Contract Journal articles from November 2005

Contract Journal archives from November 2005

Editor's comment.(Editorial)
November 2, 2005... Rising fuel prices hit construction The cost of building is going up, but from next January it's going to go up a lot faster. Most of the major heavy materials producers announced last week that prices would be rising next year. And we are...

Market share fears see RCS out of Area 1 race.(Revision Control System)
November 2, 2005... HA's stance on encouraging fair distribution of work across road network takes effect. The first signs that the Highways Agency's (HA) change in direction over market share across the road network seems to be finally showing its teeth...

Amey backs up recovery with bigger profit.(Amey Holdings PLC)(Brief Article)
November 2, 2005... Amey has put its woes further into the past and, after a period of loss-making prior to its acquisition by Ferrovial, is close to revealing its second consecutive year of profits. The latest results, covering the 12 months to December 2005, are...

Accord spends ahead of housing contract re-bid.
November 2, 2005... Collaborative model seen as the future - but analyst sees need for a further push into white collar operations. Accord's latest group profit figure has been trimmed back as a result of a heavy investment in the structure of its housing...

Too much red tape is hindering competition.
November 2, 2005... Volvo CE says excessive legislation is stopping European firms competing in global market. Too much legislation is affecting European equipment manufacturers' ability to be competitive in the global market place, according to Tony...

Cintra motors ; 10 months ahead of N4 schedule.
November 2, 2005... Cintra, the infrastructure arm of Spanish giant Ferrovial, and Irish contractor SIAC Construction are set to deliver the [pounds sterling]190m N4 Kilcock to Kinnegad motorway PPP project in the Republic of Ireland 10 months earlier than...

Is offsite getting into gear?
November 2, 2005... The automotive industry has long been held up as the model that construction should follow - but in its efforts to embrace offsite methods, is the industry on the way to being a smooth-running Rolls Royce, or is it an old Ford Capri, stuck on...

HSS Hire cuts its prices to drive sales.(Brief Article)
November 2, 2005... HSS Hire has reduced prices on its range of consumables and introduced bulk savings in an effort to drive up sales. The company, traditionally known as a tool and equipment hirer, said sales will play a major part in its future growth and it...

Smartening up offsite's image.
November 2, 2005... Bluestone is constructing a new training facility in East Anglia that aims to change negative perceptions of offsite construction and promote sustainable building practices. Helen McCormick takes a look around. A new training centre in...

Earthmoving sales set for 4% UK hike.
November 2, 2005... Strong sales of equipment predicted across Europe in 2005. The European earthmoving equipment sector is predicted to remain at a high level this year, with the UK expected to post a 4% sales increase over 2004, according to the Committee...

Modular medicine.
November 2, 2005... Can modular specialist Yorkon make an incision into the booming healthcare market? With a 30% time saving on construction of Portsmouth's new [pounds sterling]6m independent sector treatment centre, there seems every chance it can. Will Mann...

No time to rest ; on your laurels.
November 2, 2005... The CIS changes may have been delayed, but don't expect HMRC to go easier on construction firms that are not complying with the existing rules. Alan Nolan, a director in KPMG's Employment Tax Group, looks at a case that nearly saw the demise of...

back bites.
November 2, 2005... Material world Times must be hard for materials suppliers, as the annual draw at last week's Construction Products Association Autumn Lunch clearly demonstrated. Although a banknote collection raised more than [pounds sterling]4,000 for the...

CNH profit rockets by 58% on previous year.
November 2, 2005... Equipment manufacturer CNH has reported a net profit of [pounds sterling]87.6m for the nine months to 30 September, up 58% on 2004. For the third quarter of 2005, CNH has also reported a net profit of [pounds sterling]15.16m, compared to...

NCC students awarded trade skills accolades.(National Construction College )(Brief Article)
November 2, 2005... Four National Construction College (NCC) students have been recognised as some of the nation's best young tradespeople at the 24th Skillbuild Competition final held at the North Glasgow College. The NCC students won three out of the 12...

