Contract Journal articles from June 2003

Contract Journal archives from June 2003

In the war zone.(Industry Overview)
June 4, 2003... The 1998 Construction Act should have brought an end to subbie bashing, but a Chelmsford-based plastering specialist believes that some contracts managers are still prepared to screw subcontractors into the ground. Brian Green reports. ...

ECA awaits decision for T5 to pioneer M&E pay deal.(Electrical Contractors Association)(Brief Article)
June 4, 2003... BAA is expected shortly to confirm that Heathrow's T5 will be the first contract to be covered by the new mechanical and electrical (M&E) engineering services Major Projects Agreement. "We made a presentation to the client on the...

Customer survey assists Simplex.(Brief Article)
June 4, 2003... n Company director vows to step in if 30-point client satisfaction questionnaire produces low results. Simplex Foundations, the new operating subsidiary within Vinci for all the group's piling operations, has improved client relationships...

Laing O'Rourke buys Carillion's piling arm.(Brief Article)
June 4, 2003... Laing O'Rourke has completed its acquisition of Carillion's piling business, Expanded Piling, for [pounds sterling]6.3m. Chief executive Ray O'Rourke said: "The acquisition of Expanded Piling adds a significant dimension to Laing...

Seddon Atkinson is back in construction.(Brief Article)
June 4, 2003... Iveco subsidiary Seddon Atkinson is to reassert itself in the construction and municipal market with its own distinct product offerings of lightweight machines for the construction and aggregate industries and the waste sector. First on to...

Heathrow debut for Wirtgen.(Geofirma)(Brief Article)
June 4, 2003... The world's first Wirtgen WR2500SK soil-stabiliser and recycler, which only received its official launch at last month's Intermat show in Paris, is already hard at work on the T5 project at Heathrow. The machine is being used by UK-based...

I-R seeks simplified range.(Ingersoll-Rand)(Brief Article)
June 4, 2003... n Chief executive sets out goal of innovative multiple-use replacements for large machines. Herbert Henkel, chairman, president and Chief executive of Ingersoll-Rand (I-R) has set out the company's strategy. "Our goal is to replace large,...

China opening for Liebherr.(Brief Article)
June 4, 2003... The latest plant manufacturer to open a factory in China is Liebherr. The company is building an earthmoving equipment factory in Dallian, a city traditionally associated with heavy engineering and shipbuilding. It plans to manufacture...

Ammann Equipment adds Merlo to product offerings.(Brief Article)
June 4, 2003... Ammann Equipment is to represent Merlo in the West Midlands. Ammann already imports and sells compactors and lighting towers as well as the Ammann-Yanmar range of mini excavators and wanted to add more products to its offerings. "We have...

In brief.(Brief Article)
June 4, 2003... JCB's new breaker JCB has launched a new breaker designed specifically for its 1CX backhoe loader. The HM110 Hammermaster weighs in at 120kg and generates an impact energy of 200J from between 850 and 1,400 blows per minute. Harrington...

Allu unveils its soil stabilising range.(Brief Article)
June 4, 2003... n Allu set to debut its Power Spreader and Mix - excavator-mounted soil stabilisation equipment - at Hillhead. Allu is to display at Hillhead a range of excavator-mounted equipment that can be combined to provide mass soil stabilisation....

Taking its place in UK's top 10 piling contractors.(Brief Article)
June 4, 2003... Simplex, formerly part of the Britannia Group, was acquired by Norwest Holst Soil Engineering in March 2000. Norwest Holst recently changed its name to Vinci and all its piling interests have now been re-titled Simplex Foundations. A...

[pounds sterling]2.4m profit announced by Tulloch.(Brief Article)
June 4, 2003... Tulloch has unveiled a pre-tax profit of [pounds sterling]2.4m ([pounds sterling]2.2m) on a turnover of [pounds sterling]115m ([pounds sterling]97m) in the 12 months to December 2002. Construction profitability was kept under wraps, with...

