Construction January/February 2015 by Foundation Media

CONSTRUCTION THE OFFICIAL MAGAZINE OF THE CONSTRUCTION INDUSTRY FEDERATION JANUARY/FEBRUARY 2015

RETURN OF THE CRANE? INDUSTRY HOPES FOR 2015

✚ BUILDING REGS ONE YEAR ON ✚ CORK CONFERENCE ✚ REVENUE BRIEFING ✚ PLANNING BILL ✚ SITE SECURITY January/February 2015 CONSTRUCTION 22

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EDITORIAL

n this month’s Construction the findingss of the Department of Public Enterprise & Reform review of the Pubic Works contracts is broadly welcomed by the industry.The news (page 5) that its interim recommendations are to be implemented by the summer is an added boost to a sector that has campaigned over the past five years for an easing of the contractor’s burden. Elsewhere in this issue we take an in-depth look at the amended building regs introduced one year ago (page 19) while our cover story (page 12) talks to industry professionals about their hopes for the coming year. The mood appears generally positive but caution remains the watchword. There is also an illuminating insight into the work of Revenue written by CIF Head of Finance and Accounting Gabriel MacGrath (page 46) that underlines the

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CONSTRUCTION INDUSTRY FEDERATION

Editor: Brian Foley Email: brian@ foundationmedia.ie

Construction House, 8 Montpellier Terrace, The Crescent, Galway. Tel: 091 502680 Fax: 091 584575 Email: cifgalway@cif.ie

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Construction House, Canal Road, Dublin 6. Tel: 01 4066000 Fax: 01 4966953 Email: cif@cif.ie

Construction House, 4 Eastgate Avenue, Little Island, Cork. Tel: 021 4351410 Fax: 021 4351416 Email: cifcork@cif.ie PRESIDENT: Michael Stone DIRECTOR GENERAL: Tom Parlon CHIEF OPERATIONS OFFICER: George Hennessy DIRECTOR / EXECUTIVE TEAM HOUSING & PLANNING: Hubert Fitzpatrick, Noel O’Connor, Jeanette Mair

need for all in the construction sector to be on top of their tax affairs. Finally, I hope by now you have noticed that Construction has undergone an overhaul and redesign of its pages, intended to make reading the magazine a more enjoyable experience. New features such as Project of the Month and CIF Member Profile, a focus on innovation and new ideas for the industry have been introduced to help reflect a new dawn for construction in Ireland. We’re also launching a new website in March, which will serve our readers with daily construction-related news. As the industry gears up for busier times Construction, both in print and online, will remain the most comprehensive news source for the sector. C Brian Foley, Editor

MAIN CONTRACTING: Martin Lang, Alison Irving SPECIALIST CONTRACTING: Sean Downey, Gillian Ross INDUSTRIAL RELATIONS & EMPLOYMENT SERVICES: Jean Winters, Cheryl Treanor EASTERN REGION: Hubert Fitzpatrick, Noel O’Connor SOUTHERN REGION: Joe O’Brien, Conor O’Connell WESTERN / MIDLAND REGION: Joe O’Brien, Justin Molloy SAFETY & MANPOWER SERVICES: Dermot Carey LEARNING & DEVELOPMENT: Robert Butler, Laura Dennison MEMBERSHIP: Renee McManus FINANCE / ACCOUNTS: Gabriel MacGrath COMMUNICATIONS & MARKETING: Jimmy Healy

AFFINITY SCHEMES Safe T Cert Dermot Carey Affinity Cover Joe O’Brien, Justin Molloy, Gillian Heffernan CQAI Robert Butler Register of Heritage Contractors Jeanette Mair Imagine Renee McManus FNM Digital: Jimmy Healy CERS: Frances McNally Tel: 01- 407 1434 Email: info@cers.ie MILESTONE ADVISORY: Susan O’Mara Tel: 01- 406 8021 Email: info@milestoneadvisory.ie CWPS: Brigid Finn Tel: 01- 406 8025 Email: info@cwps.ie

CIRI CIRI OFFICE: Jeanette Mair CIRI CPD OFFICE: Robert Butler

January/February 2015 CONSTRUCTION 01

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Mechanical

Electrical

Fire Protection

Instrumentation |

BioEnergy

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COVER STORY HOW WILL 2015 SHAPE UP?

CONSTRUCTION

CONTENTS

CIF NEWS

CONSTRUCTION CONTRACTS ACT

Seanna Mulrean writes about adjudication

FM IRELAND

Facilities Management conference

CQMS15

REVENUE REPORT

Irelandâ&#x20AC;&#x2122;s largest machinery show

CORK CONFERENCE

Gabriel MacGrath on the Revenue audit

Report from CIF Cork event

SITE SECURITY

Construction sites targeted

CONTRACTS LAW

Martin Lang on conditions precedent

SILT CONTROL

Latest management measures

TRAINING

All the CIF courses

INDUSTRY NEWS

Stories from wider construction sector

DIARY

CIF meetings and events

LAST FIX

Numbers, stats, facts & figures

Planning, GCCC, PBAs

SAFETY FIRST

Construction fatalities fall

BUILDING REGS REVISITED

One year on we ask the experts

TENDERING

Alison Irving on tendering issues

PROJECT OF THE MONTH

John Paul at the National Gallery

PENSIONS UPDATE

Lessons learned since financial crisis

LEAN CONSTRUCTION

News from latest events

CIF MEMBER PROFILE

Peter Walsh in Galway

CWHT

Threat to Health Trust

JANUARY/FEBRUARY 2015

28 32 37 January/February 2015 CONSTRUCTION 03

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“I’m delighted to announce this new, unique insurance package – which is exclusively available to CIF members – and replaces our previous arrangements of Contractors Cover. It is tailor made to suit the requirements of those operating in the construction industry and we believe it will be of strong interest to our members.” Tom Parlon, CIF Director General

Range of products available include: Combined Liability – Bespoke policy wordings, with Lloyds Insurers Contractors All Risks Construction Plant and Machinery Insurance New Plant/Machinery insurance agreement with Fingal Insurance Group Ltd (underwritten by Aviva) to provide discounted rates to CIF members. Please note cover includes each or all of the following: 1) Third Party R.T.A. cover 2) Accidental Damage 3) Inspection for all construction Plant/Machinery. Professional Indemnity Scheme exclusive to CIRI members

House Builders – Special insurance cost per house option Bonds – Development and performance bonds First Recovery Emergency disaster recovery service: Business Recovery Information Online / Emergency Disaster Recovery / Professional Fees

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

Motor Fleet New Motor Insurance Agreement with Asgard (through willis) to Provide Discounted Rates for CIF Members

> CIF Galway Tel: 091 502680 Fax: 091 584575 Email: cifgalway@cif.ie

AffinityCover is designed to be purchased through your Insurance broker. For further information please contact your insurance broker or see www.cif.ie/affinitycover

Alternatively you can contact AffinityCover direct at affinitycover@cib.ie, or phone 01 4068190

A team of professionals who understand the special needs of the construction market

Affinity Cover is arranged exclusively for members of the Construction Industry Federation and also available to CIRI members by Capital Cover with various international insurers. Housing Construction Insurance Brokers Ltd t/a Capital Insurance Brokers and Capitalcover is regulated by the Central Bank of Ireland.

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CIF NEWS CIF past President Philip Crampton

GCCC review represents “huge progress”

he somewhat long-winded name - ‘Report on the Review of the Performance of the Public Works Contracts’ – belied the simple fact contained within its pages, namely that, in the words of the CIF Director General, it “represents huge progress”. According to Tom Parlon the report is a “very positive outcome” for the industry. The Department of Public Expenditure and Reform published the report prior to Christmas with four main interim recommendations, which are: • Make the bill of quantities the primary reference document for the pricing of public works tenders for projects designed by the contracting authority. • Introduce a separate tender and subcontract for specialist works contractors. • Require all projects with a value in excess of €2m

to be awarded on the basis of Most Economically Advantageous Tender (MEAT) with a significant weighting for quality. • Overhaul the dispute resolution procedures for all public works contracts. The Department says the majority of the measures outlined in the report will be implemented by the summer. Philip Crampton, who served as CIF President during the consultation process leading up to the final report, was singled out by the Director General. “All those involved in the review process deserve considerable praise for the work they have done to date in achieving this outcome - particularly Philip Crampton,” he said.

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CIF calls for abolition of Part V

Apprentice numbers on the increase as skills shortage bites

he number of new construction apprentices rose by 660 in 2014, with over 2,100 new apprenticeship registrations taking place last year according to figures published by the Construction Industry Federation. The CIF has described the latest statistics as a positive trend but warned that more apprenticeships will have to be registered in 2015 if the industry is to meet the expected demand for skills in the coming years. The big increases were in electrical, carpentry and plumbing apprenticeships. The number of new electrical apprentices grew by 323 or 62% to 845 in 2014. Carpentry apprenticeships grew by 87% to 185, an increase of 86 and plumbing experienced an increase of 77 apprentices growing by 32% to 318. The only construction apprenticeship to experience a decrease was tool making, which dropped by 15 apprentices to 66 in 2014, a fall of 19%. “It is good to see the number of people entering into apprenticeships is on the

increase,” said CIF Director General Tom Parlon. “However the industry will need to see that increase continue in 2015 and beyond if we are to meet the expected demand for construction activity in the coming years. “There have been too few people beginning construction apprenticeships and learning valuable construction skills in recent years. This is a particularly negative impact of the downturn and one that could have significant implications for the future of the industry if it is not tackled now. It is true that there are still large numbers of unemployed former construction workers who are currently filling positions as they become available. However if we do not start increasing the talent pool for these important skills then we will run into problems within the next few years. “The CIF is encouraging all the larger construction companies in Ireland to start taking on apprentices again. We need to future proof our industry from a problem that we can already see developing and the industry has to play its part in tackling that problem,” said the CIF Director General.

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s part of its submission to the Oireachtas Joint Committee on the Planning and Development Bill, the CIF has called for the abolition of Part V and has welcomed the proposed reduction in development contributions for planning permissions yet to be activated. In the submission, CIF Director for Housing & Planning, Hubert Fitzpatrick, said the construction industry has long called for the abolition of Part V in its current format. “The industry has advocated for its replacement with a 1% contribution by the seller in respect of every residential unit sold, both new and existing. “If a 1% contribution had applied in 2013, this would have yielded €61m for the Exchequer which could have been used as seed capital to fund social housing programmes and could be leveraged by the voluntary housing sector.” The proposals to reduce development contributions for planning permissions yet to be activated “are welcomed by the industry”. “This has the effect of reducing the bureaucracy associated with making new planning applications in order to get the benefit of reduced development contributions which have been adopted by local authorities.” According to the CIF Director there must be flexibility in terms of facilitating the payment of development contributions as revenue streams become available from the transactions of new development works. The CIF is also calling for a simplified ‘taking in charge process’ as a more streamlined process for changing planning approvals for house types approved in previous planning permissions.

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Number of ‘pilot’ Public Bank Account projects to be launched (left-right) Colm O’Regan, comedian and host, Donal O’Brien, Chairman of the CERS Trustee Board (centre) receiving the ‘Best Use of Investment Strategy Award’ at the Irish Pension Awards with John Wood, Managing Director of European Pensions magazine.

Award-winning pension schemes

t the recent IPE Awards in Vienna, the Construction Workers’ Pension Scheme (CWPS) won Best Pension Fund in Ireland and at the Irish Pensions Awards held in Dublin the Construction Executive Retirement Savings (CERS) won the Best Use of Investment Strategy Award. Kevin Walsh, Head of CIF Pensions Administration Services (CPAS) who administer both schemes commented: “These awards are a great endorsement of the quality of the pension schemes and the service given to members of the construction industry. We are delighted for the recognition this gives to the efforts of our staff and the trustees of each scheme, in delivering a first class pension solution to members and employers.” Commenting on the recent win at the IPE Awards in Vienna of the Construction Workers’ Pension Scheme for Best Pension Fund in Ireland, the Chairman of the CWPS Trustee Board, Andy O’Gorman said he was delighted that the pension fund had won such a prestigious award. He said he would like to congratulate everyone involved in the running of the scheme including the CPAS administration team, all the scheme advisors and the trustee board. Donal O’Brien, Chairman of the CERS Trustee Board said the Trustee of Construction Executive Retirement

Savings (CERS) are delighted to be among the winners at the Irish Pension Awards and to receive the award for ‘Best use of Investment Strategy’. “It is particularly pleasing for the members of the Investment Sub Committee and for the investment advisor Appian Asset Management who have worked diligently together for the past number of years to manage members investments in a productive but prudent way and to have this recognised by their peers. I congratulate all those involved,” Mr O’Brien said.

Andy O’Gorman, Chairman of the CWPS Trustee Board, receives the prize for ‘Best Pension Fund in Ireland’ at the recent IPE Awards in Vienna.

he Chief Procurement Officer, Paul Quinn, has stated his belief that the introduction of Public Bank Accounts (PBAs) will contribute to the more efficient delivery of large public works projects and may reduce the need to refer payment disputes to adjudication. In a letter to CIF Director General Tom Parlon, the head of the Office for Government Procurement says he intends to “undertake a pilot on a number of appropriate contracts to evaluate the procedures and adapt them on the basis of ‘lessons learned’”. As background Mr Quinn states that the introduction of PBAs is being considered “as part of a range of measures that are designed to bring greater stability in the delivery of public works”. PBAs are ring-fenced bank accounts whose sole purpose is to act as a channel for payment on construction projects to ensure that contractors, key subcontractors and key members of the supply chain are paid on the contractually agreed dates. The employer maintains adequate funds in the account to cover work in progress and other project commitments. Payments are made directly from the account to the contractor, key subcontractors and key suppliers in accordance with the payment arrangements agreed by those members of the project team who are party to the PBA. Since their launch in the UK seven years ago, Project Bank Accounts have been used on public sector contracts worth £2.5bn. In line with the Government Construction Strategy, the UK Government has confirmed Project Bank Accounts will be used on public sector projects “unless there are compelling reasons not to do so”. Project Bank Accounts in the UK are therefore quickly becoming standard in public sector procurement and their use might become just as widespread in private sector procurement in the not too distant future.

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New Central Bank regulations will slow recovery Jim Curley and Ger O’Leary at the recent M&ECA AGM

“Thankfully work volumes are increasing”

n his outgoing address as President of MEBSCA, Jim Curley spoke about the main issues affecting the sector. “One of the major issues that has affected us all and added to the instability that we face as we go about our daily business is the decision of the Supreme Court on the constitutionality of REAs. A new Heads of Bill was issued in October and in November the Federation was invited to attend a Joint Oireachtas Committee hearing where the views of the CIF including your Associations were made known. I understand and believe that during the course of 2015 we will have a new legislative instrument that will provide us with a frame work for a more level playing field and a more compliant industry. It can sometimes be difficult to see progress being made when the machinery of the State is involved but I believe that there is a realisation at official and Government level that the void created here needs to be sorted. At this stage I would like to acknowledge the work that Jean Winters has done for us in dealing and leading the whole area of industrial relations. We are the biggest direct employers and trainers in the construction industry. Our people are our most important resource and its very important that we have stability in this area so that we can service our clients, the organisations who create the need and the demand

for our services. Our sector leads the way with apprentice training. Registration of plumbers went from 241 in 2013 to 318 in 2014. Electrical registrations went from 522 in 2013 to 845 in 2014. We have been involved in a number of initiatives in the area of Lean including being founding members of the local ‘Community of Practise’ where we are represented by Sean Downey. Members of MEBSCA and M&ECA must support the incoming President and Chairman, as there is still lots to be done to get closure on the items that we have made progress on. More than ever members must step up to the plate to support Niall and Ger. While saying that I want to take this opportunity to recognise our past President Michael Stone, who has taken on the role of President of CIF and all that goes with that. Michael is and remains a selfless beacon for our industry. A sector that not only provides an acknowledged world class service to our clients but gives back more than any other section of construction to the communities within which we live by providing large scale direct, well paid, employment and training for our people. I understand that this is recognised at the highest levels including of Government where I firmly believe that this is one of the reasons for some of the changes to the public works contracts.”

he Central Bank’s new mortgage regulations will slow down the recovery in housing supply and have a strong impact on the building of new homes in urban areas, according to the Construction Industry Federation (CIF). The CIF also said that the measures will have a knock on impact on rent prices in cities such as Dublin. The Central Bank’s decision came after it received numerous submissions from interested parties about the proposed move, including a report from Grant Thornton – commissioned by the CIF and the Irish Homebuilders Association – which found that high costs of production was one of the main reasons for the low levels of house building. “The housing market is not complicated - where profits are available construction will occur,” says the Grant Thornton report. “The annual Government Budget is traditionally the mechanism used to deal with bottlenecks in supply, as currently exist in the Irish property market. Despite this the measures included in Budget 2015 are unlikely to address the fundamental issues that are hampering supply. “Ireland faces a situation where many young people are being excluded from the market due to a lack of availability or affordability. The proposals by the Central Bank, instead of creating stability, are likely to intensify the existing issues in the short term.” Under the new Central Bank plans, the majority of mortgages will require 10% deposits for loans up to €220,000 and 20% for any additional mortgage finance that exceeds that sum. “We are disappointed that the Central Bank felt the need to take these measures,” said CIF Director General Tom Parlon. “The increase in house prices is solely linked to the lack of supply at present. We are not building enough houses to meet the population requirements. This put an upward pressure on prices as competition increased for a relatively low supply. It’s simple economics.”

