Briefly Legal - Winter 2011 by Watson Burton

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200 years young

Watson Burton celebrates its 200th anniversary in style

EXCITING NEW ERA FOR CNG Jacqui Hall outlines future vision for company following the successful management buyout of the leading independent gas supplier

SURGO SECURES STRONG FUTURE PLANS Jeff Alexander reflects on what has been a successful year for Surgo

FULL THROTTLE FOR UBISOFT REFLECTIONS Giselle Stewart discusses the key to success in creating a unique experience for computer gamers

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This is a We’re marking 200 years of very special Watson Burton by providing top quality, robust, relevant advice year for us to our clients. Our clients are the reason for our success, and relationships are at the heart of Watson Burton. Many firms say that they are ‘client focused’ and sometimes it sounds like just another example of marketing speak. I was asked by one of our office juniors recently what it meant, and how it related to her role. We decided it meant ‘to be bothered’ – to care about the client, care about securing the best possible outcome, care about quality, care about client satisfaction – and be engaged.

No business can rest on its laurels - none of us can accept the status quo. We must always look forward and work together to secure a strong, confident future. Despite the financial and economic problems the country faces, business keeps on moving forward – sometimes slowly, sometimes more rapidly.

We all have to be fleet of foot and work with the changing times. That doesn’t mean discarding So you could say ‘to be bothered what has gone before. It means and be engaged’ is what the building on it. It also means firm is about. strengthening valued relationships and developing new partnerships. As senior partner, I’m hugely proud that we are celebrating Despite technological advances – 200 years of Watson Burton emails, skype, video conferencing, history this year, but I’m aware it’s still important to meet face to face to build rapport and that’s it’s equally important to spark ideas. I can’t see that look to the future.

changing, and indeed we think it will become even more important in the future. We would not be here today without the friendship and support of our clients or without the hard work and dedication of our talented colleagues in all three of our offices. Thank you all for your continuing loyalty. You can be assured that Watson Burton will always ‘be bothered’ and we look forward to the next 200 years! With very best wishes for 2012.

Gillian Hall Senior Partner Watson Burton

Pioneering waste project for North Yorkshire North Yorkshire County Council and the City of York Councils outline details of a £900 million capital value waste management PFI project which they have been awarded EU procurement evolution Roddy Gordon examines the upcoming changes in EU procurement practices as a result of the European Commission’s recent Green Paper evaluation

10 Exciting new era

16 Supporting a change

right direction

Gillian Hall evaluates changes within the education system

Further to Tracy Hall’s recent move to Watson Burton, she considers the deepening North South divide within the property sector

18 Adding value

Duncan Reid helps demonstrate Watson Burton’s commitment to its clients, with an overview of an innovative system launched for a key client

21 Celebrating 200 years of quality service Watson Burton recently hosted a celebratory dinner to celebrate the firm’s 200th anniversary with clients

25 Surgo secures strong

for CNG

future plans

MD, Jacqui Hall, outlines CNG’s vision for the future after a successful management buyout of the company

Business Development Director, Jeff Alexander, outlines highlights for the company over the past year and looks forward to the future

12 Energy Efficiency

Watson Burton’s head of energy, Duncan Reid looks at the implications of Energy Act 2011 on businesses

14 Carmel College converts to academy status

30 Moving in the

in education

28 Caught in the

32 Full throttle for

Ubisoft Reflections General Manager, Giselle Stewart, discusses the achievements of Ubisoft and sets vision for future growth

34 Employment law: A clearer picture

Michael Ord looks at recent changes in employment law which may require your attention

36 A year to remember CEO, Patrick Harwood reflects on a momentous year for the firm

38 A quality service

We reveal the results of an in-depth study of the firm’s service delivery

Construction Act Sarah Wilson reflects on the recent alterations to the Construction Act, outlining key changes for the sector

We examine the conversion of Carmel College with Principal, Maura Regan

Article Title Waste Project for North Yorkshire Pioneering

Pioneering Waste Project for North Yorkshire

An Artist impression of the Recovery Park for North Yorkshire

Pioneering Waste Project for NorthArticle Yorkshire Title

Watson Burton is advising on the largest ever contract awarded by North Yorkshire County Council and the City of York Council. The ÂŁ900m capital value waste management private finance initiative project will span 25 years.

The

law firmâ&#x20AC;&#x2122;s construction and projects team is working with both councils on the first recycling plant of its kind in the country. The councils have awarded the contract to AmeyCespa, a consortium between UK services company Amey and its sister company, Spanish waste firm Cespa.

The waste management project will handle around 300,000 tonnes of waste a year. AmeyCespa will use mechanical technology to reclaim around 20,000 tonnes a year of recyclables from residual waste, as well as extracting a further 40,000 tonnes a year of food and organic waste which will be turned into energy using anaerobic digestion (AD).

The waste which cannot be recycled or treated in the AD plant will be turned into energy using energy-from-waste incineration, with the plant expected to produce 24 megawatts of electricity enough to power 40,000 homes (based on Office of National Statistics data for the region). The residue from this will be used to create at least 50,000 tonnes-ayear of construction aggregates.

Pioneering Waste Project for North Yorkshire

“ ”

The quality of the advice we are receiving from Watson Burton’s high level, committed team is making a real difference, helping us drive forward this important project. David Bowe, Corporate Director Business and Environmental Services, North Yorkshire County Council

An Artist impression of the Recovery Park for North Yorkshire

Pioneering Waste Project for North Yorkshire

Expert Advice Watson Burton’s construction and projects partner, Roddy Gordon is leading the legal team advising the councils, alongside consultant Luan Kane. The firm is advising on all aspects of the procurement. Because of the length and strategic importance of this project it has been the subject of intense scrutiny, risk analysis and negotiation. The strong team from Watson Burton also includes partners Mark Lazenby and Bryan Riley. Watson Burton’s success in being chosen for this regionally important project reflects the expertise of the team in advising on PFI projects, the waste sector and acting for public bodies. Bill Woolley, Director of City Strategy, City of York Council said: “It is very important that the proportion of household waste we recycle continues to increase, and that we have effective measures in place to enable us to stop relying on landfill as a means of disposing of the waste which is left. We tendered for a service to treat all residual household waste and further reduce the need to use landfill - AmeyCespa’s tender was identified as the most suitable to meet our needs.” Roddy Gordon said: “This is a key longterm contract for North Yorkshire and York. We’re very pleased to have been involved in such a complex, detailed process for a sustainable waste management solution. The project brings together our experience in major projects, public sector, planning and construction sectors.”

David Bowe, Corporate Director Business and Environmental Services, North Yorkshire County Council said: “The quality of the advice we are receiving from Watson Burton’s high-level, committed team is making a real difference, helping us drive forward this important project.”

Energy from Waste The UK could meet half its renewable energy target for 2020 through the use of energy from waste, landfill gas, anaerobic digestion and second generation biofuels, according to a report from Cranfield University. It states that rapid expansion of waste and biomass-based power requires “considerable” financial support and government backing.

Allerton Waste Recovery Park AmeyCespa submitted a planning application for the ‘Allerton Waste Recovery Park’ waste management facility at the site of a current quarry and landfill near Harrogate in September 2011. If approved, the Park will use mechanical sorting, anaerobic digestion and energy from waste technology to treat residual waste from across the county. It could be in operation by 2015.

the authorities to reach their 50 per cent recycling target for waste by 2020. Project director Bill Jarvis said: “This is the most up-to-date, cost effective and end-toend solution to deal with North Yorkshire’s waste.” The anaerobic digestion plant will treat the separated organic waste. It will produce a biogas which will generate around 1.1 MW of renewable electrical power. The proposed Allerton Waste Recovery Park will create around 70 long-term jobs and up to 400 construction jobs as the project develops. The Recovery Park intends to enter into a partnership with local colleges which will support training of relevant skills for the jobs needed in its construction. When the project is completed, it will include an education and visitor centre to explain the processes to visitors of all ages, and how they can improve recycling in the area.

Bill Jarvis, project director said: “The scale and impact of this project gives it significant long-term importance. It has evolved through listening to community feedback and changes have been put in place to improve layout and appearance. The key aspect of this pioneering waste management AmeyCespa says the development will reduce scheme is that it will provide a saving – not the amount of the county’s household waste a cost – for the two local authorities involved. sent to landfill by at least 90 per cent. “The project will revolutionise the way in Landfill waste cannot continue in the long which we recycle, reuse and collect waste term as landfill sites are rapidly filling up. right across North Yorkshire, and that The government has set stringent targets for waste management, including alternative affects everyone living and working in the and sustainable solutions. It will also help county.”

