Amec Foster Wheeler announces today its founding membership of the Capital Deliver Alliance (‘the Alliance’), launched by UK Power Networks. Alongside three other key supply chain companies the Alliance will operate together as one body to implement a major £1 billion infrastructure programme over the next 12 years. The four UK Power Networks partners are Amec Foster Wheeler, Clancy Docwra, McNicholas and Morrison Utilities Services. Working collaboratively with UK Power Networks, the four companies will refurbish and upgrade electricity substations, cables and power lines across London, the East and South East to achieve greater efficiency and innovative ways of working – to deliver excellence in service to UK Power Networks’ customers. Representatives from all the companies will be based in one London office to enable them to operate as one entity and progress an agreed work plan. Marc Boulter, Managing Director of Amec Foster Wheeler’s Transmission & Distribution business, said: ‘As part of the Alliance, we will use our global expertise and experience to help deliver safe, innovative resilient solutions to support the energy transition for London, the East, South-East and for our customer.’

Experts at Focus Consultants are playing a key role in a £2m development to build 19 new industrial units, which have scope to create or safeguard almost 300 jobs in coming years. The company is providing a number of services for the North Kesteven District Council Blackwood Court development on North Hykeham’s Teal Park in Lincolnshire, including support project management, employer’s agent, principal designer/CDM advisor and BREEAM assessor. Lindum Construction is building the scheme for North Kesteven District Council, which is part of the council’s commitment to attracting and supporting start-up businesses. The units will range in size from 500 sq ft to 2,000 sq ft and will be used for a wide range of uses from storage and distribution to general industrial premises. Trevor Newton, partner at the Boston office of Focus, said: “Focus Consultants is very pleased to have been appointed by North Kesteven District Council to be a member of the team building Teal Park, which should prove very important to the economic development of the area. “As a company, we provide a number of different services that are relevant for such developments, and professionals from both our Lincolnshire offices and our Leicester office are involved with this scheme.” The units are due to be completed by mid-February, with lettings likely to start around the New Year. Focus, which is based at Phoenix Business Park, Nottingham, and has offices at Boston and Aubourn in Lincolnshire, and in Leicester and at Holborn in London, offers services to the property and construction industry, including building surveying, contract administration, party wall surveying, clerk of works, quantity surveying, project management, CDM services and BREEAM assessments and energy calculations and modelling. The company also specialises in funding and economic development including area regeneration strategies, funding applications, economic impact appraisals, business plans, and research and evaluation.  Since 1994 Focus has secured for clients more than £953 million of grants for projects and businesses across the UK and delivered more than £1.3 billion worth of projects and programmes – making it one of the most successful businesses of its kind in the country. Teal Park is a strategic allocated employment site, granted outline planning permission in 2011 for a total of 133,720m2 of employment floor space, a hotel, public house, leisure and trade showrooms. It is home to Siemens’ industrial gas turbine service business which occupies around a third of the space. Under the GrowLN6 project, the wider LN6 area is a focus for coordinated partnership work by NKDC, City of Lincoln Council and the County Council to attract new inward business investment and expansion. The photo shows partners lined up to mark the official start on site. For more information visit www.focus-consultants.co.uk

Civil engineering and groundworks specialist, O’Brien Contractors, is pleased to announce it has been awarded its second Property and Regeneration award in three years at the 2015 Birmingham Post Business Awards. The award marks a major transition which has seen the company adopt a more strategic approach with a number of Midlands-based leading organisations, including: Morgan Sindall, John Sisk & Son, Aston University, Kier Group, Galliford Try, Birmingham City University and Lovell Partnerships, with the aim of providing value for money by delivering the most appropriate economical solution for the particular set of circumstances for each specific project. This approach has enabled O’Brien to deliver the highest standards across projects in Birmingham, including: St. Modwen’s Longbridge Town Centre Phase 2 scheme, Alumno Developments’ Number One City Locks, Aston Student Village scheme and The New Assay Office. Mick O’Brien, Director, O’Brien Contractors, said: “Our aim for all projects is delivery, on time and with zero defects, zero accidents and zero unexpected costs. The fact that 85% of our customer base is now from repeat business shows that our approach works and does deliver the best value for money.” The achievements that have resulted in O’Brien winning the award for a second time include: Turnover increased by 59.98%, from £17.5m to £28.03m. Delivered 9 multi-million pound contracts which accounted for our 2014 turnover. Recruited 5 apprentices from the Birmingham area. Health and Safety: Maintained our accident rates well below industry average. Awarded consecutive ROSPA gold accolade. Invested £2.4m in plant and equipment. “We have a strong work ethic and we really do value our employees. We take on board local apprentices, support local people and give to local charities. We’re very much at the heart of the community here.”