Self-contained units to boost generator market.
November 2, 2005... The growing trend for self contained on-site welfare units will help the UK generator market to grow by 4% over the next three years, according to the latest market analysis by AMA Research. The total market in 2004 is estimated to be worth...

Changing composition.
November 2, 2005... UK manufacturers can't produce the same quality housing product as their European competitors - at least that's the view of offsite specialist Composite. Managing director Roy Nield-Dumper tells James Atkinson why he is partnering with a Danish...

Egger invests [pounds sterling]120m in Northumberland chipboard plant.
November 2, 2005... Chipboard maker Egger is investing [pounds sterling]120m in its Northumberland site to increase efficiency and capacity. The company plans to demolish existing buildings and spend [pounds sterling]20m on building a new plant in Hexam starting...

Hydrodemolition solves concrete problem on A1.(Brief Article)
November 2, 2005... Hydrodemolition proved to be the solution for concrete repair work on one of the A1's major underpasses, just north of Newcastle-upon-Tyne. A Conjet 362 high-pressure water jetting hydrodemolition machine was used to remove defective concrete,...

Branching out.
November 2, 2005... Offsite timber construction is producing some remarkable buildings in Sweden thanks to some innovative glulam and solid wood products. Manufacturers hope their designs will find a huge new market in the UK. Helen McCormick went to see some of...

Westbury hit by cost of sales incentives.(Brief Article)
November 2, 2005... Westbury, the housebuilder, has seen the cost of the incentives needed to secure a sale rise to 3.5% from an average of 2% to 2.5% in the six months to the end of August. The move was needed to counter a fall in sales. But even with the greater...

Increasing energy prices force building producers overseas.
November 2, 2005... Cement, steel and brick companies in UK hit by rates 45% higher than those of their continental competitors. The Construction Products Association has slammed increases in energy prices and blamed gas providers for driving production out...

Warings lifts KPIs by further 10%.(Key Performance Indicators)
November 2, 2005... Warings has lifted its Key Performance Indicators (KPIs) by a further 10% to keep performance rising within the Portsmouth-based design and build construction group. Chief executive Len Salter said: "We achieved our KPIs last year and now...

Gleeson heads to top of [pounds sterling]10.5m academy class.(Brief Article)
November 2, 2005... Gleeson is understood to be the contractor most likely to make the grade on a [pounds sterling]10.5m schools academy deal in Leicester. Sources say that the contractor has worked up a head of steam for the Samworth Enterprise Academy scheme,...

Lack of industry support threatens training levy.
November 2, 2005... CITB must prove that half of paying firms are in agreement with statutory charge or its legal status is at risk. The legal status of the statutory training levy remains on a knife edge as the Construction Industry Training Board (CITB)...

Firms under attack for dodging death benefits.(Brief Article)
November 2, 2005... Some of the UK's major construction projects and leading contractors are being accused of wilfully dodging their obligation to pay death benefit to those bereaved by fatal site accidents. Bob Blackman, TGWU national secretary, told CJ: "Death...

Robertson odds-on to win [pounds sterling]60m Dundee PPP.
November 2, 2005... Robertson unofficial favourite to scoop city council's delayed eight-school contract. The Robertson Group is understood to have its nose in front in a two-horse race for a delayed [pounds sterling]60m PPP schools scheme in Scotland. A...

Products face drop in demand.(Builders' Merchants Federation )(Brief Article)
November 2, 2005... The Builders' Merchants Federation (BMF) has warned that demand for construction products will drop over the next few years. The sector suffered a 3.2% slump over the summer, which is usually a strong period. BMF managing director Jeremy...

Birse agrees on [pounds sterling]3.2m Citibank settlement.
November 2, 2005... Birse has reached a final settlement of [pounds sterling]3.2m in favour of Citibank over a London project where its near-complete contract terminated in December 2001. A three-month trial, in front of the Technology and Construction Court in...