EU procurement evolution

PROCUREMENT EVOLUTION

Roddy Gordon, Head of the construction and engineering group

The European Commission intends to use the responses to its recent Green Paper and evaluation of the procurement rules to produce legislative proposals, which were due for publication December 2011.

procurement rules govern how public money is spent and allow companies throughout the EU to compete for public contracts. Although the cost of procuring goods and services in compliance with EU directives is less than 1.3% of the value of published invitations to tender, (approximately â&#x201A;Ź5.26 billion), there is still considered to be room for improvement when it comes to reducing expenditure. In the current economic climate, public procurement is faced with the challenge of a shrinking public purse.

EU pro procurement evolution

Evaluation In June 2011, the European Commission published its findings in relation to an evaluation of EU public procurement legislation. The evaluation of the impact and costs of EU public procurement found wide diversity between member states in time and costs of procurement procedures. This identified this identified the scope for reducing time and cost by aligning practices across member states. The current Directives relating to public authority/utility contracts for goods, works or services are Directive 2004/17 (Utilities Directive), Directive 2004/18 (Public Sector Directive) and Directive 2007/66 (Remedies Directive). The evaluation found that the Directives have helped transpire an outcomedriven procurement in the EU, triggering competition, generating savings and improving the quality of procurement outcomes. However, the evaluation also identified some significant areas for improvement, as follows: • There are different approaches by member states to procurement which falls below the threshold and therefore outside of the EU directives • The increasing use of framework agreements can prevent competition for long periods of time and may exclude SMEs due to their size • E-procurement is not as widely used as it could be • The use of public procurement to support policy objectives can reduce the number of potential suppliers, making the process more complex • The open procedure is the most commonly used, representing 73% of all contract notices in OJEU • Dynamic purchasing systems are under-used • Cross border procurement only accounts for 1.6% of contract awards and there is a reluctance to use cross border tendering • Restricted procedures are the most expensive for contracting authorities

• In terms of time and efficiency, some member states were three times more expensive and took three times longer than others to run procedures

Modernisation The Commission also released the responses to its Green Paper that was published in January 2011, which consulted on the modernisation of the public procurement rules, indicating that a decision to update and simplify public procurement rules was a favourable one. The Green Paper responses in relation to improvements can be summarised as follows: • The majority of contracting authorities supported an increase in the thresholds • The EU procurement rules were considered to be too detailed • Procedures do not allow contracting authorities to achieve the best possible outcome • More negotiation was required in award procedures • Contracting authorities should be able to consider their past experience of bidders • Joint procurement should be utilised

What’s next? So, in 2012 what should we expect at the end of the year? There has been increased focus on the use of public procurement to promote national policy objectives of member states e.g. green procurement. Whilst this has benefits, it can also be perceived as complicating the process and discouraging bidders. This may result in us seeing the current rules being changed to

encourage cross border procurement and/or to standardise how national policy objectives are applied. The focus may also turn to the most efficient member states for practices in relation to public procurement. The aim will be to assess which of their procedures can be applied to the administration of public procurement by all member states. We can expect some focus on SMEs (despite the fact that over 60% of contracts advertised at EU level are won by SMEs) as the consensus was that SMEs would be the biggest beneficiary in a reduction in administrative burden. Joint procurement is perceived as making it more difficult for SMEs to participate. Whilst there is some practice of breaking down contracts into lots to allow SMEs to participate, there is scepticism about introducing mandatory splitting of contracts. Framework agreements can also exclude SMEs but this will no doubt need to be balanced with the finding that framework agreements have the lowest costs in comparison to all other forms of procurement. Despite support for an increase in thresholds from contracting authorities, this is unlikely to increase, as the view is that this results in less transparency and cross border procurement. The proposal of drawing up tenders in a second language widely to encourage cross border procurement was rejected. The suggestion is that better recognition of certificates across borders would assist bidders however; it is difficult to see how this would be implemented.

Find out how our projects and procurement team can help you by getting in touch with Roddy Gordon. Call 0845 901 0926 or send an email to roddy.gordon@watsonburton.com

Exciting new era for CNG

CNG Managing Director, Jacqui Hall

Exciting new era for CNG

Exciting Exciting times lie ahead for Contract Natural Gas (CNG), the UK's leading independent supplier of natural gas to businesses.

new era for

CNG

Managing

director Jacqui Hall and her management team of operations director, Chris England, and finance director, Tim Jones, have completed a successful management buyout of the 17 year old company from the family of founder Colin Gaines, advised by Watson Burton’s corporate associate James Nightingale and his team.

Jacqui Hall said: “It is a fantastic way to herald in 2012. We can now build on our successes of recent years and grow the company we are all passionate about. We are committed to maintaining our position as the market leader in customer service for the gas market as we go forward.” Jacqui Hall and her team have built Harrogate-based CNG from a £20 million business in 2006 to a £60 million enterprise in 2011, increasing employees from 16 to over 60 in that time.

Excellent Advice Jacqui is clear about the positive effect of Watson Burton’s role in the success of the management buyout. She said: “James Nightingale and his team were invaluable. James really looked after us and always kept us in the loop. The team worked incredibly hard to ensure a successful outcome for us.” The MBO was always the route that CNG would take following the death of the founder Colin Gaines. Indeed, he had put in place the first steps before his death. The process slowed down because of the recession, but was successfully completed in November 2011. James Nightingale said: “It’s rewarding to work with a client on

transactions such as this from the outset. CNG’s customer focus mirrors our own commitment to the best possible service to clients and it is great to have achieved a successful conclusion to a deal which shapes CNG’s future. “This acquisition was complex given the nature of the MBO and the large number of parties involved. It was extremely important that the provision of CNG’s gas services to the commercial market were unaffected by the changes to its shareholding and new finance arrangements. We are extremely happy to have been able to achieve this. The company’s outlook looks very bright indeed.” Watson Burton’s team included senior level involvement from the firm’s corporate, banking, employment and real estate teams. Partners Mark Lazenby and David Jenkins assisted James Nightingale on the completion of the transaction alongside associate Deborah Lazenby. The law firm also advised on the acquisition of CNG Software Limited, which was a separate but important part of the deal. Jacqui Hall said: “We purchased CNG software back into the company. It provides the software we use and we have a team of talented developers who work with us.”

Moving Forward The Harrogate-based company can now focus on driving the business forward. Jacqui Hall said: “Excellent customer service has been central to CNG as it’s grown. We’ve found that the biggest problem people tell us they have had with the gas industry is feeling that they’ve been badly treated. We build relationships with customers so they come to trust us, and we keep in touch with them so they know we will always respond if requirements change. “Our development until recently was based on organic growth and referrals. Moving forward we want to maintain this whilst increasing our momentum to ensure we do not miss out on a slice of the gas market available in key commercial sectors. We plan to build on existing expertise and relationships such as those we have with Ikea, Pizza Express and Ask restaurants and develop in other untapped markets.” Jacqui Hall was headhunted by former owner Colin Gaines, who persuaded her to join CNG. She believes one of the main reasons for the company’s success is its “fantastic” staff. She said: “We recruit strongly and I’ve found that when we interview we tend to look for people a bit like ourselves who have that extra something that they can bring to the role. As a

result we have a strong, cohesive culture of committed, positive people who build on our reputation for great service. “The team understands the market, the importance of first class customer care and most importantly delivery of service as agreed. With features such as time saving online billing and automated meter reading we offer the most convenient service with no compromise on quality.”

Aiming High The top priority for CNG is to build on the company’s established success with customers. Jacqui said: “Our aim is to be a recognised big player for business in Yorkshire. We want to firmly establish ourselves here before we look further afield. We have won high quality customers with whom we have built great relationships, and that makes a difference to our profitability and our long term success. “We are very proud of our company and really excited about what the future holds. There are so many opportunities and we will be working hard to make the most of them in 2012 and beyond.”

Energy efficiency

Energy efficiency Duncan Reid, Head of energy group, Watson Burton

The issue of energy efficiency within the UK has been on the Government’s agenda for the past few years; with the aim of reducing carbon emissions. This has led to the introduction of the Energy Act 2011. In this feature, Duncan Reid, Head of the Energy Group at Watson Burton, looks at the implications of this Act for businesses and what the future may hold in light of the proposed changes.

The

Department for Energy and Climate Change (DECC) spent much of 2011 outlining its policy for a more energy efficient Britain.

