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News & Diary
 27/7/2010
Subject: Scottish First Minister Predicts Thousands of Jobs in Renewables
Description: Stage 2 of the National Renewables Infrastructure Plan (N-RIP) Published
The Scottish First Minister, Alex Salmond, has told a Scottish Government public discussion event in Dornoch that over 5,000 green jobs could be created through the development of three regional offshore energy manufacturing sites built around key port locations.
The report states that a total private and public investment of £223 million would assist the creation of 11 offshore wind manufacturing sites in three regional clusters. Taken together these sites could support the creation of about 5,000 new jobs, plus an annual economic impact of up to £294.5 million.
Associated Link : http://www.scotland.gov.uk/News/Releases/2010/07/27150157
26/7/2010
Subject: Irish Government Announces Revised Infrastructure Fund
Description: Six-year €39.43 billion revised capital investment programme.
The Irish government has announced a six-year €39.43 billion revised capital investment programme. The programme, “Infrastructure Investment Priorities 2010-2016”, was published by the Taoiseach at the national convention centre in Dublin’s Spencer Dock at midday today (26 July 2010).
The main areas for investment are public transport, roads, schools, health facilities, the environment, energy efficiency, broadband, Research and Development (RD) and support for jobs and enterprise. €12.2 billion has been allocated for transport projects including Metro North and the €2.5 billion Dart underground project, which will proceed, but rail links from Dublin to Navan and from Tuam to Claremorris have been put on hold.
Associated Link : http://www.irishtimes.com/newspaper/breaking/2010/0726/breaking11.html
23/7/2010
Subject: Leading QS Calls for PFI Clarity
Description: PFI Framework Needed in Malaysia
A top QS has told the "Business Times" that a clear framework is needed if the Private Finance Initiative (PF) is to be adopted successfully in Malaysia. Professor Dr Khairuddin Abdul Rashid,
teaches at the International Islamic University Malaysia's Department of Quantity Surveying, is considered an expert on PFI in Malaysia.
Associated Link : http://www.btimes.com.my/Current_News/BTIMES/articles/3pu/Article/
23/7/2010
Subject: Quantity Surveying Firms Drawn into Holiday Scam
Description: Fraudster Claims to be QS
A number of quantity surveyor firms have been unwittingly drawn into an elaborate holiday rental scam in which customers pay up front to stay in a luxury apartment which they cannot subsequently access.
Associated Link : http://www.irishexaminer.com/ireland/holiday-scam-used-legitimate-firms-details-125968.html
23/7/2010
Subject: Scottish Court Considers Principles of Concurrent Delays and Dominant Cause
Description: City Inn Ltd. v Shepherd Construction Ltd.; 22 July 2010
The Inner House of the Scottish Court of Session has rejected City Inn's appeal against a decision that Shepherd Construction was entitled to an additional extension of time due to architect's late instructions. During the course of the 85-page judgment, the Court set our principles to be followed when considering issues of concurrent delay and dominant cause.
Associated Link : http://www.blissbooks.co.uk/news.php
23/7/2010
Subject: Atkins May have to Cut 600 Staff
Description: Government Cuts Blamed
"Building" is reporting that Atkins’ highways and transport division may have to shed 600 jibs because of the government's spending cuts. This follows a similar announcement from WSP that 50 jobs will have to go.
Associated Link : http://www.building.co.uk/5003251.article?origin=bldgqsnewsnewsletter
20/7/2010
Subject: Amey Wins Station Upgrade
Description: Nine Stations plus Track Work
Amey has been awarded a top contract by Network Rail to extend platforms at nine stations in the South East of England so they can accommodate new 12-car passenger trains carrying extra commuters into London. In addition, Amey will carry out supporting works on the existing track, overhead line and signalling equipment and upgrade lighting, public address and CCTV security systems.
Amey will use an innovative mini piling system to support the new platform structures, which will save time and money for Network Rail and minimise disruption and noise to rail users and local residents. In a traditional piling operation, specialist machines are used on the tracks and work is carried out during rail possessions, at evenings or weekends. However, Amey’s mini piling system can be set up off the tracks, enabling lines to stay open for business throughout the project. Survey and design work starts in July and all stations are due to be completed in November 2011.
