Category: Construction Industry Today | Subscribe to Construction Industry Today Feed Published Wed, May 4th 2016 PRECAST2016 is the biggest precast concrete show of the year, it is the annual Exhibition hosted by the British Precast Concrete Federation, with over 55 exhibitors showcasing their products and services. Posted via
Robert Gerrard, secretary of the NEC Users’ Group, seeks to dispel confusion over cost reimbursable contracts and disallowed cost. It goes without saying that throughout the lifecycle of any professional project contract, issues of cost are invariably among the aspects scrutinised by all involved parties. At the completion of contractual
A recent dispute between Murphy and a muckaway subcontractor throws up a lesson in drafting dispute resolution clauses. Theresa Mohammed reports. Above: Theresa Mohammed is a partner in dispute resolution and litigation at law firm Trowers & Hamlins Parties to construction disputes often enter into settlement agreements that seek to
RWE Innogy’s Galloper offshore wind farm has been given the green light thanks to its new backers. The construction of the £1.5 billion wind farm off the coast of Suffolk will proceed in November with almost 800 jobs created after they found three new partners to back the scheme. Last
The former boss of the Dunne Group has secured the MD role at the new Keltbray Structures business. The new reinforced concrete frame business was launched by Keltbray after it acquired some of the assets from the dissolved Dunne Group. The Keltbray Structures business is hoped to “complement and expand”
The Association of Plumbing & Heating Contractors (APHC), in collaboration with City & Guilds, has announced that it will host a series of free technical workshops throughout England and Wales during October this year. The sessions will take place in the morning and offer plumbing and hearing installers the chance
North Lanarkshire Council has announced that it will build a further 1000 council houses as part of its biggest investment in council housing for a generation. It will add a further 1,000 houses to its current programme with a £159 million spend, bringing the total number of council houses to
A joint venture has been formed between real estate consultancies AECOM, Gleeds and Pick Everard to deliver a £350 million Built Environment Consultancy Services (BECS) framework for Scape Group, the local authority-owned built environment service provider. This will be the first time that Scape has appointed a joint venture, with
CH2M is embarking on the second phase of the Thames flood protection project, which will see the biggest every improvement programme to protect London and Kent from flooding. The scope has now been agreed for the second year of CH2M’s work on Thames Estuary Asset Management 2100 Programme (Team2100), which
It is with great sadness that HUECK UK is announcing the passing of its Sales Director, Robert Bright. Robbie died in an accident in France, during a charity cycle ride that was raising funds for PAPYRUS Prevention of Young Suicide, in memory of his beloved son, George. He was part
Category: Construction Industry Today | Subscribe to Construction Industry Today Feed Published Wed, May 4th 2016 PRECAST2016 is the biggest precast concrete show of the year, it is the annual Exhibition hosted by the British Precast Concrete Federation, with over 55 exhibitors showcasing their products and services. Posted via Industry Today. Follow us on Twitter @IndustryToday J&P Building Systems will be at PRECAST2016, based at the Leicester Tigers Stadium, on the 12th of May. PRECAST2016 is the biggest precast concrete show of the year, it is the annual Exhibition hosted by the British Precast Concrete Federation, with over 55 exhibitors showcasing their products and services. We will be running a seminar on CDM health & safety how this can be linked to robust technical solutions. The British Precast Concrete Federation (BPCF) is the trade association of precast concrete manufacturers. The main aims of the federation are to promote precast concrete in the construction market and to disseminate information, through a range of industry representation and by shared knowledge, to add value to its member companies. J&P Building Systems will be showcasing several flagship concrete connection and concrete reinforcement products from their key brands H-BAU, JORDAHL and PFEIFER. Herman Maier, Managing Director at J&P, said: We will be using this as a platform to showcase several flagship concrete connection and concrete reinforcement products from our parent company brands, H-BAU, JORDAHL and PFEIFER.” He continued: “We are looking forward to mixing with key industry professionals who will get to witness our world-class products and view the very latest in our innovative range, suitable for the concrete industry.” Jeremy Wedge from J&P Building Systems will be speaking during the Technical Seminar spot at 10:00am. He will be discussing the release of New CDM Regulations, and how J&P offers advice on providing customers with compliant technical solutions combined with premium products to meet demands upon the whole team. You can register to attend the event here. Key Product Focus:H-BAU RAPIDOBAT® Cretcon HD – Disposable concrete column formwork which provides an unrivalled quality surface finish. PFEIFER VS ISI Rail – A very flexible method of connecting concrete units, used for precast and in-situ elements. Flared lifting loop – extremely versatile and economical lifting loop capable of transverse and shear lifting directions. PCC Column Shoe – New Column Shoe format. MOFI – New temporary Wall restraint system to restrain panels until tied into main Frame. JORDAHL Cast-in channels – range of cast-in channels for drill, noise, and vibration-free fixings to concrete. 