In the recent annual energy statement to the House of Commons, Minister, Chris Huhne, outlined the Government’s vision “of a thriving and globally competitive low carbon economy: with cleaner energy, more efficient homes and lower bills”. The Government aims to make this

vision a reality through the implementation of a variety of initiatives with the DECC, The Treasury and the Department of Business, Innovation and Skills (BIS) working together to enforce energy saving measures for businesses and householders in 2012 and beyond. In October 2011, the Energy Bill received Royal Ascent to become the Energy Act 2011. The Act was formed with the aim of improving the country’s framework to enable and secure

low-carbon energy supplies and Energy Efficiency Scheme. fair competition within the energy The mandatory scheme is aimed market. at improving energy efficiency The Act is scheduled to have a and cutting emissions in large major effect on businesses within public and private sector the UK, with provisions including: organisations and hopes to achieve the Coalition’s target of cutting The CRC Energy CO2 emissions by 80% by 2050. Efficiency Scheme The first CRC annual The Energy Act 2011 resulted in the Government publishing a performance league table was Carbon Plan to help bring about recently published, which ranked the shift to a low carbon energy participating businesses based upon the detailed reports they economy, which has included submitted. At this stage the the execution of the Carbon Reduction Commitment (CRC) league table only records energy

Energy efficiency

• The initiative is expected to kick start around £14 billion of private sector investment over the next decade, with new safeguards to allow small family firms, as well as national organisations, to become involved • The deal could support at least 65,000 insulation and construction jobs by 2015, boosting the economy Although the Government sees the Green Deal as a revolutionary scheme in energy savings, it has received a cautious welcome from businesses who are awaiting further information on the impact of the programme.

Private rented sector The Energy Act is also scheduled to have an impact on the property sector as from April 2016, private residential landlords will be unable to refuse a tenant’s reasonable request for consent to energy efficiency improvements where a finance package, such as the Green Deal is available.

...thriving and globally competitive low carbon economy: with cleaner energy, more efficient homes and lower bills figures for 2010-2011, so there are no useful statistics to take from them at this point in time. However, the next league table is scheduled to provide the Government with reports on the reduction in energy year upon year. Whilst the scheme has undoubtedly raised the profile of carbon reduction within the country’s boardrooms, it has not received a good reaction from some businesses, who are worried about the links to the

reputation of organisations.

”

Initial analysis of the scheme has identified three positive benefits for businesses

It also outlines plans to provide powers to ensure that from April 2018, it will be unlawful to rent out a residential or business premise that does not reach a minimum energy efficiency standard.

Moving forwards The CRC scheme and the Green Deal are just some of the initiatives proposed by the Government to tackle carbon emissions and climate change. There are of course the issues of offshore renewable energy, the renewable heat incentive, the feed-in-tariff and other initiatives that are being considered and implemented as part of the UK’s wider energy strategy. However, the Energy Act 2011 demonstrates the Government’s commitment to tackling carbon emissions within the UK, as the country moves towards a low carbon economy. This will bring challenges and opportunities to businesses in years to come.

A Green Deal Under the Act, the Government • Every business will be able to recently unveiled a £200 million install packages of energy saving cash injection into the Green technologies at no upfront Deal Energy Efficiency Scheme, cost, with repayments made over which is due to be launched in time through energy savings October 2012. The basic concept of the programme is that bill payers will install energy saving Find out how the Energy Group can help measures, such as insulation, you by getting in touch with Duncan Reid. into homes and companies across the UK, with the aim of recouping Call 0845 901 0954 or send an email to duncan.reid@watsonburton.com the costs in years to come.

Carmel College converts to academy status

L - R: Ebony Piers, pupil, Maura Regan, Principal of Carmel College, Gillian Hall, senior partner and head of education group at Watson Burton and James Hughes, pupil of Carmel College

Carmel College converts to academy status

Carmel College converts to ACADEMY STATUS Carmel RC College in Darlington was the first Roman Catholic secondary school to convert to an academy in the Hexham and Newcastle diocese, which stretches from the Scottish Borders to the River Tees.

led the way for the North East region’s 162 Catholic schools by successfully completing the transformation to academy status following approval from the Diocese in October 2011. Watson Burton advised Carmel RC College throughout the conversion process, and worked closely with the Diocese and the Department for Education to ensure the success of this groundbreaking conversion.

NEW CONFIDENCE Maura Regan is Principal of the College. She believes the major advantages of academy status include a greater sense of ownership, freedom and autonomy for the school and for parents, students, staff and the wider community. The school will now be able to balance its own budget, deciding where money should be spent within the school, for example on supply teachers or a particular subject area. It will also be able to set its own pay and conditions for staff, and have control over the length of the school day. Currently academies are paid for entirely by the Government, whereas a tenth of capital costs of voluntary-aided Catholic schools are paid for by the Church. By July last year 84 Catholic schools had expressed their interest in becoming academies. Maura Regan said: “The confidence it brings for us to be able to forge our own destinies is powerful. We will always work in partnership with our diocese, schools and authorities but we now have the ability to focus on issues which are real priorities for Carmel College, and that is an undeniable benefit for our students, staff and governors.”

CATHOLIC SUPPORT Carmel College’s conversion to academy status followed the Catholic church’s

announcement early in 2011 that it would support schools that wanted to opt out of local authority controls. The Right Reverend Malcolm McMahon, a Catholic bishop and the chairman of the Catholic Education Service, issued a statement at the beginning of 2011 saying: “We have reflected at length on Catholic social teaching and our responsibilities to the wider community and the poor. We are not in favour of a free-for-all in which some institutions flourish whilst others wither, for our schools are not just lone institutions, they are part of a family both of Catholic schools and the wider landscape of schools,” The bishop added that: “The landscape is changing rapidly and we must be prepared to innovate and adapt with it, wherever appropriate to fulfil our mission in Catholic education. We remember that the primary purpose of Catholic schools is the promotion of the common good through the education of children.”

NEED FOR TRUSTED ADVISERS Maura Regan understood from the outset that the process of conversion required trusted advisers to help Carmel through to academy status. She said: “Steering Carmel RC College to Academy status was likely to be the most significant event in my time as Principal. It was important to the governors and myself that we appointed the right people with the right expertise to ensure a conversion that would stand the test of time and preserve all that is good about our College.

“There are firms that focus more on a ‘knock down price’ rather than a quality provision and I believe that governors and head teachers need to look at the bigger picture when deciding on a law firm. We have received excellent value for money from Watson Burton and have been supported throughout by the superb team led by Gillian Hall. Every possible question has been answered, every request has been scrutinised and every document reflects what we want to see as part of our conversion.” The law firm had to negotiate all the legal documentation, including transfers of assets, funding arrangements and property issues. The team was also successful in securing a longer pension deficit repayment period which will benefit all converting schools within the County Durham Local Government Pension Scheme area. Watson Burton senior partner and head of education and skills, Gillian Hall said: “By establishing the region’s first academy within the Roman Catholic Diocese of Hexham and Newcastle, we have created a model which will benefit other Roman Catholic schools. “We are delighted to have been part of the team helping Carmel College in this huge achievement. I would also like to pay tribute to the Bishop and the Diocese for the help they have given in moving the project forward.” Carmel College is one of the top performing schools regionally and nationally at both GCSE and A level. It was ranked as ‘outstanding’ in all categories in its latest Ofsted report.

“We carried out a rigorous selection process and Watson Burton became the law firm of choice because of their professionalism, accessibility and most importantly their knowledge and first-hand experience of academy conversions.

Supporting a change in education

Supporting a change in education In May 2011, Dr Elizabeth Sidwell took up her role as the Schools Commissioner. Her mission is to raise standards, tackle underperformance and champion the growth of academies, academy sponsors and free schools.

Her

stated aim is more good schools for all pupils, regardless of background. She accepts that this will be a challenge in some areas across the country. In a very telling quotation, she says: “I will not shy away from confronting failure, and I will be honest when I don’t think schools are improving fast enough. My direct experience of transforming a good school to great, turning round a seriously failing school, transforming primaries and setting up a new school means I am not asking anyone to do what I, and others across the country, have not already done.” So far, both of the main political parties have supported the creation of academies - schools which are essentially independent institutions, outside the control of their local authority, and which are directly funded by the Department for Education.

The previous Labour Government introduced the concept of sponsorship, encouraging individuals and organisations to take over the running of failing schools, often providing additional finance. The Coalition has approached academies from the other end – encouraging successful schools to seek independence, with the condition that they provide support and leadership to a less successful entity.

Sponsors This is now being taken to the next stage – under performing schools will be identified as will potential sponsors, and new sponsored academies set up. Schools which are performing well and are converting to academy status must have committed, as part of the application process, to supporting another school. One of the ways they might choose to do this is through sponsoring another school in becoming an academy.

This is a significant commitment of time and resource – the school needs to have the capacity to support the improvement of another school in a formal long-term partnership. All low performing schools which wish to become an academy must have a sponsor who will bring added drive, expertise and capacity. Sponsors have made a huge contribution to the academies programme to date. A good sponsor can play a pivotal role in turning round and improving the life chances of pupils in some of the most disadvantaged and worst performing schools in the country. Sponsors come from a wide range of backgrounds, including, universities, further education colleges, businesses, academy converters and educational foundations to name but a few. All sponsors bring a record of success in other enterprises and a diverse range of experience and expertise, which they are able to

Supporting a change in education

apply to their academies in partnership with experienced school managers. What unites them is a passion for educational excellence, opportunity and capacity to bring it about. Academy sponsors are accountable for progressive and sustainable improvements to performance in their schools. They must lead on improvement and challenge traditional ways of thinking on how schools are run and what they should be like for students. They must seek to achieve success, and must break with cultures of low aspiration. In return, sponsors know they are transforming lives for the next generation. For some, it is putting something back into communities - often communities they know well.

