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News & Diary
 9/5/2008
Subject: Vinci-led Consortium Wins Contract for Qatar-Bahrain Bridge
Description: Contract Valued at $3bn
A consortium led by the French construction firm Vinci signed an agreement for the design and construction of a 40-km bridge connecting Qatar and Bahrain with the company Qatar-Bahrain Causeway Foundation. The consortium comprises Vinci Construction Grands Projets and QDVC, a joint venture of Vinci (51%) and companies Qatari Diar, Hochtief and CCC. The works will take 51 months, but no commencement date has been announced.
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9/5/2008
Subject: Van Oord And Evelop Join Forces To Invest In Nort West European Wind Farm Projects.
Description: €1.5bn to Be Invested In Four Wind Farms
Van Oord and renewable energy power firm Evelop have agreed to invest up to €1.5bn in four wind farms to be built in the North Sea off the coasts of Belgium and Germany. The agreement makes provision for the construction of the turbine foundations and the electrical systems of the turbines, and builds on the relationship the companies have from jointly working on the Q7 windfarm off the Dutch coast. The €900m Belwind project will be constructed 46 km off the Belgium coast on the Bligh Bank and will involve the laying of electrical cables to the ports of Ostend and Zeebrugge.
The three German offshore windfarms projects are in the early planning phase. They each could involve up to 80 turbines to generate 240 MW-400 MW of power. They could be located 30 km-60 km from the coast, east of the North Frisian Islands.
Evelap is also involved in Scira’s Sheringham Shoal project off eastern England, which is scheduled to come online in late 2011. Norwegian firm Nexans has just won a £19m ($37.7m) contract to supply two 22 km electrical cables for the project for delivery in April 2010.
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9/5/2008
Subject: Scottish Building Standards Agency Launches Consultation on Building Regulations
Description: Consultations Issued on Fire, Safety and Noise
The main focus of the changes are related to sustainable development issues including land contamination, flooding, surface water, ventilation, condensation, solid waste storage and security, to improve life safety of people in and around buildings following the outbreak of fire, encourage innovative design and construction of buildings, promote inclusive design, and to improve assistance to the fire and rescue services, the improved performance of separating construction (supported by enhanced testing arrangements), increased scope to cover non-domestic buildings and also, internal floors and partitions to sleeping accommodation.
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9/5/2008
Subject: Adjudication Service for Home Owners
Description: Decisions to be Given in 21 Days
The RICS and the Federation of Master Builders have joined forces to establish an adjudication service for domestic home owners, who are excluded from the Construction Act Scheme. The RICS will provide a panel of adjudicators to decide issues between house holders and builders. The new scheme will begin in early June, and is a response to a recent incident, where a builder demolished an extension because he could not obtain payment from the householder.
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9/5/2008
Subject: Government Appoints Consultants to Study Barrage Plan
Description: Nine Firms Appointed
The Department for Business, Enterprise and Regulatory Reform has appointed a consortium led by engineering consultancy Parsons Brinckerhoff to study the environmental impact of a proposed tidal energy project in the Severn Estuary. The government says that the proposed Severn Tidal Project could produce up to 5% of the country’s electricity.
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2/5/2008
Subject: Quantity Surveying Services Projects Advertised
Description: This week’s OJEU Notices
The following contracts for quantity surveying or project management services have been advertised:
Queen’s University, Belfast; Haigh Colliery Mining Museum, Whitehaven; Foreign and Commonwealth Office; English Heritage in Northampton; Mount Pleasant Park; Dublin Docklands Development Authority and Anglesey County Council.
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2/5/2008
Subject: Government will Review Costly New York Projects
Description: Governor Wants Affordability Review
New York City's long list of billion-dollar building projects, from a planned new train station to the rebuilding of the World Trade Center, must be reviewed to see if they are still affordable amid a weakening economy, Governor David Paterson has said. The state has a role in approving the projects under review, both because of funding they would receive from the state, city or federal government and the state's role in agencies like the Port Authority of New York and New Jersey, which owns sites including the World Trade Center. When these projects were planned, the revenues and the bonding authority were in place, the governor now wants to be sure they still are. The state will have to close $20 billion of deficits in the next three years, said Paterson, who wants to cut $800 million from the current budget, which is only a few weeks old. Some of the projects on the list to be reviewed are: the Hudson Yards development of commercial and residential towers in west midtown Manhattan, to be built over the state's mass transit agency's rail yards, and the expansion of the nearby Jacob K. Javits Convention Center.
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2/5/2008
Subject: Glasgow Caledonian Adjudication Survey
Description: University Wants Help from Adjudicators
The Adjudication Reporting Centre (ARC) at GCAL is the only organisation who has been collecting data since Statutory Adjudication was introduced in 1998 and as such is a much relied upon source. It is now asking adjudicators to take part in its statistical survey of adjudication by completing a half hour questionnaire. If you are interested in participating, please e-mail info@cdr.uk.com The ARC are hoping as many Adjudicators as possible will respond as it is intending
to host an event in June 2008 to mark 10 years since Statutory Adjudication was introduced. The latest statistics will be launched and all those contributing will be invited to the event.
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2/5/2008
Subject: Balfour Beatty Wins Rail Systems Contract on Gotthard Base Tunnel
Description: Contract Valued at Approximately Euro 250m
Balfour Beatty has announced that, as part of the consortium, Transtec Gotthard, it has been awarded the rail systems work for the Gotthard Base Tunnel in Switzerland by AlpTransit Gotthard AG. The contract is likely to be worth approximately €250 million to Balfour Beatty.
The Transtec Gotthard consotrium comprises Balfour Beatty Rail, Atel Installationstechnik, Alcatel-Lucent and Alpine-Bau Mayreder. The entire project cost is estimated at €1 billion.The Gotthard tunnel will be the longest railway tunnel in the world and will bypass winding mountain routes to establish a direct route for high-speed passenger and heavy freight traffic.
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2/5/2008
Subject: Royal Dutch Shell to Sell Stake in Thames Estuary Wind Power Station
Description: Doubts About Project's Future
The Wall Street Journal is reporting that Royal Dutch Shell says it will sell its stake in the London Array, the planned 341-wind turbine project in the Thames Estuary. The project is a joint venture between Shell, E.On UK and Denmark’s Dong Energy A/S. A spokeswoman for Shell said that the decision was part of its ongoing review of investments, and it would divert the funds to onshore wind projects in America instead.
Whilst E.On has re-affirmed its commitment to the project, it has expressed doubts about the project’s risk. When the project was first announced in 2005, the anticipated cost was £1.5bn; this has now risen to between £2bn and £3bn.
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2/5/2008
Subject: RWE Abandons British Energy Bid
Description: All Interested Parties Must Submit A Final Acquisition Offer By May 9
German utility RWE AG has abandoned its plans for submitting a bid in the upcoming tender for nuclear operator British Energy, after its Swedish partner, Vattenfall, backed out from the deal. RWE's chances for winning the tender have thereby sunk considerably, while its CEO Juergen Grossmann has further said he does not want to get involved in a price war for the UK utility. However, the German group will seek to obtain parts of the company for sale.
British Energy has been having talks with potential investors for several weeks now. The company is considered attractive because it is to play a key role in the construction of new nuclear power plants, which the British government recently announced. The utility operates eight of Britain's ten functioning nuclear plants.
RWE filed a preliminary offer with investment bank Rothschild, like French state-run electricity group EDF and UK Centrica, among others, in order to obtain the right to examine British Energy's balance sheet. The German utility was in talks with Vattenfall for preparing a joint offer, which was to hike the company's chances to win the tender.
Vattenfall CEO Lars Goeran Josefsson, however, has been forced to withdraw from the running for British Energy under pressure from Vattenfall's owner, the Swedish state.
In the meantime, financially strong EDF has emerged as the obvious favourite in the tender.
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28/4/2008
Subject: OPEN FORUM
Description: NEW THREADS
Here are a few threads recently posted on the open forum:
Does the QSi still exist? If so, what is it doing?
Is it time to change the QS’s job title?
Are Project Managers a waste of space?
Is delay analysis rubbish in, rubbish out?
Is QS university training totally irrelevant?
Should the RICS set their own exams?
Is the Bill of Quantity still relevant?
Is it right that the QSi is launching a football?
Isn’t it time to start a Grumpy Old QS corner? There are plenty of us who remember working up in abstracting and building, the Johnny Come Lately adopted cut and shuffle.
Associated Link : www.theqsi.co.uk
25/4/2008
Subject: Court Decides Notice Effective for Section 111 of the Construction Act
Description: Attribution in Notice Sufficient
Aedas Architects argued that the withholding notices issued by Skanska were not effective notice for the purposes of s. 111 of the Housing, Grants, Construction and Regeneration Act 1996 because there was no attribution in any of them, that there was no specification of time or place and the sum often exceeded what was admittedly due. Skanska maintained that precise accuracy was not required because the notices were intended for the construction managers working on the site who were aware of the situation on site. The court found that it could not conclude that Skanska’s defence was bound to fail, and the issue could not be disposed of solely on the counter notices, and Skanska was entitled to explain why they were unable to make any financial attribution against particular terms. The court did, however, go on to say that the documents themselves were “effective” for the purposes of s.111 of the Act. In 6/59- 6/61 sufficient attribution had been made against five of the enumerated grounds. The contract demanded attribution to each ground. It did not ask for any apportionments and the court viewed this as a competent way to proceed by debiting all sums. In referring to “each ground”, the Act states that attribution “to it” must take place. In the court’s view, this was what the counter-notice had done. All the grounds which could be calculated had been and a global figure debited. .
Copyright BLISS 2008.
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25/4/2008
Subject: Court Rejects Notice to Arbitrate as Invalid
Description: Section 14(2) of the Arbitration Act 1996 Applied
A letter send by the Taylor Woodrow’s solicitors to RMD’s legal team did not make it objectively clear that Taylor Woodrow was referring the parties’ dispute to arbitration by implication or otherwise; it was requesting RMD to commence the process for the agreement of an arbitrator. It was not clear that Taylor Woodrow was referring the dispute to an arbitrator, or that it could be implied that the process of agreeing the appointment of an arbitrator had commenced. The letter could not, therefore, be construed as being effective notice for the commencement of arbitration proceedings. .
Copyright BLISS 2008.
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25/4/2008
Subject: Planning Application for £497m Extension to the Docklands Light Railway
Description: Application to be Lodged Next Week
The network will be extended from Gallions Reach in Beckton in the east of the capital to serve the proposed Barking Riverside scheme. This is flagged in the London Plan as a location for major housing and job growth.
