NOVEMBER/DECEMBER 2014
CONSTRUCTION THE OFFICIAL MAGAZINE OF THE CONSTRUCTION INDUSTRY FEDERATION
■ ■ ■ ■ ■
Procurement conference Lean construction MBCA annual dinner CIF AGM CIRI update
“WE NEED TO IMPROVE STANDARDS”
Interview with new CIF President Michael Stone
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EDITORIAL OPINION Foundation Media Ltd, Foundation Media 1 Northumberland Place, Dun Laoghaire Co Dublin P: +353 1 230 1612 Editor: Brian Foley Email: brian@foundationmedia.ie Commercial Manager: Joe Connolly Email: joe@foundationmedia.ie Editorial Design: Alex Lifeson Printing: W.G. Baird Publisher Foundation Media Ltd
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s a busy 2014 draws to a close, the construction sector can look forward to the New Year with something approaching optimism. The news over the past few months has been positive on a number of fronts. Employment in the sector is increasing, while the social housing plans announced by the Government in late November will provide a vital boost to house builders. Back in May when Construction 2020 was published some feared it would pay lip service to the construction sector before being consigned to the ‘shelf ’. The cynics were wrong though and instead we have a document consistently referenced by Government and construction professionals as a blueprint for the industry’s future. We have a new ‘Minister for Construction’ in Paudie Coffey. The Construction Contracts Act ‘failed to launch’ in 2014 but it does appear tantalisingly close, with spring now touted as the new implementation date. Michael Stone is the new CIF President and although not taking over officially from Philip Crampton until 1st January, already he has made clear his wish to use his presidency to push for higher standards. In an interview with Construction (page 22) he admits that one of his biggest frustrations is the public perception that developers and the construction sector are inextricably linked. He wants to change that perception by highlighting the excellent work of CIF members. So let’s hope 2015 will see that work continue with improved growth and increased optimism for all within the construction sector.
Brian Foley Editor
A Christmas message 2014 has been a very progressive year for the Irish construction industry. The increase in activity that started last year has grown and we are now an industry that is officially on the up. That’s not to say this pick up has been universally felt. There are still large parts of the country where we are yet to see any real increases in construction. There are also still significant blockages to boosting house building. However as the year draws to a close we have to say that things are looking good for the development of the industry. The sector clearly has the backing of the Government who want to see 60,000 construction jobs created by 2020 and who have just announced a €3.8 billion investment in social housing. All this suggests that 2015 will bring further good news for the sector. As this is the last issue of 2014 I would like to warmly thank our outgoing President Philip Crampton for all the energy and enthusiasm he has brought to the role over the past two years. Philip has provided exemplary leadership of the CIF, making a
massive contribution to all the CIF’s successes over the past couple of years. I’d also like to congratulate Philip’s incoming successor Michael Stone on his election. Michael will bring an extensive set of skills, immense drive and in depth experience to the role. The CIF is in good hands. On behalf of the CIF I would like to wish all our members, their families and all readers of Construction a very Happy Christmas as well as success and happiness in 2015. Tom Parlon, CIF Director General
CONSTRUCTION ■ November/December 2014
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CONTENTS OPINION NOVEMBER/DECEMBER 2014
CONSTRUCTION 17 PROCUREMENT CONFERENCE Full coverage from Athlone event
5 CIF NEWS
AGM, CIRI, IR Bill
Annual event at Doubletree Hotel
21 MICROSOFT FEATURE
News of free CIF seminar
22 COVER STORY
Report from latest Lean meetings
30 GREEN CONFERENCE
A sustainable future discussed
32 GILBANE NEAR TO KERRY COMPLETION
38 MPDI ANNUAL CONVENTION
51 DISPUTE RESOLUTION
41 CIS FEATURE
53 CORK BREAKFAST BRIEFING
New CIF President Michael Stone
27 LEAN CONSTRUCTION
49 GALWAY CONSTRUCTION
14 MBCA DINNER
35 GRANT THORNTON CONFERENCE
Site visit to Naas
Positivity at Croke Park
Report and pictures from Cork
Showcasing projects worth €11bn
43 PENSIONS
Working with Clancy Construction
Streamlining the brand
Report and pics from awards night
All the dates upcoming courses
Latest news from wider construction sector
64 DIARY
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Temporary traffic management seminar
60 INDUSTRY NEWS
Central Bank set for move
48 SIG IRELAND
Statutory adjudication implications
57 TRAINING
46 NEWS EXTRA
Report from NUI campus
54 NISO AWARDS
Latest pensions advice
45 WIT BIM
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CIF dates for 2014
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CONSTRUCTION ■ November/December 2014
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For further information contact the CIF offices or request further information from your insurance broker > CIF Dublin Tel: 01 4066000 Fax: 01 4966953 Email: cif@cif.ie > CIF Cork Tel: 021 4351410 Fax: 021 4351416 Email: cifcork@cif.ie > CIF Galway Tel: 091 502680 Fax: 091 584575 Email: cifgalway@cif.ie Alternatively you can contact AffinityCover direct at affinitycover@cib.ie, or phone 01 4068190
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CIF NEWS
New President elected at CIF AGM Michael Stone was elected as the new CIF President at the Federation’s recent AGM. He will officially takeover from outgoing President Philip Crampton on 1st January 2015. Michael will serve as the head of the CIF and leader of the CIF’s Executive Body for the next two years. The new President is the founder and CEO of Designer Group, one of Ireland’s leading engineering contractors which operates extensively throughout Ireland and the UK. Some of the key projects he has been involved in include the new Diageo brewery in St. James’ Gate, the redevelopment of Clery’s Department Store, the Olympic International Broadcast Centre for the 2012 Games in London, the redevelopment of the iconic Adelphi Building in London as well as works on the Mater Hospital, UCD, Trinity College and the General Post Office. Before founding Designer Group he had an extensive career with the ESB. During his time in the CIF he has also served as President of the Electrical Contractors’ Association (ECA) and the Mechanical Engineering & Building Services Contractors Association (MEBSCA). The CIF Annual Report 2014 was also adopted at the AGM. A digital copy of the report is available at www.cif.ie For a comprehensive interview with Michel Stone conducted by Construction Editor Brian Foley, turn to page 22.
Pat Lucey, CIF Vice President, Dominic Doheny, CIF Senior Vice President, Michael Stone, incoming CIF President and outgoing CIF President Philip Crampton
CIF Past Presidents at the CIF AGM 2014 (Back Row l-r): Oliver Haslette, Kevin Kelly, Andy O’Gorman, Michael Stone (incoming President), Philip Crampton (outgoing President), Matt Gallagher, Frank McCaffrey (seated), Ted Fitzgerald, Mirette Corboy, Tom Gill
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Philip Crampton hands over the Chains of Office to Michael Stone CONSTRUCTION ■ November/December 2014
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Apprenticeship Council hailed as “fundamentally important” The recent launch of the Apprenticeship Council has been warmly welcomed by the CIF as being “fundamentally important for the future of the construction industry”. The establishment of the Apprenticeship Council is a key action in the implementation of the recommendations of the recent review of the Irish Apprenticeship System. Announcing the establishment of the Apprenticeship Council, Minister for Education and Skills, Jan O’Sullivan, TD, said: “I am very confident that with the launch of the Apprenticeship Council, we now have an excellent basis for renewing the apprenticeship system in Ireland. I am determined to see apprenticeships becoming a strong, relevant, quality model of learning in both further and higher education and training across a wide and diverse set of trades and sectors”. The CIF believes that the council will help shape the future of the apprenticeship system in Ireland and this will have a significant impact on the construction sector.
The Apprenticeship Council meets for the first time, 18th November 2014: (l-r) front row: William Egenton, Pat O’Doherty, Minister for Education and Skills, Jan O’Sullivan TD, Minister for Skills, Research and Innovation, Damien English TD, Patricia King; middle row: Mary Liz Trant, Jim Murray, Noreen O’Hare, Eamon Devoy, Sandra Guilfoyle, Martin O’Brien, Trish O’Brien; back row: Ray Kelly, Phil O’Flaherty, Tony Donohoe, Tommy Maloney, Paul O’Toole
“The appointment of the Apprenticeship Council is a very positive development which will be warmly welcomed by everyone involved in the construction industry,” said CIF Director General Tom Parlon. “We have been awaiting for this development as it
is fundamentally important for the future of the construction industry. The work of this group will shape the future of the apprenticeship model in Ireland and in no industry will that be more keenly felt than in the construction sector.”
Delaying industrial relations legislation a “threat’ to growth, says CIF The CIF has called for the urgent enactment of the Industrial Relations (Amendment) Bill 2014 and the implementation of a new Registered Employment Order (REO) for the industry. Speaking at the Joint Oireachtas Committee on Jobs, Enterprise and Innovation, the CIF said any ongoing delay in the legislation could be a “threat to growth” in the construction sector. In May 2013 the Supreme Court found the mechanism by which Registered Employment Agreements (REAs) were implemented was unconstitutional. Since then the construction sector and other industries have been operating without legally binding industry wide employment agreements. The Industrial Relations (Amendment) Bill seeks to address this issue by allowing for REOs to be introduced. The CIF believes the new legislation is needed for several reasons including: • To have a level playing field for contractors in the tendering process • To bring certainty to the sector on labour costs
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• To provide disputes’ procedures which will help resolve any disputes which will invariably occur in a labour intensive industry. Speaking at the Oireachtas Committee, CIF Director General Tom Parlon said, “the construction industry believes this legislation is urgently required. The sector is only starting to recover and already the absence of any legally binding industry wide employment agreement is impacting the sector. For example there are wide discrepancies in some of the tenders being submitted for various projects due to the varying wage rates being offered. A legally binding industry wide agreement would make it a much more level playing field. “It would also bring a lot more assurance about the labour costs involved in any particular project - an issue which is of major concern to clients of all sizes and which will be particularly important for some of the planned public sector projects. We want to have a healthy, growing
industry but that requires greater certainty. The lack of certainty undermines confidence and in that sense the absence of a legally binding industry agreement is a potential threat to growth. “The new legislation will help bring that sense of calm to the sector and ensure there are specific processes in place for dealing with any problems that arise. Delaying the legislation promotes doubt and that is something clients, construction companies, construction workers and the wider economy can’t afford. “The implementation of an REO through this legislation benefits the construction industry, the employees, the unions and the State. It is in the interests of everyone that the sector begins to thrive again, creating jobs and helping the economy to grow. However that will only happen if there is a relatively calm industrial relations environment and the best means of achieving that is to implement the new legislation as a matter of urgency,” Mr Parlon concluded.
CONSTRUCTION ■ November/December 2014
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CIRI: making the industry a “better place” In a speech to CIF members and representatives of Engineers Ireland, the Society of Chartered Surveyors and the Royal Institute of the Architects of Ireland, Minister for the Environment, Community and Local Government Alan Kelly, TD, said the Construction Industry register Ireland (CIRI) was a response to “bad decision making and greed”. He told the audience gathered at Construction House in Dublin that “we have to learn from the past” and that CIRI will “grow from strength to strength”. A large number of industry professionals were present to mark the initial success of CIRI. Already over 400 construction companies covering a wide variety of specialties are listed on the register and another 800 companies are at various stages of the application process. It is expected that approximately 1,500 companies will be listed on CIRI by the end of 2015. Speaking at the same event, outgoing CIF President Philip Crampton said that before CIRI anyone could pass themselves off as a building contractor, regardless of their experience. “The lack of any official register made it easy for those to cut corners to secure work.” He went on to say that CIRI will help drive out that type of practice. “It will allow those who carry out good, quality work and who meet all the eligibility criteria to stand out from those who do not,” he said. The CIF President singled out Mel O’Reilly and Brian McKeon for a special word of thanks. “They have been the true champions of CIRI throughout the CIF. Mel and Brian are the people who have allowed this register to go from a vague idea to a fully formed platform that will shortly be put into legislation.” The CIRI Registration Board was also present at the reception, Philip Crampton thanking them for “giving their time so generously to this vitally important project”. Hank Fogarty, Chairman of the CIRI Registration Board was described by the CIF President as having invested “tremendous energy” in the register. The CIRI Chairman was the final speaker on the night. He mentioned that a similar register was attempted 20 years ago but with the new version “hopefully we will end up as a industry in a better place”.
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The CIRI Registration Board with Minister Alan Kelly, TD
(l-r) William Byrne, Charles Wills and Martin Lang, CIF Director Main Contracting
(l-r) Chairman of the CIF Register of Builders Sub Committee Mel O’Reilly with CIF Chief Operations Officer George Hennessey
CIRI Registration Board Chairman Hank Fogarty
(l-r) Frank Kelly, Paul Stewart and CIF Director General Tom Parlon
(l-r) Jim Wood, Eamon Stapleton, CIF Director Housing Hubert Fitzpatrick and Brian McKeon
CONSTRUCTION ■ November/December 2014
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CIF NEWS
Construction Safety Partnership
John McGrath, Head of Skills and Labour Market Research Unit (Solas), Fergus Whelan, ICTU, Dermot Carey, CIF Head of Safety and Manpower Policy and Hank Fogarty, Chairman of CIRI Registration Board at the recent Construction Safety Partnership Forum, 26th November 2014.
Robert Kelly is the Construction Safety Representative of the Year 2014. Robert works for Cork-based CIF member firm McGinty O’Shea. He is pictured here with the company’s HSQE Manger Pauline McCarthy in Cork, 20th November 2014.
Minister of State at Department of Social Protection with Special Responsibility for Activation, Kevin Humphreys, TD, at the Pathways to Work 2015 Breakfast Briefing, Construction House, Dublin 18th November 2014
CONSTRUCTION ■ November/December 2014
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CIF NEWS Social housing announcement signals serious intent Minister for the Environment, Community and Local Government Alan Kelly, TD, pictured in Construction House, Dublin, just hours before announcing the €3.8bn social housing package
The Government’s announcement they are to spend €3.8 billion on social housing by 2020 will create a massive uplift in construction activity, says the CIF. Under the Government’s plan 35,000 social housing units will be built or refurbished by 2020. Speaking in reaction to the plan, CIF Director General Tom Parlon said, “The building and refurbishment of social housing at these levels will mean a huge amount of construction activity. This is exactly the type of large scale capital investment the construction industry has been crying out for
country. This announcement will help ensure there is a significant reduction in the former construction workers who are on the dole. “The industry looks forward to working with the Government and the various housing agencies to help bring these projects to completion.” The social housing announcement came in the same week news emerged of a significant increase in the number of people employed in the construction sector. According to the latest CSO Quarterly National Household Survey, employment in the construction sector grew by 6,100 in the last quarter (Q3). Total construction employment now since the recession. It will create a massive uplift for the sector. It will also have a double impact on the stands at 112,400, up from 106,300 at the end of Q2. During the course economy - creating thousands of jobs, while vastly of the year, the construction sector has improving the social housing supply.” seen employment grow by 10,100. Total The CIF Director General went on to say that construction employment levels had “the Government estimates that this initiative stood at 102,300 at the end of Q1 2014. will create 29,000 construction jobs. Coupled A full report on the implications with the latest CSO figures this is really positive of the social housing package for the news for construction employment. For too construction sector will appear in our long the construction sector has accounted for first issue of 2015. the largest segment of unemployed people in this
Pictured at the Athlone Institute of Technology graduation day on Thursday, 30th October are: (l-r) Fergal Sweeney, Head of Department of Civil, Construction & Mineral Engineering, Justin Molloy, Regional Manager, CIF, Brendan McDonnell, Best Student in Sustainable Construction & Civil Engineering, Dr Austin Hanley, Head of School of Engineering and Leo Reddy, lecturer in the Department of Civil, Construction & Mineral Engineering. Brendan is the recipient of the CIF Midland branch “Pat Smyth Memorial Award” for best student in Sustainable Construction & Civil Engineering.