Excitement for change The dedication to, and real excitement for, education and change - as demonstrated by existing sponsors - is infectious, and the best inspiration for those considering becoming sponsors themselves. They bring real expertise across a range of skills such as business acumen, legal advice, financial management and administration. Sponsors are responsible for establishing the academy trust company, the governing body and the appointment of the head teacher. Once a head teacher is appointed, the sponsor will work with them closely to develop the organisation, staffing management and leadership as well as an academy’s ethos, vision and curriculum, so the academy can hit the ground running. Sponsors will challenge the head teacher and staff, and hold them accountable for performance. The academy trust company is the legal body responsible for running the academy. The trust company ensures compliance with the statutory and contractual obligations placed on academies through legislation, and their funding agreements. In establishing the academy trust company, a sponsor can often draw upon

awide range of expertise to support the school. When the academy opens, each sponsor brings a diverse range of expertise, time and effort to that particular academy. No matter what their approach, they cannot deliver real transformation without working effectively with the academy trust company, governing body, principal and senior leadership team of the school. More generally, sponsors remain involved in the life of the academy in different ways through events, mentoring, business links and often championing the academy in the wider community in order to bring new resources to the academy. A sponsor’s innovation and expertise is highly valued by the students, head teacher, teachers and governors alike. The range of sponsors has become increasingly diverse. Since May 2010, sponsors have not been required to make a financial contribution to the establishment of an academy. Sponsors are also not required to establish or support an endowment fund either. However, they can, at their own discretion, decide to support academies financially before or after an academy is established. This is welcomed and can enable the academy to provide opportunities for its pupils that are not supported through Government funding.

Successful sponsors of groups of academies typically have an organisational structure for supporting the schools within their multi-academy trust company. This is funded through a share of the additional resources provided to each academy in place of local authority funding. In addition, any group of schools, regardless of their individual Ofsted ratings, can apply in partnership to join the academy programme as long as at least one of the member schools is performing well. We have seen this in several of the conversions we have been involved with. The schools do not have to already be in a federation before applying. Each application will be considered on its merits, and the Secretary of State will only approve those where he is satisfied the schools have the capacity to enjoy academy freedoms and there are appropriate accountability mechanisms in place to support weaker schools to improve. Every school in the converting group gets the £25,000 grant towards the conversion, which can be used to support the whole group. There are some smaller schools which find this a very attractive option and enable them to share expertise and resources to help support each other through the conversion process.

Raising educational standards The Department for Education and the National College are keen to encourage more school-to-school support and partnership, as they believe there are clear benefits for all parties involved. Many National Leaders of Education lead schools, and one of the ways in which they can do this is through coming together as a group of academies. National Leaders of Education are ideally placed to lead clusters of schools seeking to convert to academy status in partnership. Raising educational standards in pupils is of huge importance, but there is also enlightened self interest at work. More students from these improved schools will go on to further and higher education and higher level apprenticeships – which benefits society at large and the educational sponsors themselves. We are delighted to be playing such an active part in such an important area of work.

More recently, outstanding schools and academies have themselves become sponsors, bringing other schools into a single multi-academy trust company, deploying their expertise and resources to improve weaker schools. This development will become of even greater importance in the next few years as Dr Sidwell grows into her role.

Support Watson Burton has acted for a significant number of outstanding schools on their conversion to academy status. We know that many of them are looking at sponsorship – some already have strong links with particular schools; in other cases they are being asked to take on the sponsor’s role by Government.

Gillian Hall Find out how the Education team can help you by getting in touch with Gillian Hall, Call 0845 901 0955 or send an email to gillian.hall@watsonburton.com

Adding value

In the highly competitive legal sector, Watson Burton recognises that the delivery of a quality service built on a commercial understanding of a clientâ&#x20AC;&#x2122;s business can set one law firm apart from another. Duncan Reid, Head of Corporate, explains one of the ways in which the firm has achieved this, demonstrating its commitment to client care through the provision of practical business solutions in line with their business requirements.

Duncan Reid, Head of corporate group, Watson Burton

Adding value

ADDING VALUE Building relationships a firm, we aim to make a genuine difference to each of our clients, talking through issues to provide sound, objective advice that adds real value. Our focus on the development of long-term productive client relationships ensures that we are positioned as business advisors as well as lawyers; a concept which we believe differentiates us as legal providers.

A commitment to client care is fundamental to the way in which we conduct our business, with the aim of making our clients’ interaction with us both seamless and cost effective. On this basis, we strive to gain an in-depth understanding of our clients, their businesses and the sectors in which they operate, so that we can adapt our extensive expertise to any situation they may face.

Watson Burton prides itself on being pro active in assessing the requirements of individual clients through a continuous review process, with a view to pre-empt any problems before they arise. For one client in particular, this ethos has proven extremely effective.

presented them with a number of concerns in relation to project planning, time management and uncertainty over the control of their budget for legal advice. For the firm, this created a great challenge, and to address this, we have implemented a new system to eliminate the client’s concerns and create a more efficient way of working.

development of an innovative case management workflow system. This specifically designed in line with the client’s requirements.

Bespoke solutions aim is to provide bespoke, practical business solutions to ensure that our clients’ experience of legal service benefits them and the overall functionality of their business. With this in mind, the firm designed a product in-house to resolve an issue that was identified by a key client, who was having difficulty keeping abreast of the growing stream of legal work being undertaken on their behalf.

Our

From the client’s perspective, this issue

To better serve the client, the firm has undergone an in-depth evaluation of the service provided to to this client, clie ent, which has resulted in the

To develop and launch the product, Watson Burton has called upon the expertise of its highly talented technical team who have worked tirelessly to develop the workflow system, designed to be user friendly, informative and adaptable, utilising the same process as previously used, but in a more efficient manner.

Watson Burton prides itself on being pro active in assessing the requirements of individual clients through a continuous review process

”

A new system new system was designed with input from the client at every stage of the process. Throughout the design element, Watson Burton’s designated client team worked alongside the client in agreeing core tasks which were required to complete each transaction, with specific milestones highlighted throughout each matter. This resulted in the tasks identified being integrated into the workflow system and being

The

applied to the retrospective matter. The milestones were then grouped into a case plan which is programmed ultimately to record of progress for each transaction.

Each matter was then published to an online extranet, which is automatically linked to progress plan of the relevant transaction. The client and any nominated third party, is then provided with access to the information to

ascertain the stage at which the firm’s team are at with each task. The implementation of the case management workflow system provides an excellent platform of communication; with an update on the progression of transactions provided to the client in less than a minute, enabling them to focus on other projects in the knowledge that their trusted lawyers are on the case.

Adding value

AN EXTENSION OF THE TEAM

Watson Burton’s

lawyers genuinely enjoy practising law and believe that our clients enjoy working with us, so we take great pleasure in acting as an extension of our client’s team. IT Manager, Jonathan Smith, and Legal Executive, Louise Williamson, are two key representatives of the client team who have implemented the workflow system; we spoke to them to see what their thoughts were on this project.

The T

main aim of the project was to streamline the work in which we u undertake on behalf of the client and im improve the flow of information regarding tthe progress of transactions.

It was incredibly satisfying to develop and launch this project on behalf of the client, and we are now looking at ways to branch out in offering this to other clients, bespoke to their circumstances.

M My team worked incredibly hard behind the sscenes in building the workflow system to e ensure that it was fully compatible with the e everyday working conditions of both the client a and the lawyers. It faced a rigorous testing p process before it was launched, with every aspect devised in great detail for ease of use.

Jonathan Smith, IT Manager, Watson Burton

an advisor to the client, I am extremely happy with the system and the benefits that that the client has received in daily usage of it. Products such as this are easily bought off the shelf, however, we were of the thinking that in doing this, the workflow system would not have aligned itself as easily to the client’s requirements, so the best course of action was to design and create our own. Thanks to the technical excellence of Jonathan and his team, we have delivered a bespoke workflow specifically designed with input from the client for individual work types, delivering a

product that is more suited to the client’s requirements. Projects such as this are an extremely important offering to our clients as it places them in a unique position of being able to control minor details of every transaction, from lawyer level down to budget – providing more transparency in relation to their transactions .. We look forward to undertaking further work on the project for the client and creating bespoke products for clients across the firm where the need arises.

Louise Williamson, Legal Executive, Watson Burton

Celebrating 200 years of quality service

200

Celebrating

years of quality service Watson Burton

recently marked 200 years as a leading commercial law firm with a celebratory event held to thank clients and friends for their continued support.

The 200th anniversary dinner, which took place at the Tyne & Wear Discovery Museum in Newcastle upon Tyne, saw the firmâ&#x20AC;&#x2122;s national portfolio of clients gather in the Story of the Tyne gallery for a champagne reception followed by a three course meal in the Great Hall with an array of entertainment.