100 years of JORDAHL® cast-in channel – the original cast-in channel. JDA – Stud-rail punching shear reinforcement. Used for the transmission of high shear forces in flat floor applications, with reduced requirements for formwork and reinforcement and for optimum use of space. J&P UK BALCON™ – Connecting steel balconies into concrete slabs the BALCON™ arrangements offer unrivalled multi-directional adjustment which are bespoke to each application. Follow the latest exhibition updates on Twitter @British_Precast Subscribe to our blog today for further product updates www.jp-uk-blog,com ENDS. About J&P Building Systems J&P is the UK supply partner for its three parent companies; H-BAU, JORDAHL and PFEIFER – internationally established business operations which can claim combined heritage going back over 500 years.For today’s modern construction requirements, J&P supplies a comprehensive range of products in the sphere of fixing, handling and connection of structural elements. Examples include curtain-wall connections to the building frame, high-load transportation anchors for structural precast members, or insulated connections for concrete/steel balconies, plus a host of other applications. J&P has been providing these products and services to the UK construction industry for 20 years. J&P Building Systems Ltd., Thame Forty, Jane Morbey Road, THAME, OXON OX9 3RR T +44 (0)1844 215200enquiries@jp-uk.comwww.jp-uk.com Subscribe to the J&P Blog PR & Media Enquiries to: Nicky Frost – SMPR 0870 199 4044nicky@simplymarcomms.co.uk Contact information J&P is the UK supply partner for its three parent companies; H-BAU, JORDAHL and PFEIFER – internationally established business operations which can claim combined heritage going back over 500 years. Source link
Robert Gerrard, secretary of the NEC Users’ Group, seeks to dispel confusion over cost reimbursable contracts and disallowed cost. It goes without saying that throughout the lifecycle of any professional project contract, issues of cost are invariably among the aspects scrutinised by all involved parties. At the completion of contractual obligations, that scrutiny often intensifies even more, especially when the prickly issues of final costings and reimbursement are being considered. The NEC suite of contracts is designed to stimulate efficient and fair project management by all parties. Following a significant number of questions put to the NEC Users’ Group helpline and during our training courses, we would like to address widespread misconceptions on what a ‘cost-based’ contract and therefore Disallowed Cost entails. Cost reimbursable, or ‘cost-based’, contracts, are a relatively new approach for many people; most are far more familiar with price-based closed book contracts. There are a few other standard forms of contract that offer cost reimbursable payment, but these seem to have been rarely used, particularly in the building industry. The foundations of efficient and effective project management lie in knowledge and competency on processes like programming and early warning. However, I believe it’s fair to say that the recent economic downturn, as well as natural bias towards protecting one’s own costs, has certainly contributed to the increased interest in Disallowed Cost and compensation events recently. Disallowed Cost is part of the NEC3 Engineering and Construction Contract (ECC), and can be found under Options C, D, E and F. It provides a filter for certain costs and specifically states those that project managers may disallow. As such, it should be an extremely minor aspect of managing a contract. The nuance of the cost-based contract is to use contractor’s real cost to determine payment rather than a pre-determined rate or price. This is a new area to many and some users are clearly uncertain, nervous or surprised by this. In some cases there is user desire to strike out certain contractor costs that have arisen due to inefficiencies. The last chance to remove such costs during a project sits in the Disallowed Cost pot, however you do not simply disallow costs because you think they should be disallowed; they are disallowed because the contract says so. If more contracts are to be cost-based then all users have to be more comfortable with the implications of this and what the contracts actually entail, not what users, from any discipline, think they should say. When using a target cost approach under ECC option C or D, the basic principle that underlies the contract is that a target cost is agreed, and the contractor is reimbursed for costs he spends undertaking the work throughout the course of the project. Payments to the contractor are based on his accounts and records, which the project manage may inspect at any time. Upon completion, the final target cost is compared to the final actual cost (called Defined Cost) expended by the contractor to which a fee is added. If the actual cost plus fee is lower than the target cost, a saving has been made, which is shared between the parties on a pre-agreed percentage basis, referred to as ‘gain share’. Conversely, if the actual cost