CONSTRUCTION the official magazine of the construction industry federation june/july 2015
Where next for housing? A special report
January/February 2015 CONSTRUCTION 22
EDITORIAL
T This month’s cover image featuring Keith Lewis was taken at the Wood Group development, Glendale, in Delgany, Wicklow on 8th June 2015
his month’s cover story (starting on page 18) has some revealing insight about the Irish housing market. As DNG Chief Executive says in our interview with him, understanding the housing market means analyising transactions as well as prices. DNG has crunched the numbers and found how many housing transactions take place per thousand of head of population each year. It reveals that in Ireland, in 2014, the figure is 2.15 tranactions per thousand – up from 1.62 in 2013. For comparison, the number Wales, Scotland and England and Northern Ireland is 4.75. These figures outline how far Ireland is lagging behind its nearest neighbours and it’s clear – from the vantage point of mid-2015 – that some form of intervention is needed in our housing market. When strong demand exists yet few are willing to develop, there is something seriously askew. Every new house built in the UK is viewed as having created two jobs.
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Construction House, 8 Montpellier Terrace, The Crescent, Galway. Tel: 091 502680 Fax: 091 584575 Email: cifgalway@cif.ie
Commercial Manager: Joe Connolly Email: joe@ foundationmedia.ie Editorial Design: Alex Lifeson Printing: W.G. Baird Publisher Foundation Media Ltd
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
That’s the sort of thinking the Government needs to adopt if housing is to get moving again. During the launch of last year’s muchanticipated Construction 2020 the Taoiseach spoke about “kick starting” the construction sector. A year later and that vital part of the industry – housing – remains moribund. Outside of Dublin, developers speak about at least another two years before building commences. The time for action is now. C
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: Conor O’Connell WESTERN / MIDLAND REGION: Justin Molloy SAFETY & MANPOWER SERVICES: Dermot Carey LEARNING & DEVELOPMENT: Robert Butler, Laura Dennison MEMBERSHIP: Renee McManus FINANCE / ACCOUNTS: Gabriel MacGrath COMMUNICATIONS & MARKETING: Rosalind Travers
CIRI CIRI OFFICE: Jeanette Mair CIRI CPD OFFICE: Robert Butler 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 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
DIRECTOR / EXECUTIVE TEAM HOUSING & PLANNING: Hubert Fitzpatrick, Noel O’Connor, Jeanette Mair
June/July 2015 CONSTRUCTION 01
“I’m delighted to announce these new, unique insurance packages – which is exclusively available to CIF members. 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 (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 to comply with new building regulations. House Builders – Special insurance cost per house option
MyRecoveryCheque MyRecoveryCheque is a low-cost insurance protection product that differs from traditional hospital cash plans by providing a range of generous financial benefits that are tiered to reflect the recovery time for a medical procedure. Medical Recovery Insurance starting at €2.99* per week for a 45 year old Motor Fleet New Motor Insurance Agreement with Asgard to Provide Discounted Rates for CIF Members AffinityCover is designed to be purchased through your Insurance broker. For further information please contact your insurance broker or see www.cif.ie/affinitycover
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PROJECT OF THE MONTH Glendale in Delgany
CONSTRUCTION
CONTENTS
5 CIF NEWS
47 ARDMAC PROFILE
Minister visits CIF HQ
The Swords based company
11 CCA UPDATE
49 ROADSTONE
Much-anticipated Act
Larry Byrne on latest product
13 MERCURY RISING
51 DIT/CIF COURSE
Growing with the company
Details on course entry for CIF members
17 CONSTRUCTION EXCELLENCE
53 RELEVANT CONTRACTS TAX
Lending a hand in Thurles
Dominic O’Shaughnessy
18 HOUSING
55 TRAINING
Where next for the industry?
All the CIF courses
32 PROJECT OF THE MONTH
56 INDUSTRY NEWS
Glendale in Delgany
Stories from wider construction sector
35 PENSIONS UPDATE
63 DIARY
Susan O’Mara with latest news
CIF meetings and events
37 CONTRacTS
64 LAST FIX
Sub-contracts with Gillian Ross
President visits CIF project
39 MEBSCA INTERVIEW Talking with Niall Bourke
41 CIS STATS Look at latest numbers
43 IRISH CEMENT CIF site visit to Drogheda plant
june/july 2015
05 18
43
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45 SLIGO IT Enhancing construction expertise
June/July 2015 CONSTRUCTION 03
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CIF NEWS
Minister of State at the Department of the Environment Paudie Coffey (centre) with CIF President Michael Stone (left) and CIF Director General Tom Parlon, during the Minister’s visit to Construction House, Dublin
Minister signals Part V reduction during CIF visit
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n May 26th the CIF hosted Waterford Fine Gael TD, Paudie Coffey at its Executive Committee meeting. Mr Coffey is the Minister of State at the Department of the Environment with Special Responsibility for Housing, Planning and Coordination of the Construction 2020 Strategy. A wide variety of topics were discussed during the meeting,
including the Government’s social housing strategy, upcoming changes to building controls and the new Urban Regeneration and Housing Bill. Members were particularly pleased to hear the Minister’s announcement that Part V of this Bill will now see a reduction in the number of social units provided from 20% to 10%. However, the CIF will continue to lobby for the
complete abolition of Part V. The Minister also gave his support to the CIRI register and congratulated the CIF for taking a proactive approach in this area, calling it a “step in the right direction”. The Minister is a member of Dáil Eireann since 2011 and was previously a member of Seanad Eireann from 2007.
June/July 2015 CONSTRUCTION 05
IR legislation to replace REA announced
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he Government says the reintroduction of Registered Employment Agreements and sectoral agreements in a “constitutionally robust” manner will be of benefit to both workers and their employers. Minister for Business and Employment Ged Nash TD, was speaking after it was announced the Government has agreed the publication of legislation that provides for significant reforms to Ireland’s industrial relations laws. The Minister for Jobs, Enterprise and Innovation Richard Bruton TD and the Minister for Business and Employment Ged Nash TD secured Cabinet agreement for the publication of the new legislation. It will provide a replacement for Registered Employment Agreements. Minister Nash said, “A lacuna has existed for several years now in relation to the framework for workers who seek to
better their terms and conditions either through collective bargaining or registered employment agreements (REAs). This arose after the Supreme Court struck down the old REA framework on grounds of constitutionality while the Supreme Court had also found fault with the application of the legislation that existed in terms of collective bargaining. This legislation are a direct response to these rulings”. “I believe the re-introduction of REAs and sectoral agreements in a constitutionally robust manner will be of benefit to both workers and their employers,” said the Minister. “Such agreements may be used in resolving industrial disputes or potential disputes and certainly we have seen a number of such disputes arise following the Supreme Court ruling. “The new legislation will bring a sense of certainty to both sides of industry who engage in such agreements around
Robert Butler, CIF Head of Training & Development, was awarded Student of the Year in the Irish Management Institute/University College Cork Diploma in Strategy & Innovation for 2014 as part of his Masters of Business Practice programme. Robert will complete his Masters in late 2015.
06 CONSTRUCTION June/July 2015
terms and conditions – particularly when the employer is tendering for contracts. Ultimately, I believe the legislation will improve industrial relations after a period of uncertainty. It will also help to prevent a race to the bottom in terms of skills, training and terms and conditions of employment.” The Commission is being chaired by Dr Donal de Buitléir and is made up of nine members. It has already begun its work on an interim basis, examining data sets and taking submissions on the minimum wage and is due to deliver its first report to Government by mid-July.
Background In the judgement delivered on 9 May 2013 in McGowan and others v The Labour Court, Ireland and the Attorney General, the Supreme Court held that Part III of the Industrial Relations Act 1946 was invalid having regard to Article 15.2.1 of the Constitution. That Article provides, in effect, that the exclusive power to make laws is vested in the Oireachtas. The Supreme Court took the view that Registered Employment Agreements are instruments having the status of laws made by private individuals, subject only to a limited power of veto by a subordinate body. While the Constitution allows for the limited delegation of law making functions, the provisions of the 1946 Act went beyond what is permissible under the Constitution. The effect of this decision was to invalidate the registration of employment agreements previously registered under Part III of the 1946 Act. In consequence the Labour Court no longer has jurisdiction to enforce, interpret or otherwise apply these agreements. As a result, all such agreements no longer have any application beyond the subscribing parties and are not enforceable in law. However, existing contractual rights of workers in sectors covered by Registered Employment Agreements were unaffected by the ruling. Contractual rights can be altered only by agreement between the parties involved. Prior to the 2013 Supreme Court ruling there were six sectoral REAs extant which had been registered or varied by the Labour Court in recent years: two in the construction sector and one each covering electrical contracting, printing, overhead powerline contractors and Dublin drapery, footwear and allied trades. It is estimated that between 70,000 and 80,000 workers were covered by these sectoral agreements.
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CIF Director General Tom Parlon with (l) Simon Barry, Chief Economist, Ulster Bank and Gervaise McAteer, Director Commercial Real Estate & Specialist Relationship Management at Ulster Bank.
Positivity the byword at Ulster Bank briefing A recent Ulster Bank briefing for CIF members heard the bank’s Chief Economist Simon Barry speak about positivity returning to the constructions sector and the general Irish economy. “The growth we’re experiencing is as strong as anything seen over the past 20
years,” he told CIF members gathered at the bank’s HQ in Dublin. Simon Barry added that the regions should also be optimistic: “We are facing a scenario where the improvement is not just Dublin based,” he said. The volume of car and commercial vehicle
sales is also a good indicator of growth and general positivity, he said. “Back in 2007 over 45,000 cars and commercial vehicles were sold in Ireland. That number plummeted to 10,000 the following year, flat lined for another five years until 2014 when 15,000 vehicles were sold.” The economist also pointed out that construction is out performing the general economy, saying that of the 27,000 jobs most recently created, 13,000 were in the construction sector. A note of caution was sounded about the lack of capital expenditure over the next five years, but, in terms of housing, the sector is ““miles away from where we need to get to”. In 2014 there was just 2% turnover of the country’s total housing stock. Also speaking at the event, CIF Director General Tom Parlon said the Ulster Bank Purchasing Managers’ Index is “a very good bellwether for the industry.” First started 15 years ago the Index is panel based and new companies are always welcome to join.
Online tool to reduce construction accidents launched A free online tool that allows small businesses carry out risk assessments and create their own safety statements has been launched. Designed by the Health and Safety Authority BeSMART.ie is now available to those working in construction, giving them access to the benefits already enjoyed by over 25,000 small businesses in the retail, hospitality, service and manufacturing sectors. It is estimated that the cost of a safety statement for construction contractors can be up to €1,500 leading to a potential administrative saving of up to €18m alone for those 12,000 contractors with 1 – 5 employees. Speaking about the new construction online tool the Minister for Business and Employment Ged Nash TD said: “This is a welcome development particularly as there were eight fatal accidents in construction last year and tragically two deaths so far this year.
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“Previously this tool only covered the so called ‘lower-risk sectors’. Now it is available for the construction sector where high levels of safety are a necessity, especially in relation to work at height and the operation of machinery. This tool is also very timely, as the number of people working in construction has increased dramatically, with more than 19,000 more people working than this time last year. But, we must ensure these workers return to their families safe and sound at the end of the day. “Through the BeSMART.ie tool we are providing ways for new and existing businesses to reduce costs while encouraging them to take ownership of safety and health so that it becomes part of their culture and the way they do business.” Of the eight construction fatalities that occurred in 2014, two were self-employed and two involved employees of small businesses.
New Irish Home Builders Association Chairman Hugh O’Neill (left) is congratulated by newly elected Vice Chairman Anthony Neville, at the recent IHBA AGM.
CIF welcomes Port of Cork announcement The CIF in Cork has welcomed news that planning has been was approved by An Board Pleanála for the Ringaskiddy Port Redevelopment project. Over €100m will be invested into the construction and redevelopment of the Port of Cork. Conor O’Connell, Regional Director, Southern Branch CIF, warmly welcomed the new development: “The Port of Cork sees vast amounts of trade taking place on a daily basis, which is vital not only to the economy here in Cork, but beyond this region as businesses throughout the country depend on its facilities as a gateway to their global supply chain,” he said. “Its success is dependent upon a network of highly advanced infrastructure. The redevelopment proposals, which
were approved by An Board Pleanala will provide much needed jobs in the construction industry locally. This approval and the relocation of Port activities to Ringaskiddy should also act a positive catalyst for other construction projects in Cork”. The redevelopment consists of four key areas: Ringaskiddy East (Container Berths and Multi-purpose Berth (CB/ (MPB); Ringaskiddy West (Deep-water Berth Extension); several road improvements; and changes to the Paddy’s Point Amenity Area. Since 2000, the Port of Cork has invested €72 million in improving Port
infrastructure and facilities. Its prime location on the south coast of Ireland and its modern deepwater facilities, ensure that the Port of Cork is ideally positioned for European trading and potentially for yet unexploited direct deep sea shipping services. The network of advanced infrastructure already in place see annual traffic of approximately 10 million tonnes passing through the port. This new construction phase will increase capacity for trade significantly, securing the port’s position as a vital link in the global shipping supply chain.
New employment signals continued construction growth According to the latest CSO Quarterly National Household Survey, employment in the construction sector grew by 6,300 in the last quarter (Q1 2015). Total construction employment now stands at 122,700, up from 116,400 at the end of 2014. During 2014 employment in the sector grew by 13,100 with construction responsible for 45% of all the additional jobs created in the economy. “These are very positive figures and they highlight the continued recovery of the construction industry into 2015,” says CIF Director General Tom Parlon. “Having a jump of over 6,000 jobs in a single quarter is a real sign of the
growing vitality of the construction sector. We have been saying for years the quickest way to create jobs was to generate construction activity. We are now seeing that being borne out. “Former construction workers still account for the largest portion of unemployed people in this country. Every time a construction job is created it is taking people off the dole, with the minimum of fuss. At this stage there are still a large number of former construction workers who can move relatively seamlessly into full time employment with little retraining required. As the sector advances this will not always remain the case but for the time being there are still a lot more
unemployed construction workers who will be able to get back to work quickly if activity in the industry continues to increase. “In 2014 we estimated that an additional 10,000 construction jobs would be created, the industry has exceeded that figure. We have recently published our ’12 Steps for 20,000 Construction Jobs’, if all the measures in this document were implemented further jobs would be created. There is substantial additional scope for creating construction jobs if the blockages to sustainable activity are removed,” added the Director General.
