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In this issue... Big Hitters

4 8 12

All the latest news from our website: www.builderandengineer.co.uk

World News

The biggest stories from around the globe

The Year Ahead

A look at the biggest events of the year including a preview of Ecobuild and Sustainability Live

18 24

Roundtable

Big Interview

Health & Safety

The latest health and safety news and updates from across the UK

Appointments

Constructing Careers

Our round-up of the industry’s movers and shakers

Cover Story

We hear from training providers and apprentices to find out what role they will play in shaping the future of the industry

Our experts look at what direct commissioning of housing could mean for construction firms

Steve Hindley, chairman of the Midas Group and the CBI Construction Council talks about his part in Construction 2025

28 Green News

All the latest green news from across the industry

31 What’s On

Our guide to the big events coming up over the next few months

The industry’s apprentices and young trainees tell us why they chose a career in construction

Welcome

Editor: Holly Squire holly.squire@excelpublishing.co.uk

Now the New Year is well and truly underway, it’s clear that house building is still high on the agenda for 2015.

Advertising Sales: John Guy john.guy@excelpublishing.co.uk Terry Hanlon terry.hanlon@excelpublising.co.uk Circulations Manager: Patricia Salgueiro patricias@excelpublishing.co.uk Subscription Rate: £20 per year

The latest Markit/CIPS purchasing managers’ index (PMI) shows anecdotal evidence which points to strong demand for new residential development and a further recovery in construction firms bidding for commercial projects. Markit also reports signs that wages might be starting to rise in the sector, with economists forecasting that after several years of falling real wages, 2015 might bring the first year that the UK sees widespread increases in pay since the 2008 financial crisis.

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And with construction firms highly upbeat about their prospects for output growth this year, it seems that 2015 could indeed be a year of increased recovery across the sector. Published by: Excel Publishing Company Ltd 6th Floor, Manchester One, 53 Portland Street, Manchester M1 3LD Tel: 0161 236 2782 www.excelpublishing.co.uk

But it’s clear that uncertainty surrounding the general election later this year - at which the main political parties are expected to outline how they would tackle the UK’s continuing budget deficit - is still expected to weigh on confidence. And with a skills gap and materials shortage still on the horizon, more needs to be done to enable the construction industry to be anywhere near reaching its peak again. But as starts to the year go, 2015 has certainly got off to positive one for the industry.

Printed by: Buxton Press This product is from sustainably managed forests and controlled sources.

So long may it continue… Holly Squire Editor

BIG Hitters

A round up of the biggest stories hitting the industry Go to www.builderandengineer.co.uk to read the stories in full

Construction sector writes off almost £2bn every year Every year, construction firms in the UK write off more than £10,000 each, when customers do not pay, according to a new report. Published by business funder Bibby Financial Services (BFS) and the Vinden Partnership (TVP), the Planning for Growth report reveals that over 70% of SME construction

firms have suffered bad debt over the past three years. The average amount scrapped by these firms during this period was £30,465, equating to £1.9bn each year across the sector. READ MORE: http://bit.ly/18kofRY

MPs urged to back zero carbon homes

The renewable energy industry has joined forces with environmental groups to urge MPs to renew Government commitment to achieving zero carbon homes. The Solar Trade Association (STA), WWF and the Renewable Energy Association (REA), with support from Friends of the Earth (FoE) and Greenpeace, have called on MPs to back amendments to the Infrastructure Bill that would “restore the Government’s zero

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carbon homes standards to levels recommended by their own advisers”. According to the STA and the other groups, the UK had been on track to deliver genuinely zero carbon homes for new build in 2016, but the standards have been “watered down” so that current proposals will save just a third of the carbon of homes built to 2006 standards. READ MORE: http://bit.ly/1BfjIam

Government and industry create pipeline of growth for underground construction £1.1 million of Government funding has been invested in underground construction and tunnelling to match £1.7 million of industry investment to help create a legacy of engineering jobs and skills from major projects including the Crossrail development. The project brings together industry leaders, including Crossrail-linked employers, working on major tunnelling and underground construction projects. It follows a successful bid from the group for funding through the Government’s Employer Ownership Pilot. This project will create a new industry partnership involving tunnelling and underground construction employers to generate lasting benefits for current and future engineers. Part of the partnership’s work will see the creation of a new Industry Advisory Panel, representing all Crossrail-linked employers and future large tunnelling employers, working together to identify ways to grow the industry. READ MORE: http://bit.ly/1BfirAf

Lend Lease wins £75 million office job Lend Lease’s Construction business has been appointed by Legal & General Property to create a £75 million mixed-use scheme on Hammersmith Road, London. The 350,000 sq ft development includes a 10-storey, Grade-A flexible office space, new retail frontage and public plaza. Work started earlier this year, with completion expected in summer 2017.

The existing commercial building at 245 Hammersmith Road will be demolished to make way for the new scheme, which continues the rejuvenation of Hammersmith town centre as a strategic location to rival commercial developments to the West and North of the centre of London. READ MORE: http://bit.ly/1yIXSiy

ISG named as preferred contractor on £41 million York stadium scheme

Barratt site numbers set to reach six-year high

ISG has been confirmed as the preferred construction partner as part of the successful consortium bid led by GLL for the £41 million York Community Stadium and Leisure Complex scheme. The project comprises a new home stadium for York’s professional football and rugby teams, as well as including leisure, retail, office and community facilities. The new mixed-use stadium development is set to become a leading leisure destination for the North of England. In addition to creating a new 8,000 allseater stadium with high-quality hospitality and conferencing facilities, ISG will also deliver a new 25m six-lane swimming pool, state-of-the-art fitness and active

play facilities, as well as a community hub, providing health and wellbeing services for local residents and visitors.

Britain’s biggest house builder is stepping up its project pipeline over the next six months to a six-year high. Mark Clare, group chief executive, said Barratt launched 96 sites in the first half, compared to 81 in the same period last year. This news comes as part of the firm’s latest trading update for the first six months. During the period Barratt lifted completions by 12.5% to 6,971, with the average selling price for private homes up by the same amount to £253,000. Clare said the firm was on track to deliver 15,700 completions, including 700 joint venture homes, by its full-year in June.

READ MORE: http://bit.ly/1yIwlfM

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AN Essex shown construction has cover.was prosecuted at Southend on thefirm report Magistrates’ Court after it failed been fined for failing to provide boilerplate features in to full, toshield respond HSE’s enforcement adequateThe sanitation facilities for the accompanied by the address block web URL. action by and improving the welfare its workers. facilities for workers. Two months An inspector from the Health and Safety Executive (HSE) visited after the date of compliance of the Improvement Notice, it still the company’s site at Camper hadn’t brought standards up to Road in Southend on 26 March an acceptable level. 2014 and issued an Improvement Notice after finding sub-standard READ MORE: facilities for workers on site. http://bit.ly/1DxVrQ3 Dantel Construction Ltd James smith

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THE Health and Safety Executive’s e james_s@iirsm.org deputy chief executive Kevin Myers has been recognised in international of list. 2015’s New Year’sinstitute Honours risk & safety Management He has been awarded 77 Fulham palace road a CBE london 8ia united Kingdom for services to W6 occupational safety T +44 (0)20 8741 9100 after and health some 38 years F +44 (0)20 8741 1349 joining HSE as a trainee factory inspector in 1976. Business Card

CDM Regulations 2015 – Booking now for February and March 2015 ● IIRSM brings you a high quality essential CPD seminar to get you up to date on the CDM Regulations 2015. ● This packed half-day event will provide you with the insights you need to inform your views and practices in the ever-important construction health and safety arena. ● Various venues in London, Manchester, Glasgow, Birmingham and Cardiff ● Breakfast and refreshments provided

Myers has held a number of diverse roles within the organisation following a range of operational posts in the field in London, East Anglia and the South West. READ MORE: http://bit.ly/1sYBErS

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Health & Safety 13

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05/02/2015 10:49the

ADVERTORIAL

CDM2015

– new regulations for a new era or more problems? The Health and Safety Executive have finally published their draft proposals for the Construction (Design & Management) Regulations 2015. The changes to the CDM Regulations are aimed at revolutionising the way construction risk management is handled at the pre-construction stage and the new regulations are scheduled to come into force on 6th April 2015. With a transitional period of only six months it will be a swift restructuring for many in the industry who are used to construction projects lasting, sometimes, many years. Whilst the proposed changes might induce uncertainty for some people, and panic for others, removal of the CDM coordinator by October 2015 and the placing of CDMC duties on other project team members hopefully will not mean chaos. It is important to realise that the construction industry already has people suitably equipped to manage the pre-construction health and safety process at every level of project. With many more health and safety responsibilities being placed on clients, but no requirement for clients to have any health and safety knowledge or experience, one of the key issues that will need addressing is the way that they receive advice and assistance with discharging

