Contract Journal articles from February 2004

Contract Journal archives from February 2004

Variation instructions.
February 4, 2004... The South Holland Centre in Spalding, Lincolnshire, is a theatre and arts centre that puts on more than 100 shows a year, ranging from dance and jazz to comedy and children's shows. The centre has also been the back drop for a rather long...

Quote of the week.
February 4, 2004... I can't say we will get it right, but I can reassure the industry that the facilities will take account of the very latest thinking and future trends.

Ashtead Group remains positive about the future.
February 4, 2004... The Ashtead Group has reported a turnover for the six months to 31 October 2003 of [pounds sterling]269.4m - down from [pounds sterling]292.2m for the same period a year ago. According to George Burnett, group chief executive, cost savings of...

In brief.
February 4, 2004... JCB buys facility for engine manufacturing JCB has purchased a 15,000m2 facility at Dove Valley Park in Church Broughton, Derbyshire, to house the manufacturing of its proposed engines. Up to 100 people will be employed in the new factory,...

A moveable feast.
February 4, 2004... Mobile on-site facilities for the workforce have finally made it into the 21st century courtesy of JFM Hire's vehicle conversions. Contract Journal takes a closer look at the options On-site welfare for the roving workforce has, for many...

In the comfort zone.
February 4, 2004... Looking for the ultimate in driver comfort? Then you could do worse than opt for Scania's Classic 2 tractor package that combines comfort and safety with performance and power. Geoff Ashcroft spent a day behind the wheel. Classic 2 is...

Genie launches TZ-50 trailer-mounted boom.
February 4, 2004... Genie has launched a new trailer-mounted articulating boom, the TZ-50. Providing a working height of 16.9m and a working outreach of 8.9m, the company claimed the unit offers an all-round solution for both large and small contractors. The...

back bites.
February 4, 2004... Getting the hump It is not surprising that the great British public has a hate/hate relationship with traffic calming measures. Recent national news coverage suggests that speed humps are definitely on the way out. (Were they ever in?) The...

Beasts of burden.
February 4, 2004... An anomaly in the licensing system once allowed new car drivers to drive vehicles up to 7.5t. This was then reduced in 1997 to 3.5t - but despite this, the 7.5 tonners remain as popular as ever. John Kendall finds out why. Construction...

HSS is ready to 'set the pace' in tool hire.
February 4, 2004... Acquisitions are a priority for independent tool-hire company. HSS is promising to "set the pace" in the tool hire market now it is an independent company (CJ 9 January). Deputy chairman Lister Fielding told CJ that acquisitions are an...

A PFI too far?
February 4, 2004... With a value of [pounds sterling]800m, the Paddington Health Campus is anticipated to be the biggest PFI healthcare project in the UK. Is it too big? Carol Millett considers. The Paddington Health Campus is no ordinary PFI hospital...

Appeal court to rule on holiday pay decision.
February 4, 2004... The Court of Appeal in London is due to issue a new ruling later this month on the legality of holiday pay being included as part of an inclusive or rolled-up hourly rate. This follows a day-long hearing last week of an appeal against the...

Three vie for MoD Falklands deal.
February 4, 2004... AWG is hoping to knock Interserve and Turner FM off their perches in a three-way contest for a [pounds sterling]10m Ministry of Defence (MoD) deal. The task is to provide infrastructure support for British forces in the Falkland Islands and...

Germany delays CE marking.
February 4, 2004... Products association wants investigation into EC ballot on delay to CE-marked masonry. The Construction Products Association has asked the government to investigate the result of a ballot held by the European Commission over delaying the...

[pounds sterling]41m York Barbican job up for grabs.
February 4, 2004... At least two contractors will share the spoils of a [pounds sterling]41m scheme to redevelop the Barbican site in York. It is understood that Barbican Venture, the special-purpose company of local entrepreneurs promoting the scheme, is eyeing...

Mowlem wins [pounds sterling]17.3m Sheffield museum job.
February 4, 2004... Mowlem is in the picture for a [pounds sterling]17.3m deal from the Sheffield Galleries and Museums Trust. The firm's northern office has seen off four rivals to win the contest to redevelop Sheffield's Weston Park Museum. As the key part of a...

[pounds sterling]75m pre-tax profit at Crest Nicholson.
February 4, 2004... Housebuilder warns of lower sales prices as it moves into lower and middle-priced sectors and spreads out from the South East. Crest Nicholson's operating margin of 15.9% puts the residential and mixed-use development company in the...