The application will be made under the Transport and Works Act 1992 and will be submitted direct to transport secretary Ruth Kelly. A public inquiry into the plans is expected to be held this autumn, with a decision likely by next summer.
The extension aims to enable planned growth in housing and employment in the Thames Gateway sub-region by unlocking sites for development and bringing homes, jobs, businesses and facilities into the area.
It will provide links to the city centre, key employment and residential centres and interchange opportunities with the planned East London Transit services and existing rail and bus routes.
Dagenham is viewed a key location in the Thames Gateway, but has few transport links at present. It is hoped that extension will provide potential developers with the confidence to invest there.'
The third phase of consultation on the plans, which include an outline of the proposed route, began last November. Construction is not expected to begin until 2013 or 2014, with the completion date likely to be between 2017 and 2018. .
Copyright BLISS 2008.
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25/4/2008
Subject: Glasgow’s £842m New Southern Hospital to be entirely publicly funded.
Description: Government and NHS Greater Glasgow to Foot the Bill
The new hospital will provide 1,349 beds on an existing hospital site and has been designed in association with the Carbon Trust to try to ensure the sustainability of both building and transport links. .
Copyright BLISS 2008.
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25/4/2008
Subject: Acciona to Build Suspension Bridge in Poland
Description: One of the World’s Largest Suspension Bridges to be Built over the River Odra
Spanish building-to-energy group Acciona said on Thursday it had been chosen to build one of the world's largest suspension bridges, over the river Odra in Poland. It will take 30 months to build the bridge with its Polish subsidiary at a cost of 166 million euros ($264.7 million). The bridge will measure a total of 1.75 km in three parts and form part of a ring road around Wroclaw in west Poland. .
Copyright BLISS 2008.
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25/4/2008
Subject: Bradwell May Get Nuclear Power Station
Description: British Energy Seeks Residents’ Views
Although the chances of a plant being built are 10 years away, the chances of one being built in Bradwell have increased. British Energy views it as an important site, and is working with the council to understand the local issues such as housing, transport and jobs.
Copyright BLISS 2008.
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25/4/2008
Subject: German Parliament Building Design Shows How to Save the Plant without Additional Cost
Description: Erneuerbare-Energien-Gesetz (EEG) is the Centre Piece of Country’s Climate Change Programme
The German Parliament building has managed to reduce greenhouse gas emissions with additional cost by clever design. The building makes the best use of natural light and heat, and uses biofuel generators. Excess heat is stored under the building to be used during cold periods. Cold from the outside is stored in winter to cool the building as required.
Copyright BLISS 2008.
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22/4/2008
Subject: Continuing Professional Development
Description: New CPD Modules
The QSi has a number of CPD Modules now on the website. Why not log into the QSi and see what is available
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22/4/2008
Subject: Qsi Open Forum
Description: Why not log onto the open forum and comment on the latest threads.
Here are a few threads recently posted on the open forum:
Does the QSi still exist? If so, what is it doing?
Is it time to change the QS’s job title?
Are Project Managers a waste of space?
Is delay analysis rubbish in, rubbish out?
Is QS university training totally irrelevant?
Should the RICS set their own exams?
Is the Bill of Quantity still relevant?
Is it right that the QSi is launching a football?
Isn’t it time to start a Grumpy Old QS corner? There are plenty of us who remember working up in abstracting and building, the Johnny Come Lately adopted cut and shuffle.
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18/4/2008
Subject: B73bn plan to expand airport; Suvarnabhumi to keep on growing until 2013
Description: Airport Plagued With Irregularities and Operational Problems When It Opened In Late September 2006
Plans to expand the 1.5-year-old airport were raised at yesterday's meeting between Transport Minister Santi Prompat and representatives from Airports of Thailand (AoT) and the Civil Aviation Department. At least 2 projects out of the 10 proposed under the scheme will be implemented in 2008. These are the construction of the third runway and hiring of the Project Management Consultant group (PMC). The other projects which include the construction of an automated people mover, car park and a noise pollution reduction scheme will be implemented over five years. The meeting also agreed that construction of a domestic terminal at Suvarnabhumi should proceed without waiting for the second phase. Copyright BLISS, Building Law Information Subscriber Service 2008.
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18/4/2008
Subject: Mediation Documents Should Remain Confidential
Description: Applicant Sought to Use Mediation Documents in Third Party Action
Looking at previous authority and the Civil Procedure Rules, it was considered public policy to encourage parties to resolve their disputes by mediation. The court should be slow to find exceptions to the without prejudice rule. The defendant could not bring itself within exception in Muller v Linsley & Mortimer, [1996] PNLR 74 to the without prejudice rule. In Muller the plaintiffs had been in dispute with shareholders of a company. Settlement was agreed. They then claimed damages for negligence from their former solicitors. The plaintiffs asserted that the settlement had been a reasonable attempt to mitigate their loss. The defendant solicitors asserted that it was not and applied for discovery of the documents relating to it. The Court of Appeal had ordered disclosure, referring to the two justifications for the without prejudice rule i.e. public policy to encourage parties to settle disputes and implied agreement about what are commonly understood to be the consequences of negotiating on a without prejudice basis. The rationale in the Muller case was that the issue was unconnected with the veracity of anything stated in the negotiation, and, hence, fell outside the principle of public policy protecting without prejudice communications. In the present case, it appeared that that would not apply, because the truth or falsity of what was argued in the mediation would be or might be (subject to relevance) an issue in the litigation. Copyright BLISS, Building Law Information Subscriber Service 2008.
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18/4/2008
Subject: Ireland to Continue Using PPPs for Schools Despite Problems with Pilot
Description: “Lessons have been Learned”
The Irish Department of Education and Science is to press ahead with the construction of schools under the Public Private Partnership (PPP) model, despite concerns about the way in which a previous €150 million five-school pilot project was managed. Four new PPP schools have progressed to the planning stage and should be available by the end of 2008. The Public Accounts Committee was told that the school population was expected to increase significantly over the next six years. In 2004, a report by the Comptroller and Auditor General, John Purcell, found that the five schools involved in the pilot project, which are expected to cost €283 million including VAT over 25 years - or €150 million in today's money - could be provided more cheaply if the State built them. However, a review of the pilot projects has led to a new system of reporting being introduced to assess the cost of providing the schools, and to allow for deductions to be made from payments to the PPP contractor in the event of any failures.
Copyright BLISS, Building Law Information Subscriber Service 2008.
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15/4/2008
Subject: ARTICLES FOR QS EYE
Description: A new edition of the QS Eye is being prepared
Attention all Members
Please let us have your articles for the new QS Eye magazine as soon as possible
emai: suzanne cash@hartevents.co.uk
ASAP
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15/4/2008
Subject: WEBSITE UPDATE
Description: New Public Forum / Advertising available
Attention all Members
The Following amendments have been made to the QSi Website:
* New Public Forum Now Available.
* Why not advertise on the QSi website.
Associated Link : http:/theqsi.co.uk
11/4/2008
Subject: New Orleans Recovery Drive Hopes to Tap China Firms
Description: Mayor in talks with Shanghai Construction Company
The mayor of New Orleans, Ray Nagin, has been in talks with the Shanghai Construction Company to participate in the multi-billion dollar recovery of the area. Mr. Nagin also said that his city welcomed outside investors in a $1 billion expansion of its port, the eighth-largest in the United States, but he had not talked to any Chinese port operators that might be interested in the project. The city has spent $6 billion to $7 billion rebuilding after the devastation of Hurricane Katrina in August 2005, when Hurricane Katrina flooded 80% of the city. The city has secured half of the $10 billion in additional financing it needs for full restoration.
Copyright: BLISS 2008.
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11/4/2008
Subject: Olympic Delivery Authority Sets up Independent Dispute Avoidance Panel
Description: ODA Wants to Avoid Disputes to Exclude Delays on Projects
The Independent Dispute Avoidance Panel (IPA) will be the first port of call for the resolution of any disputes which may arise. The panel will have 10 members and be chaired by Dr. Martin Barnes, the author if the New Engineering Contract, which is to be used to deliver the construction programme. If the Panel fails to resolve the dispute, it will be referred to an adjudication panel of 12. After that, the Technology and Construction Court will be called upon to make a determination. The ODA is to run free training courses for contractors and subcontractors who are unfamiliar with the contract.
Copyright: BLISS 2008.
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11/4/2008
Subject: Centrica Interested in Nuclear Decommissioning Authority Sites for New Power Stations
Description: Other Companies have also Expressed Interest
Thursday was the closing date for a month-long process launched by the NDA to gauge interest from parties wishing to use its sites across the United Kingdom, as part of the government's push to build more nuclear power. An industry source said Centrica has expressed interest in the NDA sites. The UK-based energy provider is also in talks with British Energy Group Plc. about possible partnerships to develop more nuclear power in the UK, although a Centrica company spokesman said it is too early to comment on NDA discussions. The NDA owns 17 sites across the UK.
Copyright: BLISS 2008.
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11/4/2008
Subject: Cambridge University Hospitals NHS Trust issues Prior Information Notice for QS Services
Description: New Theatre Extension at Addenbrookes Hospital Proposed
Cambridge University Hospitals Foundation NHS Trust is has issued a prior information notice for a £6.6m new theatre extension at Addenbrookes Hospital. Appointment of the successful firm is planned for September 2008. Employer’s Agent services may also be required.
Copyright: BLISS 2008.
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11/4/2008
Subject: Singapore Supreme Court Rules on Recovery of Financing Charges
Description: Developer Incurred Interest on Loans Because of Delays to Hotel Development
The Singapore High Court has has concluded that financing charges incurred due to project delays can be recovered. Robertson Quay Investment’s development, the Gallery Hotel was delayed because the structural engineers failed to give the contractors the up-to-date version of the drawings. There were consequent structural problems which delayed completion of the project. Robertson claimed damages for loss of rental plus interest on loans made by shareholders. The Court found that claims for such damages was not too remote. Robertson’s project had been a commercial one, and a substantial one as evidenced by the fact that the development comprised a 10-storey hotel plus car parks and adjoining commercial units.
In the circumstances, the respondents must be imputed with the knowledge that that a delay in completion would result in RQI incurring additional interest on the loans, and such additional interest, if proved, would be recoverable under the first limb in Hadley v Baxendale (1854) 9 Ex 341; 156 ER 145. However, there had to be proof of causation. A claimant could not simply make a claim for damages without placing before the court sufficient evidence of the loss it has suffered even if it was otherwise entitled in principle to recover damages. On the other hand, where a claimant has attempted its level best to prove its loss and the evidence is cogent, the court should allow it to recover the damages claimed. This Robertson had failed to do.