DATE FOR YOUR DIARY CONSTRUCTION FINANCING OPTIONS 4TH MARCH 2015, 8.30AM - 1PM MARKER HOTEL, DOCKLANDS, DUBLIN 2 The event is free, but as space is limited we recommend early registration. For more information contact Constructconfmarch15@ finance.gov.ie or hfitzpatrick@cif.ie

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SAFETY

FEWER CONSTRUCTION FATALITIES IN 2014

he construction sector recorded eight fatalities in 2014, down from 13 the previous year. In its report to the CIF Executive Body, the Safety and Health Sub Committee said the reduction in fatalities had to be placed in the context of three successive years of increases in construction related deaths. “In January 2014, the report from the Safety Committee indicated that 2013 had been the third year in a row that fatal accidents in the sector had increased,” it said. “In 2014, this consistent rise has been halted and the fatal accident numbers have fallen to eight. “Given the rise in numbers of workers in the sector (102,000 to 112,400 in November 2014), and this reduction, this will result in the accident rate dropping from 9.8 per 100,000 to 5.34.” Of the 6,395 non fatal accidents reported to the Health & Safety Authority, 420 were construction related, which represents seven per cent of the total. Figures released by the Health and Safety Authority show that there were 55 people killed in work related accidents last year, representing a 17% increase on the 47 reported in 2013. Martin O’Halloran, CEO of the HSA, said last year had the highest total number of workplace fatalities since 2008. “We are concerned at what is a significant increase in workplace fatalities and what is particularly alarming is that 54% of fatalities involved vehicles in the workplace. This is up 13% from the previous five year average for 2009 to 2013 of 41%. However if we exclude agriculture, the overall fatal accident trend is downwards.” In related news, the HSA recently published its Programme of Work for 2015, which gives details of its key goals and priorities for the year. The Authority intends to carry out 11,955 inspections and investigations during 2015, a marginal increase

Martin O’Halloran, Chief Executive of the Health and Safety Authority with Tom Parlon, CIF Director General and Eddie Kelly, Managing Director, Grafton Group

on the target of 11,520 for 2014. The inspections and investigations will cover a number of sectors, with the two high risk areas, construction (3,150) and agriculture (2,300), receiving the most inspections. There will also be 1,755 chemicals safety inspections. The Minister for Business and Employment, Gerald Nash TD, welcomed the increase in inspections planned by the Authority and said that securing the health and safety of workers is a key priority for him. “The creation of jobs has been a key goal of the Government but we must also ensure that our growing workforce is safe and secure in the workplace. I would encourage all employers and employees to work together to create a healthy and safe work environment. Clearly some sectors are performing better than others, but there must be a focus on helping all sectors, particularly the self-employed, to achieve high standards in this area. I believe that we can achieve this through improving awareness and changing risk-taking behaviours.” Martin O’Halloran said that the sectors that need the most support will be a priority. “We have to use our resources in a targeted manner and promote accident prevention rather than having an over-reliance on inspections and enforcement. However, it is sometimes necessary to tailor our approach depending on the willingness of particular sectors to take the preventative route.” Speaking about the type of resources that will be available, he says: “As part of our policy to provide support to small businesses in the high-risk sectors this year, we will add more online tools designed specifically for the construction and agriculture sectors.” Other key themes for the Authority this year will be; the safe management of chemicals, the continued development of legislation and codes of practice and representing Irish interests at EU level. Michael Horgan, Chairman of the Health and Safety Authority, says that this year will bring significant challenges. “One of our goals for 2015 is to ensure that any increase in employment doesn’t lead to an increase in accidents. Research shows that a new employees’ first six months in a job can be the time when they are most vulnerable and most likely to being injured at work. We will also be developing a new three year strategy that takes into account the changing landscape of Irish workplaces and emerging trends.” There will be a continuing focus on the education programme which has been designed to encourage learners, at all levels, to be aware of the health and safety aspects of work. Developments in e-learning will mean more freely available courses and resources. C

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COVER

RETURN OF THE CRANE? As confidence returns to the wider economy, unemplyment falls and Europe predicts Ireland to be one of the continent’s star perfomers in 2015, MARTIN FORAN asks a number of industry professionals for their hopes for the coming 12 months.

DOMINIC DOHENY, JOINT MANAGING DIRECTOR, JOHN FLANAGAN DEVELOPMENTS

“Construction is very much connected to the performance of the economy and as our GDP grows construction will grow as a percentage of that. That will bring new opportunities. At the moment the main epicentres are in the cities and the main driver is Dublin. That has percolated out to the Greater Dublin region but has stopped at that. A lot of CIF members would be hoping that it would reach further out this year. Looking at the main drivers, the biggest procurer is the State which is very active in the market across the country. After that it is the private sector – the investment community, FDI and indigenous manufacturing growth which is starting to happen and you can see investment by the dairy industry

and food-related organisations. Look at Greencore, Kerry Foods or Diageo – they are massive investors. So too is the likes of Tullamore Dew for example. Look also at Dairygold and Monaghan Coop, they are all investing heavily because of the lifting of milk quotas – they are prepping for that. Any development of a manufacturing facility involves construction. So that is all good for our members. However if you look at the investment community outside of the main cities, it is almost zero for green field development. There is nothing really happening while market values remain below replacement build cost. Existing investment stock is our main competitor at the moment and until that actually washes through the investor community we will not be looking at new builds albeit there are opportunities for retrofit work when new

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The view of the Dublin skyline from the crane at the John Paul Construction National Gallery project, February 2015. The view (inset) was different in 2008.

investors acquire existing stock. If you look at residential, that really follows the same pattern where the cities are the main hubs and Dublin is very active. It is very slow outside of that, except for one-offs. Residential rents in major towns are on the rise. This will ultimately lead to a rise in market values. The stock of vacant new residential units countrywide continues to fall while the surplus new residential stock is largely in areas where there is little demand. As market values rise throughout the regions, so too will the demand for new building activity. However, the recovery rate will not be uniform countrywide. It is however all going in the right direction though coming from a very low base. There is certainly more optimism

‘‘

THE RECOVERY RATE WILL NOT BE UNIFORM COUNTRYWIDE Dominic Doheny, Joint Managing Director, John Flanagan Developments

’’

around. I am also involved in the hotel industry and we can see it there. The confidence is back and all of the positive media coverage helps in changing peoples’ psyches. On a final note, I believe there has to be a state agency response to the demand that is going to be on the industry in relation to providing the training that will be required for the new face of the industry. In recent years, the intake of apprentices for training fell to an all time low. Thankfully, intake levels have improved for some trades over the past 12 months. However, there are in particular, major deficits in the intake for “wet trades” which must be corrected if we are to have the skilled workforce warranted for a recovering construction sector over the coming years.

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COVER

EDDIE KELLY, MANAGING DIRECTOR, GRAFTON MERCHANTING

Our view would be that there is a reasonably positive outlook. There is certainly a bit more confidence out there and we notice that in the branches. People are talking about having more work on and receiving more enquiries. We did enjoy a recovery last year ourselves and we are a reasonable barometer of the industry. We would have started to see what I would describe as a “mild recovery” from the beginning of last year though our branch network. With 40 outlets there are a lot of “listening posts” as it were. We are talking to people on a daily basis. No one would deny that the economy has still got some way to go before full health is reached but most people would agree that we are at least on the correct path and recovery is starting to be noticed. When recovery started to become more apparent it was a very mixed pattern. Dublin was where it started first and that is understandable. The capital city is an economic hub and there is more employment and spending power there. Things are always going to happen there first. There are others areas that are

Above: Dominc Doheny (right) chats with Hubert Fitzpatrick at the CIF AGM 2014

‘‘

WITH 40 OUTLETS THERE ARE A LOT OF ‘LISTENING POSTS’

’’

Eddie Kelly, Managing Director, Grafton Merchanting

challenged still. Looking forward this year I expect there will be growth and it will come about for a number of reasons. I don’t think anyone disagrees that there is a shortage of new housing in some areas. That is predominantly a Dublin story. Any recovery in housing is going to be noticeable in Dublin, probably Cork, Limerick, Galway and Waterford too on lower scales. However, for the rest of the country it is going to be some time before we see new sites opened up. The problem there is that the value of the property currently in those areas is below the cost of building new property. You are going to see an imbalance in that you will see demand for housing in the Dublin area and you won’t hear the same reports in the country areas. However we are likely to build more housing in 2015 than in 2014. In other areas of activity I think there is agreement that there’s an opportunity for office development primarily in the Dublin area where there’s a shortage of the most modern specification offices that people are requiring today. That should generate some activity as well.

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COVER I’d also be optimistic about the fact that there has been a significant amount of property that has been purchased as a result of being put on the market by various institutions. It has been purchased by investors at home and abroad. If property has been purchased that has been lying around for a while it is inevitable that some work will need to be done with it. That could create commercial RMI. I would feel there is opportunity there for the industry to gain some activity this year. We currently see some activity from the hotel sector and expect that will continue too. The one thing about hotels is they need maintenance and have to be upgraded and improved. Someone once said that the recession will be over when the consumer believes the recession is over. I think the consumer is starting to believe that now. We are seeing evidence of people spending money on improving and repairing their homes as well.

For us it is about and moving the space from purely “environment” to a societal base – a wider base. I think that is really important. If something good can be said to have some out of the recession it is that virtually everyone recognises the value of a high quality environment to the success of the smart economy and our competitiveness. We now completely understand that we are competing with other countries for investment and that a quality built environment will help us bring up our ranking. Also, a culture of compliance is now much more rooted than ever before. The culture of what we do as an industry is changing – and really for the better. Meanwhile, yes, there is optimism

Robin Mandal, President, RIAI

John Power (right) with Charlie McCreevy

ROBIN MANDAL, PRESIDENT, RIAI

There is definitely an increase in confidence amongst our members. Work is beginning to pick up though not uniformly spread. We did a recent survey of members and they are very optimistic for the future. More than half of practices are planning on employing more people. There are three parts of the chain that need to be in place as we see it. First, there is the infrastructural – the enablers, as it were. Second you have to have the finance. Third, the end-user. Without all of these three elements it doesn’t work and at the moment the finance part is still broken. Construction 2020 recognises that and they have put forward a couple of novel approaches for securing finance for projects and there is a recognition and moves afoot to try to get things moving. Our population is increasing at quite a rate and we need infrastructure. We strongly believe that we now have the opportunity to “get it right” for once and for all. We have learned quite a lot now – that goes right across the industry. Construction 2020 was very well received. For us, we see that it recognises the social and economic importance of the built environment. We now have a lot of contact with the Department of Jobs, Enterprise and Innovation because actually a lot of what we do is all about jobs enterprise and innovation.

‘‘

CONSTRUCTION 2020 WAS VERY WELL RECEIVED… IT RECOGNISES THE SOCIAL AND ECONOMIC IMPORTANCE OF THE BUILT ENVIRONMENT

’’

Robin Mandal, President, RIAI

coming back for our members though it is not uniformly spread. Where it is present, it is definitely palpable though. For the first time in a long time the jobs section of our website has jobs on it.

JOHN POWER, CHARTERED ENGINEER AND DIRECTOR GENERAL OF ENGINEERS IRELAND

Recovery in engineering fields related to construction is starting to gain momentum. However, evidence of the upturn has only started to filter through on the ground in the past five or six months, despite reports on economic growth and stability for over a year. Significant projects which are at design and funding stage include commercial property around the Grand Canal Basin area and the RDS stadium. The domestic property sector should begin to experience a lift with an increase in new builds, home refurbishment and activity planned for the social housing sector.

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The Government must accelerate infrastructural investment to boost job growth and support further economic development. Through the Engineers Ireland employment services facility we know that demand for engineers in the construction sector is increasing and a proportion of this can be attributed to the new building regulations. A very positive outcome of the revised regulations is the creation of more opportunities for chartered engineers due to the requirement for the assigned certifier and design certifier role. However, there is a skills shortage of civil engineers which is an issue in the short term and one that we are taking steps to manage. As a consequence of the downturn salaries and rates were lowered and remain low which is now, and will continue to be, a barrier to attracting talent into the sector. In the medium term, as funding is approved and projects are given the go ahead this in turn will have an upward effect on fees and earning potential. I believe the short term outlook is positive, albeit slow to progress and this is why we will continue to put pressure on the Government to increase investment in infrastructure.

RACHEL CLARKE, OPERATIONS DIRECTOR, M.J. CLARKE & SONS

To be honest, listening to politicians and the media, you could be forgiven for thinking the good times are back. Although we are busy, it is primarily working for commercial organisations who are reorganising their own businesses to reduce staff numbers – so closing down outlets and refurbishing existing premises. A lot of contractors are busy on NAMA projects – but when that comes to an end, what will be there to replace it? From an employment perspective, we are one of the few main contractors who actually employ tradesmen directly – which gives us an advantage over our competitors in terms of control over the quality of our work – but we are reluctant to increase our direct staff numbers regardless of business demand, due to the associated costs and future expense of making anyone redundant. Another big problem coming down the line is a lack of tradesmen due to the low apprentice numbers. The President of the CIF is pushing the industry to take on apprentices but, to be honest, it’s hard to see how that will work considering the changing staffing structure of the ‘main contractor’.

Keith Lowe, chief executive, DNG It’s hard to believe that tenders are still being awarded on the basis of lowest price despite the lessons of the “tiger” failures. Margins are still very, very tight.

JOHN O’SHAUGHNESSY, MBCA PRESIDENT AND MANAGING DIRECTOR OF CLANCY CONSTRUCTION

From Clancy Construction’s point of view we see an increase in output and there is certainly more work coming in – in both private and public sectors. We see our turnover increasing by about 25% in 2015 compared to 2014. Statistics from the Ulster Bank PMI index show that there has been a continuous increase in output for the past eighteen months or so and the general feeling out there is one of optimism. We definitely see the mood as positive. Order books for most contractors have increased over the last twelve to eighteen months and continue to do so. There is more work out there but it is remains very competitive. Things have come from a very low base too, so it is easy for output to increase. The output for 2014 was somewhere around €11bn and it is suggested, for an economy like Ireland’s, we need to be at around 12% of GNP or €16bn. Currently it’s just over 6%, so we have a long way to go and all predictions are that we won’t get there until maybe 2018-2020. One of the reasons is that the government’s Capital Budget has been cut from approximately €8bn in 2008 to €3.5bn. They have some other projects coming along however and the announcement by Government to invest €3.8bn in social housing up to 2020 to produce 35,000 units is welcome of course. The industry can certainly deliver but it depends on how it all comes on stream. Downsides as I see it include the input costs which are increasing and tender prices that remain very competitive. Input costs are increasing pressure and there is considerable pressure coming on wages, which are not being reflected in

tender pricing and they need to be. What we really need is a sustainable banking system funding companies that want to invest in their businesses which they haven’t done during the recession. When all that comes back into play we will be back at a sustainable level. Meanwhile, however, there is a lot going on which is positive.We have the Construction Contractors Act which is due to commence this year which is very positive. The Construction 2020 strategy, published by government in May 2014 is also good news, along with the revisions to the Public Works Contracts also due to be completed this year.

KEITH LOWE, CHIEF EXECUTIVE, DNG

Last year there were just over 11,000 new residential properties completed in Ireland of which 47% were one-off homes, 33% houses in schemes and 20% or 2,250 were apartments. In my opinion it is highly likely that virtually all of these apartment units formed part of partially-built schemes rather than actual new builds from foundation to completion as the majority of apartment developments in Ireland currently with permission are financially nonviable. I believe that it is also fair to assume that a significant number of the completed estate houses were also in part-built schemes. So the numbers of scheme houses actually constructed from scratch in 2014 was also very low. I do believe that output will improve, however, as many builders are financially constrained and/or rightfully cautious it will take some time for construction output to return to some level of normality. In addition a number of sites that have been recently sold still require planning permission or planning permission changes which could realistically take a year or more to achieve. On the basis of last year’s completions I am sure that there will be over 10,000 new homes completed this year again and I would expect that there will be sufficient demand for all those units. Last year approximately 40,000 residential properties were sold in Ireland and this figure includes a number of block sales and large scale portfolio transactions with 14,000 of the total sold in the capital. With this in mind, and whilst supply is very much needed, builders do need to take a measured approach in their expectations of sale volumes and reflect this in their construction and phasing as the property market is still in recovery mode with some way to go yet. C

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BUILDING REGULATIONS For “The new regime of building control does present challenges for all the parties to the project, but provided an ethical, professional approach is taken, none of the challenges should be insurmountable” - Cormac Bradley, Engineers Ireland

Against “The construction sector faces turmoil in which almost everything about building regulations will be decided in the courts, bringing more uncertainty, cost, delay and frustration” - Michael Collins, former President of the RIAI

S.I. No. 9 of 2014 – The Building Control (Amendment) Regulations. A year ago this was all but upon us. Affecting all projects irrespective of size, it’s no secret that there hasn’t exactly been widespread approval. We spoke to a cross-section of professionals to get their opinions and reaction.