The energy secretary’s much-hyped speech was a spectacular display of governmental cognitive dissonance – saying one thing while acting in an entirely contradictory manner. Amber Rudd offered warm words about “a new energy infrastructure, fit for the 21st century”, yet her department ploughs ahead with firing up outdated high-carbon gas power stations set to burn climate changing fossil fuels for decades to come. Shutting coal power stations is a good move – and campaigners should be applauded for their long-running focus on this important goal – but doing so while promising a wave of new gas power stations simply doesn’t go close to ensuring we meet the energy challenges we face. Rudd spoke of competitiveness being at the heart of our energy system, yet her government has committed to subsidising outrageously expensive nuclear power stations while slashing support for solar and wind, which are popular, cheaper and faster to deploy. In these crucial weeks ahead of the Paris climate talks the government is compounding the failure of its shortsighted energy strategy. Never has a greater chance for rethinking the way we power our communities been presented to us – yet Rudd and her colleagues look set to squander this unique opportunity by hiding behind hot air and spin while failing to take the urgent action needed to tackle climate change.

They are young, affluent and shop at online supermarket Ocado. Energy consumers are flocking to independent utility companies such as Ovo Energy and First Utility in the past few years as they become increasingly dissatisfied with the “big six” energy groups that dominate the sector. But analysis by the Financial Times suggests that while revenues among the new entrants are rising fast, profits are not. Revenues among the eight biggest independent suppliers have risen almost tenfold in the past five years. But over the same period, profits have slumped from a total of £4m to losses of more than £14m. The decline in profits has been exacerbated in the past 18 months by the slump in the oil price, which has driven down the costs of electricity consumption. Analysts say one reason for the disconnect between profits and revenues may be that customers of the independent providers are more price-sensitive and less loyal than those buying energy from the established players. If prices begin to rise, they are more likely to switch provider. “People who switch supplier are more affluent, but more likely to switch again. They are valuable but they are savvy,” says Edmund Reid, an analyst at the research group Lazarus Partnership. The independent sector has grown in market share from under 1 per cent in 2010 to over 13 per cent today. Amber Rudd, the energy secretary, on Wednesday welcomed that growth. She said: “The big six are losing market share every quarter. Innovative new suppliers, which range from start-ups to local authorities, are demonstrating how competition is working for people.” But she added that competition was not yet doing enough to drive down prices. This year, the UK’s competition authority concluded that “millions of consumers are paying more for their energy than they need to” and outlined a series of measures to encourage customers to switch between suppliers. Falling profits have not stopped the independents from spending significant amounts on marketing to attract new customers. Ovo Energy, the second-biggest independent energy supplier in the UK, with 500,000 customers, generated revenues of £317m in 2014. But spiralling costs saw losses before tax at the company rise from £658,000 between May 2009 and July 2010 to £37m last year. “It could be that some companies are mainly focused on getting customers in with cheap energy deals and then selling them higher-margin services,” says Mr Reid. Stephen Fitzpatrick, Ovo’s chief executive, last month blamed marketing spend, fees, software licensing and higher staff costs for the losses, adding that he could not say when the independent utility would become profitable. Ecotricity has gone through a similar trend. It made £3.8m of pre-tax profit on £36.9m of sales in 2010, but last year made only £911,010 despite revenues having grown to £70.4m. Ian McCaig, chief executive of First Utility, the biggest and one of the most profitable of the independent companies, likens the situation to what happened in the airline industry several years ago. “When the market began to be deregulated, low-cost airlines began popping up all over Europe. But only those that were best able to operate and hedge their costs managed to survive,” Mr McCaig says. He adds: “If we [in our sector] continue to see an environment where there is a lot of pressure I could easily see a scenario that is not dissimilar over the next three to five years.” The figures are not necessarily an immediate problem for these companies, as constant customer acquisition and in some cases injections of cash from private equity backers are helping fund operations. Many independents fund their working capital by taking sizeable sums up front from new customers and paying them back much more slowly if they end up using less electricity than predicted. Ovo last year, for example, was owed £32m by customers and suppliers, but owed £82m to customers. Mark Freshney, an energy investment banker at Credit Suisse, says: “Energy supply can be managed in a working capital positive way, so that the customer pays ahead of when they consume. This is the most important source of companies’ capital.” This means companies can continue to fund expansion before starting to raise prices in an attempt to make a profit from existing customers. But it does leave the independent sector vulnerable to unexpected problems, such as IT failures, which can quickly erode working capital. That is exactly what happened in 2011 to Independent Energy, which was the biggest small supplier at the time but collapsed after its billing system failed. “The biggest risk facing energy suppliers is glitches with billing and other IT systems,” Mr Freshney says. Another risk is that new entrants fail to buy up oil and gas in advance, chancing their luck for cheaper prices on a month-by-month basis, and are then caught out by a sudden commodity price rise. One executive of a large independent company says: “We think some of the newer entrants are charging so little, they cannot be buying electricity in advance. This could trip them up in future.”