Associated Link :
18/7/2010
Subject: QSi Membership Campaign
Description: QSi Membership Campaign
Please contact your work colleagues and let them know the benefits of joining QSi - Quantity Surveyors International
They are:-
1) Membership certificates are issued to members. (New members are vetted to ensure that they have a right to the membership grade requested.)
2) Access to BLISS news / legal articles free.
3) Access to free QS CPD – Certificates given
4) Access to over eighty modern QS Legal case articles.
5) Easy links to other QS / QS Companies / Building Companies.
6) Low cost advertising on the QSi website.
The QSi founded 6 years ago by a small group of QSs who believed that the existing Institutes were not nurturing the QS profession and helping to retain old skills whilst developing new approaches.
Anyone who has a QS back ground can join.
The annual fees are only a fraction of the cost of other Institutes.
The reason for this is everyone at QSi is a volunteer. We don’t have a massive “civil service” pushing bits of paper around.
For more information, go to http://www.theqsi.com or email me on andrew@andrewrwilliams.co.uk
Associated Link :
16/7/2010
Subject: Adjudicator Not Biased
Description: No Evidence of Preference Towards Former Colleague
Fileturn sought summary judgment to enforce an adjudicator’s award against the defendant, RGH. RGH resisted the enforcement on the grounds of alleged bias by the adjudicator, Mr. Sliwinski because of his pre-existing relationship which Mr. Richard Silver of construction consultants, Alway Associates, who represented Fileturn in the adjudication.
Mr. Sliwinski was a director of Alway Associates until February 2004, when he left to become a partner in solicitors, Wright Hassall. About two years after that, he left to set up his own practice, acting as an adjudicator on a regular basis. Mr. Sliwinski had been based at Alway’s Banbury office, whilst Mr. Silver was based at their office in Epping. Mr. Silver had requested Mr. Sliwinski’s appointment as adjudicator in about a dozen disputes over the previous few years, but he had only been appointed in two of them, one of them being the present case. Mr. Sliwinski had acted in about 10 adjudications where Alway had represented one of the parties.
Because this was an application under CPR 24, the court had to consider whether RGH had no reasonable prospect of defending the claim to enforce the award. The parties were agreed that the test for bias was whether the informed and fair-minded observer, having considered the relevant facts, would conclude that there was a real possibility that Mr. Sliwinski was biased.
The court assessed the material facts. RGH’s solicitors had enquired how often Alway Associates had asked for Mr. Silwinski to act as adjudicator, and was told that Mr. Silver had asked for Mr. Silwinski on 12 occasions. No one else in Alway Associates had requested him to act. Alway Associates had represented one of the parties before Mr. Silwinski on ten occasions; on two of these Mr. Silver had been Alway’s representative.
The court concluded that faced with these facts a fair minded observer would probably conclude that although Mr. Silver had requested Mr. Silwinski to act as adjudicator on 12 occasions, he had only actually been appointed once, and there was no evidence that Mr. Silwinski knew that Mr. Silver had asked for his appointment on the other occasions. Consequently, the fact that Mr. Silver had asked for these appointments was unlikely to have had any effect on Mr. Silwinski’s mind. Given that Mr. Silwinski conducted about 25 adjudications a year, only 5-10% involved Alway Associates acting for the parties.
There had been no significant contact between Mr. Silwinski and Mr. Silver since Mr. Silwinski had left the company apart from the one occasion upon which Mr. Silver had represented a party before Mr. Silwinski. There was no evidence that they had had anything other than a professional association when Mr. Silwinski had worked for Alway, and, given the number of adjudications which Mr. Silwinski undertook without the participation of Alway Associates, it could not be said that he relied upon them for his practice as an adjudicator.
The questionnaire issued by the RICS which asked Mr. Silwinski to “disclose any involvement, however remote, but in particular an involvement you or your firm has (or has had in the last five years) with either party in this dispute” did not require him to disclose any involvement prior to that.