WHAT’S ANOTHER YEAR?

‘‘I

mplementation of the new regulations is now settling down,” says Hubert Fitzpatrick, Director of Housing and Planning with the CIF. Fitzpatrick notes that in excess of 5,000 commencement notices have been lodged on the new Building Control Management System which “is being streamlined” on an ongoing basis. “While there is a cost for the builder in complying with the new oversight regime, the revised process will give much greater levels of confidence to the purchase /occupier of newly constructed properties that the requirements of the building regulations have been met,” he says. Experience over the past 12 months, says Fitzpatrick, has highlighted the necessity for all builders, main builders and subcontractors/specialists to familiarise themselves with the nature of certification now sought before commencement, during and after completion of building works. “This is bringing about a greater discipline in the ordering of construction materials/supplies, ensuring that the correct materials/ supplies are delivered to site, how the

construction takes place on site, and the requirement to have proper and appropriate construction drawings and specifications supplied prior to starting construction works,” he adds. “The requirement of the assigned certifier to inspect works and certify compliance is critical to the level of public confidence that now applies to construction of new buildings.” The industry has geared itself up for the new obligations, and is working proactively with the professional teams in ensuring that the new procedures are being adhered to, says Fitzpatrick. “The Federation continues to supply clarification to its members countrywide in relation to queries pertaining to the new system.” The ongoing requirement for training of builders and contractors in the building regulations area will continue to be addressed by the Federation, and updates are given to members on an ongoing basis. It is understood that a consultation process will take place in relation to the operation of the revised building control procedures. “The Federation will participate in

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BUILDING REGULATIONS

Cormac Bradley, Engineers Ireland this process as soon as it commences,” he says. Cormac Bradley represented Engineers Ireland in the consultation process. He says: “Engineers Ireland welcomed the announcement that the then Minister of the Environment, Phil Hogan made with respect to reviewing the Building Control Regulations and was pleased that the proposed consultation process would involve all the sector’s players as well as affording the general public an opportunity to contribute. “In recent years Engineers Ireland has been anxious to develop closer working ties with Government on issues that are pertinent to our membership. We saw this as a manifestation of our efforts in this regard.” From an internal perspective, Engineers Ireland was keen to see the role of the Chartered Engineer (C.Eng.) promoted within the engineering fraternity. “We saw the BC(A)R initiative as complementing this internal ambition,” says Bradley. Engineers Ireland has been very committed to the initial consultation process and the working groups set up to develop the S.I., the associated Code of Practice and the complementary ancillary certificates. It has hosted a number of formal CPD sessions to advise and educate practitioners in complying with the new regulations and most of the organisation’s regions have held evening sessions on the subject. “We accept that when the first working group was convened, the resources that would allow a more robust system of building control to be put in place were not available and the documentation that has been developed since that first working group meeting is as a consequence of this restriction,” says Bradley. “However, rather than decide that nothing could be done, Engineers Ireland

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along with its contemporaries, ACEI, CIF, RIAI, SCSI and the officials of the CCMA, Local Authorities and the DoECLG, committed themselves to putting in place the system that took effect on 1st March 2014. “Many have argued that an independent system of inspection should have been put in place but when this was not available, the alternative of a self-policing system was the next best option. “It is Engineers Ireland’s belief that selfpolicing, combined with the compliance with a Code of Ethics, should ensure that professionals acting in accordance with best and established practice, developed over many years, operating within their individual areas of expertise and competence should not be exposed to any greater risk under the BC(A)R regime of building control of post- 1st March 2014 than was the case before that date. “There is no doubt that the new regulations place an enhanced emphasis on proper communication and interaction with all the project parties to a building development – building owner, builder, assigned certifier, design certifier and ancillary certifiers (design and inspection) “But the tools by which this is achieved are no different post implemenatation, though the documentation that is required to confirm that it has happened is much

‘‘

(THE REGULATIONS) ARE ACKNOWLEDGED WIDELY NOW AS A POLITICAL SOLUTION TO A PRACTICAL PROBLEM, BC(A)R S.I.9 HAS BROUGHT US LEGAL UNCERTAINTY

’’

more important than was the case before. “It now has to be uploaded to the Building Control Management System (BCMS) to show compliance with undertakings given when the commence notice was lodged. “The new regime of building control does present challenges for all the parties to the project, but provided an ethical, professional approach is taken, none of the challenges should be insurmountable. “The critics of the system have suggested that the assigned certifier will be left as the “last man standing” answerable for all the flaws that others should be answerable for. “This is a fundamental misunderstanding of the system. The assigned certifier is not a ‘one man act’ independent of all the other project parties, quite the opposite, he is very reliant on all the other parties. “With a competent system of documentation in place, the assigned certifier should be able to guide any investigation of defective work on the basis of being able to trace the responsibility of those who had a hand in the design and construction of the failed element.” Kevin Sheridan is a council member of the Society of Chartered Surveyors Ireland and also of the building surveying professional group. He notes that, “while much has been written about the legacy issues negatively impacting on public confidence and reputation of the industry”, the regulations will go a long way to restore confidence in a more professional and “joined up” system and protect our vital infrastructure and heritage. “The new regulations embrace a quality control and quality assurance system incorporating a more transparent and up-front notification, inspection and certification process, where all involved in the process are now required to demonstrate compliance through a more considered and transparent system,” Sheridan says. “The system requires more thought and clarity to be provided at the outset to insure critical inspection and sign-off by industry professionals. “It also requires that competent builders such as those covered by the CIRI register, will soon become a mandatory registration requirement.” While its introduction was not universally welcomed, as some saw this as an imposition entailing an unnecessary control and a cost burden, the Society of Chartered Surveyors Ireland (SCSI) welcomes the positive aspects, “which require a more transparent and rigorous

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process requiring that only competent key players take ownership for providing robust and fit-for-purpose buildings”. Robin Mandal, President of RIAI says while BC(A)R has an important role, consumer redress can really only be provided by an effective system of latent defects insurance. “The commitments in construction 2020 to this is welcomed,” he says, “along with government, the RIAI is working towards this end. “The commitment in Construction 2020 for the heads of legislation to be prepared for the registration of builders is crucial to protecting the consumer,” says Mandal. “The commitment by the Department to review, with all of the stakeholders, the operation of S.I.9 in Spring 2015 is welcome,” he adds. “Any new system needs review. There are operational transition difficulties, which need to be addressed, in addition to possible new initiatives. “Perhaps a broadening of the stakeholders would be considered.” The RIAI has produced considerable documentation for its members and runs a number of CPD events to familiarise members with the new regulations. It is also preparing a Code of Practice for Architects working under the new regulations. “While there is no specific prevention for self-building in the regulations, the RIAI considers this issue should be addressed in consultation with department officials and possibly the housing agency,” says Mandal. Crucially, the RIAI considers that

building control authorities should have the legal capacity to issue immediate “cease works” notices. The RIAI supports “adequate and appropriate inspection by building control authorities and the resources that will be required for that”. Says Mandal: “We need a public information campaign by the Department which lets the public know what the regulations mean.” The view of Shane McCloud of the Irish Association of Self Builders (IAOSB) is that. S.I.9 has brought “extraordinary changes to the construction sector, many of which are unintended and negative”. “Acknowledged widely now as a political solution to a practical problem, BC(A)R S.I.9 has brought us legal uncertainty, little consumer benefit, additional red tape at a huge cost,” says McCloud. More than five senior councils have issued differing advice on S.I.9, states McCloud. “They all agree that vague wording will eventually be determined in the courts – hardly a resounding vote of confidence in the regulation.” “Self building has fallen off a cliff,” is the stark-sounding message from IAOSB. “The effects of S.I.9 have also been felt in government capital projects. How many hospital projects, community centres or convalescent homes have been delayed due to S.I.9?” Self builders and consumers who commission once-off houses need to be made exempt from the provisions S.I.9, says McCloud. “Once off houses would still be subject to the regulations; they just would not need the additional services of design or assigned

certifiers. Michael Collins, former President of the RIAI says the Building Control Amendment Regulations introduced “extended and cumbersome selfcertification by designers, main andsubcontractors to replace the failed selfcertification system that preceded it. “The same as the old system however, the new one is set to fail in protecting the consumer, particularly in speculative residential development,” he says. “As we have seen in other sectors of society, a system which relies on people certifying their own work cannot and will not work. “Apart from this fundamental flaw, the legislation is badly drafted,” Collins says. “Basic issues related to extensions of less than 40 sqm, the legal position of self-builders and technologists, liability of assigned certifiers, the absence of any system of rectification of non-compliant buildings, the lack of co-ordination with standard forms of contracts, are only a part of the picture. “The negative impact on construction starts is not being broadcast but is real.” “Publicly-funded school projects are stalled. Housing costs will continue to rise as shortages tighten. “Other problems will emerge. The construction sector faces turmoil in which almost everything about building regulations will be decided in the courts, bringing more uncertainty, cost, delay and frustration. “Contracts and work practices which have taken decades to evolve are set at naught. “The solution is a system of independent inspection as works successfully in England, Wales and Northern Ireland.” The new rules have impacted on suppliers to the industry too. “Overall, having these new regulations in place and having the necessary statutory stamp on a building project is a good thing for the industry and, ultimately, the client,” says Sean Moran of HPC Group which operates a number of builders’ providers outlets. “However,” says Moran, “complying with the regulations has created its own difficulties for suppliers to the trade. “Initially there was considerable pressure on the sales departments in the various builders’ suppliers and some confusion in responding to requests from builders to provide evidence that all products supplied complied with the new building regulations. “Builders and the various tradespersons require documentary proof that all products supplied are fit for their intended

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BUILDING REGULATIONS

Sean Moran, HPC Group

‘‘

WHILE THERE IS A COST FOR THE BUILDER IN COMPLYING WITH THE NEW OVERSIGHT REGIME, THE REVISED PROCESS WILL GIVE MUCH GREATER LEVELS OF CONFIDENCE TO THE PURCHASE

use, bear CE marking and comply with the various European and Irish standards. “Providing the requisite information on all products has placed quite an administrative burden on builders’ merchants. “While the relevant information has been generally available, gathering and collating all the documentation is a time consuming process and requires all manufacturers and suppliers to provide relevant product information/certification etc. to merchants to be passed on to clients. “‘Declaration of Performance’ is now one of the most commonly heard phrases in the sales offices of all our HPC Group branches. “We provide a Declaration of Performance, covering all aspects of the regulations for all products supplied. We have built a database of all products which can be forwarded to our customers on request.” Meanwhile, Gerry Fallon, brand development manager at Expert Hardware says there has been “a mixed reaction” from their customer base. “While everyone agrees that the new regulations will play an important role in the pursuit of more robust building control, the increased number of mandatory certificates now required and extra financial burden, falls directly on those intending to build,” says Gerry. “For a typical 200sqm, the estimated additional workload just to an architect or engineer who is acting as an assigned certifier could be 100 additional hours approximately, which would typically cost an extra €5,000. “These levies and other associated compliance costs which builders who are registered with the Building Control Authority now have to undertake, are placing more obstacles in the way of those intending to start new builds or extensions over the 40sqm threshold. “These new regulations in turn could also slow down the rate of growth in the construction sector which would affect the hardware industry which has had a very difficult few years since the downturn.” Finally, it’s over to the constructors and Dominic Doheny, Senior Vice President, CIF, who stresses that all that has actually happened here is that the oversight for the construction process, including supervision and certification, has changed. “It means that there is certification from registered professionals confirming that

what was designed is built in accordance with the building regulations,” says Doheny. “I would think that is a good thing and addresses consumer/ end user concerns that the statutory building regulations requirements have been complied with. “I don’t necessarily agree with the cost imposed on the client for delivery of these regulations. Doheny adds: “The new registration process for builders, Construction Industry Register Ireland, has in conjunction with the Department of the Environment Community and Local Government, been established by the CIF to provide a registration process for competent builders. “This is to be put on a statutory footing in 2015. Members of the newly established register of builders will undertake continuing professional development to ensure that their teams are trained and aware of new building requirements and processes. Many construction companies are already providing this training to their construction teams,” adds Doheny. “The CIF, as part of its membership package, in conjunction with CIRI will be rolling out courses to make sure all builders from the small one-off guys up will understand and know what their obligations are. It will dovetail into the system as neatly as possible.” Says Doheny: “The legal responsibility for builders to build in accordance with the building regulations always applied and were being implemented by the vast majority of builders. “However, the new regulations will make it difficult for the ‘rogue builder’ to have a place in the reputable and professional construction industry that we all strive to achieve and maintain.” C

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CQMS 15

€50million of machinery on display at Ireland’s largest construction and quarrying machinery show

Pictured top: Adrian Madden, Close Brothers Finance (sponsor), Brian Coogan show organiser, model Ciara Kent and Tom Parlon, Director General of the Construction Industry Federation launch the Construction and Quarrying Machinery Show 2015 (CQMS ’15) at Behan’s Quarry, Rathcoole

nderlining the return of confidence to the construction sector comes the announcement that Ireland’s largest construction and quarrying machinery show (CQMS ’15) will take place in Molloy’s Quarry in Tullamore, Co Offaly on April 17th and 18th, showcasing over €50million of construction and quarrying equipment. Indications are that 2015 will see economic growth of between 4% - 6% and figures from the Central Statistics Office show that the construction industry alone employed some 10,000 new people in the last year. “Activity in the construction industry is closely related to the country’s general economic performance, “ said Tom Parlon Director General of the Construction Industry Federation at the show launch. “All the indicators suggest the economy will see further growth this year, which is a positive signal for how the construction sector will perform. The expectation throughout the industry is that the boost in activity experienced in 2014 will increase further in the next 12 months with a wide range of significant projects moving on site. “As construction companies start to shake off the financial limitations caused by the downturn, the increased activity and improved cash flows will lead to a stronger demand for new construction equipment and machinery. For that reason CQMS ’15 is a very timely event, providing contractors of all sizes with the opportunity to see the latest advancements in construction

equipment before they make their purchases.” CQMS ’15 is set to showcase some €50million of construction and quarrying machinery with over 100 exhibitors and a large demonstrative arena. Event organiser and publisher of Machinery Movers Magazine Brian Coogan believes that the time is right for a show of this calibre as there is an appetite for moving forward once again within the industry. “There has not been much purchasing power in the market in recent years, however now we are beginning to see some green shoots emerging within the construction industry,” he said. “All indicators point to a growing market and this naturally leads to a requirement for new machinery. There is little to no second hand machinery left on the Irish market and therefore now is the time for the industry to upgrade their fleet with the new technology that is currently available. There are exciting times ahead in the construction industry and CQMS ’15 will be there at the helm informing and demonstrating what is available to market leaders.” CQMS ’15 is a two-day event which will see dealers, distributors and manufacturers exhibiting and demonstrating their machinery and equipment to end users in one convenient location. Some 8,000 – 10,000 industry leaders are expected to attend the show which will host over 100 exhibitors showcasing their products in an indoor marquee. An outdoor demonstrative arena will also be established where construction manufacturers will showcase larger plant, its new technologies and capabilities to specific interest groups. “The Irish market is ready for work after seven years of recession. Companies are now in a position where they need to purchase new equipment. With finance available through our sponsors Close Brothers Commercial Finance, businesses can finally begin to invest once again,” said Brian Coogan. Adrian Madden of Close Brothers Commercial Finance is also very optimistic about the future of the construction industry. “We are delighted to be sponsoring CQMS ’15 as we believe there is a new appetite for industry leaders to invest in their business. We are very positive about the future of the construction and quarrying industry. We encourage those seeking finance to bite the bullet and get advice, as investment is a major contributor to a growing economy,” said Mr Madden. C

26 CONSTRUCTION January/February 2015

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CONFERENCE

CIF Cork Conference 2015

Late January saw the first big CIF event of the year when the CIF Southern Region Director Joe O’Brien hosted “The projects in 2015/2016 and how to win them” conference. A large gathering of CIF members heard from a range of key professionals from the public utility sector and public service.

PAUL QUINN, CHIEF PROCUREMENT OFFICER, OFFICE OF GOVERNMENT PROCUREMENT MICHAEL STONE, CIF PRESIDENT In welcoming CIF members to the event, new CIF President Michael Stone touched upon some of the themes he will embrace over his two year term of office. “The CIF is sometimes too Dublin-centric,” he said “and I hope to bring a more regional focus.” He also paid tribute to CIF Director Southern Region Joe O’Brien who will retire later this year.

Streamlining how the State purchases goods and services is at the core of Paul Quinn’s role. “We’re developing a ‘one voice to market’ strategy,” he told CIF members in Cork. While presenting an overview of what the Office of Government Procurement does he imparted the unfortunate news that despite the upturn, there will be no substantial increase in Capital spending, though 75% of what the Government does spend goes to the construction sector.