AI changes working practice.
June 4, 2003... n Firm recruits sector managers in a bid to target specific clients and raise awareness. Aggregate Industries (AI) is changing the way it works by becoming more proactive and targeting clients in specific sectors in a bid to influence...

Tracking system for mobile workers deemed a success.(FleetOnline.net)(Brief Article)
June 4, 2003... A new pay-as-you-go location and tracking system designed to locate and communicate with a mobile workforce is attracting huge interest from the construction industry. Over 500 construction companies have signed up since its launch in April....

Product guide.(Brief Article)
June 4, 2003... Insulation edgestrips Vencel Resil has added Jabfoor 70 edgestrips to its Jablite insulation range. They can be used as edge insulation in solid and pre-cast concrete floors to meet the Robust Details for limiting thermal bridging and air...

Lawrence hits 3% margin.(Brief Article)
June 4, 2003... Lawrence, the specialist pipeline constructor, has hit margins of 3%, one of the two main targets set when Peter Hargreaves took over the reins as managing director in 2000. The second strand of Hargreaves' three-year plan was to double...

BRE airtight regs reminder.(Brief Article)
June 4, 2003... The Building Research Establishment's airtightness experts are reminding designers and contractors that as from 30 September 2003 all new commercial and public buildings with a gross floor area of 1,000m2 or more, must demonstrate that they...

Iveco new range complete.(Brief Article)
June 4, 2003... The latest phase of Iveco's truck evolution is the medium range truck Eurocargo which brings to a close a [pounds sterling]1.5bn investment in renewing its entire truck range. The new look Eurocargo comes complete with three new cabs; day,...

[pounds sterling]250k training push pays off.(Brief Article)
June 4, 2003... Lawrence has invested [pounds sterling]250,000 in recruiting and training up new staff for its push into the low-pressure gas market. The investment has already started to pay off with the award of three contracts in Yorkshire, Hemel Hempstead...

New CE at Hills after reshuffle.(David Hill has been appointed group chief executive of Hills Electrical & Mechanical)(Brief Article)
June 4, 2003... David Hill has been appointed group chief executive of Hills Electrical & Mechanical, the [pounds sterling]100m-a-year Walsall-based group. A major reshuffle of the main board has resulted in John Bird stepping up to the position of...

back bites.(Brief Article)
June 4, 2003... All fired up When it comes to attention grabbing freebies, stone product manufacturer Marshalls has won Back bite's gong for this week's wackiest idea. Hand-held metal batons with a switch on the side designed to look like an outsize...

Bovis bags [pounds sterling]170m Leeds hospital.(Brief Article)
June 4, 2003... The Catalyst group has moved to the top of the priority list for one of the biggest deals in the third wave of privately financed hospital deals. The team, comprising Bovis Lend Lease and Sodexho, has emerged as preferred bidder for a...

GCSE in construction under consideration.(Brief Article)
June 4, 2003... A GCSE in construction could soon become a reality for school pupils with the formation of a steering group to take the idea forward. Eighteen months ago several vocational GCSEs were introduced to schools but construction wasn't included....

Stepnell pitches for [pounds sterling]10m PFI school.(Brief Article)
June 4, 2003... Rugby-based contractor Stepnell has entered the PFI arena for the first time as one of three bidders pitching for a [pounds sterling]10m schools project in Herefordshire. The district council project involves building the Whitecross High...

Costain consortium pulls out of [pounds sterling]700m MoD prime contract.(Brief Article)
June 4, 2003... Defence Estates has received tender returns from three of the four bidders for its [pounds sterling]700m-plus South West regional prime contract. The Cirrus Prime Services consortium, consisting of Costain, Scott Wilson and Group4, did not...

Road Maintenance Services all set to be major player in road surfacing.(Brief Article)
June 4, 2003... Road Maintenance Services (RMS) has purchased Total Bitumen's premium surface dressing contracting division for an undisclosed sum. All operational staff have transferred to RMS with John Simpson being appointed as contracts director. ...