Copyright: BLISS 2008.
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11/4/2008
Subject: Skanska Wins £150m London Office Contract
Description: Project Includes 14-Storey Office and Retail Space
Skanska has won a £150m to build a large office building in the city of London.. The customer is the British real estate development company Minerva The St. Botolphs project involves a new 14 storey office and retail development that will provide approximately 52,000 square metres of high quality accommodation. The building will have a characteristic design with lightly rounded corners. Preparatory work, including ground work and piling, has begun. The project is planned for completion for 2010. St. Botolphs is the second project that Skanska is currently constructing for Minerva, following the award of The Walbrook, a $296 million project, also in the city of London in 2007.
Copyright: BLISS 2008.
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4/4/2008
Subject: CDM Co-Ordinator Role Threatened by Skill Shortages
Description: Employers May Not be Able to Recruit Sufficient Staff
Employers might be unable to recruit enough suitable staff to fill the newly created CDM coordinator role. Atkins CDM team leader Andrew Stevens said the firm was having difficulty recruiting for the coordinator positions, as there aren’t enough people applying. There was also a warning that it was also likely that those undertaking the new role could be rendered impotent by clients and design teams uncommitted to health and safety. .
Copyright: Building Law Information Subscriber Service 2008.
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4/4/2008
Subject: QSs Underestimate Car Park Costs
Description: Fire Service to Seek Compensation
A report to the Notts Fire Authority's finance and resources committee says the "serious error" occurred when the costs of the tarmac surfacing for the new Hassocks Lane station were incorrectly calculated by quantity surveyors. It states: "Consequently, the contractor's tender was under priced by some £75,000 and there is no option but to proceed with the correct specifications at the true cost." The fire service will be seeking compensation from the surveyors, but it says the overall cost of the project has not been revised as there is sufficient contingency built in. The new Beeston station is due to open in late 2008 and will replace the existing Beeston and Dunkirk fire stations. It will be the first brand new fire station to be built in Notts for 20 years.
Copyright: Building Law Information Subscriber Service 2008.
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4/4/2008
Subject: Housing Minister Announces Potential Locations for Eco-Towns
Description: Locations will Go Forward to Next Stage
The Housing Minister, Caroline Flint, has announced 15 potential locations for the government’s eco town initiative, which is designed to fill the shortfall in housing. Publication of the shortlisted locations also reveals that they make significant use of previously developed brownfield land including former MoD land, military depots, disused airfields and former mining pits and industrial sites. The shortlisted locations address regional priorities such as a severe shortage of suitable housing (such as Elsenham and Ford) or the regeneration of former industrial areas (Marston Vale and New Marston).
The announcement of the shortlist of potential locations is only the first stage and they will now be consulted on with the public, local authorities and wider stakeholders. Bidders who have cleared the first hurdle will face considerably tougher tests ahead if they want to become eco-towns and will need to improve proposals still further.
Copyright: Building Law Information Subscriber Service 2008.
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4/4/2008
Subject: Baqus Looks to Expand by Acquisition
Description: Flotation on the AIM Gives Baqus a £1.8m War Chest
Baqus, the consultancy formed by the merger of Boxall Sayer, Denley King and Fletcher McNeill, says it is on the verge of another major acquisition. The company, which floated on the AIM in December 2007 says it’s goal is to increase its turnover to £20m within four years.
Copyright: Building Law Information Subscriber Service 2008.
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4/4/2008
Subject: Vinci and Hochtief Joint Venture Lays Foundation for $470m A4 Motorway
Description: Consortium Will Also Run the Motorway under a 30-yar PPP Concession
Concession operator Via Solutions Thüringen GmbH & Co.KG, a company formed on a 50/50 basis by VINCI Concessions and Hochtief PPP Solutions, has just launched the construction of the A4 motorway, linking the towns of Gotha and Eisenach in the state of Thuringia, in the presence of the German Minister for Transport. The works involve the design, construction and upgrading of a 45 km stretch of motorway. Valued at 300 million euros, this project will make a major contribution to easing congestion on one of the most important motorway routes crossing Germany from west to east. Copyright:Building Law Information Subscriber Service 2008.
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4/4/2008
Subject: Trett Consulting Bought by Grontmij
Description: Company Will Continue to Trade under Existing Brand
The European engineering consultancy, Grontmij, has announced that it has bought Trett Consulting in order to strengthen its presence in the consultancy with expertise in dispute resolution and contractual advice. Trett has 18 offices across the world with a staff of 120, adding to Grontmij’s existing workforce of 1,070.
Copyright: Building Law Information Subscriber Service 2008.
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4/4/2008
Subject: Company Cannot be a Residential Occupier under the Construction Act
Description: A “Real Person” Must Occupy the House of Flat
The Technology and Construction Court has ruled that a company cannot be a “residential occupier2 for the purposes of the Housing, Grants, Construction and Regeneration Act 1996. The claimant, a director of a development company, had challenged the adjudicator’s jurisdiction to make an award against it in connection with work undertaken on his own house and that of his father. However, it had been the company who had contracted with the builder, not the director individually, and, consequently, the adjudicator had had jurisdiction to decide on the dispute.
Copyright:Building Law Information Subscriber Service 2008.
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28/3/2008
Subject: Replacing Dublin Port Tunnel Fans to Cost Contractor €850,000
Description: National Roads Authority Says Tunnel is Safe
The turbo-jet fans used to clean the air in the Dublin Port Tunnel are being replaced at a cost of €850,000, only just over one year after they were installed. Whilst the replacement cost is being borne by the contractor, Nishimatsu Mowlem-Irishenco, it is denying liability for other alleged faults, including the €30m computer system which is failing to control the fans. The National Roads Authority has assured drivers that, despite, the problems, the tunnel is safe. Copyright: Building Law Information Subscriber Service 2008.
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28/3/2008
Subject: Cyril Sweett Buys Australian Project Management Firm
Description: Acquisition Designed to Aid Overseas Expansion
Cyril Sweett has bough Australian project management company Burns Bridge in a £5m deal. Burns Bridge has headquarters in Melbourne as well as offices in Singapore, the UAE and Fiji. The Singapore office will provide Cyril Sweett with a strategic base to grow its Asia-Pacific business. . Copyright: Building Law Information Subscriber Service 2008.
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27/3/2008
Subject: Liverpool to Spend £107m on City Roads Plan
Description: Cycle Network and Street Lighting also to be Improved
A three-year £107m programme for Liverpool’s roads looks set to get the go-ahead tomorrow. The city council's executive board is being asked to approve plans which include starting major works on the long-awaited bypass linking West Derby Street and Islington. The original plans for the bypass were thrown into doubt when plans for the building of a new Royal hospital appeared to clash with the planned route. In addition, the council be asked to give the go-ahead to the £12.5m road which will create a much improved route between the end of the M62 at Edge Lane and the centre. It is hoped that funding will be made from the the European Regional Development Fund, the Northwest Regional Development Agency and other bodies. . Copyright: Building Law Information Subscriber Service 2008.
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27/3/2008
Subject: Bovis end Lease to Impose Waste Reduction Plan on Subcontractors
Description: Targets will be included in all contracts
Bovis Lend Lease says it will incorporate waste reduction targets in all its subcontract forms with the intention of reducing the amount of waste it sends to landfill by 70% by 2010. Subcontractors will no longer be able to include waste in their bid prices. The company wants to be seen as a green firm internationally, and the cost savings will run into thousands of pounds. Copyright: Building Law Information Subscriber Service 2008.
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27/3/2008
Subject: Focus Housing Advertises for Consultancy Services
Description: Irish Housing Association Seeks Quantity Surveyors
Focus Housing Association is advertising for an architect and quantity surveyor and Project Supervisor for a Services Centre, Offices and 21 Apartments. Chartered Architect, Chartered Quantity Surveyor and Project Supervisor for the Design Process. The winners will provide full professional services to carry project forward from Planning Permission Stage through detailed design, tender documentation, competitively tendering works as per Public Procurement requirements, cost control, awarding of contract, supervision of works, handover at practical completion stage and issuing of certificates of compliance with Building Regulation and Planning Permission upon issuing of final certificate. This project will subject to the new Government Form of Contract. This is not a competition for a single integrated team. Copyright: Building Law Information Subscriber Service 2008.
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27/3/2008
Subject: Sabban Property Investments Launches Unique Internship Program in Partnership with Birmingham City University
Description: Students Will Get a One-Year Paid Internship in Qatar
Sabban Property Investments (SPI) has announced the launch of a unique internship program in partnership with UK-based Birmingham City University (BCU), which will involve students in the construction of the Sabban Towers. Six international university students vying for a one-year paid internship in Qatar will put into practice the theory of construction and planning in a 12-day training programme at the construction site, where they are expected to gain a broader understanding of the regional property development landscape. After an intensive course in the core areas of construction, real estate and planning development, the two most outstanding students will be awarded the coveted remunerated work placement and join the construction experts working on the project. This work placement programme, which we have undertaken through our partnership with Birmingham City University, is a part of SPI's Corporate Social Responsibility policy to further our involvement in the development of the education sector by nurturing talent through experience. .Copyright: Building Law Information Subscriber Service 2008.
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27/3/2008
Subject: Plans for Munich Transrapid Hit the Buffers
Description: Siemens Seeks Partners to Take the Project Forward
Germany abandoned plans to build a flagship high-speed rail link between the Bavarian capital Munich and its airport because of spiralling costs. The Transrapid, one of the world's fastest trains, was developed over the last three decades by German engineers at Siemens and ThyssenKrupp but so far the technology has been used commercially only in China. Transport Minister Wolfgang Tiefensee said that the estimated the cost of building the link would be as much as 3.4 billion euros ($5.37 billion) compared with the 1.85 billion euros originally earmarked, mainly due to the expense of building the track. Construction group Hochtief had led the consortium. Deutsche Bahn, Munich airport and the European Union were also involved, plus Siemens and ThyssenKrupp. However, Siemens’ Chief Executive Peter Loescher said that the German engineering company was in talks with various companies worldwide about possible interest in the high-speed Transrapid rail project. .Copyright: Building Law Information Subscriber Service 2008.