Martin Lang, CIF Director Main Contracting with Theo Cullinane, CEO BAM and Tom Parlon

28 CONSTRUCTION January/February 2015

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MARTIN ACTON, CHIEF PROCUREMENT OFFICER IRISH WATER

DAVID O’BRIEN, CHAIRMAN GOVERNMENT CONSTRUCTION CONTRACTS COMMITTEE David O’Brien’s visit to Cork came shortly after the review into Government contracts was published (see page 5 for further details of the review). He spoke about his objectives for the interim amendments to the contracts, including the need to reduce the potential for costly disputes and to provide greater detail on the tendered price. In the medium term he wants a broader review of the procurement of public works including eProcurement and Building Information Modelling (BIM).

Irish Water has a big job upgrading the country’s water infrastructure – the utility is in charge of over 18,000km of infrastructure. Martin Acton has spoken at a number of CIF events about the relationship he wants to build with the construction sector. In all of these speeches he and his team have underlined the importance of the tendering process and how Irish Water is not using the standard Government forms of contract. There is a pipeline of work ready to come on stream, the question, from the Irish construction sector, is when? “We’ve a lot of work to complete,” he said “and in terms of getting the right suppliers it’s not about a race to the bottom.”

JIM CURRAN, HSE The HSE has a busy few years ahead, some of the projects due to commence include design & build contracts in Cork and Galway, and PPP contracts in 14 locations. Jim Curran said three delivery methods are being used: Capital Plan, PPP and Operational Lease. Community nursing units need upgrading and replacing in some instances, requiring an investment of €800m. Projects to be tendered in 2015 include a 100-bed unit in Waterford City and a 25-bed ward extension in Bandon.

LARRY McEVOY, TECHNICAL MANAGER, DEPARTMENT OF EDUCATION & SKILLS The demand for classrooms continues to grow with the Department of Education set to spend €530m this year and a further €415m in 2016. The Capital allocation for the five years from 2012 totals €2,341m. Since 2012, 57 new schools and 40 large-scale extensions were completed, while over 40,000 additional school places were provided. There are 168 projects ‘live’ as of January 2014. Larry McEvoy told the conference that issues arising in 2014 included the introduction of the Building Control (Amendment) Regulations and the pressure on building costs.

Joe O’Brien, CIF Director Southern and Western Region, with John Boylan, Chairman, CIF Cork Branch and Tom Parlon, CIF Director General

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TENDERING AS PART OF A CONSORTIUM

‘‘

It is highly likely that where construction firms join together to form a consortium, they will be considered to be actual or potential competitors”

WHY FORM A CONSORTIUM?

There are various reasons why firms may join together to create a consortium to bid jointly for a public or private contract, for example where the firms individually have inadequate financial capacity, scale, experience or technical capacity to meet the requirements set out by the purchasing body in the tender competition. In these cases, firms may jointly meet the requirements of a tender competition and be in a position to carry out the works.

WHAT IS COMPETITION LAW?

All businesses of any size are required to comply with Irish and EU competition law, and to refrain from anti-competitive behaviour such as price fixing, bid-rigging, collusion, sharing of markets, customers, or commercially sensitive information. Concerns as to anti-competitiveness arise particularly in the context of the formation of a consortium, as it involves the sharing of business information between multiple companies, who may be actual or potential competitors.

WHERE DO COMPETITION LAW ISSUES ARISE?

Where multiple companies join together to form a consortium, no competition law issues will arise if the companies are not actual or potential competitors; or if the companies are owned by the same parent company. Companies are considered to be actual or potential competitors if they supply the same goods or services, in the same geographic market, or could easily adapt their existing business to do so. As such, it is highly likely that where construction firms join together to form a consortium, they will be considered to be actual or potential competitors. This, however, does not preclude actual or potential competitors from joining together to form a consortium. The Competition and Consumer Protection Commission has said that a consortium bid even between actual or potential competitors will not cause competition problems if: > none of the parties to the consortium bid could fulfil the requirements of the tender competition or the contract on its own; and > no subset of the consortium members could together fulfil the requirements of the tender competition or the contract; and > only the minimum amount of information strictly necessary for the formulation of the consortium bid and the

In December 2014, the Competition and Consumer Protection Commission (an amalgamation of the former Competition Authority and the former National Consumer Agency) issued a guide* for small and medium enterprises on how to comply with competition law when tendering as part of a consortium, writes ALISON IRVING.

performance of the contract (if awarded) is shared between the members of the consortium and is restricted to relevant staff on a “need to know” basis; and the consortium members ensure that they compete vigorously as normal in all other contexts. If these criteria are satisfied, no competition issues arise. However, even in a situation where all of these criteria are not satisfied, a consortium may still be permitted under competition law where the bidding arrangement results in benefits to competition that outweigh any competition concerns. Under competition law, there are four specific factors to be examined in determining whether the pro-competitive benefits of joint bidding outweigh any anti-competitive effects: > The consortium bid must produce real efficiency gains > Consumers must benefit from those efficiency gains > Any restrictions of competition involved in the consortium bid must be indispensable to the achievement of the efficiency gains > Consortium bidding must not substantially eliminate competition either in the particular public procurement competition or in other markets There remains a responsibility on the members of the consortium to outline from the outset the scope of the cooperation between them, and to ensure that it does not go beyond the particular procurement project so as to avoid a breach of competition law. Further more detailed information can be found at www.ccpc.ie. Companies who are in doubt about the competition law implications of any consortium bid are advised to seek independent legal advice, as the consequences of a breach of competition law can be serious. For further information or assistance please contact the Main Contracting team in CIF: Martin Lang, Director of Main Contracting – mlang@cif.ie or 01 4066000 Alison Irving, Executive Main Contracting – airving@cif.ie or 01 4066004 *This guide is available for download from the Competition and Consumer Protection Commission website. C

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PROJECT OF THE MONTH

PROJECT: REFURBISHMENT OF THE NATIONAL GALLERY CONTRACTOR: JOHN PAUL CONSTRUCTION VALUE: €26M ON SITE: EARLY 2014 TO DECEMBER 2015 Notes: Billed as the biggest refurbishment of the National Gallery since it opened in 1864, this project will generate 250 full-time jobs at peak construction during the summer. The project involves the repair of the Milltown Wing roof, upgrading of the Dargan Wing, the Milltown Wing and the Merrion entrance, whilst upgrading the buildings. There are some unique challenges to the project for main contractor, John Paul Construction, not least working on a site that will remain open to the public throughout. According to Enda O’Rourke, Contracts Manager with John Paul Construction, the logistics of the projects present difficulties. “Usually on most projects you have at least one access point,” he says. “But with the National Gallery everything has to be lifted in and out by our tower crane.” As well as refurbishment the project also involves the installation of a new underground energy centre, the demolition and installation of new lift cores and replacing the existing roof. “The new glazed roof will be supported by 12m glass beans made by Siteco,” explains Enda. “Controlling the amount of sunlight that enters the gallery is very important, you don’t want it too dark but you also want to minimise the amount of south-facing sunlight getting in.” While some of the renovation will be obvious to visitors, once the project is completed Enda says much of the work will go unnoticed. “It’s probably the largest underpinning job ever in Ireland,” he says, “but, like the underground energy centre, it will go unseen by most people.” The “unseen” work also includes the installation of sophisticated alarm systems and a new high-pressure mist system (“galleries and water don’t mix”) that is being installed through 10mm bore holes. As you would expect with a project in Dublin city centre, space is tight. The timing of deliveries has to be exact as there’s no room for trucks to wait. “We use a ‘just in time’ system and that’s backed up by consolidation services on the outskirts of Dublin,” says Enda. “The scope of works on this projects is diverse,” he adds, “so we have a temporary works engineer who has a team of six working with him.” When the project is completed, the William Dargan statue, removed in April 2014 to facilitate the energy centre works, will be returned to the forecourt on Merrion Square West. It was the first time in 150 years the statute had been moved. C

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PENSIONS UPDATE

LESSONS LEARNED SINCE THE FINANCIAL CRISIS Susan O’Mara from Milestone Advisory writes about the impact the global financial crisis had on Irish pension savers. that it’s gone up.” In other words, investors remember the trauma of the losses, and nothing else.

ate 2007 brought the beginning of the global financial crisis, considered to be on par with the Great Depression. The crisis was triggered in the US as the housing bubble burst and the combination of subprime lending and the complex financial structures underpinning the debt caused a wave of problems for global financial institutions. There was a chain reaction throughout global economies and closer to home our own property bubble burst exposing the weakness of Irish financial institutions, the main player being Anglo Irish Bank. In September 2008 Ireland officially entered recession and it was not until early 2009 that the full impact of the Irish banking crisis was exposed. Ireland did not officially exit the recession until September 2013. It’s a story we all know only too well. It had a huge personal impact on many pension savers and investors. We know that since March 2009, there has been continued growth, predominantly in US equity markets. The question economists and fund managers ponder the most is when will this unprecedented period of growth come to an end? For the rest of us the main question is: “What lessons have we learned since 2007 that will ensure we do not to make the same mistakes again and protect us from large losses in the future?”

INEXPERIENCED INVESTORS MAKE “REACTIONARY” INVESTMENT DECISIONS…

At the beginning of the crisis, markets fell sharply, and by end of 2008, pension savers and investors had seen losses of close to 40% of their fund values. With pension savers, our experience is that only 20% of people make any investment decisions over the lifetime of their savings. However, in the downturn, the majority of those that did make a decision, opted out of the markets so as not to face any further losses. This on the surface seemed reasonable however, the markets turned upwards in 2009, and we are now close to six years of growth. Most of those that opted out at the bottom did not participate in the upturn, thereby locking in the losses. Similarly, investors often react to rising values, buying in at the top of the market, when it has become expensive and there is less growth to be made. Others simply avoid the markets altogether, unable to see any value, only losses. This overreaction by investors makes sense according to behavioural economists, such as Meir Statman, professor of finance at Santa Clara University, who says: “We have a tendency to extrapolate not only the most recent experience, but the most vivid. Even though the market has gone up substantially, when people think about it, they don’t think

WE ARE MORE RISK AVERSE THAN WE THINK….

In 2007, the majority of pension assets were invested in Managed Fund or Consensus funds. They were structured to suit a medium risk investor and were used as the default option by most pension managers. They allow for a proportion to be allocated towards equity markets, with the balance spread between assets such as cash, property and bonds. Bonds traditionally have a low correlation to equities and could be expected to provide a cushion to the fund with any dips in equity markets. By the end of 2007, most of these funds had up to 75-80% in equities, a level that proved to be far too high risk for the ordinary investor. We also learned that bonds did not react to the market downturn as we had expected. This lesson seems to have been learned well, with the appearance of an entire new generation of funds, now called multi asset funds. These funds have a similar structure to the managed funds, however, they have stricter parameters for asset allocations and are rebalanced regularly to ensure that the allocations don’t “drift” far from these parameters. Nowadays you can expect an equity allocation of between 50% & 60% for that of a medium risk investor.

DIVERSIFICATION IS KEY…

Simply put, you don’t put all your eggs in one basket. The approach of buying six “cheap” apartments on a beach in Bulgaria has proven to be a mistake. As has tying all your investments up in seemingly secure Irish bank shares! A diversified pension fund or investment portfolio can reduce the overall risk of a fund by spreading the allocation across a variety of asset classes. The idea is that the risk of the fund or portfolio is lower because of this spread and therefore the overall risk is lower than the risk of each of the individual asset classes. Some additions to diversification in the above mentioned new generation multi asset funds is the addition of an asset class of “alternatives”. This can be anything from absolute return strategies, which seek to make returns based on a set of techniques different to that of the standard real return., or commodities such as forestry or energy. Alternatives should offer low correlation with equities. The lesson when it comes to investing is: we are often our own worst enemies. The answer is to engage a professional who will take a non-emotional view of your investment portfolio and advise you accordingly. Susan can be contacted by phone: (01) 406 8021 or by email: susan@milestoneadvisory.ie Milestone Advisory Limited trading as Milestone Advisory is regulated by the Central Bank of Ireland

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LEAN

DRIVING TRANSFORMATION OF CONSTRUCTION PRACTICES

ean construction principles can enhance Ireland’s competitiveness in attracting foreign direct investment. That was the message from the Lean Construction Institute Ireland’s conference “Putting Lean Construction into Practice”, held in The Marker Hotel, Dublin, in early February. More than 260 delegates from the construction sector in Ireland attended the Lean Construction event, which was sponsored by M+W Ireland. Introducing the evening, David Denver, Managing Director of M+W Ireland spoke of the challenges facing the construction industry and the opportunities that lean construction can bring. “Applying lean principles is one of the most qualitative and costeffective ways of managing a build, whether it is a major and complex industrial project or a commercial development,” he said. Speakers on the night included Barry O’Leary, former CEO of IDA Ireland and non-Executive Director of M+W Ireland, who highlighted how Lean construction can sharpen Ireland’s attractiveness for foreign direct investment. Graeme Shaw, Head of Northern Line Extension at Transport for London, spoke about how TFL used Lean principles to deliver a new public project while Paul Ebbs, a core member of LCI Ireland COP, discussed the different pillars of Lean and how to align them. Attendees took part in breakout

David Denver, Managing Director M+W Ireland and Barry O Leary, Director M+W Ireland at the recent Lean event in the Marker Hotel, Dublin

sessions that focused on practical topics in Lean: Fearghal Scanlon focused on ‘Eliminating Snags’, Kevin White spoke on ‘Introducing a Lean Programme’, James Lillis covered ‘Green Belt Programme’ and Gary Widger talked about Mercury Engineering’s Lean programme. In his session, Fearghal Scanlon explained how M+W Ireland reduced snags on comparable builds by introducing measures such as ‘right first time’, offsite fabrication and modular assembly, thereby saving the clients costly rework. “Relatively simple steps can have a major impact on the cost of a build,” he said Conference delegate, Richard Keegan, Enterprise Ireland said “The importance of Lean in the construction sector is fundamental as construction is at the base of all productive capacity. By taking a lead in Lean construction the LCI Ireland COP is providing an invaluable support to the sector to help it adopt and adapt best practice to ensure sustainable development and that businesses are created and developed in Ireland, for Ireland and for the export markets.” The next LCI Event – Lean Project Delivery - will be held on Wednesday 25th March at 6.30pm in the Maryborough Hotel, Douglas, Cork. Dr Richard O’Connor, Director at Transform will be the guest speaker on the evening. C

The Jones Engineering team at the Lean Construction Expo held at the Intel plant, Kildare Late last year, Intel Ireland launched the first Lean Construction Expo at its Leixlip campus. The event was put together to encourage cross learning and sharing on the topic of Lean construction and to showcase the Lean excellence initiatives which have been delivered on projects by construction partners on the Intel campus. The event was also an opportunity to build on the current lean construction momentum in Ireland and to influence the productivity curve from a collaborative perspective which includes numerous stakeholders such as owners, general contractors, designers, trade contractor’s and academia who are each working together using lean tools and principles and enabling Ireland to be a Centre of Excellence for Lean Construction. Eamonn Sinnott, Intel Ireland General Manager and Vice President of Intel’s Technology Manufacturing Group, officially opened the Lean Construction Expo in a NASDAQ style “Bell Ring” ceremony. Eamonn spoke to the 25 year history of manufacturing and construction at the Leixlip campus through an investment of $12.5bn, one which is the largest private investment in the history of the State. Sinnott reiterated that lean is a journey and a worthwhile one that Intel started in manufacturing in the early 1990’s. He added: “Having really embraced lean manufacturing and its principles, it has been a fundamental part of helping us to achieve results that were previously unimaginable. Construction has the same opportunity and can adopt many of these principles which have the opportunity to drive transformation of construction practices”.

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CIF MEMBER PROFILE Peter Walsh photographed in his Galway office, January 2015

Peter Walsh Construction, Galway

AFTER 50 YEARS, STILL LEARNING

The trophy Peter received from General Franco in 1957

here aren’t many in the Irish construction industry who have received an award from General Franco. In fact, it’s probably a safe bet Peter Walsh is the only one! Back in 1957 when Peter was 18, and after winning a national joinery award, he was selected to travel to Spain to represent Ireland at the International Trade Competition. Peter duly finished first and met the Spanish leader at the awards ceremony. Two years later he again represented Ireland – this time at senior level – in Italy, where he took first prize and received his medal from the Italian President. Fast forward to 2014 and Peter is still in business, building houses in the greater Galway area with his son, Tim. “After finishing ‘tech’ here in Galway in the late 1950s, I moved to England and worked any job I could find,” he says. “The papers were full of ads for carpenters so I moved from job to job, sometimes lasting a week in one place,” he jokes. “I was learning all the time,” he says “and earning 10 shillings per week.” In the early 1960s he married and moved to Australia with his young family on what was known as the ‘£10 scheme’. “We worked hard over there but we always thought about coming home,” he says. “Plus we were worried that once the kids were old enough they would be conscripted into the army.”