June/July 2015 CONSTRUCTION 09
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Frustration with Construction Contracts Act delay
While the recent appointment of Dr Nael G. Bunni as Chairperson of the Ministerial Panel of Adjudicators to be appointed under the Construction Contracts Act, 2013, industry focus remains on the effects the delay in implementing the Act is having on sub contractors.
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peaking to Construction Tommy O’Malley, a member of the Master Painters and Decorators of Ireland, said member firms are inhibited from accepting new contracts because, he says, it might necessitate the hiring of new staff. “Who wants to take on the responsibility of extra staff when there is no guarantee of payment,” he asks. “Our biggest problem is that in the current scenario, nobody is held responsible when we don’t get paid,” he says. “When the Act is finally fully implemented at least we’ll have somewhere to go (with payment disputes).” Tommy says that for most sub contractors it is a case of “week to week”, such is the precarious nature of new contracts and when they are offered. Ultimately, he says, knowing when you get paid will make the world of difference to sub contractors and will help with returning confidence to the sector. The big worry for sub contractors is that the Construction Contracts Act is not fully implemented before the next general election. “That could mean even more delays,” he says. One of the major issues preventing the full implantation of the Act was removed during May when the Minister for Business and Employment, Ged Nash TD, announced his intention to appoint Dr Nael G. Bunni as Chairperson of the Ministerial Panel of Adjudicators to be appointed under the Construction Contracts Act, 2013. Dr Bunni has extensive knowledge and wide ranging experience of dispute resolution in the construction industry both in Ireland and internationally. Minister Nash said: “I am very pleased that Dr Bunni has agreed to accept the role of Chairperson of the Panel of Adjudicators. He has a proven track record of dispute resolution at the highest level in the construction industry and he has the right skills and the essential knowledge to chair the panel of adjudicators that I will appoint following an open competitive process to be run by the Public Appointments Service, which will commence at the earliest opportunity following his appointment.” Dr Bunni said: “I would like to thank Minister Nash for selecting me to be the Chairperson of the Panel of Adjudicators and I look forward to working with Minister Nash to implement the Construction Contracts
Senator Feargal Quinn in September 2013, just after the Construction Contracts Act was passed by the Oireachtas. The Act is yet to be implemented. Act for the benefit of all stakeholders in the construction industry.” The Government approved the delegation of responsibility for implementation of the Construction Contracts Act to the Minister for Business and Employment last November and work is continuing on the preparations for the full implementation of the Act as soon as possible, says a spokesperson. The Construction Contracts Act provides, subject to some exceptions, new minimum contractual provisions concerning payment arrangements between the parties to a construction contract. Where payment disputes do arise between the parties to a construction contract, either party will have the right to refer the payment dispute to adjudication, which will be concluded within a set timeframe. Where the parties cannot agree on an adjudicator, the Chairperson of the Ministerial Panel of Adjudicators will appoint an adjudicator from the panel to the dispute. C
‘‘
Knowing when you get paid will make the world of difference to sub contractors
’’
June/July 2015 CONSTRUCTION 11
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The Mercury Way Following on from the graduate & apprenticeship supplement in the March/April issue of Construction, we examine how CIF member firm Mercury Engineering nurtures its staff, from first career steps through the years that follow. Brian Foley reports.
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he list of projects Mercury Engineering has worked on include high profile developments like Dublin Airport’s T2, the National Convention Centre, the Corrib Gas facility in Mayo and the Aviva Stadium. To complete such prestigious projects takes a professional staff fully committed to the challenge. “What Mercury has to sell is our name and our experience,” says Frank Matthews, a Director with Mercury who has worked with the company for 37 years. “Most companies can buy materials so the key differential we have is our people. “If you train and look after your staff the return will be the commitment they give to the company and the project they’re working on,” he explains. “The success of Mercury is built on this philosophy, that most people will return the investment.” For a company employing over 1,800 staff keeping them fully trained and allowing them
June/July 2015 CONSTRUCTION 13
Frank Matthews, a Mercury Director, who has been with the company for 37 years
advance their careers through education is a costly business. “It’s important that we train people in what we call ‘the Mercury way,’” says Frank. “There is huge effort put into both the apprenticeship and graduate programmes.” It’s about offering people an attractive package, he says. ‘Stick with us and we’ll look after you’ sums up the philosophy.
David Byrne, with Mercury over 20 years
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“We give people the opportunity to travel throughout Ireland and Europe,” he says. “It’s something that graduates want – that they could end up working in, for instance, Sweden or Amsterdam.” Mercury is also one of the biggest employers of apprentices in Ireland over the past 30 years. It’s testament to the programme that many of the company’s senior personnel served their time with Mercury before moving through the ranks. One such person is David Byrne. Currently working as Bid Manager with Mercury, responsible for estimating all jobs in Ireland and Europe, David started out with the company 20 years ago as an apprentice. “Actually I started out in the estimates office but went on to become an apprentice,” he explains. “It’s a great way to learn about the business ‘from the ground up,’” he says, He spent his apprenticeship on various sites, including Intel. “I enjoyed my time as an apprentice, there’s a crew mentality that’s great,” he says. “The foremen on jobs would know I had computer skills so I would be asked to help out
pricing jobs.” “I qualified as an electrician in 2000 and after a few years working on various projects I moved back into estimating. The fact that I had served my time meant I had ‘site knowledge’ which really helped working in the office.” Over the following years David worked in London as a senior estimator and as a ‘QS’ at the Intel project in Leixlip. He returned to college where he secured a Diploma in Legal Studies, which propelled him into a Post Grad Diploma in
Mercury graduate programme “Our structured training and graduate programme takes two years. The development programme is designed to meet the demands of the working world as would be experienced by graduates. The courses are delivered by external and internal subject-matter experts in a dedicated learning environment. We have a strong link with Engineers Ireland, and we support graduates who wish to pursue Chartered Engineer status. Each graduate is assigned a mentor in their first year and an executive coach in their second.” Mercury’s Graduate Programme is due to commence in September 2015, more information can be obtained from the HR Department.
mercury Construction and Contract Law in Trinity College, Dublin. David is currently studying for a Masters in Quantity Surveying in Bolton Street. “Mercury is great for supporting staff that want to enhance their careers through study,’ he says. “If you show initiative they will back you all the way. The company is very focused on future development of its
team.” As Frank mentioned, the nature of working for Mercury Engineering means there can be travel involved. David moved to the London office in 2010, where he spent time in the estimation department “flying back to Dublin on a regular basis”. Now his senior position with Mercury means he is involved in all the tenders
submitted by the company. “All our estimators have a trade background,” he says. “Nothing beats that ‘hands on’ experience when it comes to pricing a job.” The final word goes to Frank Matthews: “People are the unique selling point of this company,” he says. “It’s up to us to give them the right training and respect.”
In their own words….. Graham Casey, electrical charge hand
Graham Casey “I’m working as an electrical charge hand on various jobs around Ireland, which means I’m on the road most of the time. Last year I worked on the Kerry Foods project in Naas. When I was serving my time I found that on smaller sites you had to do everything, where on the bigger jobs you specialised in one area and became really good at that. I think the smaller the better when you’re starting out. I worked on a bank project where three of us had eight weeks to finish the job. We did the fire alarm system, the lights, everything. It was a great learning experience. Now I’m studying Computer Science in Kevin Street. The industry is becoming more computer-based, so this qualification will really stand to me. Mercury are really good at keeping on top of your training – they even had me doing a forklift course! I remember my first day with Mercury – we started at 7.30am and were due to finish at 4pm. We didn’t get out until 8pm, which can happen in this business. You’ve got to put the hours in when it’s needed. Sure, it’s hard work, but you get the rewards with a secure job and good pay.”
Apprentice Recognition Awards Mercury places great emphasis on recognising the achievements of apprentices working for the company. Every year it presents awards to the best apprentices in various categories. In 2012 Graham Casey won ‘Overall Electrical Apprentice of the Year’. Site foremen send in the nominations and in the week before Christmas the awards are presented at head office. “It’s something that is very popular among the staff,” says Frank Matthews. “It’s rewarding them for doing a good job.”
Elena Martin: “I would say that working with Mercury is about stretching and challenging yourself”
Elena Martin “I’m currently working in The Netherlands as a Graduate Electrical Engineer. I served my time as an electrical apprentice with Mercury so I’m one of the people who moved on through the ranks. I went back to Kevin Street to study Electrical Engineering at night. It was tough going but worth it in the end. Because of the apprenticeship I was able to skip the first year. I would say that working with Mercury is about stretching and challenging yourself. There are lots of opportunities and the graduate programme is really interesting. It’s run over two years alongside your normal work. The programme includes lessons on presentation skills, at the end of which I’ll have to give a presentation to the senior management. Mercury invests a lot of time and money in their graduates. If you put the effort in and work hard they acknowledge what you’ve achieved. There are lots of opportunities.” C
June/July 2015 CONSTRUCTION 15
construction excellence
Tipperary construction firms donate garden to support centre
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he idea of providing a sensory garden for Suir Haven came about as a number of local building contractors were discussing what the construction industry could do, to give something back to the local community. Their idea was to provide their services, expertise and resources for a project that would benefit all in society, free of charge. A committee involving JJ O Sullivan of JJ O’ Sullivan Construction, Hugh Ryan of DH Ryan Architects, Tomas Burke of Burkes Joinery and John O’ Shaughnessy of Clancy was set up to bring this idea to fruition. JJ O Sullivan said: “We felt that the local construction industry could give something back to the local community by donating it’s time and resources to a project that would be of benefit to all in the community. “The idea of providing a sensory garden for Suir Haven fits that idea very well as there isn’t anyone in the local community who hasn’t been affected in some way by cancer. Hugh Ryan of DH Ryan architects came up with the design which includes a flowing water feature leading to a pond which will allow clients and visitors to the Suir Haven Cancer Support centre a place to go and relax, in an atmosphere of peace and tranquillity.” At the launch of the project recently. Maria Mc Grath, Chairperson of Suir Haven said: “The diagnosis of cancer can mark the beginning of a long and very frightening journey, not just for the individual but also for family members, friends and carers. Suir Haven is a community based centre providing emotional support, practical help and information in a safe, positive and completely confidential
The Suir Haven Cancer Support Centre in Thurles will have a new ‘sensory’ garden after local construction firms came together to build the project for free. John O’Shaugnessy from Clancy Construction
environment. “This project when complete will be a magnificant addition to our beautifully refurbished centre and we are really looking forward to seeing the end result. We are so excited and extremely grateful to J.J., Hugh, Tomas and John and all those involved in this project for committing themselves to creating what looks likes will be a really spectacular sensory garden.” Back in May John O Shaughnessy said they hope to commence the project in the next week or two and complete it within 4-5 weeks. “We have written to a considerable number of contractors, sub contractors, suppliers and professionals working within the industry from Thurles and surrounding areas and to date the response has been really positive. We are urging anyone involved in the construction industry who can come on board to provide material or resources to make contact with us as soon as possible”. Editor’s note: This is the first article in our new ‘Construction Excellence’ slot, which aims to publish features about constructon firms and personnel who go the extra mile for the community. C
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cover story
Demand exceeds supply – but only in certain locations. Banks won’t lend – but outside of Dublin are developers actually seeking funds? Costs are climbing and mortgage controls exclude many potential buyers from the market. Brian Foley asks:
Where next for housing?
June/July 2015 CONSTRUCTION 19
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cover story A development in Stepaside, Dublin
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‘‘
They are not in the business of hoarding land
here next, indeed. We find ourselves in, as one developer put it, “quite the conundrum”. What sort of economy produces a scenario where demand and supply are so out of kilter? Developers want to develop, buyers want to buy while the whole process moves at a snails pace towards, hopefully, a resolution. Just over a year ago the Taoiseach launched Construction 2020, the Government’s ambitious plan to “kick-start” the construction sector. Housing was at the forefront of the plan. “The central aim of the strategy is to provide homes for our people by tripling housing output by 2020 and adding 60,000 jobs to the construction sector over the same period,” he told the assembled media. “And just as important a healthy construction sector is required to maintain the output of quality housing options for young families as Ireland’s population continues to grow. A severe shortage in supply is sharply driving up prices in some areas, which is causing great difficulties for many young people.” After the launch economist Ronan Lyons cut to the heart of the issue: “If you want housing to be affordable, increase supply – it’s no more complicated than that. If supply is not forthcoming we need to understand why, rather than push the price of housing further up,” he said. So, what has happened during the intervening 12 months? Very little, it would appear. In 2014, just 11,016 units were completed. Over 3,260 of those were in Dublin where it’s estimated 8,000 units are required annually. A recent CIF report stated that the largest decrease in house building activity was in Limerick, which recorded a decrease of 21% to 270 units. Kerry, Wicklow, Sligo, Leitrim and Monaghan also experienced a drop in house building activity.
’’
“It should be noted that house building activity is coming from a very low base in Ireland. Despite the increase in overall house completion levels, 2014 was still the 4th lowest year of house completions on record. The records began in 1970 when the country’s population was approximately three million people. By 2014 it is estimated the total population stood at over 4.5 million, which represents an increase of 1.5 million or people or approximately 50% population growth,” said the report. This year, we’re likely to see only a small percentage increase in house completions. Hubert Fitzpatrick, CIF Director Housing & Planning, speaking at a recent housing conference said that Ireland is unique in Europe, which places extra demand on our housing stock.
June/July 2015 CONSTRUCTION 21
Analysis by the ESRI has estimated that, in coming years, increases in population will result in the formation of at least 20,000 new households each year, each requiring a separate dwelling. In addition, a number of existing dwellings will disappear through redevelopment or dilapidation. The results suggest an ongoing need for at least 25,000 new dwellings a year over the coming fifteen years. It is estimated there are already 2,000 hectares of land zoned for housing in Dublin, with 1,000 hectares of these comprising large blocks of land in both brownfield and greenfield locations well served by public transport and other essential infrastructure. At conservative estimates these lands have the potential to accommodate upwards of 30,000 units of accommodation in the Dublin region, across the four local authority areas. The other 1,000 hectares zoned residential, while currently in more peripheral or infrastructure-poor – areas, could also make a contribution to supply over time.