plus fee is higher than the target cost, this overspend must be shared between the parties on a pre-agreed percentage split, commonly known as ‘pain share’. Disallowed Costs are those which the contractor has incurred, but for which the employer does not have to pay. These therefore fall entirely to the contractor to pay. This could include those which cannot be justified, those which should never have been paid to a subcontractor or supplier, or those incurred because the contractor did not follow certain stated procedures. Other examples include correcting defects after completion, or the cost of resources not used to provide the works, after allowing for reasonable availability and wastage. Some disallowed costs are relatively simple to define and put into practice, such as resources not used to provide the works, incurred for example when a piece of equipment that is no longer required, but not removed from site, is still being charged to the project. Another more straightforward application of Disallowed Cost is the cost of materials not used to provide the works, i.e. materials ordered in excess of the amount required to complete the project, after allowing for reasonable wastage. We are however aware that a number of our members have reported confusion on a particular issue of ‘correcting defects’. The cost of correcting defects before completion is an accepted cost in most circumstances; however, making correcting defects after completion is a recognised Disallowed Cost that the employer is not liable for. Understandably, employers will often object to paying their contractors to correct defects when the project is still live. In fact however, this provision often indirectly benefits the employer if using ECC option C or D. When the contractor is paid for correcting a defect, the contractor’s Defined Cost increases. As a result, any pre-agreed ‘gain shares’ payable to the supplier, are likely to be reduced. If the target cost is exceeded in these circumstances, the contractor may still be liable to pay money back to the employer. It is, of course, in the contractor’s interest to minimise defects, keeping the Defined Cost down and ensuring a smooth project handover, but a further advantage is that this can also result in a bigger gain share for contractors. The purpose of the NEC suite of contracts is to maximise clarity and fairness of contract terms, and we entirely appreciate the frustrations which take hold on both sides of a partnership when the issue of correcting defects arises. We receive calls for clarification over Disallowed Costs from across the full spectrum of built environment sector suppliers, contractors and clients. At a time when this industry is regaining its feet following the economic downturn, the desire to protect your company from undue cost is imperative. Significant benefits of a successful project
A recent dispute between Murphy and a muckaway subcontractor throws up a lesson in drafting dispute resolution clauses. Theresa Mohammed reports. Above: Theresa Mohammed is a partner in dispute resolution and litigation at law firm Trowers & Hamlins Parties to construction disputes often enter into settlement agreements that seek to resolve their problems so they can move forward. Depending on the drafting of the agreement this could be a variation to the original construction contract or an entirely separate agreement. This distinction may not seem important but it is vital if the parties wish to use statutory adjudication to resolve future disputes as that will rely on the existence of a construction contract. In 2013 J Murphy & Sons was engaged by Balfour Beatty Civil Engineering to carry out shaft and tunnel work on a project at Trafford Park, Manchester. Murphy appointed W Maher & Sons to remove spoil from site. Maher’s appointment dated February 2014 incorporated the NEC3 form of Construction Subcontract and option W2 provided that “Any dispute arising under or in connection with this subcontract is referred to and decided by the Adjudicator.” Oddly the contract also referred to the “TCC” meaning the Technology & Construction Court as the adjudicator nominating body (ANB) which is not helpful as the TCC does not function as an ANB. During the works Maher made 16 applications for payment and the balance claimed by Maher was approximately £300,000. In November 2015 the parties entered into settlement negotiations and the final account was agreed at £720,000 leaving a balance due to the subcontractor of £297,149. Murphy suggested that it would be preparing paperwork to close out the account but this was not received and no monies were paid. On 3rd March 2016 Murphy wrote to Maher advising that its gross valuation of its final account was £483,529, did not refer to the agreement of £720,000 and made no further payment. On 7th April 2016 Maher referred the payment dispute to adjudication in accordance with Option W2 and, after being prompted by the TCC, applied to the Royal Institution of Chartered Surveyors (RICS) for the nomination of an adjudicator. Murphy challenged the adjudicator’s jurisdiction on the grounds that Maher had no contractual basis for applying to RICS to nominate an adjudicator and the dispute arose under the settlement agreement and therefore could only be resolved via the court as that agreement did not constitute a construction contract. Maher started the adjudication afresh on 19th April 2016 following the Scheme for Construction