After a lifetime in the construction business, Peter Walsh is still going strong. BRIAN FOLEY spoke to him on home turf in Galway. Back home, and after a brief spell as a trainee foreman with McInerney’s, Peter set up his own construction business. “I had the chance to work on the Corrib Great Southern Hotel but decided to strike out on my own.” He became adept at building homes in record time and business boomed until, he says, “2007 when it stopped dead”. “We’re up against it trying to get work now,” he says. “We introduced the external wall insulation as a business but it’s two years since we last did one of those jobs.” Like many builders, Peter’s time is taken up with sending quotes. He mentions having sent out over 80 quotes in the past few years with a success rate of less than 10%. “Last year we had six months work,” he says. “You hear talk about demand returning to the market but over in the West it’s only a very small increase.” As for the future, he says he enjoys the work and, at 75, hopes to keep going for another few years. He also expresses frustration at the delay implementing the Construction Contracts Act, a law, he says, that will help sub contractors. “Money is important but it’s not everything,” he says. “We enjoy what we do and will carry on for as long as we can.” C

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CWHT

CONSTRUCTION WORKERS HEALTH TRUST FACING AN UNCERTAIN FUTURE The Construction Workers Health Trust has continued to deliver health screening at building sites up and down the country despite a sharp decline in income, writes BRIAN DALY from the CWHT.

embers may recall the confusion some years back when invoices from the pension scheme separated the constituent parts of the weekly contribution and pointed out that while the pension and sick pay elements were at that time mandatory, other parts of the payment including Health Trust and Benevolent Fund were in fact voluntary. This resulted in some firms reducing their weekly payment to pension only, although the additional components are actually worker only deductions with no employer contribution. More recent events such as the striking down of the Registered Employment Agreement by the Supreme Court has further exacerbated matters to the point where the future of the Health Trust and its nationwide screening programme may now be in jeopardy. Despite this the Trust managed to screen over 5000 workers throughout 2014, which represents over 20%

of the current contributing membership. All workers receive a thorough medical, which includes tests for blood pressure, cholesterol, BMI, diabetes and lung function. The diabetes test is particularly important. Diabetes has often been referred to as the ticking time bomb. It is estimated that as many as 250,000 Irish people may have undiagnosed diabetes, and will only become aware of it when they present to their doctors with some other complaint. Traditionally the standard blood sugar test was used to check for diabetes but this proved to be most unsatisfactory in the context of the construction industry. Why? Well simply because of the eating habits of building workers. Fizzy drinks, cakes, fast food and chewing gum are all part of the typical daily diet of construction workers and all contain large quantities of sugar. So naturally test results showed high readings, which doesnâ&#x20AC;&#x2122;t

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necessarily indicate diabetes. To counter this the Trust introduced the more reliable HbA1C test, which has become standard in the nation’s hospitals. It is still a simple blood test requiring only a pinprick to the index finger but the results are 95% accurate and not dependent on the person fasting beforehand. Furthermore the results are easily understood by the layman. The ideal test result is 6% or under. The purpose of the test is to get a reading of the amount of Glycated Haemoglobin in the blood. As red blood cells die and are replaced about every 12 weeks the test therefore is looking for a snapshot of how the patient has been managing glucose over the previous 10-12 weeks. Workers who score above the 6% mark are referred to

their own GPs for further testing and treatment. Over the last few years this test has proved invaluable at diagnosing hidden diabetes and many individuals have come back to the Trust to thank them and let them know that following treatment and lifestyle change they have successfully managed and in some cases even reversed their diabetes. During the year our medical teams visited numerous workplaces, the largest of which was the Intel plant in Leixlip, where over 700 workers were screened, and the Corrib Gas project at Bellanaboy, Mayo where over 500 were screened. Many other much smaller sites were visited by the Trust’s mobile unit. Being mindful of the fact that the majority of construction workers are employed on small to medium sized projects, the Trust introduced a voucher system for member firm employees whose projects may not be large enough to warrant a visit by the health team. These workers can contact the Trust directly and will be issued with redeemable vouchers that allows them to visit their own GPs for a health check. These are difficult times for the construction industry but there is a modest recovery underway. House building has restarted in certain areas and prices are showing the first signs of improvement for many years. It would be a shame if we were to lose the great gains made in the areas of health and safety. The Health Trust remains a unique initiative. The idea of providing free health checks on busy building sites, in all weathers remains one of the industry’s outstanding achievements. Needless to say this would not be possible without the co-operation of the many contractors and subcontractors who facilitate the weekly contributions and open their gates to the Trust’s medical teams. We would ask employers who may have ceased making the weekly deduction of €1.50 from the wages of workers to have a look at the situation again. Membership can be re-activated simply by informing your employees of the benefits of health screening and by contacting the pension scheme CWPS, in order to re-start the contribution. And remember, this is a worker only contribution; there is no cost to the employer. The CIF, through its Health & Safety Committee, has endorsed the work of the Health Trust as the only realistic way of providing health assessments in our industry. This year the committee is undertaking a renewed focus on health, which for many years was the forgotten half of health & safety. C

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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 our key business streams under the SIG portfolio. SIG 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 widely recognised, market leading brand • Easier access to a wider portfolio of products • Easier to find us, while receiving a consistent customer experience across multiple sites

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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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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. Donâ&#x20AC;&#x2122;t miss out, apply to join the register today.

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ADJUDICATION: WHAT YOU NEED TO KNOW

‘‘

The Construction Contracts Act 2013 was enacted by the Oireachtas in July 2013. It is not yet in effect and a commencement order is still awaited by the construction industry. Seanna Mulrean, Associate Solicitor, Corporate and Commercial, LK Shields. smulrean@lkshields.ie

nce fully commenced, parties to a construction contract will be entitled to avail of adjudication - a new fast track statutory dispute resolution mechanism - as a means of resolving disputes arising under the relevant contract. The following is a summary of the key considerations for those wishing to avail of this new mechanism. As soon as a dispute has crystallised, parties should first consider the terms of the contract and whether the dispute comes within the scope of the Act. The right to adjudicate under the Act (which contracting parties cannot limit or contract out of) will apply in respect of all construction contracts entered into after commencement of the Act. Certain contracts are excluded, for example those of a value less than €10,000 and contracts for works on residential dwellings (unless the property has a floor area in excess of 200m²). It is important to note also that the right to adjudicate applies only in respect of payment related disputes. Once established that the dispute is within the scope of the Act, the process is as follows:

INITIATING THE PROCESS

A party seeking to exercise the right to refer the dispute to Adjudication must do so by way of notice in writing to the other party in accordance with the relevant notice provisions contained in the contract. If no such provisions are contained in the contract notice must be given by way of post or any other effective means. Note that the Act entitles a party to refer any dispute relating to payment to adjudication at any time. This means that even where the parties have agreed to a multi-tiered dispute resolution process (eg. 1. conciliation, 2. mediation, 3. adjudication and then 4. arbitration) either party may still proceed to adjudication regardless of the fact for example that a mediation process in respect of the dispute may already be ongoing.

APPOINTMENT OF THE ADJUDICATOR

The parties may within five days of the date on which notice is served, agree to appoint an adjudicator of their own choice or from the Panel of Adjudicators to be established under the Act. Failing agreement the adjudicator shall be appointed by the Chair of the Panel.

REFERRAL OF DISPUTE

The party serving the notice to adjudicate must refer the payment dispute to the adjudicator within seven days of the date of

appointment of the adjudicator, providing a copy of the referral and all accompanying documents to the other party.

TIME SCALES

The process is intended as a fast-track means of payment disputes resolution and so the adjudicator must decide on the matter within 28 days of the date of their appointment, which period may be extended by up to 14 days with the consent of the referring party.

ACT IMPARTIALLY

The adjudicator is required to act impartially in adjudicating the dispute and in compliance with the code of practice which is yet to be published in accordance with the Act.

ACT INQUISITORIALLY

The Act entitles the adjudicator to “take the initiative in ascertaining the facts and the law”. This gives the adjudicator the power to investigate the issue in whatever manner he or she deems appropriate given the short time scale available.

BINDING NATURE

The adjudicator’s decision is binding and becomes immediately enforceable. The decision can only be avoided if the paying party is successful in overturning the decision.

COSTS

The Act provides that each party shall bear their own legal and other costs in connection with the adjudication. The parties shall pay the costs and expenses of the adjudicator in accordance with the adjudicator’s decision. It remains to be seen how the provisions of the Act regarding adjudication will work practically and the new legislation is not without its flaws. While adjudication will be a new dispute resolution procedure for practitioners in Ireland once the Act commences, it has existed in England in relation to construction disputes since the enactment of the Housing Grants, Construction and Regeneration Act 1996. Contractors and sub-contractors would be well advised to review their existing contract administration practices and establish and implement early warning systems for contract disputes as well as effective document control systems in preparation for the commencement of the Act and the introduction of the new dispute resolution regime. C

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FM IRELAND

There’s always a better way… FM Ireland Facilities Management Ireland (FM Ireland) is a unique opportunity for all those involved and responsible for creating and maintaining retail, industrial, commercial, government buildings and facilities to see latest products, services and solution providers that can be of direct assistance and benefit to achieving these aims. FM Ireland is using a unique combination and case studies of direct relevance to of conference content delivered adjacent to attendees. Ireland’s largest exhibition of suppliers with Building off the success of last years the latest in products, services and solutions event, visitors will have access to leading that can assist Irish businesses. suppliers and service providers showcasing Maintaining the infrastructure of a the latest in new ideas, new technologies business is estimated as the second highest and new solutions that can improve cost for any organisation and with profit productivity and increase your return on margins still being squeezed a euro saved is more valuable than ever. The challenge is how investment. Whether you are looking for engineering best to achieve this for your organisation. Knowing which specialists to call in, which services to comply with the new regulations on refrigerants, the latest in products to use, who to take on as a partner energy management and energy solutions, or contractor is key. Whilst you may not be cleaning technology, asset management, getting hands-on yourself, understanding security or outsourcing solutions for parts what’s involved so you can make informed or all of your infrastructural needs FM judgements on quality, service and costIreland, which incorporates Health & effectiveness. Whether you are looking to Safety and Fire Safety Ireland is the event improve your aspects linked to health & for you. safety, fire safety, best practice in fall and As part of day one, Tom Parlon, Director arrest procedure or sourcing new suppliers or General of the CIF, will be new products, at FM Ireland, presenting a paper on the you can see everyone and CIF’s vision of the challenges everything you need to put and opportunities for the your strategies into effect and YOU NEED TO construction sector in the make the decisions that lead coming months and years as to greater efficiency, return KNOW well as discussing how CIRI on investment and value for will impact and add value to money. Facilities Management construction companies and Ireland, 4 - 5 March personnel. THE CONFERENCE 2015, RDS, Dublin

BECAUSE KNOWLEDGE IS KING The conference programme benefits from the active involvement of the FM Ireland’s supporting organisations that are providing industry experts who will deliver papers

To view the full conference programme and register visit: www.fmireland.com assist. Don’t Miss out! Free to attend.

services make contacts and find solutions to practical and management problems. You know things can always be done better: here’s where you’ll find the people, products and practices to make it happen.

NEW FOR 2015

Hosted by Emergency Fire & Safety and Ikar UK, this demo zone will include an impressive 6m high load cell, where two specialist trainers will release two dummy casualties. Each will be differently equipped, The Corrib Gas and one with an energy absorbing lanyard Terminal at On large the other with a retractable device. Bellanaboy screens, the impact of the falls on either casualty will be measured and displayed in this fascinating insight into the world of fall arrest. The rescue team will then go into action and rescue in a trauma scenario. This will include live rescue systems being used and state of the art resuscitation equipment (auto pulse). The rescue team will then carry out CPR & AED on the casualty. The trainers will demonstrate two different rescue methods so that the dangers and benefits are made clear to the attendee. There is no time to think when a fall occurs so now is the time to plan for your workforce’s safety. C

THE EXHIBITION

The largest of its kind in Ireland, the free exhibition brings together suppliers, consultants and service providers. It’s your chance to research products and

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E Y

“REVENUE HAVE MOVED AWAY FROM THE RANDOM AUDIT” On a cold Friday morning last November, the CIF held one of their final breakfast briefings of 2014. Attendance was excellent for the Revenue Audit briefing, presented by GABRIEL MacGRATH, Head of Finance and Accounting with the CIF.

‘‘

om Parlon opened the briefing, introducing Gabriel to the members. Tom outlined that audits are something the industry is subject to and we are entering a new era in compliance and regulation. Revenue audits are just another form of compliance check which we are all subject to in some form or another. Gabriel commenced by giving a background of the “revenue audit”, referring to the Revenue Commissioners annual report. A revenue audit in simple terms is a cross-check on the business records with the declared revenue returns. The check can be on one or multiple tax classes covering a specific period. There are 5,700 staff working in Revenue and like private industry it has been hit by the recession. Tax receipts dropped by 34% over the three year period to 2010 (€47bn in 2007 v €31bn in 2010). The embargo on hiring also impacted negatively on resources. This resulted in experienced staff taking early retirement and they were not replaced. The knowledge gap impacted on how Revenue processed their work, resulting in an increased reliance on IT systems. New “smarter” thinking by Revenue has led to computer selection routines and improved overall yields on audits. Looking at the published data there were 4,700 full revenue audits and 620,000 assurance or aspect checks in 2013. The rise in the latter checks are significant and will continue.

THERE ARE 5,700 STAFF WORKING IN REVENUE AND LIKE PRIVATE INDUSTRY IT HAS BEEN HIT BY THE RECESSION

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SELECTION

The Revenue have moved away from the random audit and this is clear given there were only 400 audits based on a random selection, representing less than 9%. More importantly, how are the others selected? Simply put, if you are selected there will be a reason for this. It is based on how you interact with Revenue on your submissions, returns and payments. Revenue can now capture this data and profile it to

make a logical selection. The latter greatly improves the yield from each audit. With limited resources this is crucial in any service centre. Traditionally it was the tip off by an employee or neighbour which resulted in an audit. Today, with more online filing, this data can be analysed and profiled easily with modern software. The Revenue’s technology system is called REAP (Risk Evaluation Analysis & Profiling). This technology approach has been very successful in managing resources and is expected to continue in the future. Filing late or not paying on time is ranking your business to be selected versus a tax compliant business. You may have valid tax compliance certificate but behind the scenes, a negative profile may exist with a high probability of some form of intervention. Modern tax returns have been copied from the US model and other countries. The return format is box ticking to facilitate computerised data capture. Next year Revenue will be introducing the filing of financial statements with returns. This new feature is called iXBRL (inline eXtensible Business Reporting Language). Historically filing your financial statements was not required unless requested. By filing accounts with your returns, computerised systems can compare and analyse your year end tax position instantly. A very powerful tool. Variances will be noted and profiled. By automation, the manual review process has been reduced. The “aspect enquiry intervention” sent by letter has therefore increased. It is similar to a desktop audit or enquiry. It is typically in the form of a letter showing a particular aspect of your return and a request for more information. This can be asking for a listing, copy invoices or specific explanations to figures in your return e.g. where you claimed a VAT refund in current period, but historically it was always a liability; if your P30 form (PAYE/PRSI return) is significantly different compared to previous submissions. Variances or unusual patterns may cause a Revenue intervention. The key here is to respond quickly with Revenue. This will result in positive feedback and your record will be updated. During the briefing sample letters were circulated to the attendees. Important to note, the aspect enquiry is not a formal revenue audit. Failing to

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Gabriel MacGrath, Head of Finance, CIF, with Tom Parlon, CIF Director General and Martin Lang, CIF Director Main Contracting

respond to this type of intervention would greatly increase your chances of being selected for a formal audit. These enquiry interventions have grown in significant numbers. The reason for this is very evident and is a clear strategy by Revenue. Their annual report lists this type of cross check, which has proved to be very successful in boosting the yields on interventions and the management of resources from their point of view. The flexibility and efficiency of Revenue has been modernised. Their strategy is moving more returns and submissions online. This is supported by an integrated database which can link with other Government Departments (D.S.P. etc.).

THE AUDIT

You should receive a 30 day notice via a letter from the Revenue. The letter will indicate the year(s) and class of tax(es) to be reviewed. On receipt, it would be important to ring the inspector as indicated on the letter to enquire the reasons for selection. This will assist in knowing why the audit was issued. Later this will assist in the decision process if you wish to make a disclosure before the inspection commences. It is important to have all the relevant

records to hand with your returns relating to the period being audited. Typically the audit will start with a question and answer session where a questionnaire will be completed by the Revenue official. Questions will be asked on your systems, ownership, types of books kept and business processes. The opportunity to make a qualifying disclosure can then take place, which must be in writing. The briefing discussed the area in more detail and the benefits of having good preparation and relevant taxation advice are vital for this part of the audit. Failure to coperate or not take this process seriously may result in high penalties and publication where you will be named in any settlement. Lower penalties will apply where the prompted disclosure is utilised and conducted in the correct manner. Publication can be avoided.

the developments on the introduction of electronic filing of financial statements with returns. • Analysis of tax liability on financial statements and returns filed can be compared more readily with returns. It is key therefore the books of account reflect tax returns filed. • Development continues to online filing and returns. There was good feedback of the briefing and it may be repeated in 2015 in the West of Ireland for members, subject to demand. The CIF does not offer a taxation advisory service but was delighted to bring this information briefing to its members. C

OVERALL

• There will be more technology led interventions conducted by Revenue. • The self-assessment process has been extended to include more in depth declarations on returns and tax liability headings. • Making correct & timely tax filings are more critical than ever, particularly given

For more information on the briefing please contact Gabriel MacGrath at gmacgrath@cif.ie

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De-Watering Silt Bag

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SSI Dewatering Bags provide an effective way to collect harmful sediments from dirty water pumped out of excavation works (such as foundations, pipe line construction, water, sewer and utility trenches, waterways and lakes) that would otherwise pollute the surrounding environment. SSI Dewatering Bags are an efficient, practical, quick, simple and cost effective alternative solution to manage this ongoing environmental problem of removing suspended solid pollutants from pumped water on construction sites.