Offsite room saves 17 months' work.(RAD Technology )(Brief Article)
November 2, 2005... Canadian fabricator RAD Technology brought an offsite radiation shielding room for hospitals to the UK last week, which the company claims will cut 17 months off traditional build. European president David Naylor told CJ the company can now fit...

Decision due soon on rolled-up holiday pay.
November 2, 2005... European Court of Justice to decide whether rolled-up pay is permissable under the WTD. Long-standing doubts over whether holiday pay entitlement may legally be rolled up as part of an inclusive hourly rate look set to be finally resolved...

Lack of government planning policy will force quarries into court action.(British Aggregates Association )(Brief Article)
November 2, 2005... Planning applications will be fought out in the courts unless the government commits to solid policies, the British Aggregates Association (BAA) warned this week. Secretary Peter Huxtable said unless the government comes out with a clear...

Two left in spotlight for [pounds sterling]32m Derby PFI scheme.
November 2, 2005... Two outfits have locked horns in the final run-in for a PFI streetlighting deal in Derby worth at least [pounds sterling]32m. Balfour Beatty and David Webster will now submit best and final offers for the city council's scheme after the council...

Wates in line to scoop [pounds sterling]40m West Mids regen.(Brief Article)
November 2, 2005... Wates looks set to scoop a slice of a [pounds sterling]2bn PPP plan to breathe new life into run-down towns in the West Midlands. Insiders say the contractor is currently odds-on favourite to land the [pounds sterling]40m Chelmsley Wood deal,...

Rock solid foundations.
November 2, 2005... When a new chief executive arrives and starts digging there is a period of uncertainty will he will stumble on buried skeletons, or will he come across buried treasure? At Costain, the new leader feels that he has struck gold. Andrew Wyllie...

EU seeks to lengthen the life of rail bridges.(European Union )(Brief Article)
November 2, 2005... A European Union (EU) backed research consortium is investigating ways to build and renovate railway bridges to cope with the increasingly fast and large trains that are running on Europe's rail network. The aim of the [pounds sterling]6.75m...

TV plea for civil engineers.
November 2, 2005... The Institution of Civil Engineers' (ICE) new president wants the essential work of civil engineers to be recognised on mainstream television. Gordon Masterton, who began his new role last week, said: "It still amazes me that the public doesn't...

Salaries are still too low, says ICES.
November 2, 2005... The Institution of Civil Engineering Surveyors (ICES) has hit back at claims in a new survey that a lack of well trained staff has "led to a sharp rise in salaries in some areas and forced firms to turn away work". The survey conclusion was...

Brighton FC get go-ahead for new Falmer stadium.
November 2, 2005... Brighton and Hove Albion FC have finally been given permission to build a 23,000-seat stadium just outside the city after a four-year wait. The Championship side first applied for permission to build the ground in 2001. Deputy prime minister...

Travel cost blitz facing T5 workers.(Brief Article)
November 2, 2005... Workers at Heathrow's Terminal 5 are set to be "blitzed" by HM Revenue and Customs (HMRC), with some said to be facing unexpected tax bills of up to [pounds sterling]3,000 in relation to travel expenses. Workers have received letters from HMRC...

CECA launches occupational health toolkit.(Civil Engineering Contractors Association )(Brief Article)
November 2, 2005... Occupational ill health is to come under the spotlight following the launch of a new health management toolkit produced by the Civil Engineering Contractors Association (CECA) in conjunction with Loughborough University. The best practice...

Roads minister angry over inaccurate costs.
November 2, 2005... Stephen Ladyman blasts construction industry for inefficient costings and high inflation on major projects. Industry and the Highways Agency (HA) have been told to shape-up during a frantic tirade by the government over increasing costs on...