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MBCA President strikes optimistic tone at Annual Dinner The 2014 Annual Dinner of the Master Builders and Contractors Association took place on Friday 14th November in the DoubleTree by Hilton Dublin Hotel.
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he event was attended by over 430 members and their guests. Top table guests included representatives from the Government Construction Contracts Committee, Department of Education, Department of Jobs, Enterprise and Innovation, Commissioners of Public Works, Irish Water, GrangeGorman Development Agency, Society of Chartered Surveyors Ireland, Royal Institute of Architects of Ireland, CIOB of Ireland, Association of Consulting Engineers of Ireland, Construction Employers Federation, Institution of Structural Engineers and Construction Industry Federation constituent Associations. During the evening, the Ivan Webb Scholarship awards were presented to students of the School of Surveying and Construction Management at the Dublin Institute of Technology. The Ivan Webb Scholarship is awarded to students of the first and final years of the Bachelor of Science in Construction Management degree, and for the first time this year a “Back to Education” award was presented to a student. The winners of the awards were: First year whole time, Bachelor of Science in Construction Management - Gabriel O’Hara Back to Education Award School of Surveying and Construction Management - Vincent Gibson Gold Medal Award, Bachelor of Science in Construction Management - David Fortune Attendees were treated to entertainment from comedian Willie White, as well as a guest speech from Ivan Yates. During the course of the meal, the President of the Association Paul Stewart of Stewart Galway, addressed the members. Here are some edited extracts: “It’s great to see the positive atmosphere in the room here tonight. As I was talking to some of you in the lead up to tonight or even since I arrived here this evening, what struck me was how energised everyone seems. Most of the sector has become a lot more upbeat over the course of the last 12 months. The mood has changed. Going around the country we are starting to see active construction sites again. We’ve even
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seen the return of the breakfast roll man. It may not be the most healthy of dietary choices but it is another positive sign of the increase in activity in the industry. This is all backed up by the latest statistics. According to the CSO figures, the number of people employed in the construction industry grew by 4,000 between the first and second quarters of this year. That is a massive jump and shows how much extra activity is taking place. Additionally all the various indexes of activity are also on the rise. Again the CSO state that the volume of activity across the sector is up 11 percent over the last year. For civil engineering there has been a 9.7 percent increase. Going even further there was a jump of more than 24 percent in non residential activity. This points to improved market conditions for members of the MBCA and the wider construction industry. Of course even if we are moving in the right direction, there is still a long way to go. The industry will need to continue to grow in the coming years if we are to reach our optimum, sustainable level of activity. The Government have stated they want to see the industry reach 12 percent of GNP. They view 12 percent as the level of ongoing contribution the sector should be making to the economy. I think everyone in the industry would be happy to see construction activity pitched around that mark. But for that transformation to be achieved for the 12 percent of GNP target to be reached - then the Government must work closely with the industry as they go about fleshing out the details. It would be counterproductive if the Government were to start enacting policy for the construction sector which will lead to more problems for the industry. The voice of the industry needs to be heard on all of these action points. Like on all construction projects, the plans might look good, but it will take the input of construction companies to make them a reality. The CIF and the MBCA will be working tirelessly to ensure that these measures do provide the support they were drawn up to facilitate. That is our job. It will be the guiding principle of our activities over the coming years until we get the policies in place that the industry needs.
So far the increase has been mainly focused on Dublin, the surrounding counties as well as Cork and perhaps Galway. Many of the regional members of the MBCA are still waiting for concrete signs of the pick up. Hopefully the regions will start to see more activity over the course of 2015 and we will be working to support the spread of work throughout the country. As everyone in the industry is aware the review of public works contracts - or the Government Construction Contracts as they are also known - is due to conclude in the near future. We dearly hope that this will result in contracts that will work for all the stakeholders. Of course if we are looking to the future and an increase in construction activity, then we also need to reflect on whether we will have sufficient skills to complete these jobs. Earlier this year there were some very shocking statistics published on the number of new apprentices beginning to learn certain construction skills. For example, only 4 people began to learn plastering in the year to June, while only 3 began their brick laying apprenticeships. These are frightening statistics for the future of the industry. I would also encourage every company in this room to look at the apprenticeship system and to consider taking on apprentices in the near future. This is one of the rare occasions where we can see a problem coming and we also have the opportunity to prevent it. We all need to do our part to safeguard the future of the industry. Of course encouraging people into the construction industry will be easier if there is more certainty about wage rates. This is another example of how the absence of the REA is having a negative impact on the industry. On a broad basis the lack of an agreement is causing a great deal of uncertainty and disruption for many construction companies. The Government has recently published the Heads of Bill for new legislation that will enable the adoption of REAs again in the future. Hopefully that legislation will move forward swiftly, bringing greater certainty to the industry again.
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MBCA DINNER
MBCA President Paul Stewart; CEF President Rhona Quinn; CIF President Philip Crampton
CIOB Irish Branch Chair Ivan McCarthy; CECA President Pat Lucey; MBCA President Paul Stewart; ECA President Ger O’Leary; MEBSCA President Jim Curley; IHBA Chairman Stephen McCarthy
Guest Speaker Ivan Yates; MBCA President Paul Stewart; CIF Senior Vice President Michael Stone; CIF Director General Tom Parlon; ASCA President Tony O’Leary
Guest Speaker Ivan Yates; RIAI Director John Graby; GCCC Chairman David O’Brien; MBCA President Paul Stewart
Department of Education Manager (Professional & Technical) Larry McEvoy; SCSI QS Chair Paul Dunne; MBCA President Paul Stewart; ACEI Director Anne Potter; Grangegorman Development Agency Chief Executive Michael Hand
MBCA President Paul Stewart
Ivan Webb Award Winners: Vincent Gibson; David Fortune; Gabriel O’Hara
Guest Speaker Ivan Yates
Comedian Willie White
CONSTRUCTION ■ November/December 2014
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PROCUREMENT CONFERENCE Michael Stone, incoming CIF President with Gillian Murtagh, Chairman CIF Midlands Branch and organiser of Procurement 2015
At a recent procurement conference organised by the CIF Midlands Branch, CIF members heard from rage of key professionals about the current and future state of the procurement process. Brian Foley reports from Athlone.
Opportunities and challenges outlined at Procurement 2015
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t the start of the four-hour conference, CIF Director General Tom Parlon spoke of the upturn in the economic situation and the different experience CIF members based west of the Shannon were having compared to the east coast. He did, however, mention local well-known hardware retailer Michael Ganly who said there was a “substantial” pick-up in activity in the Athlone region. The CIF Director General said the reason for the conference was to tackle the belief that “procurement is worrying and complex, which
is people’s view of it”. CIF President Philip Crampton also addressed the conference, reminding members that “traditionally public contracts account for 50% of all construction activity”. He went on to say that CIF SME firms should have fair access to tendering. “Size should not be an issue,” he stated. Gillian Murtagh, Chairman CIF Midlands Branch, gave the background to the conference, saying that “for many contractors Government work is the only work available”. She said it was crucial the CIF kept
Paul Quinn, Chief Procurement Officer, Office of Government Procurement
procurement and payment at the “top of the agenda”. Summing up what many within the construction sector feel, she quoted John Ruskin: “It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much, you lose a little money - that’s all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot - it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”
On change “We want to speak to the supply base as one voice” “€5bn borrowed per annum to pay the bills.”
On Construction Contracts Act “The delay in implementing the Act is due to the requirement to establish the panel of adjudicators code of practise.”
€23m per day spent by the Government on goods and services, excluding Capital expenditure.”
On CIRI
“The move is not about cost or process, it’s about value for money.”
“There is a range of legislative and policy development that will impact the construction sector.”
On Public Contracts review
“The move to a statutory footing is very important.”
“A formal announcement will be made in the next couple of weeks about the Public Contracts review. We listened carefully to stakeholders.”
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David O’Brien, Chairman, Government Construction Contracts Committee
On Europe “We are governed by European Treaty Directives. The principle of transparency is at the heart of these directives. “There is a clear objective from Europe to break down trade barriers. At it’s heart, that’s what public procurement is set up to do.”
On change “We are looking at change. We have made recommendations to the Minister and these reflect industry submissions.”
“We need to look at how we engage with the industry. Nobody is happy to see prices collapse.” “Change won’t happen overnight, but change will occur.”
On CIRI “This is hugely important, once CIRI is established on a statutory basis there will be advantages for the entire industry. It gives us a metric by which to measure the construction sector.”
Martin Acton, Chief Procurement Officer, Irish Water On change “We’re going through a turbulent time but our single biggest focus is capital investment. We will issue 500 tenders over the next two years.”
On the construction sector “We want to spend money upfront. Everyone will get a fair chance. There’s going to be a big capital spend over the next few years.”
On tendering “Look at the questions (on the tender document), understand what we’re asking. Tell us why you’re right for the job, how you will manage risk.”
Jim Curran, HSE On the future
On tendering
“The HSE has a capital allowance of €312m for 2015. We’re building a new children’s hospital, new primary care centres and a new National Forensic Mental Health Services hospital.”
“There are opportunities for contractors. When it comes to tendering I’m amazed at the mistakes companies make. If you don’t supply all the information required how can we assess you? You might have an excellent project history but you have to tell us. And get it sent in on time!” “We’re not trying to screw the contractor.”
Larry McEvoy, Technical Manager, Department of Education & Skills On capital spending “Our capital spend held up during the recession. In 2014 we had a budget of €546m, in 2015 that figure is €530m and in 2016 we’ll spend €415m” “The emphasis is on new schools, not refurbishment.”
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“Post primary demand will rise until 2016.”
tendering compared to closed tendering from contractors.”
“We’re working on a new five-year plan that will bring us to 2020.”
“Fixed price contracts in a rising market are dangerous for the contractor.”
On tendering “There are 99 projects scheduled for 2015/2016.” “There is a lower response to open
On future regulations “Near zero energy buildings: what wull that mean for schools? Prices will rise.”
05/12/2014 07:20
PROCUREMENT CONFERENCE
Tom Parlon, CIF Director General, Brendan Henry, CIF Northwest Branch Executive Body, Barry McMenamin, CIF Donegal Branch Executive Body, Dominic Doheny, CIF Vice President, Philip Crampton, CIF President, Gillian Murtagh, Chairman, CIF Midlands Branch, Jim Curran, HSE, David O’Brien, Chairman Government Construction Contracts Committee, Paul Quinn, Chief Procurement Officer, Office of Government Procurement and Paul Carey, CIF Galway Branch Chairman
Justin Molloy, CIF Regional Manager and Laura Dennison, New Business Development, CIF
Dominic Doheny, CIF Vice President, Barry McMenamin, CIF Executive, Martin Lang, CIF Director Main Contracting, Brendan Henry, CIF Executive, Justin Molloy, CIF Regional Manager and Joe O’Brien, CIF Director Southern and Western/ Midland Regions
CIF Members at the Athlone conference
CIF Procurement Conference 2015, 6th November 2014
CONSTRUCTION ■ November/December 2014
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iF and cloudAssist wish to invite you to an informative session with Microsoft who will outline how the Microsoft cloud solutions can improve operational efficiencies through increased mobility for staff on the go, improved collaboration to clients and electronic signatures for real-time contract approval. Attend this ciF briefing to hear about the latest solutions that will help to improve operational efficiencies as demonstrated in the Microsoft case study of ciF member, King & Moffatt (www.microsoft.ie/kingmoffatt). Hear from Mike Hughes (Business Group Lead, office 365 Division at Microsoft) on the strategic value of office 365 for the construction sector. tom Parlon will deliver the keynote address outlining the challenges facing the construction sector. sean Brady from cloudAssist, will outline how office 365 can assist ciF members to compete on an international scale with valuable ‘takeaways’ for your business (see below) and explain why buyin from management is key to the successful user adoption of technology.
Where: Microsoft Building, south county Business Park, Leopardstown, Dublin 18 When: Wednesday the 28th of Jan 2015 8am -11am To book: to reserve your place or all 01 685 2556 or email deirdre@cloudassist.ie or go to www.cloudassist.ie/cif Attendance is free to ciF members, however places are limited. Communication – one of the biggest challenges to traditional it systems is access to emails and data on the go. By their nature, constructionrelated projects requires mobility especially while managing construction contracts outside of ireland. old on-premise Exchange servers with VPns (Virtual Private networks) are not delivering against this requirement and email is becoming overloaded as a communication channel. Takeaway – learn about office 365 Exchange and Lync services provides a communication platform for instant messaging, calls and online meetings combined with cloudAssist’s Audio conferencing service and Plantronics Lyncenabled telephony hardware. Having a record of instant Messages (iMs) and online meetings
Learn how Microsoft Office 365 and CloudAssist can help with these operational challenges. for documenting minor decisions between clients, contractors and other partner companies is very appealing to the construction sector because disputes and project delays can be a reality however proving how project decisions were made using historical telephone conversations can be difficult. Collaboration – this relates to project-orientated processes that most construction companies tend to follow as part of their business. The biggest issue that they have is that email is the primary means for document management which is becoming in-effective due to the large attachments (i.e. greater than 25MB ) and the problem of multiple document versions to multiple parties (internal & external) during the lifetime of a typical construction project. takeaway– hear how online teamsites with correct user permissions for project managers, clients and contractors makes online collaboration achievable for the construction sector even after the project is completed as most construction companies are obliged to maintain o&Ms. Contracts – this is a big potential win for construction companies with Docusign for office 365 as contract management is a necessary part of this project orientated business. Most construction companies are still using paper copies of contracts, which are physically printed out, signed and scanned and emailed for the next signature. Takeaway – co-authoring (multiple users editing the same document online at the same time) with office 365 along version control and legal-hold in teamsites allows a master document to be completed efficiently even with multiple parties. The integration of Docusign with office 365 allows digital signatures to be accepted as a legal contract in the Eu without the need to leave the office 365 environment. This ease of use will allow
other minor project documents to be sent for instant approval using a digital signature, which will increase the ownership of the document by all parties.