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27/3/2008
Subject: Centrica and GDF Consider New UK Offshore Gas Storage
Description: Plans Intended to Ensure Security of Supply
Britain’s Centrica and Gaz de France announced on Thursday that they are studying building the UK’s first offshore gas storage facility for over 25 years. Centrica, which owns the UK’s only existing offshore gas storage site, Rough, located under the North Sea, is looking at converting the Bains gas field in the East Irish Sea into a seasonal storage facility about a fifth of the size of Rough. As the UK becomes more reliant on as imports and the North Sea fields capacity declines, this is being viewed as a way of increasing the security of supply. No final decision will be taken until 2009.Copyright: Building Law Information Subscriber Service 2008.
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25/3/2008
Subject: Cyril Sweett Buys Nisbet Project Safety for £5.9m
Description: Acquisition Will Strengthen Sweet’s Regional Presence
Cyril Sweett announced Tuesday that Cyril Sweett Limited its wholly owned subsidiary has agreed to acquire the trade, assets and goodwill of Nisbet LLP, together with the entire share capital of Nisbet Project Safety Limited, for a total consideration of Nisbet Project Safety £5.9 million. Nisbet has 12 Partners and 78 staff providing quantity surveying, project management and health and safety services. Nisbet's offices are located in the Midlands, London, the South and South-West of England, hence the acquisition will further strengthen Cyril Sweett's existing diverse regional office network in the U.K.
Nisbet has an impressive track record on fee income and profits growth, and its strong order book provides high visibility of earnings. Nisbet leverages its reputation to win work through referrals and grow its contracted order book. Commenting on the acquisition, Dean Webster, Chief Executive Officer, Cyril Sweett Group said: "We have always had a very high regard for Nisbet, particularly the quality of its people, the quality of the work they do and the range of clients they serve. We are therefore delighted to welcome Nisbet's experienced management team and employees to the Group. The quality of Nisbet's team is reflected in the strong track record of project wins, repeat work and referrals.
Copyright: Building Law Information Subscriber Service 2008.
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25/3/2008
Subject: Currie & Brown in £20m Middle East Expansion
Description: C&B Wins Major Infrastructure Project for Abu Dhabi Formula One Grand Prix.
The Middle East is experiencing a massive construction boom. InterContinental hotels group, the world's biggest hotel company by number of rooms, has already said it will build several hotels under its brands in Abu Dhabi close to the race track.
Andrew Loudon, Currie & Brown's executive director and director for Scotland, said that he expects to grow the business in the Middle East by 15 per cent next year. He said: "It's a massive contract for us. We have been appointed by the Abu Dhabi-based real estate developer Aldar, to provide cost management services for the development of seven 'race-day' hotels overlooking the circuit.
"We are one of the few firms in the region with the scale and track record to take on a project of this size. The world will be watching us as we count down to next year so we have to make sure we come in on time and budget."
Loudon said that he had set up a 16-strong office in the region to oversee the planning and management of the two-year contract at Yas Island, which is one of Abu Dhabi's largest natural islands and is expected to become a world-class shopping and leisure destination, with more than 300,000 square metres of retail development planned.
As well as hosting the Grand Prix in 2009, Yas Island will host the world's first Ferrari World, including a Ferrari-themed park, museum and theatre.
Copyright: Building Law Information Subscriber Service 2008.
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25/3/2008
Subject: Belgian Wind Farm Gets Go-Ahead
Description: Farm Will have 66 Turbines
Evelop Belgium has received construction and operating permits for the 330-MW, $850 million-plus Belwind offshore wind farm, the company said February 20. The wind farm is to be built 46-km offshore on Bligh Bank. The park will be built at a sea depth of 20-35 metres and the turbines will be installed over a 35-km sq area. The application was based on 66 turbines of 5 MW each.
Evelop has a development portfolio of more than 6,000 MW and is part of Econcern. In December 2007 one of Evelop's biggest projects, the Dutch offshore wind farm Q7 (120 MW), started delivering power for the first time. Off the eastern English coast – in the British 12-mile zone – Evelop is developing a 315-MW Sheringham Shoal wind farm with StatoilHydro (via 50/50 joint venture Scira Offshore Energy Ltd), with full approvals and financial agreement planned for 2008/2009. In Germany, Evelop is developing the 'Gode Wind I' project, in cooperation with Plambeck Neue Energien.
Belwind is one of three major offshore wind projects off the Belgian coast. C-Power began construction of the first phase of its 300-MW project last year, while Eldepasco obtained its offshore concession for a site 35-km offshore in June 2006 and is waiting for operating and construction permits. Eldepasco was formally set up as a company in December 2007. It is a joint venture of Aspiravi, Depret, Colruyt and Electrawinds. Its project envisages around 30 5-MW turbines.
Copyright: Building Law Information Subscriber Service 2008.
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25/3/2008
Subject: Sheffield’s Roads Get £663.8m Private Finance Initiative improvement Package.
Description: Funding Will Allow Improvements and Upgrades over Next 25 Years
The Sheffield scheme consists of approximately 1,950 kilometres of road made up of principal roads, non-principal roads and unclassified roads as well as 69,000 street lights. Sheffield City Council will now draw up an Outline Business Case with work scheduled to start in 2011
Copyright: Building Law Information Subscriber Service 2008.
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25/3/2008
Subject: Government Proposes Changes to Building Regulations
Description: Consultation Paper Published
The way in which the Building Regulations will be updated will be revolutionised if the proposals contained in a Department for Communities and Local Government consultation paper are adopted. Some of the changes will be:
The Regulations will be revised on fixed dates at three-yearly intervals;
Changes can be made outside the time framework in exceptional circumstances;
Statutory inspection stages will be abolished;
Councils' building control departments will not be scrapped;
Local authorities will be empowered to stop dangerous jobs.
Copyright: Building Law Information Subscriber Service 2008.
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25/3/2008
Subject: Paris Airport's Terminal 2E Re-Opens
Description: First passengers Will Use Terminal on 30 March
Four years after its roof caved in, killing four people, the boarding area at Paris airport's terminal 2E is reopening following a 150 million euro ($232 million) rebuilding project. A 30-metre section of the original concrete roof collapsed in May 2004, just 11 months after 2E was opened. French judges are still trying to find out what caused the accident. The redesigned building preserves the original elliptical or squashed cylinder shape pioneered by Andreu, but has been redesigned from the main floor upwards to bring in more light. The rebuild is seen as a why of challenging Heathrow’s status as Europe’s leading passenger hub.
Copyright: Building Law Information Subscriber Service 2008.
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25/3/2008
Subject: Serco Wins £400m Middle East Contract
Description: British Company will Operate and Maintain Urban Railway System
British support services firm Serco Group won a contract to operate and maintain the first two lines of Dubai's urban railway system, Dubai's Roads & Transport Authority said on Tuesday. Serco announced in June that it ha been selected as preferred bidder for the £400m contract, which will run for 10 years.
Dubai's first metro line is due to open next year and the second in 2010, with the two lines covering 76 kilometres (47.22 miles) and expected to carry 200 million passengers per year.
Copyright: Building Law Information Subscriber Service 2008.
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13/3/2008
Subject: Specialist Contractors Suffer from Payment Delays
Description: No Improvement in Payment Times
The latest National Specialist Contractors Council figures reveal that over a third of specialist subcontractors are having to wait between 60 and 90 days for payment, as house builders and main contractors hang onto cash for as long as possible.
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13/3/2008
Subject: Interserve Beats Expectations
Description: Preferred Bidder for Major Contracts
Interserve PLC posted a 26.3% increase in its full-year headline profit, beating analysts' expectations, and said it has won contracts in the UK and the Middle East with a combined value of more than £200m. The services, maintenance and building group said for the year to Dec 31, 2007, its pretax profit before one-off items and amortisation rose to £73.4m from £58.1m last year. Revenue grew 23.4% to £1.74bn from £1.41bn the previous year, while pretax profit surged to £69.3m from £15.1m a year ago. The company is recommending an increased final dividend of 11.2 pence, bringing the total dividend for the year to 16.2 pence, up 5.2% from 15.4 pence in 2006. Interserve said it has been chosen as the preferred bidder on a five-year contract with the Home Office, worth over £100m and which can be extended for an additional two years, for the provision of facilities management services throughout the UK. It has also secured a spot with three other companies on the Home Office's Fit-Out and Refurbishment framework agreement, with an overall potential value of £200m. The company also said its United Arab Emirates associate company has won a £120m contract, of which Interserve's share is worth £60m to build the infrastructure for the Al Furjan development in Dubai.
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13/3/2008
Subject: Coventry Masterplan Gets Under Way
Description: Public Consultation Launched
International architects The Jerde Partnership have signed an agreement with a partnership of Coventry City Council and property owners Modus, Morley and Coventry Urban Regeneration Ltd after winning an international competition for the re-design of Coventry City Centre. The masterplan will look at ways of linking the city centre together, encouraging local and individual retailers, as well as possible large scale demolition which will see a major transformation of the central core of the city. The partnership has already launched a major consultation with local people which will be used by Jerde in its work.
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13/3/2008
Subject: Wembley Trial Looks Set to be Extended
Description: Multiplex Accuses Mott Macdonald of Breaches of Contract
Multiplex, Cleveland Bridge and the trial judge all predict the second trial in their long-running will be extended beyond the scheduled eight weeks. Mr. Justice Jackson has admitted that it will be difficult to assess the final sums due to each. In a separate development, Multiplex, is preparing the biggest ever UK construction claim against structural engineers Mott MacDonald, alleging many breaches of contract. It has sent Mott MacDonald a 400 page pre-action protocol letter of claim, seeking payment of nearly £253m. The contractor claims that Mott MacDonald was responsible for the delay of nearly two years on the project.
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13/3/2008
Subject: $1.68 Billion Power Plant Contract Signed
Description: One of Two Million Dollar Contracts Signed
Germany's Siemens, South Korea's Doosan, and France's Alstom have signed a $1.68 bullion contract for the construction of the M-Station in Dubai's Jebel Ali area. The M-Station will comprise six Siemens gas turbines, six Doosan heat recovery steam generators, and three Alstom steam turbines, producing approximately 2,000MW upon completion in June 2010. Its desalination capacity will be 17.5 million gallons of water per day. A US$222-million contract was also signed for the construction of two 400/132-kV substations in Barsha and Nad al-Sheba, due to be completed by late 2009, while an 400/132-kV transformer station in Techno Park will supply the industrial zone, Dubai Industrial City, Jebel Ali, and Airport City with electricity from February 2010.