JCB gives kit to earthquake relief effort in India and Pakistan.
November 2, 2005... JCB has joined the global relief effort in India and Pakistan by donating more than [pounds sterling]500,000 worth of machines. Four large 20t excavators will be used by the military in earthquake-torn Pakistan and two JCB backhoe loaders will...

Shepherd's delight at [pounds sterling]35m rise in profits.(Brief Article)
November 2, 2005... Shepherd Building Group's pre-tax profit rose to a record [pounds sterling]35m last year, with the bulk of this coming from two divisions:Portakabin and housebuilding. Group turnover moved 9% higher to [pounds sterling]660m. Portakabin's famous...

HA's [pounds sterling]5.4bn M25 DBFO up for grabs.(highway agency)(Design, Build, Finance and Operate)(Brief Article)
November 2, 2005... An OJEU notice for the Highways Agency's (HA) [pounds sterling]5.4bn, 30-year DBFO for the M25 will be published by the end of this week. The eagerly-awaited mega project comprises [pounds sterling]1.2bn of capital construction work, [pounds...

City predicts Anglo American will offload Tarmac subsidiary.(Brief Article)
November 2, 2005... Anglo American's announcement that it is planning a group-wide strategic review has been interpreted by the City to indicate that Tarmac, its [pounds sterling]1.4bn-a-year turnover construction aggregates subsidiary, is up for sale. However,...

Job losses on cards at Amec.(Brief Article)
November 2, 2005... Job losses are expected at Amec after it announced that it is merging its UK design and construction businesses into a new design and project services division. Amec said the move was in response to a "growing market demand for a combined...

Merseytram set for green light.
November 2, 2005... Laing O'Rourke's [pounds sterling]300m Merseytram scheme is expected to be given the go-ahead this Friday when Liverpool City Council (LCC) holds its cabinet meeting. The decision will end months of uncertainty over the scheme after both LCC...

Bid speculation at Mowlem as share price ups.
November 2, 2005... The upsurge in Mowlem's share price forced the construction group to announce on Monday that it has received a preliminary approach. City speculation put Vinci Construction Grands Projets division at the front of the queue, with other names in...

Accord MP JV is 'going well'.(JDM Accord Ltd., Mouchel Parkman)(Brief Article)
November 2, 2005... Accord MP, the joint venture between Accord's highways services division and Mouchel Parkman, is "going well" said Adam Shutkever. The JV is currently tendering for several schemes. At the front of the queue is the shortlisting of Accord MP...

How to.(Brief Article)
November 2, 2005... ... delegate Delegation can be one of the riskiest things we do at work as it means relinquishing control and placing your trust in another to carry out one of your tasks. Their performance is then seen as a reflection of your own. But...

Materials prices to go through the roof.(market conditions)
November 2, 2005... Suppliers reveal plans to increase materials costs to contractors by up to 10 times the current rate of inflation. Contractors will face massive hikes in materials prices from 1 January 2006 after suppliers revealed plans to bump up costs...

Multiplex cuts it fine for Wembley debut.
November 2, 2005... Pitch specialist delays the laying of turf, raising doubts over its readiness for May final. Serious questions have been raised over the completion of Multiplex's [pounds sterling]757m Wembley Stadium project in time for the FA Cup Final...

Multiplex facing Wembley 'bloodbath'.
November 2, 2005... There could be a subcontractor "bloodbath" when it comes to Multiplex putting together its final accounts with its subcontractors around February and March next year. "It is well known that Multiplex is running late and [pounds sterling]50m...

Rising star.(Brief Article)
November 2, 2005... Tom Merry, assistant design manager, Taylor Woodrow Construction What are your day-to-day responsibilities? Design co-ordination and progress reporting to the client and senior management at the Royal Festival Hall, where Taylor Woodrow...

The duty of surveyors.
November 2, 2005... In English common law, a 'tort' is a breach of a non-contractual duty for which the law provides a remedy. The term itself comes from the French language and means literally 'a wrong'. There are a number of categories of torts, the broadest of...