14 www.builderandengineer.co.uk

their duties. For domestic projects this will not be a problem as the HSE propose to shift all of the client’s responsibilities onto the contractor, even though the contractor may not be appointed until the project has been designed and planning and building regulation permissions obtained. With less experienced commercial clients, much heavier reliance will be placed upon the new Principal Designer appointment to ensure that the right information is available. The new client’s duties under CDM2015 mean that they must provide the following to every designer they appoint and every contractor they appoint: “information in the client’s possession or which is reasonably obtainable, which is relevant to the work and is of an appropriate level of detail and proportionate to the risks involved, including information about – (a) t he project; (b) planning and management of the project; (c) health and safety hazards, including design and construction hazards and how they will be addressed; and (d) i nformation in any existing health and safety file.” The HSE have given the industry six months in which to terminate existing CDM coordinator

contracts. Those CDMCs who have term contracts in place, or longduration projects, need therefore to immediately commence negotiations with their clients regarding how their commissions are to be brought to a close and the Principal Designer appointed for future projects and those that will run beyond October 2015. Likely difficulties encountered will include how to agree at what point in the project the CDMC’s work is terminated, how the Principal Designer takes over the Health and Safety File preparation half way through a project, what happens to pre-construction information management during the design phase, the effect of termination on collateral warranties and implications for professional indemnity insurance for both the exiting CDMC and the new Principal Designer should they not be the same firm. The good news is that a large number of existing CDM coordinators with design qualifications will be capable of undertaking the Principal Designer role, provided that the client makes them the designer in control of the pre-construction phase and appoints them in writing.

Contact James Ritchie is Head of External Affairs and Deputy Chief Executive at the Association for Project Safety.

ADVERTORIAL

Change the way you build your basements – Less budget, better value, never leaking and always staying dry... Around 20 basements have been finished, all for self builders who listened and understood how a mindset change can produce a far better outcome. They all got their basements for about half the best alternative quote for building it the traditional way. The whole industry can benefit but it needs an open mind to stop doing what it has always been doing that causes leaks and haemorrhages cash. What needs to change is the basement sub contractor building as cheaply as he possibly can, with no consideration for the work that follows, leaving leaks which, all too often, remain as expensive problems for those downstream to sort out. To do this 2 mindset changes are needed: 1. Advances in the chemistry of concrete mean that concrete can be completely waterproof and proven by testing that the concrete delivered to and used on site is completely impermeable. Therefore, proof that any leak is due to something bad done to or with the waterproof concrete by the workforce. We have an online CPD, which can still be read at www.building. co.uk/professional/cpd/ no. 26 and to view some examples of some sample certificates proving complete impermeability, visit our website at www.waterproofconcrete.co.uk/ certificates.html 2. A waterproof concrete structure can still leak through dirt, voids and

cracks. The only way to be certain you have avoided dirt, voids and cracks is to build walls in a way that these problems cannot occur, and for the client to be represented on site throughout all of the concreting works to spot any errors in time to put them right. Our aim is to help the contractor up his game so the basement will not leak. We will i. Discuss these arrangements with the specifier beforehand. ii. Meet the contractor to plan his formwork to meet the new rules. iii. Train the men before concrete arrives. iv. Waterproof the concrete and take samples for testing. v. Produce a report with photos where we saw any failures of workmanship, which should prevent any arguments or delays over repairs. These two mindset changes allow us to provide a 12 year warranty, to fix all visible leaks of water, at no extra cost. There should be no leaks, but if there are any they will be smaller and easier to fix. This whole list of services we provide is included for about the same price as most water-resisting admixtures for concrete that are not as effective and only include a small part of the same services.

For full details and certification visit www.waterproofconcrete.co.uk, email enquiries@waterproofconcrete.co.uk or call 01438 900303.

We have proven time after time that taking a bit more care with the concrete when constructing a basement makes the basement cheaper to build. The risks are reduced and it is much, much cheaper for the client. No one has to try to fix leaks, stick membranes on, dig a sump or cover the walls in drainage sheeting and the client no longer loses space to a second stud wall inside his basement perimeter. There are teams building basements this new way and making a profit when it only costs the customer £350 a square metre of floor slab and £350 a square metre of retaining wall for excavation, concrete, steel, waterproofing, insulation, labour, tools and all the equipment. We supervise all their concreting and they never leave a leak. There is a new CPD for 2015 which can be viewed at www.building.co.uk/ professional/cpd/ explaining the new rules that result in waterproof basements for less money and a lot less hassle. We are Waterproof Concrete With Site Supervision Ltd. We won’t supply only one. You get a waterproof basement using our methods because you get both waterproof concrete and site supervision. Phillip Sacre is Director of Waterproof Concrete With Site Supervision Ltd and author of www.basementexpert.co.uk

Contact www.waterproofconcrete.co.uk

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Appointments Our round-up of the industry’s movers and shakers New MD for T&T Australia Turner & Townsend has appointed a new managing director for its Australia business. Anooj Oodit, who previously led the firm’s UK infrastructure commercial services team, will be responsible for strategic direction and growth across core sectors in the region. Oodit will be based in Sydney and report to chief executive officer, Vincent Clancy. He takes the reins from David Todd, who will retire after a 30-year career with T&T.

Balfour hires £400K-ayear finance boss Balfour Beatty has appointed Philip Harrison as chief financial officer. He will take up his new position and join the Board later in the year. A qualified accountant (FCMA), Harrison’s career includes senior roles in large and complex international businesses. Prior to his current role as group finance director at Hogg Robinson Group, Harrison was the group finance director at VT Group plc, the £1.3 billion turnover government support services business, and at Hewlett-Packard, where he was the VP Finance for the $43 billion turnover Europe, Middle East and Africa region and a member of the EMEA board. On appointment, Harrison will receive a basic annual salary of £400,000, with pension and benefit provision in line with the company’s approved remuneration policy.

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New appointments for HS2 delivery team With just two years to go until construction is scheduled to start on the UK’s new North-South rail line, HS2 Ltd has moved to bolster its programme and strategy directorate with two new senior appointments. Jonathan Crone will join as director of the programme management office, while Colin Morris will join as programme delivery strategy director. Both will report directly to HS2 director of programme and strategy, Alistair Kirk. Crone has joined HS2 from Foster Wheeler Energy Ltd where, as a divisional manager, he led a multidisciplined team delivering project controls and integrated reporting on major oil and gas projects around the world. Morris has joined from EC Harris. With over 26 years’ experience in both programme, project management and engineering, he has extensive experience of leading major change and urban regeneration programmes in the UK and abroad, including senior roles at Halcrow and the Ministry of Defence.

ISE elects honorary fellows The Institution of Structural Engineers has elected three new Honorary Fellows during a ceremony at the Institution’s new International Headquarters in London. Angela Brady, past president of The Royal Institute of British Architects, and Peter Bonfield, chief executive of BRE Group, received certificates of Honorary Fellowship during the ceremony. Ray O’Rourke, founder of multinational construction firm Laing O’Rourke, also received a

certificate in absentia. The event saw 74 structural engineers receive certificates formally appointing them as chartered members of the institution.

FBE boosts board numbers Forum for the built environment (fbe), a national networking organisation for professionals in the construction, property and development industry, has appointed a new director to lead the growth of its sister group, forum for tomorrow (fft). Jo Jones, business development manager for Midlandsbased design consultancy, Building Services, has been announced as fft’s new director. Jones has been a committee member of fft’s West Midlands branch for the past five years and in her new role, is responsible for raising awareness of the group nationwide, hosting a variety of events throughout the year, establishing links with similar organisations, increasing membership and representing members at quarterly board meetings.

New director for Midas The Midas Group has appointed a new director to lead its Devon and Cornwall division as the company continues to expand and manage multimillion pound developments across the region. Midas Construction has recruited Andy McAdam as its new divisional director for Devon and Cornwall. McAdam has more than 30 years’ experience within the construction industry, 25 of which have been spent in the South West. Having worked for a number of West Country contractors, initially as an

engineer, he progressed through the operational ranks and since 2008. He has worked as a regional director at South West construction firms, initially for Dean & Dyball and latterly for Balfour Beatty.

RLB adds two to global board Rider Levett Bucknall has announced the appointment of two new directors to its global board. Andrew Reynolds and Russell Lloyd will both represent the UK practice, joining existing global board director Ann Bentley. They replace former global board members Lance Taylor, who left the firm

to join Persimmon last month, and Mark Williamson, who has transferred to the Caribbean to set up a new RLB office in St Lucia. Reynolds is one of the main board directors at RLB, responsible for delivering built asset solutions to major corporate occupiers, specialising in programme management, project controls, commercial and risk management. He also leads the RLB Euro Alliance, a network of over 30 partner organisations in Europe. Lloyd is a partner in the London office and leads on the firm’s sport and event work. Current clients include Glasgow 2014 Commonwealth Games, FC Barcelona and the Baku 2015 European Games.