Contracts as it believed that would be implied into the settlement agreement due to the error of the ANB. In response Murphy applied to the court for declaratory relief arguing that the adjudicator still did not have jurisdiction as the dispute did not arise under the construction contract. The court held that the key question was whether the settlement agreement was a variation to the contract or was a standalone agreement. It was held that the original reference to adjudication had been properly made as the relevant parts of the NEC3 Standard Form complied with the Construction At and the reference to disputes “arising under or in connection with” was wider than the Act required and this language would have covered disputes arising out of the settlement agreement. It was also said that the reference to the TCC was not helpful as that was not an ANB, but the Construction Act did not stipulate that this was required and errors such as these generated confusion and costs. So the message here is that if parties do not wish for adjudication to be available in relation to disputes under settlement agreements then it is imperative that the definition of disputes referable to adjudication under the original construction contract is checked and that such agreements are drafted to be standalone documents. If they are not, there is a good chance they will be interpreted as variations to the construction contracts and adjudication will be available to both parties. About the author: Theresa Mohammed is a partner in dispute resolution and litigation at law firm Trowers & Hamlins This article was published on 22 Jun 2016 (last updated on 22 Jun 2016). Source link
RWE Innogy’s Galloper offshore wind farm has been given the green light thanks to its new backers. The construction of the £1.5 billion wind farm off the coast of Suffolk will proceed in November with almost 800 jobs created after they found three new partners to back the scheme. Last year, the future of the Galloper wind farm was put in doubt after energy company SSE pulled out of the project because of the cost and the subsidy scheme, while the remaining partner, RWE Innogy, stopped the work. However, on Friday, RWE Innogy announced that Siemens Financial Services along with the investment and financial services group Macquarie Capital, in conjunction with the UK government’s Green Investment Bank, had become joint 25% equity partners. Offshore wind is one of the few UK renewable energy sectors that has come out unscathed from the latest cuts to onshore wind and solar power subsidies. Galloper is due to become operational in March 2018 and will be one of the biggest offshore wind farms in British waters, with a 336 megawatt capacity, which is enough to power 336,000 homes. The announcement comes after Dong Energy confirmed last week that it was to process with the wind farm extension in the Irish Sea that will make it the biggest in the world. The RenewableUK trade body said that the two projects together will mean that there is 10 gigawatts of offshore wind capacity built, under construction or with financing secured in Britain, double the current operational capacity of 5GW. RWE Innogy CEO, Hans Bunting, commented: “Today’s announcement is the culmination of many months of successful negotiations with our partners and investors and shows that the UK is still a strong market for offshore renewables.” Previously, the company had warned that political uncertainty and policy changes have put the technology at risk in the UK.
The former boss of the Dunne Group has secured the MD role at the new Keltbray Structures business. The new reinforced concrete frame business was launched by Keltbray after it acquired some of the assets from the dissolved Dunne Group. The Keltbray Structures business is hoped to “complement and expand” the existing portfolio of the group, according to Brendan Kerr, Keltbray Chief Executive. The new venture will see John Price, Keltbray Managing Director, become Chief Executive of Keltbray Structures, while Dunne Group boss Gordon Dunne will support Mr Price as the new MD of the company. Andy McClafferty, Keltbray Demolition & Civil Engineering deputy managing director, will become the new chief operating officer of the group. Kerr commented: “Prior to going into administration, Dunne Group was a leading company in its field and enjoyed a strong reputation as a reinforced concrete frame specialist contractor. “We believe that Keltbray will benefit from tapping into their capability and this acquisition of some of their assets.” Kerr believes that with the financial resources behind it, there is significant scope for increasing the service offering and business profitability through the development, which will give them an increased geographical outreach to other parts of the country, particularly Scotland. Last week, Keltbray completed the acquisition of some of Dunne’s assets from the administrators FRM Advisory after the latter went into administration in July. Included in the purchase was Dunne’s former yard and head office at Bathgate in Scotland, along with a plant used for the construction of reinforced concrete structures. Keltbray has not taken over Dunne Group as a going concern, or taken on any of its former contracts with clients, by acquiring some of the Dunne Group assets. Earlier in the month, Keltbray saved 400 jobs by purchasing the Dunne Group’s assets after the concrete frame contractor’s collapse.