The disclosure of electronic information.
November 9, 2005... An increasing proportion of the communications between parties to a construction contract is passed by way of electronic documentation, particularly e-mail. It should come as no surprise therefore to learn that the legal framework within which...

Clear thinking needed on CPCS.
November 9, 2005... Sir, The quote from Trevor Gamble (CJ 19 October) at the Construction Plant-hire Association's seminar concerning the options that might be available for 51,000 CPCS red card holders was inevitable, and entirely predictable. For the vice...

Graduates: we are the future of construction.
November 9, 2005... Sir, As an undergraduate in my final year of study I found it very saddening to read the slanderous letter titled: 'Graduates have unrealistic expectations' (CJ 12 October). In an industry that has increasing demand and decreasing numbers of...

Editor's comment.(construction industry's investments in information technology services)(Brief Article)(Editorial)
November 9, 2005... The dinosaur evolves - slowly The construction industry has long been regarded as an IT dinosaur. But the results of the first Contract Journal IT survey (pages 24-27), carried out in association with software house Causeway Technologies,...

New doubts raised on self-employed status.(Employee rights)
November 9, 2005... Edinburgh tribunal re-opens debate over the definition of what constitutes a 'worker'. Fresh doubts over who may be regarded as genuinely self-employed and who can be legally defined as a 'worker' for the purposes of the Working Time...

SME homes sector gets NFB support.
November 9, 2005... The National Federation of Builders (NFB) has launched a special interest lobby group to represent the interests of the industry's small and medium-sized (SME) housebuilders. The core purpose of the Housebuilders Association (HBA), which is not...

Brandon consolidates in SW with Light Hire deal.(Brandon Hire PLC)(Brief Article)
November 9, 2005... Hirer will take on Exeter, Exmouth and Okehampton depots following [pounds sterling]500k deal. Tool and small plant hirer Brandon Hire has reinforced its market leading position in the South West with the acquisition of Light Hire for...

Unions want agreement on Olympic work.
November 9, 2005... Construction unions are in roundtable talks with a view to drawing up a new bespoke working agreement for all Olympic construction projects, which would exceed the aspirations of the Major Projects Agreement (MPA). The GMB, UCATT, TGWU and...

Debate continues on collective pay deals.(European Union on foreign construction companies)(Brief Article)
November 9, 2005... Intense criticism of European Union (EU) internal market Commissioner Charlie McCreevy's attack on collective bargaining rules in the construction sector has resulted in a partial climb-down by Commission president Jose Manuel Barroso. Barroso...

To the manor born.
November 9, 2005... Based in an old manor house in deepest Kent, Denne has the kind of office most people would dream of working in. Which is just as well, because recruitment is likely to be a pressing issue for group chief executive Stephen Kingsman in the...

back bites.(Construction workers education)(Occupational safety and health)(AMEC Engineering Ltd. acquires CIME)
November 9, 2005... Educashun, Educashun, Educashun It's good to know the training of tomorrow's construction professionals is in safe hands. Or not, judging by recent comments from a couple of readers. One told us how he had recently contacted the Royal...

HA threatens to strike off slow-paying contractors.
November 9, 2005... The HA has warned its main contractors they will be struck off its supplier lists if they fail to pay subcontractors on time, or don't engage with them better by spring next year. The move - believed to be the first of its kind by a public...

SME works package framework in development.
November 9, 2005... The HA is considering setting up a list of small- and medium-sized (SMEs) subcontractors for future works packages. The revolutionary move could see some services, previously overseen by the HA's main contractors, handed directly to...

Revenue to crack down on employment status.
November 9, 2005... Anyone in construction will be able to check their status - whether they should be paid gross or net - using an employment status indicator (ESI) being launched by HM Revenue & Customs (HMRC) within the next few weeks. It is part of HMRC's...