Peabody lines up Kerslake for chairman role Social housing firm Peabody has appointed the outgoing head of the civil service as its new chairman. Sir Bob Kerslake’s CV also includes a stint as the first chief executive of the Homes and Communities Agency, where he was in the role for two years before moving across to become permanent secretary Department for Communities and Local Government in 2010. Prior to his role at the HCA, Kerslake spent 11 years as leader of Sheffield City Council. Kerslake takes up his new role this June and replaces Christopher Strickland, who left Peabody at the end of last year after five years in the post.

Constructing Careers The industry’s apprentices and young trainees tell us why they chose a career in construction Name: Calum Gardiner Age: 17 Position: Engineering apprentice at Rixonway Kitchens What made you want to join the construction industry in the first place? In year 11 at school I went on a construction skills course which covered electrical work, bricklaying and plumbing. I really enjoyed this and liked working on site. I knew I wanted a trade and I saw that engineering was in demand so I thought this looked like a good thing to do. How did you go about getting on to your current programme? I knew I wanted to work for a big company where there are lots of different jobs and I’ve started engineering young which is good so I can get lots of experience. I spend four days working at Rixonway and one day a week at Wakefield College. This year is more theory-based now, but we do get to do some practical work at the end of the day. What have you done so far? A typical day involves checking the dust extraction fans and compressors and cleaning and building glue pots - this

sounds daft but it’s actually very important to the manufacturing process and they must get changed over quickly. I’ve also helped build the factory’s new third line from scratch and made legs for the conveyor belts. It’s been very busy recently and we’ve had some big orders, which increases the pressure, as there’s more work for everyone. I don’t let it bother me though – I know what I’m doing and I’ve done most of the jobs before so I’m confident and there are always people here to ask for help. What do you hope to achieve in your career? Next year I’ll be studying for my level three qualifications. I’m just happy to be passing as many qualifications as possible. I want to go down the electrical engineering side and next year we get to decide whether to specialise in electrical or mechanical engineering. What do all your mates think of what you do? My mates are quite interested in what I do and quite a few have asked me about my apprenticeship. I would definitely recommend doing an apprenticeship; you get a bit of money in your pocket and a qualification under your belt.

I also work in the same department as my dad but hes let me get on with things. He wants me to be able to make my own way so he gives me space and isn’t there nagging me all the time! Where do you think we will see you in ten years’ time? There is a good career path here with plenty of work, whether as a technician, maintenance manager or a fitter. This is a good job, I’ve got lots of friends here in the factory and we have a good laugh together. I’m keen to stay here for the next ten years. I’ve also got some computer aided design experience which might be useful, although I’m not planning on starting my own business just yet. Appointments 17

Training gains The skills shortage has been well documented, but could apprentices hold the key to getting the industry back on track? Holly Squire reports APPRENTICES are vital to the success of the future construction workforce but despite Government efforts to support training programmes, the number of new apprenticeships appears to be in long-term decline, as many SMEs simply can’t afford to take them on in tough economic climes. And it seems when it comes to opportunities for young apprentices things have gone from bad to worse, with new research showing the number of people starting construction industry apprenticeships has dropped by 42% since 2006, leaving the building sector facing skills shortages as demand recovers. The official figures from the Skills Funding Agency, a Government body, show that 15,890 people started construction apprenticeships in 2013/14, a decline from 2006/07, when 27,300 started apprenticeships – and it is estimated that the construction industry needs 120,000 apprentices over the next five years to fill an emerging skills gap. And the long-term decline in the number of apprenticeships is likely to have a greater impact on the construction industry as demand for skills continue to recover. The latest State of Trade Survey from the Federation of Master Builders found that 41% of SME construction firms are still struggling to hire bricklayers. Recent reports suggest that foreign bricklayers are now earning up to £1,000 per week in the UK due to a shortage of indigenous skills. This all comes despite official figures showing the number of construction industry jobs jumped by 5.7% over the past year, rising from 807,000 in 2013 to

Eddie Mewies, managing director, M-EC Consulting Development Engineers

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853,000 in 2014, the first such increase since the recession in 2009. Simon Curry, chief executive officer of SJD Accountancy, believes the building industry needs to create more apprenticeships as demand for skills recover. He says: “We are seeing rising demand for sub-contractors M-EC apprentices compete in an electrical challenge in many areas of “We received over 50 applications for construction as order books starts to fill our inaugural vacancy, which not only up. If the building sector cannot secure reassured us that we were making the the necessary skills, its recovery will be right decision but also demonstrated that put in jeopardy. Recruiting foreign workers construction remained a popular career on high wages to fill skills gaps can delay choice for school leavers.” projects and significantly increase costs, Apprentices at M-EC undertake which is bad news both for contractors and a three-year structured programme the wider economy.” shadowing all divisions of the business He adds: “House builders are reporting that a shortage of skilled workers is slowing down the rate at which new homes can be constructed, which is bad news for the housing crisis. “While skills shortages can be alleviated in the short term by training school leavers and ex-military personnel, the UK’s long-term underproduction of constructions skills needs to be addressed, and apprenticeships are an important part of the solution.” But while this all seems doom and gloom, there are still plenty of firms out there that despite all the odds are still focusing on apprenticeships. Leicestershire-based consulting development engineer M-EC has been and divide their time 50/50 between operating an in-house apprenticeship office and construction sites. In-house scheme since 2012. Designed to offer training is supplemented by day release aspiring civil engineers a viable route into at the neighbouring Stephenson College the construction industry, M-EC’s scheme in Coalville, where apprentices study has increased in popularity year on year. for a BTEC National Diploma Level 3 in “The business had enjoyed a steady Construction and the Built Environment. momentum of growth in its first three “Partnering with Stephenson College years so we felt the time was right to was crucial in our decision to begin launch an apprenticeship programme to employing apprentices as it has a strong facilitate our expansion plans,” explains engineering division and long history M-EC’s managing director, Eddie Mewies.

If the building sector cannot secure the necessary skills, its recovery will be put in jeopardy

of delivering reputable construction qualifications so helped lessen the overall risk,” added Mewies. “We’ve found it to be an excellent fit with our business and while school leavers don’t come to us with the exact skill set, through apprenticeships we’re able to jointly train them in the various disciplines required.” Buoyed by the success of their original apprentice, Jake Poulton, M-EC has since offered vacancies annually and in the last intake, employed four trainees, which more than doubled the size of the scheme. “I’ve always taken an interest in Geology so when I was looking at possible career opportunities, civil engineering seemed a logical choice as it encompasses everything within that subject,” said first year apprentice, James Lewis. “When I discovered the civil engineering apprenticeship at M-EC, it seemed the ideal solution – I’ll get to do a lot of practical work, continue my academic studies and earn while I’m learning.” M-EC currently employs six apprentices, representing 20% of total staff, and is planning to offer a further three vacancies when applications open for the 2015 intake this summer. “We’re extremely proud of how our apprenticeship programme has evolved”, says Mewies. “It has undoubtedly supported our business development strategy and since its inception we have consistently increased turnover, profit, number of employees and our product portfolio. “The success of our apprentices, some of whom are now going on to achieve advanced qualifications, has given us the confidence to continue recruiting young people. “We firmly believe that apprenticeships provide a vital source of new talent and are essential to safeguard the future of the construction industry.” Further afield, Greater Manchester Skills Gateway is a European-first service, which has been launched for building and construction firms in a bid to boost the economy and improve companies’ use of training to achieve growth, boost productivity and improve staff retention. According to the Deep Dive Report, commissioned by Greater Manchester Skills and Employment Angie Took