‘‘
Despite the increase in overall house completion levels, 2014 was still the 4th lowest year of house completions on record
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22 CONSTRUCTION June/July 2015
“We have the youngest population, with the highest birth rate combined with the lowest death rate,” he said. As with other commentators the CIF Director says Ireland is no longer one single housing market. He identified four separate markets: • Dublin and Greater Dublin area • Larger cities such as Cork and Galway • Larger provincial towns • Rural areas with stock overhang While taking into account the overhang in some areas Fitzpatrick estimates the annual demand could be between 27,000 and 36,000, higher than ESRI figures (see sidebar). He points to demographic figures, which project the Greater Dublin area will see a population increase of 400,000 over the next 15 years, which accounts for two-thirds of the 613,000 by which the State is expected to grow over the same period. These are all positive numbers, so why isn’t the industry responding? The CIF Director points to market values not exceeding costs in many areas; the broken funding model; high density zoning; large upfront infrastructural investment required for larger sites, plus the Central Bank requirements for mortgage approvals. All of these issues are making developers wary, he says.
What are the remedies?
A Grant Thornton report commissioned by the CIF, in response to the Department of Finance public consultation on taxation measures to encourage development of zoned and serviced land made an interesting observation about
perception. Talking about the availability of zoned land in Dublin and the lack of increased construction activity, some have taken the view that “current owners of zoned and serviced lands are hoarding land and delaying development until prices increase further, thereby increasing profits”. As the reports states: “Our (the CIF) members’ livelihoods depend on the existence of a functioning property market. They are not in the business of hoarding land. From the builder’s perspective, the housing market is not complicated. Construction will occur when: • A market exists for the type of property to be constructed under the planning permission granted • It is economically viable to do so; and • All conditions required to commence development are satisfied In the context of stimulating the housing market, Hubert Fitzpatrick said a number of issues could be implemented, including: • Helping first time buyers with deposits • Tax incentivised savings scheme similar to SSIAs for first time buyers • Address the cost base • Reduction in VAT for residential construction to 9% for initial two-year period • Reduction in development levies • Property tax based on market value of homes • Affordable development finance One year from now how many is these issues will have been tackled? More importantly, will supply be anywhere closer to meeting demand?
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cover story outside the pale
“We cannot get past the viability test”
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“The economy is ok, except for construction.” Dominic Doheny is speaking about the midlands, the line stretching from Cavan, through Athlone and Tullamore and down to Tipperary. Less than 90 minutes from Dublin but a world away when it comes to building houses
he former Chairman of the Irish Home when it didn’t make sense to build houses. Now Builders Association and current CIF there is nothing getting built, zero houses over Senior Vice President, who is based in the past seven years and I don’t think anything Tullamore, says most people kept their will change over the next two years. That’s almost jobs in the area but construction suffered a a decade without any house construction in the disproportionate amount of job losses. Midlands. “The upshot is that people tightened A healthy market in say Tullamore would create their belts, even the people with jobs,” he 100 new homes per year, he says. There has to be a says. “Like most other Irish towns we’ve a mix of hosing on offer – two, three and four-beds problem with the town centre, the life is – “we couldn’t sell a development of just four-bed getting sucked out of it.” detached”. There are no three-beds semis for sale in On the issue of affordability Dominic raises Tullamore, he says. The reason is simple: the point that a former stalwart of the market, “The current market value for a three-bed the single teacher, cannot now afford a mortgage. semi here is €140,000 and climbing slowly. Dominic Doheny: “There is nothing getting “A new teacher’s starting salary is just over €30k. built, zero houses over the past seven At the lowest it was probably just over How long do they have to work before they reach a €100k so we’re going in the right direction years and I don’t think anything will pay scale that will support a mortgage?” change over the next two years.” but for a sustainable market in the That market is now gone until they move up the Midlands the price needs to be over €200k. salary scale, same applies to nurses and gardai. “I can’t see any developer being interested in re-entering the market in Another issue is the new building control regulations have any other circumstances.” made it more difficult for owners wishing to move. “They want to Dominic says that €60k gap will take years to close. “Even though the sell a house that was built during the older regulations and move demand is there and the 18 months it will take to build new stock gives to a new home. The new regulations have added so much to the the market time to experience more price increases, the risk is still too cost of a home that’s probably a difference of €20k they have to big.” bridge.” He says there is a massive problem coming down the tracks. Dominic cites investors exiting the rental market as further exacerbating the Finance problems. Currently it doesn’t make sense to be a Landlord outside the A popular solution put forward by Government is for developers cities. Even if landlords are not in negative equity and with current rent to pursue new funding solutions, such as mezzanine finance. levels and with the tax rules applying to the residential market it doesn’t “The CIF has explored all the options and they work for some make sense to be a landlord. people but not for others,” he says. This is resulting in a mass exodus from this sector which hasn’t “Firstly, developers in the regions simply aren’t approaching been measured yet for the effect it will have on a) banks for any type of finance (banks won’t finance social housing (as a large percentage of these units are a project without pre-sales). But for builders “During the boom been rented to tenants depending on rental subsidies) looking for funding, mezzanine finance is development land and b) the ordinary rental prohibitively expensive. It can be as high as 20%, went as high as market (where will these with a premium for an early exit and most mezz people go in the future for funds are not interested in the regions. €105,000 per unit. “If prices went to their housing needs?). This “All I’m saying is that it’s not the panacea some A recent transaction a level that made could be disastrous for future think. If it’s the answer how come people aren’t saw land being it viable to start demographic growth in the grabbing it with both hands?” sold for €2,500 per building houses, the regions! Ultimately, a long list of housing sector ills in unit.. “Even at that public perception “In the 25 years prior to the the regions boils down to one issue: “We cannot crash there was never a time get past the viability test”. low price it doesn’t would be that
developers are fleecing them.”
make sense to start developing.” June/July 2015 CONSTRUCTION 25
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cover story
DNG Chief Executive, Keith Lowe
Estate agent’s view
Sense and sensibility mark out new homebuyers
D
ublin property prices rose by 23.5% last year, says Keith Lowe. “That was never going to happen again this year.” The reason for this, believes the Chief Executive of DNG, was a huge influx of purchasers who were buying to avail of a Capital Gains Tax exemption. “Prices in some areas went a little too high,” he says. “They quickly realigned early this year.”
Rise
This year he thinks that property is still going to rise in Dublin – “anywhere between five and ten percent; I think it’s going to be closer to five per cent on average than ten”. Where higher growth could take place is in a lot of the main urban areas outside of the capital. “In the rest of the country most areas are showing good growth,” says Keith. “Especially when you get into those urban areas like Cork City and Galway City. Sligo and Kilkenny are also performing well. “We believe a lot of those areas will rise by ten per cent and more this year. Of course this is coming from a very low base.” Anywhere within commuting distance of Dublin is good, as usual, in terms of price. It’s all about the “ripple effect” where growth spreads out from the city.
Selling well
So what exactly is selling right now? “New homes schemes are selling very
Property price rises have seesawed between Dublin and the rest of the country in recent times. As for what’s selling, it’s marked by sensibility, appreciation of value and a desire for what mum and dad had, says Keith Lowe of DNG. He soke to Martin Foran. well,” says Keith. “We find there is an appetite. “A big factor with new homes at the moment is a high energy rating and low running costs. “People are coming in and asking: ‘what rating is it?’This can be the deciding factor between buying one property or another.” Competitive pricing is important, stresses Keith. Where schemes are competitively priced they are getting sales but buyers looking at new homes are choosey. “They now tend to – on more expensive units – look two or three times and then make their decision and give you a deposit. “They are looking at the size of the property and sizes of the rooms, the ratings and what heating systems are going in. A lot of buyers are looking for off-curtilage car parking. They don’t want parking spaces fifty yards down the road.
June/July 2015 CONSTRUCTION 27
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cover story The Honeypark development, Monkstown, Dublin
“These types of old fashioned factors, as I’d call them, have crept into the market. “Another factor of today’s market is that potential buyers seem to be very knowledgeable.”
Lessons
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What lessons can developers and builders take? “From our point of view,” says Lowe, “what is important is that they are looking at the design of what they are building. “Say, for example, with a three-storey house, they are making sure there is good living accommodation in it. People also want to have their own private gardens.” Things like car parking are important but “gimmicks” are gone it would seem. In short, buyers are looking for value. A good price is important – more so than putting in houses with tens of thousands of euros worth of extras and looking for a premium price. “People have got more sensible,” says Keith. “I think that often they want what mum and dad had. Most would like a three-bed semi.” As for apartments most are big because of the new standards, so that is good. There is still a market as people like to trade down. “And there are a lot of families from outside of Irish extraction who do like to live in apartments,” adds Lowe. “For a lot of Irish people, their first dream is a house.” Having said all of this, the market is still not operating “normally”.
People are coming in and asking: ‘what rating is it?’This can be the deciding factor between buying one property or another
’’
Transactions
Looking at a housing market means looking at transactions as well as prices. From a market perspective DNG works out how many housing transactions occur per thousand of head of population each year – comparing us to our neighbours. Here, for 2014, the figure is 2.15 – up from 1.62 in 2013. It is up, yes, but the average is 4.75 for Northern Ireland, Wales, Scotland and England for the same year according to DNG research. “It is a long way from operating normally but it is recovering and going in the right direction in terms of transaction levels,” says Lowe. “Our figures show 43,000 sales last year but I’d argue that a lot of those were people buying investments for CGT reasons – and, for a normally operating market, there should probably be around double that taking place in the market. “Around 80,000 in a year is where we should be. “It’s going to be a long time before we get around that amount of transactions. This year I think it will be similar to last year. “On new builds I think that we should completing around 10 or 12,000 new homes.” A lot of people have talked about 25,000 or 30,000 a year but Keith doesn’t believe this makes sense when seen against the total number of transactions for last year. “I believe that in Dublin we should be building around six or seven thousand houses a year at the moment and, on a nationwide basis, maybe 12,000 this year and maybe heading towards 20,000 in 2016, on an annualised basis. “We won’t be though. Prices are not high enough to make building viable in most areas outside the capital.” In short, the cost of building a property in many areas won’t justify what you are going to get for it.
Funding
In the meantime, not surprisingly, Lowe would like to see banks providing more development funding. “We’d like to see a situation like that in the UK where the government supports the funding of development, and possibly through the new Strategic Banking Corporation of Ireland,” he says. “Housing is important. Every new house in the UK is viewed as creating two jobs.”
June/July 2015 CONSTRUCTION 29
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cover story
Passive plan provokes strong response A move which could see “passive house” standards apply to all new commercial and residential developments in Dún Laoghaire-Rathdown has met with mixed reactions. Martin Foran reports.
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his follows an amendment to the draft county development plan, 2016-2022. It would result in more stringent requirements than those usually imposed on builders and developers. Director of the Irish Homebuilders Association and the CIF, Hubert Fiztpatrick says such a move means further increasing the cost of new builds at a time when new housing is needed and it could result in fewer houses being constructed. The standard includes stipulations such as triple-glazed windows, high levels of insulation and mechanical heat exchange systems. The result is a big cost saving in terms of heating and energy but such improvements come at a price. It has been estimated that passive houses can cost 10% more in the UK – as compared with “standard” houses. Weigh any such increase against the amount a househunting couple can borrow – now changed in light of new credit rules – and the dilemma becomes clear.
Submission
In a submission in relation to the development plan Mr Fitzpatrick stressed that the body repsonsible for setting minimum standards is the Department of the Environment, Community and Local Government. “While the construction industry fully supports improved and appropriate quality building standards, such mandatory minimum standards must be established by the national standard setting body,” he said. “While it is acknowledged and appropriate that a planning authority can set aspirational standards in terms of its developmental and planning role, the setting of mandatory minimum standards is the responsibility of the Department.” Mr Fitzpatrick points to issues including compliance. This move will create confusion and conflict, he adds. Another of the areas cited by CIF director is that of the use of renewables. Here he says: “The EU Directive and Part L of the Building Regulations requires renewables to meet statutory standards. “The passive house standards do not require renewables and so conflict with Part L of the Building Regulations.
Clarity
“You need transparency and clarity and to know you can comply with the regulations. The national standards are set out in the building regulations and the technical guidance documents. “If a builder complies with the standards set out in the technical guidance documents and the assessment process required under those documents, that should meet his
requirements.” Mr Fitzpatrick believes that the move will impede recovery of new building activity in the Dún Laoghaire-Rathdown County Council administrative area. It will also affect all construction works for refurbishment work planned for the area. “We have to double housing supply nationally and we must treble housing supply in the Dublin area. “A proposal to require all houses being built from 2016 in Dún Laoghaire-Rathdown to be of passive house standard is not going to do anything to support the required level of house building we require in that area.”