There was no inherent objection to the fact that legal representatives are well known to a judge. In specialist courts, this frequently happens. The judge rejected RGH’s arguments that Mr. Silwinski had been biased and concluded that they had no reasonable prospect of success.
Fileturn v Royal Garden Hotel Ltd., [2010] EWHC 1736 (TCC)
Copyrght: BLISS Books Ltd. 2010
Associated Link :
16/7/2010
Subject: European Contract Consultation Launched
Description: Single Contract Law for the Internal Market
The European Commission has launched a consultation seeking views on the introduction of a European contract law for businesses and consumers to enable all to take full benefit of the internal market. Views are invited by January 2011.
Associated Link : http://ec.europa.eu/justice_home/news/consulting_public/news_consulting_0052_en.htm
15/7/2010
Subject: BPF/ CCG Report Criticises Construction Health and Safety Laws
Description: Report Highlights Flaws in the Legislation
A report produced by Pye Tait and commissioned by the British Property Federation and the Construction Clients Group has highlighted what it calls “severe flaws” in current construction health and safety legislation. Research shows that clients who do not commission buildings on a regular basis have never heard of the Construction (Design and Management) Regulations 2007. For companies whose main operations include construction, such as property developers, the study has found that the legislation has not led to a substantial reduction in health and safety risks in construction, while costs and the level of administration required for compliance have risen. Industry groups want the government to overhaul the regulations and engage more widely with business to ensure that anyone likely to commission construction work understands their responsibilities and knows where to get help.
Associated Link :
8/7/2010
Subject: Adjudicator Did Not Communicate Decision “In Reasonable Time”
Description: Decision Unenforceable
The Technology and Construction Court has ruled that an adjudicator did not communicate his decision to the parties in a “reasonable time” as required by the Scheme for Construction Contracts and it was unenforceable.
An adjudicator must reach his decision within 28 days of the referral or within 42 days if the referring party consents. The parties may agree a longer period if they so wish. The evidence established that the adjudicator had reached his decision no later than 2.48p.m. on Friday 13 November 2009. The decision was issued by e-mail at 4.57p.m. on the 16th. The parties had agreed an extension which included the 13th. In effect, the adjudicator had not been asking for an extension in which to reach his decision but some additional time for delivering it. The Scheme required him to issue a copy of his decision as soon as possible after reaching it, and he had been asking for relief from that obligation.
The only issue was, therefore, whether he had delivered his decision “as soon as possible after” he had reached it. There was no evidence which explained why it took the adjudicator three days to deliver his decision. The adjudicator worked for a large firm and it was not unreasonable to assume that it could have been typed promptly. The adjudicator could have set aside time to read it through with the aim of communicating it in a shorter time even though a weekend was imminent. There was no good reason why, with a little effort and application, the decision could not have been communicated on the 13th or why the whole of the working day of the 16th had passed before the decision was dent out. The decision had not been issued “as soon as possible” and it was unenforceable.
Associated Link :
8/7/2010
Subject: JOB OFFERS
Description: JOB OFFERS
Commercial Manager / Senior QS (Rail Sector) - Midlands
Plan Procure Manage is a specialist consultancy dedicated to supporting its clients in achieving effective procurement and commercial management.
We help public and private sector organisations, large and small, to successfully plan, procure and manage projects minimising commercial risk.
Due to our continuing growth we urgently need a Commercial Manager or Senior QS with Rail experience gained working with contractors.
We are looking for someone who can start imediately, on a signalling contract in the Midlands.
Permanent and Interim applicants will be considered. (No agencies)
Contact us with CV, location and salary/rate expectations at contact@planprocuremanage.com
CSR CONSTRUCTION JOBS -
SENIOR ESTIMATOR - Civil Engineering
CSR CONSTRUCTION JOBS:-
SENIOR ESTIMATOR
The Role:
Our client is one of the leading players in the UK civil engineering markets working on a number of very high profile schemes across a wide range of sectors.
CSR are currently working with their Northern Ireland region which has recently completed a major infrastructure improvements scheme. Due to the successful completion of this project they have now secured similar work for 2010/2011.