The British property industry has welcomed a government review of one of the country’s biggest bugbears in the planning system. According to the Property Federation (BPF) the relook at the Community Infrastructure Levy (CIL), a development tax which is used to fund local infrastructure, is long overdue. The organisation, which is supportive of CIL in principle, has long advocated a review of the tax and says that it has become overly burdensome and inefficient. The BPF says that the review must not be the end of the story. In some cases, the evidence base used for the initial CIL setting is now fully out of date, and not fit for purpose. It is crucial that local authorities are encouraged to regularly review their own charging schedules against market signals and to test them against ‘real life’ projects that reflect market conditions. It pointed out that CIL simply does not work for complex or large scale strategic sites, and a more site specific and targeted approach to infrastructure funding and other contributions must be taken. It also wants to see clarity between CIL and s106. A fundamental premise of CIL was that it would be used to fund a set of identified infrastructure requirements, whilst s106 obligations should relate only to site specific mitigations and affordable housing provision. However, in reality, this has not happened, and there is considerable overlap between the two. This fundamental issue must be addressed and clarity provided in order for CIL charge setting to be at the right level and to make the process work properly. It is also calling for the integration of CIL with local plans. There is a disconnect between the preparation of local plans and the formulation of CIL charging schedules, which local authorities should prepare in tandem, in conformity with the National Planning Policy Framework. It is critical that emphasis is placed on delivery of infrastructure, rather than just revenue collection, it adds. ‘Many of our members cite CIL as one of the biggest bugbears of the planning system, and there are plenty local authorities who would agree. Whilst some would like to see it abolished altogether, we believe that with the right changes, CIL could be a useful tool for ensuring infrastructure delivery on development sites,’ said Melanie Leech, chief executive of the British Property Federation. ‘The creation of this group is a step in the right direction, but it must not stop here. It is crucial that Government take any recommendations on board, and works with both public and private sectors to ensure that the regime really works in the future,’ she explained. ‘CIL was supposed to provide a quicker, fairer and more efficient way of delivering infrastructure to support development and our members have always supported this principle, but we are concerned that in many places it is not working. We look forward to engaging with the review panel to ensure that CIL becomes less of a burden and more beneficial,’ she added.

An engineering firm that is helping to deliver some of the UK’s biggest infrastructure projects is on track to grow following a management buyout supported by Clydesdale Bank. Pipe and Piling Supplies (PPS), which is based in Glenrothes, Fife, is being acquired by existing managing director, Alistair Cochrane, for an undisclosed sum. Clydesdale Bank provided a significant funding package to assist with the transaction along with facilities to deliver growth. The deal was carried out by Andrew Carson, Senior Director in Clydesdale Bank’s Specialist and Acquisition Finance team. PPS manufactures steel foundation piles and overhead structures for infrastructure customers including Network Rail and Balfour Beatty. Since joining the business in 2008, Alistair has focused on expanding the business and increasing profitability. Turnover has risen from £1.59m seven years ago to an estimated £20m in the current financial year. The funding provided by Clydesdale Bank will enable PPS, which supports about 70 jobs across the UK, including up to 30 at a fabrication plant in Bridlington, North Yorkshire, to pursue significant growth plans including increased work within the UK and rail infrastructure sectors. PPS is involved in some of the UK’s biggest infrastructure projects including the improvement of the Great Western Electrification Programme. The route is being upgraded and electrified to create faster, more reliable services and increased freight capacity as part of the biggest investment in the line since it was built more than 150 years ago. PPS has secured a £20 million framework agreement with the project which it is seeking to extend. The company is also under contract to the Northern Hub project which will improve travel on key routes across the north of England. Other recent projects include London’s new Canary Wharf Crossrail Station. The station, which is due to open in 2018, has already won international acclaim for its innovative engineering and design. Built in 10m deep dock water, the site required a specially constructed cofferdam for which PPS supplied the anchor piles. Following PPS’s rapid growth the business recently recruited three graduates. It plans to create further high quality entry-level apprentice jobs as part of its expansion plans. Alistair Cochrane, managing director at PPS, said: “We are thrilled to have secured the support of Clydesdale Bank, which has a first class track record in growing SMEs. “Investment in Britain’s railway network and other infrastructure projects has provided PPS with a great opportunity to grow. Our new management team is working hand in hand with Clydesdale Bank to take advantage of the exciting opportunities in the marketplace and deliver further expansion. We also have ambitious plans to strengthen the business including a new health and safety initiative which we will showcase next year.” Andrew Carson, Senior Director in Clydesdale Bank’s Specialist and Acquisition Finance team, said: “We are proud to support PPS, a strong, well-managed business which has gone from strength to strength since Alistair joined the business seven years ago. “We believe that PPS has further growth potential and have provided a mix of facilities that will not only support the new management structure but will also enable Alistair and his team to continue building the business and achieve their growth aspirations.”