Quarry body critical of CPRE's scaremongering.
February 4, 2004... The Quarry Products Assoc-iation (QPA) has hit back at the Campaign to Protect Rural England's (CPRE) accusations that the industry is about to excavate an area the size of Birmingham. "Yet again the CPRE has resorted to using the same...

HA's 'internal issues' will delay road deals.
February 4, 2004... Contractors anxious over HA delaying [pounds sterling]120m worth of work. Contractors are becoming increasingly twitchy as the Highways Agency (HA) sits on more than [pounds sterling]120m worth of work while it sorts out "internal issues"...

David Webster restructures.
February 4, 2004... David Webster Group, the independent lighting specialist with an annual turnover of [pounds sterling]56m, has restructured its businesses. DW Lighting, the group's largest division, has a turnover of [pounds sterling]39m. Established 40 years...

Regional lure brings Neall back to Jackson.
February 4, 2004... Richard Neall is back in the hot seat at Jackson Civil Engineering. He has again taken over the reins as managing director, a post he held 15 months ago prior to leaving for Norwest Holst. "I came to the conclusion that I enjoy working as a...

DTI considers 450 job losses.
February 4, 2004... The Department of Trade & Industry (DTI) has revealed that up to 650 staff could be relocated out of London and into the regions, and 450 staff made redundant, as part of a review that is taking place. A DTI spokeswoman told CJ: "As part of a...

Newcastle scales down highways job.
February 4, 2004... Newcastle City Council has cut the highways partnering deal it first advertised 12 months ago by 90%. The council has now also repackaged the scheme, which originally spanned five to seven years and was potentially worth up to [pounds...

Dew instigates new drugs test.
February 4, 2004... Firm finds oral random tests weed out drug-taking subcontractors, while directly employed staff provide negative results. Dew Pitchmastic has invested in a new drugs test to enforce its health and safety policies on site. Dew is using...

Carillion's [pounds sterling]100m road project win.
February 4, 2004... Carillion has beaten off five rivals, including an in-house contracting team, to take a highways maintenance deal worth nearly [pounds sterling]100m in the Midlands. The contract, with Warwickshire County Council, is worth [pounds sterling]14m...

Mouchel wins three contracts worth [pounds sterling]74m.
February 4, 2004... Consultant Mouchel Parkman has bagged three deals, worth [pounds sterling]74m in total. Metro, the consultant's specialist rail subsidiary, has taken an eight-year, [pounds sterling]52m contract to upgrade signalling on the Jubilee and Northern...

Bath Spa painter says 'told you so'.
February 4, 2004... Painting subcontractor also says it is owed money, but Mowlem claims it has been paid. Painting subcontractor EJ Manning has dived into the Bath Spa dispute with the damning claim that it told all parties the paint to be used in the pools...

Carillion goes to court alone.
February 4, 2004... A [pounds sterling]30m magistrates' courts scheme in Bedfordshire is still in the melting pot - three years after three groups first pitched for the deal. There has been some progress; the client for the project, the county council, is now in...

EA fined [pounds sterling]170,000 after driver drowned.
February 4, 2004... The Health & Safety Executive (HSE) has warned contractors to carry out proper planning and precautions before undertaking work near water. The advice follows a prosecution of the Environment Agency (EA) at Lincoln Crown Court last Friday when...

Tube Lines ready to train.
February 4, 2004... Union warns plans to train specialist signalling engineers will fail unless pay rates can compete with agencies. Tube Lines is to build a [pounds sterling]7.5m training centre to tackle the severe shortage of specialist signalling engineers...

Kier buys Lincolnshire housebuilder for [pounds sterling]15m.
February 4, 2004... Kier has bought Tudor Homes, a regional housebuilder operating mainly in south Lincolnshire for [pounds sterling]15m. Set up approximately two years ago, Tudor had an annual turnover of around [pounds sterling]15m. The business was run by a...

Interserve offloads troubled Liverpool job to Enterprise.
February 4, 2004... Interserve has finally completed the novation of its strike-hit contract for the repair and maintenance of Liverpool City Council's 21,000 council homes to Enterprise. The three-year contract, valued at in excess of [pounds sterling]20m per...

Thames seeks [pounds sterling]1bn extra for water mains.
February 4, 2004... Contractors bidding for AMP 4 water contracts with Thames Water (TW) can expect an increase in workload of around [pounds sterling]1bn over five years. Thames is due to submit its [pounds sterling]3.5bn business plan to Ofwat in April, which...

Staff to vote over HSE strike.
February 4, 2004... The Health & Safety Executive (HSE) is confident its staff will not strike as the row over pay rises continues. It had been reported that the HSE is offering staff at the top of the organisation 0.5% to 1% more than operational staff, even...