Reporting to the Civils Director you will be involved in compiling tenders for significant and complex Civil Engineering schemes up to £150M whilst undertaking management responsibilities where you will have significant influence on the decision making process with regards to tenders.
Responsibilities:
◦Take off quantities from drawings to provide both tenders and budgets.
◦Preparing works schedules
◦Preparing and work with bills of quantities.
◦Preparing tender submissions, ensuring that these are consistent with the estimate.
◦Liaising with the Sales and other relevant staff to ensure that the structure of the estimate meets the requirements of the contract management process.
◦Providing a reliable and cost effective estimating service, ensuring that all Company bids represent the actual cost of completing the relevant contracts satisfactorily, taking into account current legislation, which affects the execution of the contract.
◦Establishing and maintaining good communication channels with relevant departments (Contracts, Design, Human Resources, Purchasing and Production) to ensure you have the most up-to-date cost changes.
◦Attending Estimating Department meetings with Sales to determine department workload.
◦Attending and participate in internal meetings to ensure that routine validation of contract estimates is undertaken.
◦Liaising with other departments to ensure that all relevant information on contracts, architects, contractors, clients etc., obtained by estimating department in the course of its activities, that could have bearing on the company’s success is passed on.
◦Working to and be aware of ISO 9001 & 14001 and Investors in People requirements
Requirements:
This is a key role within the business therefore only candidates with the following experience will be considered:
·Minimum of 5 years civils estimating experience
·Previous exposure to the bid and tender process for £multi-million civil engineering contracts
·Strong IT skills
·Ability to meet challenging deadlines
To discuss this opportunity in the strictest confidence please contact Raymond Younge at CSR by sending your CV to raymond@csrni.com
Crescent Specialist Recruitment (CSR) is operating as an employment agency on behalf of our client.
Crescent Specialist Recruitment is an equal opportunities employer and we welcome applications from all sections of the community
For more information go to
http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&discussionID=24170333&gid=2598081&trk=EML_anet_qa_ttle-d7hOon0JumNFomgJt7dBpSBA
Associated Link :
6/7/2010
Subject: Scottish Government Sets up “Jessica” Fund
Description: Boost for Regeneration Projects
The Scottish Government has set up the £50m Jessica Scotland Fund which is intended to help kick-start large-scale regeneration schemes that have stalled during the recession. The fund is made up of £26 million from the Scottish Government and a £24 million grant from the European Regional Development Fund. The fund will be invested in new business and transport hubs, wireless technology zones, green energy provision for social housing and renewing derelict sites. Organisations such as urban regeneration companies (URCs) and other bodies operating in the 13 most deprived local authority areas in Scotland will be eligible to bid for loans. The fund will aim to recycle cash for future projects by getting money back when schemes start generating returns.
JESSICA stands for the Joint European Support for Sustainable Investment in City Areas programme.
Associated Link :
5/7/2010
Subject: Scottish Government Announces Millions for Affordable Homes
Description: Accelerated Building Programme Announced
Housing and Communities Minister Alex Neil announced today (5 July 2010) that £45 million funding will accelerate building of at least 800 new low cost homes across Scotland. The resources will be focussed on stimulating the country's house building industry and tackling homelessness.
The money comes from:
£31 million in UK budget consequentials allocated to housing developments across Scotland
£14 million has been released from the Affordable Housing Investment Programme (AHIP) because Glasgow Housing Association has agreed to spread some of the grant funding it is due over a longer period.
As a result of the additional funding, the Affordable Housing Investment Programme (AHIP) for 2010-11 will rise to £502 million delivering over 7,100 homes for rent or low cost ownership.
Associated Link :
29/6/2010
Subject: Quantity Surveyor - UK/France
Description: Quantity Surveyor - UK/France
UK based consultancy requires a fluent French speaking Quantity Surveyor to work on exceptional projects in Paris and Bordeaux. Based in London it is expected you will visit Paris at least once a week and Bordeaux frequently.
It is essential that you are familiar with the French system and have worked previously as a quantity surveyor for a UK based PQS. The Client is not looking for anyone from a contractor background.