Celebrating 200 years of quality service

Businesses representing a range of sectors were present at the event, such as construction and engineering, finance, nuclear energy, education, real estate and oil and gas. WS Atkins Plc, Bellway Group, Barnsley College, Hiscox Insurance Company Ltd, Contract Natural Gas and The Mansion Group were among those organisations that travelled to the region to celebrate the unique milestone with the firm. Entertainment was provided in the form of Victorian themed stilt walkers and human statues, a harpist and string quartet, culminating in dinner closing with a unique performance by aerial artists, Serico. North East chamber musicians, Northern Chords also performed for guests, with founder Jonathan Bloxham taking the lead on the Cello. Alasdair Greig of North Star Equity Investors, Helen Milburn of Watson Burton and David Arthur of Tait Walker

Patrick Harwood, CEO of Watson Burton

Gillian Hall, Senior partner of Watson Burton

A performance by Serico

Jonathan Sykes of Jones Laing Lasalle and Tracy Hall of Watson Burton

Duncan Reid of Watson Burton, Andrew Mill of Narec and Jack McGrory of Variable Message Signs

Celebrating 200 years of quality service

Stephen McCoy of Frank Haslam Milan Limited, Andrea Gardner of Watson Burton and John Wood of Tolent Construction

Roisin Laird of Watson Burton and Ian Wilson of The IP Group

Trevor Phillipson of Tolent Construction and Peter Stoker of Bellway Plc

Alison Rhodes of Nexus, Lee Betchley of Watson Burton, Sonja Driller of Watson Burton, Anne Randall of Atkins Plc and Jilly Ward of Atkins Plc

Gillian Hall, Senior Partner at Watson Burton said “As a firm that is proud of our North East roots, we are delighted to have celebrated our 200th anniversary with clients and friends in the region where Watson Burton was first formed.” “Although the firm has extended its reach on a national scale, The Discovery Museum is apt in representing the time when our doors first opened back in 1811 and we are delighted that so many of clients were present at the event to celebrate this great achievement with us.” “The aim of the celebration was to thank our clients for their ongoing support over the years and to emphasise that Watson Burton would not have enjoyed 200 years in business if it had not been for them. Feedback from clients since the event has proven that it was a great success and the firm looks forward to enjoying many more years of productive relationships with our clients.”

Celebrating 200 years of quality service

Gerry Moran, Elaine Dunan and Elina Lusted of Hiscox with Richard Palmer of Watson Burton

Gordon Bell of CCCS, David Jenkins of Watson Burton, Jackie Turner of Watson Burton, Gearalt Fahy of Watson Burton, Lesley Cheeseman of CCCS and Fiona Megaw of CCCS

Chris England of Contract Natural Gas, Tim Jones of Contract Natural Gas, James Nightingale of Watson Burton, Gavin Form of RF Consulting Ventures Ltd and Colin Coates of the Business Investors Group

Partners Tracy Hall, Richard Palmer and Christopher Graham of Watson Burton

Surgo secures strong future plans

SECURES STRONG FUTURE PLANS Skilled staff, commitment to best quality work whatever size the contract and diversity of projects lie behind Surgo’s proudly held position as the north east region’s longest established independent contractor according to Jeff Alexander, Surgo’s business development director.

First

established in 1907, Surgo is a flexible, profitable company which has won a number of contracts this year and is looking forward with cautious optimism to 2012. Jeff Alexander said: “Like most construction companies our

turnover has dipped in the last three or four years, but we have remained profitable which keeps us planning for the future. We are successfully winning a similar number of contracts year on year but they are likely to be smaller projects than in prerecession days.”

Surgo secures strong future plans

HIGHLIGHTS Surgo’s highlights of 2011 include a high profile comprehensive refurbishment of the Theatre Royal in Newcastle, the £5million construction of Jesmond Gardens School in Hartlepool, the innovative Beacon at West Road, Newcastle, South Tyneside College’s £2.3million refurbishment and a number of healthcare and residential schemes. Watson Burton advises Surgo on

specific issues which require specialist input from the law firm’s construction and engineering lawyers. Jeff Alexander said: “Watson Burton has a great ‘go to’ approach for matters which are slightly out of the ordinary. We have gone to its experienced team for a number of issues and have always been impressed with the quality and effectiveness of the firm’s input.”

Jeff Alexander said: “I think it’s fair to say that 2011 has been a challenging year for the building sector. However, we have been able to hold our own with a good mix of contracts keeping us busy.”

the last decade. We are much more strategic in our thinking, and although we’re staunchly committed to regional projects we keep our eyes open for suitable projects further afield.

He has been with Surgo since 1989 and says: “We are a totally different company from then to now. The complexity of projects and size of contracts we take on have both grown significantly in

We want to keep winning work, delivering great results and picking up repeat business by providing our clients with the quality they expect by the time they ADAPTING TO THE MARKETPLACE want it.

The company believes it is wellpositioned to win new work after deciding not make any major investments and by maintaining a healthy balance sheet. The value of shareholders’ funds increased from £3m to £3.2m last year and Surgo has strong bank reserves which boost its confident position. The company now employs around 110 staff. Surgo’s managing director James Walker agreed. He said:

“We’ve had some tough decisions to make, but they’ve been the right ones. While the size of projects has decreased, we are still picking up work and there are still tender opportunities to be had.

“Equally we have a good relationship with many of our past clients, who recognise the pride we take in every project, no matter what its value.”

Surgo secures strong future plans

HIGH PROFILE CONTRACT

Newcastle's Theatre Royal following its £4.9 million refurbishment

Surgo completed the £4.9 million restoration project of the Theatre Royal Newcastle which recaptured the grandeur of the historic theatre and caught the imagination of the city’s media, arts and business communities. James Walker is proud of the results. He said: “It was an unusual job, as it required us to restore the original interior alongside fitting new technologies including solar panels and dimmable lights. “We’ve been lucky enough to be involved as part of a team with real drive for the success of the project which will ultimately benefit the whole of the Newcastle area.” Around 500 craftsmen from

across Europe worked on the project, which was completed in a short 22 weeks – well before the theatre's 175th birthday in 2012. The intricate work completed by Surgo and the team of skilled contractors involved in the restoration was remarkably detailed. Actor and patron Richard Briers praised Surgo’s work, writing: “The quality of the work stands out in every area from the seating and carpeting to the wood and plaster work enhanced by the gold leaf. Just as the staff and theatregoers are proud to be associated with their Theatre Royal, SURGO can be justifiably proud of the work they have done.”

The Theatre Royal refurbishment team

CUSTOMER FIRST Roddy Gordon, head of construction at Watson Burton said: “The Theatre Royal is a superb illustration of the pride, care and expertise Surgo gives to each project it takes on. The company is a great example of a regional contractor who puts

customer satisfaction first, has a pragmatic approach to contracts, and is fleet of foot. All three qualities have helped its robust performance in recent years.”

keep winning work, delivering great results and picking up repeat business by providing our clients with the quality they expect by the time they want it,” he said.

James Walker is looking forward to 2012. He said: “We want to

“It’s hard work but good fun too. We’ve got lots of passionate

people working for Surgo who are all equally important to the process. From the bricklayer to the architect, everyone on site is determined to get the job done well, on time and on budget.”

Caught in the Construction Act

Caught in the Construction Act Sarah Wilson, Partner, Construction and Engineering Group

After years of discussion and speculation, October 2011 finally saw amendments to Part 2 of the Housing Grants, Construction and Regeneration Act 1996 come into force across England and Wales.

The

changes to the Act are fundamental to businesses operating within the sector in terms of the implementation of crucial new laws, most notably the extension of the Act to cover oral contracts. Whilst other changes, particularly those relating to payment notices, are more procedural in nature, the consequences of failing to comply with them could be serious for employers and contractors alike.