The Association of Plumbing & Heating Contractors (APHC), in collaboration with City & Guilds, has announced that it will host a series of free technical workshops throughout England and Wales during October this year. The sessions will take place in the morning and offer plumbing and hearing installers the chance to shape their industry and offer their views on a number of key issues. Among these issues are ‘New Water Supplies, Water Efficiency Calculations and meeting the requirements of Part G of Building Regulations’ and ‘The New Plumbing Apprenticeship.’ An increasing number of developers are asking for information on ‘New Water Supplies, Water Efficiency Calculations and meeting the requirements of Part G of Building Regulations’. The Water Efficiency Calculator will no longer be used an standard modelling is now available, so attendance at this session will mean that installers can make sure that they are up to date to meet this demand. Meanwhile, in terms of the ‘New Plumbing Apprenticeship’, APHC held workshops in March this year which have plumbing and heating installers the opportunity to put forward their views on the new Apprenticeship Standard. This free session will now provide them with the opportunity to tell the APHC what they think about the technical content involved in the learning material, while also providing them with a unique chance to examine the assessment methodologies. This October, the technical workshops will be held across the following dates and locations: Dartford, October 13 Solihull, October 19 Wakefield, October 20 Taunton, October 25 Newport, October 26. Last week, the APHC launched a new Online Learning Centre to support its commitment to help heating and plumbing businesses become more successful and profitable. The new online facility will offer learning products which are tailored specifically to the needs of the plumbing and heating industry, and provide access to bite size courses that cover the key areas of business development.
North Lanarkshire Council has announced that it will build a further 1000 council houses as part of its biggest investment in council housing for a generation. It will add a further 1,000 houses to its current programme with a £159 million spend, bringing the total number of council houses to be built in the next decade to 1,800 and the total programmes to 2,150, 633 of which have already started construction. The convener of housing and social work services, Councillor Barry McCulloch, said that this is a huge investment for the people of North Lanarkshire. McCulloch continued: “As Scotland’s biggest council landlord we understand that modern, accessible housing is a key priority and I’m delighted we will be able to deliver 1,800 new houses by 2026. “We already had an extensive new-build programme in place, but we are determined to do what we can to meet considerable need. The quality of our new houses is unbelievable. They are energy-efficient, accessible and adaptable, which means the needs of people can really be taken into account.” He also said that it means the council can deliver a wide range of housing, including housing for young people, disabled people and old people. A committee report outlined the criteria for the sites of the 1,000 additional homes, which will partly be paid for with the assistance of Scottish Government grant funding. The recommendations were the result of months of work by a member/officer group chaired by Councillor Peter Sullivan. He said: “New council houses are badly needed but we had to work hard to identify the best and fairest way to deliver these in the current financial climate. Sullivan added that access to affordable, high quality housing is one of their top priorities and this programme, the biggest in a generation, will go some way to meeting housing demand.
A joint venture has been formed between real estate consultancies AECOM, Gleeds and Pick Everard to deliver a £350 million Built Environment Consultancy Services (BECS) framework for Scape Group, the local authority-owned built environment service provider. This will be the first time that Scape has appointed a joint venture, with the three partner companies working together over the next four years, supported by their respective local supply chains, to deliver new public sector projects. ‘Perfect Circle’ is the name which has been given to the consortium. Perfect Circle will deliver services under the BECS framework and will include strategic asset management, highways consultancy and engineering services, civil and structural engineering, architecture and design services, commercial surveying, building surveying, quantity surveying and project management. The consortium was chosen through an OJEU-compliant tender process which was based on cost evaluation as well as environmental, economic and social sustainability criteria. Scape says that around 150 SMEs will support the consortium as supply chain partners, with 27,000 discipline experts throughout the group, while Perfect Circle has also made a commitment to create “significant opportunities for micro business.” Chairman of Perfect Circle and Managing Partner at Pick Everard, Duncan Green, commented: “Perfect Circle brings together three industry-leading organisations into a full service consortium that has the influence, scalability and expertise to make a significant and positive contribution to the challenges currently affecting the public sector.” Everard added that the consolidation of consultancy services into one framework was a unique chance for their respective companies to come together and offer unrivalled added value and efficient solutions throughout the UK. Chairman of Gleeds Worldwide, Richard Steer, said: “The BECS Framework presents a significant business opportunity; our teams worked incredibly hard to produce a best-in-class bid and it is now our job to ensure that we are able to hit the ground running once the framework goes live.”