A telephone interview in French will take place before any face to face interviews are arranged to ensure fluency.
Email stephen@ruetwo.com
Associated Link :
29/6/2010
Subject: Wakefield College Advertises QS Contract
Description: Services for Campus Masterplan
Wakefield College has published an OJEU notice for cost consultancy services for its City Centre College Masterplan. Taylor Young Architects will design the proposed development on the existing City Centre Campus site. The anticipated project cost is £5.73m. It is anticipated that the master plan will provide for a series of distinct development phases that will allow for flexibility depending on sources and timing of funding, but which will also ensure continuity of operations. It will also provide flexibility to respond to changes in further education over the next few years, and reduce the need for capital funding in the initial phases.
Associated Link :
29/6/2010
Subject: Balfour Beatty Preferred Bidder for Oldham BSF
Description: Programme Worth £175m
This BSF Programme involves the delivery of new buildings and upgrades to eight of the Borough’s schools, a pupil referral unit and the construction of a new school in Chadderton. The initial phase of construction, which will commence in January 2011, will involve the delivery of the new-build Oldham Roman Catholic School at its new site and the partial rebuild and remodelling of North Chadderton School. Upgrades, expansions and new buildings for the other schools will commence between 2012 and 2014, with all construction work completed by 2015.
Associated Link :
25/6/2010
Subject: Precedence of Dispute Resolution Clauses in JCT 2005 MW
Description: Paul and Elizabeth Price v Ian Carter (t/a Ian Carter Building Contractors), [2010] EWHC 1451 (TCC)
Carter was appointed by the Prices under a JCT 2005 MW form of contract for the demolition of their bungalow and construction of a new house for £226,000. Completion was due on 26 May 2008, but the work was delayed, and the Prices took possession of the site on 24 July 2008. Carter was granted an extension of time of 9 weeks only. Practical completion was achieved on 18 February 2009. The contract provided for disputes to be referred to adjudication and arbitration. The Prices wanted to use adjudication as a cheaper method of resolving the dispute. The nominated adjudicator was also the contract administrator for the works and Carter had misgivings about the same person fulfilling both roles. Carter served a notice of arbitration on the Prices. As the parties failed to agree on a nomination, the RIBA nominated Mr. James Middleton-Stewart.
Mr. Middleton-Stewart issued his award on 8 March 2010, and the Prices issued the present claim outside the 28-day time limit stated in section 70 of the Arbitration Act 1996. The Prices argued that the claim was not out of time because there was an outstanding process of review of the award, and they had not been notified of the result until 29 March 2010 (at the earliest). The Prices sought leave to appeal and an extension of time.
The Prices argued that by section 67 of the Act, the arbitrator had no jurisdiction because the primary mode of dispute resolution under the contract was adjudication, not arbitration. They maintained that clauses 6 and 7 of the contract, taken together, meant that adjudication took precedence over arbitration as a method of dispute resolution. Alternatively, the Prices maintained that the Notice of Arbitration had been defective. A challenge under section 69 was abandoned.
The Prices alleged that there had been serious irregularities within the meaning of section 68 of the Act which had caused them injustice. The irregularities complained of were that the arbitrator had delegated some of his duties to an assessor and then refused to allow the parties the opportunity to challenge the assessor’s evidence. In addition, the arbitrator had refused to consider some of the Prices’ claims which they had introduced towards the end of the arbitration, and whether they had any entitlement to liquidated damages.
Copyright: BLISS, Building Law Information Subscriber Service 2010.
Associated Link :
22/6/2010
Subject: Morgan Sindall Wins £95.4 Million Scottish Health Project
Description: Contract for a Mental Health Care Unit at Murray Royal Hospital
Morgan Sindall has been awarded the design and build contract for the £95.4 million Tayside Acute Adult Mental Health Developments scheme in Scotland. Working jointly for sister company Morgan Sindall Investments Limited and Robertson Capital Projects, on behalf of NHS Tayside and the North of Scotland Planning Group, Morgan Sindall will design and build new mental healthcare facilities at Murray Royal Hospital in Perth and Stracathro Hospital in Angus. Design and project management consultancy Morgan Sindall Professional Services is the sustainability and BREEAM consultant for the construction project. The scheme has a total development value of £120 million.