Cloudassist cloudAssist is a certified Microsoft cDP cloud Deployment partner with a usercentric approach to deliver improved business process efficiencies in project-orientated companies. cloudAssist has a strong focus on the construction sector and have assisted a number of construction clients to take advantage of the cloud while addressing the specific challenges facing this sector. cloudAssist is eligible to provide office 365 and sharePoint Deployment Planning services, paid for by Microsoft, to entitled customers with an enterprise agreement or software Assurance with Microsoft, which is worth up to €10K towards their migration to office 365 along with additional grants for enterprises with more than 150 office 365 seats. cloudAssist is the proud sponsor of the non-profit initiative, Just social, “social technology Donation for irish charities”, which includes the office 365 donation from Microsoft. to book: call 01 685 2556 or email deirdre@ cloudassist.ie or go to www.cloudassist.ie/cif
construction ■ November/December 2014
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“It causes me huge frustration that all the brilliant people who work in the industry, the people who construct incredible buildings, barely get a mention. They are completely overshadowed by the developer legacy” Incoming CIF President Michael Stone, November 2014
The new President of the CIF Michael Stone says he is already thinking about where he wants the Federation to be when he departs in two years time. He spoke to Brian Foley about what he wants to achieve as President. Michael Stone pictured at the Grangegorman DIT Campus, 26th November 2014
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COVER STORY
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t the recent CIF AGM outgoing President Philip Crampton handed the chains of office to his successor, Dubliner Michael Stone. A few hours later in the same room the incoming President attended a reception where Minister for the Environment, Community and Local Government, Alan Kelly TD, spoke about standards in the construction industry and how the launch of the Construction Industry Register Ireland (CIRI) would ensure the bad practices of the Celtic Tiger era would never happen again. For Michael Stone, the Minister’s comments echo his thinking on where the construction industry needs to be. “We need to look at standards in the industry,” he says. “CIRI is a hugely positive initiative, which the CIF fully supports. “We need to be leading the changes rather than reacting to events.” It’s clear also that the new President has strong views about how the construction industry is perceived. “One of my hopes for my time as President would be to see a change in how the industry is viewed by the public. “It causes me huge frustration that all the brilliant people who work in the industry, the people who construct incredible buildings, barely get a mention. They are completely overshadowed by the developer legacy. That’s all people see. “Even in the downturn, when thousands of workers lost their jobs, the fact they had received excellent training from the Irish construction sector, which led to them being in huge demand overseas, was lost on most people. There is not enough recognition for the many positives the industry has delivered.” On the training issue, the new President says the skills shortage is developing into a very serious problem for our industry. “If, as we hope, the upturn that we are experiencing in some parts of the country continues, then the lack of qualified personnel to carry out the work will be an issue for companies. “From speaking to people in consulting engineering and architectural practises around the country, it is clear that they are having problems with getting suitably qualified people so it is only a matter of time before the trades are experiencing the same problems. “We’ll really see the issue come to the fore
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COVER STORY when house building takes off in earnest.” He mentions discussions the CIF has conducted with Solas and the Department of Social Protection about getting long-term unemployed re-trained and ready for the jobs’ market. “People who have lost confidence, as a result of being made redundant from our industry companies, need our assistance and our Federation is currently working on a number of targeted training programmes designed to allow them to return to the workforce by having their Safe Pass Cards and Manual Handling Training brought up to date. “More companies need to provide apprenticeships,” he says. “I see from working in the UK that the larger companies are moving away from using sub contractors and back to more direct employment. Training apprentices takes time and effort but the investment is repaid many times over. From my own company’s point of view our experience has been that we receive great loyalty from the apprentices that we have trained with many of them having progressed with their careers by becoming supervisors and site managers.” He is also of the opinion that some apprenticeships don’t necessarily have to take four years to complete and the industry needs to better communicate the career path open to apprentices entering the sector. “We need to show them that it is possible to progress to a Level 7 or Level 8 qualification, post apprenticeship should they so wish, he says. “We need to promote the industry to second level students before they get to Leaving Cert, preferably in their transition year.
Upturn “While Dublin and Cork are experiencing definite signs of an upturn, for example I think the Dublin Docklands area and Dublin 2/4 will see multiple new commercial office projects commencing in 2015” – some parts of the country are still in recession mode. “We need to listen to all our members across the country,” says the incoming President. “I’m looking forward to attending as many branch meetings as possible to hear the views of members. I was at the recent Procurement Conference in Athlone, organised by Midlands Branch Chairman, Gillian Murtagh, and it was very interesting to hear from people working in these regions about the problems they were continuing to face with lack of work and below cost tendering. “One of the proposals I will be putting forward is that the Executive Body should meet in Cork and Galway during my presidency. Since I joined the CIF the meetings always take place in Dublin, I think it would send a strong signal to all our members if some of the meetings were in the regions. “Coming out of a recession is a dangerous time, companies have depleted cash reserves, and prices are still dangerously low,” he says. “We have to communicate to Government and clients that below cost tendering is not good for either party and that there is nothing wrong with making a profit on a job well done.” The collapse of the REAs has had a negative impact on the construction sector – “the current situation is not sustainable in the long-term”. The new President says we need to attract new talent and
show them they can raise a family on the wage levels offered.
Construction 2020 The well-publicised Construction 2020 document published by the Government last May was an “extremely positive development” says Michael Stone, which signalled the sector was to play a central role in the economic recovery. “Construction 2020 is the culmination of a lot of work by the CIF, working with the Government and other stakeholders. We need to stick to the timelines in the document and if that happens you would generate much more activity for the industry.” The appointment of Paudie Coffey, dubbed the “Minister for Construction” by many within the CIF is also welcomed by the President – “like myself, he comes from a trade background and has a very good understanding of the difficulties a lot of our member companies are facing”. Like everyone else within the CIF Michael Stone is frustrated at the delay in signing the Ministerial Order for the Construction Contracts Act. “We’re looking at late Spring/early Summer,” he says. “Our job in the CIF is to ensure it remains a Government priority.” He is also optimistic the current Government contracts review will bring some relief from the current risk burden attached to contractors.
CIF “We need to remember who we represent and that the vast majority of our members are contractors,” says the President. Although closely aligned to the specialist contracting end of the industry, he has strong relationships with the other Associations and Branches. “I get to meet people from companies from all the sectors, big and small,” he says. “I have a good knowledge of the industry and people know me as fair to deal with.” One of the sectors he mentions is house building. “We need to support house builders seeking new finance models. The old days of 100% financing from the banks are gone, and we have to come up with innovative ideas for our members to allow them to get started again. The recent announcement from Alan Kelly about the €3.8 billion social housing initiative is great news for us. Delivering on this will be very demanding but I believe our member companies are more than capable of stepping up to the plate and producing quality housing units around the country.” There is also special mention for the CIF staff, who have “remained loyal” through a difficult period. “I would like to see the staff rewarded for their commitment. “I also would like to thank outgoing President Philip Crampton, who was a fantastic mentor over the past two years. “My company joined the CIF in 1998 and I remember being so proud that we were new members of the Federation. I’m similarly honoured to now represent my family, company and the mechanical and electrical sector as CIF President. “We need to be proud of what we build, we should stand up and not be afraid to point out all the construction sector’s achievements. We need to sell the industry to the next generation. “Over the next two years I want to see us move forward as a Federation, not only representing our members but also the wider industry.” CONSTRUCTION ■ November/December 2014
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LEAN
Lean Construction Ireland gathers momentum Construction Editor Brian Foley reports from two recent Lean Construction Institute Ireland events, where members share a collaborative approach to Lean solutions. Dr Peter Court (l) talks to Brian Clare, DIT, at the October event
T
he Lean Construction Institute Ireland is based around a Community of Practise (CoP), which was formed early in 2014. The CoP’s inaugural event took place on 16th April, was sponsored by Intel Ireland and attracted over 200 people from the AEC sector. John Pemberton, Intel’s Global Construction Manager & Lean Construction Institute (LCI) US board member delivered the keynote speech. The fourth and final meeting of 2014 was held in Castleknock at the end of November.
on
Sponsored by the CIF, speakers included both the outgoing CIF President Philip Crampton and his successor, Michael Stone. Philip Crampton said Lean ties in with the CIF principle of “highest possible standards”. He admitted change comes slowly to the Irish construction sector but said Lean and BIM is a crucial part of the industry’s future. Michael Stone said that it was in his capacity as Chief Executive of The Designer Group that he first saw Lean practice. “We were working on the Media Centre at the Paul Ebbs, Core Group member, Lean Construction Institute Ireland
London Olympics and I was amazed at the systems they had in place. “I came back to Ireland and shortly afterwards the CIF established a Lean Construction focus group. Arising from that we found seven companies willing to undergo a ‘Lean health check’, which revealed an average Lean performance of 68%.” Michael said the health check identified site waste as the biggest issue. “Focus on your pain points,” he said. “It’s all about the mindset. We’ve learned much in a short space of time. The amount of waste going into skips because of poor storage was incredible.” The Enterprise Ireland publication First Steps to Green Competitiveness was mentioned by the incoming CIF President as being a useful tool on the road to Lean. He also voiced concern about the Irish construction sector’s reluctance to share information. “Our Lean construction journey is a success, we need to share information across the sector so we all can learn.” He finished with a warning: “As a sector, if we don’t implement Lean, we’ll be left behind.” Gillian Murtagh from Shay Murtagh Precast also spoke about her company’s experience with Lean. The company undertakes a significant amount of its business in the UK and when they learned the UK Government was introducing a mandatory BIM element to all public contracts by 2016, they decided to establish a project group. “We wanted to anticipate the changes,” she said. “We’re still at an early stage but we have already introduced an in-house trainer. We’re looking at company structure, succession planning, identifying projects and setting ambitious targets in all those areas.”
October event The third CoP meeting took place five weeks early in mid-October. Sponsored by Mercury Engineering, Lean: from theory to practise heard from Dr Peter Court MEP Director of Delivery at CHUM Montreal for Construction Sante Montreal, a joint venture between OHL and Laing O’Rourke. Over 160 people were in attendance to hear Peter discuss how Lean makes a significant CONSTRUCTION ■ November/December 2014
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What is Lean? LEAN = a means of organising and managing that reduces waste and increases efficiency and value for the customer using fewer resources.
Jim Curley, Jones Engineering, with Paul Sexton, SCEG Ltd. and Bernie Woodyatt, DPS
According to Paul Ebbs: “Lean is just a word. Like many other words it can be perceived to have different meanings. The term ‘Lean Manufacturing’ was coined back in 1985 by researchers in America’s Massachusetts Institute of Technology (MIT) who were investigating the secret to Toyota’s way of doing business. The research concluded that the process by which Toyota built their cars was ‘Lean’ because only what was required by the customer, when it was required, was built. This resulted in low levels of inventory and defects compared to their competitors. By focusing on quality and not quantity a reliable workflow followed. However, achieving system reliability is a complex issue and requires reliable promises and teamwork through a different way of thinking – lean thinking. Masci (2014) maintained Lean is 10% tools and 90% people. Keegan (2014) and Donnelly (2014) reiterated this. Respect for People is paramount.
Cathal O’Doherty and Gary Widger from Mercury Engineering
Taichi Ohno (Toyota’s Godfather of Lean) empowered the workforce to stop the production line whenever a fault was detected. This had three consequences: • Defects did not continue along the production time (eliminating rework); • Reduced the onus of management to identify and resolve defect issues (overburden); and • Empowered the workforce to make decisions and increased employee engagement (skill misuse). In summary, empowering the workforce was the key element. Those ten feet from a problem are most likely to know the solution. However, until then, they were rarely asked. People are the essence of ‘Lean’ – empowering those who do the work to plan and control the work. In short, Lean is a paradigm shift in how we think about and deliver products and services. Lean is a new way to see, act and understand the world.”
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Sean Downey, Director, Specialist Contracting, CIF, Gillian Murtagh, Shay Murtagh Precast, Michael Stone, incoming CIF President, John French, Intel, CIF President Philip Crampton and Richard Keegan, Enterprise Ireland
contribution to company performance. “I think this is a sector that is embracing Lean,” he said. “The last address I made was to a large phone provider, where only 20 people
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attended.” The next Lean Construction Institute Ireland CoP meeting will take place in the Davenport Hotel, Dublin, on 4th February 2015.
The primary aim of the CoP is to encourage the adoption of Lean in the architectural, engineering and construction (AEC) sector by raising awareness of Lean Construction principles and practices and also provide a platform for companies to share their direct experiences of why and how Lean just “works”. At present, the Core Group consists of Paul Ebbs (PhathomHQ), Vincent Gibson, Raymond Turner (Construction Innovation Lab), Paul Sexton (SCEG LTD), John French (Intel), Kevin White (Jones Engineering Group), Sean Downey (CIF), Gary Widger (Mercury) and Brian Clare (DIT).
05/12/2014 07:23
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Contractors will need to ensure that their workforces are up-skilled in energy efficiency if they are to retain a competitive advantage in the market and continue to win work. This was one of the main messages to emerge from a major recent conference entitled, ‘Better than Best Practice – skills & knowledge to achieve Near Zero Energy Buildings’. Martin Foran reports.
‘Better than Best Practice’ conference shows the way
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he conference at the Wood Quay venue in Dublin attracted industry professionals from Ireland and further afield. Attendees heard how the construction sector has changed dramatically over the past few years – and how this evolution is set to continue. Changes in approach and culture are needed to address the challenges presented. Allied to this is the growing realisation that the various trades and professions need, more than ever before, to work together, in order to achieve the much higher standards that will be required. “No one is an island, so to speak,” said Tómas O’Leary of the Passive House Academy, with regard to personnel going about their jobs on site. “We need people to always think ‘what is the impact of what I’m about to do now?’” Underlying all of this is the need for continued training and this was a recurring theme throughout the conference.
Minister “Part of my job is matching up skills and demand,” said Damien English, Minister of State at the Department of Education and Skills and the Department of Jobs, Enterprise and Innovation. The Minister spoke about the need for courses to deliver the skills that are needed, noting that he had seen great improvement in this area over the past couple of years. It was, he said, about developing the right
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courses at the right time and at the right places. The Minister also spoke about moving with the times in terms of new apprenticeship models to reflect the skills needed.
Unified When it comes to meeting strict new regulations and requirements such as constructing and retrofitting quality buildings to meet Near Zero Energy standards, keeping up will certainly require a unified approach. However, changes in regulations, standards and technologies can make it challenging for those involved in the sector to keep up to date. Add to this the fact that there can be significant cultural differences between nations and different geographical regions and the challenges attached to any Europewide response are clear. From an historical and cultural perspective, Torsten Windmueller of Komzet noted how different climates had led to different building cultures and construction details. Traditionally, local materials were often used to withstand local weather conditions, said Torsten. Leading on from there, different building requirements led to different levels of knowledge and emphasis being placed on different skills areas. Training material developed on a European level is sometimes hard to adapt on a national level, noted Torsten.