In brief.(Brief Article)
June 4, 2003... Robertson gets [pounds sterling]45m North Tyneside LIFT Scottish contractor Robertson has been confirmed as preferred bidder for the Newcastle and North Tyneside LIFT deal worth [pounds sterling]45m over the first five years. Construction...

In brief.(Brief Article)
June 4, 2003... Knightsbridge fit-out deal for Mivan Mivan has been appointed by Multiplex to fit-out bathrooms in 205 luxury apartments at the 199 Knightsbridge development in London. The contract, worth [pounds sterling]14m, starts this month and should...

Proof M4I works.(Movement for Innovation (M4I) demonstration projects )
June 4, 2003... n KPIs from 400 demonstration projects show increased profitability and client satisfaction. Movement for Innovation (M4I) demonstration projects have increased profitability and improved predictability, client satisfaction and safety,...

Self-build initiatives for subbies.(Brief Article)
June 4, 2003... Subcontractors could find more work coming their way from the self-build market with the launch of two initiatives from BuildStore, provider of an end-to-end service for self-builders and renovators. The BuildStore Trades Referral Service...

CECA and Thames Water talk of using more SMEs inAMP4.(Civil Engineering Contractors Association)(Brief Article)
June 4, 2003... The southern division of the Civil Engineering Contractors Association (CECA Southern) is to hold roundtable talks with Thames Water about the greater use of small- and medium-sized (SMEs) contractors in its multi-billion pound AMP 4 contracts....

No truth in HBG 'for sale' rumour.
June 4, 2003... n Chief executive Brian May says firm is using the UK market to strengthen its PFI exposure. HBG Construction is not for sale. "There is absolutely no truth in this speculation," said Brian May, the chief executive of the [pounds...

Momentum for Innovation.(Brief Article)
June 4, 2003... The overall performance of the 400-plus Movement for Innovation demonstration projects continues to improve year-on-year and projects remain considerably ahead of the industry average. At the risk of sounding blase, the improvement was to...

John Sisk subbies form 'an injustice'.(Confederation of Construction Specialists)(Brief Article)
June 4, 2003... n CCS states that the subcontract form "should not be regarded as significantly improved". John Sisk & Son's subcontract form "retains almost all of its potential for uncertainty or rank injustice", according to the Confederation of...

In brief.(Brief Article)
June 4, 2003... Ferrovial takes five seats on Amey board Ferrovial's bid for Amey has succeeded and the Spanish group has taken five of the nine seats on the restructured Amey main board. Jose Leo, currently general manager of Ferrovial's telecoms...

Dawn bags Dundas' PFI equity portfolio.(Dawn Construction)(Brief Article)
June 4, 2003... Dawn Construction has snapped up the PFI equity portfolio of Melville Dundas, which went into receivership last week. Ernst & Young, the receiver, has ruled out the prospect of selling the Glasgow-based construction company as a whole. This...

Jewson launches PFIteam targeting ProCure 21.(Brief Article)
June 4, 2003... Timber and building materials supplier Jewson has created a team to focus solely on PFI schemes. "It's basically about getting involved with contractors at a much earlier stage of a project to plan in advance what products and materials...

HSE blitz to reduce falls.( Health & Safety Executive inspectors )(Brief Article)
June 4, 2003... Construction sites across the UK are being blitzed by Health & Safety Executive inspectors this week and next as part of a European campaign to reduce falls from height. Falls from height are the single biggest cause of death, disability...

Gleeson strikes itself off ProCure 21 longlist.
June 4, 2003... n Contractor drops out of bidding for Diagnostic and Treatment Centres programme after it was slashed by two thirds. The swingeing cuts to the [pounds sterling]600m Diagnostic and Treatment Centre (DTC) programme under ProCure 21 have...

Ballast issues sale document.(Brief Article)
June 4, 2003... Ballast finally issued its long-awaited 250-page sales memorandum last week. The groups in the frame are thought to be Montpellier, Bilfinger Berger, Dutch construction group Heijmans and Balfour Beatty. But they face competition for the...