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13/3/2008
Subject: Metronet Allegations of Fraudulent Contract Awards
Description: Subcontractor not Qualified for the Work
The Evening Standard is reporting that Ed Maloney, a senior Metronet manager involved in awarding the electrical, fire alarm and refurbishment contracts to Lanes Group, has a private business relationship with Bruce Crompton, a main board director of Lanes. Lanes is not registered with any of the electrical certification bodies. Mr. Maloney instructed his quantity surveyor to place the contracts with Lanes, which trades principally as drain cleaners. The matter is now under investigation by the British Transport Police.
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13/3/2008
Subject: Singapore Could Announce Cruise Terminal Winner Next Month
Description: Project to be Completed by 2010
The International Cruise Terminal at Marina South will soon start taking shape. The Singapore Tourism Board (STB) could reveal by next month exactly who has been awarded the tender for engineering work on the terminal and who will be in charge of architectural design.
Engineering proposals were submitted by Jurong Consultants, Surbana Corporation, Maunsell & Partners and Parsons Brinckerhoff, the STB said. Meanwhile, three consortia comprising BEA International and CPG Consultants; Bermello Ajamil and RSP Architects and Engineers; and DMJM Design and DP Architects had put forward proposals for architectural design. Each consortia tied a Singapore firm with 'an internationally renowned firm with notable cruise terminal planning experience', said STB. A firm completion date of 2010 has been announced.
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7/3/2008
Subject: Balfour Beatty Plans Greater Growth in the USA
Description: Better Market than the Middle East
Announcing pre-tax profits of £201m, Balfour Beatty says that it is planning a growth in turnover in the USA from 25% to 40%. The contractor said that the US market was better suited to its model is better suited to the more mature steady market in America. It also announced four contract wins worth £607m there.
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7/3/2008
Subject: Rok Aims to Double Turnover in the North East
Description: Purchase of S. Harrison Puts Contractor on Track
Rok is aiming for significant growth in the North East and is hoping to almost double its £59m turnover in the region by next year. The firm's North East operations, which employs 278 workers at a site in the Walkergate area of Newcastle, saw its turnover grow from £47m to £59m last year and is confident it can hit £109m by 2009. The impressive predictions follow the purchase of the construction arm of the S. Harrison group in North Yorkshire last September, which increased Rok's total North East workforce to 358.
Exeter-based Rok is also confident that its current projects in the North East will help it hit its targets, including the £7.8m refurbishment of the Waygood arts venue in Newcastle city centre and the £1.6m transformation of a visitors centre in Sedgefield's Hardwick Park. Mitchell Smith, regional director at Rok in the North East, said: "By the time we reach 2009, it will be more than a year since we bought part of S Harrison and this will show in the dramatic increase in our turnover. We also have a number of exciting projects that we are currently working on that will ensure we continue this growth and that we are protected from the credit crunch."
Rok's turnover figures for the region reflect its wider performance in the UK, with yesterday's company results showing a record turnover for 2007 of just over £950m, up from £689m in the previous year. Operating profit was also up from £25.3m to just over £34m, while the company's order book was up 17% at £610m.
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7/3/2008
Subject: Taylor Wimpey Declares Loss
Description: Loss of £19.5m in 2007, Compared with £406m Profit in 2006
The disastrous state of the US property market has been partly blamed as Taylor Wimpey had to write down the value of its land bank and building projects by £283m. The company sold 25% fewer homes in America last year. Taylor Wimpey's chief executive said he still believed the US would be an important market for the company in the longer term; nevertheless, the company has halved its exposure to the region, which now represents 15%of its land bank. The company was also affected by the declining fortunes of its Spanish business, where profits fell by two-thirds to just under £8m, as expatriate demand for new homes slowed. The company also wrote down the value of its Spanish projects by around £6m. Performance in the UK was better, despite a slowdown in the housing market during the second half of the year. While the number of completed sales for the year was down 6 per cent on 2006, the company increased profits on its UK business by 14 per cent to £608.5m, thanks to improved margins.
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7/3/2008
Subject: Oxford-Milton Keynes Rail Link Back on Track
Description: Work Could Begin in 2009
Work on a rail link between Oxford and Milton Keynes could begin next year, with a new study signalling the start of detailed construction planning. The link holds out the promise of 12-minute train journey times between Oxford and Bicester and 35-minute trips between Oxford and Milton Keynes.
The consortium behind the plan says the scheme linking Oxford to Milton Keynes, Bedford and Aylesbury is on track to become operational by 2012. But the estimated cost of the scheme, originally put at £130m, has risen to £190m, going to £228m if a spur to Aylesbury is included.
A new report commissioned by the East West Rail Consortium, made up of councils and development agencies, has backed the case for a new network of railway lines and train services. It means the long-awaited project now goes on to the 'stage four phase', which will involve producing detailed construction and operations management plans and rail infrastructure designs. This investigation will cost £2m and continue until the end of the year.
Adrian Saunders, Oxfordshire County Council's rail development officer, said: "The work will focus on looking at the condition of existing track, disused embankments and bridges. Effectively it will be a full engineering assessment looking at the whole route, and the need for upgrading or rebuilding. At its conclusion, the scheme will be ready to go to tender for implementation. There is a lot of support coming from the Department of Transport and Network Rail to get this project moving. Construction work could start by the end of 2009. Momentum is building rapidly." Rail experts will also focus on stations along the route, to see if improvement work is needed or new stations required.
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7/3/2008
Subject: Liverpool University Advertises QS Contract
Description: New Laboratory to be Built
The University of Liverpool has issued an OJEU Notice seeking quantity surveying services in connection with the construction of a new £12m laboratory suite to be completed by 2010.
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7/3/2008
Subject: Watkins v Jones Maidment Wilson (A Firm); 4 March 2008
Description: Claim for Negligent Advice Statute-Barred
In 1997, the claimants instructed the defendant solicitors to act for them in connection with the acquisition of a site in Rochdale, upon which they wished to build a house. The claimants alleged that the defendants gave them negligent advice leading to the execution of a building agreement on 3 April 1998 negligent advice leading to the loss of rights under clause 21 (ii) of that agreement, which on one view of the facts if given was given before 26 August 1998.
Any cause of action in respect of that advice accrued before 26 August 1998 and, hence, became statute-barred prior to 26 August 2004 when the present proceedings were issued. The claimants sought to circumvent this fundamental problem by relying upon principles established in two recent decisions of the House of Lords, namely Law Society v Sephton, [2006] 2 AC 543 and Nykredit Mortgage Bank plc v Edward Erdman Group Ltd. (No. 2), [1997] AC 1627. The claimants maintained that under these authorities the loss had been contingent only and, hence, the limitation period did not start to run until the contingency matured, which was after 26 August 1998 (“the Sephton argument”)
Had the advice not been negligent, the claimants would have had the chance of negotiating a better agreement. That chance was an asset with a measurable value. Its absence meant that there was an immediate loss. It was not possible to say that there were two causes of action in law: one which accrued immediately the contract was entered into and was accepted to be statute-barred, and another residual claim for the loss of a chance. The alleged negligent advice led to the claimants entering into the transaction. The cause of action was then complete. Even if the advice should have included advice to renegotiate the agreement, it had been same event which constituted the breach of duty. The claim for damages for loss of the chance of renegotiation was merely an alternative or additional head of loss.
The fact that clause 21(ii) could not be used before August 31, 1998 and could only be used if the builder failed to complete by that date did not mean that it did not have a value before that date. Although its value depended on a number of factors including the likelihood of the claimants being able to exercise it after August 31, 1998, it had a value before that date.
When the claimants entered into the building agreement they acquired a number of rights. On the claimants’ case those rights were of a lesser value than they had been led to believe that it would be. Those rights were an asset capable of valuation. The claimants had suffered measurable loss when they acted on the allegedly negligent advice to enter into the later transaction; hence, that claim was statute-barred.
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7/3/2008
Subject: Barratt Invoice Adjudication Decision Triggers More Claims
Description: Subcontractors Flock to Consultant
Following the news that Southampton Glass successfully managed to recover invoice deductions made by Barratt, trade subcontractors are flocking to the dispute resolution company which managed to recover the money. There has been much concern in the industry about main contractors' unilateral deduction from invoices.
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4/3/2008
Subject: Driver Goup Acquires Commercial Management Consultants
Description: Acquisition increases staff by 45
The Driver Group plc has acquired a 100% of the share capital in Commercial Management Consultants Ltd, a provider of project commercial services such as site based quantity surveying and planning to the UK construction industry.
CMC was established in 1979 and has an excellent reputation working ostensibly for the contractor fraternity on rail, utilities, highways, building, water, airports and marine projects through its network of offices in London, Manchester and Glasgow. The company, which provides specialist dispute resolution services in the construction industry, expects the acquisition to be earnings enhancing in the first full year of ownership.
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29/2/2008
Subject: Olympics Will Fuel Work Boom
Description: ConstructionSkills Network Report Says There Will be a Rush to Finish Projects
A report from the ConstructionSkills Network says that although work for the London 2012 Olympics will only account for 0.5% of the country’s construction work, the immoveability of its deadline will concentrate activity on other projects between now and 2013. Some contracts, such as the widening of the M25, will be suspended to ensure that visitors to the Games are not disrupted. The report also forecasts that employment levels will need to increase by 7% to deliver all the projects between now and 2012. .
Copyright: Building Law Information Subscriber Service Books 2008.
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29/2/2008
Subject: Court Rules on Separability of Adjudicator’s Decision
Description: A Breach of Natural Justice May not Render an Entire Decision Unenforceable
Mr. Justice Akenhead has ruled set out principles to be applied where there are allegations of a breach of natural justice by an adjudicator:
"(a) It must first be established that the Adjudicator failed to apply the rules of natural justice;
"(b) Any breach of the rules must be more than peripheral; they must be material breaches;
"(c) Breaches of the rules will be material in cases where the adjudicator has failed to bring to the attention of the parties a point or issue which they ought to be given the opportunity to comment upon if it is one which is either decisive or of considerable potential importance to the outcome of the resolution of the dispute and is not peripheral or irrelevant.
"(d) Whether the issue is decisive or of considerable potential importance or is peripheral or irrelevant obviously involves a question of degree which must be assessed by any judge in a case such as this.
"(e) It is only if the adjudicator goes off on a frolic of his own, that is wishing to decide a case upon a factual or legal basis which has not been argued or put forward by either side, without giving the parties an opportunity to comment or, where relevant put in further evidence, that the type of breach of the rules of natural justice with which the case of Balfour Beatty Construction Company Ltd. v The Camden Borough of Lambeth, [2002] 16 BLISS 1, was concerned comes into play . It follows that, if either party has argued a particular point and the other party does not come back on the point, there is no breach of the rules of natural justice in relation thereto."