EASME The need to cater to difference cultures within the European context was echoed by Zoe Wildiers of the EU Commission / EASME in the context of “Build Up Skills”. Zoe explained that one of the objectives of Build Up Skills was to initiate national discussion processes with relevant stakeholders on continuing education of on-site building workers to meet EU 2020 energy objectives. Funded by the Intelligent Energy Europe programme, the first phase of Build up Skills, said Wildiers, had been “a great mobilisation
The German experience
Torsten Windmueller reported how Komzet – a non-profit organisation – has trained over 300 Irish workers in sustainable building in Germany – mainly carpenters, but also engineers and architects. Torsten explored the differences between German and Irish carpenters. Carpenters in Germany have a deeper understanding of the following, he noted: Building physics • U-value calculation of constructions is part of apprenticeships • Knowledge about diffusibility of materials Air tightness • Awareness of the importance of air tightness • Knowledge about different membranes and their fixing to other materials
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GREEN CONFERENCE
CIF Head of Training Robert Butler addressing the Better than Best Practise conference
CIRI and CPD
The CIF’s Robert Butler explained that CIRI recognises the need for all construction professionals to embrace CPD as an integral part of their professional lives. A central purpose of the CIRI registration process is to assist governance and statutory performance compliance. The CPD element of the process is central to regulatory compliance and market credibility, explained Butler. In practice, CIRI registrants will be required to plan, record and verify the CPD activities of personnel. CPD will focus on management and supervisory staff whose input is essential to achieving legislative and regulatory compliance. CIRI registrants will commit to structured and informal CPD that falls into four main areas: 1.Building & building control regulations 2.Health & safety 3.Technology & innovation 4.Business & management
success”. More than 2,000 organisations had been involved in 30 national qualification platforms across Europe and there had been involvement from the education, building and energy sectors Pillar I had produced two key things: status quo reports and road maps of actions for various countries. Conclusions included the following: • More than three million workers would require up-skilling on energy efficiency or renewable energy sources by 2020 • Carpenters and joiners, bricklayers and stonemasons and building electricians are the most frequently mentioned occupations identified as requiring additional training • The importance of transferable and crosstrade knowledge and skills was highlighted • The need for training of the current workforce is much stronger than the estimated need for additional workers. Now Pillar II of Build Up Skills has started and it is focussing on implementation of the road maps.
Ireland
In Ireland, the Build Up Skills roadmap was
developed by a consortium which included, among others, Limerick Institute of Technology (LIT). Seamus Hoyne who is Head of the Department of Flexible Learning at LIT was the coordinator of the first Build Up Skills Ireland bid and coordinated the project implementation. He is also the coordinator of the QualiBuild project which is funded under the Build Up Skills Pillar 2 funding stream. There was a huge amount of consultation and engagement with stakeholders in the roadmap, noted Hoyne, echoing Zoe Wildiers. A number of things were reinforced and highlighted, said Seamus, including the following: • There has been a huge emphasis on retrofit over the past number of years. • Because of scale, these projects don’t always have a designer or architect involved so the craft worker plays an important role here. These are the people who are providing advice to homeowners. So they have to know what they are doing. • Trainers are in need of upskilling. However, this is not unique to Ireland but common across the countries involved. Build Up Skills had created an opportunity to focus on “neglected” target groups, said Hoyne. “It also provided evidence that the gap is one of knowledge rather than skills. “Through our discussions the word ‘quality’ kept coming back,” added Seamus. “Research showed that some of the construction workers were completely confused by some of the terminology. “However, when you spoke about ‘quality’ they knew what you were talking about. So we focused on quality as a driving force. This permeates across Qualibuild.”
CIRI and CPD Employers’ approaches to construction worker training was the subject of Robert Butler’s address. Robert is Head of Training & Development at CIF. His key message was that CIRI and the proposed CPD process will see “for the first time a process in place within the construction sector where all staff at all levels will have to now receive training. “This in turn will drive better compliance with building standards and regulations as well as safety regulation in changing how we build, bring modern methodologies into place and in the way we deliver, as a sector, the projects for domestic and commercial clients alike.” Robert said that this is an exciting time for the construction sector “as the potential for significant changes in how we operate on the ground are hugely significant and this has a knock-on effect as to how we deliver the projects and final constructed structures to our clients”. For individual workers meanwhile, one of the central messages of the conference concerned the improved job prospects of those who undertake training.
In addition, attendees further heard that these people tend to want to continue to upskill themselves – leading to a “virtuous circle”.
Speakers Other speakers at the event included Rolf Richard Rehbold from the German Research Institute for Vocational Education and Training in the Crafts Sector, who outlined various regional initiatives on ‘smart builders’ in Germany. The conference was also addressed by Joseph Little of Joseph Little Architects who examined the situation regarding design professionals. Meanwhile, Simon McGuinness from Dublin Institute of Technology looked at further opportunities for upskilling. The event was followed by a Near Zero Energy Buildings (NZEB) training course which took place on the second day of this two-day event. The training provided participants with an introduction to NZEB policy and legislation, cost optimisation calculations, design aspects and renewable technologies. It included case studies and toolkits. The conference was supported by the members of the two consortia making up the European funded projects, SustainCo and QualiBuild. The QualiBuild consortium members are: Construction Industry Federation; Irish Green Building Council; Limerick Institute of Technology; Dublin Institute of Technology; Institute of Technology Blanchardstown. The SustainCo consortium members are Limerick Institute of Technology and the Tipperary Energy Agency.
Tómas O’Leary – Passive House Academy
One of Tómas O’Leary’s key messages related to the need for all trades and professions to work together on site with a view to the big picture. Tómas who designed, built and lives in the first Certified passive house in the English speaking world, noted that there is an ever-widening range of Passive House building types. This includes private and commercial buildings as well as university student residences and schools. The Passive House Academy: • Developed the world’s first passive house Tradesperson course with CDETB • Is active in Ireland, UK, US, Australia & (soon) China • Has a highly experienced team – over 600 graduates
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onstruction work on the high-profile Kerry Global Technology & Innovation Centre in Naas is almost complete with the new campus expected to open ahead of schedule early in
2015. Gilbane Ireland is the main contractor leading the Design and Build project with the main core packages subcontracted to Alucraft, John Craddock, Kiernan Steel, Mercury Engineering and Walls Construction. Construction joined one of the monthly ‘principals walk through’ which is one of many elements of Gilbane’s collaborative approach to contracting on a wet and windy late October morning when representatives from Gilbane, as well as a number of sub-contractors toured the site to assess progress. As Senior Vice President with Gilbane, Adam Jelen remarked at the start of the walk-through, the company has a ‘safety first’ policy in place with a heavy focus on a behavioural based approach. Success with this programme has been demonstrated with 447 days worked to date on the project without a single lost time injury. The project will also achieve LEED Gold accreditation. The site tour acts as a complete visualisation of the project, with topics such as ‘challenges’, ‘quality’, ‘risk’ and ‘improvement’ used to focus the principals during their walk-through to provide Kerry with the very best project possible. At peak construction over 550 workers were on site every day. As the project, valued at an estimated €75m, draws to a close, Director of Operations with Gilbane Ireland, John Salley, says construction “has gone well, considering the weather isn’t always your friend when building in Ireland”. According to Gilbane, the new stateof-the-art centre runs to 26,200sq.m and will include customer application suites, research and development labs, culinary facilities, sensory services and a centre dedicated to “customer production commercialisation”. The heart of the facility will be devoted to production and customer evaluation and include an office building composed of large ribbon windows and suites, which will allow customers to view and test products in a natural environment. Kerry Foods has previously worked with Gilbane on its €60m Innovation and Technical Centre in Wisconsin, which won the Builder of the Year award in 2010.
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Project: Kerry Global Technology & Innovation Centre, Naas Owner: Kerry Group Design & Build Contractor: Gilbane Ireland
Our photo from 28th October 2014 shows representatives from Gilbane, sub-contractors and CIF personnel on site in Naas. (L-R) Joe Burns, ARUP, Sean Downey, CIF, Eugene O’Shea, Walls Construction, Frank Matthews, Mercury Engineering, Frank Kelly, Walls Construction (hidden), Sean Rapple, Mercury Engineering, Jon Bos, Gilbane, Gavin Murphy, Walls Construction, Jack McHugh, Alucraft, Ian Howard, Kerry Group, John O’Rourke, Alucraft, John Salley, Gilbane, Tom Parlon, CIF and Adam Jelen, Gilbane (Ronan Smith, RKD Architects – not in attendance)
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KERRY GROUP
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Constructing our future together
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We at Grant Thornton are proud of our long history of working with clients in the construction and real estate sector. We look forward to playing an integral part in your team’s future success and growth. Oliver O’Connor
Head of Construction T +353 (0)1 6805 679 E oliver.oconnor@ie.gt.com Offices in Dublin, Belfast, Cork, Galway, Kildare and Limerick.
@GrantThorntonIE www.grantthornton.ie © 2014 Grant Thornton. All rights reserved. Authorised by Chartered Accountants Ireland (“CAI”) to carry on investment business. Grant Thornton is a member firm of Grant Thornton International Ltd. (GTIL). GTIL and the member firms are not a worldwide partnership. Services are delivered independently by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. Please see www.grantthornton.ie for further details.
GRANT THORNTON An Taoiseach Enda Kenny, speaking at the Grant Thornton Constructing a Dynamic Sector conference, Croke Park, Wednesday 22nd October
“In recovery Ireland needs a dynamic, competitive and sustainable construction sector - one that makes its full and proper contribution to the economy and to job creation.” It was a case of ‘standing room only’ at the recent Grant Thornton annual construction seminar in Croke Park. Brian Foley reports.
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he growing positivity in the construction sector was further enhanced at the Grant Thornton Constructing a Dynamic Sector conference, where staff busied themselves finding extra seats for latecomers. This was one packed
conference. Introducing keynote speaker, An Taoiseach, Enda Kenny, TD, Grant Thornton Director Oliver O’Connor, said his “presence here this morning demonstrates the importance of the construction sector.”
For his part the Taoiseach struck an optimistic and confident tone. “A big part of the Government’s recovery plan is to support a sustainable recovery in the construction sector,” he said. “Today there are emerging signs of recovery in the construction sector. The latest quarterly figures show that the contribution to GDP from building and construction increased 9.1% in the past year. “CSO figures show that the volume of building and construction output increased by 10.1% year-on-year. Employment in the
sector is up by 3,600 or 3.5% in the year,” he said. He reinforced comments by many within Government over the past year by saying: “In recovery Ireland needs a dynamic, competitive and sustainable construction sector - one that makes its full and proper contribution to the economy and to job creation. “In particular, we need an adequate supply of good quality homes to meet demand from a growing population, and we need high-quality commercial developments to underpin our economic growth.
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(l-r) Nick Corcoran, Cardinal Capital, Michael Murray, Bank of Ireland and Tom Parlon, CIF Director General
“To this end, in May we published Construction 2020, a comprehensive strategy for the construction sector. We will remove unnecessary blockages to appropriate, high quality development, while ensuring that future growth and activity is sustainable, and underpinned by proper data and analysis. “The strategy is being driven by the new Minister of State Paudie Coffey who will ensure good progress on implementing its aims across Government.”
Construction Contracts Act A constant sore spot for many in the construction sector is the delay in implementing the Construction Contracts Act. The Taoiseach said he understood the sector’s anxiety about this issue and explained the delay. “The Act requires the setting up of a panel of adjudicators to ensure resolution of commercial disputes between parties in the construction industry,” he said. “The Public Appointments Service will now design and implement the recruitment process for adjudicators to be nominated to the Panel, the Minister will appoint a Chairperson for the Panel of adjudicators, and the code of practice for adjudications under the Act will published, and a consultation group with industry will be established. “With a tightly managed timeline it is expected that the new service will be fully operational, and the Act commenced by Spring 2015,” he said.
Development financing On development financing the Taoiseach said “the days of developers accessing 100% debt finance from banks are over”. “As we know this reckless approach to credit led the construction sector, the financial sector, and the wider economy off a cliff when the downturn hit. Any developers under the illusion that they can wait for these old financing conditions to return will be waiting a long time,” he said. “We need new thinking and new, more sustainable, approaches, including a more central role for equity financing.
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“To this end, a high level working group chaired by the Department of Finance and involving a broad range of stakeholders was established under Construction 2020 and is examining sustainable models of bank and nonbank financing for the construction sector. “There are now signs that the funding market for developers is also adapting with new types of ‘blended’ finance on offer. This diversification of funding sources reduces financial stability risks and is a positive development. “I welcome this conference as one of the positive steps in the journey to bring funding providers together to confirm their support for the sector. “As recently confirmed in Budget 2015 the State, through the Ireland Strategic Investment Fund, will have a role to play in this area. Under the auspices of the NTMA, the ISIF is exploring ways, through its commercial mandate, to support financing projects that will enhance the supply of housing. “Potential options include the development of house-builders’ investment funds, enabling of large scale development projects, and investment in social housing PPP projects,” he said. After the Taoiseach finished his address Nick Corcoran from Cardinal Capital Group spoke about the construction sector’s pre-2007 funding profile, where senior debt accounted for 99% of funding, while equity was a paltry one per cent. He said that the model had changed
dramatically during the intervening years with senior debt now decreased to 60%. Mezzanine finance was now a serious option for developers wishing to bridge the funding shortfall. “It frustrates me when I see headlines about no capital available to developers – there is!” He said Cardinal Capital Group has €1bn available, “and we would like to give it to you”. Economist Jim Power also spoke at the conference. He gave a generally favourable outlook, saying the issues for the cconstruction sector are: • Budget measures • Access to credit • Role of NAMA • Housing demand/supply issues • New Central Bank proposals on mortgage lending • Role of mortgage insurance • Feasibility of build He added the main economic risks to Ireland are: • Euro zone outlook • Sovereign debt levels • Personal and SME debt overhang • Housing market imbalances • Political developments Even with the challenges to the economy, he said, we’re still in a much better place than two years ago.
Grant Thornton Director Oliver O’Connor
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Master Painters and Decorators gather in Cork for annual convention The Master Painters and Decorators of Ireland Convention 2014 took place on Friday 10th and Saturday 11th October 2014 in the Clarion Hotel, Cork in the home of the recently elected President, Fergal Feehely.
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he President welcomed the member companies of the association, sponsors, apprentices and European counterparts in the UK Painting and Decorating Association and the European Secretariat and President of UNIEP as well as the International Association of Painting Contractors. The following is a synopsis of the President’s speech: “The Master Painters and Decorators Association was founded in 1899 and is one of Ireland’s oldest trade associations. It is the country’s only representative body for quality painting and decorating contractors and aims to provide a valuable comprehensive support service for its members. MPDI are currently strongly represented, however there have been challenges with the loss of over 50% of members in the last three years. Legitimate contractors have gone out of business due to the economic climate, nonpayment, the shadow economy and below cost tendering. Contractors regularly report that clients are still demanding lower and lower tender prices and that the market levels suggest a significant amount of below cost tendering. Following unprecedented levels of growth in output and employment in the decade up to 2006/2007, the sector is now making a much smaller contribution to the economy. However, having faced tough challenges it now appears that the wider economy in Ireland seems to have sight of recovery. We would hope that this will bode well for our sector. The construction sector in Ireland directly provides 103,000 regionally distributed jobs with the value of construction activity expected to grow by €1 billion to approximately €11 billion in 2014. After the latest CSO report, construction activity recorded the fifth
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consecutive quarterly increase in the volume of construction activity. The report also showed the volume of construction activity had increased by 10.1% since the same period last year. However, recovery is taking place in urban parts of the country and pick up has not been felt nationwide.
Year ahead
The late Liam Feehely of Liam Feehely Ltd. always showed a great commitment to excellence and was very supportive of his apprentices and instilled in them the desire to produce high quality work. It was deemed fitting that the Liam Feehely Memorial Trophy would be awarded to the best overall Phase 6 Painting and Decorating apprentice in CIT and John O’Sullivan was presented with the trophy. This event was made possible through the support of our main sponsors Dulux Paints Ireland and our key partners Colortrend, Pat McDonnell, Crown Paints, Fleetwood and Mark-John Ltd. In 2015 and beyond we intend to strengthen the relationship between the industry and our suppliers to ensure that as demand grows again we can all mutually benefit.”