Visit
The decision on passive house standards for buildings was made, it is understood, following a visit to a passive house organised in association with the Passive House Association of Ireland. “There’s no reason why passive houses should cost extra compared to minimum compliance with Part L of the building regulations, which on average requires a mid-A3 BER anyway,” says Editor of Passive House Plus, Jeff Colley. Colley, who won the Green Leader award at the 2010 Green Awards, says: “The question is whether you waste that money on a building that’s low energy in theory but may end up proving an expensive liability, or invest it on one that actually works – giving you comfort, a constant supply of fresh air, and miniscule heating bills.” There is no conflict with the regs, says Colley. “National building regulations still apply – this is a separate requirement. “It’s simply a question of pushing the industry towards ways of complying with the regulations that actually work. This is actually about reducing risk for the industry.” Lots of the seemingly attractive ways of complying with Part L could come back to haunt people, says Colley. “For instance, holes in walls plus intermittent fans are a real risk in low energy buildings, irrespective of whether they’re airtight or not. Yet Part L permits them. “This won’t cause confusion either. Local authorities already set all sorts of varying planning requirements in their development plans,” says Colley. “Our industry is smart enough, and innovative enough to handle this.” The development plan won’t be adopted till the end of the year. However, the consultation period is over and the next step is for the council to collate the submissions and present them to councillors to discuss. C
June/July 2015 CONSTRUCTION 31
32 CONSTRUCTION June/July 2015
project of the month
Project: Glendale, Delgany Developer: Wood Group Price: €625,000 per house The demand for housing along the east coast continues to grow, not only in Dublin but also Wicklow, where new quality homes in desirable parts of the county are particularly sought after. Glendale in Delgany is one such new development, very much of its time: small infill site, quality finish, A3 rating with six of the eight detached properties sold off the plans. Like many developers, Jim Wood owned the land for “some time” before it became viable to build. There is a clear divide, he says, between the culture of developing pre and post-crash. One of the biggest changes, he says, is the way a development like Glendale is advertised to the public. “Ten years ago you would take out advertising in one of the national newspapers,” he says. “The ad would appear, you get ‘one swing’ at it, open the show house and take it from there. “With the increase in use of social media the nature of how we communicate with potential purchasers is completely different,” he says. “The use of the Web is now essential.” “For instance, we use Facebook from the beginning of the project, posting images of each stage of the construction process. People are interested and follow the development’s progress. You get ‘buy-in’.” The future for developers is increased use of digital – virtual reality tours – aimed at a consumer base that is entirely comfortable making most of its purchasing decisions online. “It’s a long way from the static newspaper ad.” C
June/July 2015 CONSTRUCTION 33
pensions update
Life cover is an important yet often overlooked feature of good financial planning… To decide if it is something you need, you simply have to ask: How would your family cope financially if you, as either the main or joint income earner, died? Susan O’Mara writes about the importance of life cover.
I
f you read this column regularly, you’ll know we’ve covered the importance of income protection, pensions, and even the importance of a well-diversified investment portfolio. Now I’m writing about the importance of life cover, which is really going back to basics. You may have overlooked a life cover policy because you have mortgage protection. This would cover the cost of your mortgage if you were to die, however, your income pays for many other things for you and your family, and it is important that they are covered too. There are a few different types or life cover, but essentially, life cover is an insurance policy that pays out a lump sum in the event of your death. As previously mentioned, you will often have a certain amount of life cover attaching to your mortgage, called mortgage protection. This will ensure that you do not leave someone with the burden of your mortgage on your death. Other types, (whole of life or term insurance) will pay the lump sum of money to your dependants on your death. The idea is that this will alleviate the financial burden in your absence. Things to consider include the cost of your funeral expenses, any debts you have incurred such as your credit card or car loans, college fees, along with all and any day to day expenses that you, as an income earner provide for your family. It may seem like there are many more important financial matters things to consider, and there is no way to afford cover for every scenario, but consider these costs outlined in the table below;
Product Cost per month Dual life cover - €150,000 non-smoker age 40
€33**
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It’s interesting to think of the things that we consider too expensive and then those that we can find a way to afford! Your financial adviser will be able to help you choose the right level of cover in each category that suits you (and your families) needs best and it is a conversation you should have sooner rather than later. We don’t expect to die young and leave our families with in a financial quandary, but it happens, and as with most types of insurance, hopefully we never need to claim it – but it’s nice to know its there. C For further information regarding saving for your retirement please contact Susan O’Mara at: susan@milestoneadvisory.ie Phone: 01-4068020 Milestone Advisory Limited t/a Milestone Advisory is regulated by the Central Bank of Ireland
June/July 2015 CONSTRUCTION 35
Amendments to the agreement and conditions of sub-contract In December 2013, a subcontracts review committee was established, to review and modernise the Agreement and Conditions of Sub-Contract (for use with the Forms of Main Contract for Public Works), writes CIF Executive Gillian Ross.
T
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he review took place to amend and update the subcontract to take into account any changes since the subcontract was introduced in May 2008. Changes comprised relevant legislation and practices including the Construction Contracts Act 2013, health and safety legislation, building control legislation, performance bonding arrangements, insurance arrangements, and any other matters the subcommittee saw fit to consider. This form of subcontract is a domestic subcontract for use with the main public works contract and can be used with both building and civil engineering contracts. Please note that some definitions have been altered to take into account the wording in the Construction Contracts Act, i.e. the subcontractor is the executing party.
The contractor shall notify the subcontractor of the first payment claim date which shall be not more than 30 days after the commencement date
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36 CONSTRUCTION June/July 2015
Key changes Clause 1(i) Performance Bonds formerly Named Sureties
Amendments to the performance bond amounts in Clause 1(i) set out whether a bond is required in Appendix Part 1 (E), which, if left blank, should default to 10%. Clause 2(d) Safety, Health and Welfare Statutory Requirements
The wording in clause 2(d) was revised and retains the requirement to comply with the current Safety, Health and Welfare at Work (Construction) Regulations. Clause 2 (e) Building regulations
This clause only applies where the main contract works are works to which the
Building Control (Amendment) Regulations 2014 apply. Under this Clause (1) the subcontractor, must within five days of the commencement date provide the contractor with a completed and signed Ancillary Certificate of Compliance (undertaking by builder) in respect of the subcontract works, in the form provided for in the Third Schedule of the Building Control (Amendment) Regulations 2014 (S.I. 9 of 2014) (Page 27); (2) Undertake to co-operate and facilitate the inspection plan prepared with the assigned certifier, and (3) The subcontractor will provide certificates of compliance to the contractor in respect of the subcontract works to allow the contractor to comply with the building control regulations. These certificate requirements are set out in appendix five of the subcontract and the provision of these certificates shall form part of the works requirements. Clause 3(e) Professional indemnity insurance
If professional indemnity insurance is required in relation to the design of the subcontract works by the subcontractor, requirements and the sum will be indicated in Appendix, Part 1 (C). If the subcontractor is required to take out cover, the numbers of years will be shown here or default to six years if not stated. If the sub contractor is required to provide a collateral warranty, it will be set out in appendix, Part 1(F)
contracts
Clause 4 (F) documents
The subcontractor is required to keep on site a record of all wage records to include time sheets and copy pay slips for all employees for access by the employers representative or persons authorised by him/her. Clause 9(a) commencement date
The Contractor shall set out in writing the commencement date and the subcontractor will commence work within 10 working days. In the same instruction, the contractor shall specify the first payment claim date and possibly subsequent payment claim dates. Clause 11 payments Clause 11(a) payment claims
The contractor shall notify the subcontractor of the first payment claim date which shall be not more than 30 days after the commencement date. Subsequent payment claim dates will be 30 calendar days apart or if shorter, as set out in appendix, part 1(K). On or before each payment claim date, the subcontractor is required to submit a payment claim (known as a payment claim notice in the Construction Contracts Act 2013) to the contractor which will include a detailed breakdown of the sum it considers to be the value of the subcontract works completed up to the payment claim date and indicates the amount it considers payable. Clause 11 (b) deductions
The contractor shall notify the subcontractor not later than 21 days after the relevant claim date, including detailed reasons if the following deductions are to be made • Pro rata deductions from sums • Quantity of any item which is part of the sub contracts works • Compensation event • Contra-charge Such deductions shall be taken into account in the next subcontractor’s payments claim/contractors response to a payment claim. Clause 11 (C) interim payments
(1) The contractor shall make each interim payment of the sum due to the subcontractor not later than 30 days after the payment claim date. If the sum due differs, the contractor should respond in writing to the subcontractor setting out the detailed reasons for the difference between the sum paid and sum claimed, not later than 21 days after the payment claim date (2) If the contractor does not issue a response, the full the amount
is due to the subcontractor. (3) If the contractor issues a response to the subcontractors payment claim and the amount due is not agreed by the date payment is due, then the contractor must pay on the date, the sum stated as due in the contractors response. (4) Where the sum properly deductible by the contractor exceeds the sum which would otherwise be payable to the subcontractor, there shall be a debt due from the subcontractor to the contractor which should be paid within seven working days of either the date when payment would have been due to the subcontractor or of the notification by the contractor of the debt, whichever is later. (5) If the payment by the contractor to the subcontractor is delayed, the subcontractor is entitled to interest. Clause 11 (D) enforcement
Where the amount due is not paid in full by the due date, the subcontractor may suspend work for non-payment by giving notice in writing, not earlier than the date after the day in which the amount is due and at least seven days before the proposed suspension is due to begin. Clause 11 (G) final payment claim
The subcontractor should submit their final payment claim of all sums due to the contractor, not later than 30 days after the date of the Certificate of Substantial Completion of the works issued by the employers representative, or the date of submission of the final payment claim if earlier. If the subcontractor fails to provide the final payment claim, the contractor may but is not obliged to make its own estimate of the final value and the final payment due. If the subcontractor fails to provide the final payment claim and the contractor does not make an estimate of the final value, the contractor shall be released from liability to pay for items not included in previous payment claims. Clause 13 disputes
Clause 13 sets out the methods of resolution under the Construction Contracts Act 2013 where both parties have the statutory right to refer a payment dispute to adjudication any time. Other disputes must be resolved in accordance with Clauses 13(c) – (g). Please note that Clauses 13(A) and 13(b) Adjudication of Payment Disputes, shall only apply on commencement of the Construction Contracts Act 2013. C The updated CIF Domestic PWC Sub-Contract is now available from CIF in PDF, free of charge and a printed copy (€25) can be purchased by contacting CIF Reception T:01 4066000.
June/July 2015 CONSTRUCTION 37
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01/04/2015 22:20
mebsca
“We need to work together to ensure the upturn benefits all our members” As the new President of MEBSCA, Niall Bourke spoke to Construction Editor Brian Foley about the challenges facing the sector.
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t barely seems believable that five years on the construction industry is still only talking about the benefits the Construction Contracts Act will bring, yet that’s where we are as summer 2015 approaches and the final steps to full implementation of the Act are still to occur. “The appointment of the Chairman of the Adjudication Panel is a big step so now it really is a matter of when, not if,” says Niall Bourke. While welcoming the imminent arrival of the new Act he says it won’t solve everything. “It won’t replace good business relationships,” he says, “but it will be an excellent tool for us to use and will help with payment discipline.” The MEBSCA President also spoke about the recent Government contracts review that, he says, will be “good for the services industry”. “The changes bring brought to Government contracts will make for a better tendering process,” he says. “Making the bill of quantities the primary reference document for the pricing of public works tenders for projects designed by the contracting authority is a key measure. “The introduction of the option for a separate tender and agreed subcontract for specialist works contractors is good for the services sector.” Taking the two issues together – the Construction Contracts Act and the contracts review – means the environment for sub-contractors is more positive. On the general economic outlook, Niall says talking to members he thinks there is more optimism about the future. “These are still hard times for a lot of our members but the economy is picking up. We need to work together to ensure the upturn benefits all our members throughout the country” MEBSCA member firms probably employ more direct staff than any other sector in the construction industry so Niall’s views on Construction Industry Register Ireland are interesting. “It’s critical that members get behind CIRI,” he says. “During the recession the sector was tarnished even though our staff have always received comprehensive and on-going training.” He says the CIF has done a “great job” getting CIRI to where it is today. “I don’t think any other organisation
Along with his brother, David, Niall runs the family business T Bourke & Co, which was established in 1968 by their father.