Sale of Omnico clears way for Haymills MBO.
February 4, 2004... Subsidiary sale and resolution of pension fund deficit mean buy-out can now go ahead. The management buy-out (MBO) of Haymills Contracting is back on track thanks to last week's sale of Omnico, its builders' merchant subsidiary, and the...

Home buyers put quality of construction and finish first.
February 4, 2004... New home buyers rate quality of construction and finish among the most important criteria when buying a home, closely followed by use of internal space and value for money. The next most pressing concern is the design and appearance of the...

Crane and Egan clash over use of e-auctions.
February 4, 2004... Sir John Egan's public support of reverse auctions has been labelled as "flawed" by Rethinking Construction's chairman Alan Crane. In a recent statement, Egan, as chairman of Asite, said a reverse auction can be an effective procurement...

High demand set to expand NFB's partnering scheme.
February 4, 2004... The National Federation of Builders (NFB) plans to establish its Construction Accredited Partner Scheme (CAPs) as a separate trading company with effect from 1 April, following higher-than-anticipated demand. Launched last October (CJ 15...

Analysts urge Jarvis to change its name.
February 4, 2004... City casts doubts on Jarvis' ability to recover from problems leading to its [pounds sterling]12m profit warning last week. Jarvis' financial and image problems mean the group "must change its name", according to analysts this week. One...

Third PFI social housing tranche attracts 19 bids.
February 4, 2004... The third tranche of privately financed social housing schemes has got off to a strong start with 19 bids from councils vying for a slice of the [pounds sterling]600m funding. Of the 19 bids received, seven are for new build schemes only. The...

Bond issue for [pounds sterling]2bn Colchester Barracks PFI.
February 4, 2004... The delayed [pounds sterling]2bn Colchester Barracks PFI scheme is expected to secure a bond issue this week, allowing the deal to reach financial close in around two weeks. As CJ went to press a source close to the consortium confirmed an...

Midlands hospital PFIs to be batched.
February 4, 2004... The [pounds sterling]300m Wolverhampton Hospitals scheme and the [pounds sterling]117m Walsall Hospital PFI project are about to be batched, according to sources close to both of the schemes. The two schemes were put on hold in May 2003, when...

Spa-ing partners lose on points.
February 4, 2004... The row between Bath & North East Somerset Council and Mowlem about substandard paint at Bath Spa rivals the vitriolic disagreement between the government and the BBC in its antagonism. Just like the Hutton inquiry, the investigation into Bath...

Trading policy pays off.
February 4, 2004... Build costs at Crest Nicholson have risen by 6% in the past year - with subcontract labour rates moving ahead as a result of the shortage of skilled tradesmen. By contrast, material prices have shown little change thanks largely to Crest's...

Fairbriar staff are transferred.
February 4, 2004... Fairbriar, the residential property developer, has made a loss of [pounds sterling]750,000 (profit in the previous year was [pounds sterling]3m) as group turnover dived to just [pounds sterling]5m ([pounds sterling]30m) in the year to 30...

Contributory negligence.
February 11, 2004... In January 1998 a fire destroyed most of a food factory in Brentwood, Southall. The factory was leased by Sahib Foods Ltd, who produced pre-prepared foods for sale to large supermarkets such as Tesco. The total loss as a result of the fire...

Jobs boost in Marshall Homes move.
February 11, 2004... Marshall Homes, a new private housebuilding business set up by Alloa-based Marshall Construction, will lead to the creation of 50 new jobs. Owner Robert Marshall said: "We're looking for carpenters, electricians and plumbers. All the skills...

Bill looks at crime prevention.
February 11, 2004... Sustainable and Secure Buildings Bill will ensure builders install crime-prevention measures in new buildings. Contractors might have to install crime prevention measures in buildings if a private members' bill is passed. Andrew Stunell's...

Citro'n update focuses on safety.
February 11, 2004... Dispatch and Enterprise commercial vehicles offer airbags, lap and diagonal belts and ventilated disc brakes. Citron has revised its Dispatch range and introduced the Enter-prise special editions across its range of commercial vehicles. In...

Rail uncertainties dampen future prospects.
February 11, 2004... Any potential buyer's interest will fade away when it discovers an inability to get a serious fix on what workload can be expected from Network Rail, one analyst said. "A large percentage of Peterhouse's turnover is from Network Rail and the...