MPDI has faced a difficult year. however there is a positive outlook for 2015. I was elected president in January and am the youngest President to date. I previously represented Ireland in painting and decorating at the World Skills Competition in Helsinki in 2005 and won the Gold Medal at the UNIEP Euro Painting Skills Competition in the Czech Republic in 2006. The Association is committed to providing Acknowledgements a high standard of craftsmanship to the Thanks to the President, MPDI Council and industry. With total apprentice levels falling Toastmaster; John McMcNulty, Sean Downey, from a registration of 161 in 2006 to 11 Director of Specialist Contracting, CIF, and in 2012, MPDI with the help of CIF are Secretary of MPDI, Gillian Ross, Executive currently making a submission to Solas on skills in Specialist Contracting and Orla Brady, shortages, up-skilling in the industry and the Administrator, both with the CIF. need to establish better supports for companies to start to train apprentices. These are the lifeblood of our industry and if we don’t address this issue now we may lose these skills forever. MPDI collaborate with institutions like DIT Bolton Street and through MPDI, the college sent three apprentices to the AkzoNobel Painting Skills Legacy in Amsterdam in June. I am pleased that they have joined us here tonight with their mentor Martin Sneyd of DIT. The association want to express our sincere thanks to Martin and the apprentices, Craig Morgan, John O’Sullivan and Tomás Feeley for representing Ireland and Martin Sneyd (DIT) with apprentices John O Sullivan, showcasing the talent that this country Tomas Feeley, Fergal Feehely (MPDI President), continues to develop. Craig Morgan
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MPDI MPDI President Fergal Feehely, Caroline Dunne, Sammy Davies (PDA) Joyce Davies, Patrizia Di Mauro (UNIEP), Markus Straube (UNIEP)
Tom Connolly (Fleetwood Paints) Barbara Connolly, MPDI President Fergal Feehely, Caroline Dunne, Laura Keenan, Alan Cregan (Fleetwood Paints)
Neil Ogilvie (Chief Executive; PDA), Patrizia Di Mauro (European Secretariat; UNIEP), Markus Straube (President; UNIEP)
Eric Healy (Crown Paints), Joanne Healy, MPDI President; Fergal Feehely, Caroline Dunne, Mary Gleeson, Tim Gleeson (Crown Paints)
d
MPDI President; Fergal Feehely, Caroline Dunne, Martina O’Flynn, Liam Holland (Colortrend)
Dave O’Halloran (Dulux Paints Ireland), Pauline O’Halloran, MPDI President; Fergal Feehely, Caroline Dunne, Elizabeth Barry, Paddy Barry (Dulux Paints Ireland)
MPDI President Fergal Feehely presenting John O’Sullivan with the Liam Feehely Memorial Trophy for best overall Phase 6 Painting and Decorating apprentice in CIT.
,
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MPDI President Fergal Feehely, Caroline Dunne, Mary Bradfield, Richard Bradfield (Pat McDonnell Paints)
Council Members John McNulty, Donal Lyne, Gillian Ross (CIF), Tom Parlon (Director General, CIF), Fergal Feehely, Caroline Dunne, Mark Dilloughrey, Tommy O’Malley, Sean Downey (CIF)
Alan Cregan (Feetwood) presenting a golf prize to Andy Skelly (Simon Bernard)
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CIS REPORT
New CIS report showcases projects worth €11bn The Construction Information Services (CIS) Construction Opportunities Report for 2015 is the second such report in as many years and demonstrates a continuing, if moderate, upturn in the construction sector in Ireland.
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he report will contain approximately 500 projects totalling in excess of €11bn from all sectors and all regions which have either started or are due to start in 2015. Reporting on the industry for over 40 years, CIS have a unique insight into the sector. As Managing Director, Tom Moloney explains, “we track and monitor construction activity by researching and reporting on construction projects from the inception of planning right through until a project goes on site”. Moloney is somewhat wary of the word “recovery” and is duly cautious of the optimism he feels at this time having witnessed first-hand the devastating effects of the downturn on his colleagues and customers in the industry. “We do see a rise in optimism and a definite upturn in activity but I am conscious it has not yet reached all parts of Ireland.” Having said that the CIS report will
and will detail over €3.5bn in commercial opportunities within Dublin alone. A lot of the opportunities are in refurbishment and fit-out work but new building work is also evident in projects such as the Cherrywood Development between the M50 and the N11 and the continued €600m mixed use development of the former Veterinary College site on Shelbourne Road. Countrywide the report details public sector investment in schools, roads, primary care centres and the new courthouse buildings. Fifty-five school projects, totalling over €350m, are about to be awarded or have just been awarded. Seven new courthouse buildings in Letterkenny, Drogheda, Mullingar, Limerick, Wexford, Waterford and Cork will have contracts awarded in March 2015. Fourteen primary care centres, ranging in size from 1,500sq.m to 5,000sq.m and representing an investment of €155m are scheduled to begin in 2015 with consortia already appointed and final negotiations proceeding. The €550m M17 Galway (Rathmorrissy) to Tuam Motorway Scheme is due to start in January 2015 with preliminary works having already commenced and the certainly illustrate that there are many new opportunities out there. Moloney sees a clear €215m N25 New Ross Bypass Scheme is expected to be awarded in Q2 of 2015. distinction between the recovery within Whilst public sector investment in the Dublin and the rest of the country and this construction industry has remained relatively will be reflected within the report. static over the last number of years, following “Dublin is like an economy within an a rapid decline during the recession, it economy. The main drivers in Dublin are still plays a very substantial role according the residential and commercial sectors. to Moloney. He sees more opportunities The need for housing in Dublin has been for many contractors, subcontractors and clearly highlighted and we have seen a rise suppliers to win new business which he said in planning applications in this area and an may not have been the case with such schemes increase in tenders for social housing. in the past. “Barriers still exist in terms of finance for “I suppose one upside of the recession has private developments but NAMA is playing an been seen in the legislative changes which seek important role in the provision of social and to prevent mistakes of the past and make the private development opportunities. industry more open, transparent and accessible “On the commercial side within Dublin we see the influx of foreign direct investment to smaller players. The new EU directives for the reform of public procurement adopted (FDI) which has continued from last year earlier this year will make it easier for smaller with the purchase and development of large companies to compete for public sector investment portfolios.” contracts not only by simplifying procedures The report backs up Moloney’s insight CONSTRUCTION ■ November/December 2014
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Tom Moloney, Managing Director
“The €550m M17 Galway to Tuam Motorway is due to start in January 2015”
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and removing red tape but protecting the smaller sub-contractors and suppliers by ensuring they are treated and remunerated fairly. The requirement for contracting authorities to split contracts into smaller lots will also help smaller companies to compete.” Moloney has high praise for the NDFA and Enterprise Ireland who he says have made noteworthy efforts to open up public sector opportunities for smaller companies through their “Meet the Buyer” events and efforts of the Department of Social Protection to encourage the employment of the many who lost their jobs in the sector through various initiatives. Whilst the recovery may not be as visible outside of Dublin the report will show that there are many opportunities across the rest of the country and in Northern Ireland. In Munster the report will highlight the ongoing €120m expansion of Dairygold’s facilities in Mallow, the plans for the redevelopment of Páirc Uí Chaoimh, the €41m Killaloe bypass in Clare, a €17m bus station for Limerick and over 100 other projects across all sectors totalling close to one billion euro in opportunities for the new year. In Connaught and Ulster, schemes in the report will include wind farm and electricity generating station projects in Mayo totalling €200m, a €20m science building at University of Galway, a €15m Garda headquarters building also in Galway and a €17m sewerage project in Donegal. Projects included in the western region top €1bn including perhaps somewhat surprisingly, residential projects in excess of €40 million. For the counties in Leinster outside of Dublin the report will include approximately 120 projects totalling €1.3bn. Significant amongst these are a €200m harbour project in Greystones in Wicklow, which is due to begin in January to provide leisure, recreational, open space, marine, mixed use residential, commercial, civic and social amenities that will be centred around a new harbour and marina. The €130m development of the Intel plant in Leixlip in ongoing and a contractor is expected to be appointed before the end of the year for the €25 million Walsh Whiskey Distillery in Carlow. A further sign of optimism for the tourist sector is shown with plans for a seventy bedroom expansion at the K Club. In Northern Ireland, Construction Information Services (CIS) has also seen the green shoots of a recovery. The €80m redevelopment of Casement Park in West Belfast is expected to go ahead although currently held up in disputes with local residents. A main contractor is expected
to be announced shortly for €32m redevelopment of the Dundonald Ice Bowl in Down and work has just started on the new €75m Omagh Hospital in Tyrone. In total the report will list nearly €1bn worth of projects in Northern Ireland. The Construction Opportunities Report is regarded by many as an essential planning tool for the year ahead giving readers comprehensive details of projects including full contact details for all the key players and pertinent information to allow companies to determine the relevance and scope of the projects listed, says Tom Moloney. As Moloney states, “It is a wellregarded report, which we had produced for many years up until the recession hit. Last year was the first year we felt it was appropriate to bring it back as we sensed that the industry decline had levelled out and this year we see a definite but measured increase in activity”. As well as detailed information on up 500 projects the report will also contain commentary and analysis from leading industry contributors about the state of the construction economy and prospects for the year ahead. “These contributions form a very significant part of the report and will give our readers an excellent insight into the prospects for their industry,” commented Moloney. The line-up of contributors is indeed impressive giving further weight to the significance of the report. They include a foreward from An Taoiseach, Enda Kenny, TD, and contributions from Hubert Fitzpatrick, Director, Construction Industry Federation, John Armstrong, Managing Director, Construction Employers Federation of Northern Ireland, (CEF), Austin Hughes, Chief Economist, KCB Bank, Marian Finnegan, Chief Economist, DTZ Sherry Fitzgerald and Damien Keogh, Partner, Construction and Engineering Group, Matheson Solicitors. The CIS Construction Opportunities Report 2015 is available now and can be obtained by visiting www.cisireland.com or phoning/emailing Alan Chapman on 2999 239; mailto: achapman@cisireland. com. Construction Information Services (CIS) track and monitor all construction projects in Ireland from early planning to contract award and on-site. You can subscribe to the CIS Project Leads Service or take a Free Trial at www.cisireland.com
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BIM
BIM: giving Clancy Construction a competitive edge
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uilding Information Modelling (BIM) has been touted as the ‘next big thing’ for the construction industry for a number of years. So what’s involved? Many governments have mandated the use of BIM on publicly funded projects, including the UK government who have set a target of collaborative BIM on public projects by 2016. In Ireland, the recent Construction 2020 report highlighted the importance of BIM, while the Construction IT Alliance has pushed the agenda to the fore of its activities. Encouragingly, there are now signs of real progress being made with a number of clients, contractors and consultants making the move to BIM in Ireland. One company who have recently embraced BIM are Tipperary-based main contractor, Clancy Construction. Since January 2013, they have been working with staff and students from the Department of the Built Environment at Waterford Institute of Technology (WIT) in exploring the potential of BIM. A design & build project that the company had been awarded was chosen a test bed for a collaborative project, with students from a number of disciplines participating including Construction Management, Quantity Surveying and Architectural Technology. The project examined various aspects of BIM including developing 3D visualisations, exploring alternative construction methods, planning and scheduling, cost estimating and services co-ordination. Specific reasons for Clancy Construction to adopt BIM were identified, including: greater competitive advantage and improved success in tender bids, better communication and co-ordination between project stakeholders, reduced time to generate a more accurate cost estimate, reduced variations and improved clash detection in preconstruction. This has led to the company recruiting a dedicated BIM Manager and investing heavily in the Autodesk Revit suite of BIM software and high-powered laptops, smartphones and tablets. Clancy Construction have begun to
integrate the use of BIM into the planning and execution of all of their design & build projects as follows: • Site logistics: during pre-construction, the existing site conditions & layout, hoarding & signage, pedestrian & vehicular access routes, emergency planning, materials transport & storage and crane positioning are planned in BIM. This allows for a more organised, cleaner and safer site for all concerned. • Construction analysis & planning: BIM is facilitating the planning of: temporary works, sequence of activities, safe working practices and co-ordination of materials. In using a visual method for planning, employees can gain a greater
understanding of what is required of them in executing their work. • 4D simulation: the project programme can be linked to the 3D model to create a 4D simulation of construction. This is particularly powerful in communicating the construction programme to all project stakeholders, especially clients. • Materials quantification: quantities extracted from the BIM model can be checked against the bill of quantities for verification of accuracy. It is particularly useful where subcontractors are using BIM; for example, structural steel quantities can be checked against the model and this information can also be used for fabrication and installation. • Mobile technology: the use of BIM has been extended into site engineering
activities, through the use of robotic total stations which allow for accurate surveys and setting-out. All site management staff are now equipped with laptops, tablets and smartphones; and through the use BIM 360 Glue and Navisworks Freedom, they can review and mark-up the model with queries on-site, allowing for real time collaboration with other stakeholders. The company have ambitious plans to improve their use of BIM through continuing exploitation of mobile technology, deeper engagement with other project stakeholders; linking BIM to the company’s existing systems including estimating databases and QA records; and exploring the potential for BIM-enabled facilities management. BIM has given Clancy Construction an edge in a highly competitive market place, leading to improved chances for success in bidding for work, increased productivity, greater cost certainty and better planning. Waste on projects has been significantly reduced and there is greater design certainty, which leads to less change during construction. Central to this successful implementation are three key elements; people - in terms of leadership and collaboration; process - by having a well-developed BIM execution plan; and power - by investing in the right hardware and software. Early engagement with all stakeholders and a collaborative mindset is essential for successful BIM implementation. For this to happen in the short-term, design teams and M&E consultants have to drive the use of BIM at the beginning of a project. On a longer trajectory, the Government must provide adequate supports for companies who invest in the technology and need to follow the lead of their UK counterparts in mandating the adoption of BIM on public projects. This feature was written by Brian Graham (Waterford Institute of Technology) and John O’Shaughnessy (Clancy Construction)
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PENSIONS
Finance Bill and changes to Approved Retirement Fund On 14th October last, when Budget 2015 was announced, there appeared to be few changes in relation to pensions, life assurance and savings.
