carry out a risk assessment relating to the risks associated with the cleaning of the blender. As a result of the incident, the company was hit with an £8,000 fine and ordered to pay just over £7,000 in prosecution costs. Jane Carroll, HSE Inspector, said after the hearing: “This case is a stark reminder of the consequences of a failure to adequately guard machinery and implement safe systems of work for cleaning and maintenance activities.”

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