MEBSCA President Niall Bourke
could have done that,” he says. He thinks the register will help build reputation for individual companies and the industry as a whole. “CIRI recognises the fact that we are a sector that trains its staff and who have proper systems in place, so I’m optimistic about its future,” he adds. “I would say to members that not being on the register will be a disadvantage,” he says. “As well as moving to a statutory footing, the sooner you’re on it the sooner you can sign the ‘BCAR’ certificates which will likely require CIRI Registration Numbers. The next big issue coming down the line, he says, will be industrial relations, “but let’s get the Construction Contracts Act out of the way first”. A current issue, voiced by CIF President Michael Stone, is attracting young people into the industry, which is echoed by the MEBSCA President. “Education is vital to the industry,” he says “and I would say to members we need to do all we can to help the CIF in its drive to promote the industry to students for apprenticeships and professional careers” Ultimately, he says, construction is a good industry: “It has excellent training and is a great trade and profession.” C
June/July 2015 CONSTRUCTION 39
Helping you to protect your employees’ future • Help your employees to build up valuable retirement benefits while also providing low cost Sick Pay and Death in Service benefits • CWPS offers product features and benefits that meet the needs of employers and employees in the Construction Industry • Contact us for more information phone 01 4977663, visit www.CWPS.ie
CIS
Construction: The Numbers Game
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t the beginning of 2015, CIS published a report highlighting over 500 major projects which had either recently commenced or were due to start on-site during 2015, to a value in excess of €11bn. Since this report, the CIS research team has experienced a 26% increase in planning applications granted. Our estimated value of this increase in projects granted permission is in excess of €750m but this figure does not include extension durations. A comparative analysis of applications granted between Q1 2014 and Q1 2015 for major developments by sector are as follows: • Industrial +43% • Commercial +25% • Education +25% +31% • Hotel & Catering • Sport & Leisure +42% • Medical & Care Residential +82% • Residential +27% The following are examples of major construction projects taking place across Ireland at this time. In the commercial sector, plans have recently been announced for the €2.5bn ‘Project Cherry’ in South Dublin. The site, which is bigger than London’s Hyde Park will
include up to 7000 homes, a new town centre, leisure infrastructure and a business park. In Cork, the €50m Albert Quay office scheme is well underway, the €50m redevelopment of the Capitol cinema site has been approved and a contract has been awarded for the €53m convention and event centre at Brewery Quarter. In the industrial sector, Apple has lodged a planning application for a €850m data centre in Athenry, Co. Galway and work is underway on a €17m project to expand their existing facility in Hollyhill, Co. Cork. Facebook has purchased a site in Clonee Co. Meath for a proposed new €250m data centre. Activity is buzzing in the education sector with an investment of €50m in the Schools ‘Bundle 5’ Programme. A preferred tenderer is expected to be announced in Q3 2015. This will provide state-of-the-art facilities to Wicklow, Carlow, Wexford and Meath. The €8m teaching and staff accommodation facilities at NUI Maynooth has commenced on-site and will take approximately 14 months to complete. Looking at the medical sector, invitations to tender are currently being sought for Phase 1 of the €40m National Rehabilitation Hospital project in Dun Laoghaire. This project will see a 120 bed ward accommodation and therapy facilities being built. Work is expected to
commence in Q2 2016 and take 24 months to complete. The €650m National Childrens Hospital project is at a tender stage. A planning application for this project is expected to be lodged in June/July 2015. Construction work is expected to commence in Q1 2017 and take in the region of 36 months to complete. In the residential sector, over 100 separate housing projects are expected to commence as part of Phase 1 of the Social Housing Strategy. This phase will create upwards of 3,000 construction jobs and over 1,700 social housing units will become available by 2017. In Phase 1, a total of €312m has been allocated to social housing projects as part of the Government’s €3.2bn social housing strategy. Work is to commence this summer on a €13.8m residential development at Hazelbrook Square, Dublin 14 and will take in the region of 18 months to complete Looking towards the sports sector, work has commenced on-site for the €4m Phase 2a of Leopardstown’s Grandstand development. This is part of an €19m overall development scheme at the racecourse. C Visit www.cisireland.com and register for your free seven day trial to experience the timesaving and lead generating power of CIS Online. Or call us today at +353 1 2999 200
TENDERS Title Footbridge Redevelopment of Various Buildings Framework For Supply and Installation of Windows and Doors €5m - Social Housing Refurbishment €10m Architects Framework - Housing Strategy 2020 Bridge Inspection Contract 2015 - Consultants €11.1m - Primary Care Centre Fire and Gas Alarm Maintenance €40m National Rehabilitation Hospital - Phase 1 €20m - Building Contractors Framework Moneskea Group Water Scheme Bridge and Approaches Framework for Construction Projects Greater Than €5m Social Housing Developments €1.7m - Hospital Extension £3m Sports Centre Resurfacing Contract Metro Area 2015 £2.3m Carriageway Widening £9.4m Community Centre/Residential Development £9.1m Social Housing Development £6.2m Social Housing Development New Build Purpose Built Student Residential Accommodation
Awarding Auth Limerick City and County Council Dublin City Council Cork County Council ALONE Galway County Council Waterways Ireland Health Service Executive (HSE) South University College Cork (UCC) National Rehabilitation Hospital Health Service Executive Head Office Moneskea Group Water Scheme Donegal County Council Dun Laoghaire Rathdown County Council Cluid Housing Association Head Office Health Service Executive Head Office University of Ulster Waterford City and County Council Department for Regional Development Transport NI Apex Housing Association Apex Housing Association Fold Housing Association Queens University Belfast
County Co. Limerick Co. Dublin Co. Cork Co. Dublin Co. Galway Co. Fermanagh Co. Cork Co. Cork Co. Dublin Co. Galway Co. Clare Co. Donegal Co. Dublin Co. Dublin Co. Donegal Co. Derry Co. Waterford Co. Antrim Co. Derry Co. Antrim Co. Down Co. Antrim
Closing Date Friday, July 31, 2015 Tuesday, July 21, 2015 Wednesday, July 15, 2015 Friday, July 10, 2015 Friday, July 10, 2015 Thursday, July 09, 2015 Wednesday, July 08, 2015 Wednesday, July 08, 2015 Tuesday, July 07, 2015 Monday, July 06, 2015 Friday, July 03, 2015 Friday, July 03, 2015 Friday, July 03, 2015 Friday, July 03, 2015 Friday, July 03, 2015 Tuesday, June 30, 2015 Monday, June 29, 2015 Monday, June 29, 2015 Monday, June 22, 2015 Monday, June 22, 2015 Monday, June 29, 2015 Monday, June 29, 2015
June/July 2015 CONSTRUCTION 41
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15/05/2015 16:37:27
irish cement
CIF site visit to Irish Cement in Drogheda
Irish Cement staff with the CIF delegation at the Platin Works site visit, 28th May 2015
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ommitment to a sustainable future was the central message from a recent CIF site visit to Irish Cement’s Platin Works facility near Drogheda. Led by CIF Director General Tom Parlon, the delegation was taken on a tour of the facility by Ray Molyneaux, Platin Works Manager. Ray outlined how the future for Irish Cement lay in sustainable development. As an example of this commitment, in 2014 the company announced that alternative fuels have replaced 50% of the fossil fuels needed for cement production. This landmark achievement is part of a series of resource and process efficiency achievements in Platin works which have been facilitated by significant investments – most recently the €200 million Kiln 3 facility. Platin is one of the most modern and efficient cement manufacturing plants in Europe and the largest facility of its kind in Ireland producing cement for both the domestic and European markets, says the company. The Irish Cement runs two facilities, as well as Platin it has an operation in Limerick. The company celebrated its 75th anniversary in 2013. C
Ray Molyneaux, Platin Works Manager, briefs visitors on operations at the Drogheda facility
Alternative fuels Irish Cement’s carbon reduction strategy involves multi-million euro investments in the process technology required to substitute a proportion of the fossil fuels used in cement kilns with a range of specially prepared and appropriately permitted alternative fuels. “Our first step in implementing this strategy has now been taken with the substitution of a proportion of our coal usage at Platin Works with specially prepared Solid Recovered Fuel (SRF), the primary alternative fuel to be used by Irish Cement due to its availability and technical compatibility,” says the company.
June/July 2015 CONSTRUCTION 43
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sligo it
IT Sligo deal signals new path for CIF members
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nstitute of Technology Sligo and the Construction Industry Federation are collaborating on a scheme to enhance expertise in the building sector and fuel its national recovery. It’s a novel approach to up-skilling in a fast moving industry where hands-on know how and rapidly evolving technology are key to maintaining the highest international standards. A guiding principle of the joint initiative is the professional necessity and practical value of gaining academic qualifications. The arrangement, which applies only to CIF members, cuts the costs for those who take IT Sligo’s online BSc in Construction Management degree in the 2015-16 academic year. It is one of IT Sligo’s expanding portfolio of online industry-oriented courses. CIF members who register for a two-year course will receive a reduction of 10% on the usual fee, which amounts to a saving of €340 in the first year. The scheme encourages potential learners, many of whom may never have seen themselves as “degree material”, to build on their experience by gaining qualifications that the sector and clients increasingly demand. For many CIF members the move may prove to be the start of a longer academic journey as it is likely that some will decide to progress to other specialised online studies at IT Sligo. “As this sector continues to recover, it is expected that the lack of highly skilled workers in the construction sector will become a constraint to economic recovery and development,” says Trevor McSharry, Head of the Department of Civil Engineering and Construction “IT Sligo is delighted to collaborate with the CIF in promoting the up skilling of our current construction sector workforce. “I hope this is just the start of a longer partnership with the CIF that will open the door to its members to the full range of part-time study programmes at IT Sligo.” IT Sligo is to the forefront of emerging
CIF members can now avail of a 10% discount to undertake IT Sligo’s BSc in Construction Management
’’
breakthroughs in the delivery and assessment of online students and its reputation as a provider of online learning across a wide range of disciplines has been recognised by the Government and industry. The Institute was presented with a prestigious 2012 “Taoiseach’s Public Service Excellence Award” for its online delivery. Online learning programmes are designed for students who want to study part-time at a pace that matches their work life balance. The rewards of study are many: not alone, a sense of personal fulfilment but also the knowledge, ability and confidence that comes with success. IT Sligo delivers more than 40 online part-time programmes to around 1,400 students worldwide, which underlines the growing popularity nationally and internationally of • Graduates of the BSc in Construction Management distance and online learning. Trevor McSharry says: “People are can progress to the BSc looking to up-skill in a convenient way (Hons) in Construction at home or in their office, with no time Project Management, wasted in unnecessary commuting. which is accredited by We offer a broad range of online part the Chartered Institute time programmes from certificate of Building (CIOB) or the to master’s level, targeting men and BSc (Hons) in Quantity women in the construction and project Surveying, accredited by management sectors, both nationally the Society of Chartered and internationally.” Surveyors of Ireland Robert Butler, CIF Head of Training (SCSI) and the CIOB. & Development believes the availability • IT Sligo also have related of this type of construction online offerings at Post Grad learning with strong tutor supports level (Level 9) in project will provide significant opportunities management, which allow for those construction workers, such graduates to complete as tradesmen and foremen who wish the Project Management to advance their career opportunities Institute (PMI) CAPM and by returning to adult education. The PMP exam potential opportunities for career • As a result of the skills path development for experienced deficits in these areas, construction workers with relevant the Government have approved all three of these qualifications is now evident within the Irish construction sector. This programmes through programme will allow experienced Springboard 2015. construction personnel, upon • The Springboard initiative completing the programme move into provides free up-skilling construction management bring with in higher education for them, applicable knowledge beneficial unemployed people with to those employers wishing to develop a previous history of their management teams into the employment. future. • In addition IT Sligo runs Most online courses area two-year a Post Grad Diploma part-time, with students learning and in Road Maintenance communicating using web-based Engineering and Network resources, and sometimes, learning Management which was sessions at the Institute. C developed in partnership For further information go to www. with the Local Authority itsligo.ie or email admissions@itsligo.ie Services National Training Group (LASNTG).
June/July 2015 CONSTRUCTION 45
Ardmac is an international interior contractor specialising in the construction of high value working environments for global brands
Contact us at: info@ardmac.com IRL: +353 (0) 1 894 8800 UK: +44 (0) 161 866 8086 BE: +32 (0) 1022 9705
www.ardmac.com
@ardmacltd
Dublin | Craigavon | Manchester | London | Brussels
profile
Ardmac makes its name in cleanroom construction
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rdmac specialises in the construction of high value working environments for global brands, specifically in commercial fit out and cleanroom construction sectors and employs over 280 people. Almost 40 years on since its inception, the company operates as a truly international company with offices in Dublin, Craigavon, Manchester, London and Belgium as well as business partnerships in the USA and Asia. “There is no doubt that we have come along way in that time, but there are certain values which have remained constant to the business,” says Ronan Quinn, Ardmac CEO. “We have always sought to employ the best possible people, across all aspects of our work, and have focused on constantly improving our processes and looking at better ways to share our significant expertise for the benefit of our customers,” adds Quinn. In his 15 years with the business, Quinn acknowledges that the company had to think differently about its strategy not only in terms of business sector but in terms of geography. “When the recession took hold we had to turn our attention away from some business sectors which were previously solid for us, namely the healthcare and finance sectors which were particularly hit hard, and refocus our efforts on sectors where capital spend was still strong - cleanrooms, pharmaceutical, medtec and data centre markets – areas where we had already established a strong track record, but which required a different geographical focus.” The company augmented its presence in the UK market, by opening an office in London complementing its well established Manchester office, offering greater support to its UK customer base and increasing business development activities. “We have an exceptionally skilled workforce and work in specialist areas in controlled environments. We were able to transfer these skills to other sectors, such as automotive and aviation in the UK, and then focus on the biopharma and data centre markets, specifically in the Benelux region,” he says. In support of this expansion, the company now has an office in Wavre, Belgium, primarily serving those sectors. The company now boasts a growing client list which includes Pfizer, Eli Lilly, Johnson & Johnson, GSK, Vodafone, Next, Savills, HSBC, Aviva and Merrill Lynch - all international Blue Chip companies and high street brands. Recently Ardmac has completed a number of high profile projects in both Ireland and abroad including the refurbishment of two iconic listed buildings in Manchester as well as the fit out of the new offices of the School of Pharmacy in the Royal College of Surgeons in Dublin. Recent cleanroom projects across the UK and Ireland have included
work with Eli Lilly, Allergan Pharmaceuticals, DePuy, Jazz Pharma and FujiFilm. In Europe, Ardmac has been the cleanroom contractor of choice at GSK Wavre for over 6 years, and the team is also currently working on a number of other large-scale biopharma projects including Teva in Holland and Janssen in Belgium together with datacentre projects for major corporates. It comes as no surprise then that 2014 has been the most successful in the history of the company, turning over €82million – a year-on-year growth of 36%. “The Irish construction industry is experiencing a level of growth, which is a positive change and hugely encouraging, given recent difficulties. However, the growth we have enjoyed in the last 24 months is simply not sustainable and our senior management team sees 2015 as a period of consolidation, integrating new staff and taking stock before pursuing the challenges of 2016 and beyond. “We employ 280 plus people working across a 5 office network. Good people are hard to find, particularly in the Irish market, which has suffered an ongoing brain-drain and I believe there is a responsibility on those who can incentivise a returning workforce to do so – by making Ireland an attractive and sustainable place to work and live again,” he concludes. C
June/July 2015 CONSTRUCTION 47
roadstone Larry Byrne (right), Managing Director of Roadstone, with CIF Director General Ton Parlon
Roadstone’s fabric first approach for compliance with Part L 2014 was the fourth lowest year of house completions since records began in Ireland in 1970. Since then, our population has increased by 50% and it’s no secret that current demand for housing, particularly homes suitable for families, has grown right across the country. Innovation will be central to Ireland’s hopes of achieving the target of 25,000 new builds per year in order to meet the needs of the country’s changing demographic. The focus on improving energy efficient building methods means advances are being made in reducing our reliance on fossil fuels while also reducing energy bills for end users including homeowners, businesses and industry. As the largest manufacturer and distributor of construction products in Ireland, Roadstone is committed to product development and innovation that is aimed at exceeding national energy efficiency and performance standards. Our dedication to the delivery of a quality built environment has led us to develop the Thermal Liteblock System – a new concrete block innovation which not only enhances the Roadstone masonry product range but also provides those in the construction sector with a cost effective solution to comply with the revised building regulations - in particular Part L, which relates to thermal bridging. The Roadstone Thermal Liteblock was specially developed for use with traditional masonry after extensive research aimed at producing a cost-effective solution for architects, engineers, assigned certifiers and building contractors to comply with Part L.
