The contractor posted a £28m pre-tax loss for non-underlying items for the first half of the year, £25m of which was a charge relating to revised legal guidelines and settlements. This was largely down to changes that came into force in February, which could see large companies (with turnover over £50m) face fines of more than £10m. Leo Quinn told Construction News the company had taken a “prudent reserve” in the event of Balfour Beatty being fined in the future under the new sentencing guidelines, as the changes also apply to cases yet to go to court but that involve incidents that pre-date the revised rules. He said the penalties had increased “almost tenfold”, which he later described as “pretty large and drastic”. Balfour Beatty was hit with a major fine of £2.6m in May over the over the death of a worker on an offshore windfarm in Lancashire. In January it also incurred a £1m fine, following the death of a road worker in 2012. Mr Quinn said: “It’s most unusual to see that level of fine increase and it’s worrying for the industry because the definition of a large contractor is £50m turnover, this could bankrupt many small construction companies.” Balfour results Mr Quinn’s comments came as the company’s UK business posted a £66m loss in its construction services division for the half year to 1 July. In the UK, underlying revenue fell in the first half by 23 per cent to £862m (2015: £1.12bn), predominantly due to a decline in the regional construction business. On this, Mr Quinn said the company had reduced the number of live contracts in the regional business from 400 to 250, which gave the group “a sensible scope and span of control for the business”. He added the company had previously taken on a large amount of contracts due to “forced growth” from acquisitions and winning new work on bad terms and with “inappropriate risk”. The loss in the UK construction business over the period was also attributed to additional losses incurred on historical contracts. In an analyst presentation, Mr Quinn said the group had challenges around the “black art” of getting projects signed off, which he said was “not always as easy as you think it’s going to be”. One Nine Elms He said the company was looking “much more” at two-stage bidding and used projects such as One Nine Elms as an example of this working effectively. Mr Quinn said in the analyst presentation that he “knew the job and what [the company was] getting into”. Speaking to Construction News he added that Balfour Beatty Engineering was onsite conducting piling works at One Nine Elms and was being paid to put together an estimate for the building over the next six months. He said Balfour Beatty’s Olympic Park delivery team would be moving over to work on the project. Balfour Beatty replaced Interserve on the job, after client Wanda One retendered in March. Mr Quinn remained confident the UK construction business would still be able to hit 2-3 per cent margins, when asked by analysts. He said margins continued to improve from a poor 2014 baseline, adding that revenue would remain flat. “I’m not going to allow growth to save us,” he said. “Revenue will remain flat… if we do grow then that will be a bonus.” Leo Quinn on: Offsite manufacturing: Mr Quinn said he was “totally behind [offsite manufacturing]” but added that the construction sector “hasn’t managed to get it right yet in terms of logistics and distribution”. Infrastructure: “What a fantastic time to be investing in infrastructure, when money is effectively free,” he said. Nuclear: “Balfour Beatty wants uncertainty around new nuclear cleared up because we hold capability and expertise to deliver on these types of contracts – almost in some cases unique to Balfour Beatty.”   Source link

RIBA Future Trends Survey results for April 2016 Increased revenue from projects outside the UK compared with 2013 North of England leads the way in future workload predictions In April 2016 the RIBA Future Trends Workload Index fell marginally to +29 (down from +31 in March). Despite this, workloads in April 2016 were 8% higher than those in April 2015. All Nations and Regions returned positive forecasts, with the North of England remaining strong (balance figure +43). Large practices (51+ staff) stood as the most positive (balance figure +71), followed by small practices (1–10 staff, balance figure +28) and medium-sized practices (11-50 staff, balance figure +24). The RIBA Business Benchmarking survey showed 22 per cent of revenue for RIBA chartered practices is generated from projects outside the UK, compared with 16 per cent in 2013. For large practices, the proportion stands at 32 per cent in 2016. The private housing sector workload forecast saw the biggest increase in April (rising from to +33 from +28 in March). The commercial sector forecast decreased to +11 (down from +18 in March). Meanwhile, the public sector and community sector forecasts changed little. The RIBA Future Trends