Local decision-making threatens road projects.
November 9, 2005... Highways Agency reveals regional assemblies have the power to shelve major schemes. The Highways Agency (HA) has admitted for the first time that it expects to lose several major regional road schemes as part of the government's drive to...

Terex raises sales by 22%.
November 9, 2005... Construction equipment manufacturer Terex Corporation has reported a sales increase of 22% to [pounds sterling]863m for the third quarter of 2005. The company also reported a net profit of [pounds sterling]30.7m for the quarter, compared to...

Construction slowly switches on to IT.
November 9, 2005... If most people thought construction was an IT dinosaur, then the first Contract Journal IT survey, carried out in association with Causeway Technologies, suggests it is slowly evolving. Four out of five companies are increasing their IT...

Overbury's green gains.
November 9, 2005... Overbury is the first fit-out firm to become carbon neutral, and is now spreading the word among its clients and the wider industry. As Helen McCormick finds out, taking steps to reduce and offset carbon emissions at the design stage can...

How to.(teamwork at workplace ensures success)(Brief Article)
November 9, 2005... ... get the most from a team-building event Team-building events are a chance to gain insight into your own behaviour and that of your colleagues. They provide a totally different backdrop to the typical office environment, and are...

Deadline near for tower assembly compliance.(Prefabricated Access Suppliers' and Manu-facturers' Association)(Brief Article)
November 9, 2005... Time is running out for owners, hirers and users of access towers to comply with the new approved methods of assembling and dismantling, the Prefabricated Access Suppliers' and Manu- facturers' Association (PASMA) has warned. The Health &...

Don't punish bad decisions, says the voice of experience.(Letter to the Editor)
November 9, 2005... Sir, As a practicing 61-year-old civil engineer, I have been making working decisions all my professional life. I accept that not all those decisions have been correct as they were made within the timescale of the circumstances and the limited...

Look at tender review process.(Letter to the Editor)
November 9, 2005... Sir, The headline on page seven (CJ 26 October) "Workers too busy to worry about site safety", was preceded on page four by "Government considers online reverse auctions". There is no chance of safety in the construction industry reaching an...

Blue Machinery unveils compact waste separator.
November 9, 2005... Recycling and materials handling equipment specialist Blue Machinery has introduced a new compact screening and separating machine. The Swedish made Brini Classifier is said to be an efficient separator of mixed waste, removing impurities and,...

Talking over coffee and croissants - no way!(Letter to the Editor)
November 9, 2005... Sir, To use the phrase of another mature grump, "I don't believe it". A well-known consultancy practice famed for its innovative resolution processes this week confirmed my worst fears. Roger Knowles stated in back bites (CJ 26 October) that...

Taylor Hi-T500 dumper turns down volume.(Taylor Construction Co.)(Brief Article)
November 9, 2005... Taylor Construction Plant has upgraded its Hi-T500 compact tracked dumper and reduced its noise levels. The company said a GRP engine cowl equipped with an acoustic liner has been added to the machine as a result of customer feedback. The cowl...

Give qualifications more recognition than cards.(Construction Plant Competence Scheme )(Brief Article)
November 9, 2005... Focus on CPCS cards rather than S/NVQ means competent workers can be turned away. The only way the current CPCS card scheme will be recognised by industry is when the S/NVQ drives the cards, and not the other way round, according to Mick...

60-second interview.(Tara Costa of Ramesys )(Brief Article)(Interview)
November 9, 2005... Tara Costa, director of business solutions, Ramesys Where did you go to school and what qualifications did you gain? I graduated from Whitney High School and won a place at San Diego State University. What made you choose construction...

Wolseley spends [pounds sterling]175m in trio of global acquisitions.
November 9, 2005... Wolseley UK has paid [pounds sterling]81m to acquire William Wilson, an independent supplier of plumbing, heating and electrical supplies. It was the first in a flurry of three deals by the [pounds sterling]11bn-a-year turnover global group....