A Wolverhampton businessman claimed a notable coup last week when he became the first demolition expert to be named as the Institute of Construction Management (ICM)’s Construction Manager of the Year. John Woodward, founder of C&D Consultancy, beat off the challenge of over 50 professionals to claim the prestigious honour, impressing judges with his pioneering work in Glasgow and on the bank of the Thames river in London. He was also praised for his outstanding role in educating young people about the sector and how they can carve a rewarding career in demolition. “This came as a bit of a shock to me if I’m being honest, but I’m delighted that my industry, which often gets overlooked, has been recognised for the work we do in clearing the way for the future,” explained John. “It has been a massive year for the business and one that has seen a number of the projects we’ve been consulting on hit the national headlines.” He continued: “I’m keen to use this ICM Award to do even more Primary Future talks to promote and push our sector, showing the future generation of workers that demolition offers great career opportunities both at home and abroad.” John formed C&D Consultancy in 2003 and has seen it become one of the leading demolition specialists in the country, coordinating a host of projects across the UK and Europe every year. A team of 8 experts advises on initial planning, project management and one-off consultancy, as well as being brought in to turn around crisis jobs. “We’ve been involved in some really complex projects over the last eighteen months, most noticeably Albert Embankment demolition for Berkeley Housing Group and helping to bring down 15 of Glasgow’s most iconic tower blocks,” added John. He concluded: “This – combined with securing The Institute for Construction Management’s main prize – takes our reputation to the next level and will hopefully see us pass £1m turnover by the end of the year.” For further information on C&D, please visit http://demolishdismantle.blogspot.co.uk or follow @castlecroftrngr on twitter.  

Transport for London’s analysis of the transport implications of a third runway at Heathrow raise the prospect of the capital grinding to a halt. Road and rail congestion would soon reach unprecedented levels if the government approves construction of a third runway at Heathrow, as recommended by the Airports Commission. Transport for London (TfL) says that the Airports Commission has failed to assess the impact of full utilisation of the three runways at Heathrow, or of additional freight and growth in business activity around the airport. The London Assembly Transport Committee met yesterday (10th November 2015) and heard that it would cost between £15bn and £20bn to improve the transport infrastructure needed to get all passengers to and from Heathrow Airport, if a third runway is built there. Transport for London director of strategy and policy Richard De Cani told the meeting: “The simple word would be congestion – congestion on the road network, congestion on the rail network of a scale that we haven’t seen. The level of crowding you would have on those rail corridors into central London would be some of the worst that we currently see in London and that’s based on 2030 demand, the year of opening. So it’s a level of crowding and congestion that we believe would start to impact quite significantly on the whole performance of the transport network across west and southwest London.” Committee chair Valerie Shawcross said: “Today we heard that there are clear discrepancies between the Airports Commission’s assessment of transport demand with TfL’s own analysis. For example, the Airports Commission has only planned for passenger demand up to 2030, and does not take into account transport needs with the airport at full capacity after expansion. “Before the government makes its decision on airport expansion, there are big questions to be answered around what transport infrastructure is needed and who will pay for it. We can’t allow a bigger Heathrow to clog up London’s roads and public transport network.”

Regulatory protections will be needed to protect customers from potential abuse from “substantial market power” in the transition to water market competition, Ofwat has said. As part of a review of non-household retail price controls, the regulator said it wants to make sure new market arrangements don’t disadvantage certain customers. It said while price controls mustn’t “create undue barriers to entry or expansion”, basic protections must be put in place to “promote trust and confidence” in the delivery of water and wastewater services. Ofwat said default tariffs, a form of back-stop protection for customers in the non-household water and wastewater retail market, “remain appropriate”. However, problems have been highlighted in the energy market, which became competitive 15 years ago, such as the average cost serve to non-household customers being higher than the allowances made in setting the default tariff caps. In the water sector non-household retail costs rose in 2014-15, the regulator said, and the non-household retail price controls set in December 2014 “did not include a sufficient allocation of costs or margins”. The regulator wants companies to engage with customers to develop their default tariff caps proposals. It is also consulting on how to improve transparency in the mapping of tariffs to the default tariff caps. The consultation will close 11 December.