Staffing Index was unchanged, standing at +10. Responding practices reported that permanent staffing levels were 6% higher than twelve months ago. Large practices were the most optimistic about recruiting new staff, with a balance figure of +71. Medium-sized practices and small practices were less optimistic, though positive overall (with balance figures of +6 and +24 respectively). RIBA Executive Director Members Adrian Dobson said: “The private housing sector clearly remains the key driver of growth. Buoyant housing activity is no longer confined to London and the South East but is widespread throughout the country. “Workload growth has been strong throughout the last year, and this is the twelfth consecutive quarter in which we have seen rising workloads, as the value of work in progress begins to climb back towards pre-recession levels. “The past year has also seen strong employment growth. However, there is some way to go before employment levels will attain their pre-recession peaks.” ENDS Notes to editors: 1. For further press information contact Callum Reilly in the RIBA press office: callum.reilly@riba.org 020 7307 3757 2. The Royal Institute of British Architects (RIBA) champions better buildings, communities and the environment through architecture and our members. architecture.com Follow @RIBA on Twitter for regular updates www.twitter.com/RIBA 3. Completed by a mix of small, medium and large firms based on a geographically representative sample, the RIBA Future Trends Survey was launched in January 2009 to monitor business and employment trends affecting the architects’ profession. 4. The Future Trends Survey is carried out by the RIBA in partnership with the Fees Bureau. Results of the survey, including a full graphical analysis, are published each month at: http://www.architecture.com/RIBA/Professionalsupport/FutureTrendsSurvey.aspx 5. To participate in the RIBA Future Trends Survey, please contact the RIBA Practice Department on 020 7307 3749 or email practice@riba.org. The survey takes approximately five minutes to complete each month, and all returns are independently processed in strict confidence 6. The definition for the workload balance figure is the difference between those expecting more work and those expecting less. A negative figure means more respondents expect less work than those expecting more work. This figure is used to represent the RIBA Future Trends Workload Index, which for April 2016 was +29 7. The definition for the staffing balance figure is the difference between those expecting to employ more permanent staff in the next three months and those expecting to employ fewer. A negative figure means more respondents expect to employ fewer permanent staff. This figure is used to represent the RIBA Future Trends Staffing Index, which for April 2016 was +10   Posted on Friday 3rd June 2016 Source link

RIBA Council has endorsed the findings of the International Task Group and agreed the development of a detailed plan for RIBA’s role in engaging with international communities facing natural disaster, civil conflict and human rights violations. The International Task Group, chaired by RIBA Vice-President Peter Oborn and endorsed by RIBA’s Council, Board and International Committee, was also tasked with considering the implications of the RIBA Council resolution concerning the Israeli Association of United Architects, and coordinating RIBA’s engagement and dialogue with all sides on this complex issue. The International Task Group report endorsed today (4 December) included the following key findings: Natural disaster – the RIBA should develop a programme of engagement with the humanitarian sector including acting as a conduit between key organisations and RIBA members, providing a forum and advocacy to support stakeholders in the field, helping to identify opportunities for members and encouraging the development of skills / building capacity in this area Civil conflict – the RIBA should develop ‘rules of engagement’ for the RIBA and its members, including defining the role of the architect in the area of contested space and promoting dialogue amongst stakeholders Human rights and ethical standards – the RIBA should engage by joining the UN Global Compact and the International Ethics Coalition Resolution concerning the Israeli Association of United Architects – the motion calling on the International Union of Architects to suspend the Israeli Association from the UIA was not in furtherance of the charitable objects of the RIBA and should not have been placed before RIBA Council Governance – the RIBA should strengthen governance procedures including the introduction of processes for Council motions to improve scrutiny RIBA President Stephen Hodder said: “I am pleased that today, guided by the work of our expert International Task Group, RIBA Council has agreed the development of a constructive plan for the RIBA to support the built environment needs of international communities.  