CH2M is embarking on the second phase of the Thames flood protection project, which will see the biggest every improvement programme to protect London and Kent from flooding. The scope has now been agreed for the second year of CH2M’s work on Thames Estuary Asset Management 2100 Programme (Team2100), which will include construction, detailed designs, appraisals and investigations throughout the Thames Estruary, featuring improvements to the major barriers. In total, 1.25 million people are protected by the Thames Estuary tidal flood risk management system, while £200 billion of property is also protected. The system is made up of major barriers, outfalls, pumping stations, flood gates, embankments and walls on the River Thames and its tributaries. Peter Nicol, CH2M’s global water business group president, said: “The innovative approach being implemented on Team2100 is generating significant benefits in efficient delivery, having generated more than 100 innovation ideas and implementing six of these innovations to date.” CH2M was selected by the Environment Agency as its delivery partner on Team2100 two years ago. Team2100 is listed as one of the government’s top 40 infrastructure schemes and will invest up to £300 million on tidal defences across the next 10 year period. Major investment is needed in order to make sure that the assets continue to provide protection against flooding into the next century, even though sea levels continue to rise. A new barrier and increased wall heights will be needed later in the century, however the focus of the first 10 years of investment will continue to be on essential improvements and maintenance. Meanwhile, an £18m project to reduce flooding on a stretch of railway near Oxford has been completed. The Oxford to Didcot Parkway line was shut for over two weeks while the flood prevention work was being carried out at Hinksey, which runs adjacent to the River Thames.
It is with great sadness that HUECK UK is announcing the passing of its Sales Director, Robert Bright. Robbie died in an accident in France, during a charity cycle ride that was raising funds for PAPYRUS Prevention of Young Suicide, in memory of his beloved son, George. He was part of the senior management and business development team for the UK arm of global supplier of aluminium building systems, HUECK, and an industry veteran with many years’ experience. His professional leadership and personal friendship will be dearly missed by all those who knew him. The entire team at HUECK both in the UK, as well as Germany, has paid tribute to Robbie Bright. His colleagues have released a message to clients, business partners, and the industry at large about Robbie’s career at HUECK. Leon Friend, HUECK UK Project Director, said: “Robbie has been pivotal in HUECK’s establishment in the UK. He has won, project-managed and successfully delivered some of HUECK’s most impressive projects in London and across the UK. “He had nearly three decades of experience, and his knowledge, passion and dedication have been truly inspiring for all of us at HUECK since he joined the team, in June 2013. Aside from a great personality, he was an exceptional business man and had a strong ability to identify and maximise opportunities.” Crispin Jedrzejewski, HUECK UK Technical Director, commented: “Robbie was much more than a colleague to me. His personality and friendliness quickly led me to consider him a good friend and confidant – his tragic loss will be acutely felt by all who knew him.” Ralf Schrader from parent company in Germany said: “To me, Robbie was both the honest English gentleman and a trustworthy and reliable businessman, as well as a friend. It was my honour and privilege to support him and his family in the charity ride, organised in memory of George. “To lose him under such tragic circumstances is unthinkable and very saddening. But although we will miss him very much, he will always be remembered by all who were fortunate enough to call him a friend.” Adrian Price, Area Sales Manager at HUECK UK also paid tribute to his colleague: “Robbie Bright, this gentleman, exceptional work colleague and most of all one of my closest friends, will be sorely missed by all who knew him. Robbie was one of the nicest people I knew, who truly wore his heart on his sleeve, and gave his all in everything he did. I will miss the support he gave me, and also the conversations we used to have, but most of all I will miss my friend.” Leon added: “He was a real team player and worked tirelessly to promote the company and its products in the UK construction market, while proactively sharing his knowledge and in-depth understanding of the sector with his fellow colleagues at HUECK. I owe him a great deal both professionally and personally, and he will be greatly missed by all.”