Partnership, the recession has led to a reduction in Greater Manchester’s construction workforce and a corresponding rise in the numbers of businesses reporting skills gaps and hardto-fill vacancies. The Skills Gateway promises to fill gaps and vacancies by giving businesses complimentary Dan Halstead welcomes geomatics apprentice, James Lewis access to a pool of over 250 training skills working on some of the UK’s most providers. significant and complex projects, while “Businesses using the service are building a long-term career with a national provided with a shortlist of training firm. providers that best match a wide range “I really enjoy learning in a practical, of criteria suiting their sector, company’s hands-on way so the apprenticeship route needs and objectives,” explains Angie to employment seemed like the perfect Took, operations manager of the Greater fit for me,” says Derry. “I also liked the Manchester Skills Gateway. idea of earning while learning and doing “Investment in apprentices drives different things every day, not just sitting the future growth and productivity of in a classroom.” businesses and, without it, companies He adds: “I would definitely advise run the risk of falling victim to the skills people to consider the apprenticeship shortage, as opposed to a lack of work, route. I thoroughly enjoyed my time as an again and again.” apprentice and the skills and qualifications According to the Greater Manchester I have gained will undoubtedly help me Chamber of Commerce’s most recent progress my future career.” Construction Pipeline Analysis, the city’s Emily planning system alone currently contains Marner is £9.5 billion of construction output to be another past delivered between 2014 and 2017. apprentice This means that there is an average at Shepherd of 788 training places required each year Engineering. throughout the period to deliver the plans She is now – an increase of 75% compared to the halfway period between 2010 and 2013, which is through good news for the industry. completing So thanks to services like the Greater a HNC in Manchester Skills Gateway and firms like building MEC, investment into apprenticeships is services still ongoing despite what the latest stats engineering show. while Josh Derry, 23, Emily Marner working on a has just completed national biologics-manufacturing centre in his final year of a Darlington. four-year electrical She initially wanted to be a apprenticeship physiotherapist but after a stint at college with Shepherd realised the course wasn’t right for her Engineering and got in touch with Shepherd. Marner Services and now now helps to encourage other young taken on a role as people into the industry by speaking at student surveyor. recruitment events. He chose “I didn’t really think that building to take up an Josh Derry services was an option for females as it engineering hadn’t been discussed at school, but now I apprenticeship over can’t imagine myself working in any other a university place because it offered sector,” she says. an excellent opportunity to learn new Training 19

and hopefully this will continue to grow throughout the company,” she explains. “Because for us, apprenticeships are absolutely critical. A robust apprenticeship scheme produces grounded and highly qualified individuals and also fuels the pipeline of young talent, ensuring that the business remains future-proof and the industry progresses, which is particularly important given the current skills shortages,” she adds. Clare Chappell So, with this in mind, what of the tax break announced in the Autumn Statement, “I am constantly reminded that there which will abolish employer National are people out there who do not enjoy Insurance contributions on income up to the their job and I feel privileged to have upper earnings limit for apprentices aged found a career that I enjoy, which also has 25 and under from 6 April 2016. unlimited potential for constant challenge Could this help to reverse the reported and change, “ adds Marner. downward slide in the number of Shepherd has a collaborative construction apprenticeships? programme with Leeds College of Building Simon Curry from SJD Accountancy says that is tailored to meet the needs of its that while this tax break is welcome news, mechanical and electrical apprentices. it will not take effect for well over a year. Working in partnership with the college, “With the construction industry, the firm maintains a programme that fits particularly housebuilding, performing with the sectors and the clients it works well, and skills shortages worsening, with to ensure apprentices’ experiences on the Government needs to consider site correlate with and complement their more immediate measures in parallel to classroom-based learning. apprenticeships,” he says. But Clare Chappell, learning and He adds: “The cost of training is development business partner for currently not a tax deductible expense, but Shepherd, believes that more should still allowing contractors and subcontractors to be done to encourage a wider variety of offset the cost of training against taxable apprentices into the industry. income would help ensure a closer match “This is an area that we are between the skills of the workforce and concentrating on, focusing on young the skills which the industry requires.” talent and introducing apprenticeships Michael Davis, chief executive of the into different areas of the business such UK Commission for Employment and Skills as HR and building student apprentices, (UKCES), also believes that more must be done to help bridge the skills gap. “Engineering is a vital part of the UK economy, both in its own right and because it underpins countless other sectors. Addressing skills gaps and shortages is essential if we are to have the world-class engineers we need in the future. “To do this, Double winners at Stephenson College Apprentice Day

20 www.builderandengineer.co.uk

Jake mentoring Taylor and Joesph employers must work in partnership within their sectors, with the Government, and education providers. We need to make sure that engineering jobs are attractive, offering opportunities to both get into work and make good progress in a career. “That means shaking off the ‘greasy

A robust apprenticeship scheme produces grounded and highly qualified individuals and also fuels the pipeline of young talent rag’ image that engineering sometimes has, and creating more traineeships, apprenticeships and mid-level jobs, as well as making it easier for people who have left the sector to re-enter it.” So while its clear that there is still a long way to go to match the number of apprenticeships on offer back in the glory days of the early 2000s, apprenticeships are still very much the lifeblood of the industry. And given that more than 90% of apprentices stay in employment after finishing their training, its important that we do all we can to keep the talent coming into the industry. If this can be achieved, the future will certainly start to look a little brighter when it comes to addressing the skills gap. n

Bridging the gap Gillian Econopouly, head of policy and research at CITB, believes that Government support is key to closing the skills gap CITB’S latest construction industry forecast predicts annual growth of 2.9% and the creation of more than 200,000 new jobs over the next five years. With this ‘big construction comeback’ across the UK, it’s hardly surprising that attracting returners and new recruits into the workforce has become a priority for employers and Government alike. During the downturn, some 400,000 skilled people left the construction industry. Although some will have retired or moved permanently to another sector, we estimate that up to 100,000 could be encouraged to return. But it won’t be easy. Although our research shows the sector is on the path to sustainable growth, it will take a great deal of effort to demonstrate the good prospects for long-term, successful careers in the industry. That’s why in the run-up to the General election, we are calling on all political parties to pledge their support to delivering the National Infrastructure Plan. If the pipeline of new projects is guaranteed, it will offer employers the certainty to invest in training, and at the same time encourage skilled construction workers to return.

But however successful a programme of re-recruitment might be, it will only provide a short-term fix. For the longer term, we must develop a consistent pipeline of new talent and ensure that we retain these people throughout their careers. And a key part of that is providing quality apprenticeships for quality apprentices. Recognising this, the House of Commons Public Accounts Committee recently published a report on 16-18 education that endorsed the Government’s commitment to longer and better quality apprenticeships. The committee also recommended targeted support to help smaller businesses take on apprentices. For its part, the Government has confirmed its commitment to give construction employers a bigger say in the funding and shaping of apprenticeships. We welcome this commitment. Bringing employers fully into the decision-making process should improve the design, quality and relevance of construction apprenticeships across the board. The challenge now is to ensure that construction firms can get involved in the way that suits them best. In a sector mainly comprised of SMEs, it can be difficult to engage meaningfully, as many firms do not have the staff or time to get deeply involved. Instead, they may just prefer some practical help with taking on an apprentice.

The solution put forward by CITB to Government is to enable employers to opt for a managed service facilitated by a third party. Under this approach, CITB and other training providers can provide SMEs with the administrative support they need. In addition, CITB can provide grants to employers worth up to £10,250 to take on an apprentice. For this reason, CITB has joined with Demos, a UK think tank, to set up an independent commission on apprenticeships. The commission is co-chaired by Conservative MP Robert Halfon and Labour peer Lord Glasman, and is tasked with developing a strategy to increase the quality and quantity of apprenticeships, particularly in construction. Launched last autumn at the Government’s Construction Summit, the group brings together policy experts, training providers and business leaders to examine how to increase the appetite for apprenticeships among young people and employers and how best to ensure worldclass standards for British apprenticeships, which is certainly a step in the right direction. So while things are moving in the right direction, there’s much more to be done before construction apprenticeships, and those in other sectors, become a viable option for all young people. n

Funding fair?

Could construction apprenticeships be doomed under new Government proposals? THE future of the construction industry could hang in the balance following the Government’s latest announcement on apprenticeship funding reforms, according to the Federation of Master Builders (FMB). The Government announced earlier this month that giving employers direct control of apprenticeship funding remains a nonnegotiable part of the reforms, which has been frowned upon by industry experts. Brian Berry, chief executive of the

FMB, said: “The announcement by the skills minister offers no clarity or reassurance regarding the future of apprenticeship funding. “If SME firms – particularly micro-firms – are asked to pay for apprenticeship training upfront it will have a negative impact on cash flow and increase levels of bureaucracy, no matter how simple the system is.” The FMB is now urging the

Government to think again and not to undermine the construction recovery, which is tentatively moving in the right direction but could easily be set off course if there is not enough new skilled workers entering the industry. He adds: “To experiment with apprenticeship training at such a time and against the advice of large swathes of the business community is irresponsible and foolish.” n

Training 21

ADVERTORIAL

A stitch in time….. For many people reading this ‘a stitch in time saves nine’ may well be a commonplace phrase. It may be one that you use yourself or perhaps one that you hear frequently, but do you really understand its meaning and, more importantly, can you understand its relationship with the most recent construction project contract you have been offered? At the CCS we can. Let us explain. The ‘stitch in time’ concept is a metaphor for sewing up of a small hole or tear in a piece of material and, in so doing, saving the need for more intense stitching at a later date when the hole may have become larger. So how does this ‘stitch’ concept find itself in the arena (we used the term advisedly) that is contractual evaluation and negotiation? Simply put, it is a great way of looking at the risk you take when looking, or far too

often not looking, at the most recent contract you have been offered by an Employer, Main Contractor or Tier 1 Organisation. By investing time in ‘stitches’ at the beginning of the process you can, more successfully, mitigate many of the risks associated with signing up to a contract offered to you. It is essential that Specialist Construction Firms fully understand all aspects of the contract documentation that has been provided. Can deadlines be met? Are there terms included that are inconsistent with your business objectives? Is this the right contract for the business? It is only by fully understanding the, often, bespoke terms included within the contract document that you can realistically assess, and ultimately minimise, any risks associated with accepting any

damaging or detrimental terms that may be offered to you. CCS’ On Demand Analysis Service gives you a clear and easy to understand view of the contract to enable you to be aware of all the facts and terms prior to accepting them. Following your submission a member of the CCS team will undertake a review (overview or detailed) of the contract (NEC3, JCT, et al) and interpret and provide detailed, clause by clause, feedback on the contract to the level of detail you have requested. Taking the guesswork out of the contract evaluation phase offers you the opportunity to engage only in those projects that meet your business objectives, allowing you to weed out unsuitable contracts enabling you to invest your “sewing” time securing the most suitable projects for you.