I welcome our newly-agreed clarity on how the Institute should manage its involvement in humanitarian and diplomatic matters in future, and I am personally keen to see architects engaging positively with these issues. “RIBA Council has an important role to play in engaging with difficult and controversial issues. However it is a widely held view that the resolution passed in March concerning the Israeli Association of United Architects did not make a constructive contribution to the current situation. While there should be no doubt concerning the seriousness of the issues facing communities in Israel and the West Bank, the Task Group has established that the resolution was not in furtherance of the charitable objects of the RIBA and should not have been placed before Council. For the Institute to have engaged in this issue in a confrontational way – by seeking suspension of the Israeli Association of United Architects from the UIA – was wrong. These recommendations supersede the previous Council resolution of 19 March 2014 and as a result that policy is now rescinded. “We are strengthening  our governance procedures and will put in place measures to ensure that RIBA Council is able to have informed debates with due consideration of the issues involved and within the parameters of our Charter and Charity Commission guidance. “I would like to congratulate the International Task Group for their rigour, expertise and diligence and look forward to seeing detailed plans in due course.” The RIBA International Task Group report can be downloaded from: http://www.architecture.com/RIBA/Working%20internationally/Assets/Files/Internationaltaskgroupreport.pdf   Notes to editors   For further information contact RIBA Press Office pressoffice@riba.org 020 7580 5533   The International Task Group consisted of: Peter Oborn, RIBA Vice President International (Chair) Sir Brendan Gormley MBE, External member, ex CEO DEC Angela Brady, RIBA Council and PPRIBA, (left 09/09/14) Sumita Sinha, RIBA Council Chris Williamson, RIBA Council Richard Brindley, RIBA Executive Director   Posted on Thursday 4th December 2014 Source link

Five regions in New Zealand saw median sales prices hit a new record high but overall the median price nationals fell by 1% in June, the latest real estate index shows. The median sales price now stands at $500,000 with the Waikato/Bay of Plenty region recorded its fifth record median sale price for 2016, reaching $438,000, while the median price in Auckland reaching $821,000. The data from the Real Estate Institute of New Zealand (REINZ) also shows that Northland recorded a new record median of $360,000, while Otago reached $295,000 and Central Otago Lakes hit $730,050. The index figures reveal that sales fell 13% month on month which is in line with the general trend at this time of the year although an increase of 6% was recorded in June 2015. ‘Although the onset of winter means that June is generally a quieter month for the real estate market, there has been no let-up in the rate of price increases across the country, with five regions recording new record median prices,’ said REINZ spokesperson Bryan Thomson. ‘Although there is much discussion about the housing market and increasing new build supply, the fact remains that the vast majority of the supply comes from the sale of existing properties,’ he added. The data also reveals a rapid declines in the volume of properties available for sale right across the country, with a number of regions, such as Wellington and Hawke’s Bay, recording very low levels of properties for sale. Thomson pointed out that while Auckland continues to be the largest single region, its influence on the national picture is waning due to its own weaker sales and strong growth in sales in other regions, particularly Waikato/Bay of Plenty and Northland. Auckland’s peak share of national sales was 39.7% in January 2014, however, its share is now just over 33.8%. Over the same period Waikato/Bay of Plenty’s share of national sales has increased from 14.3% to 19.0%. A breakdown of the figures shows that Central Otago Lakes recorded the largest percentage increase in median price compared to June 2015, at 42%, followed by Waikato/Bay of Plenty at 26% and Otago at 19%. The number of properties available for sale across all regions in New Zealand has continued to fall between June 2015 and June 2016. Wellington has the fewest properties for sale with just over seven weeks of supply, closely followed by Hawke’s Bay with nine weeks supply and Auckland with just under 10 weeks of supply. The number of days to sell has only improved by three days at the national level over the past 12 months, although the regions have seen some significant improvements with nine regions seeing a decrease of 20% or more in the number of days to sell. Auckland was the only region to see a lengthening of the number of days to sell over the past 12 months. Between June 2015 and June 2016, the number of homes sold for more than $1 million increased by one third. The proportion of sales of homes under $600,000 has declined from 66.4% to 60.6%, a drop of 5.8%. The proportion of sales of homes under $400,000 declined by 6.1% year on year. Source link