Caught in the Construction Act

Construction Act – the loopholes

Abolition of ‘Tolent’ clauses

Commonly named “Tolent” clauses, following the decision in the case of Bridgeway v Tolent, typically provided that the referring The 1996 Act and accompanying Scheme party should be responsible for paying all have of course had a tremendous impact upon the industry, not least in their provision the costs of the adjudication. for statutory adjudication and the timely This was widely recognised as a defect in the service of notices of withholding payment. original legislation as it meant paying parties The application by default of these provisions with greater pre-contractual bargaining power to qualifying contracts whose express terms could impose provisions which effectively fail to satisfy the requirements of the Act disincentivised the payee from adjudicating. has meant the legislation has tended to operate effectively within its intended limits. The new legislation will re-adjust the balance Those parameters are reasonably well defined of power by stating that any agreement relating to who pays the cost of the adjudication, now that the Judges of the Technology and must, to be effective, be in writing and if made Construction Court have developed an prior to the adjudication, the adjudicator extensive and coherent body of case law in will have the power to decide who pays the this area. fees; or if made after the notice to refer the Nevertheless those same cases have served dispute to adjudication has been given can well in illustrating that the Act contained a deal with who pays the parties costs. number of loopholes, which has resulted in the legislation not being quite as effective at Payment notices and determination modifying behaviour within the industry as of payments due originally hoped. The complaint commonly made in regard The 2009 Act essentially represents an attempt to payment notices within the 1996 Act was to broaden the ambit of the Act and to close that it lacked teeth, at least when compared to the provisions relating to the withholding a number of the loopholes which existed notices section of the Act. following the introduction of the original legislation. The recent changes which have The new Act has seen the introduction of been implemented seek to formalise changes which states that the amount due contractual obligations, providing participating and time for payment cannot be tied to parties with a clearer idea of boundaries. performance obligations under another contract. This clause is intended to eradicate the much criticised ‘pay when certified’ clause, widely considered to be a subIn summary, businesses operating within the construction sector will need to be aware species of the ‘pay when paid’ clauses outlawed in the 1996 Act. of the following key changes to the Act:

Withholding notices and requirement to pay the Notified Sum Much of this section is a revamp of the existing legislation, however, its provisions have been given added value by virtue of their relationship with the new, more effective, provisions to be found within the amended payment notices section. Under the new legislation, if the paying party fails to give effective notice of his intention to pay less than the “Notified Sum” i.e. the amount stated in a Notice of Payment, then its obligation is to pay that Notified Sum. The effectiveness of this provision is now guaranteed by an amendment which permits the payee to issue the Notice of Payment if the payer defaults in doing so.

Act now! The revisions which have been made to the Construction Act 1996 will undoubtedly have an impact on the contractual process for businesses across the sector, with payment, suspension and adjudication activities facing tighter restrictions. With this in mind, it has become increasingly important for all participating contracting parties to have a thorough knowledge of the recent amendments to the Act before instigating the contractual process.

Key changes

Legislation no longer applicable solely to agreements in writing Perhaps the single biggest limitation within the original legislation was that imposed by Section 107 of the 1996 Act. It stated that only agreements in writing, or evidenced in writing, qualified for the purposes of Part 2 of the legislation. Verbal agreements were beyond the pale. The rationale behind this was that it was not thought possible for adjudicators, within the strictures of a fasttrack, 28 day adjudication timetable, to determine disputes arising under construction contracts effectively if they were unaware of the exact terms. Section 107 has been repealed in its entirety by the 2009 Act and construction contracts can now qualify whether they are wholly oral or partly oral and partly in writing. Moving forward, this means that greater care may need to be taken as to what is said during the tendering and negotiation process, and it is likely that this far reaching change will also see parties bringing adjudications simply to determine what the terms of their contract actually are.

The other complaint frequently made about payment notices was that there was no effective sanction for a failure by the paying party to serve the notice of payment required by that clause. The 2009 Act therefore permits the payee to issue the payment notice if the paying party fails to do so within the prescribed time.

Find out how the Construction and Engineering Group can help you by getting in touch with Sarah Wilson on 0845 901 0930 or email sarah.wilson@watsonburton.com

Moving in the right direction

Moving in the right direction Tracy Hall, Head of Real Estate Group

A recent analysis of the UK economy undertaken by the Office of National Statistics (ONS) highlights a deepening divide between the North and South of the country in terms of its rate of recovery, with the Northern region displaying slower progress than the South of the country.

With

this in mind, when I announced to friends, family and clients that is was my intention to head back to the north east to take up the role of Group Head of Real Estate within Watson Burton’s Newcastle, Leeds and London offices, I got very mixed reactions ranging from “that’s nice dear” to “are you mad in this market?” dependant on whether the audience at the time consisted of my mother or a property professional. Given that for over ten years I have been practicing in Leeds and covering a geographical area spanning all corners of Yorkshire, Greater Manchester and Lancashire, all of which have more recently fallen on pretty bleak times, I took the view that I was up for the challenge. My former offices in Leeds are surrounded by stalled and what were to be very significant development sites, most of which are currently being operated as temporary car parks. Why should Newcastle present any more challenges than that, I thought.

Moving in the right direction

Its all about timing So what does the current market in Newcastle hold in store for me and my team? My first reactions are that this is a region which will genuinely miss the very significant and strategic influence of one of the most successful RDAs in the form of ONE North East, that public funding and intervention will still be required to regenerate some of our more entrenched and deprived areas and that the private sector will struggle to take the lead on a lot of what is required to be done. Privately driven development is sporadic, generated by its own specific circumstances and to a large extent geographic. The retail and office lettings market is at best a mixed bag and the investment market is lifeless. But the same could be said for most regional centres around the UK currently we all read that the only market which remains immune and continues to thrive is London where much of the investment is coming from foreign sources looking for credible opportunities in these difficult times.

City Council which clearly regards this as critical to the regeneration of the area behind the Central Station (and upon which we are instructed), the former Co op Store scheme of Merchant Place Developments, East Pilgrim Street (which has been a development site since I left the city all those years ago and is seriously crying out for attention) and the Fusion scheme in Clavering Place proposed by Buccleuch Property. Each of these schemes is of merit and in a different market would be flying. We have to believe that one or more of them will take legs as market tensions ease and the banks genuinely do get themselves open for business. Local authority support in whatever form it comes - whether it be through the planning process, direct or indirect public funding, tax increment financing or other initiatives will be critical to kick-starting the process.

Clearly beyond city limits we have the newly announced Enterprise Zones but the generally held view amongst property pundits is that with the majority of inducements associated with these areas being focussed on occupiers rather than developers, it is difficult to see at this stage Happily at Watson Burton amongst a how effective they will be. We may see significant and good quality client base I find longer term benefits to the overall long established residential house builders economies of the two designated areas which are still extremely active across the whole of the north of England and beyond - namely the Teesside Zone where the focus some very strategic private developer client is on petrochemicals and low carbon and activity fuelled by public sector infra structure the A19 Corridor where again the emphasis funding thereby allowing the developments is on low carbon - but the current initiative to attract enough interest from good quality is unlikely to encourage a broader base of development or produce significant early end users to enable phases to be rolled out seamlessly - and long term utility distribution wins. Nevertheless the hope is that long clients who continue to invest in infrastructure term sustainable results will be achieved if interest can be generated soon enough to and promote broader development. meet the tight time limits imposed on these areas and hopefully some of the excesses Revitalisation Taking a walk around Newcastle I see four regeneration proposals which could significantly revitalise the city - Stephenson Quarter with its support from Newcastle

associated with the last round of Enterprise Zones of the 80s and 90s will be avoided.

Relishing a challenge In summary I believe the development market is slow but nevertheless alive and kicking and, with the legacy of the significant development we enjoyed during the mid to late 90s and the early part of this century, there is something really positive to build on – going forward we are not looking at a completely cold start. Science Central, a proposed campus for the science industry on the former Scottish & Newcastle site owned and being planned by Newcastle City Council and Newcastle University, is another example of what can and will happen over the next few years – even without the ONE funded 1NG which, until it was axed earlier this year, was taking the lead on the project. And what an achievement that will be for a site which was badly contaminated and the very recent previous use of which was completely inappropriate to its location within the city in these modern times. The city centre has been transformed substantially already and an optimist like me would say that a significant element of the other projects – “oven ready” to varying degrees - will be brought forward over the next 2 to 3 years with collaborative support across the private, public and banking sectors. My team is relishing the prospect of tackling the legal work associated with the challenges of such redevelopment and regeneration projects. These may be lean times but I take the view that going forward my timing has been rather strategic – we are in for an interesting ride and we are going to enjoy it!

Find out how the real estate group can help you by getting in touch with Tracy Hall. Call 0845 901 2067 or email tracy.hall@watsonburton.com

Full throttle for Ubisoft Reflections

FULL THROTTLE FOR UBISOFT REFLECTIONS

Ubisoft Reflections video game development studio was founded in 1984 in Newcastle, where the company still has its base. Its Driver series of video games have sold over 15 million units worldwide, and they are noted for their character and style. 32

Full throttle for Ubisoft Reflections

51 weeks with its BAFTA winning Driver game. There have been five main instalments released by Ubisoft Reflections, the most recent of which is Driver: San Francisco.

TALENTED STAFF

Ubisoft Reflection’s innovative technology has created a new gaming genre called Open World, which is used throughout the Driver series. The company employs a highly qualified team of development staff, most of whom are qualified to degree level in subjects such as computer science, mathematics, physics, sound, animation, art and games design; some of the development team are qualified to Ph.D level.

2006 the company, originally called Reflections Interactive, was bought by French publisher Ubisoft, which has the second largest in-house development staff in the world with 19 studios in 14 countries. It divides its business into development, publishing, and distribution segments.