Firms sign up for ScotPlant.
February 11, 2004... This year's ScotPlant (23-24 April, Ingliston Showground) will be the biggest ever, with more than 20 companies making their first appearance. The latest to sign up are Terex Equipment and Ingersoll-Rand. Scottish dealers will be supporting...

Bring it on ; at Bauma.
February 11, 2004... Bauma 2004 is celebrating its 50th anniversary and it is set to be the largest ever event, showcasing a host of different machines. Martin Cooper takes a look at what you can expect to find. Exhibitions don't come any bigger than Bauma. The...

Bidders eye up MoD's [pounds sterling]700m eastern prime.
February 11, 2004... Defence Estates (DE) was impressed by the turnout at its industry day for the last of its regional prime contracts (RPC), worth more than [pounds sterling]700m. A DE spokesman said: "The response was better than anticipated and the industry...

Peterhouse buyer looms.
February 11, 2004... Anonymous services sector player eyes Peterhouse Group, giving a lift to its previously sliding share price. The potential buyer for Peter-house Group is rumoured to be a big player in the UK services sector. The City has little indication...

EU and US agree emissions regs.
February 11, 2004... Off-highway machinery regs to be aligned. Plant manufacturers are breathing a collective sigh of relief as the regulatory authorities on both sides of the Atlantic have agreed to harmonise requirements curbing exhaust emissions from...

Standall steels cut vibration.
February 11, 2004... Standall Tools claims its totally tuned silenced steels are set to change the construction and demolition tools industry. The company said the steels, used with pneumatic and electric hammers, reduce vibration received at the tool hand/grip...

Bellway plans new divisions to help growth.
February 11, 2004... Two new sales divisions are set to help Bellway, the UK's sixth-largest housebuilder, achieve its ambition of lifting annual sales to 8,500 through organic growth. Last year, Bellway's sales ran to close on 6,300 and this year's tally is...

Engineers vote on 8%.
February 11, 2004... Operatives to vote on 'absolutely the final offer' with industrial action ballot on the cards. Operatives on engineering construction sites have until 17 February to decide whether to accept a two-year pay deal worth 7.7%. Failure to agree...

Palram wins Olympics.
February 11, 2004... Thermoplastic sheet specialist Palram Europe has won a contract to provide polycarbonate roof panels for the [pounds sterling]2m "jewel in the crown" of the Athens Olympic Stadium complex. Last-minute safety concerns voiced by the Greek...

Self-compacting concrete to show its real benefits.
February 11, 2004... Proposed European Union vibration regulations will boost the use of self-compacting concrete, claims the concrete structures group Construct. The European Directive would be implemented under the proposed Control of Vibration at Work...

Client and PFI bidders allowed to 'fine tune'.
February 11, 2004... European procurement directive allows limited dialogue at the preferred bidder stage. The European Commission (EC) has allowed the government to keep dialogue between client and contractor at the preferred bidder stage of the PFI bidding...

Partnerships for Schools chief quits on eve of launch.
February 11, 2004... Robert Osbourne has resigned as acting chief executive of Partnerships for Schools (PfS), which oversees the government's [pounds sterling]5.1bn Building Schools for the Future (BSF) programme. Osbourne's resignation follows the Department for...

Site smart cards are a step closer.
February 11, 2004... The engineering services sector is taking an interest in site smart cards. Representatives of the electrical contracting and plumbing Joint Industry Boards and the heating and ventilating industry heard a presentation on the concept from their...

Sutherland quits Amey for Lend Lease.
February 11, 2004... Amey Ventures managing director Dougie Sutherland is leaving Amey to head up Lend Lease's European PFI healthcare business. This is a new post in which Sutherland, as chief executive, will oversee the equity investment, business development,...

Two vie for [pounds sterling]16m Glasgow PFI.
February 11, 2004... Two groups are hoping to gain admission to a [pounds sterling]16m PFI hospital deal in Glasgow. The Robertson Group and Canmore/Balfour Beatty are involved in the tussle to build the new Gartnaval Royal Psychiatric Hospital. A third bidder,...

Willmott Dixon wins NHS work.
February 11, 2004... Willmott Dixon has bagged its second key worker housing deal in west London for the Thames Valley Housing Association. The latest triumph is a [pounds sterling]12.5m deal to build 295 homes for hospital staff employed by the Hammersmith...

Norwest Holst is tipped for [pounds sterling]35m A505 Baldock bypass.
February 11, 2004... Industry insiders say Norwest Holst is in the driving seat for a [pounds sterling]35m local authority deal in Hertfordshire. It is understood the Watford-based contractor will officially hear this week that it has clinched the A505 Baldock...