[pounds sterling]700m third wave of social housing PFIs.(Brief Article)
June 4, 2003... A third tranche of social housing PFIs worth [pounds sterling]700m is to be announced next month. This third wave of schemes is expected to include much more new build work, thanks to changes in the way PFI housing is to be subsidised. The...

Willmott Dixon profit growth continues.(Brief Article)
June 4, 2003... Privately owned contractor Willmott Dixon is celebrating its seventh consecutive year of profit growth and the sort of earnings per share (EPS) growth that most publicly listed contractors can only dream about. In 2002 Willmott Dixon...

Condition precedent clauses.
June 4, 2003... In August 2001, I reported the case of City Inn -v- Shepherd Construction. This case has now been heard on appeal in the Inner House of the Court of Session in Edinburgh. This appeal decision presents the opportunity to examine contract...

The laid back lord.(Lord Rooker)
June 4, 2003... As minister of state for housing, planning and regeneration, Lord Rooker will play a key role in shaping Britain's housing over the next decade.Last month he celebrateda year in the job. He tells Will Mann how he's been getting on. "Call...

PFIs boost Kajima presence in UK.(private finance initiatives )(United Kingdom)
June 11, 2003... Good design pays dividends as value of PFIs being bid hits [pounds sterling]175m, but Kajima's long-term plan is to bundle and sell equity stakes. Kajima is set to strengthen its presence in the UK construction market on the back of a...

Defects scheme to encourage relationships.(Brief Article)
June 11, 2003... A new defects insurance scheme promises to be the best practice driver the industry has been waiting for, and could also solve employers' liability insurance problems. Launched last week by the Construction Manufacturers Partnering...

Marketing pulls in the troops at Hills.(Hills Electrical & Mechanical)(Brief Article)
June 11, 2003... Hills Electrical & Mechanical has used direct marketing for the past two years to target local 18-year-olds who, after appropriate training, will meet the group's future need for more project managers. The group plans to double turnover to...

Back bites.(Aggregate Industries protects a special breed of spider)(multiple topics)
June 11, 2003... Arachnid Industries Aggregate Industries (AI) has had to take special measures at its Bardon Hill quarry in Leicester because of a special breed of spider that lives in timber, commonly known as the Charn Wood spider (mastigusa...

Tradesmen demand long hours.(Brief Article)
June 11, 2003... Skilled tradesmen are not being forced to work long hours - it is the opposite, with individuals demanding to be offered a seven-day week. Chief executive David Hills said: "Wages for electricians and plumbers and the like are going through...

Product guide.(Brief Article)
June 11, 2003... Nitoflor treatment Fosroc has launched Nitoflor Cureseal, a curing and sealing treatment that can be applied to new or existing concrete to provide a dustproof surface with resistance to abrasion and oil and liquid penetration. SGB...

Industry needs to embrace effects of climate change.
June 11, 2003... Government calls on industry to respond, but manufacturers want targets to aim for. Building products will have to be changed to meet future climate changes, and demand for products that can withstand these changes will undoubtedly rise,...

Brick strike is suspended.(Hanson Brick)(Brief Article)
June 11, 2003... A series of one-day strikes at Britain's biggest brick manufacturer has been suspended following a last-minute revised pay offer from the company. Unions are recommending that their members accept the new offer from Hanson Brick. This...

Product KPIs reveal customer satisfaction.(key performance indicators)(Brief Article)
June 11, 2003... Contractors, clients, builders' merchants and specialist contractors are more than satisfied with construction products and the reliability of their delivery, according to this year's Construction Products Industry Key Performance Indicators...

Action needed to train and keep tilers.(Brief Article)
June 11, 2003... The Clay Roof Tile Council (CRTC) is urging the roofing industry to recruit and retain more skilled tilers. The rate of new roof tiling trainees completing their training has fallen sharply from 125 in 1988 to one in 1996, when the figures...

A McAlpine buys AIMS Group.(Brief Article)
June 11, 2003... Alfred McAlpine has bought AIMS Group Services, a specialist advisory, training and technical services firm that focuses on workplace compliance issues, for [pounds sterling]7.2m. The company said that it had paid [pounds sterling]5.9m in...