A stitch in time... A stitch in time....

Do you have your contracts for construction projects analysed by professionals before you sign up to the terms and conditions they contain? you know what all analysed the various clauses are? Areyou there Do you have your contractsDo for construction projects by professionals before signonerous up to the terms terms and that you cannotclauses agreeare? to?Are there onerous terms hidden that you conditions they contain?hidden Do you know whatsimply all the various simply cannot agree to?

If you answered ‘no’ or ‘I don’t know’ to any of the above it may be that you are at greater risk of signing a If you answered ‘no’that or ‘I could don’t know’ to anyyour of the above it may bethan that you at greater risk of signing a contract contract damage business more youare realise. that could damage your business more than you realise. The CCS is able to help. ‘On Our Demand Analysis Note’ service youwith with a detailed clause by The CCS is ableOur to help. ‘On Demand Analysis Note’ servicecan canprovide provide you a detailed clause by clause assessment of recently received contracts prior to you signing them. clause assessment of recently received contracts prior to you signing them. out ofcontracts, your contracts, understandwhat whatyou you are upup to and havehave onerous terms re-worded Take the Take risk the outrisk of your understand aresigning signing to and onerous terms or, better still, removed. re-worded or, better still, removed. Let the CCS help you achieve better business.

Let the CCS help you achieve better business.

01252 624763

01252 624763 info@constructionspecialists.org info@constructionspecialists.org www.contructionspecialists.org www.contructionspecialists.org

211999-3-15 B&E CCS Services.indd 1 22 www.builderandengineer.co.uk

30/01/2015 11:46

ADVERTORIAL

Capping liability or what is the worst that can happen?

Before entering into any construction contract it is good practice for contractors to consider the potential commercial risks associated with it and to consider the maximum financial risk it involves. It is normal for English Law construction contracts to expressly state the maximum liability of a party’s exposure if it is in breach. Following on from stating the limit of liability it is commonplace for performance and guarantee bonds to be used as a means of security to protect such liability. Until the recent case of Sabic UK Petrochemicals Limited v Punj Lloyd Limited [2013] the situation seemed fairly straight forward. However, this case has highlighted the following issues: • the fact that the courts will construe clauses seeking to cap liability narrowly where possible • the extent of monies recovered under performance bonds should be taken into account when considering the maximum liability. Background SABIC, a manufacturer of petrochemicals, in February 2006 entered into a £135 million contract with a subsidiary of Punj Lloyd Limited (Simon Carves Ltd (SCL)), under which SCL agreed to design, procure, and construct a plant to

produce low density polyethylene for SABIC. As security for the performance of the contract SABIC requested a parent company guarantee of £15 million as well as an on demand performance bond in the sum of £13.5 million. Clause 35.2.4.2 of the contract stated: “.... the aggregate liability of the Contractor under or in connection with the Contract (whether or not as a result of the Contractor’s negligence and whether in contract tort, or otherwise at law) ..... shall not exceed 20% (twenty per cent) of the sum of the Contract Price plus or minus the value of any Variations issued prior to the date of Mechanical Completion.” This form of words is fairly standard and upon first examination would appear to limit SCL’s financial liability to 20% of the Contract Price subject to any adjustment for variations. Clause 30.9 of the contract related to an “additional costs to complete test” which stated that if the total cost to the Employer in completing the Works (in the event the Contractor is unable to complete the Works) exceeds the total that the works would have cost if they had been completed by the Contractor, the difference would be recoverable by the Employer from the Contractor either as a debt or by way of set off.

The cap on liability One of the questions for the High Court of Justice Queen’s Bench Division, Technology and Construction Court to consider was: did the aggregate liability cap of 20% apply to SABIC’s claim and mean that SABIC could not recover more than 20% of the Contract Price? In a somewhat surprise decision the Court decided that the capping clause did not automatically limit the sums recoverable to 20% of the Contract Price. The reasoning behind this unexpected decision was as follows:

The facts The project had considerable problems, and it was clear that the date for completion and production of polyethylene would not be met. After numerous exchanges of correspondence SABIC terminated SCL’s contract in November 2008, and completed the works themselves employing the same principal subcontractors as SCL had used before termination. SCL went into administration in 2011 and SABIC sued PLL under the parent company guarantee for the loss and expense it incurred in completing the works. SABIC also called in the Performance Bond.

Conclusion This decision is a reminder that the courts will construe caps on liability as narrowly as possible and against those relying on them. The conclusion is that when drafting cap on liability clauses careful attention should be paid to the issue of recovery under any guarantees, bonds and collateral warranties. Such clauses need to be drafted very clearly and in a different way to the previous norm.

• The capping clause used language typically associated with clauses relating to breaches of contract and tortuous obligations. • The provisions of clause 30.9 could be triggered not just by the Contractor’s breach of contract but also by other circumstances including the insolvency of the Contractor. On this basis the court held that SCL were liable to SABIC for its losses up to 20% of the Contract Price and in addition were liable for the value of the Performance Bond. It is worth noting that in this particular case the court’s judgement on quantum was within the 20% cap - but never the less the judgement has provided important guidance.

Steve Thompson

Senior Consultant Knowles - Daresbury 23

ROUND TABLE Under new plans from the Government, it could directly commission the construction of new homes if developers fail to meet the demand needed to address the housing crisis. Ministers believe that direct government commissioning of housing at both a national and local level would take responsibility for ensuring the number of homes we need each year. The message to the housebuilding sector would be simple: if you don’t build them, the Government will. So, we ask what would direct commissioning of housing mean for the future of the industry?

24 www.builderandengineer.co.uk

Mark Sandall is a property specialist at Andrew Granger & Co

Mark Sandall “There are good reasons why builders don’t build, not least of which is the shortage of materials. If the Government was somehow able to force the accelerated development of new homes on a mammoth scale, it would drive up the already spiralling cost of materials and drive down house prices. That would be crippling for the house building sector, which let us not forget has only recently recovered from the worst slump in living memory. With construction sector wages also skyrocketing, the margins for house builders would be drastically eroded. It would become increasingly difficult for any Government to keep a promise about doubling the rate of house building in those circumstances. The Government also has to respect the pace at which the larger house builders are able to develop their sites. All companies have to keep a close eye on their investment budget and cash flow. Any firms who over-expose themselves to the ups and downs of the property market are taking irresponsible risks, and it only seems a short time ago that developers were facing a bleak future in the downturn in 2008 and 2009. Those who took too many risks failed to survive the recession. What’s more, any significant downturn in house prices would see a return to large numbers of people moving into, or nearer to, negative equity with knock-on effects on consumer confidence and liquidity.

David Gwilliams is a solicitor at Pitmans

The Government has already released a large amount of land into the market, and while there is a shortage of development sites in many areas of the country, largescale tinkering with the system will cause a catastrophic imbalance in the market.”

David Gwilliams “Development and comedy have a lot in common. It is all about the timing. If directly commissioned housing was to make up the shortfall right now, today, 400,000 homes would have to be built. That would place an enormous burden on the industry, which it could not cope with. At the moment, the industry is suffering labour and material shortages and those would be exacerbated by a surge in Government-funded development. But the reality is very different. Look at the timing of the development of a 6,000 home eco-town in North West Bicester, which started with consultation in 2009. The first phase of the development is the construction of 393 zero-carbon homes with completion in 2018 and the rest of the development phased over 20 years. The direct commissioning of housing will be a real advantage for the industry if it gets going in the next recession. So timing won’t be a problem. The Government cites cost savings but it has no real land acquisition costs. A private developer expects to spend 40% of the sale value of the new house

Every issue we ask a panel of experts for their views on a burning topic.

John Anderson is the executive director of Kier Living

on buying the land and 40% on building the house. If the maths don’t work, the banks won’t lend. If this was to go ahead, it would relieve private developers of the need to build mixed-use developments and therefore reduce the cost of private new builds and improve the quality of affordable housing. But Government construction could be more susceptible to corruption and lacks experience in the key skills of procurement. It’s not their fault but it’s been years and they will have forgotten how to do it. Will we see price reduction? Possibly, if there is price deflation in development land. But we could also see an unintended consequence: undermining the private sector and stopping it in its tracks.”