Giselle Stewart, General Manager of Ubisoft Reflections, said: “We succeed because of the talent and expertise of our staff, and we are fortunate to be based in a region which has become a hotbed of software technology ability, attracting the best in the games industry to the north east.” The company is keen to nurture young local talent, and supports university students who hope to have a career in computer gaming by offering internships. Ubisoft Reflections also sponsors Teesside University’s ExpoTees Awards to celebrate the achievement and skills of students studying at its School of Computing. Giselle Stewart said: “The University of Teesside’s ExpoTees awards are good news for us; we are able to spot new creative talent to further our success as a developer of successful driving games. We are proud of our close links with the region’s universities and enjoy watching creativity and skills develop as students progress. “We love home-grown talent – first of all, it means staff are not just coming to us for two years and then disappearing again, our staff have huge loyalty to the region, and I would say 40% of staff are from the north east – but when I say the north east, that’s because they come to university here and then stay.”

MAKING GAMING HISTORY Ubisoft Reflections became part of gaming history in 1999 by staying in the Top Ten for

Dr Richard Wilson, chief executive of TIGA said: “The release of Driver San Francisco shows that the UK has a highly talented and qualified games development workforce that has the ability to develop Triple A video games. Everyone in the UK video games industry will want to congratulate Ubisoft Reflections on completing the game and wish them commercial success.”

We love home-grown talent – first of all, it means staff are not just coming to us for two years and then disappearing again, our staff have huge loyalty to the region, and I would say 40% of staff are from the north east.

VISION FOR THE FUTURE Ubisoft Reflections constantly challenges itself to create unique, exciting experiences for computer gamers. The company’s vision is to: “Power the studio with innovative, talented and dynamic teams; challenging them to continually reinvent and improve, to be sure Reflections remains a world class studio.” Giselle Stewart is a member of the Advisory Board for Women in Game Development in the UK, which aims to encourage more women to join the industry. She said: “Although games development was traditionally a male dominated industry, it is changing fast, with many more women being an important part of all development teams. “Many games are now targeted specifically at women, with the developers looking to include more women on the teams to help introduce a female perspective to the development process. I’ve found an exciting and rewarding career in a games development company and it’s good to see more women rightfully taking their places in development teams.” Watson Burton has been advising Ubisoft Reflections for many years. Giselle Stewart appreciates the specialist expertise at the law firm. She said: “Watson Burton takes the time to understand our priorities and offer relevant, useful advice which can make a real difference to our business.” Ubisoft Reflections are looking forward to the future and making more of the best selling games in the world here in the North East.

Giselle Stewart, General Manager of Ubisoft Reflections

Employment Law: A clearer picture

Employment Law r: e u t c i p r e r A clea

As a business, keeping up to date with changes in legislation and obligations as an employer can sometimes be quite difficult. 2011 has seen a number of alterations made to employment regulations in an effort to build a clearer picture of employment law. Employment specialist Michael Ord looks at three recent areas of change which may require your attention and where early legal advice may be needed.

Michael Ord, Partner, Employment Group

Agency Workers Many employers use agency workers as a means of meeting flexible demands for labour and to fill temporary skills gaps in their own workforce, including for extended periods. Under the Agency Workers Regulations which came into force on 1 October 2011, these Agency Workers (“AW”s) have a number of new rights designed to bring them in line with direct employees

in a number of areas.

than a direct employee

The rights fall in to two categories; those which apply to all agency workers (“Day 1 rights”) and those which only apply if an AW has been working “in the same role with the same hirer” for 12 weeks.

a) in relation to collective facilities and amenities provided by the hirer and

The “day 1” rights must be provided to all AWs at your place of work. They are that the AW has the right to be treated “no less favourably”

b) to enable the AW to find permanent employment with the hirer. This means that you must allow AWs access to canteens or similar facilities (including with any

appropriate discounts), childcare facilities and transport facilities. Equally notification of available roles within the business must be as accessible to AWs as they are to direct employees, so the advertisement of internal vacancies through (e.g.) an intranet facility might not comply with the requirement if that was the only method of “advertisement” and if AWs did not have any or had less

Employment Law: A clearer picture

than full and easy access to the intranet.

night work; rest periods and annual leave.

The rights which accrue after 12 weeks are, in effect, to ensure the AW receives the benefit of the same basic terms and conditions as a direct employee. Note that they only apply after 12 weeks continuous work in the same role (but there are complex antiavoidance provisions). The terms which must be equal relate to pay; the length of working time;

Importantly “pay” does not include sick pay; retirement benefits or compensation for loss of office; maternity, paternity and adoption pay; redundancy schemes or arrangements such as share options. Bonuses are covered unless they are by way of loyalty or long-service payments. The impact of the regulations and

the likely uplift in charges raised by Agencies to meet the requirement for equal pay and treatment being passed on to the AW may make the regular use of agency staff less attractive than it has previously been. Employers may consider the increased use of directly employed casual staff or staff “banks” as an alternative. If the business has a grading which includes length of service (e.g. if employees begin on a form

of 2starter” grade) then care needs to be taken to make sure the AW is being matched with the correct grade of employee.

taking the initial period of leave is the primary bread-winner in the relationship and would protect their rights to return to the same job after (ordinary) maternity leave.

person taking additional paternity leave in relation to the child and that she has returned to work.

So long as agency workers are used care needs to be taken to ensure that the new regulations are complied with. The terms of your agreement with the agency need to make it clear who will be responsible for ensuring compliance.

Additional Paternity Leave The Government’s “family friendly” programme now includes the right for fathers to take additional paternity leave of up to 6 months when their wife, partner or civil partner has returned to work (in effect allowing the father to “use up” the balance of the mother’s Maternity Leave when she has returned to work before the end of her Additional Maternity Leave period. The rules also apply to adoptive parents.

Although the change was made some time ago (it relates to children due on or after 3 April 2011) it is only now that the first applications for this leave are being made as the maximum period which can be taken is 26 weeks and the leave can only be taken once the mother has returned to work. The likely take-up of these provisions is unclear. It may well be used in circumstances where the person

Difficulties may emerge if it is suspected that someone applies for this leave in circumstances where they may not be entitled to take it. As well as qualification requirements there are provisions requiring the mother or adopter to confirm that the person is the only

There may be implications for workforce planning. There is no obligation on a person intending to take the leave to give more than 8 weeks notice of intending to take this leave which can last for up to 26 weeks (and could be followed by a period of parental leave if the employee makes an application).

Changes in Employment Rights in 2012 The Government announced in 2011 that with effect from April 2012 the qualifying period for employees claiming to have been unfairly dismissed will rise from its’ current level (52 weeks of continuous employment) to “two years”. What will be the real impact for business? Whilst the government indicates that the risk of unfair dismissal (and only having 1 year to dismiss people without that risk) is a deterrent to recruitment, many commentators are far from convinced. No evidence exists to support the correlation between the length of qualifying service for unfair dismissal and recruitment /

unemployment rates. One unintended but much predicted consequence may be that employees whose employment is terminated will seek to bring claims on other grounds (i.e. discrimination claims) as no qualifying period exists for such claims. Whilst unmeritorious claims should be weeded out there will still be the burden of taking advice and dealing with the claim once made. Equally the impact may be to stagnate the job market to some extent with people being reluctant to move between jobs with the lengthy loss of protection from unfair dismissal. At the same time it seems certain that fees will be introduced for

tribunal claims. Those claimants liable to pay a fee (which will probably exclude anyone on benefits such as jobseekers’ allowance, so the scope of this change will be questionable) will have to pay (it is expected) £500 to lodge a claim and £1000 when it is listed for a hearing. They will be refunded if they win but the fees will go to the treasury if they do not. How this system will deal with agreed settlements is debateable, but another likely consequence will be that the fees regime will be used as a recruiting tool for trades unions who will stand by their members and meet their fees if they are unfairly treated by employers.

Find out how the employment team can help you by getting in touch with Michael Ord. Call 0845 901 2036 or send an email to michael.ord@watsonburton.com

A year to remember

A year to remember As 2011 draws to a close, Chief Executive Officer, Patrick Harwood, reflects on what has been a memorable year for Watson Burton

firm’s 200th anniversary year has registered many achievements, both within Watson Burton and on behalf of our clients. It has been a very exciting time to be involved with our firm. We have continued to build upon and develop the forward-thinking business model that makes Watson Burton different to many law firms, whilst achieving impressive growth in our portfolio of regional, national and international clients.

The

Our main ambition for this year was to invest in and build strong client relationships through the provision of a highly integrated service, maintaining always the firm’s progress towards anchoring our position as a commercial practice of national significance. Much has been achieved during 2011 in these important areas.