Innovation
Manufactured in Ireland, the Roadstone Thermal Liteblock is a robust and durable, lightweight block which can be used in conjunction with Roadstone’s standard Concrete Block range, to improve thermal conductivity by an impressive 300%. Made from a special mix which includes lightweight aggregates to achieve conductivity values of 0.33W/mK, the
At a time when construction professionals are continuing to keep a close eye on costs, regulators are focusing their attention on energy efficiency for the future. Here, Larry Byrne, Managing Director of Roadstone, explains a new product innovation that he says ticks both boxes.
Thermal Liteblock is 40% lighter than a standard block - weighing just 11.5kg – and is also CE marked 2+. In addition to it’s lightweight characteristics, its key purpose is to mitigate heat loss at thermal bridges. The beauty of this innovation is that the Thermal Liteblock is required only at targeted locations in the build, which means it can be used in conjunction with standard concrete blocks to provide a cost effective solution to the construction of new buildings while also allowing greater design flexibility. We anticipate that up to 15% of the total concrete blocks required per build will be replaced by Thermal Liteblocks at strategic points. Importantly, we have established a technical support services team, which provide a set of accredited details and fully ‘y’ value calculations where required by architects, engineers, assigned certifiers and building contractors. Our tests have shown that using the Thermal Liteblock System improves the Building Energy Rating (BER) of a building from A3 to A2 across a number of house types. In terms of practicalities on site, the Thermal Liteblock has a distinctive heather colour to facilitate traceability and requires no special handling or treatment compared to standard concrete blocks.
Future
The Irish construction industry currently faces many challenges – the rate of project tendering is slow; the access to credit, while improving, remains a major issue and the flow of apprentices coming through the ranks is only a trickle at present. With the Thermal Liteblock System, Roadstone has charted a course towards improved environmental efficiency – based on investment and innovation – that will underpin our role as the backbone of sustainable construction. We look forward with confidence to facilitating those in the industry in complying with Part L in a cost-effective way. C
June/July 2015 CONSTRUCTION 49
RCT
Relevant Contracts Tax – How does it apply to you? Dominic O’Shaughnessy, a chartered tax advisor with William Fry, outlines the important points of Relevant Contracts Tax. RCT applies to those engaged in the construction, meat processing and forestry sectors. RCT is a withholding tax which applies to payments made by a principal contractor to a subcontractor at rates of 0%, 20% or 35%. The applicable rate of RCT depends upon the compliance record of the subcontractor. For every misapplication or non-application of RCT, a penalty applies to the principal contractor. Penalties range in severity from 3% to 35% of the payment amount. To whom in the construction sector should RCT apply? Specifically RCT applies to those engaged as property developers, main contractors and subcontractors. Property developers generally act as the principal contractor for the purposes of RCT and must withhold tax from relevant payments made to a subcontractor. Subcontractors may in turn act as both principal and subcontractor if they further engage subcontractors to carry out construction operations on their behalf.
How is the ongoing administration of RCT implemented?
The following may be carried out online via ROS: • registration; • notification of contracts and payments; • receipt of deduction authorisations stating the rate of RCT to be withheld; • filing of RCT returns; and • remitting RCT withheld from subcontractor over to Revenue. Returns are generally filed on a monthly basis and the tax withheld on payments to a subcontractor must be remitted to Revenue by the 23rd day (when filing via ROS) of the month following that in which the deduction authorisation was received. Where 0% tax has been withheld, then a ‘nil’ return should file automatically on ROS.
Are there any concessions from RCT applying to Does a ‘de minimis’ amount apply? No ‘de minimis’ applies, except in limited circumstances. RCT applies a property developer? A number of specific reliefs or concessions apply such that a property developer is not considered a principal contractor for the purposes of RCT, namely: • If developing a building for their own use or the occupation of their employees; or • If developing a building with the sole intention of letting it on a short-term basis (Revenue defines this as being less than 35 years). This concession does not apply where the property developer/ investor would be a principal for RCT purposes for other reasons. It does not apply therefore where the property developer is connected with a construction company or a company engaged in land development.
Would RCT apply to professional or design services?
Generally, RCT does not apply to services provided by professional consultants, such as civil/structural engineers and architects. Where a single invoice is issued for a contract involving an element of fieldwork and professional/design services and the fieldwork represents the majority of the contract value, then RCT shall apply to both the fieldwork and professional/design services.
How to register for RCT as principal contractor or subcontractor?
A company registering as principal contractor for RCT must be registered for VAT. Online registration is available via the Revenue Online Service (“ROS”).
to large main contracts and small works contracts alike. Contracts for repair work and repair and maintenance work fall within the requirements of RCT. Contracts for maintenance only however do not. Revenue issued guidance that states the following are construction operations to which RCT should apply: • repairs including the replacement of constituent parts such as replacing doors throughout a property or windows throughout a property. However the replacement of one door or window should not be subject to RCT; • the replacement of a fire alarm system. However the replacement of a number of fire extinguishers in a building should not be subject to RCT; and • the hire of plant and machinery such as a JCB with an operator used as an integral part of an overall construction operation. The hire of machinery without an operator is not a construction operation and hire payments made in these circumstances are not subject to RCT. The repair or alteration must be “material” or the construction operation must be performed as an integral part of an overall construction operation. Unfortunately, there is no definition as to what constitutes “material”, and as such there remains some confusion as to whether RCT applies for certain small works. A common sense approach should be adopted.
What should be included on a VAT invoice submitted to a principal contractor in the construction sector? The invoice must contain the narrative “VAT on this supply to be accounted for by the principal contractor” and include the same information that would appear on a normal VAT invoice, but exclude the VAT rate and VAT amount. C
June/July 2015 CONSTRUCTION 51
CIF members asked to help homeless charity Following a decision made at the recent Executive Body meeting on an initiative led by our President, Michael Stone, the Construction Industry Federation (CIF), in collaboration with the Peter McVerry Trust, are proposing a refurbishment project to provide long term accommodation for homeless people. The Peter McVerry Trust is a homeless and housing charity established by Fr Peter McVerry in 1983. Today the charity provides a wide range of supports and services to people at risk of, or experiencing, homelessness. The complex needs of those with whom they work is reflected across the services which at present include; prevention, homelessness, housing, drug treatment and U18s residential. In 2014 the charity worked with 4,460 individuals and provided 2,357 participants with residential placements. You can view the Peter McVerry Trust website on www.pmvtrust.ie The development, located at Hogan Court in Dublin 2, consists of a vacant building comprising 12 individual units. These units are in need of complete refurbishment and upgrading to make them habitable before Christmas, along with some external works to the site.
52 CONSTRUCTION June/July 2015
“We are depending on the involvement and generosity of our members to undertake this work,” says CIF Director General Tom Parlon. “We are seeking your support in the form of a contribution which can be either a monetary donation or the provision of your services and expertise.” Over the past year the number of homeless people needing and accessing accommodation has been increasing. This partnership initiative will make a meaningful and effective contribution to the Peter McVerry Trust in its valuable work, while the CIF is also committed to continuing to put pressure on Government to tackle homelessness and the social housing requirement. “We would very much appreciate your participation in this project and you can be assured that your contribution will be put to very good use.” If you wish to supply services or expertise in the form of labour or materials, you can do so by registering your interest by emailing Orla Brady at obrady@cif.ie before the end of June. Your interest will be logged and you will be contacted in due course.
University College Cork have announced that from September, they will re- commence the Diploma in Safety, Health and Welfare at Work, with specific emphasis on the construction industry. CIF welcome this news as the programme ran successfully for a number of years until the recession hit and the industry went into decline. Now, with the industry showing signs of recovery, this programme will help to upskill professionals in the sector in order to allow them to better manage the challenges of safety and health.
DIT
CIF members to benefit from DIT agreement
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n recent times the CIF Manpower Taskforce has paid a lot of attention to the growing need for the education of construction workers at every level, and the provision of a progression route from site worker to site manager in particular. In response to its request, Dublin School of Architecture in DIT is pleased to announce a series of discounts for the Bachelor of Technology (Ord) Construction Site Management degree for CIF members. This well established, part-time (Level 7) degree programme is specifically designed for anyone qualified in a construction trade, such as carpentry or joinery, bricklaying, plastering, painting and decorating that is looking to add additional skillsets and an academic qualification in site management to progress his/her career. The Construction Site Management programme is delivered over three academic years, requiring attendance of one day and one evening per week. The programme is also accredited by the Chartered Institute of Building, and the Institute of Clerks of Works and Construction Inspectorate. The managers of the programme know that applicants have generally gained significant knowledge and experience since their original qualifications. Therefore that existing knowledge and practical experience is recognised as a component within the programme structure and contributes to the final award. The programme modules are structured to give a progressive spread of learning throughout the three years. The programme focuses on construction technology, construction management, building quantities and contract administration, surveying and levelling, health and safety and academic research. The current Level 7 degree programme also allows a clear progression route for those seeking to upgrade their knowledge and qualifications from older higher certificate & diploma programmes in site management that are no longer taught in Ireland. These older programmes are the Level 6 higher certificate in Construction Site Management (validated by DIT) and the Site Management Education and Training (SMETS) programme (validated by CIOB). Dublin School of Architecture is offering all candidates who are members of the CIF (or employed by members) a discount on their fee. It is intended that the discount will rise further if the number of CIF student across the whole programme increases to a specific threshold. This proposal is a strong statement of DIT’s engagement with CIF and commitment to construction site management in Ireland. C
To find out more about this three-year part-time programme, commencing September 2015 contact: Joseph Little, Assistant Head of School Sean Smyth, Programme Chair Aileen Mullane, School Administrator Dublin School of Architecture Dublin Institute of Technology Yarnhall St (off Bolton St), Dublin 1 Tel: 01-402 3690 eM: dsa@dit.ie Application deadline: 26th July, 2015
June/July 2015 CONSTRUCTION 53
The winners on the night
CIOB Manager of the Year Award The Chartered Institute of Building 2015 Construction Manager of the Year Awards took place recently with Gem/Purcell Construction Manager, Ronan Moore, receiving the top award for his management of the restoration and rebuild of St Mel’s Cathedral in Longford. The adjudicators stated the restoration of this magnificent building required exceptional construction management skills and his management of the combination of modern construction techniques and traditional craft skills demonstrated, without any shadow of doubt, how the construction industry in Ireland has the competence and capability to respond to the needs of its clients no matter how challenging. Ronan led his site team of specialist craftsman and artists with passion and a ‘can do’ attitude. He showed an exceptional level of technical expertise and good humour from beginning to end of the project. The complexity and scale of the various technical aspects of the project were enormous. The judges cited one example where 20 plasterers were employed for seven months to complete the magnificent ceiling. Similarly, it took one and half weeks to tune the new one million euro pipe organ from Italy. All works were completed under the close scrutiny of the residents of Longford and experts from a wide range of disciplines and it was as a result of Ronan’s ability to
54 CONSTRUCTION June/July 2015
expertly manage all aspects of this project that he walked away with the top prizes of the evening in the form of a gold award in his category and overall title Construction Manager of the Year. The adjudicators said the standard and quality of entries was of an exceptionally high standard with each winner truly deserving of their award.
The winners in each category are: Category 1.1 (Projects valued up to €5 Million) Presented by: Mr Philip McMurray of Sig Interiors • Gold medal winner: Pat O’Connor of Manley Construction for Solas Bhride in Kildare • Silver medal winner: Damien Manley of Manley construction for Arc Cinema in Drogheda
Category 1.2 (project from €5 €10 Million)
Presented by: Mr Raymond Acheson from Acheson-Glover • Gold medal winner: James O’Toole of Walls Group for the Morrison Hotel in Dublin • Silver Medal winner: Derek McCaffrey of Collen Construction for Blackrock further Education institute
Vice President of the CIOB, Chris Chivers FCIOB, presents Ronan Moore with the 2015 Construction Manager of the Year award
• Bronze medal winner: John Sweeny of Collen Construction for the National Film School in Dun Laoghaire • Bronze medal winner: Mark Allen of Walls Group for the National Ambulance control centre in Tallaght
Category 1.3 (projects from €10 €30 Million)
Presented by: Mr Kieran Kennedy of E-Tec • Gold medal winner: Ronan Moore of Gem/ Purcell for St Mel’s Cathedral in Longford • Silver Medal winner: Liam Flynn of Collen Construction for Fr Scully House in Dublin • Bronze Medal winner: Joe Hanlon of Walls group for the Mater Private hospital
Category 1.4 (Project over €30 Million)
Presented by: Mr John Keegan of Xtratherm • Gold medal winner: Dave Cotter of Sisk for Diageo’s New brew house in St James’s Gate • Gold Medal winner: Darren Devane of BAM for N7 Newlands cross flyover
Construction Manager of the Year 2015
Presented by: Mr Chris Chivers FCIOB, Senior VP CIOB • Ronan Moore of Gem/Purcell for St Mel’s Cathedral in Longford
CIF training and education programmes for June to August 2015 August JULY
CIF Training & Development
June
Course Title/Venue Course Code
Start Date
End Date
Course times
Scaffold Design course SDC CIF Construction House, 2585 Canal Road, Dublin 6 CIF Core Safety Management Programme Renewal/CPD CSMP CIF Construction House, 2535 Little Island, Cork. CIF Core Safety Management Programme Renewal/CPD CSMP 2536 CIF Construction House, Canal Road, Dublin 6 PSDP CIF IOSH Project Supervisor Design Process CIF Construction House, 2537 Canal Road, Dublin 6 SI CIF Management & Inspection of Scaffolds CIF Construction House, 2538 Canal Road, Dublin 6 Project Supervisor Construction Stage PSCS CIF Construction House, 2539 Canal Road, Dublin 6 CIF IOSH Managing Safety in Construction FAST TRACK MSIC CIF Construction House, 2540 Canal Road, Dublin 6 MSIC CIF IOSH Managing Safety in Construction FAST TRACK Radisson Hotel 2576 Galway SMSTS SMSTS 2593 CIF Construction House, Canal Road, Dublin 6 IOSH Project Supervisor Design Process PSDP CIF Construction House, 2541 Canal Road, Dublin 6 CIF Core Safety Management Programme Renewal/CPD CSMP 2542 CIF Construction House, Canal Road, Dublin 6 CIF IOSH Managing Safety in Construction FAST TRACK MSIC CIF Construction House, 2543 Dublin 6
19th. June 2015 19th. June 2015 Friday Friday
08.30am – 12.30pm
19th. June 2015 19th. June 2015 Friday Friday
08.30am – 13.00pm
24th. June 2015 24th. June 2015 Wednesday Wednesday
08.30am – 13.00pm
25th. June 2015 26th. June 2015 Thursday Friday
08.30am - 17.00pm
26th. June 2015 26th. June 2015 Friday Friday
08.30am – 17.00pm
2nd. July 2015 16th. July 2015 Thursday Thursday
08.30am – 17.00pm
2nd. 3rd. 9th. & 10th. July
13th. July 2015 Thurs. & Friday
09.30am - 16.30pm Monday
1st. 2nd. 8th. 9th. July
13th. July 2015 Wed. & Thurs.