John Anderson “Direct commissioning could well help to address part of the housing supply problem. The private sector market is cyclical, so direct commissioning could create a more reliable ongoing flow of housing stock. It also has the potential to make better use of underutilised public land, so it’s encouraging that the Government has confirmed that it will release land with capacity for up to 150,000 homes over the next five years.

Dayle Bayliss the owner of construction consultancy Dayle Bayliss Associates

That said, as much as I can see merit in the proposal, I think it’s important to recognise what has really had such a fundamental impact on housing supply. Over and above the short-term damage caused to housing supply during the recession, the fundamental gap in housing supply over the last 25 years has largely been as a result of the financial restrictions placed on local authorities, resulting in public sector housing production collapsing. The Government has said that lifting it’s caps on local authorities is not their preferred option at the current time, but at least the commitment to speeding up the planning process is a step forwards in helping to accelerate housing production across all channels.”

Dayle Bayliss “Rather than look at delivery, the Government should concentrate on why there is an issue with supply and demand and why the blockages exist in the current housing delivery system. The Government will not deliver cost-effective solutions to an area’s housing needs and it is not its role to do this. There needs to be a balance between affordability, sustainability and supply; policies exist to support this but there are challenges within these current systems that need to

be addressed, rather than just saying ‘if you don’t build, we will’. Between 2002 and 2012, the UK saw another baby boom, which will only add to the future housing shortage and, given the delays in the system, this future increase demand needs to be addressed now, rather than when it becomes an issue in 10-15 years’ time. Systems do exist through which cost-effective homes can be provided, for example through developers, private landlords and housing associations. A buoyant and effectively working housing market provides a range of property so that differing needs can be accommodated - whether rental or owned - but unless the blockages in the availability of land and viability issues are addressed, whether it’s the Government or developers building the houses, the blockages will still exists. I fail to see how the Government will find the land to develop on that doesn’t have the same issues that developers face - unless they change the planning system. This isn’t just changing the system so that the framework is loosened, but working in a way where communities, planners and developers work collaboratively to deliver housing that meets community needs, and acceptance, in a sustainable and well designed manner.” n Round Table 25

THE

BIG INTERVIEW Steve Hindley, chairman of the Midas Group and the CBI Construction Council talks school days and skills shortages with Builder and Engineer AS chairman of the Midas Group and the current chair of the CBI Construction Council – which he has been involved with for over 30 years – it’s fair to say Steve Hindley has his hands full. Far removed from his early days working on site, day-to-day he is more likely found talking with Government officials, as part of his role on the Construction Leadership Council, which is charged with delivering the Government’s longterm strategy for the construction industry – Construction 2025. Construction 2025 is a longterm partnership between Government and the construction industry to get Britain building. The challenges are significant: lowering build and whole life costs by 33%; halving delivery time from inception to completion; a 50% cut in built environment greenhouse gas emissions and a 50% cut in the import/export

26 www.builderandengineer.co.uk

trade gap for construction products/ materials. And on top of that, he still has the day-to-day task of overseeing the smooth running of the Midas Group – which is one of the largest independent property services providers in the UK. Midas has offices throughout the South West and South Wales across its specialisms: construction, retail, interiors, affordable housing and developments, and in his role as chairman, Hindley oversees the lot of them – making him a pretty busy man. And considering he managed to mess up his first ever job in engineering, it’s fair to stay Steve Hindley has had a pretty successful career. “My first job was working on the Gravelly Hill Interchange near Birmingham, better known by its nickname Spaghetti Junction, one of the biggest project of its kind ever undertaken in this country. I managed to build a support column two feet higher than it should have been, a mistake that was not discovered until the Bridge Deck arrived a few weeks later. “I subsequently learned that engineers who make such mistakes get promoted into management where they do less harm. It’s a high risk strategy for a young graduate – but it worked for me.” And work for him in certainly did. Hindley initially entered the construction industry after his school headmaster recommended him for a career in the industry.

“When I was at school my headmaster interviewed me about my career choices. I wasn’t particularly good at English or the arts but I could do maths and science. So he suggested engineering (I was never going to be clever enough to be a scientist). “He outlined a few options, electrical, mechanical or civil engineering and as this was before the birth of IT they all sounded a bit factory or office based. Civil engineering sounded like travel, the ability to control major projects in remote locations and I had heard of Brunel. So off I went to university to read civil engineering and I’ve been in the construction industry ever since and enjoyed almost every minute of it,” he adds. Hindley is the second chairman of the CBI’s dedicated Construction Council, which was created off the back of a recommendation by industry experts. Hindley explains how a few years ago he was part of a group of construction industry leaders who approached the CBI and asked them to create a dedicated Construction Council to form a single voice for the whole industry that could articulate the needs of the sector to Government, “Other sectors had one and we felt construction needed a bigger voice,” he says. John McDonough, CEO of Carillion, was the first chairman, with Hindley picked as the second chair. He believes he was picked because “the industry needs to show that it’s not just run by the big companies – meaning there is input from all corners of the sector”. As chairman, it’s his job to ensure the CBI’s Construction Council identifies and addresses issues specific

to all parts of the sector including contractors, builders, designers, house builders, manufacturers and specialists to influence mainstream CBI and, ultimately, Government policy. Hindley recognises that the industry has changed a lot over the past 20 years in terms of its much greater collaborative approach. But believes that unfortunately a lot of that progress was lost in the recent downturn. He says: “Unless we are able to regain that ground quickly we will not make the improvements to our industry that we aspire to as set out in Construction 2025. “Too much work has been procured on price alone over the past seven years, taking little account of innovation, energy efficiency and other whole life cost issues. “Hopefully that situation will change as we move through recovery. I am certainly noticing at Midas that more and more of our clients are expressing a wish to work with one or another of our teams because of our knowledge and competence rather than the ability to provide a cheap price. Let’s hope that continues.” He adds: “Over the last 12 months the recovery has been quick (especially in house building) and so there is now a big demand for people and skills - which of course raises its own problems for the industry. “Through my involvement in the industry as a whole, and as chairman of my local LEP, I am keen to work up initiatives to engage with more young people who are looking for their first career. It seems to me that in a successful and growing economy if we allow one young person to sit at home without job

opportunities then we will have failed.” Hindley also believes the Government must make it easier for SME firms to bid for public sector work, explaining that what’s needed is a greater understanding within public sector procurement teams nationally of the industry and its needs. “Collaborative working was previously much more prevalent. We need a return to this way of operating and the industry needs to take a lead in making this happen by creating a structure that can comply with the European procurement rules we all have to work within. “By improving the procurement process, the Government will speed up project flow. The UK simply cannot continue to operate with procurement 20% more expensive than Europe.” So while the Coalition has learned over its time in government that supporting the construction industry and investing in infrastructure is one of the best ways to fire up the economy and get the country moving, Hindley is adamant that more still needs to be done to make it easier for SME firms to access public sector work. He concludes: “As the financial state of the country continues to improve, we all want to see growth and a healthy economy, and from the perspective of a large construction firm, Midas certainly welcomes the reviews of things like the planning system. But as the economy grows, and with it its population, we need to accept that more buildings have to be built. The issues around where new buildings and developments are sited is becoming increasingly polarised and there is no doubt that the system needs to be better geared towards delivering sustainable growth.” n Health & Safety 27

GREEN News Home-grown wind power means Britain escapes expensive fossil fuel imports AS energy security rises up the agenda across Europe, a report by independent analyst Cambridge Econometrics shows additional wind power would make the UK’s energy supply more resilient by cutting costly imports of fossil fuels. In 2013, wind energy reduced the UK’s need to import coal by an estimated 4.9 million tonnes and gas by 1.4 billion cubic metres, a study by Cambridge Econometrics has revealed. 56% of the UK’s gas supplies and 79% of coal were imported in 2013. Without wind energy, import levels would have been higher. Wind is increasingly displacing the need for coal and gas, helping to reduce Britain’s dependence on foreign fossil fuels. Wind energy generated enough power to meet the needs of 6.8 million homes in 2013 and it would have cost more than £579 million to import the vast quantities of coal and gas displaced by wind. The report, commissioned by trade body RenewableUK, also looked ahead at how using either more wind or more gas would serve the UK’s energy needs in 2020 and 2030. As UK gas supplies from the North Sea dwindle, using more gas would cost £3.1 billion

in 2020, rising to £7.4 billion by 2030, according to the study. The report concludes that as the cost of wind is predictable, using a greater amount of it to generate electricity amounts to investing in an insurance premium against the uncertain cost of gas. The study reveals that if the cost of gas increases by 2030 in line with Government’s high prices forecast rather than its central prices forecast (a 41% increase), the cost of generating electricity would increase by 8%, whereas if the UK uses more wind it would increase by less than 4%. n