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he headline announcements provided final confirmation that the controversial Government pension levy is to cease after the calculation date of 30th June 2015. This levy will be charged at 0.75% in 2014 and 0.15% in 2015. There was also the addition of a DIRT refund in respect of the savings of first time buyers, which, as expected, will be subject to certain conditions. Otherwise, the headline announcements offered very little else in this area. However, when the Finance Bill was published, some other details emerged for the pension sector and although widely welcomed, there is definitely still some room for improvement. The Finance Bill proposes to reduce the deemed distribution from an Approved Retirement Fund (ARF) from 5% per annum to 4% per annum where an individual is aged between 60 and 70 and has a fund value of less than €2m. An ARF is a post retirement alternative to pension or annuity purchase. ARF’s are vehicles managed by qualified fund managers, in which you can invest the proceeds of your pension fund at retirement. This option may allow the holder potential future growth on their pension funds well into their retirement, providing the holder with greater flexibility and control. On death in retirement, the holders remaining assets can be passed not only to a spouse (as in the case of pension/annuity) but also to their estate (children). Any distributions (income) drawn from an ARF are taxed at the holder’s marginal rate and in addition, current revenue rules state that an ARF holder is deemed to have drawn a minimum of 5% of their fund at the 30th November each year and must pay tax as if they
had drawn 5%. No withdrawals are required up to age 60. When this deemed distribution came into effect in 2007, it was at a rate of 3%, which at the time, while not welcomed, did not raise too many objections. However, since its increase in 2011 to a rate of 5%, financial advisors could see that this enforced 5% p.a. drawdown had the potential to significantly increase the risk of capital erosion and result in declining retirement income for the ARF holder. To avoid this erosion, ARF holders may have considered taking a greater investment risk than they were comfortable with, in order to achieve returns that at least equalled the drawdown with the aim of preserving capital or avoiding run down. With this Finance Bill, the deemed distribution rule is being reduced from 5% to 4% with effect from 1st January 2015, where an ARF holder is less than age 70 and has an asset value of less than €2m. When an ARF holder attains age 71, the rate of 5% will come back into effect. This initial rate of 4% to age 70 will increase the potential of
“Any distributions (income) drawn from an ARF are taxed at the holder’s marginal rate”
capital preservation, but the industry should still lobby to reduce this further and to have it apply beyond age 70. The current rate of 6% deemed drawdown continues to apply to all ARF funds where the value is in excess of €2 million at the 30th November in any tax year. The Approved Minimum Retirement Fund (AMRF) rules were also amended. An AMRF is required to enable entry to an ARF if the holder does not have the required guaranteed income for life of €12,700 per annum. Prior to this Finance Bill, the only drawdowns permitted from an AMRF before age 75 were on capital growth and not the investment itself. However, from 2015, an AMRF holder may now elect if they so wish, to draw an income of 4% per annum from the value of the AMRF. This will also be based on the value of the AMRF as at 1st February each year. This change will be of particular benefit to individuals with lower pension fund values at the point of retirement. Some other changes that applied to the ARF included anti-avoidance rules that have been extended to circumstances where an ARF or the assets of an ARF are assigned to a third party, and to certain transactions where value shifts from a pension to an ARF or vested PRSA. Further clarity is yet to come on this.
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NEWS EXTRA WIT School of Engineering team win the Passive House award An interdisciplinary team of four students from the School of Engineering at WIT were victorious in the first annual national Passive House Association of Ireland (PHAI) Design Charette, held as part of the PHAI ‘See the Light 2014’ conference. The competition was a 24 hour ‘Design Charette’ with the objective of proposing a design for a specific site in Dublin with the main driver of low energy design incorporating the passive house design standard. The passive house standard is the world’s leading standard in energy efficient construction. It requires little energy to achieve year round comfort in housing, making conventional heating or cooling unnecessary. Understanding the passive house design principles was key for the students and since this has been integrated into the courses of study within the school of engineering for many years now the students were very comfortable going to the competition that each had a valuable skill to bring to the 24hr competition period and the winning proposal proved this was indeed the case. The WIT team was made up of students from four separate undergraduate final
Professor Gregory O’Hare, Director of the UCD Earth Institute presenting the prize to the WIT winning team of Matthew Keating (Architecture), David Hoban (Construction Management & Engineering), Danny Murphy (Sustainable Energy Engineering), Tom O’Brien (lecturer and mentor for the day) and Cian Gilligan (Architectural Technology)
year degree courses. The competition started with Dr Elizabeth Shotton of UCD welcoming the Passive House Association members and explaining her role as one of the five judges of the competition. The eagerly awaited brief for the Design Charette was then presented by Martin Murray; founding member and former Chairman of the PHAI who provided visual context of the site and a description of key issues the client, Dublin City Council, were interested in seeing being addressed. In summary the competition
required the team to demonstrate, using a multidisciplinary effort, the following elements for the site presented: • key design decisions, especially during the initial phases • site considerations in terms of public and private space • the density of use and density of planning • a variety of housing units • key checking technologies (thermal bridge analysis, sun path, buildability of the scheme, etc.)
New central bank HQ ready by end of 2015 Dublin-based Linham Construction has been successful in winning the tender to kick-start construction of the prestigious new headquarters for the Central Bank. Located in Dublin’s North Wall Quay in Dublin Docklands, the building, formerly owned by Anglo Irish Bank, will deliver a first-class headquarters appropriate to the standing of the Central Bank and is widely
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expected to contribute to the architectural landscape of the capital. Frank Flynn, MD, of Linham Construction, said: “We are proud to be part of the team that will create an iconic, landmark city centre building. This particular building project will attract considerable public interest and the eyes of the nation are sure to be on it when it is finally unveiled as the new HQ for the Central Bank.
“To win the contract is a strong endorsement of our ability to deliver work and services to the highest standards.” Linham Construction is currently engaged on the enabling works for the site. The construction project is expected to be completed by the end of 2015, with Central Bank staff moving from their current Dame Street location to the Docklands in 2016.
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Be part of the register – Join CIRI today
The construction register is open to construction companies and sole traders of all types and sizes. All the various categories of work are included on CIRI, covering everything from large contractors, builders, small sub contractors and specialists. CIRI will soon become one of the main sources of information for those looking to source construction companies. Don’t miss out, apply to join the register today.
To apply to join or to get further information, go to:
www.ciri.ie
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ADVERTISING FEATURE
SIG IRELAND – Streamlining our brands to provide greater clarity for customers In a major development in the building products market, from December 1st SIG Ireland has re-branded its key business streams under the SIG portfolio.
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IG Construction Accessories will be the new name for Longs Construction Services. SIG Facades will be the new name for Facade Systems. SIG Insulation will be the new name for Insulation Distributors Ltd. SIG Interiors will be the new name for CPD. SIG Roofing will be the new name for Capco Roofing. SIG Technical Insulation will be the new name for Irish Insulation Solutions. JS McCarthy and HHI Building Products will remain the same. This move follows extensive research by SIG with customers, suppliers and employees. All branches will be re-branded with the new SIG format, featuring a distinctive new look, while the re-branding will also be marked by a refreshed website and comprehensive marketing campaign. In addition our staff will continue to undergo further training and up-skilling to ensure that they continue to be the most knowledgeable in the industry. The benefits of this rebrand to our customer are • Easier for you to understand our breadth and scale • Easier for you to understand our core specialisms • Reassurance in dealing with a widely recognised market leading brand • Easier access to a wider portfolio of products • Easier to find us, while receiving a
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consistent customer experience across multiple sites • An even more robust supply chain No matter where in the country, trading with SIG Ireland you will receive: consistently competitive prices, reliable
service and technical expertise. We believe these changes will improve the customer experience even further and ensure that SIG Ireland continues to be the specialist building products distributor of choice. For more information please visit our website www.sig.ie or email enquiries@sig.ie
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UCG
Construction central to NUI Galway expansion At a time when Capital projects virtually disappeared around Ireland, the €250m development of NUI Galway provided much needed work for the local construction sector. Brian Foley reports. The award-winning Engineering Building, NUI Galway
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peaking to Keith Warnock, VicePresident for Capital Projects with NUI Galway, it becomes clear that development of the university is a neverending process. “We have to take a 50 year perspective,” he says. “The need to develop and refurbish existing buildings is a never ending task.” With over 17,000 students on campus the university has grown dramatically since the 1970s when 3,500 students attended courses. At the time it was thought that number would never breach the 6,000 mark. “Those buildings constructed in the 1970s now have to be refurbished,” says Keith. “A lot of work has to be done there in terms of sustainability and heating. Even the methods of teaching have changed over 40 years.” The recent construction work arose from the 2006 capital programme, which, says Keith, went some way towards keeping the local construction sector afloat during difficult times. “The capital spend was close to a quarter of a billion euro,” he says, “the effect on construction was significant.” The university, he says, received “value for
money” from the construction sector. After surmounting difficulties in 2010 and 2011 construction resumed the following year. Galway-based contractor, JJ Rhatigan & Co, was awarded the contract to build an Arts Humanities Social Sciences Research Building and two buildings dedicated to Biomedical Science Research. The Biosciences Research Building is located near the Corrib Village student accommodation in Dangan. The third building, a combined Clinical/ Translational Research Facility, is located on the grounds of University Hospital Galway. The new infrastructure stem from the rapid growth of research activity, in biomedical science for example, which directly supports the region’s vital medical devices industry. An €8m extension to the Arts Millennium Building, which houses the university’s growing School of Psychology, was completed in 2013; JJ Rhatigan & Co was the contractor. At the height of the construction boom on campus, Keith says the university was spending €750,000 per week in development. While refurbishment is central to the next five-year strategic plan, construction of a
The NUI Galway Engineering Building has won numerous awards: - Public Choice, RIAI Irish Architecture Awards 2012 - Best Sustainable Project, RIAI Irish Architecture Awards 2012 - LAMA Award (Best Educational Building 2013) - Irish Concrete Society’s Sustainability Award, 2011 - Irish Building and Design Awards: School and Educational Project of the Year, 2011 The Sports Centre won a LAMA Award (Best Sporting Facility not publicly funded, 2010) The Hardiman Research Building won the Irish Building and Design Awards “Architectural Project of the Year” earlier this year.
sports centre is on the wish list, as well as “a very likely expansion of student accommodation”. The development continues, on a university that started life in 1845 with 125 students.
Justin Molloy, CIF Regional Manager with Keith Warnock, Vice-President for Capital Projects with NUI Galway
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The seemingly never-ending pathway to statutory adjudication in Ireland began over four years ago with the introduction of the Construction Contracts Bill by Senator Fergal Quinn, writes Brian Quinn of Quigg Golden.
ne of the key components of the Construction Contracts Act will be the introduction of statutory adjudication in arbitration. The problems of cost and time Ireland. In the UK, statutory associated with arbitration have been well adjudication has been an rehearsed. Conciliation was seen as the unprecedented success since favoured alternative to arbitration at the its introduction in 1998. There are critical time and had been introduced progressively differences between Irish adjudication and the into construction contracts. Collaboratively, UK version, such as the ability of an adjudicator the Institution of Engineers of Ireland and to resign at any time and the uncertainty the Institution of Civil Engineers produced surrounding what defines a payment dispute. a conciliation procedure, which were This may limit the effectiveness of adjudication published in 1994 and 1995 respectively. in Ireland. However, commentators have almost Conciliation was often a mandatory step uniformly agreed that adjudication will spell before arbitration, which remained as the the demise of the use of conciliation in Irish default method of choice. However, one year construction disputes. later adjudication was introduced to the UK The predicted death of conciliation has been killing off any real possibility for conciliation much lamented and consensus has been to to develop as a real dispute resolution option. suggest that conciliation is a more preferable dispute resolution vehicle to Conciliation in Ireland adjudication. The reality of the In contrast, the Irish situation is more nuanced construction industry than that; the demise “It is widely accepted that has had 15 years of conciliation would to develop its adjudication has been be a bad outcome for knowledge, extremely effective for the industry but that use and contractors working in all does not necessarily understanding of mean that the conciliation. As parts of the UK and the eventual advent of a consequence argument that proper adjudication would be of the 1997 adjudication could not a bad outcome for the Strategic Review industry either. Surely of the Construction work in Ireland is difficult the industry would benefit Industry (SRCI), to sustain” from a situation where conciliation became the dispute resolution is a multiplemandatory form of dispute choice question and not a one size resolution in all standard forms fits all orthodoxy. of building and civil engineering contracts. The Public Works Contracts (PWC) Adjudication in the UK maintained this preference for conciliation, if The basis for the demise of conciliation in an arguably corrupted quasi adjudication argument has its roots in the success of format. The private nature of conciliation adjudication in the UK. There is no disputing means, it is very difficult to attain definite the fact that adjudication is the predominant figures on how conciliation has performed dispute resolution method in construction. in the Irish construction industry. However, Within the first 24 months of the UK Act Dr Brian Bond recently conducted a survey coming in to force, the Glasgow Caledonian of 32 parties (eight employer, 15 contractors University reported that approximately 1500 and nine sub-contractors) who had been adjudications had taken place. involved in the conciliation process for use However the success of adjudication in a presentation in Engineers Ireland on needs to put into its correct context. The 12 March 2014. The survey showed that dispute resolution method of choice prior conciliation has been hugely successful at to the introduction of UK adjudication was resolving disputes, with an overall average
success rate (i.e. resolution without recourse to arbitration/court) of perhaps 97 per cent. Most (average 67 per cent) were resolved by agreed settlement, which is the best possible outcome as both parties must be reasonably satisfied. Obviously this information only lends a snap shot to the greater scheme of things but it is arguably indicative of the success of conciliation. Despite its success, the conciliation process, in general and as currently drafted in the PWC, is not without its deficiencies. Conciliation is not suitable for every type of dispute. The success of the conciliation process depends on parties engaging in the process in a meaningful way. The absence of “pay now argue later” option that exists in adjudication means that conciliation can be a potentially toothless process. This is a particular concern for smaller value claims where incurring costs in a consensual non-binding process (even temporarily) is unappealing to a lot of parties. In addition, the process is hugely reliant on the skills of the conciliator. The skills of a conciliator are, for the majority of people, not natural and require training. Knowing what the right answer is, is not the same as been able to facilitate parties in drawing that (or close to that) conclusion for themselves. For more black and white issues (if such things exist) an adjudicative process is arguably much more appropriate and efficient.
Conclusion It is widely accepted that adjudication has been extremely effective for contractors working in all parts of the UK and the argument that proper adjudication could not work in Ireland is difficult to sustain. There is also little doubt that conciliation has been hugely successful in Ireland during the same period. Surely it should be a case of “two legs bad, four legs good” and we should all endeavour as an industry to both use adjudication and maintain conciliation to allow parties to engage in a process that is appropriate to the issue at hand and in their longer term interests.
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CORK
TTM: delivering consistent message is key A large number of CIF members attended a recent breakfast briefing in Cork to hear about the latest developments in temporary traffic management.
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large number of CIF members attended a recent breakfast briefing in Cork to hear about the latest developments in temporary traffic management. John McCarthy, Senior Advisor at the Department of Transport, Tourism and Sport gave a briefing on traffic management at roadworks. ‘There have been many new developments in traffic management over the last few years, which have implications for clients, designers and contractors,” he said. He added that the Traffic Signs Manual published in 2011 is due for further updates. Chapter eight of the manual reflects current ‘international best practise’ and increased roadworks activity. The update also provides improved guidance for high-speed roads. Some of the requirements incorporated in the manual include: • requirements for designers to draft a traffic management plan • all signage must now be reflective • designers must now consider traffic volumes • Gardai must be notified if ‘stop/go man’ is provided Conor Fitzgerald from the National Roads Authority used the Breakfast Briefing to officially launch two guides - Temporary Traffic Management Guidance Handbook for Traffic Signs Related Works and the second publication covers Road Marking Related Works. Conor gave some insight into the difficulty in developing comprehensive documents when he said consultations with the CIF had started in 1998. “We need documents that work for everyone and make sense to everyone involved in temporary traffic management,” he added. Michael McDonogh, Senior Inspector with the Health and Safety Authority spoke about legislation governing safety at roadworks, including SHWWW (Construction) Regulations 2013, including regulation 97, which states that adequate SLG appropriate to the circumstances is provided. The regulation also requires that works are supervised by a competent person (CSCS SLG/ Safety at Roadworks) and adequate provision is in place to safely divert pedestrian and vehicular traffic as required.