09.30am - 16.30pm Monday
13th. July 2015 17th. July 2015 Monday Friday
09.30am – 16.30pm
16th. July 2015 17th. July 2015 Thursday Friday
08.30am - 17.00pm
17th. July 2015 17th. July 2015 Friday Friday
08.30am - 13.00pm
11th. August 2015 Tuesday
8th. September 2015 Tuesday
09.30am - 16.30pm
IOSH Project Supervisor Design Process PSDP CIF Construction House, 2577 Canal Road, Dublin 6
13th. August 2015 Thursday
14th. August 2015 Friday
08.30am - 17.00pm
CIF Core Safety Management Programme Renewal/CPD CSMP 2544 CIF Construction House, CIF Offices, Canal Road, Dublin 6 CIF Core Safety Management Programme Renewal/CPD CSMP CIF Construction House, 2545 CIF Offices, Little Island, Cork. SMSTS SMSTS CIF Construction House, 2594 Canal Road, Dublin 6
21st. August 2015 Friday
21st. August 2015 Friday
08.30am - 13.00pm
28th. August 2015 Friday
28th. August 2015 Friday
08.30am - 13.00pm
31st. August 2015 Monday
4th. September 2015 Friday
09.30am – 16.30pm
June/July 2015 CONSTRUCTION 55
INDUSTRY NEWS Tegral unveils “strongest-ever” roofing slate
Tegral, a market leader in roofing and Ireland’s only manufacturer of fibre-cement roof slates, recently launched Thrutone ENDURANCE product, Ireland’s strongest-ever slate. Thrutone ENDURANCE is the highest density slate in the Irish market which means it offers the best resistance to Ireland’s famously volatile weather, with the extra fibres giving the product its highest flexural strength and a specialist silicone paint providing a unique water repellence. The slate is accredited to the highest environmental standard BES 6001 and Tegral is the only Irish manufactured roofing product to achieve this rating. The slate is an evolution of Tegral’s best selling ThrutonePlus slate , but with a series of major product enhancements achieved at a cost of over €2m. Following years of intensive product development and rigorous testing*, Thrutone ENDURANCE can now claim the following product benefits: • Highest density slate on Irish market which means the best frost-resistance • Extra fibres to give the highest flexural strength • Unique silicone paint to provide the best waterrepellence • Improved paint application & rigorous testing to ensure the highest quality standards • BES 6001 accredited – environmentally sustainable
As well as being “Irish made for Irish weather” and an elegant and beautifully designed product to dress any roof, Tegral Thrutone ENDURANCE comes with a 20 year colour and 30 year structural guarantee, giving roofers and home owners the ultimate peace of mind. Speaking at the profduct launch, Paddy Kelly, Managing Director of Tegral said: “ThrutonePlus has been our best selling slate product for decades, and we’ve invested over €2m to enhance it with some transformational improvements to make it stronger
and more durable. The end result is Thrutone ENDURANCE, and we’re so excited to finally be in a position to launch this game-changing new product to the market. “Feedback so far from roofing contractors and merchants is extremely positive, and pre-orders have been very encouraging. Between product improvements and delivery to market, we’ve invested over €2m in developing Thrutone ENDURANCE; it represents our biggest NPD innovation in over 10 years.” For more info log onto www.tegral.com
Growth in construction jobs market A continued recovery in the construction sector in 2014 was evident with a jump in the number of vacancies notified through Jobs Ireland, the government’s jobs portal, according to a report published recently. Growth was particularly evident for electricians, plumbers and carpenters after years of low activity. This increase was in line with an overall growth of 8% in the
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number of vacancies being notified to Jobs Ireland and 12% to IrishJobs.ie in 2014. For the construction sector employment figures produced by the CSO show above average growth occurring for the skilled trade, which is being reflected in today’s publication. Commenting on the report, Damien English TD, Minister for Skills, Research
and Innovation said: “the trends shown in the report strongly mirror the economic recovery that we are experiencing. It is essential that we continue to monitor where vacancies are arising, so that these valuable insights can inform jobseekers, our guidance and education and training sectors on where the jobs of today and the future arise.”
Groundforce expands in Scotland
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ince opening a depot in Dyce last year, Groundforce has experienced considerable growth in the region, and to accommodate further expansion has moved to significantly larger premises at Mugiemoss. Groundforce plan to turn the new one-acre site into a hub for its operations in North East Scotland. With new larger warehousing facilities a much wider range of products and equipment from across the entire Groundforce product portfolio will be available to hire. The new site also includes office accommodation with meeting and conference facilities, which will be used to host industry seminars, training days and introduce new products and innovations, for the convenience of their customers in Scotland. Groundforce has also expanded their technical team in Scotland, having recently appointed Jonny MacNeil as technical representative. Based in Aberdeen, Jonny has a wealth of experience in the groundworks sectors, a qualified civil engineer with over 20 years’ involvement of working with local and national contractors, with an indepth knowledge and understanding of current practice and methods of construction. Richard Cherrie, Groundforce Shorco regional sales director in Scotland comments: “This new location will enable us to further expand our product offering as well providing new additional services to our customers in the North East of Scotland, whom we would like to thank for their continued support.”
Chadwicks Kilkenny wins national award Chadwicks has won both the national and Leinster category awards in the national Octabuild Builders Merchant Awards 2015. Tony Duggan, Manager of the Ormonde Retail Park branch, said: “We’re delighted to have been chosen as the National Award winners at the Octabuild Builders Merchants Awards. We’re just a small part of a bigger organization and it’s an honour to win this award. We enjoy great customer loyalty from the market, and we believe this is based on excellent customer service, comprehensive stocks, and competitive pricing. “ This was the 19th Octabuild Builders Merchant Awards. The companies who organise the awards as Octabuild are; Gyproc, Glennon Brothers, Dulux Paints, Irish Cement, Kingspan Insulation, Sanbra Fyffe, Tegral and Wavin. Between them the Octabuild companies have over 650 years manufacturing experience in Ireland, directly employ over 1,200 people
here and have over 20,000 quality products available every day for Irish builders merchants. Speaking at the awards the newly elected Chairman of Octabuild Tadhg Donohoe, said, “All of the companies who were nominated for these awards are among the best in the business. They have been judged in these awards on their customer service, business focus, management and premises.” This year 12 category awards were presented. A Lifetime Achievement award was also made on the night to Eddie Kelly, Managing Director, Grafton Merchanting. Introducing the awards Taoiseach Enda Kenny said: “employment in the construction sector is up nearly 20,000 in the year reflecting a return to more sustainable levels. The Government is supporting a recovery in the construction industry but only if it is based on the highest international standards in quality, excellence and trust.”
Tony Duggan, Manager, Chadwicks, Ormonde Retail Park, Kilkenny (right) receiving the Octabuild National Builders Merchant of the Year Award from Tadhg Donohoe, Chairman, Octabuild
He congratulated the Octabuild members who he said: “make a significant contribution to the Irish building and construction industry, and will continue to contribute to its growth and to its strength.”
June/July 2015 CONSTRUCTION 57
Clancy Construction industry award 2015
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eclan Fitzpatrick and Nigel Cooke, both directors from Clancy Construction, were in WIT recently to present the annual Clancy Construction Industry Awards. Now in their fifth year, the awards recognise excellent performance during industrial placement by students of the BSc (Hons) in Construction Management & Engineering programme. The overall winner was David Hoban from Williamstown in Waterford, who worked on the construction of a new juvenile detention facility in North County Dublin. Runners-up included Martin Codd who worked on a new secondary school and motorway services station, both in Gorey Co. Wexford; and Sean Kenny, who was an assistant superintendent on a multi-million dollar office refurbishment in the heart of Manhattan with JT Magen. Each of the students gave a presentation of their seven-month industrial placement experience, which highlighted the skills gained through this invaluable part of their studies. Both Declan and Nigel were impressed with the high quality of work presented by
Nigel Cooke (left) and Declan Fitzpatrick (right) present the 2015 Clancy Construction Industry Award to winner David Hoban (centre)
Ireland. Programme Leader, Brian Graham congratulated David, Martin and Sean on their achievement and thanked Clancy Construction for their continued support of the award. He also noted that the current cohort of Construction Management & Engineering students on industrial placement are working in locations including; New York City, London, Dublin, Cork and the South East.
the students and commended them on a fine performance. In wishing the students well in their future careers, Declan and Nigel struck a positive outlook for the construction industry in Ireland, indicating increased activity in the marketplace for the foreseeable future. After a number of difficult years, Clancy Construction are continuing to grow their business and are at the forefront of delivering prestigious projects throughout
New concrete guidance note published NSAI (National Standards Authority of Ireland) has announced the publication of an informative National Annex to I.S. EN 206:2013 ‘Concrete - specification, performance, production and conformity’. Introduced on 11th May 2015, the National Annex NA:2015 to I.S. EN 206:2013 provides the latest Irish guidance on the use of concrete for structures cast in situ, precast structures, and structural precast products for buildings and civil engineering structures. The use of the National Annex is essential in ensuring that I.S.EN 206 2013 is appropriately applied in Ireland and will provide additional guidance on requirements in the standard. Commenting on the publication, Maurice Buckley, Chief Executive, NSAI said:
58 CONSTRUCTION June/July 2015
“The publication of the National Annex to I.S. EN 206:2013 is a positive step forward for those working within construction. Ireland’s construction sector has the potential to create jobs, both locally and nationally. It is also a vital factor of competitiveness in the economy as it provides the infrastructure and buildings on which most sectors rely. Its dual role makes it a vital measure of success as the country returns to growth and competitiveness in the future.” NA: 2015 supersedes that guidance previously published in the National Annex to I.S. EN 206-1:2002. The main items subject to revision in the 2013 revision to the EN standard and accompanying Irish National Annex include: · Adding application rules for fibre
·
·
· · ·
concrete and concrete with recycled aggregates; Revising k-value concept for fly ash and silica fume and adding new rules for ground granulated blastfurnace slag; Introduction of principles for the performance concepts for the use of additions, e.g. equivalent concrete performance concept and equivalent performance of combinations concept; Revising and adding new concepts for the conformity assessment; Including EN 206-9 “additional rules for self-compacting concrete (SCC)”; Including additional requirements for concrete for special geotechnical works (Annex D).
industry news
Achieving A3 rating with Firebird Arising from the new building regulations, one of the many additional sections to be enforced is part L (2011): the stipulation that a new building must show a 60% improvement in energy efficiency. The completion of a provisional BER assessment is the most commonly used method to demonstrate compliance with the new regulations. The DEAP software that the BER assessor completes to calculate the energy assessment of the dwelling, can be a complex package to undertake. The engineering team within Firebird Heating Solutions, working with architects, engineers and BER assessors, have completed a vast number of assessments from house plans and are achieving at least an A3 rating (2011 TGD L) on these dwellings with Firebird products as the heating source. Firebird’s recently launched Enviromax Blue Supreme, with an unbeatable seasonal efficiency of 97.4%, can greatly contribute
towards the BER ‘A’ rated home. This innovative oil boiler is the number one rated oil boiler both on the SEAI HARP database and combines the latest blue flame burner technology with over 35 years of manufacturing excellence. Liam Maddock, Technical Manager Firebird, notes: “It is key that the design and build team speak with the client on the various heating options available. It is the responsibility of the team to ensure the client obtains the dwelling they want and a key factor to this is that they are given heat and comfort, especially when they require it. “We are all aware that the regulations require us to build more energy conscious houses with respect to insulation, heating and orientation. At Firebird, we are confident that we are the best in the oil heating industry in Ireland and that we have the best products to give you the heat you need when you need it.” With Firebird’s vast range of quality products, the client/ householder has choice. The typical arrangement outlined is a high efficiency condensing oil boiler, solar thermal and wood inset stove.
Domestic insulation trainer awarded prestigious City & Guilds medal Pictured with David is his wife Audrey and their thirteen-year-old son Liam
Westmeath local, David Coyne was recently awarded a City & Guilds medal for excellence. David is a domestic insulation trainer in CDETB Ballyfermot Training Centre and received the award for his outstanding commitment to training. David began his career training as a
bricklayer in Ballyfermot in 1987 and was awarded a City & Guilds Gold Trowel for his achievements in 1991. He has completed two degrees – in Training & Education and Construction Technology, and is also a certified passive house designer. Over two million people globally study
for or train people for a City & Guilds qualification each year, and the most outstanding trainers and learners are awarded medals. 102 medals were awarded overall globally and four learners and trainers from Ireland received awards this year.