De-Watering Silt Bag

Sediment-laden water is simply pumped into the high quality filter bags, which trap the solids inside and allow filtered water to flow freely out through the geotextile fabric to disperse into the surrounding ground or another collection point. Applications such as outfall pipes from site drainage or lagoons. The silt filter bags provide a passive non-mechanical solution, without the use of excessive or specialist machinery (other than possible lifting equipment when full), and do not require a large work area.

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16/02/2015 08:11

SECURITY

SET YOUR SITES ON SECURITY As construction activity gathers pace once again so too does the potential for crimes like vandalism and theft from sites. Building materials, tools and expensive plant and machinery can all become targets, reports MARTIN FORAN.

he increase in construction projects is good news for the sector – and for the wider economy. However, it also spells potential opportunity for those who would seek to profit in underhand ways. This is the message from the National Crime Prevention Unit of An Garda Síochána, which recently produced a new information sheet for the building industry. As is clear from its name, the unit is concerned with preventing crime from happening in the first place and this is all part of its, typically, proactive approach. Such a proactive stance has worked well for the unit whose members also hold metal theft forums twice a year. Here, Gardaí say that serious headway has been made. Meanwhile with the construction sector in expansion mode they are keen to increase awareness on sites so as to prevent criminal activities which could pose a threat to the industry. So, has a prolonged period of relatively low activity

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SECURITY Each year An Garda Síochána recovers substantial amounts of tools and other equipment. However returning property to its rightful owners can prove difficult. So, how can people make it easier for An Garda Síochána to get property back to them when it is recovered? Sergeant Courtney lists a few simple things such as taking a picture of the item – simplicity itself with modern mobile phones – and marking items in ways that can distinguish them. You can then email these details to yourself and include, for example, any serial numbers. You will have a valuable record that you can give to Gardaí in the event of a theft. left us vulnerable? Do we need to refresh our approach to security in tandem with our practical skills? When it comes to crimes associated with building sites, Garda figures show a rise of around ten per cent for the period September 2013 - September 2014. “Building sites are easy targets by their nature,” says the Crime Prevention Unit’s Sergeant Kelvin Courtney. “There is a ready market for all types of materials, tools and machinery, especially with so much more activity taking place now.” Courtney stresses that everybody must take some degree of responsibility. “It is a job for everyone,” he says. “If items get stolen and damage is done to a construction site then that will add on to the costs and it will cut the margins that any developer might get. “So of course it is in everyone’s interest to avoid thefts and vandalism. Our mantra here is that crime prevention is everyone’s business.”

TOOLS

Among the most vulnerable items are tools. These can be company property and also individual workers’ tools. Thieves do not generally discern between the two. “The theft of tools and equipment is a lucrative market in Ireland,” says Sergeant Courtney. “However, that cheap tool which seems too good to be true has likely cost somebody – and it will cost everyone in the long run,” he adds. “It is not a victimless crime. There are costs involved – real costs.” What defines these items in the main is that the thief can take them quickly – and get rid of them quickly too. Power tools of course are right up there and a very attractive target for criminals.

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CHECKED IN Power tools represent a large proportion of the value of goods stolen from building sites. Generally, these belong to a category described as CRAVED items: Concealable Removable Available Valuable Enjoyable Disposable

‘‘

IF ITEMS GET STOLEN AND DAMAGE IS DONE TO A CONSTRUCTION SITE THEN THAT WILL ADD ON TO THE COSTS AND IT WILL CUT THE MARGINS THAT ANY DEVELOPER MIGHT GET

’’

Of course the list of vulnerable items does not stop with tools. Building materials are targeted too and the advice here is that all deliveries should be “checked in” by designated staff. If not being used immediately they should be stored inside a secure compound or building. Here, the National Crime Prevention Unit advises that, if possible, arrangements should be made to have materials delivered as required. Where steel containers are used as stores they should be locked with good quality close shackle padlocks. The placing of an obstacle across the door is also recommended. Materials should never be stacked adjacent to perimeter fencing. Machinery meanwhile should be parked in a well-lit area inside a secure compound when not in use. Ignition keys should be removed and immobilisers fitted and utilised. Security locks and / or ground fixings are also available for additional security. Here it is essential that an accurate record of the engine number, chassis number / vehicle identification number (VIN) is maintained and should include any distinguishing or unique features which would assist in the recovery and identification. Again, Sergeant Courtney advises taking a clear photograph. And again, when taking delivery it is important that a designated member of staff is responsible. In addition there are several property marking and tracking systems which should also be considered.

ACCESS

One of the most important areas to consider is that of access control. “People shouldn’t be getting in without some form of identification,” says Sergeant Courtney.

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They should also be brought to where they are supposed to be going.” The number of entrance gates to the site should be kept to a minimum and perimeter gates should be similar in height to adjoining fencing and should be fixed so that they cannot be removed. Gates should be secured with a substantial hardened steel chain and a good quality close shackle padlock. In high risk areas the use of PSA approved security guards could be considered. It is of course illegal to employ security guards who are not PSA approved and illegal for the individuals to act as security guards if they are not PSA approved. Lighting is hugely important. You want to leave no hiding places and good lighting also helps you to get clearer CCTV images. “Good lighting puts out a strong message too,” says Sergeant Courtney. “It is an excellent deterrent and should be designed so that the intending intruder can be seen from outside the site.” Higher levels of illumination are required for vulnerable areas such as storage compounds, car parks and offices. Site offices meanwhile should be located in areas near to the main entrance with limited access opportunity for intruders and they should never form part of the perimeter. An elevated office, which affords an overall view of the site and car parks, is desirable.

SMALLER SITES

One of the features of the construction industry at the moment is that there are a lot of smaller jobs taking place like one-off houses, revamps and renovations. Often they are surrounded by wooden hoardings and it is important to check for the weakest points. “Look at the adjoining building, for example,” says Sergeant Courtney. “Can someone get in through a back garden? Is there good natural surveillance?” A danger area here has to do with people leaving tools in vehicles. One piece of advice is to put up a sign saying that there are no tools stored in the vehicle.

GREATER VIGILANCE

At the end of the day anyone can become a victim regardless of size or scale and equipment and machinery have been stolen from sites in broad daylight. Which brings us back to the central message here: that crime prevention is everyone’s business. “Much of the crime within the industry could be prevented through greater vigilance and the implementation of standard security practices across the board,” says Kelvin Courtney. Note: As The National Crime Prevention Unit of An Garda Síochána says in its information sheet: (available at www.garda. ie) “The advice is not intended to be exhaustive or absolute. Nothing should be interpreted as mandatory, obligatory or designed to conflict with any statutory regulations.” C

‘Very effective’ gangs target construction sites CIF Head of Training & Development Robert Butler says that contractors need to be highly vigilant for ‘very effective mobile gangs’ operating around the countryside who target construction sites with the intent of stealing plant, equipment, trailers and mobile phones from vans. “It is essential, to reduce the risk from this type of theft, that construction contractors remain on the alert for any suspicious activity near their work site,” says Robert. “As the construction sector starts to see a steady increase in activity the necessity to be aware of such illegal activity needs to be highlighted to reduce the amount of plant, machinery and equipment such as cartridge-operated tools being stolen. “CIF recommend that serial numbers for all items of plant, machinery and cartridge-operated tools be recorded as this makes it a lot easier for the Gardaí to get recovered items back to the rightful owners. “Compounds should be kept secure at all times and gates locked to reduce the risk from these types of mobile gangs. “The theft and export of expensive smart phones is a multi-million industry here,’ adds Robert, in reference to the much-targeted items. “Recently Gardaí issued a report calling for people to record the IMEI numbers on their phones so that they could contact their providers and stop the phones from being used in Ireland. “They revealed that 8,000 phones had been reported stolen in the first six months of last year.”

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Clogrennane Lime Ltd has been producing burnt lime products from its base in Carlow for almost 200 years. During that period its products have become synonymous with the high quality and purity needed for the construction market. Lime in its various forms has been a staple of the construction industry for generations. Noted for its ease of use, workability and cost effectiveness, lime is used in both new construction and heritage works. In the modern era, Clogrennane Lime supplies into four main markets: Construction, Industrial, Agriculture and Environment. The range of lime products available from Clogrennane Lime Ltd suit the needs of the modern construction industry and the restoration / heritage market. Two families of products have been tailored to meet a dynamic market. Clayfix is a Quicklime product, designed to meet the needs of the soil stabilisation market. Since its introduction to the market in 2001, soil stabilisation using Clayfix has been used in some of the larger and most recognisable projects around Ireland. Many newly construction motorways, industrial estates and large retail locations have all been constructed on Clayfix stabilise soil.

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Our Hydrated Lime product, sold under the White Rhino brand, is our most recognisable product and is used for the preparation of Mortars, Renders and Plasters. Found in new builds and used in the restoration market, the workability it brings to any mix has made it a staple material on any construction site. The benefits of both types of material can be summarised as follows;

SOIL STABILISATION

The unique properties of our Clayfix range allow it to be used to stabilise poor quality soil, allowing the formation of a stable working base. The addition of as little as 2% Clayfix to marginal materials gives the following benefits; • Saves time – provides a solid base for construction vehicles meaning less downtime • Saves money – marginal material does not need to be removed from site and virgin aggregate does not need to be imported

MORTARS, RENDERS AND PLASTERS

The most common use of lime in the construction industry is the preparation of mortars, renders and plasters. Materials constructed using White Rhino Lime show benefits to the Designer, Contractor and the Owner. of these benefits include; • Greater workability • Reduced cracking • Low water penetration For more information on our product range, visit our website or contact an advisor at our Carlow Office.

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CONDITION PRECEDENT AND FAILURE TO COMPLY WITH PUBLIC WORKS CONTRACTS

Prior to 2007, the most common forms of construction contracts in use for public sector procurement were the Government Departments and Local Authorities Forms of Building Contracts and the Institution of the Civil Engineers (now Engineer’s Ireland) forms of contracts, writes MARTIN LANG. he then current and previous editions of these forms of contracts were understood by the parties to the contract, and difficulties that may have existed, had already been settled through case law. The parties to the contracts (the employer and the contractor), together with the employer’s representatives, engineers, architects and quantity surveyors, knew the duties, obligations and the risks that were imposed upon them through the forms of contracts. In the case of the contractor, the risks undertaken could be priced accordingly within the tendered amount. In 2007, when the government introduced the new Public Works forms of contract, the underlying objective was to secure more cost and time certainty in the expenditure of public finances for the procurement of construction projects. In striving to attain this objective the new Public Works contracts introduced a “Claims Control” procedure, whereby the contractor was required to comply with strict procedures in order to preserve its right to cost and time entitlements. The new PW forms of contract embraced, to a degree and perhaps to a greater degree, the claims procedure, contained in clause 20 of the current Fédération Internationale des Ingénieurs-Conseils (FIDIC) Conditions of Contract for Construction First Edition 1999 (commonly referred to as the Red Book), whereby if the contractor considers itself to be entitled to additional time for the completion of the work and/or to additional payment, the contractor must give notice to the engineer, describing the event or circumstance giving rise to the entitlement. Such notice must be provided as soon as practicable and not later than 28 days after the contractor became aware, or should have become aware of the event or circumstance. In the event that the contractor fails to comply with the time period for the provision of the notice, then entitlement to additional time and / or payment was forfeited by the contractor and the

employer was discharged from all liability in connection with the claim. In effect, the provision of the claim notice became the first step by the contractor in the claims procedure as specified in the contract. The fact that the contractor would lose its entitlement to additional time and / or payment is clearly set out in clause 20 as follows: “If the contractor fails to give notice of a claim within such period of 28 days, the time for completion shall not be extended, the contractor shall not be entitled to additional payment, and the employer shall be discharged from all liability in connection with the claim. …” Condition precedent was introduced into construction contracts. For a condition precedent clause in a contract agreement to be upheld by the courts, it must be clearly drafted, without ambiguity and it must clearly state what the parties have to do and the consequences of non-compliance. Condition precedent clauses may contain specified time periods for actions to be taken, as in FIDIC Red Book 1999 clause 20 and Public Works contracts clause 10. Such clauses with a specified time period for action to take place are commonly known as time-bar clauses. Many arguments were raised by the inclusion of condition precedent clauses in the FIDIC forms of contract, one being that the employer could actually gain from its actions in causing delay and cost to the contractor, notwithstanding the fact that clause 8.4 (e) provides for extending the time for completion in the event of any delay, impediment or prevention caused by or attributable to the employer, the employer’s personnel, or the employer’s other contractors on the site. On the other hand, it was argued that lack of notice denied the employer the opportunity to rectify the situation or to avail of an alternative option that would have time and cost benefits. There were also the arguments that providing notices of claims did not contribute to working relations between the contractor and employer

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(and its representative, the engineer or contract administrator). However the FIDIC Contracts Guide states: “They (the employer or the engineer) should not regard the notice of claim as an aggressive act which must be rebutted, but merely as an act which enables the employer to be aware of the possibility of the contractor’s enhanced entitlement. Although the recipient of a notice may respond if he is aware of any factual errors in the notice, the absence of any rebuttal should not be taken as any indication of agreement”. The Public Works Contract for Building Works designed by “the employer” (PW-CF1 v1.8 04/09/2012) contains the following claim procedures:

“10.3 CONTRACTOR CLAIMS

10.3.1 If the contractor considers that under the contract there should be an extension of time or an adjustment to the contract sum, or that it has any other entitlement under or in connection with the contract, the contractor shall, as soon as practicable and in any event within 20 working days after it became aware, or should have become aware, of something that could result in such an entitlement, give notice of this to the employer’s representative. The notice must be given according to sub-clause 4.14 and prominently state that it is being given under sub-clause 10.3 of the contract. Within a further 20 working days after giving the notice, the contractor shall give the employer’s representative details of all of the following: • all relevant facts about the claim • a detailed calculation and, so far as practicable, a proposal, based on that calculation, of any adjustment to be made to the contract sum and of the amount of any other entitlement claimed by the contractor • if the contractor considers that the programme contingency referred to in sub-clause 9.4 should be used or that there should be an extension of time, the information required under sub-clause 9.3, and, so far as practicable, a proposal, based on that information for any use of the programme contingency or any extension to the date for substantial completion of the works and any affected section. The contractor shall give any further information about the event or circumstance requested by the employer’s representative. 10.3.2 If the contractor does not give notice and details in accordance with and within the time provided in this subclause 10.3, except where the contractor

has been required to and has given a proposal complying in full with sub-clause 10.4 [notwithstanding anything else in the contract] the contractor shall not be entitled to an increase to the contract sum or extension of time or use of the programme contingency referred to in sub-clause 9.4 [and the employer shall be released from all liability to the contractor in connection with the matter]”. A brief comparison of clause 10.3 of the Public Works contract with clause 20 of the FIDIC contract shows that the time period for providing the notice is changed from 28 days in FIDIC, to 20 working days in the Public Works contract. FIDIC requires a fully detailed claim which includes full supporting particulars of the basis of the claim and the extension of time and/or the additional payment claimed within 42 days after the contractor became aware (or should have become aware) of the event or circumstance giving rise to the claim. The provision by the contractor of full supporting particulars is not a condition precedent and does not deny the contractor its entitlement. However, failure to comply with the stated timescales may restrict the contractor’s entitlement to what can be verified by contemporary records. While the Public Works contracts requires the contractor to provide all relevant facts about the claim, a detailed calculation and, so far as practicable, a proposal, based on that calculation, of any adjustment to be made to the contract sum and of the amount of any other entitlement claimed by the contractor within 20 working days of giving the notice. The submission by the contractor of the details of the claim within 20 working days of the notice is a condition precedent. The question remains as to how the courts of Ireland will react to the requirements and procedures for claims and entitlements as contained in the Public Works contracts. “Five years ago if there was a dispute the contract was well known to the parties. We now have a series of clauses that have never seen a courtroom”. With a dearth of previous court cases on the Public Works forms of contracts, especially with regards to condition precedent clauses in construction clauses, it is likely that Irish courts may look to developments in other jurisdictions.

CIVIL LAW JURISDICTIONS

In Civil Law jurisdictions protection from time bar clauses can be found for example, in Section 208(1) of the German Civil Code (BGB) and Section 242 BGB incorporates the concept of ‘good faith’ (Treu und Glauben). Article 1147 of the French

Civil Code provides that ‘a debtor shall be ordered to pay damages, if appropriate, either by reason of the non-performance of the obligation, or by reason of delay in performance, in circumstances where the non-performance does not result from an external cause which is non-attributable to the debtor, so long as there is no lack of good faith on his part’. The external cause would include, according to case law, acts by the principal.