The first step must be to see if one or more disputes have been referred. If it is more than one dispute, there should be no objection by the other party, or the referral of multiple disputes should be permitted by the contract. If a decision properly addresses more than one dispute or difference, a successful jurisdictional challenge on that part of the decision which deals with one such dispute or difference will not undermine the validity and enforceability of that part of the decision which deals with the other. This same logic must apply where there has been a breach of the rules of natural justice which affects only one dispute or difference unless the decision, as drafted, is simply not capable of severability.
Copyright: Building Law Information Subscriber Service Books 2008.
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29/2/2008
Subject: Contractor’s Discount Bid Defeated
Description: Barratt Southampton Ordered to Repay Withheld Discount
An adjudicator has ordered Barratt Southampton to repay a 3% deduction in a glazing subcontractor's invoice which was "improperly withheld". The adjudicator found that there was no contractual basis for the discounts which had been made and ordered the repayment plus interest. The subcontractor, Southern Glass Services (SGS), has received a letter from Barratt notifying it that discounts would be deducted and waited until practical completion before commencing the adjudication. Barratt's allegation that SGS had accepted the situation by its silence was rejected. The ruling seems likely to spawn claims from other subcontractors who have received similar letters from main contractors.
Copyright: Building Law Information Subscriber Service Books 2008.
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29/2/2008
Subject: RLF Appointed as Learning and Skills Council QS
Description: RLF will be Part of £1.6bn Consultants’ Framework
The Learning and Skills Council (LSC) has appointed property and construction consultancy RLF to provide quantity surveying services for all three English regions on its £1.6 billion consultants' framework.
Either six or seven consultants have been appointed in each of the three LSC regions - the Midlands, South and North - with RLF being one of just three consultants appointed to cover all regions. Tenders for the four-year framework were invited in July 2007 following a thorough prequalification assessment process which began in May last year.
The RLF submission to provide quantity surveying services was led by Paul Anderson, partner at RLF in Birmingham, who heads up the practice's education division. The appointment will be primarily managed by RLF's Further Education (FE) team based in Birmingham.
RLF already has a strong track-record in the education sector, providing quantity surveying services for FE projects as far afield as Brighton and Hartlepool. The practice is also involved in a number of Higher Education projects across the country, as well as a major Schools for the Future project in the East Midlands. .
Copyright: Building Law Information Subscriber Service Books 2008.
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29/2/2008
Subject: Cyril Sweett Group Buys Remaining Stake In JV
Description: Sweett Makes First Acquisition since IPO
Cyril Sweett announced the acquisition on Thursday that it has acquired the remaining 50% of the issued share capital of Jones Sweett International Limited ("Jones Sweett"), its joint venture company, which operates primarily in the United Arab Emirates ("UAE").
This is the first acquisition made by Cyril Sweett Group plc since its IPO in October 2007 and is in line with the Group's stated growth strategy which is focused on continued organic growth, supplemented by carefully selected acquisitions both in the U.K. and internationally. Cyril Sweett was the first quantity surveyor consultancy to list on the AIM market in order to have significant first mover advantage and become a consolidator in a highly fragmented market.
As a result of the acquisition, the Joint Venture Agreement with D G Jones and Partners (Middle East) Limited will end, but it is planned that the relationship between the companies will continue as an Alliance Partnership. Upon completion, Jones Sweett International Limited has changed its name to Cyril Sweett International Limited.
Copyright: Building Law Information Subscriber Service Books 2008.
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22/2/2008
Subject: Top Quantity Surveying Firms Removed from LSC Frameworks
Description: Learning and Skills Council Omits Several Key Players
The Learning and Skills Council (LSC) has omitted a number of top quantity surveying firms from its £1.2bn education framework. The companies may also be replaced on existing contracts. E.C. Harris, Gardiner and Theobald and Drivers Jonas will not be part of the framework deals when they are announced at the end of the month. Although the firms will not be replaced immediately on their existing contracts, clients are expected to come under pressure to do so when a “natural break in the project occurs”. A number of architectural practices are also believed to have been left out. Colleges which fail to follow the LSC guidelines may not receive funding.
Copyright: Building Law Information Subscriber Service 2008.
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22/2/2008
Subject: Laing O’Rourke to Cut Supply Chain
Description: 75% of Suppliers and Subcontractors to Go
Laing O’Rourke has announced that it is to prune its supply chain to fewer than 500; that is a reduction of 75% of the current number. The company’s procurement director says that it wants to form stronger collaborative relationships with fewer subcontractors and suppliers. The contractor is the latest to address its supply chain in an attempt to decrease costs under current financial strictures.
Copyright: Building Law Information Subscriber Service 2008.
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22/2/2008
Subject: Draft Guidance on Nuclear Clean-Up Funds
Description: Plans Intended to Protect Taxpayer from Decommissioning Costs
New nuclear power developers in the UK will be required by law to set up a fund to cover the cost of eventual decommissioning before any bricks are laid at new nuclear stations. Under draft guidance published today, the UK department for business enterprise and regulatory reform said that companies building new nuclear power stations would have to set out detailed plans for financing the full cost of decommissioning before construction begins. The scheme, which business secretary John Hutton hopes to make law, aims to shelter the taxpayer against any eventual cost of dealing with nuclear waste and the dismantling of stations further down the line. The Energy Bill and the guidance published today make clear that companies are liable by law to meet their full costs. The government intends to produce an estimate on the cost of decommissioning later this year.
The government gave its go ahead for the building of more nuclear power stations in the UK under its white paper released in January. British Energy, the UK's leading nuclear provider, is currently in talks with a number of potential partners to jointly develop more reactors. It is expected to make an announcement by around the end of March.
Copyright: Building Law Information Subscriber Service 2008.
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22/2/2008
Subject: Centrica Plans £3bn Nuclear Power Investment
Description: Alternative Energy Sources to be Explored
The Chief Executive of Centrica, which owns British Gas, says that it intends to invest £3bn in nuclear power as part of an annual £1bn investment programme to develop alternative energy sources. This will also include wind power, clean coal power and photovoltaic power. Despite making a 40% increase in profits, in the long term, high gas prices are squeezing profit margins.
Copyright: Building Law Information Subscriber Service 2008.
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22/2/2008
Subject: House of Lords Rules that Award of an Extension of Time Cannot be of Retrospective Effect
Description: Court of Appeal Decision in Reinwood upheld
The effect of an extension of time awarded in January 2006 was not to cancel the December non-completion certificate retrospectively; by making any payment before the January extension was granted, the employer had been entitled to rely upon that certificate, unless the provisions under which the payment was made provided otherwise. Not only would neither party be able to rely upon a valid withholding notice as conclusively determining their rights and obligations with regard to payment on an interim certificate, neither of them would be ably to even rely upon an actual payment, which had been correct at the time, as being effective. This would be unfair on the employer; he would have underpaid because of an event which had occurred after he had paid.
Copyright: Building Law Information Subscriber Service 2008.
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22/2/2008
Subject: Quantity Surveyors Wanted for Salford Media City
Description: Project to be Ready for 2011
The University of Salford is advertising for quantity surveyors to give independent cost advice for the fitting out of a new building at Media City in Salford. The building is to be ready for the new academic year in 2011. The fees are estimated to be between £15m and £20m.
Copyright: Building Law Information Subscriber Service 2008.
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14/2/2008
Subject: JCT 2005 Management Contracts Published
Description: Suite Includes Collateral Warranties
The Joint Contracts Tribunal has finally published the 2005 versions of the Management suite of contracts. The suite includes the conditions, works contract conditions and agreement, plus collateral warranties.
QSI Members can get a 10% discount on these contracts by calling BLISS Books on 01565 777234.
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14/2/2008
Subject: Bouygues States its Interest in Buying a UK Contractor
Description: French Contractor Wants UK Network
Anticipating a turnover of £1bn in the UK within two years, French contractor Bouygues has admitted that it is looking for acquisitions. Although Bouygues has been working in the UK for 10 years, it has been somewhat on the periphery. However, this changed in December when it bought Warings. Now it says it is looking for a high profile acquisition. Bouygues says the UK market is an active one, particularly in the Midlands, and wants a network of companies to work outside London.
Copyright: BLISS, Building Law Information Subscriber Service, 2008.
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14/2/2008
Subject: ABI Warns Many New Homes May Be Ineligible for Flood Insurance
Description: Government Ignores Flooding Advice
The Association of British Insurers is warning that many new homes may be ineligible for flood insurance unless the government tightens up planning controls governing where they are built. In a statement, the ABI said 13 developments were given planning approval last year despite flood risk advice from the Environment Agency. Altogether, a third of the 3 million new homes the government plans to be built by 2020 could be vulnerable to flooding. Whilst insurers want to provide cover, they have been badly hit over the last few years, paying out £3 billion last year alone.
Copyright: BLISS, Building Law Information Subscriber Service, 2008.
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14/2/2008
Subject: Court Rejects Cleveland Bridge Amendments
Description: Amendments Would Affect Court Date
A Technology and Construction Court judge has rejected an application by Cleveland Bridge to amend its statement of claim in its ongoing dispute with Multiplex. The amendments related to the method of valuing the steel bowl at the Wembley Stadium and would have significantly increased Cleveland Bridge’s claim. Mr. Justice Jackson said that he had to bear the overriding principle contain in CPR 1.1, and made comment upon the length of the dispute and the disproportionate amount of costs which had already been incurred. If the amendment were allowed, the trial date would be threatened and Multiplex would suffer substantial injustice as the amendment would affect both expert and factual evidence. Given the circumstances, the judge declined to allow the amendment.
Copyright: BLISS, Building Law Information Subscriber Service, 2008.
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14/2/2008
Subject: South Bank Building Falls Victim to Economic “Nervousness”
Description: Credit Crunch Affects Project
A building designed for the South Bank by Zaha Hadid has been abandoned due to fears over the current economic climate and credit squeeze. The £5 million HQ for the Architecture Foundation was have provided exhibition and event spaces and offices for the Foundation and was due for completion in July next year. However, the Foundation was unable to guarantee enough money from donors to cover costs.
Copyright: BLISS, Building Law Information Subscriber Service, 2008.