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H
HSS power the complete power solution
SS Hire, a national supplier of tools, equipment and related services, has been serving business since 1957. The company has an established network of 24 branches strategically located across Ireland. The HSS Power venture complements existing extensive fleet, enabling it to offer a wider range of large capacity and specialist generators to provide a more comprehensive service in the growing market for temporary power. Michael Killeen, Managing Director of HSS Hire Ireland & Scotland and the Laois Hire Group says: “It enables us to enhance our position as a market leader in diesel generator hire here in Ireland, building on the strong customer base that has been nurtured during the last 50 years and providing a new specialised platform to grow its business.” HSS Power, as part of the HSS Group, can now provide for power needs from 20kva to a massive 1250kva on short or long term contracts as well as supplying a wide range of power accessories. HSS Power also boosts a highly specialised team to support the new range of power capabilities. This specialist team provides a complete nationwide service covering all of Ireland, with many years of experience in the generator
hire sector. Adrian McBride, General Manager of HSS Power says: “We consistently deliver on any temporary power needs, with specific experience in critical continuity environments for national events, construction, manufacturing, windfarms, factories, banking, hospitals, and health care industries.” HSS Power offers more than just generator hire. McBride explains that: “As part of our specialist division we also offer fuel management services powered by the latest telemetry with comprehensive nationwide support and technical expertise. The synchronising technology and the latest silenced generators reduce fuel emissions and carbon footprint.” Michael Killeen concludes, that hire success is all about “continually adapting to the needs of the customer with the aim of providing a ‘one-stop’ hire needs across all industries with innovative solutions”. HSS Hire firmly believes that HSS Power reinforces their driving ambition to provide an unrivalled hire experience. For further information contact the team by telephoning: 1800 815 017
Cutting energy waste will save €1.8bn Households and businesses could save €1.8bn annually by being more energy efficient. Energy efficiency will also reduce Ireland’s reliance on imported fossil fuels and create 2,000 additional jobs. That is according to the Sustainable Energy Authority of Ireland (SEAI) who recently launched its report ‘Unlocking the Energy Efficiency Opportunity’. The analysis indicates that delivering these energy efficiency improvements could also boost the Government balance sheet by around €1 billion. Speaking at the launch, Dr Eimear Cotter, Head of Low Carbon Technologies at SEAI said: “Already Ireland is saving €700 million a year through greater energy efficiency. It is good for households, good for businesses
60 CONSTRUCTION June/July 2015
and good for the economy.” Key points from the report include: • Investing in energy efficiency, sufficient to bridge the gap to the 2020 energy efficiency target, will bring savings of over €11 billion. These benefits flow from an investment of over €3 billion which delivers a Net Present Value (NPV) – that is, net savings - of €8 billion. • As of 2013, Ireland has achieved around 38% of the savings required to meet the 2020 target. The remaining 62% of savings must be met by increased effort in existing and new policy measures such as those identified in this report. Energy efficiency measures are identified in this report that could bridge the current gap to the 2020 energy
efficiency target. • The Government balance sheet is improved by around €1 billion on investing in these measures to meet the 2020 target. Government support for energy efficiency programmes could be self-financing, particularly when energy savings are realised in the public sector. • Achieving the savings required to reach the 2020 target will create around 2,000 additional jobs, increase industrial productivity and increase GDP by 0.3% (2020). Annual energy savings of €1.8 billion will accrue to households and businesses, and Ireland will be more resilient to price spikes of imported energy sources.
Lagan Homes makes a smart move to LightwaveRF A UK house builder is to offer smart home technology off-plan – giving new owners smartphone control over everything from lights to heating to curtains. Lagan Homes has partnered with Birmingham-based LightwaveRF to offer the futuristic technology at The Paddocks in East Hanney, Oxfordshire, making them the UK’s first mainstream home builder to offer an integrated, single provider smart home package. The development has been kitted out with a range of LightwaveRF products, available to buyers as an optional extra. Costs start £500 and rise to £3,000 depending on the size of the home and level of installation. This amounts to less than half of one percent of the cost of the property. The range features items that can be controlled using LightwaveRF’s easy-to-use
app for smartphones or tablets such as: • Light switches from as little as £40 a room– remotely turn on the lights from any room or while away from home as well as setting them to come on at specific times to aid security • Power sockets from just £25 – remotely turn off at source any electrical items plugged in, even if the socket is hidden by a sofa – saving energy consumption and money • Heating from just £45 per room– remotely adjust the temperature of each radiator across the home giving warmth where you want and need it, while saving energy and keeping bills down • Blinds/curtains from around £100 per window – remotely close or open your window coverings without leaving the armchair or bed – ensuring privacy
whenever you need it The technology also offers wireless movement sensors that can be set to automatically trigger lights, heating and power to further enhance security, safety and convenience. Smart Home technologies is part of what is known as the ‘Internet of Things’, a new standard allowing appliances and products to connect to a wireless internet signal and send data to and receive commands from mobile devices via the internet or what is now commonly known as “the cloud”. According to Berg Insights, the Smart Home market will be worth £9.5bn in 2015 and is growing annually at a rate of 33 percent through to 2020. According to the Energy Savings Trust, turning down thermostats, and not heating unoccupied rooms can reduce energy bills by up to 30 percent.
Skills, access to finance and onerous regulations holding back Ireland’s construction sector Over nine out of ten (95%) of Irish construction industry leaders are favourable about the outlook for their sector for the next three years. An overwhelming majority (87%) reveal that they expect their turnover will increase in the year ahead of which nearly two-thirds expect their turnover to increase by more than 10%. Over twothirds (68%) expect to increase employee numbers of which nearly half (44%) are planning to increase the workforce by more than 10%. However, a sign of some remaining challenges is that over one in ten (12%) still plan to reduce the workforce. These are some of the key findings from PwC’s Property & Construction Industry Survey published today.
Access to finance and onerous building regulations are challenges Almost two-thirds (63%) said that the top challenge for the industry is securing
finance for projects. This is followed by burdensome building regulations (56%), competitive project pricing (49%) and the planning regime (44%). Almost half (45%) have sought non-bank finance in the last 2 years with the majority of this being private equity (83%) followed by joint venture arrangements (44%) and Mezzanine finance (33%). According to the survey, the single key reason for the lack of development of zoned and serviced land in Ireland is insufficient access to finance (83%). This was followed by uneconomic development prospects based on current property prices (63%), excessive building regulations (53%), development levies (44%) and the Central Bank limits on mortgage lending (42%). Speaking about the survey results, Ronan MacNioclais, Tax Partner, PwC, said: “The survey highlights that access to finance, onerous planning and building regulations and uneconomic development
prospects may be contributing to the low levels of planning applications compared to demand. There needs to be an equilibrium between the cost of building, price and sensible regulation. There are concerns that the permissions granted thus far in 2015 are below those in Q3 2014 and that this will have a knock-on effect on an already supply constrained market. From an FDI perspective, it is also important that high end office space is readily available.” Reducing the VAT rate applicable to property developed within a specified period is the most popular taxation measure which could be introduced to encourage development according to nearly half of respondents (49%). Nearly a third view a reduction in corporation tax to 12.5%, from a current 25%, on land dealing profits where land is subsequently developed within a specified period as another such measure.
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New hybrid polymer waterproofing system available from SIG Ireland
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ix-R liquid waterproofing is a new hybrid polymer waterproofing system available from SIG Ireland. It is a one-component system which is isocyanurate free, contains no solvents, has very low volatile organic compounds (VOC) and does not require classification or marking as a hazardous substance. It is fully reinforced with a polyester membrane and cures through contact with the moisture in the atmosphere. Being largely independent of the weather it can be applied under practically any conditions, even on cold days and on damp surfaces.
Fix-R liquid waterproofing is ideally suited for new build, repair or refurbishment projects incorporating flat roofs, balconies, terraces, walkways and internal plant rooms and wet rooms.. It has excellent elasticity and tensile strength and does not suffer from shrinkage. Fix-R liquid waterproofing system is simple to use straight from the bucket. Applied by brush or roller it is ideal for flamefree application where access is limited or where large amounts of detailing are required. Fix-R liquid waterproofing is a safe product to use, store, handle and transport. It is a virtually odourless, solvent-free, non-hazardous substance with extremely low VOC’s making it suitable for use almost anywhere. It is non-flammable and is oil and solvent resistant. A ready to use product with no mixing involved and is water repellent on application. It be applied all year round above 0*C and can be recoated. It has a very cost effective wet-on-wet application with minimum wastage as unused product can be stored and reused. Fix-Rcryl is a one coat roofing repair solution which is part of the Fix-R liquid waterproofing range. It is an easy to apply repair product which offers instant shower protection and is unaffected by temperature. It is a low odour, low VOC’s product which can be cold applied even in damp weather. As a fibre reinforced product Fix-Rcryl can fill minor cracks and gaps and it has a quick build up which won’t sag, even on vertical surfaces. For more information please contact SIG Roofing at: 01 895 1795. Visit the website www.sigroofing.ie or email enquiries@sigroofing.ie
SMET delivering innovative floor screed solutions Smet Building Products Ltd (SMET) is dedicated to delivering innovative self levelling floor screeds, renders, plasters, professional tiling systems, natural hydraulic lime products, streetscape® BS 7533 compliant mortars and EasylationWall – the latest innovation in external wall Insulation. “As a family run business, our strength is in delivering innovative high quality products supported by exceptional technical and conscientious customer service,” says the company. “We are Ireland’s leading floor screed contractor, with an unrivalled track record of successfully completed flowing floor screed projects,” it says. In April 2015 the company revolutionised the installation of flowing CE certified Sudanit 280 Alpha Hemihydrate screed with the innovative mobile screed factory. This state-of-the-art machinery is a fully automated, mobile, computerised batching system - custom built by Bremat in the Netherlands, specially for fast floor screed. The machine is mounted on a ridged truck, making it easily manoeuvrable for site or on-street setup. “The fast floor screed mobile screed factory carries the Sudanit 280 Alpha Hemihydrate binder, sand and aggregates and water in separate compartments. The automatic production process ensures materials are precisely weighed, fed to the mixing bin and into the pump for easy, mess-free installation. This ensures the mobile screed
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factory produces Sudanit 280 Alpha Hemihydrate floor screed to a consistently high quality. “Our unique bespoke re-load hydraulic screw for sand and aggregates ensures excellent daily output is achieved. Plus, for convenience, there are a number of pre-programmed mix designs to choose from delivering screed floors from C20 to C35. “With over 25 years flooring construction experience, we specialise in the supply and fit of self levelling floor screeds and have a range of products that will suit any residential, UFH, self build, renovation, office, commercial or industrial flooring project.” To find out more or obtain a no-obligation quote, please contact us - or view our extensive portfolio of successfully completed flooring jobs nationwide online at www.fastfloorscreed.ie Contact sales T: +353 (0) 87 066 5239 Email: fastfloorscreed@ eircom.net
for your diary
Tuesday 14th July
Executive Body meeting
North West Branch meeting
Thursday 24th September
Tuesday 3rd November
Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016
Sligo Park Hotel, Sligo, 8pm Contact: Justin Molloy 091 502 680
Tullamore Court Hotel, Tullamore, 8pm Contact: Justin Molloy 091 502 680
Monday 24th August
Monday 28th September
Wednesday 11th November
Construction House, Little Island, 4pm Contact: Brid Cody 021 435 410
Construction House, Little Island, 4pm Contact: Brid Cody 021 435 410
Mount Errigal Hotel, Letterkenny, 8pm Contact: Justin Molloy 091 502 680
Tuesday 1st September
Thursday 1st October
Thursday 19th November
Cork Branch Executive meeting
Executive Body meeting Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016 Monday 7th September
Galway Branch meeting Ardilaun House Hotel, Galway, 6pm Contact: Justin Molloy 091 502 680 Tuesday 8th September
Midland Branch meeting Bloomfield House Hotel, Mullingar, 8pm Contact: Justin Molloy 091 502 680 Wednesday 16th September
Donegal Branch meeting Mount Errigal Hotel, Letterkenny, 8pm Contact: Justin Molloy 091 502 680
Cork Branch Executive meeting
CIF annual conference 2015 (Activity, Jobs & Solutions) Croke Park, Dublin. Contact: Gillian Heffernan 01 406 6016
Midland Branch meeting
Donegal Branch meeting
North West Branch meeting TF Royal Hotel, Castlebar, 8pm Contact: Justin Molloy 091 502 680 Tuesday 24th November
Tuesday 13th October
Executive Body meeting
Executive Body meeting (AGM 12.45pm)
Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016
Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016
Monday 2nd November
Monday 7th December
Ardilaun House Hotel, Galway, 6pm Contact: Justin Molloy 091 502 680
Venue to be decided, 5pm Contact: Brid Cody 021 435 410
Galway Branch meeting
Cork Branch Executive meeting
Monday 2nd November
Cork Branch Executive meeting Construction House, Little Island, 4pm Contact: Brid Cody 021 435 410
June July 2015 CONSTRUCTION 63
Last Fix
When all the building work is finished….
According to Berg Insights, the Smart Home market will be worth £9.5bn in 2015
Finding work in the UK
A
fter it was recently revealed that the UK construction sector rebounded in May from a near two-year low in April, researchers at a leading business insurance website decided to look into how construction workers around different regions of the UK are finding the search for work. When initially asked if they had noticed a difference in the amount of work they were securing over the past twelve months, the majority (59%) admitted it had been roughly the same, with 22% claiming they had more work and 19% noticing they’d had less work. All participants were then asked if they were ‘struggling to find reliable and regular work’, to which a quarter (26%) said they were. When divided according to the regions, in order to establish the hardest areas of the UK to work it, the following split was revealed: 1. North-East - (15%) 2. Wales - (13%) 3. North-West- (12%) 4. Yorkshire and Humberside – (12%) 5. London- (10%) 6. West Midlands- (9%) 7. East of England- (7%) 8. Northern Ireland- (6%) 9. Scotland- (6%) 10. South-East- (4%) 11. East Midlands- (3%) 12. South-West- (3%) Of those who said they were struggling to find work, the most commonly affected trades emerged as electricians (16%), bricklayers (11%) and builders (8%).
Pictured at the official opening of three refurbished rooms in Gardiner Street School are pupils and staff waiting to welcome the President of Ireland Michael D Higgins. Both the original primary school and a food centre opened on February 1st 1830. The school and the food centre worked independently until 2013 when the area occupied by the food centre reverted to the school. Thanks to a devolved grant from the Department of Education and Skills the school has incorporated this significant addition into the amenities of the school. Gardiner Street School is a co-educational primary school and famous past pupils include Bill Cullen author of “Penny Apples” and the Dublin footballer Ger Brennan. Refurbishment works were carried out by CIF member firm C&A Build & Civil. Pictures by Conor McCabe Photography.
64 CONSTRUCTION June/July 2015
Sisk show their support for the Construction Workers Health Trust: (L-R) Steve Ford, Brian Daly and Paul Hackett. The Sisk duo presented Brian with a cheque for €5,000 on behalf of Sisk.
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