Persimmon buys Merewood.(Brief Article)
June 11, 2003... Persimmon has bought North East-based housebuilder Merewood for [pounds sterling]22.6m. Merewood operates under two brands - Merewood Homes and Crowther Homes - in Lancashire and Cumbria. Last year the group completed 281 new home sales...

Balfour wins [pounds sterling]87m T5 station fit-out contract.(Brief Article)
June 11, 2003... Balfour Beatty Construction has sealed an [pounds sterling]87m fit-out contract for the T5 rail station and passenger interchange - taking the group's total workload on the project to [pounds sterling]180m. Work for BAA's high-profile...

In brief.(Brief Article)
June 11, 2003... Skanska wins five-year framework deal Cementation Foundations Skanska has been awarded the five-year framework contract to upgrade earth structures on the Jubilee, Northern and Piccadilly Lines by Tube Lines. The deal is worth [pounds...

Laing O'Rourke loses a director by 'agreement'.(Brief Article)
June 11, 2003... Laing O'Rourke's business development director Mike Hooper has left the company "by mutual agreement". He will announce his new post within a couple of weeks. The move follows on the heels of O'Rourke's two recent losses: commercial...

Employers still not prioritising training.(Brief Article)
June 11, 2003... Construction firms are still failing to understand the value of training despite the industry continuing to suffer from labour and skills shortages. That is the overriding message from the latest Respect for People Key Performance...

Irish development years behind plan.
June 11, 2003... n Funding needs to be increased as national transport plans could run seven years late. The biggest national development plan in the history of Ireland, which was expected to provide a bonanza for UK and European contractors and local...

British Energy scraps build plans.(Brief Article)
June 11, 2003... British Energy has abandoned its proposals to build a new generation of nuclear power stations. Just 18 months ago, the nuclear generator announced proposals to build seven new plants at a cost of [pounds sterling]10bn. But following...

Hyder looks to 6% margins.(Brief Article)
June 11, 2003... Hyder Consulting has turned its business fortunes around and is now working on a three-year programme to achieve the average margin of 6%. "We have benefited from the completion of a number of low-margin projects but our average is still...

Carillion buys into Swede rail.(Swedish Rail Systems Entreprenad )(Brief Article)
June 11, 2003... Carillion has bought Swedish Rail Systems Entreprenad (SRSE) from Heidelberg Cement Northern Europe for [pounds sterling]6.2m. SRSE owns rail contractors in Sweden, Norway, Denmark and Finland and employs about 250 people. All the...

In brief.(Brief Article)
June 11, 2003... Spectrum wins [pounds sterling]8m fit-out deal in the City Spectrum Projects has won the [pounds sterling]8m contract to fit-out law firm Berwin Leighton Paisner's office at St Magnus House in the City. The project involves work on five...

Liability insurance reports miss mark.(Brief Article)
June 11, 2003... n Industry calls on government for action as OFT and DWP fail to ease insurance crisis. The Office of Fair Trading's (OFT) and the Department for Work and Pensions' (DWP) reports on liability insurance have missed the mark and the...

Call for bidders for [pounds sterling]1bn Southwark revamp job.(Brief Article)
June 11, 2003... The London Borough of Southwark is seeking development partners for the [pounds sterling]1bn regeneration of Elephant & Castle at the end of the year. Contracts to build 1,200 new homes to replace the run-down 10ha Heygate Estate are being...

Insurance is a risky business.(Brief Article)
June 11, 2003... What's the similarity between journalists and contractors? Yes we can both make something out of nothing, but it's not that. The answer is that we both struggle to get fair insurance premiums. Journalists are categorised as high risk for...

AWG moves into lower risk work.(Brief Article)
June 11, 2003... AWG has transformed the risk profile of Morrison Construction, bought nearly three years ago, although the controversy over the acquisition still rumbles on. Despite changes, AWG's project management services division, the former Morrison...