The inpatient facilities provided will be for NHS Tayside General Adult Psychiatry, Psychiatry of Old Age, Low Secure Care Services and a new regional Medium Secure Service located in Perth for the North of Scotland Planning Group. In total, 183 bed spaces will be created at Murray Royal Hospital, with an additional 52 at Stracathro Hospital.
Associated Link :
21/6/2010
Subject: FE Colleges to Bid for Share of £50m Building Pot
Description: Colleges Offered Additional Funding for Building Projects
The Department for Business Innovation and Skills is inviting Further Education Colleges to bid for money from a £50m fund. Around 150 colleges who have yet to significantly benefit from the capital programme will each receive approximately £225,000 under a £30 million Renewal Grant - bringing real benefits to the learning and training of young people. A additional £20 million will be made available to colleges through an Enhanced Renewal Grant. Colleges will have the opportunity to add to their Renewal Grant, by bidding to build their total allocation to £1 million. Colleges will be expected to attract additional private finance, providing final projects of significant value.
Associated Link :
21/6/2010
Subject: Balfour Beatty Preferred Bidder for Derby Schools BSF
Description: Refurbishment of 14 Schools
Balfour Beatty has announced to day (21 June) that it has been chosen as the preferred bidder by Derby City Council for its £231m Building Schools for the Future programme. This BSF Programme involves the design and new build or refurbishment of 14 schools in the city with funding for three schools to be raised through a Balfour Beatty led PPP concession. All construction and facilities management will be carried out by Balfour Beatty. ICT services across all the schools will be delivered in conjunction with RM, a leading provider of ICT educational solutions.
The initial phase of the scheme will begin in November of this year with the new build of Noel-Baker Community School and Language College and St Martins School, together with the major refurbishment of Derby Moor Community Sports College. All of these schools are scheduled to open for the new academic year in September 2012. Upgrades and new builds of the other schools will commence once financial close has been achieved with all work to be completed for the new academic year in September 2014.
Associated Link :
15/6/2010
Subject: Cabinet Office to Absorb OGC
Description: Government Procurement Arm Succumbs to Efficiency Drive
The Government has confirmed that the Office of Government Commerce and the Buying Solutions subsidiary is to be absorbed into the Cabinet Office. Buying Solutions controls a number of government frameworks and it is unclear how these will be affected. The move will bring together all the cross-government operational functions, including procurement, project management, IT and Civil Service workforce and reform functions.
Associated Link : http://www.building.co.uk/5001108.article?origin=bldgbreakingnewsletter
15/6/2010
Subject: Interserve consortium preferred bidder for St. Helens BSF
Description: Minimum £150m Contract
The Interserve-led consortium Environments for Learning (E4L) has been named preferred bidder to undertake a major schools development programme for St Helens Council worth provisionally £150 million.
The programme will operate under the Building Schools for the Future (BSF) initiative. Interserve will construct two schools, with a capital cost of £47 million, in the first phase: Rainford High Technology College and De La Salle School. Rainford will be financed using the private finance initiative (PFI) and Interserve will provide facilities management services worth £8 million to the school over a 25-year period once complete.
Six further schools, worth an aggregate of over £100 million in construction costs, have been identified for subsequent development. Two of these will be procured through PFI.
E4L and St Helens Council will, together with BSF Investments, become partners in St Helens’s Local Education Partnership (LEP). We anticipate reaching financial close on the contract in the autumn this year; construction will begin immediately afterwards, leading to the first schools being ready to accept pupils for the start of the academic year in September 2012.
Associated Link :
14/6/2010
Subject: DCLG Spends £28m on Consultants
Description: Analysis of Treasury Spending Reveals Spend on Consultancy Services
An analysis of Treasury data by the journal "Regeneration and Renewal" has revealed that the Department for Communities and Local Government spent nearly £29m on consultants in the financial year 2009-2010. The figures were taken from an analysis of the Treasury's Combined Online Information System (Coins) spending database, which includes 24 million entries on what public money is spent on.