Tube power could heat up to 20,000 Greenwich homes RESIDENTS of up to 20,000 homes in Greenwich could see their heating bills slashed thanks to the installation of new gas turbines to help power London’s Tube network. Waste heat resulting from electricity generation at the capital’s historic Greenwich Power Station would be feed into a district heating network created as part of a major revamp announced by the Mayor of London, Boris Johnson, and Transport for London (TfL). The installation of up to six brand new gas engines in the building’s Old Turbine Hall, originally the electricity generator for London’s trams, will provide cheaper, low carbon power for London’s Tube network, making it more self-reliant and limiting the risk of rising energy prices. Meanwhile, the waste heat would be channelled into a brand new local heat network to supply hot water and heating for buildings,

28 www.builderandengineer.co.uk

including schools and homes, and reducing utility bills for residents. All six engines would have the potential to heat the equivalent of 20,000 homes, as well as improving local air quality by reducing boiler emissions of nitrogen dioxide. Once established the new technology is expected to substantially increase the power station’s use and by 2025, the new engines would provide up to 155,000 megawatt hours of electricity, around 13% of the Tube’s annual requirement and equivalent to supplying 39,000 homes. With London’s population expected to grow by an additional one million in the next 10 years, demand for electricity in the capital is expected to grow by up to 4% a year. n

The Madness of King George, SubContracting and Killer Clauses – Part 2

IN brief UK Green Building Council appoints new chief executive The UK Green Building Council has appointed Julie Hirigoyen as its new chief executive. Hirigoyen is currently UK head of sustainability for international property consultant JLL. Andrew Gould, chairman of UK-GBC, announced the Board of Trustees has appointed Hirigoyen to the role after an extensive recruitment process, which

attracted an extremely strong field of applicants. She will replace outgoing chief executive Paul King and will assume the position in April 2015. Hirigoyen will lead the industry-backed charity as it goes into its eighth year of campaigning for a sustainable built environment. n

Electricity for a quarter of UK homes powered by wind Wind generated enough electricity to supply the needs of more than 6.7 million UK households last year; a 15% increase on the amount generated in 2013 (up from 24.5 terawatt hours to 28.1TWh in 2014) - just over 25% of all UK homes all year round. Wind farms feeding into the grid, as well as smaller sites connected to local networks, provided 9.3% of the UK’s total

electricity supply in 2014, up from 7.8% in 2013. Other records were broken in December, with a new monthly high of 14% of all UK electricity generated by wind, beating the previous record of 13% set in December 2013, as well as a new quarterly record of 12% of electricity from wind in the last three months of 2014, breaking the previous record of 11% set in Q1 of 2014. n

£1.9m funding for further Welsh flood defence improvements The Welsh Government has approved £1.9 million of further funding for coastal defence improvements in West Rhyl. The investment brings Welsh Government funding to £6.3 million for the overall scheme, which, once completed, will mean a reduced flood risk to over 2,600 residential homes

and commercial properties in the area. The scheme will see improvements to the original, vulnerable sea wall, built over 70 years ago, and will include the construction of a concrete revetment, wave walls and a widened promenade to provide a wave splash zone. n

57%

The proportion of onshore wind farms being thrown out of the planning system has more than doubled to 57% since 2008, according to a new report.

New report from Association of Decentralised Energy says Britain needs 14 fewer power stations thanks to energy efficiency gains.

12%

The amount green energy investment increased by in 2014.

2050

As part of the Government’s 2008 Climate Change Act, the UK has vowed to reduce emissions by 80% by 2050.

45%

The amount of CO2 emissions the construction industry creates, according to a study by WRAP.

It is no secret that Sub-Contractor and supplier prices are rising faster than Main Contract prices. Contractors are being squeezed at both ends and margin erosion and liquidity issues will force a number of Contractors to either change their working practices or fail. If you are a Sub-Contractor, you can expect a tough ride over the next couple of years as Contractors resort to “every trick in the book” and some new ones to try and deprive you of your cash in order to deal with these problems. As a practice we look at a large number of Sub-Contract terms on behalf of funders, directors and other stakeholders. I can therefore say with certainty that there is an increasing trend of Contractors looking to play rough and dirty, probably because it is perceived that a more aggressive approach to Sub-Contractors is needed in order to combat the margin erosion and liquidity issues I refer to above. They say that desperate folk resort to desperate measures and a number of Contractors are resorting to introducing some frighteningly onerous provisions in order to shift the see-saw of legal risk so far in their favour that I would have to conclude that only those Sub-Contractors with a death wish would agree to them. Below is an example of a very subtle killer clause we have seen just this week. We define a killer clause as provision in a contract that is so onerous, we would be unable to support a Sub-Contractor’s application for funding by an Asset Based Lender or Clearing Bank because the chances of abuse, failure and exploitation by the Contractor who is proposing such terms are so high that we judge them to be a foregone conclusion. Any Sub-Contractor who is stupid enough to agree to such provisions is courting disaster and is likely to fail as a result at any time and is not one we would ever support for funding. To save embarrassment, I have deliberately failed to disclose the identity of the Contractor, whose terms these are. “Further, in the event of the Sub-Contractor becoming insolvent (whether liquidation, receivership or otherwise) the Sub-Contractor further a) assigns to the Main Contractor the benefit of all and any rights arising under any other sub-contract entered into between the Sub-Contractor and the Main Contractor (or any other main contractor which is an affiliate, subsidiary or parent of the Main Contractor as such terms are defined in the Companies Act 2006) including the balance of any retention or further sums due under any such contract, and b) agrees that the Main Contractor is entitled to cross set off any other sums due to the Sub-Contractor under any other sub-contract entered into by the Sub-Contractor and Main Contractor (or any other main contractor which is an affiliate, subsidiary or parent of the Main Contractor as such terms are defined in the Companies Act 2006) towards any loss and expense and/or damage the Main Contractor may suffer as a consequence of the insolvency of the SubContractor under this Sub-Contract, and c)

grants to the Main Contractor a lien over any of its plant and machinery and materials on site at the date of insolvency

and further irrevocably appoints the Main Contractor as its attorney and authorises the Main Contractor to do such acts and execute such documents necessary to render such rights effective within 7 days of any written request from the Main Contractor” Now call me old fashioned but in Viking times such a provision might appear in an agreement between rival clans planning to rape, steal and plunder! Why would a Sub-Contractor agree to such a ridiculously onerous clause that might just tempt an unscrupulous contract administrator to hasten a Sub-Contractor’s downfall in order to take advantage of such a provision? And before anybody tells me that such occurrences only happen in movies about Wall Street, let me tell you that we see the results of Sub-Contractors who have signed up to such provisions in our insolvency team on a weekly basis and the results are not pretty. It really is all rough and tumble out there at the moment! So, if you are thinking of signing up to a Sub-Contract incorporating a provision like the one above, can I suggest that you give serious thought to pursuing an alternative career, perhaps as a vendor of fruit and vegetables at your local market. It would be a lot less risky and might save you losing your house. And finally, ..... please don’t say that you can’t afford to take advice before you sign up to these sorts of provisions. The reality is you simply can’t afford not to take advice! If you are going to sign up to a killer clause it may be a good idea to make sure your corporate will is in place. You are sure to need it, as well as advice from a good insolvency practitioner, at some point in the very near future. Now what was all that King George madness about …….? Peter Vinden is a practising adjudicator, arbitrator, expert and mediator. He is Managing Director of The Vinden Partnership and can be contacted by email at pvinden@vinden.co.uk. For similar articles please visit www.vinden.co.uk

North of England, Wales & Scotland Tel: 01204 362888 Fax: 01204 362808 Midlands & East Anglia Tel: 0115 947 5334 Fax: 0115 947 5335 London & South of England Tel: 0207 065 7060 Fax: 0207 194 7501

Green News 29 209947-3-15 Vinden.indd 1

04/02/2015 15:00

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What’s On Our round up of key events coming up in the sector 26 February

Procurex North The programme of Procurex Live 2014/15 regional events is dedicated to supporting the delivery of public services by providing anyone buying for or supplying to the public sector with training, networking and collaboration opportunities in this multibillion-pound marketplace. Manchester Central For more information: http://bit.ly/1ERgSfr

3-5 March

Ecobuild Ecobuild is the world’s biggest event for sustainable design, construction and the built environment and the UK’s largest construction event and this year. It offers the biggest showcase of sustainable construction products anywhere, with more than 1,300 exhibitors and 600+ speakers. London’s ExCeL conference centre For more information: http://ubm.io/19X6CoL26

26 March

Women in Construction Awards The Women in Construction Awards, in its ninth year provides a showcase for the brightest and the best female achievers in the housebuilding and wider construction industries. Manchester For more information: http://bit.ly/1mawmQJ

14-16 April

Plastic pipes in infrastructure Plastic Pipes in Infrastructure 2015 offers a unique networking opportunity for delegates representing the entire industry, including pipe specifiers and installers and end users, resin suppliers, additive producers, machinery makers, pipes and fittings manufacturers, testing and certification bodies, etc.