Another prequal register for London firms.(Brief Article)
June 11, 2003... Contractors seeking public sector work in London can look forward to joining another register of qualified firms. The Select database has been set up by the London Contracts and Supplies Group (LCSG), which represents 32 London local...

Quality Mark gets stay of execution from Wilson.(Brief Article)
June 11, 2003... Construction minister Brian Wilson has intervened to save the ailing Quality Mark anti-cowboy scheme. A combination of a lack of funding and a loss of patience with the struggling initiative - which has attracted less than 400 members -...

Two-tier workers PFI row resolved.
June 11, 2003... n New ADR procedure aims to prevent two-tier workforce in local authority PPP contracts. An alternative dispute resolution (ADR) procedure aimed at preventing the creation of a two-tier workforce in local authority PPP contracts is to be...

Holyrood team called to justify cost increases.(Scottish Parliament building)(Brief Article)
June 11, 2003... A meeting was due to be held yesterday (Tuesday) to discuss the latest prognosis of cost rises on the Scottish Parliament building. Following last week's announcement that the Holyrood project could cost a further [pounds sterling]37m,...

In brief.(Brief Article)
June 11, 2003... Carillion gets Brum LIFT Carillion Prime Partnership has been selected as preferred bidder ahead of Group 4 Falck and Miller for the Birmingham and Solihull LIFT PPP, which has an estimated capital value of up to [pounds sterling]100m over...

Hochtief's subbie bails out at Guernsey Airport.
June 11, 2003... n Main subcontractor Concept chases Hochtief for [pounds sterling]1.5m after it ceased trading owing local firms [pounds sterling]600,000. The former main subcontractor on Guernsey Airport's [pounds sterling]16m terminal has ceased...

Nuttall/Norwest fined over site accident.(Brief Article)
June 18, 2003... Two major construction contractors were fined more than [pounds sterling]50,000 at Bedford Magistrates Court last week following an accident during construction of the A6 Clapham Bypass. Subcontractor John Stuart, of Glasgow, sustained...

Holyrood consultants agree to a cut in fees.(Brief Article)
June 18, 2003... Consultants on the Holyrood Scottish Parliament project have been forced to take a cut in their multi-million pound fees. The decision follows two hours of talks last week between presiding officer George Reid and MSPs who sit on the...

Rail maintenance firms face the axe.
June 18, 2003... n Amec, Balfour Beatty and Amey in firing line as Network Rail considers cost-cutting strategy. Network Rail could be forced to slash its maintenance contractor base further and spread work more evenly to cut costs. The rail operator...

MoD delays its decision on [pounds sterling]3.9bn scheme.(Ministry of Defence)(Brief Article)
June 18, 2003... A preferred bidder for the [pounds sterling]3.9bn Ministry of Defence (MoD) Project Allenby and Project Connaught PFI will not be announced until the end of July. Originally due this month, the selection has been postponed because the MoD...

Frustrated firms slam DTI over Quality Mark delays.(Department of Trade & Industry)(Brief Article)
June 18, 2003... Companies looking to join the Quality Mark have voiced their frustration this week at the way their applications to sign up to the anti-cowboy scheme have been handled. Applicants have told CJ that after initially being invited back for a...

Three Peaks Challenge.
June 18, 2003... Twenty-eight teams from the construction industry pulled out all the stops to climb Ben Nevis, Scafell Pike and Snowdon in under 24 hours over the weekend of 31 May to 1 June. The COINS Three Peaks Challenge event was the first ever run...

Network Rail and BB in dock over boy's death.(Brief Article)
June 18, 2003... Network Rail and Balfour Beatty face a Crown Court appearance after pleading guilty to breaching health and safety rules which led to the death of a four-year-old boy. Bobby Wood died instantly after passing through an open gate and on to...

Europinion predicts entry.(Brief Article)
June 18, 2003... Just one in nine Contract Journal readers believe Britain will never join the euro, despite the Chancellor of the Exchequer's "not yet" verdict on euro entry and opinion polls showing that most British people want to keep the pound. Last...