Associated Link : http://www.regen.net/bulletins/Business-Bulletin/News/1009416/Exclusive-DCLG-consultancy-costs-hit-28m/?DCMP=EMC-Business%20Bulletin
11/6/2010
Subject: Survey Reveals RICS Concerns
Description: QSs Say They are Not Adequately Represented
An online survey conducted by "Building" Magazine has shown that 69% of respondents thought the RICS does not represent quantity surveying firms fairly. Despite this, most are in favour of remaining in the RICS.
Associated Link : http://www.building.co.uk/news/qss-reveal-rics-grievances/5000841.article
7/6/2010
Subject: Developers Shortlisted for 4,500 Defence Housing Contract
Description: Project Will Regenerate Aldershot Land
St. Modwen, Argent and Taylor Wimpey have all been shortlisted by the Homes & Communities Agency (HCA) and Defence Estates to redevelop the 148ha Aldershot Urban Extension (AUE) site in Aldershot to create a mixed-use scheme which will include 4,500 houses. The AUE is one of the largest brownfield sites in the South-East of England, and part of it will be sold. The HCA hopes a developer will be in place by the end of 2010, with work commencing in 2012.
Associated Link :
4/6/2010
Subject: Quantity Surveyors Identify Australian Government “Cost Blow Out”
Description: QS Figures Show that Government Paying Double the Industry Rate
Audits of the costs of New South Wales schools projects show that the government expects to pay $932,235 in Sydney metro and $1.034 million in regional areas. At these rates, the government seems to be accepting that it should pay between $7768 a square metre and $8617 a square metre for the buildings: more than double industry rates. This cost doubling is not isolated to prefabricated buildings. The estimates document shows that the price the department expects to pay for most school buildings is roughly double what comparable buildings cost to deliver. The NSW Education Department has said that it has conducted 103 audits into BER buildings, including prefabricated buildings, and found "no evidence of overcharging". However, the reason may be that when auditing the cost of projects, the government compares the buildings against its heavily inflated internal cost estimates i.e. the government compares the price the managing contractors are charging for the buildings with the price it expects it should pay. If the building cost is not more than 5 per cent greater than what the NSW government believes it should be, the project is passed.
Associated Link :
4/6/2010
Subject: Taylor Lewis Rebrands
Description: Management Buy Out for Consultants
The new owners of an Exeter firm of project managers, construction consultants and chartered quantity surveyors have rebranded the company. More than 50 clients, consultants and contractors ajoined the company at a launch party at the Devon Hotel to celebrate the new image for Taylor Lewis. Steve Foxon and Ben Couch completed a management buyout in October last year. Mr. Foxon, who joined the business in 2004, said: "We were keen to keep the existing name because it has such a good reputation, but we just wanted to update the image. Mr. Foxon said that since the takeover the company has increased its market share despite not seeing a rise in overall activity in the construction sector.
Associated Link :
4/6/2010
Subject: Tesco Gets Permission for Multi Million Pound Mixed Development
Description: First Phase to be Complete by 2012
London Thames Gateway Development Corporation has given Tesco permission to build a multi-million pound mixed-use scheme in Bromley-by-Bow. The scheme will include 454 homes, a supermarket, a district centre, a library, a primary school, a hotel and a riverside park. The first phase will be completed by 2012.
Associated Link :
4/6/2010
Subject: RWE Innogy, Stadtwerke München and Siemens to Build Offshore Welsh Wind Farm
Description: Total Investment will be More than EUR 2 Billion
RWE Innogy, Stadtwerke München and Siemens have formed into a joint venture to build the offshore wind farm Gwynt y Môr The total investment will be more than two billion Euros, including the grid connection to the coast. Gwynt y Môr, which is Welsh for “Wind at Sea” is to be built with an installed capacity of 576 megawatts in Liverpool Bay, around 18 kilometres off the North Wales coast. Work will start towards the end of 2011 to erect the first foundations for a total of 160 wind turbines. The permits have already been obtained. Siemens will supply, install and maintain the wind turbines, and provide the connection to the grid.