COMMON LAW JURISDICTIONS

In common law jurisdictions support for time-bar clauses can be found in cases like Ronald Stuart Napier v Barand Petrus Barkhuizen (2006) 569/04 (Pretoria Supreme Court of Appeal), where it was held that a time bar clause in an insurance contract did not conflict with legislation specified time period, on the basis that the parties voluntarily entered into a contract that contained the time bar clause. In the case of Gaymark Investment PTY v Walter Construction Group (2000) 16 BCL 449; [1999] NTSC 143, it was held that as a result of employer delays time became at large even though the contractor had failed to serve the required contractual notices within the specified time period. The decision of Gaymark however, is specific to its own facts. In the United Kingdom, the decision of Waterfront Shipping Company Ltd v Trafigura AG [2007] EWHC 2484 (Comm) confirmed the courts’ willingness to deny claims where time-bar provisions were not complied with. This approach by the courts’ was followed in the case of Steria Ltd v Sigma Wireless Communications Ltd [2008] CILL 2484. The courts’ support for time-bar provisions were upheld in the cases of City Inn Ltd v Shepherd Construction Ltd [2003] BLR 468 and Multiplex Construction v Honeywell Control Systems [2007] EWHC 447 (TCC); [2007] BLR 195 (to a limited extent) support the view that time bar clauses are valid and should be upheld.

CONCLUSION

When dealing with the applicability of condition precedents in Public Works forms of contract, the Irish courts will not be bound by decisions in other jurisdictions. However, citations and decisions from other jurisdictions are often submitted to the courts as persuasive argument. From the growing popularity of condition precedent clauses in commercial contracts, perhaps it is better to be compliant than to risk the likelihood of being denied entitlements rightfully due. Contractors are now being paid, not just to construct the project, but to comply with the contract. C

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SILT MANAGEMENT

REMOVING SILT FROM CONSTRUCTION WATER RUN-OFF MARTIN SHERIDAN from SSI Environmental writes about managing and removing silt deposits from watercourses as a result of construction works.

igh levels of silts, fines, clays and colloids can enter natural water courses as a result of natural events such as heavy rainfall and run-off water, man-made actions such as land drainage and, more challengingly, during major earthworks construction phases such as road building, excavation and remediation of new and old buildings. Once they have entered into the water course, they precipitate and cover the river bed with fine layers of silts and fines, gradually suffocating the life of the river bed. Colloids on the other hand can, under some circumstances, agglomerate on the gills of fish and result in fish mortality. In nature, these silts are gradually washed away by successive rainfall events. The challenges facing engineering construction works are made harder by the potential of localised, heavy loads of spill entering water courses, potentially at several locations, with high frequency. Mitigation measures include grassing of exposed soil as soon as possible after exposure, placement of silt fences to retain solids, construction of drains to re-direct run-off water, incorporate settling (tailings) lagoons, lamella settlement tanks to enhance settlement of silts, fines and colloids. All these measures work with varying degrees of success. However to reduce the threat of any potential pollution incident it is worth looking at the chemistry of silts, fines, clays and colloids in a bit more detail. Put simply: • Silts are generally fine-grained soils that do not include clay minerals and tend to have larger particle sizes than clay (2-4 µm). • Clays are fine-grained rock or soil material combined with one or more clay minerals (silicates) with traces of metal oxides and organic matter containing variable amounts of trapped water with particle size less than 2µm. • Fines can be considered to be an overlap between clays and silts exhibiting similarities in particle size and physical properties. • Colloids (colloidal suspensions) may be

regarded as the overall mixture of smaller, non-soluble particle clays and fines (10.001µm) dispersed in water. The resultant hydrocolloid is a mix of hydrophilic (negative electrically charged) polymers dispersed in water that do not filter readily or settle and would take a very long time to settle, (days, weeks, months) unlike the larger silt and fine type particles which settle rapidly (seconds, minutes etc.). Therefore, removal of larger particle sized fines, clays and silts can be achieved by appropriate management and use of ‘passive’ systems such as Hy-Tex Silt Fence, sedimentation lagoons, silt bags and Sedimat. To mitigate colloidal suspensions from water courses an ‘active’ water treatment process is required whereby negative electrically charged clays and fines are ‘charged neutralised’ to allow them to ‘fall-out’ of solution. Although this can be achieved by addition of liquid chemical coagulants, polymers and pH neutralising chemicals, their environmental impact along with health and safety requirements for handling of these chemicals, can be significant. To overcome this SSI Environmental has recently acquired the license to market Soneco throughout Ireland, from UK water treatment specialists Power & Water. Soneco is a chemical-free, patented sonoelectrochemical process whereby a ‘positive’ electric charge is put into the water and charge neutralises contaminants like suspended colloids along with metals and phosphates. Power & Water’s director previously developed the Axonics process for Shell at the Corrib Gas Field in Mayo. This site is highly sensitive and the parameters that the contractor had to adhere to were rigidly imposed. The only effective method of keeping the water discharge levels acceptable was the electro-coagulation process. This system has been in place and has been operating successfully since 2005. Martin can be contacted at SSI Environmental Ltd, Blanchardstown, email: martin@ssienvironmental.ie C

“With the construction industry starting to pick up again, there are also new concerns. We are under constant pressure from the EU in relation to our water quality and there is no doubt that the construction sector has its part to play. In the past, sediment control or silt retention were not exactly given a high priority in relation to levels of importance on any site. There are varying levels of attention given by the authorities to this matter and it this tends to relate the proximity of the site to water. The highest attention would be given to a SAC (Special Area of Conversation), and the local fisheries office would closely monitor the sediment run-offs in these areas. Some locations are not as sensitive and there may be more flexibility given to contractors in these areas, however, this is coming under more scrutiny as time passes. On any construction site, water is never too far away and the obligation of clean water running off the site lies squarely with the contractor. Before the downturn, there were no companies providing silt control products, leading to situations where people ‘did their own thing’ with bales of hay or indeed whatever was to hand, but these methods were crude and ineffective. Thankfully things have moved on and there are companies providing solutions to the whole area of sediment control, which will indeed be a big relief for companies who are trying to conform to water quality regulations.”

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0pm

February

0pm

CIF training and education programmes for February - March 2015

0pm

CIF TRAINING & DEVELOPMENT

0pm

Course Title/Venue Course Code

Start Date

End Date

Course times

wCIF IOSH Managing Safety in Construction CIF Construction House, Canal Road, Dublin 6 CIRI CPD Plan CIF Construction House, Canal Road, Dublin 6 Scaffold Board Inspection CIF Construction House, Canal Road, Dublin 6

MSIC 2511

24th February Tuesday

24th March Tuesday

09.30am – 16.30pm

CCP 6

25th February Wednesday

9.00am - 12.30pm

SBI 2581

25th February Wednesday

09.00am - 13.00pm

Construction Business Management CBML 25th February 25th February & Leadership Programme 2571 Wednesday Wednesday DCU Ryan Academy, Citywest Construction Business Management CBML 26th February 26th February & Leadership Programme 2571 DCU Ryan Academy, Citywest CIRI CPD Plan CCP 26th February 26th February CIF Construction Hse, Little Island Cork 7 Thursday Thursday Scaffold Design course SDC 27th February 27th February CIF Construction House, Canal Road, Dublin 6 2582 Friday Friday CIF Core Safety Management CSMP 27th February 27th February Programme Renewal/CPD 2573 Friday Friday Castlebar Regional Training Centre, The Mall, Castlebar CIF Core Safety Management CSMP 27th February 27th February Programme Renewal/CPD 2508 Friday Friday CIF Construction House, Little Island, Cork

09.00am - 16.30pm

9.00am - 12.30pm 08.30am – 12.30pm 08.30am – 13.00pm

08.30am – 13.00pm

CIF IOSH Managing Safety in Construction MSIC 4th March 1st April 09.30am – 16.30pm Construction House, Little Island, Cork 2512 Wednesday Wednesday CIF QQI Project Supervisor Construction Stage PSCS 5th March 19th March 08.30am – 17.00pm CIF Construction House, Canal Road, Dublin 6 2516 Thursday Thursday CIF QQI Building Control Course - BCC 5th March 5th March 08.30am-17.00pm Part B & Part J - Fire Safety [1] CSE 1 2504 Thursday Thursday CIF Construction House, Canal Road, Dublin 6 CIF QQI Building Control Course - BCC 6th March 6th March 08.30am-17.00pm Part B & Part J - Fire Safety [2] CSE 1 2504 Friday Friday CIF Construction House, Canal Road, Dublin 6 CIRI CPD Plan CCP 6th March 6th March 9.00am - 12.30pm CIF Construction Hse, Canal Road Dublin 6 8 Friday Friday CIF IOSH Managing Safety in Construction CIF Construction House, Canal Road, Dublin 6 Construction Business Management & Leadership Programme DCU Ryan Academy, Citywest Construction Business Management & Leadership Programme DCU Ryan Academy, Citywest CIRI CPD Plan Radisson Hotel, Athlone CIF IOSH Project Supervisor Design Process CIF Construction House, Canal Road, Dublin 6 CIF Quartly Directors Briefing CIF Construction House, Canal Road, Dublin 6 CIRI CPD Plan Radisson Hotel, Galway CIF QQI Building Control Course - Part F & Part L - Ventilation & Conservation [1] CSE 1 CIF Construction House, Canal Road, Dublin 6 CIF QQI Building Control Course - Part F & Part L - Ventilation & Conservation [2] CSE 1 CIF Construction House, Canal Road, Dublin 6

MSIC 2513

11th March Wednesday

8th April Wednesday

09.30am – 16.30pm

CBML 11th March 11th March 2571 Wednesday Wednesday

09.00am - 16.30pm

CBML 12th March 12th March 2571 Thursday Thursday

09.00am - 16.30pm

CCP 9

12th March Thursday

9.00am - 12.30pm

PSDP 2514

12th March Thursday

13th March Friday

08.30am – 17.00pm

DB 2517

13th March Friday

08.30am-11.30pm

CCP 10

19th March Thursday

9.00am - 12.30pm

BCC 19th March 19th March 2504 Thursday Thursday

08.30am-17.00pm

BCC 20th March 2504 Friday

08.30am-17.00pm

20th March Friday

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Course Title/Venue Course Code CIF Core Safety Management Programme Renewal/CPD Radisson Hotel, Galway CIF IOSH Managing Safety in Construction Radisson Hotel, Galway

March

Construction Business Management & Leadership Programme DCU Ryan Academy, Citywest Construction Business Management & Leadership Programme DCU Ryan Academy, Citywest CIF Core Safety Management Programme Renewal/CPD CIF Construction House, Canal Road, Dublin 6 CIF Management & Inspection of Scaffolds CIF Construction House, Canal Road, Dublin 6

Start Date

End Date

Course times

CSMP 20th March 2518 Friday

20th March Friday

08.30am – 13.00pm

MSIC 2574

5th May Tuesday

09.30am – 16.30pm

24th March Tuesday

CBML 25th March 25th March 2571 Wednesday Wednesday

09.00am - 16.30pm

CBML 26th March 26th March 2571 Thursday Thursday

09.00am - 16.30pm

CSMP 27th March 2519 Friday

27th March Friday

08.30am – 13.30pm

SI 2527

27th March Friday

08.30am – 17.00pm

27th March Friday

Construction Business Management & Leadership Programme 2015 Course Title

Course times

Trainer

Intro: Introduction by CEO DCU Ryan Academy 12th March Thursday

9.00am - 9.05am

Eoghan Stack

Module 1: Introduction to Entrepreneurship & Business Management

12th March Thursday

9.15am -12.30pm

Colm O’Maolmhuire

Module 2: Marketing Management 12th March Thursday

1.30pm - 4.30pm

Aisling Hurley

Module 3: Legals for Start Ups

13th March Friday

9.00am -12.30pm

Chris Wheeler

Module 4: Business Planning For Your Business Environment

13th March Friday

1.30pm - 4.30pm

Geraldine Lavin

Module 5: Project Management 25th March Wednesday

9.00am -12.30pm

David Staunton

Module 6: Opportunity Recognition & Assessment 25th March Wednesday

1.30pm - 4.30pm

Dermot Styles

Module 7: How To Write A Successful Tender 26th March Thursday

9.00am -12.30pm

Aisling Hurley

Module 8: Risk Management 26th March Thursday Module 9: Leadership: Communications & Management 16th April Thursday

1.30pm - 4.30pm

David Staunton

9.00am -12.30pm

Dr Melrona Kirrane

Module 10: Financial Management, Funding Models & Revenue

16th April Thursday

1.30pm - 4.30pm

John Eager

Module 11: Sustaining & Growing Your Business 17th April Friday

9.00am -12.30pm

Colm O’Maolmhuire

Module 12: Presentation Skills & Preparation For Skills Demonstration

1.30pm - 4.30pm

Andrew Keogh

Course Date

17th April Friday

Final Day: Skills Demonstration & Certificate Ceremony 29th April Wednesday

9am - 1.30pm

Venue: DCU Ryan Academy, 3013 Lake Drive, Citywest Business Campus, Dublin 24

For further details email: training@cif.ie or call 014066019 / 01 4066071.

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T.I.D.L is Ireland’s largest stockist and distributor of Industrial and Heating & Ventilation insulation products. With over 40 years experience their technical department offers expert advice to engineers and contractors on the most suitable specification for pipe and ductwork installations. Our extensive range of pipe and duct insulation products includes Rockwool and Paroc rockfibre,Isover and Sager glassfibre, Foamglas, Calcium Silicate, Armaflex Nitrile Rubber, Polyurethane, and Kingspan Phenolic. Along with the insulation products TIDL offer a ‘one stop shop’ for the mechanical and insulation contractor with a range of adhesives, tapes and ancillary items.

Reduces heat loss and offers personal protection from hot surfaces TIDL is the leading distributor of specialist Fire Stopping products for applications including floor & wall compartmentation, suspended ceiling void fire barriers, raised computer floor fire barriers, structural steel fire protection & timber floor fire protection. We offer technical advice to professionals and specialist fire contractors on the most appropriate method of fire stopping for a wide variety of construction applications. All of our products are fully tested fire systems to the relevant Irish and European standards and their technical department will assist in determining the correct product for any fire stopping situation. TIDL offer on site assistance to contractors and also conduct specialist fire stopping training schools to ensure that all of their products are installed correctly and in accordance with the relevant manufacturer’s recommendations. Their unique range of fire stopping products includes Rockwool & Lamatherm, as well as their own locally Irish manufactured Pyrobatt Compartmentation systems.

INSULATION

TIDL’s manufacturing division is Ireland’s premier supplier of bespoke insulation solutions. Read More The company supply tailor made insulation products to industry and the entire O.E.M market. TIDL offer custom made insulation kits for all types of applications reducing the customer’s need to stock unfinished insulation raw materials and thereby reduce any possible health & safety issues and with their ‘just-in-time’ scheduled delivery service the customer has reduced stock levels. From low temperature insulation applications of -240C to highs of +1300C they supply specialist OEM cut insulation systems, profiled roofing insulation, fire rated barrier systems, noise control absorbers and numerous composite insulation systems. TIDL is Ireland’s premier manufacturer & supplier of removable insulation covers.They have a proven track record of providing a cost effective, professional solution to industry to solve the many problems associated with plant & equipment operating at high temperatures. By installing a removable Thermal Cover the client can both save energy and protect personnel from hot surfaces.

With its own fleet of trucks and vans the company offers an unrivalled deliver service on time to anywhere in the country. For further information log on to the company web site at www.tidl.ie or call (01) 882 9990 TIDL.indd 1

15/02/2015 21:48

INDUSTRY NEWS Minister for Communication, Energy and Natural Resources Alex White, TD, (right) at a recent Saint Gobain event in Dublin

One-sixth of Irish homes benefit from Government-funded energy efficiency upgrades

inister for Energy Alex White, TD, has said that energy efficiency initiatives are cutting heating bills and creating jobs. Announcing €13.2 million funding for the Better Energy Communities Scheme in 2015, Minister White said almost one-sixth of Irish homes had benefited from Government-funded energy efficiency upgrades, supporting an average of 3,500 jobs a year. Minister White said: “We need individuals, communities and businesses to engage with the energy agenda if we are to build a more sustainable society. That is why public consultation has been a central pillar of the energy policy paper, which I intend to publish this year. Through the Sustainable Energy Authority of Ireland, more than €300 million in grants have already been provided to householders under the Better Energy Programme. This has delivered energy efficiency upgrades to more than 275,000 homes – nearly one sixth

of all homes in the country. “By using less energy, most of which comes from imported fossil fuels, we’re not just saving money, we’re also putting people back to work. The companies active in the Better Energy Programme employ people to carry out energy efficiency upgrades. This means that much of what we spend goes back into our communities. It is estimated that the programme has supported an average of 3,500 jobs over the past three years. Dr Brian Motherway, CEO of the Sustainable Energy Authority of Ireland, which manages the scheme, said: “It is heartening to see the growth in communities tackling the issue of sustainable energy in a positive way, reaping the gains of local employment, cost savings and environmental improvement. Collaboration is the future of energy retrofitting in Ireland, with the benefits felt right across the community.”