Success for our clients We are immensely proud of the talented individuals who work in our business, and recognise the skill and effort that they apply to serving the needs of our clients. Watson Burton’s mission to develop a productive and sustainable partnership with clients, that benefits both parties and builds long term relationships, has been at the forefront of our activities this year. During 2011 the firm’s highly capable corporate group, led by Duncan Reid, has advised on deals worth in excess of £225 million. Completing over sixty major transactions for clients including W.S Atkins Plc, National Renewable Energy Centre (Narec), Lansinoh Laboratories, Tanfield Group Plc, NorthStar Ventures, IP Group Plc and HG1 Limited, the team has established its credentials as a highly focused and effective presence in the market during 2011. Particular highlights for the corporate team include; advising W.S Atkins Plc on the acquisition of global consulting and engineering company, Pöyry PLC for EUR 17.25 million (circa £15 million) and helping Narec successfully secure £25 million worth of investment from the Energy Technologies Institute (ETI) that will be applied to the development of a world-leading offshore test facility, to be sited in Blyth, Northumberland.

A year to remember

“

Partner and Head of the professional indemnity grouping, Richard Palmer, has been successful in leading our specialist team to extend its national reach through a series of impressive case wins and the appointment of two more solicitors, Malcolm Rogers and Caroline Rye. During 2011, this talented team has successfully defended a high profile claim in the French Court of Appeal and also negotiated with a Claimant on a £750,000 claim against a local professional at mediation, resulting in the claim being avoided entirely. Currently, the team is working on a number of 8 figure claims against a range of professional disciplines, on behalf of four of the country’s leading insurers.

The commercial litigation team also staged a coup earlier this year in acting for a number of clients in the successful appeal against penalties imposed by the Office of Fair Trading (OFT) following its six year investigation into “cover pricing” within the construction industry. In one of the largest investigations ever undertaken by the OFT, Watson Burton acted for five of the twentyfive national constructing companies appealing the fines, more than any other UK law firm. The case resulted in a dramatic reduction in fines for the firm’s clients, with one company saving over £1 million. Watson Burton’s highly regarded construction and engineering group has also enjoyed an impressive year, despite the economic pressures faced by this industry. The team’s hard work has provided a number of national and international clients with important results and their participation in large scale and complex projects across the country has maintained their national reputation for excellence. In the leading industry publication, The Legal 500, the team is placed in the top tier of firms in the North, for the ninth consecutive year. Our nationally recognised employment group, led by Christopher Graham, has strengthened its service offering during 2011 with a number of significant appointments. The firm has invested heavily in this team, ensuring that our capability and capacity is properly geared to work as a seamless extension to our clients’ teams. We are delighted to have welcomed solicitors Roisin Laird, Kerry Waters, Sonja Driller and Lee Betchley, into the employment team during this year. Across the real estate sector, the firm has performed strongly during 2011, undertaking a number of technically demanding assignments for some of the firm’s most significant national clients. Led by partner Tracy Hall, the forward-thinking real estate team has represented some of the country’s most active developers and continues to build on its strong track record of handling complex negotiations for major commercial and residential schemes, helping to

...we aim to build upon the foundations of our repositioned business model and further invest into positioning ourselves as a national firm which offers a high quality service to national organisations. transform the landscape and doing its bit to boost economic confidence.

These highlights have been just a few of the firm’s successes in our 200th year of business, with many more expected to continue into the New Year and beyond.

Clear direction The past three years have seen the firm reevaluate its business model in order to ensure that Watson Burton positions itself securely as a successful legal business, rather than just a collective of capable individuals. This has required a rigorous audit of the business, from the services we provide to our daily interaction with clients, with a view to fully developing a scalable commercial entity that places its clients needs at the core of service delivery. This re-modeling of Watson Burton’s business strategy has inevitably led to the departure of some valued colleagues and friends in recent times; we wish them all well in their future careers. As the business now starts to develop and grow again, we have invested in a number of new talents; we believe these people will be key assets in our highly motivated team moving forwards. Our most senior appointment during 2011 saw the firm replace Simon Scougall, following his move in-house to Bellway Plc. Tracy Hall joined Watson Burton this summer as national Head of Real Estate, bringing with her an extensive technical knowledge and experience of working with both private and public sector organisations. We have recruited a number of highly experienced lawyers across all areas of the firm during 2011and will be making several more senior appointments during 2012. We take great pride in the knowledge that every person who works within our firm plays a proactive part in achieving our collective vision and an integral role in implementing our strategy of raising the profile of Watson Burton as a successful national brand with a clear sighted business strategy.

200 years young

”

Our most memorable event in the calendar this year was the firm’s 200th anniversary celebration dinner, which took place at the Discovery Museum in Newcastle upon Tyne. As you can see from pages 21 to 24, the evening was a great success and enjoyed by those who attended.

This event was, in my eyes, one of the firm’s most enjoyable to date, as it clearly demonstrated a mutual respect and friendship between our team and our clients. To us, the evening was about saying thank you to our clients for their loyalty and support over the years and we greatly appreciated everyone taking the time to celebrate this milestone with us. Reflecting on that evening, it gives me a sense of great pride to acknowledge how many nationally recognised businesses from all corners the country were present at that event. It reminds me of the extent to which the firm’s expertise spans a huge range of sectors with oil, gas, chemicals, banking, nuclear, corporate finance, construction and property businesses all represented in some form.

In 2012... As Watson Burton moves into our third century in business, we will continue to build upon the foundations of our rejuvenated firm and continue to invest in positioning the business as a national firm which offers a high quality service to organisations who are motivated to build lasting relationships with their commercial advisors. 200 years of successful trading has given our firm a great sense of self worth and optimism for the future. We are now looking forward to exploring where the next 200 years may take us.

Find out how Watson Burton can help your business by getting in touch with Patrick Harwood. Call 0845 901 2091 or send an email to patrick.harwood@watsonburton.com

A Quality Service

A quality

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Extremely professional, extremely helpful, always available

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Client Service A Quality Excellence Service

At Watson Burton, our approach to client service is at the core of our business activities. To us, it is essential that we avoid becoming complacent in developing strong client relationships and actively seek client feedback as part of our continuous business improvement strategy. annual survey of law firms within the UK, undertaken by leading industry publications, The Legal 500 and Chambers & Partners, recently highlighted some of our clients’ thoughts on our service offerings. Clients praised Watson Burton for “caring about clients and the work they do,” and complimented our lawyers on their commercial awareness, stating “They are open to debate prepared to listen to our viewpoint and understand what we are striving to deliver”. They also commented on the firm’s expertise, describing Watson Burton as “an inexhaustible source of knowledge”.

Further to the national survey, the firm recently worked in partnership with think M, a strategic marketing and research agency, in conducting an in-depth study with a sample of clients to gain a more detailed understanding of their needs, objectives, and drivers. The primary objective of the research was to identify target areas for enhancing our client service, using the findings as a catalyst for developing a more structured, measurable approach to client care. The project entailed the selected sample of clients completing an anonymous survey, with the aim of providing the firm with open and frank feedback, thus ensuring that the findings were a true reflection of their

thoughts on the service offered by Watson Burton. think M reported the findings of the survey, stating the overall impression of Watson Burton is that ‘all respondents were extremely happy with the service’. They then went on to say that ‘It was notable that many respondents were so happy with the service they received, they struggled to think of any suggestions for improvements’. Examples of comments made by clients included, “They’re professional; their advice is practical; all people that we come into contact with are very personable, very helpful”. “Extremely professional, extremely helpful, always available. In general I am very happy with the level of service I receive from them”. As part of the survey, respondents were asked to rate our service on a ten point degree of happiness scale (ten being the highest score). Again the findings were very positive with an average rating of 8.5 with half of respondents rating the firm with an overall score of 9. The research also benchmarked our customer service performance with other law firms to identify best practice approaches and possible areas of improvement. When comparing Watson Burton with other law

firms the feedback received was very positive, highlighting that the firm’s partner led approach to service delivery, which focuses on the development of relationships between the designated client care partner and the client, results in long-term client relationships. Comments included, “They are better than anyone that I’ve dealt with, but again, I must go back to the individual” “We’ve built up a very close working relationship with Watson Burton … We see that as a future foundation stone for our business … we are fairly ambitious, we have big plans. We’ve got a great extended family of people which Watson Burton’s team are, we are very close to everybody and we think they are brilliant”. In addition to the positive findings of the research undertaken, it was crucial to the study to gain a deeper understanding of how the

firm can further improve its service delivery, to ensure that we continue to meet, and where possible, exceed, our clients’ expectations. Examples of recommendations for improvements included ensuring clients have full knowledge and understanding of the range of services provided by Watson Burton and making sure that a policy in place for succession planning to ensure continuity of relationships. At Watson Burton, we are in the process of reviewing our policies and procedures to ensure we act upon these improvement opportunities and any future recommendations as they arise. Using think M’s findings, we are also developing a new structured approach to receiving client feedback, which will be a key component of our Customer Service Policy, moving forward.

Watson Burton values client feedback and is extremely grateful to all of those who participated in the market research project with think M. As a firm, we strive to continuously improve the quality of our service, so if there are any comments that you would like to make on the service delivered by the firm, please contact your client Care Partner or call Marketing Manager, Claire on 0845 901 2087.

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