John McCarthy addresses the large gathering of CIF members in Cork
Below: (l-r) Dermot Carey, Head of Safety and Manpower Policy, CIF, Michael McDonogh, Senior Inspector with the Health and Safety Authority, Conor Fitzgerald from the National Roads Authority, John McCarthy, Senior Advisor at the Department of Transport, Tourism and Sport, Danny Murray, Highway Markings Ltd, Gillian Ross, Specialist Contracting Executive, CIF, John Barrett and Sean Downey, CIF Director Specialist Contracting
Michael McDonogh discusses health and safety requirements
Conor Fitzgerald from the NRA CONSTRUCTION ■ November/December 2014
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Construction firms perform strongly at NISO awards The 23rd Annual National Irish Safety Organisation Safety Awards took place in early October at a ceremony in Mullingar.
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he awards are highly valued and regarded among health and safety professionals throughout Ireland. Awards presented on the night included the Small/ Sub Contractor, Safety Innovation Award 2014, in association with the Construction Safety Partnership (CSP) which was awarded to Towercom Ltd. The inaugural Occupational Safety Award, supported by the Health and Safety Authority (HSA) and the Health and Safety Executive for Northern Ireland (HSENI), was won jointly by Montupet (UK) Ltd. and The Lisheen Mine. The awards, which demonstrate the positive and proactive culture of safety management in organisations, were sponsored by the
Construction Industry Federation (CIF), Construction Safety Partnership (CSP) and Phillips 66 Ireland Ltd., while Abbott Ireland Sligo, Anderco, Bord Gais Networks, Kilcawley Construction, Roadbridge, Siteserv and Walsh Group also sponsored the annual health and safety conference this year, which preceded the awards ceremony. Pauric Corrigan, NISO president, along with Jimmy Fenton, NISG chair, and Mairead McGuinness, MEP, presented awards to over 100 organisations from all around the island of Ireland. The Gold Award was won by Helsinn Birex Pharmaceuticals from Dublin, the Silver Award by Abbott Ireland Diagnostics Division based in Longford and Sligo and the Bronze Award was won by Sierra Support Services Group.
A number of high achiever awards were presented to organisations that consistently achieved a high standard safety award between 2010 − 2014 inclusively, representing their continuous commitment to health and safety in their organisation. Recipients of this award include Abbott Ireland Diagnostics Division Sligo, Allergan Pharmaceutical, Cold Chon (Galway) Ltd. (Chemoran), Designer Group Engineering Contractors, GE Healthcare, Helsinn Birex Pharmaceuticals, Northstone Materials, PM Group, Roadbridge, Sierra Support Services Group and Xerox Technology. Expressions of interest for the 2015 safety awards can be emailed to awards@niso.ie. Register with NISO to receive details of the 2015 Awards when available.
Kilcawley Construction – winner of the President’s Award for Construction. Members of Kilcawley Construction team receive the award
Towercom Ltd., winner of the Construction Safety Partnership Small/ Sub Contractor Safety Innovation Award 2014 in association with Construction Safety Partnership.
John Cradock Ltd. – Highly Commended. Sinead Shinkins, Health and Safety Manager, receives the award.
Walsh Mechanical Engineering – Distinction. David Connolly Health & Safety Manager, receives the award.
BAM Civil Ltd., winner of the Civil Engineering Award and also a Distinction for BAM Building. Kathy O’Leary, EHS Manager BAM Contractors, receives the award.
Coffey Water Ltd and Coffey Northumbrian Ltd – Distinction. Niamh McNulty EHS Manager Coffey Group receives the award.
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NISO AWARDS
The presentation party was (L to R) Pauric Corrigan, President, NISO, Mairead McGuinness, MEP and Jimmy Fenton, Chairperson, NISG
Jones Engineering - Distinction. Decaln O’Grady EHS Manager receives the award.
King & Moffatt Group – Highly Commended. Owen Kane, Health abd Safety Manager receives the award.
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Kirby Group Engineering winner of the Regional Award (Mid West). Barry O’Brien EHS Manager Kirby Group Ltd receives the award.
SIAC Roofing Ltd., winner of the Construction – Specialist Contractor Award. John Aherne EHS Manager and Alan Aherne MD SIAC Roofing receives the award.
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ter s Walls Construction, winner of the Construction –Industrial/ Commercial Award. Gerry Keane EHS Manager, receives the award
MPD Ferg Caro Mar Liam (Colo
Jonathan Cuthbert EHS Manager PM Group Ltd
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Members of Coffey Group team with their two awards
Mike McLoughlin, Health & Safety Manager with John Paul Construction receives the Distinction Award
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Brendan Kearns, Director with Designer Group, receives the Consistent High Achiever Award
Joe McGivney, Construction Manager, Winthrop Engineering revives the Building Services Award
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05/12/2014 07:31
Dial before you dig. What you can’t see CAN hurt you. You never know what’s below the surface. Digging into a gas pipeline can cause serious injury – even death. So before you break ground, always check the location of gas pipelines by calling 1850 42 77 47. It could save your life.
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TRAINING
CIF TRAINING & DEVELOPMENT CIF training and education programmes for January - February 2015 Booking forms and detailed information are available from CIF Training and Development staff as outlined below, in addition to being available on the website at www.cif.ie/training. Please note that this is not an exclusive or exhaustive list. Further training, education and business development programmes are developed on an ongoing basis.
HEALTH & SAFETY 2014 ■ CIF /IOSH MANAGING SAFELY IN CONSTRUCTION (MSIC) The five-day CIF/IOSH MSIC course which is designed to assist owner managers, contracts, project and site and safety managers and those who must carry out the vital role of managing safety in the construction sector. Venue: CIF Construction House, Canal Road Dublin 6 Date: 29th January 2015 to 26th February 2015 Time: 09.30 –16.30 Fee: €895 non member €795 members Venue: Radisson Hotel, Athlone Date: 10th February to 10th March 2015 Time: 09.30 –16.30 Fee: €895 non member €795 members Venue: Radisson Hotel, Limerick Date: 18th February to 18th March 2015 Time: 09.30 –16.30 Fee: €895 non member €795 members Venue: CIF Construction House, Canal Road Dublin 6 Date: 24th February 2015 to 24th March 2015 Time: 09.30 –16.30 Fee: €895 non member €795 members For further information on upcoming courses please visit www.cif.ie or contact Robert Butler on 01 406 6071 or email rbutler@cif.ie Inhouses courses can be arranged.
■ CIF QQI / FETAC LEVEL 6 PROJECT SUPERVISOR CONSTRUCTION STAGE (PSCS) The three-day programme is aimed at Project and Site and Safety Managers and those who must carry out the role of Project Supervisor for construction. This course will give participants the understanding and tools required to successfully manage the role of Project Supervisor for Construction. Venue: CIF Construction House, Canal Road Dublin 6 Date: 20th January 2015 to 3rd February 2015 Fee: €895 non members €795 members Venue: Radisson Hotel, Athlone Date: 17th February 2015 to 3rd March 2015. Fee: €895 non members €795 members Venue: CIF Construction House, Canal Road Dublin 6 Date: 18th February 2015 to 4th March 2015. Fee: €895 non members €795 members For further information on upcoming courses please visit www.cif.ie or contact Robert Butler on 01 406 6071 or email rbutler@cif.ie Inhouses courses can be arranged.
■ CIF CORE SAFETY CONSTRUCTION MANAGEMENT RENEWAL/ CPD COURSE FOR MSIC PSCS & PSDP This programme is provided to support the further learning of those who have completed the full MSIC/PSCS/PSDP programmes. Therefore, any person who has completed the full CIF MSIC/PSCS/PSDP programme should attend this Renewal/CPD course every three years to ensure that their CIF Safety Management card is up-to-date for use on site. Venue: CIF Construction House, Canal Road, Dublin 6 Date: 30th January 2015 Time: 08.30 –13.00 Fee: €215 non members €165 members Venue: Radisson Blu Hotel, Athlone Date: 20th February 2015 Time: 08.30 –13.00 Fee: €215 non members €165 members Venue: CIF Construction House, Dublin 6 Date: 20th February 2015 Time: 08.30 –13.00 Fee: €215 non members €165 members
■ CIF IOSH PROJECT SUPERVISOR DESIGN PROCESS (PSDP) – IOSH
Venue: CIF Construction House, Little Island Cork Date: 20th February 2015 Time: 08.30 –13.00 Fee: €215 non members €165 members
The two-day programme is aimed at providing an understanding of the role of the project supervisor for the design process (PSDP) appointed under the Safety, Health & Welfare at Work (Construction) Regulations 2013.
Venue: Castlebar Regional Training Centre Date: 20th February 2015 Time: 08.30 –13.00 Fee: €215 non members €165 members
Venue: CIF Construction House, Dublin 6 Date: 15th & 16th January 2015. Time: 08.30 to 17.00 Fee: €895 non members €795 members.
For further information on upcoming courses please visit www.cif.ie or contact Robert Butler on 01 406 6071 or email rbutler@cif.ie Inhouses courses can be arranged.
For further information on upcoming courses please visit www.cif.ie or contact Robert Butler on 01 406 6071 or email rbutler@cif.ie Inhouses courses can be arranged. CONSTRUCTION ■ November/December 2014
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■ NEW SCAFFOLD DESIGN COURSE This half-day programme is aimed at providing broad information with regard to scaffold design, covering IS12810/12811, technical guidance document 20:08 and the current HSA Code of Practice for access and working scaffolds 2009. This course is aimed at those want to understand scaffold design, the need for designers and when to call in professionals for guidance. Venue: CIF Construction House, Dublin 6 Date: 27th February 2015 Time: 08.30 –13.00 Fee: €250 non members €150 members
■ NEW SCAFFOLD BOARD INSPECTION The Scaffold Board Inspection course is run over a half day to aid those responsible on site for the verification of safe scaffold standards on site. Venue: CIF Construction House, Dublin 6 Date: 25th February 2015 Time: 08.30 –13.00 Fee: €250 non members €150 members
■ NEW CIF BUILDING REGUALTIONS FETAC LEVEL 6 CERTIFICATE The CIF FETAC Level 6 Building Regulations Programme will run over 10 days delivering a practical and technically in-depth programme which will enable the participant to have a strong working knowledge of the building regulations, technical guidance documents and the Building Control Regulations. The programme will enable the participant to understand and adhere to the Building Control Regulations and to fully appreciate the process for certification of compliance. This programme will enable the participant to understand the obligations pertaining to the practical application of the building regulations as well as the potential changes pending from the Department of Environment. This CIF QQI Level 6 Building Regulations Programme also offers selective modules for Continuing Professional Development (CPD), which will be certified by CIF on a modular basis. Participants must attend all modules and have completed the assessment process to receive the QQI Level 6 award.
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The CIF FETAC Level 6 Building Regulations Programme course fee for the full FETAC Level 6 programme is €1,200 for CIF members and for non CIF members €1,650. Individual modules for Continuing Professional Development (CPD) are priced at €120 per person per day’s attendance for CIF members and for non CIF members €165 per person per day’s attendance. Venue: CIF Construction House, Canal Road, Dublin 6 Time: 08.30 to 17.00 Daily Fees: Option 1: FETAC Level 6 10 day €1650 non members €1220 members Option 2: Individual modules fee per day: €165 per day non members €120 per day members CIF QQI Building Control course Legislation 1 CSE 1 Thursday 22nd January 2015 CIF QQI Building Control course Legislation 2 CSE 1 Thursday 22nd January 2015 CIF QQI Building Control course -Legislation 3/Code of Practice/Contractors CSE 1 Friday 23rd January 2015 CIF QQI Building Control course -Part D Materials and Workmanship CSE 1 Friday 23rd January 2015 CIF QQI Building Control course - Part A & Part C - Subsoils + Substructures [1] CSE 1 Thursday 5th February 2015 CIF QQI Building Control course - Part A & Part C - Subsoils + Substructures [2] CSE 1 Friday 6th February 2015 CIF QQI Building Control course -Part B & Part J - Fire Safety [1] CSE 1 Friday 19th February 2015 CIF QQI Building Control course -Part B & Part J - Fire Safety [2] CSE 1 Friday 20th February 2015 CIF Construction House, CIF QQI Building Control course-Part F & Part L - Ventilation & Conservation [1] CSE 1 Thursday 5th March 2015 CIF QQI Building Control course -Part F & Part L - Ventilation & Conservation [2] CSE 1 Friday 6th March 2015 Building Control course -Part E - Sound CSE 1 Thursday 19th March 2015 Building Control course -Part G & Part H Hygiene and Drainage CSE 1 Thursday 19th March 2015 Building Control course -Part K & Part M -
Stairways and Access CSE 1 Friday 20th March 2015 Building Control course - final revision and examination CSE 1 Friday 20th March 2015
■ CONSTRUCTION BUSINESS MANAGEMENT & LEADERSHIP PROGRAMME Programme overview: The programme is designed for those who are responsible for managing businesses in the construction sector, with a particular emphasis on sole traders and companies with less than 20 employees. It creates a constructive environment of progressive learning and networking opportunities, including time for participants to work on business development plans for their own business. The programme is 8 classroom days spread over a 12 week period to allow for assignment and project work between classes. Accreditation for the programme is FETAC Level 6 minor award in Entrepreneurship. The programme requires a minimum of 20 to a maximum of 25 participants. Guest speakers from the sector are invited in during the programme to speak on how they developed their business. 1. Introduction to Business Management: · Tradesperson or business owner? · Challenges in managing & growing a small business · Growth & diversification 2. Business Planning for your Business Environment: · Challenge of a changing business environment · What is strategy? · Why write a business plan? · Business environment analysis tools - what they are and how to use them · Identifying and implementing a sustainable business model 3. Risk Management: · Understanding & assessing risks & Key Performance Indicators (KPI’s) · Dealing with risk · Compiling a risk register · Risk & your business plan 4. Leadership & Communication: · Effective verbal and non-verbal communication · Introducing new ideas effectively · Building political skill · Effective selling · Understanding and influencing group dynamics 5. Corporate Governance & Legal Issues: · What is Corporate Governance? · How does it operate in practice? · Pros and cons of company structures
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TRAINING · Roles & responsibilities of directors/owners/ managers · What you need to know of governance as a business manager 6. Opportunity, Recognition & Assessment: · Understanding the marketplace · Market led thinking versus production led thinking · Using the Business Model Canvas to examine the elements of the business and seek opportunities 7. Project Management: · What is Project Management? · Identify stakeholders & stakeholders needs · Apply methods, tools and techniques for planning, monitoring and controlling · Project leadership techniques 8. Leadership & Management: · What is leadership? What is management? · Differences between leadership & management · Theories & Styles of leadership & management within organisations
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· Aligning your strategic goals with your leadership & management skills 9. Marketing Management: · What is marketing? · Identifying your market and your customer · Market segmentation · The marketing mix 10. Financial Management, Funding Models & Revenue Requirements: · Accounts for business · Overview of Revenue requirements · Cash flow · Benchmarking & valuing business performance · Pricing 11. How to Write a Successful Tender: · What is a tender? · Why is a tender the preferred method of State agencies? · What are the common “mistakes” in preparing a tender? · Characteristics of an effective tender and how to prepare one
12. Sustaining & Growing Your Business: · Managing the now and planning for the future · Sources of funding · Prospects and opportunities for the construction sector · The innovation process described. 13. Presentation Skills & Preparation for Skills Demonstration: · Who you are? · What you do? · The problem you solve · Practice your business plan pitch 14. Skills Demonstration & Certificate Ceremony www.CIF.ie - www.ryanacademy.ie
05/12/2014 07:32
High-tech will bring big cost benefit The benefits that technology will bring to current and future generations of plant buyers will be reflected in extra productivity, greater economy and higher levels of operational safety sufficient to deliver increased profit and offset the higher purchase costs involved, Komatsu distributor Michael McHale, Managing Director of McHale Plant Sales, has predicted. Citing Komatsu’s factory-fitted ‘i in the sky’ intelligent control and guidance technology as one example of the high-spec goodies now becoming standard features on modern machines, McHale said “the pay-off that owners can expect from these new systems will more than reward them for the higher purchase price they may have to pay”. “Typical of these will be the ability to allow less qualified drivers fill in when skilled operatives are ill or unavailable, without sacrificing quality or productivity,” he said. “Stroke-sensing hydraulics that control bucket positioning and remove the worry of digging too deep or damaging a target surface are already a reality as are inertial measuring devices that deliver precise machine orientation and angle monitoring.” Other benefits that technology will deliver include consistent accuracy when rough digging
Komatsu’s new PC210LCi intelligent machine control excavator
and automatic single pass grading while staking, surveying and final inspection can be reduced or eliminated. Predicting a future when it could be a ‘condition’ that equipment coming on site is fitted with machine control systems, McHale observed that “the day is not far away when touch screen skills will be the first qualification on an operator’s can do list”.