The event provides a comprehensive overview of the latest material, technology and business trends. London For more information: http://bit.ly/1COVOXN

16-17 April

TechX15 A specially curated exhibition and conference, TECHX15 explores new business models, collaborations and partnerships, and radical new ideas made possible by technology. As a vehicle to promote tech-based economic development, TECHX15 brings together major enterprise from across all sectors, as well as providing a place for start-ups to meet with investors and partners. London For more information: http://bit.ly/1Ka0h7S

21-23 April

Sustainability Live Sustainability Live incorporating NEMEX and Energy Recovery has been the hub of energy and sustainability solutions for the UK business community since its inception in 2007. It offers attendees the chance to be inspired, learn ‘how to’ and find solutions to every aspect of energy and sustainability. Birmingham NEC. For more information: http://bit.ly/19fXr4HMay

26 May

RICS European Smart Cities Conference RICS European Smart Cities Conference 2015 brings together senior RICS leaders, industry experienced innovators, cuttingedge real estate and infrastructure professionals and those looking to learn more about the smart cities movement, progression and development across Europe through this one day programme tailored for surveyors and their role. London For more information: http://bit.ly/1v8Bobh

PRODUCTS & SERVICES DIRECTORY

PRODUCTS & SERVICES • WWW.BUILDERANDENGINEER.CO.UK

EFFICIENT STRUCTURAL STABILISATION ENABLES ADJACENT DEMOLITION TO PROCEED A growing use for Helifix masonry reinforcement systems is to stabilise existing buildings during a new construction phase or a significant restoration, enabling major structural works to be undertaken safely and costeffectively. Some of the more common requirements are: to allow the removal and replacement of significant structural elements; to reinforce against heavy drilling or piling vibrations; to enable the creation of new openings and reduce the loadings on other elements; to open up work space by reducing or eliminating the need for traditional temporary mechanical props; to reinforce party walls during demolition and development of neighbouring properties. A recent project in Williamson Square, Liverpool, is a good example of the last application. A number of dilapidated Victorian three storey buildings were to be demolished to make way for some new retail units. However, a laser survey showed that the adjacent concrete frame building, constructed in the 1970’s, had been built into the gable end wall of the properties to be demolished, with the two adjacent 9” walls in effect creating a solid party wall which had to be tied together and retained. The project engineers asked Helifix to design a suitable structural solution and a scheme was devised using grouted CemTies and SockFix grouted sock anchors. Over 1,000 8mm stainless steel CemTies of varying lengths, bonded with HeliBond cementitious grout, were installed in a 450mm x 450mm staggered formation to tie together the two adjacent gable end walls. Some 60 SockFix grouted anchors, 1,500mm long, were then installed at 600mm horizontal centres into the hollow concrete floor slab of the adjacent building at each floor level. These secured the retained gable wall to the main structure of the existing adjacent building. The Helifix ties and anchors provided a fast, efficient and economical solution and, with the wall fully secured, the main contractor was able to proceed with the demolition without any major contract delays. Helifix engineers design solutions that quickly, easily and economically overcome difficult temporary situations which could otherwise prove dangerous, time consuming and costly to planned developments. For more information call Helifix on 020 8735 5200 or go to www.helifix.co.uk/applications.

TURN KEY’S SPECIALISED DESIGN REMOVES THE NEED FOR HOTEL LEAK DETECTION The installation of new air conditioning system into a Buckinghamshire hotel is demonstrating how the clever use of design and specification can remove the need for leak detection equipment in occupied spaces. The Crowne Plaza, Gerrards Cross is a 147-bedroomed hotel and conference centre which has undergone a complete refurbishment having been bought by the Cairn Hotel Group. Specialist air conditioning contractors, Turn Key Air Conditioning Ltd has installed a Mitsubishi Electric City Multi heat recovery system into the hotel, to offer guests the ultimate in modern complete comfort and style. Current legislation restricts the use of refrigerants in buildings, with EN378 in particular intended to minimise possible hazards to persons, property and the environment from refrigerating systems and refrigerants. Under EN378 legislation, which is particularly applicable for hotels, leak detection equipment must normally be provided if, in the case of R410a, a concentration of 0.44 kg/m3 refrigerant could be exceeded, if all of the refrigerant from a system were to leak into a single room. Turn Key has developed an on-going relationship with The Cairn Group since providing maintenance service and advice on the Newcastle International Hotel. Swirles and his team have extensive hotel experience and this gave the Cairn Group the confidence to bring Turn Key in at an early part of the design process. “We worked closely with The Cairn Group from day one to design a system that meets all requirements in terms of guest comfort, energy efficiency and legislation,” added Swirles. In close association with Mitsubishi Electric Value Added Reseller (VAR) PACAIR, Turn Key designed the system with the minimum amount of refrigerant in each bedroom to comply with EN378. PACAIR also helped ensure that the equipment design was modular to allow the hotel to continue trading during the refurbishment and minimise the disruption to both the business and its guests. This is where the unique two-pipe, heat recovery City Multi system comes into its own as it provides much more flexibility of design and installation. “Each room is fairly unique so we also had to ensure that the design was flexible enough to cope with the different sizes and layouts,” said PACAIR Managing Director, Nigel Palmer. For further information on the solutions available from Turn Key visit the website: www.tkac.co.uk

ANCON LAUNCHES ‘ACOUSTIC RANGE’ AT ECOBUILD 2015

Greener Business should not cost the earth

ANCON, specialist in the design and manufacture of high 212270-3-15 B&E Mitsubishi .indd 1 integrity steel structural fixings, will introduce its new Acoustic range of cavity wall ties and shear load dowels at the UK’s leading sustainable construction event, Ecobuild 2015. Ancon Acoustic Wall Ties connect the leaves of a cavity wall and feature a pre-compressed acoustic isolation element to minimise the transfer of airborne noise. Typical applications for these high performance products are recording studios and cinemas, however they are equally suitable for any new build residential development as they comply with Approved Document E of the Building Regulations as a Type A tie for separating walls. Available in incremental lengths of 25mm, the new Ancon ACOU range suits a cavity range of 50mm to 175mm. The new Ancon Acoustic Dowel is designed to transfer shear load and allow essential movement at joints in concrete frames, while also reducing impact sound through a building by isolating adjacent concrete elements. Typical applications include multi-occupancy buildings, such as hotels and apartments. Tel: 0114 275 5224,

Email: info@ancon.co.uk,

02/02/2015 11:15

Web: www.ancon.co.uk

HELIFIX LAUNCHES NEW RESPONSIVE WEBSITE Helifix has re-launched its website to make it fully accessible

212291-3-15 B&E Ancon .indd 1 of visitors accessing the site via a to the fast growing number

23/01/2015 09:08

smartphone or tablet device. The website at www.helifix.co.uk now features an innovative responsive design, meaning that the layout and format automatically resizes and shifts to provide optimised viewing, irrespective of the screen size and definition used. Helifix website users are now guaranteed the same user friendly experience and high quality content every time they visit, whether at work on a desktop, at home on a tablet or on-site via their smartphone. The website gives round-the-clock access to the Helifix range of market leading helical wall ties, fixings and masonry repair systems which provide secure and lasting connections in new build projects or remedial applications where they can greatly extend the life of an existing structure. Registered users have access to over 100 standard Helifix repair specifications and 30 technical product datasheets. The portfolio covers all common masonry repairs including crack stitching, stabilising bowed walls and creating load bearing beams. Visit www.helifix.co.uk on your mobile or tablet or call 020 8735 5200 for further information on Helifix products.

ANCON TO UNVEIL NEW ACOUSTIC DOWEL AT THE UK CONCRETE SHOW

Leading innovator in high integrity steel structural fixings,

ANCON, will launch 1its latest product at Europe’s largest 212302-3-15 B&E Helifix.indd

02/02/2015 11:19

specialist concrete show in February 2015. The new Ancon Acoustic Dowel is designed to transfer shear load and allow essential movement at joints, while also reducing impact sound through a building by isolating adjacent concrete elements. The stainless steel Ancon Dowel locates in a sound damping sleeve that de-couples components such as concrete stairs and the main concrete frame. Typical applications include multi-occupancy buildings, like hotels and apartments, where noise can negatively affect a person’s concentration, relaxation or sleep. Another new product from the company is the parallel-threaded Bartec Plus system, the latest addition to Ancon’s comprehensive range of reinforcing bar couplers. Awarded UK CARES Technical Approval TA1-A, Bartec Plus is suitable for fatigue applications, including major road and rail infrastructure projects, and has recently been installed on the Forth Replacement Crossing in Scotland. Tel: 0114 275 5224, Email: info@ancon.co.uk, Web: www.ancon.co.uk

Improve the environmental impact of your business, Increase your green credentials and gain that commercial edge Find out more at: www.greenerbusiness.co.uk

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