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14/2/2008
Subject: Capita Symonds Wins 15-Year Framework
Description: 15 Year Craigmillar Regeneration
Capita Symonds has won a QS consultant framework with Edinburgh Council and the EDI Group, which together have formed the Craigmillar Joint Venture Company to enable the regeneration of Craigmillar over a 15-year period. Capita will primarily undertake housing projects, but potentially their contract could also offices/retail and some public buildings, for the next stage of the development.
Copyright: BLISS, Building Law Information Subscriber Service, 2008.
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14/2/2008
Subject: First Quantity Surveyor Joins Green Register
Description: Sustainability
Cheltenham-based Jeremy Moore Associates (JMA) is to become the first quantity surveyor in Gloucestershire to join the Green Register of Construction Professionals. JMA has decided to join the national training and networking organisation to build knowledge and keep pace with modern construction methods, affecting environmental sustainability and energy efficiency. Key team members will attend sustainable buildings and services courses, in partnership with the green register organisation.
Copyright: BLISS, Building Law Information Subscriber Service, 2008.
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11/2/2008
Subject: AICA Conference 2008
Description: Association of Independent Construction Adjudicators Annual Conference
The AICA Conference 2008 will be held at the Chamber of Shipping London EC1M 6EZ on 17 April 2008. The Keynote Speaker will be Rt Hon Sir Anthony Evans. Other presentations include the Pyschology of Dispute Resolution, Unethical Behaviour and Criminal Acts and a Case Law Update.
Associated Link : www.\aica-adjudication.co.uk
11/2/2008
Subject: 8th Annual DRBF International Conference
Description: Join the Dispute Resolution Board Foundation for its Annual International Conference in Cape Town
The DRBF Conference is being held from 2-4 May in Cape Town, South Africa. The programme will cover an overview of the Dispute Board process, the Multilateral Development Banks' persepctive, practical experience in both Francophone and Anglophone Africa, and interactive sessions designed to explore the application of Dispute Boards. Spread over 3 days, the agenda is designed to allow free time in the afternoons to explore the unique attractions in the surrounding region.
Associated Link : guest.cvent.com/i.aspx?1Q,P1,4FE35F98-8B7C-4CE8-ADFB-5552E5CB81A1
7/2/2008
Subject: Scottish Agricultural College Advertises Framework Contract
Description: Four Year Framework Contract put out to Tender
The Scottish Agricultural College intend to set up a panel of up to 3 consultancies under a framework agreement. Each consultancy on the panel will be required to provide Building Surveying, Quantity Surveying and CDM Co-ordinator services on a call off basis over a 4-year period. Consortia and grouped bids will be considered, but one of the applicants will be required to take the lead role.
Copyright: BLISS, Building Law Information Subscriber Service 2008.
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7/2/2008
Subject: Crossrail Design Contracts May Be Re-tendered
Description: Contractors Reject Design and Build
A source at the Crossrail Project has said that the contracts for Crossrail could still be re-tendered before construction begins. Contracts are having to be re-scoped after contractors rejected design and build procurement, and there is till time to re-let the Multi Disciplinary Design Consultants (MDCs) for designing Crossrail. These are currently held by Mott MacDonald, Halcrow, Scott Wilson and an Arup/ Atkins joint venture. Crossrail could also be extended to Reading instead of Maidenead.
Copyright: BLISS, Building Law Information Subscriber Service 2008.
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7/2/2008
Subject: Highways Agency Spending Review will Cut Road Projects
Description: Agency Underestimates Costs
It seems inevitable that a number of road projects will be axed after the Highways Agency admitted that it had underestimated the costs of some of the schemes by as much as 40%. Contractors are fuming as many of them had put in a great deal of effort on Early Contractor Involvement schemes, which now seems will have been to no avail. One example of the cutbacks is the M1 widening between junctions 21 and 30. This has no been reduced to junctions 25 to 28.
Copyright: BLISS, Building Law Information Subscriber Service 2008.
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7/2/2008
Subject: New Building Schools for the Future Procurement Aims to reduce Costs and Time
Description: Only Two Bidders will be Selected
New procurement rules for Building Schools for the Future to be introduced next month will see bid costs cut by up to 30% and procurement times cut by two months. This follows a major review by Partnerships for Schools last year. Under the new rules, local authorities will use an extended pre-qualification process to identify only two bidders. These final two will then produce no more than two detailed designs.
Copyright: BLISS, Building Law Information Subscriber Service 2008.
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7/2/2008
Subject: Ken Livingstone Announces New Partnership for Affordable Housing
Description: £3 Billion Programme to be Accelerated
A new partnership to help speed up the delivery of the Capital's £3 billion housebuilding programme was announced today by Housing Minister Caroline Flint and the London Mayor Ken Livingstone. The Homes and Communities Agency (HCA), the Mayor and the Government are joining forces to establish the London HCA Board, a local sub-committee of the HCA responsible for helping to deliver affordable housing in London and the South East. London Boroughs will also be represented and fully engaged in this process.
The new partnership to help speed up the delivery of the Capital's £3 billion housebuilding programme was announced today by Housing Minister Caroline Flint and the London Mayor Ken Livingstone. The Homes and Communities Agency (HCA), the Mayor and the Government are joining forces to establish the London HCA Board, a local sub-committee of the HCA responsible for helping to deliver affordable housing in London and the South East. London Boroughs will also be represented and fully engaged in this process.
The new Board will be responsible for meeting the Government's and the Mayor's objectives to: >br>
* Deliver a significant increase in the total number of homes in a way that is environmentally sustainable;
* Significantly increase the number of affordable, family-sized homes; and
* Create communities in which people want to live by targeting and regenerating the most deprived areas of London.
The new HCA Board will ensure money from the HCA's investment programme and land from the London Development Agency is used to deliver the HCA's housing and regeneration programme for London and support the Mayor's housing strategy.
The Board will be chaired by the Mayor, Ken Livingstone, and have HCA chief executive Sir Bob Kerslake sitting as vice-chairman. Strengthening the partnership will re-enforce a coherent approach to providing new housing and renewal in London.
Copyright: BLISS, Building Law Information Subscriber Service 2008.
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1/2/2008
Subject: Remaining Party Can Rely on Expert Report
Description: CPR 35.11 Gave Unqualified Right
The Technology and Construction Court has ruled that a party may rely upon an expert witness report prepared for a party against whom the litigation has been discontinued. The court took into account the interaction of CPR 35.11 and CPR 35.1 in coming to its conclusion. The court held that the wording on CPR 35.11 was unequivocal and unqualified. It applied where any party has put in an expert’s report so that any other party may rely upon it as evidence. It was not restricted to that it applied only to a party if it remains a party. The party which wishes to rely upon the report as evidence was not limited to the party which disclosed it in the first place.
Copyright: BLISS, Building Law Information Subscriber Service 2008.
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1/2/2008
Subject: Land Securities Delays Decision on 20 Fenchurch Street
Description: Credit Squeeze forces Delay
Land Securities is going to delay a decision on the procurement route for its 20 Fenchurch Street office tower until the end of the year because of the current uncertainties in the market. Land Securities says that it will use this period to try to contain potential cost increases.
Copyright: BLISS, Building Law Information Subscriber Service 2008.
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1/2/2008
Subject: Two Banks Launch Project Bank Accounts
Description: Barclays and Bank of Scotland Announce Products
Barclays and the Bank of Scotland have launched project bank account products. The accounts will hold all the money paid to the main contractor and subcontractors on a scheme. The client, main contractor and subcontractors agree on a price and a completion date for each section of the work. Then when the work is completed, the bank automatically pays out.
Copyright: BLISS, Building Law Information Subscriber Service 2008.
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1/2/2008
Subject: Costain Named Preferred Contractor for Europe's Largest Waste PFI Concession
Description: Contract to be Signed in March
A joint venture of John Laing and waste contractor Viridor, which is preparing to sign the £3bn contract to deliver the Greater Manchester Waste Disposal Authority's (GMWDA) waste services for the next 25 years, has selected Costain to build £330m of new waste facilities. These will include five mechanical biological treatment (MBT) plants, two materials recovery facilities, four in-vessel composting plants, five transfer loading stations and 17 waste recycling centres. A £7m advance works order has already been signed by Viridor/Laing and Costain so the contractor can begin detailed design work.
Copyright: BLISS, Building Law Information Subscriber Service 2008.
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1/2/2008
Subject: Transport Minister Approves £102m Metrolink Upgrade
Description: Government Approves Funding
Plans to upgrade Manchester's tram for the 21st century have been approved by Transport Minister Tom Harris today as he signed off the last part of a £102million improvements package. Mr. Harris confirmed that a further £25.7million will invested in the project, which completes the £58m central Government contribution. The money will pay for renovation works along the existing Metrolink system, including the upgrading of bridges, cabling and overhead lines as well as junction improvements on the Eccles line. Mr. Harris also announced improvements to Blackpool's iconic tram system, including refurbishment of the track and tram stops out to Fleetwood, as well as 16 new fully accessible trams.
Copyright: BLISS, Building Law Information Subscriber Service 2008.
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1/2/2008
Subject: Court Told How Quantity Surveyor Monitored “Clocking-In” Fiddle
Description: MOD Defrauded of Thousands
A quantity surveyor has told a Southwark Crown court how he monitored clocking in by “ghost workers” who fiddled the Ministry of Defence out of £500,000 on the Trident submarine project at the Royal Devonport Dockyard. McLaughlan's Scaffolding Ltd. is accused of defrauding the MOD by claiming the money for work which was never carried out. William Murrat, who worked for Jordan Engineering, said that he saw three workers clocking in using 21 cards.
Copyright: BLISS, Building Law Information Subscriber Service 2008.
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25/1/2008
Subject: Felton Construction Ltd. v Liverpool City Council
Description: Court rejects Quantum Meruit Claim
The claimant contractor, Felton, claimed extra payments on a quantum meruit for work undertaken on Stockton Wood Primary School for Liverpool City Council. Felton claimed that a reasonable sum for the work carried out was £4,133,214.10, less credit for sums already paid. Felton maintained that, although the parties intended to enter into a formal contract, they failed to reach sufficient agreement and certainty to enable a binding contract to be concluded, and, hence, it was entitled to be paid on a quantum meruit basis. The defendant argued that a written contract was concluded and that governed the parties’ relationship.
There are three essential elements for the creation of a contract: agreement, contractual intention and consideration. The normal test for determining whether parties have reached agreement is to ask whether one has made an offer which had been accepted by the other. Even where an apparent agreement has been reached, it may fail to give rise to a binding contract because the agreement is insufficiently complete or uncertain. Parties may reach agreement on matters of principle but leave important points unsettled, so that their agreement is incomplete. On the other hand, however, an agreement may complete and enforceable even though it is not worked out in meticulous detail.