As if to underline his belief, Michael McHale also pointed to the fact that, currently, Komatsu is devoting some 3.5% of turnover to R&D spending with some 3,500 engineers employed in the development of new technologies. Moreover, he said, proof of the value that this has in global terms is seen in Komatsu’s selection on the Dow Jones Sustainability World Indices for the second year running.
Q Mark: constructing the future Ireland is poised to embrace a bright new future. The engineering and construction industries have proven durable during difficult times and are now leading the way towards a more prosperous period of sustainable growth. Recent research carried out by recruitment expert Hays and Engineers Ireland demonstrates this resilience. Hays reported a 93% increase in the number of construction jobs on offer in the first six months of 2014, as against the same period in 2013. Looking to the future, John Power, Chartered Engineer and Director General of Engineers Ireland said: “According to the recent ESRI figures, we need 90,000 more homes over the next seven years or 12,500 additional houses per annum up to 2021. There will also be a significant demand for commercial property in the years ahead.” These figures suggest a very positive outlook but this should not come as any surprise. Engineering and construction are essential components of any successful economy and
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there is always a market for skilled operators in these areas. Engineering and construction are all about building, whether that’s building homes, building infrastructure or building a better future. In the current climate of renewed optimism and growth, building consumer confidence in the industry is the next logical step, a process certain industry leaders such as Roadbridge, Kirby Group Engineering, and John Somers Construction Limited have already embraced. The Q Mark is external recognition that companies are achieving new heights of business excellence and becoming innovators in their industry. As engineers, they build new business paths that others may follow. They set new benchmarks that change the current acceptable standards of today into the superb best-practice of tomorrow. And as this year’s national title winners of Best Quality Management System in Ireland,
Roadbridge currently leads where others will follow. In engineering and construction, where health and safety must always be prioritised, the Q Mark standard can offer more than good publicity and improved efficiency. The Q Mark framework provides an organisation with the ability to monitor 100% of their processes and procedures 100% of the time, thereby ensuring that the company maximises the effort expended to receive maximum results. Many other industries have already fully embraced the Q Mark standard, recognising that the benefits and advantages accrued from such an association are simply too good to miss. The construction and engineering industries have long been at the forefront of the Irish economic effort and the Q Mark offers a means of ensuring that this continues to be the case.
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INDUSTRY NEWS Eoin Vaughan appointed Managing Director of Mercury Holdings Mercury Holdings has announced that Eoin Vaughan is the new Managing Director of the group. Mercury headquartered in Sandyford, Dublin has operations in Ireland, UK, mainland Europe and Russia. It employs approximately 2,500 people and works in the pharma, data centre, semiconductor, healthcare, oil & gas and building services sectors. While primarily working with blue chip multinational companies it has also been involved in many high profile building projects worldwide, including Terminal 2 at Dublin Airport, the National Conference Centre, Tate Modern Upgrade in London, Rondo Tower in Warsaw, Bloomberg Offices in Moscow and the Museum of Islamic Art in Doha, Qatar. Mr Vaughan has worked in Mercury for ten years and in that time he has held a number of senior management roles in both the domestic and international business units. Mr Vaughan’s primary qualification is in mechanical engineering from CIT. He has a post graduate diploma in project management from UL, an MBA from the University of Manchester and recently completed a leadership programme in Harvard Business School. Before joining Mercury,
€1.47bn worth of residential construction
he worked with Project Management Group and Diamond Engineering in various construction management related roles. The Chairman of the Board of Mercury, Declan Doyle said Mr Vaughan was extremely well qualified to lead the company into the future. “Eoin has been with the company for 10 years and has the skills, experience and knowledge required to lead Mercury as the company continues to expand its operations in Ireland, the UK and throughout Europe. Mercury has set the benchmark for excellence as a world class multidisciplinary engineering contractor on an array of profitable flagship projects all over Europe. I am confident that Eoin will build on this track record of success and provide the strong leadership necessary to continue the company’s 40 year history of growth.”
Over €1.47bn worth of residential construction on multi-unit developments was commenced in Ireland during the first nine months of 2014 according to Irish based consultancy Link2Plans. Analysis from Link2Plans show that in the period from January through to the end of September 2014 a total of 264 multi-unit development projects were commenced, which when completed will result in a total of 6,388 residential units. These multi-unit residential projects are now under construction contributing to the growth in the sector that is being felt in terms of employment, activity levels and sentiment. The information is contained in the Residential Developments Report from Link2Plans and it provides a breakdown by quarter of the multi-unit residential projects that have commenced construction. Every project that has commenced construction as per the planning regulations and has two or more units is included in this report. Units included in the 6,388 total comprise detached, terraced and semi-detached houses, duplexes and apartments. It excludes one-off houses, self-build and housing extensions.
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ESS Safeforce setting industry standards in health and safety training ESS Safeforce, specialist suppliers of site safety, survey and communications equipment, has opened a new dedicated training centre at their existing sales and hire site in Clane, Kildare. The new centre, designed to help raise standards in health and safety training across a wide range of industries, will offer one, or two-day accredited training courses. These courses have been specifically designed for businesses and individuals working in hazardous environments within the construction industry, water and waste water plants and asbestos removal, plus a range of industrial environments, from routine inspections to working in potential oxygen depletion environments. Companies will also have the option to request bespoke courses to meet more specific requirements. Both the one and two-day course will include classroom based workshops providing delegates with the awareness and understanding of risks and associated hazards and the understanding of equipment needed to perform safe access and egress regarding confined spaces, and in the CS2 course rescue procedures using breathing apparatus are covered. The new centre also benefits from a purpose built, confined space training facility, to provide simulated live rescue scenarios.
Liam Brew, General Manger said: “Our recently opened confined space centre has been purpose built to the highest industry standards. At our centre in Clane we also carry a full range of equipment that is relevant to the training being carried out. Feedback from the contractors that have already been trained by us is extremely positive on both the relevance of the classroom content, and the “real life” feel of the simulated manhole environment. We would also like to thank the members of the Kildare football team who came along to our open day to join their teammate Eoghan O’Flaherty who is based with us at Clane to try out the training run and support our launch.” The company which also has a site in Lisburn in Northern Ireland, offers for sale and hire the most extensive and up–to-date range of safety equipment available, including fall arrest systems, gas detection monitors, breathing apparatus and general safety equipment, together with equipment for site surveying, environmental inspection, working at height and communication plus their ‘total solutions’ safety package, specifically designed for working within confined spaces and hazardous environments. CONSTRUCTION ■ November/December 2014
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BAU trade show sold out BAU, one of the largest construction trade shows in the world, takes place from January 19th to 24th, 2015 at the Messe München exhibition centre. Around 2,000 exhibitors from more than 40 countries and over 235,000 visitors from all around the world are expected to attend. On display at BAU over 180,000 square meters of exhibition space will be architectural solutions, materials and systems for commercial and residential construction and interiors, for both new-build and renovation/ modernisation. “Every two years this event brings together market leaders from the sector to participate in a unique international display of competence spanning all the construction trades,” say the organisers. BAU is also the world´s largest trade fair for architects and construction engineers, attracting more than 60,000 design professionals. The exhibits at the fair are organized according to building material and also product and theme areas. For more information visit www. bau-muenchen.com
Saint-Gobain building skills academy to train 25,000 workers over five years Claude Imauven, Senior Vice-President Saint-Gobain, Brian Dolan, Managing Director for the Saint-Gobain building materials businesses in Ireland and Alex White, Minister for Communications, Energy and Natural Resources.
Saint-Gobain, the building materials multinational, has announced a new construction skills academy for Dublin that will train 25,000 new construction workers over the next five years. Speaking at the announcement Brian Dolan, Managing Director for the Saint-Gobain building materials businesses in Ireland said: “This is a red letter day for construction
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in Ireland as it marks the most significant investment in education and training in the industry since the crash of 2008. We want to replace the ‘lost generation’ of construction workers who have left Ireland or the industry over the last six years. “There is a massive shortage of skilled workers in the construction industry, which is a key factor in the lack of housing supply.
We are opening this skills academy as a vote of confidence in the Irish building industry, which will triple housing output by 2020,” he added. The state-of-the-art training facility is situated near Lucan, Dublin and will train all of the key construction professionals including builders, architects and tradespeople. Courses will cover a wide range of topics from practical site installation courses to building physics and building regulations courses. The Saint-Gobain Technical Academy was officially opened by Minister for Energy Alex White, who said: “We need a workforce that is highly skilled and appropriately qualified. This applies not just to construction workers but also to architects, engineers and other construction professionals. Achieving the goal of an energy efficient building, is no longer someone else’s job. It should be the job of everyone on a site.”
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INDUSTRY NEWS Construction vital part of Northern Line London extension €1.4bn Austrian trade
(l-r) Charles Flanagan, Minister for Foreign Affairs and Trade, Wilhelm Nest, Advantage Austria, Dublin, President Dr Heinz Fischer, Gabriele Heinisch-Hosek, Austrian Minister for Education and Richard Schenz, Vice-President Austrian Federal Economic Chamber
The Austrian President Dr Heinz Fischer and Minister for Foreign Affairs and Trade Charles Flanagan TD addressed the recent Irish Austrian Business Forum held in Dublin. Speakers from the Austrian Federal Economic Chamber, Enterprise Ireland and IBEC discussed doing business between Ireland and Austria in front of 200 invited guests. A showcase of urban technologies featuring smart cities, sustainable building, mobility, environmental technologies and renewables was a focal point of the day. A speaker from Smart City Vienna also presented the vision for the city that consistently tops the rankings for the best quality of life in the world. “Total trade between Ireland and Austria amounted to €1.4 bn in 2013, an increase of 13.8%,” said Wilhelm Nest, Head of Advantage Austria Dublin. You can see Austrian footprints all over Ireland, even if you don’t know they’re Austrian, such as: • The iconic glass and steel facade of the Convention Centre Dublin, thanks to Waagner-Biro in Vienna • 18,000 low energy traffic lights installed by Swarco Futurit and an advanced traffic monitoring sytem at Galway County Council. • The motorway tunnel under the River Shannon, which was built by a consortium consisting of John Sisk and Strabag. • The Google Link Bridge at Google’s European Headquarters in Dublin by GIG Fassadenbau • The Terminal 2 duty-free zone at Dublin Airport,
fitted out by Umdasch Shopfitting. Umdasch also counts Brown Thomas and Elverys among its customers. • The points system and tracks for the LUAS installed by Voest Alpine Stahl. • The heat pumps widely used in hotels, horticulture, swimming pools, churches, schools, manufacturing, on farms and in homes from Ochsner Ireland. Austrian companies also supply critically important chemicals to the pharmaceutical industry and electronic components to the IT and Medtech sectors. On the consumer side, Red Bull and Swarovski Austria’s two best known brands around the world. Almost 200 Austrian companies are called “hidden champions”. They dominate very specific market niches but are almost unknown to the wider public. As guest of honour, President of Austria Heinz Fischer also referred to the key factors that make the Austrian economy strong: “Technical expertise, partly due to the industrial training of our young people in up to 350 occupations, and strong social partnership, which helps us steer our economy and maintain economic stability”. Advantage Austria represents the interests of the 440,000 member companies of the Austrian Federal Economic Chamber. It operates a network of 110 offices in over 70 countries. The Dublin office was established in 1967.
The construction industry in London and the South of England has a positive future, says Richard Threlfall, Head of Infrastructure, Building and Construction at KPMG UK. He has noted that for the “first time in many generations the UK has a strong pipeline of construction and infrastructure projects to reinvigorate the economy and drive our future competitiveness”. Boris Johnson, the Mayor of London, has highlighted 33 key development areas across the city. Coupled with improving transport links such as Crossrail and Thameslink, the London construction market can be expected to grow significantly in the next few years. The recent announcement of an extension of the Northern Line to Battersea and Nine Elms is a huge project, which will bring thousands of new homes and jobs to the Wandsworth area. This will also relieve pressure on the local transport network, which, given there are expected to be a further 24,000 jobs coming to the area, is very welcome news. The project is anticipated to come in at a cost of £1bn, funded by developments in the area. This extension will give Nine Elms Zone One status and relieve pressure of the local transport network in Wandsworth. This news comes on the back of the recent announcement that £1.35bn of funding had been secured to continue the the £8bn transformation of Battersea.
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For your diary An aerial image of the Kerry Foods plant in Naas, taken during November 2013 as the enabling works were being carried out by John Cradock Ltd.
Tuesday 13th January
Tuesday 14th April
Tuesday 1st September
Executive Body meeting construction House, Dublin, 11am contact: Gillian Heffernan 01 406 6016
Executive Body meeting construction House, Dublin, 11am contact: Gillian Heffernan 01 406 6016
Executive Body meeting construction House, Dublin, 11am contact: Gillian Heffernan 01 406 6016
Wednesday 28th January
Tuesday 26th May
Tuesday 13th October
Microsoft Office 365 and Cloud Assist Microsoft Building, south county Business Park, Leopardstown, 8am contact: Deirdre@cloudassist.ie
Executive Body meeting construction House, Dublin, 11am contact: Gillian Heffernan 01 406 6016
Executive Body meeting construction House, Dublin, 11am contact: Gillian Heffernan 01 406 6016
Tuesday 7th July
Tuesday 24th November
Tuesday 24th February
Executive Body meeting construction House, Dublin, 11am contact: Gillian Heffernan 01 406 6016
Executive Body meeting (AGM 12.45pm) construction House, Dublin, 11am contact: Gillian Heffernan 01 406 6016
Executive Body meeting construction House, Dublin, 11am contact: Gillian Heffernan 01 406 6016
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construction â– November/December 2014
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