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5th Annual International Construction Management Day Conference at GMIT

Dimplex quantum heating system joins the RealValue consortium

he Dimplex Quantum heating system launched in January 2013 and has been designed to revolutionise electric heating. Quantum uses low-cost, off-peak energy, making it the most economical electric heating system on the market today and can save the homeowner up to 27% on annual running costs. Storage heaters have a lifetime of about 20 years and although Quantum are more expensive than traditional storage heaters, the homeowner will be paid back in three to four years. Glen Dimplex is part of the pan-European consortium known as the RealValue consortium*, which is in the process of securing funding of €12 million from the European Commission’s Horizon 2020 fund. The project will pilot the demand side response of the Quantum heaters by placing them in 1,200 homes across Europe with 800 in Ireland and 100 in Northern Ireland and the remaining being placed in homes in Germany and Latvia. Glen Dimplex CEO, Sean O’Driscoll explains: “The industry today and going forward wants storage to be instantaneously available and that’s the technology we’ve incorporated in our new system, Quantum.” Quantum acts as a storage system for surplus energy on the grid. It has been designed to enable the electricity industry to remotely switch on and off the charging

circuit according to generation and network constraints through the very latest in electronic and communications technologies. This gives the electricity system operator an important demand side response tool that can help them match demand to suit and maximise the use of variable renewable generation sources. It can also provide ancillary services to help maintain frequency and voltage stability on the electricity grid. The communications system gives real-time feedback to the utility so that they know exactly how much energy is stored and how much further capacity is available at any point in time. There is also a complex algorithm that determines the future heat requirements of the property thereby giving the utility valuable insight into the energy needed over the next 24 hours. The Quantum heating system is an innovative product which has the ability to contribute to long term sustainability and security of energy supply on a national and international level. To find out more information on the Dimplex Quantum storage heaters, please visit www.dimpco.ie *The RealValue consortium: Glen Dimplex, The University of Oxford, E.On, EirGrid, Teknologian Tutkimuskeskus VTT, ESB Networks, University College Dublin, Deutsches Institut Fuer Wirtschaftsforschung, SSE Airtricity, Intel Labs Europe , Glen Dimplex Deutschland and Rigas Tehniska Universitate.

he fifth International Construction Day Conference, which is hosted by the Department of Building & Civil Engineering at the GMIT, will take place on the 11th March 2015. The event is sponsored by the Chartered Institute of Building, the Society of Chartered Surveyors Ireland and the Chartered Association of Building Engineers. The conference is strongly supported by the local Construction Industry Federation through the Galway Branch Chairman, Paul Carey, and Regional Manager, Justin Molloy. The conference is now the largest annual construction event in the west of Ireland. The conference will be attended by contractors, suppliers, architects, engineers, surveyors and other construction professionals. Staff and students from the GMIT built environment programmes and from other third-level Institutions, as well as staff from local authorities and other public sector organisations will also be in attendance. The event is free to attend and no formal booking is required. The conference will provide a feast of expert speakers on a variety of industry related topics, and we are delighted to announce that our keynote speaker for the conference is Paudie Coffey T.D., Minister of State at the Department of Environment, Community & Local Government. If you would like to receive a copy of the programme for the conference, or have any queries regarding the event, please contact: Martin Taggart, Conference Chair Email:martin.taggart@gmit.ie Direct Tel.: 091 - 742875

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U Mole introduces a new range of revolutionary pipe handling equipment

Mole will offer for both hire and sale a range of exciting new innovations from UIS, which will enable their customers to save time and reduce costs and significantly remove risk to their workforce. UIS, who are specialists in manufacturing new innovations equipment for the utilities industry, have a wealth of experience in gas, water and electricity replacement, rehabilitation and reinforcement projects. The UIS range offered by U Mole includes the Click Stick, Power Push Pipe Pusher, Mains Breaking Attachment and the Powered Pipe Handler. The revolutionary and industry first pipe breaking Click Stick, is a lightweight, portable and safe alternative to podger bars and other impact equipment for breaking redundant pipe sections. There is no longer needing to physically hit the pipe, the Click Stick negates the Health and Safety risks associated with traditional (and some might say Neanderthal) impact-type methods, methods that frequently caused contractors injuries such as fractured cheek bones and eye sockets. This new and fully controlled method completely removes the risk of damages to other local services, which is a known hazard of traditional impact tools. Capable of breaking of cast iron pipes, it is particularly suitable for gas and water with different variations able to break pipes up to 6” and 8” respectively. The Click Stick has undergone extensive trialling and testing to develop a very sensitive remote, allowing precise

control over the force applied to break or crack the pipe. This makes it particularly suitable for live insertions where the additional control is required. Simple to set up and ready to go straight from the box, it is hydraulically operated from a battery power pack, allowing it to be 100% portable and used by just one operative. The new Power Push pipe pusher is changing the way pipe and cables and pipes are inserted throughout the utilities sector. This excavator attachment offers a safer, faster, more economic and compliant way to insert new pipe and cable through existing host mains. UIS have also introduced a host pipe entry guide collar to guarantee a smooth push with no pipe damage. To aid the process of safely removing a section of pipe the UIS Mains Breaker attachment offers the ideal solution. Designed specifically for the application of breaking/cracking metallic pipes in situ and buried beneath the surface, its unique G clamp design allows for more controlled breaking process as it applies pressure from the top of the metallic main and not from the sides. It eradicates all associated risks currently encountered by clients on daily basis, using current methods, creating a safer working environment and allows a more controlled breakout operation. It also increases productivity as the operation can be completed quicker and repeated numerous times Demonstrations and free training are available but in the meantime a demonstration video on the “Click Stick” can be viewed at www.umole.co.uk

Irish water sector meets to explore water quality

he Irish water sector is at a pivotal moment in its journey towards improved water quality, sustainable funding and water security. With an ageing infrastructure and historically inconsistent investment, there has been much discussion about the future of the water sector in Ireland. The challenges of operating the country’s water services require careful consideration, and despite ongoing political uncertainty, the underlying water supply must be provided. Senior strategic, asset management, engineering, customer services and commercial figures from across the Irish water sector are coming together on the 19th March at the 2015 Water Ireland Conference, taking place at the Pillo Hotel Ashbourne, Dublin. The conference programme will begin with an overview of what the current landscape looks like for the water sector; the rest of the day will cover constructive sessions on water quality, infrastructure, the Water Framework Directive, customer service, flooding, wastewater and pricing. Speakers confirmed on the line-up include: Frank McDonald, Environment Editor (retired), The Irish Times Cathy Mannion, Director of Water and Energy Retail, Commission for Energy Regulation Senior Representative, Irish Water Maria Graham, Assistant Secretary for Water and Planning, Department of the Environment, Community and Local Government Nigel Ayton, Managing Director, Scottish Water International Trevor Haslett, Director, Haslett Consulting; former CEO, Northern Ireland Water John Martin, Head - Flood Risk Assessment and Management Section, Office of Public Works Andy Fanning, Office of Environmental Assessment, Environmental Protection Agency Adrian Conway, Executive Manager Water Services - Asset Management and Capital Delivery; SLA Management and Transition, Dublin City Council For more information and to reserve a place at Ireland’s premium water focussed conference, visit www.WWT-ireland.net

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Pipelife Ireland celebrates 45th anniversary

(From left to right) Professor Andrew J Deeks, President of UCD, Donal O’Riain, founder of Ecocem Materials and Professor David Fitzpatrick, Dean of Engineering of UCD

Ecocem founder honoured at UCD event

t a gala evening to launch the inaugural UCD Foundation Day Alumni Awards in UCD, a celebration of UCD’s most distinguished alumni, Donal O’Riain, founder of Ecocem Materials, was recognised for his outstanding contribution to “Green Construction”. The awards recognise UCD alumni that have shown leadership, impact and excellence in their field. In the Engineering Category, Donal O’Riain received his award in recognition of his “outstanding entrepreneurial achievements in carbonneutral construction”. Donal founded Ecocem Materials in 2000, a company dedicated to the production of

low carbon, high performance cement. The company has gone from strength to strength and now produces over a million tonnes annually across Ireland, the Netherlands and France. To date, Ecocem products have reduced CO2 emissions by over two and a half million tonnes. “I’m a truly honoured to accept this UCD Alumni Award,” said Donal. “It represents not only a great personal milestone, but it is also a recognition by one of best universities in the world of the work of the Ecocem team in developing low-carbon construction solutions for an increasingly carbonconstrained world. Everyone at Ecocem will see this an encouragement to continue to innovate and expand in this major new market.”

ipelife Ireland celebrates it’s 45th anniversary of manufacturing in Ireland in March 2015. Pipelife is one of the world’s leading suppliers of plastic pipe systems. The company manufactures and markets a wide range of quality pipe systems, providing tailor-made solutions for municipal infrastructure as well as for the industrial and house building sectors. Pipelife’s Qual-PEX plumbing pipe was developed in Ireland and was the first PEX pipe in the world to be awarded the BS7291 Class S Kitemark in 1989 and the first PEX-B pipe in the world to gain water certification for the Scandinavian market. Since then over 800,000,000 metres of Qual-PEX, 20 times the circumference of the earth, has been supplied to over 30 countries worldwide. The product range has evolved over our 45 year existence in Ireland and the company has diversified from cold water pipe to gas pipe, cable ducting and thermoplastic plumbing pipes which also include underfloor heating pipe. This diversity in products compelled the Pipelife group to purchase the original company, Quality Plastics Ltd, in March 2007. “Drawing on our 45 years of manufacturing experience from our production plant in Cork, Pipelife has been to the forefront in developing innovative products and has been an industry lead for many years,” says the company. “This commitment to quality and innovation continues today and we are delighted to offer ECO products, such as: Qual-PEX Eco Duo our pre-insulated and pre-ducted 1” pipe and QualPEX Eco pre-insulated ½” & ¾” pipe, which are specifically developed with energy conservation and waste water renewal in mind. Pipelife has grown to become a key supplier of innovative products in the plumbing water, gas energy and power distribution, telecommunications, and industrial applications sectors.

Attracting women to engineering and harnessing the convergence of technology and engineering are the two big challenges facing the engineering profession today, Regina Moran, President of Engineers Ireland and CEO of Fujitsu (Ireland) told engineering and technology students at Waterford Institute of Technology (WIT). Ms Moran, who’s an Electronic Engineering graduate from WIT, went on to explain that “women remain a great untapped resource in our profession. We must find ways of

attracting girls and boys to join forces with us and tackle some of the world’s greatest challenges”. “The numbers of women working in engineering roles is still far too small with only eight per cent of Engineers Ireland membership being female,” she said. “However, there are some positive signals and more women are now choosing engineering and recognise the variety of opportunities available to them in critical areas such as technology, energy and life-sciences.”

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FOR YOUR DIARY Tuesday 8th September Tuesday 24th February

Tuesday 19th May

Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016

Hodson Bay Hotel, Athlone, 8pm Contact: Justin Molloy 091 502 680

EXECUTIVE BODY MEETING

MIDLAND BRANCH MEETING

MIDLAND BRANCH MEETING Bloomfield House Hotel, Mullingar, 8pm Contact: Justin Molloy 091 502 680 Wednesday 16th September

Monday 2nd March

Tuesday 26th May

Maryborough House Hotel, 8pm Contact: Brid Cody 021 435 1410 Monday 23rd March

Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016

Ardilaun House Hotel, Galway, 6pm Contact: Justin Molloy 091 502 680

Mount Errigal Hotel, Letterkenny, 8pm Contact: Justin Molloy 091 502 680

Tuesday 24th March

Thursday 25th June

CORK BRANCH AGM

GALWAY BRANCH MEETING

EXECUTIVE BODY MEETING

DONEGAL BRANCH MEETING Mount Errigal Hotel, Letterkenny, 8pm Contact: Justin Molloy 091 502 680 Thursday 24th September

Wednesday 24th June

DONEGAL BRANCH MEETING

NORTH WEST BRANCH MEETING Sligo Park Hotel, Sligo, 8pm Contact: Justin Molloy 091 502 680 Tuesday 13th October

MIDLAND BRANCH MEETING

NORTH WEST BRANCH MEETING

Bloomfield House Hotel, Mullingar, 8pm Contact: Justin Molloy 091 502 680

Sligo Park Hotel, Sligo, 8pm Contact: Justin Molloy 091 502 680

Tuesday 14th April

Monday 29th June

Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016

Ardilaun House Hotel, Galway, 6pm Contact: Justin Molloy 091 502 680

EXECUTIVE BODY MEETING Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016 Monday 2nd November

EXECUTIVE BODY MEETING

GALWAY BRANCH MEETING

GALWAY BRANCH MEETING Ardilaun House Hotel, Galway, 6pm Contact: Justin Molloy 091 502 680 Tuesday 3rd November

Wednesday 15th April

Tuesday 30th June

Mount Errigal Hotel, Letterkenny, 8pm Contact: Justin Molloy 091 502 680

Tullamore Court Hotel, Tullamore, 8pm Contact: Justin Molloy 091 502 680

Thursday 16th April

Tuesday 7th July

TF Royal Hotel, Castlebar, 8pm Contact: Justin Molloy 091 502 680

Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016

Tuesday 21st April

Tuesday 1st September

DONEGAL BRANCH MEETING

MIDLAND BRANCH MEETING

MIDLAND BRANCH MEETING Tullamore Court Hotel, Tullamore, 8pm Contact: Justin Molloy 091 502 680 Wednesday 11th November

NORTH WEST BRANCH MEETING

EXECUTIVE BODY MEETING

DONEGAL BRANCH MEETING Mount Errigal Hotel, Letterkenny, 8pm Contact: Justin Molloy 091 502 680 Thursday 19th November

MID WEST BRANCH MEETING

EXECUTIVE BODY MEETING

NORTH WEST BRANCH MEETING TF Royal Hotel, Castlebar, 8pm Contact: Justin Molloy 091 502 680

Castletroy Park Hotel, Limerick, 4.30pm Contact: Conor O’Connell 021 4351410

Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016

Monday 18th May

Monday 7th September

GALWAY BRANCH MEETING

EXECUTIVE BODY MEETING (AGM 12.45PM)

Ardilaun House Hotel, Galway, 6pm Contact: Justin Molloy 091 502 680

Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016

Tuesday 24th November

GALWAY BRANCH MEETING

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LAST FIX

THE NUMBERS GAME

The Construction Information Services website (www.cisireland. com) provides a fascinating insight into the Irish construction sector. The who, what, when and how much of every project in Ireland can be found on the site. We’re also interested in which projects were the most viewed on the website so the staff at CIS sent us the most popular projects for January 2015...

WHAT WE’RE LOOKING AT.... At number one is the €6.5m redevelopment of the former Bank of Ireland HQ on Baggott Street.

The €25m Walsh Whiskey Distillery expansion in Carlow is

also popular, as is the €30m Human Biology Building in UCG.

The €200m harbour redevelopment in Wicklow has attracted plenty of clicks, along with the €7.8m 1916 Rising Exhibition Centre in Dublin 1.

Susan O’Mara from Milestone Advisory presenting an iPad to Greg St Leger from Ecocem, winner of the Milestone Advisory draw at the recent CIF Conference in Cork on the 23rd January 2015.

CAN WE HAVE SOME OF THAT?

The UK construction industry will need an additional 223,450 jobs over the next five years to handle expected output growth to 2019, according to new research. SOURCE - CONSTRUCTION NEWS UK

Schools projects are also popular, of 18 most viewed projects in January three are school buildings in Louth, Monaghan and Tipperary.

PROJECTS OF NOTE CIS tells Construction that projects of note in 2015 so far, include.... Grangegorman Campus DIT

€200m – preferred tenderer is

expected to be appointed in Q1.

Large €20m housing scheme in Balgriffin, Dublin has just started. Primary Care Centres (PPP Programme) 14 projects – tender returns from selected consortiums are due in Feb 2015.

€67m redevelopment of Pairc Ui Chaoimh. €14m Skibbereen Flood Relief Scheme – tenders returned. €15m Garda Divisional Headquarters (Galway) – tender stage. For more information visit www.cisireland.com or call (01) 299 9200 C

Bryan Quille Construction Director, Monami Construction with Tom Parlon and Trevor Cavangh, Senior Quantity Surveyor, Monami Construction at the presentation of the company’s Safe-T-Cert award.

PYRITE RELIEF FOR ANOTHER 280 HOMES

Over the course of 2015, the (Pyrite) board anticipates that remediation works will commence on projects comprising approximately 280 dwellings. Source: Paudie Coffey, Minister speaking in the Dail, 28th January 2015

James Golden from Quigg Golden speaking at a CIF Breakfast Briefing on International Contracts, 10th December 2014

64 CONSTRUCTION January/February 2015

Const Jan Feb 15_P64.indd 2

15/02/2015 14:38

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siacbp@siac.ie Ph: 01 4033111

04/12/2014 16:32:21

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