The group saw revenue rise to £176.1m for the year to 31 December 2015, up from £147.2m in its previous results, while group profit before tax rose to £32.4m, up from £28.3m over the same period. Land development was the firm’s strongest performing division, posting a pre-tax profit of £19m on a revenue of £47m. In its previous results, the division had posted a pre-tax profit of £13m and a revenue of £39m. During the year the company sold sites at Biddenham, Chellaston, Cranbrook, Edinburgh, Frome, Haddington, Nuneaton, Pontefract and Repton. A total of 1,763 plots were sold, representing a 59 per cent increase on the 1,107 sales recorded in 2014. The company has sold 180 plots in Alton during 2016 to date and 2.8 ha of employment land have been unconditionally exchanged in Lutterworth. The group’s property investment arm saw a pre-tax profit of £3.5m, down from £4.6m a year earlier, which it blamed on “revaluation losses” on a number of retail sites. “The retail sector was more subdued with little demand for new retail space, particularly from the large foodstore operators, giving rise to property revaluation losses on a number of sites,” the company said. “We found that it took longer than expected to contract with retailers on two retail warehouse developments in Belper, Derbyshire, and Livingston, Scotland, even after agreement of terms.” Major schemes in the property investment arm included a £300m development of an exhibition arena and conference centre complex, which is pre-let to Aberdeen City Council. The scheme received detailed planning approval at the end of 2015 and is on target to proceed with a construction partner in mid-2016. Henry Boot’s construction business posted a revenue of £79.5m for 2015, down slightly from the £82.4m reported a year earlier. Consequently, pre-tax profit slipped to £9.9m, down from £10.1m in its previous results. The firm said it “still remains cautious regarding labour and supply chain price pressures”, but added that it was carrying a “strong order book” into 2016. Chairman Jamie Boot, who stepped down from his role as chief executive last year, said: “I have taken over as chairman with the business in excellent shape and with our people energised to deliver significant growth in activity. I look forward to reporting on progress through 2016 and beyond.” Recent contract wins for the firm include the £36m revamp of Barnsley town centre.         Source link

The Royal Institute of British Architects is pleased to announce that Esther Everett and Eleanor Fawcett, who head the Design and Physical Regeneration team at the London Legacy Development Corporation, have been appointed Creative Directors of the 2015 RIBA conference, Guerrilla Tactics. As Creative Directors, Esther and Eleanor will develop the 2015 theme and deliver a curated programme for the two-day event. They will work closely with RIBA small practitioners Chris Bryant of Alma-nac, Rachael Davidson of HUT Architecture, Jake Edgley of Edgley Design, Barbara Kaucky of Erect Architecture, Cassion Castle of Cassion Castle Architects, Marco Ortiz of Emergent Design Studios, and Amy Frearson, Deputy Editor at Dezeen. Chris Bryant, Chair of the RIBA Small Practice Group, said: “We are delighted to have Esther and Eleanor on board. They bring significant experience from the client’s perspective and have a track record for supporting innovation and creativity.” Esther Everett, Head of Physical Regeneration and Design at the London Legacy Development Corporation (LLDC), said: “I am honoured to be appointed joint Creative Director of Guerrilla Tactics 2015. We will explore the client’s perspective, from getting a commission through to gaining recognition and with all the hurdles in between. The day will be a forum for exchange, offering strategies from behind the scenes that will help build successful small practices.” The Guerrilla Tactics conference has grown rapidly since it was established in 2004 and is now one of the largest events for RIBA members. The informative two-day programme, designed to develop business and management skills, has become a must-attend event in the annual calendar of small practitioners. The Guerrilla Tactics conference programme will be launched in September 2015. – ends – Notes 1. For further press information contact Gagandeep Bedi, RIBA Press Office 020 7307 3814 gagandeep.bedi@riba.org 2. The Royal Institute of British Architects (RIBA) champions better buildings, communities and the environment through architecture and our members www.architecture.com 3. Follow us on Twitter for regular RIBA updates www.twitter.com/RIBA Posted on Friday 15th May 2015 Source link