Rail bidders fear delay.
February 11, 2004... Bidders concerned that April start date leaves little time to meet Network Rail's cost-efficiency targets. The preferred bidders for Network Rail's (NR) renewals work are worried that the six-month delay in awarding the contracts will make...

Rok and Durham in Tyne win.
February 11, 2004... Two contractors are set to reap a potential [pounds sterling]50m worth of work through a partnering deal with a council in the North East. North Tyneside Council has chosen Rok Ballast and Gordon Durham to carry out a programme of schools new...

Options complicate [pounds sterling]400m Norfolk roads.
February 11, 2004... 'Double bids' approach pushed up costs by around 50%. The race is heating up for a [pounds sterling]400m council road maintenance and improvement framework deal in Norfolk. The county council has three options on the table for the 10-year...

Investing in health and safety pays off for trio.
February 11, 2004... Edmund Nuttall, Ibstock Brick and Birse Rail have revealed how investing in improving health and safety has been good for their businesses. As part of a Health & Safety Executive campaign to prove the business case for investment in improved...

Scottish Water Solutions signs ProjectsOnline deal.
February 11, 2004... BuildOnline has signed an agreement with Scottish Water Solutions (SWS) for the use of ProjectsOnline, its project collaboration software tool, across the client's 2,500 proposed projects. SWS is a joint venture and the eight equity partners...

Finchley crane collapses on Comer site.
February 11, 2004... A crane collapsed last week without causing injury at a Comer Homes development in Ealing, west London, being built by Finchley Construction. Emergency services were called to the Cavalier House site on Uxbridge Road, off Ealing Broadway, after...

Contractors resist rail staff transfer.
February 11, 2004... Discussions between Network Rail (NR) and its contractors over the TUPE transfer of 18,500 staff have hit the buffers, according to union officials. Sources from the RMT and the Transport Salaried Staffs' Association (TSSA) unions have told CJ...

CITB-ConstructionSkills winning levy argument.
February 11, 2004... Survey respondents give an average 7.3 out of 10 for satisfaction, and show increased awareness of training services. CITB-ConstructionSkills is winning the argument about the levy grant system. Its annual employer satisfaction survey...

Concrete body leaps on steel firm's admission.
February 11, 2004... The concrete industry claims the steel industry has "shot itself in the foot" with an advertisement for Richard Lees' new product, Restotec, which admits that lightweight framed structures can cause sick building syndrome. Restotec is a damper...

Tendring heads into liquidation.
February 11, 2004... The administrator for Tendring Construction is pushing ahead to take the collapsed contractor into liquidation following a creditors' meeting last Thursday. David Merrygold, corporate recovery partner and joint administrator at PKF, told CJ:...

May Gurney wins work worth [pounds sterling]90m.
February 11, 2004... May Gurney has picked up two contracts with Waste Recycling Group and Network Rail worth [pounds sterling]45m each. The Waste Recycling contract involves landfill construction and associated works in the South and South West. It will run for...

UK Power deal for McAlpine.
February 11, 2004... McAlpine has completed the [pounds sterling]5.2m purchase of UK Power Construction, an electrical services business that specialises in the overhead lines marketplace in the UK and Ireland. In the year to March 2003, UK Power had sales of...

Jarvis seeks stability after Sutton resigns.
February 11, 2004... Management and non-executive team is optimistic for a brighter future following high-profile problems. No further heads are expected to roll at Jarvis following the resignation of Andrew Sutton, head of the group's accommodation services...

Brighton reads Jarvis the riot act.
February 11, 2004... Brighton & Hove City Council read the riot act to Jarvis last week over its handling of the council's [pounds sterling]105m PFI schools contract, writes Ross Pearman. Jarvis now has one-month and two-month improvement deadlines to meet or it...

Babcock & Brown pays for faulty Ballast work.
February 11, 2004... Babcock & Brown has lost millions of pounds on the Tower Hamlets PFI schools contract, said a source this week, largely because of the costs incurred in sorting out faulty work carried out by collapsed contractor Ballast. The company set up...

EC wages war on planning gain deals.
February 11, 2004... Planning gain deals between local authorities and developers and contractors could be declared illegal by the European Commission (EC). The EC has started legal action against France in the European Court of Justice over its public procurement...

Skanska's subbies clash over MoD HQ.
February 11, 2004... Prestigious [pounds sterling]340m PFI project threatened by non-payment dispute between angry electricians and Skanska. A pay dispute is threatening to bring work to a halt on the prestigious [pounds sterling]340m PFI project to...