The court reviewed previous authorities before coming to its conclusions on the facts of the present case.
Held:
1. On 25 April 2003 Mr. Hilton, Executive Director of the City of Liverpool (and Chief Executive) had written to Felton as follows:
“I refer to your tender reasonably submitted for the above scheme and write to confirm that the City Council has decided to accept your tender and conditions which we have agreed.
“Whilst the City Council will embody the agreed terms and conditions in a formal contract document as soon as possible, it is the full intention of the City Council (as evidenced herein) that once the duplicate of this letter has been signed by your company a binding legal contract shall arise between the parties enforceable by each.”
Item no. 5 stated:
“All those within the JCT Standard Form of Building Contract Local Authority with Quantities 1999 Edition incorporating Amending 1, 2 and 3 with Amendment 4 all as adapted by the JCT Contractor’s Designed Portion Supplement 1998 edition revised May 2000 and as amended by the Project Specific Amendments and in the conditions referred to in the “Tender Letter” dated 26 February 2003 as prepared by Markhams.”
The letter set out the parties as The Liverpool City Council and Felton, the price of £2,981,800, the date for possession on site of 27 May 2003, the contract period of 52 weeks, and the description of the works.
On 30 April 2003, Felton wrote back enclosing a copy of the signed letter of intent which had been signed by its Managing Director.
There was, therefore, a binding contract between the parties, as evidenced by these two letters.
2. The Council’s letter had included the contract price and incorporated Felton’s priced Bills of Quantities, tender, drawings and other documents which it referred to. It also incorporated any savings which Felton had offered during the negotiations and which the Council had accepted.
3. Felton’s work, including any variations, was to be valued in accordance with the JCT Standard Form as amended, the priced Bills of Quantities, the Tender drawings and the specification referred to.
4. The parties’ contract contained an arbitration clause as provided for by article 7A and clause 41B of the JCT Standard Form.
Copyright: BLISS, the Building Law Information Subscriber Service 2008.
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25/1/2008
Subject: Scathing Transport Committee Report on Metronet Failures
Description: MPs Want to Know Who will Foot the £1.9 billion Bill from the Consortium’s Collapse
A House of Commons Transport Committee report is demanding that the government “come clean” about the botched contract for the upgrade of London Underground. The Committee has criticised the government for forcing London Underground into the public-private partnership deal with Metronet, which resulted in a £2 billion overspend and the consortium’s 'spectacular' failure. London Underground also came in for some criticism: 'A contract which fails to incentivise efficiency in the private sector, and deter poor planning, lack of forethought and goldplating in the public sector, is pretty much useless.
'We recommend that the Government, as a matter of urgency, makes a full assessment of the additional costs incurred as a result of the failure of Metronet, including the cost of work that has been inefficiently undertaken and the cost of administration.'
Committee chairman Gwyneth Dunwoody said: "The future of most of London Underground's upgrade and maintenance work is now in doubt. The public, whether as taxpayers or Tube passengers, is paying for the private sector's inefficiency and failure.
"Any reasonable person, looking at the current situation, would find scant evidence to sustain a dogma that the private sector will always deliver greater efficiency, innovation and value for money than the public sector.
"If the Government is ever again tempted by a seemingly good deal from the private sector, it should recall Metronet's pathetic under-delivery and the deficiencies in the contracts that allowed it to happen."
BLISS, the Building Law Information Subscriber Service 2008.
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25/1/2008
Subject: Quantity Surveyors in Demand
Description: Credit Pressures Cause Professional Hotspots
Hays reports that there is and increasing demand for quantity surveyors as the credit crunch starts to bite in the industry. Skills shortages in the UK mean that more companies are looking overseas. Other professions in demand are: development managers and property managers are in demand, as well as senior architecture technicians, commercial project managers and site managers. Employers are also reacting to the skills shortage by recruiting junior staff into these roles and allowing rapid career progression. New projects and turnover created by the large number of vacancies in these areas continue to fuel this demand, with average tenure for these candidates falling.
BLISS, the Building Law Information Subscriber Service 2008.
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25/1/2008
Subject: Big Dig Contractors Settle Lawsuit for $458m
Description: Consortium Will Not Face Criminal Charges
The Bechtel/ Parsons Brinckerhoff consortium which oversaw design and construction of America’s costliest and most complex public works project, has agreed to pay $407 million to settle its lawsuit with the government. In addition, several smaller companies will pay about $51 million collectively. The Tunnel has been subject to leaks due to design flaws and there was also a tunnel collapse which caused a fatality. Under the deal, the consortium will not be barred from being awarded future government contracts. State officials will be able to seek further damages from Bechtel/ Parsons Brinckerhoff only if there is a catastrophic event -- defined as causing more than $50 million in damages. The $14.79 billion Big Dig, which had an initial price tag of $2.6 billion, was plagued by problems and cost overruns throughout the two decades it took to design and build.
BLISS, the Building Law Information Subscriber Service 2008.
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25/1/2008
Subject: Liverpool F.C. Unveils Revised Stadium Design
Description: Rising Costs Forced Re-Design
Liverpool Football Club has unveiled its revamped design for its new stadium. The original design had to be abandoned last month because of rising costs. The new plan is for a 71,000-seater stadium. Dallas-based architect, HKS Inc., has been hired to build the new venue based on "an improved stadium design that meets the objective of a cost-effective, supporter-friendly design."
The stadium is scheduled to open in August 2011 and will feature an 18,500-seat single tier stand for the Kop, which hosts Liverpool's most loyal and vocal supporters. The current Kop seats 13,500. The project is expected to cost about £400m.
Copyright: BLISS, the Building Law Information Subscriber Service 2008.
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18/1/2008
Subject: Mediation of Construction Disputes
Description: New Book Publishing March 2008
This book is written for users of mediation, whether they be a party, an advisor or an expert. It should also be of help to commercial mediators who have no specialism in construction. Its aim is to encourage confidence in the mediation process and to ensure that those who do use mediation to resolve their disputes do so effectively and so are able to maximise the opportunities that mediation offers.
QSI Members can benefit from a 10% discount pre-publication offer by ringing BLISS Books on 01565 777234 before 15 February 2008.
More information is available by following the link below:
Associated Link : http://www.blissbooks.co.uk/p8821/Mediation-of-Construction-Disputes/product_info.html
18/1/2008
Subject: Credit Crunch Starts to Affect Procurement
Description: Sir Robert McAlpine Suffers from Changes
Sir Robert McAlpine has been axed from two major schemes as developers change procurement routes in a bid to save costs. Mace has replaced McAlpine on the £100m Park House project in Oxford Street, opting for construction management over design and build.
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18/1/2008
Subject: Subbies and Supplies Resist 5% Cuts
Description: Legal Action Threatened
The National Specialist Contractors Council (NSCC) is to co-ordinate a campaign against Taylor Wimpey's attempts to cut 5% from subcontractors' and suppliers invoices. Last week, Bryant Homes, TW's housing arm, wrote to its suppliers and subcontractors explaining that it planned to deduct 5% from their invoices because 2007 had been a bad year for house building. The NSCC's legal department has drafted a standard letter of refusal which it is urging subcontractors to use to respond. Some suppliers are threatening to take legal action if TW makes any deductions. Subcontractors are saying that this action must be stopped as it sets a dangerous precedent.
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18/1/2008
Subject: Staff Shortages Force Construction Companies to Rethink Benefits
Description: Changes in Attempts to Keep Staff
Fierce competition for staff is forcing construction firms to rethink the benefits they give staff. Whilst the housing market may be suffering, the 2012 Olympics together with other government-sponsored projects has given the construction industry a tremendous boost. These projects include CrossRail and the pledge to deliver three million new homes.
Skills shortages is putting pressure on companies to do something to attract and keep their staff. These pressures can, in some circumstances lead to problems. One of the country’s top architectural practices, BDP, reported losses last year because of the higher wage bills needed to prevent staff from being poached. Employees in demand include quantity surveyors, engineers, and project and site managers, plus skilled operatives.
The Midas Group, a construction company based in the South West, rebranded in May last year, which the company believes has helped with recruitment and retention, as has talking to people about what they wanted from their benefits package. As a result, staff turnover has fallen to around 18.5% in the last 12 months, which is below the estimated industry average of between 20%-30%.
BLISS 2008
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18/1/2008
Subject: 'Dockyard Scam Cost MoD £424 000'
Description: Trident Contractors Swindle Taxpayer
A court has been told how contractors working on the Trident submarine project defrauded the Ministry of Defence our of nearly half a million pounds, using a clocking-in scam. They even invoiced for work when employees had gone on strike.
The jury was told that more than 100 separate contractors and 40,000 people were employed on a "mammoth" project to upgrade the site in 2001 and 2002. Contractor, McLaughlan's Scaffolding Limited, took advantage of the vast sums of funding the development to cream off hundreds of thousands of pounds by claiming for work which was never carried out.
It is claimed that McLaughlan's invoices used clock cards to show when work started and finished, allowing the company to use fake documents to inflate their figures.
Copyright BLISS 2008.
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18/1/2008
Subject: Building Sector Pessimism Soars
Description: Pessimism among Irish construction firms has reached its highest level ever
The latest FÁS/ESRI employment and vacancies survey found the employment outlook of construction firms dropped to it lowest level last month, with the percentage of employers in the sector expecting employment levels to fall over the coming months 42 percentage points higher than that predicting an increase.
Earlier this week, the Ulster Bank construction purchasing managers index found activity in the construction sector has plunged to its lowest level on record, while the CSO said the number of people employed in the construction sector fell 5.4% on a year-on-year basis in November.
The FÁS/ESRI survey also found the number of firms expecting a fall in employment levels over the coming months is 10 percentage points higher than that predicting an increase.
Dr Elish Kelly of the ESRI said: "Overall the vacancy figures are holding up but going forward we are finding employers are expecting to hire less people and are becoming more pessimistic when it comes to hiring prospects but this seems to be consistent with overall forecasts for economic growth.
"With regards to the construction sector, the results from December’s survey indicate employers in this sector are the most pessimistic they have been since 2002 about future employment levels in the sector."
The employment outlook of retail sector firms continued to trend downwards with employment expectations for the sector falling by one percentage point to -6%. Some of the most frequently reported difficult-to-fill vacancies were quantity surveyors, engineers and general operatives and sales staff.
Copyright BLISS 2008.
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18/1/2008 | |
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