In its first phase of expansion, the wind farm is planned to generate electricity as early as 2013. The project is expected to be completed in 2014. From then onwards it is forecast to generate around 1,950 gigawatt hours of electricity annually, enough to supply around 400,000 British households. The site is in a very good location as Liverpool Bay in North Wales is renowned comparatively shallow water and very high wind speeds.
Associated Link :
1/6/2010
Subject: Aga Khan in Advanced Talks to Create King's Cross Cultural Centre
Description: Development on 67 Acre Site
The Aga Khan is is advanced talks for talks for the creation of a centre for Ismaili studies and cultural affairs at London’s £4bn King’s Cross scheme. It is believed that that the Aga Khan Foundation and King’s Cross Central — the joint venture between Argent, London & Continental Railways and landowner DHL-Exel – are finalising details of an agreement to develop the proposed centre at the 67 acre site.
Associated Link : http://www.propertyweek.com/story.asp?sectioncode=297&storycode=3164045&c=1#ixzz0pG4uXkKp
23/5/2010
Subject: QSs Wanted
Description: QSs Wanted
Urgent position! Quantity Surveyor (Senior Level), (UAE), Quantity Surveying OR Civil Engineering degree is essential, at least 5 years of experience, please send your cv to info@esesearch.com
Associated Link : http://www.linkedin.com/groupAnswers?viewQuestions=&gid=2598081&forumID=5&sik=1274648976922
21/5/2010
Subject: Skanska/ Costain JV Wins Second Crossrail Contract
Description: Works Part of Pudding Mill Lane Portal Framework
The value of the contract is similar in size and scope to the Royal Oak portal previously announced in March. Pudding Mill Lane Portal, which is close to Stratford and adjacent to the existing DLR, overland railways and the Lea River, will act as the transition ramp for Crossrail trains when entering and exiting the north east section of the central London tunnels. Work will begin immediately and is scheduled for completion in summer 2011.
Associated Link :
21/5/2010
Subject: Government Examines Replacement of RDAs
Description: Coalition Statement Supports LEPs
The government's agreement published yesterday states that it will "support the creation of LEPs, joint local authority-business bodies…to replace RDAs" and that these "may take the form of existing RDAs in areas where they are popular". The RDAs were aware that change was coming; and England RDAs’ Chair of Chairs, Sir Harry Studholme, said he was looking forward to working with government, and local authority and business partners, on the detail of how new arrangements will be implemented.
Associated Link :
20/5/2010
Subject: HIPS on their Way Out
Description: Home Information Packs Suspended with Immediate Effect
The Communities Secretary Eric Pickles and Housing Minister Grant Shapps have today announced that they are suspending the requirement for homeowners to provide a Home Information Pack (HIP) when selling their homes with immediate effect. An Order suspending HIPs with immediate effect, has been laid pending primary legislation for a permanent abolition. The move is intended avoid uncertainty and prevent a slump in an already fragile housing market by encouraging people to put it on the market with less cost and hassle.
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20/5/2010
Subject: Jobs board on Linkedin
Description: New QSi jobs board
The QSi has a new jobs board on Linkedin.
Follow link below for details.
Associated Link : http://www.linkedin.com/groupAnswers?viewQuestions=&gid=2598081&forumID=5&sik=1274313405208
19/5/2010
Subject: Scottish Government Launches Consultation on Offshore Wind Energy Capacity
Description: “Strategic Environmental Assessment and Development Plan for Offshore Wind”
The Strategic Environmental Assessment and Development Plan for Offshore Wind sets out proposals for the short, medium and long term up to 2020 and beyond.
The proposals include:
Progressing the 10 sites for potential offshore wind energy development recently identified by The Crown Estate. Environment and technical assessment has concluded there are no significant environmental effects which cannot be avoided or reduced through appropriate project planning and development.
- The mapping of key technical and environment constraints to identify the most feasible areas for development, and further evaluate of these areas in relation to other users of the sea; most notably shipping and commercial fishing sectors.
A commitment from the Scottish Government to consider reviewing the plan every two years, in recognition of the fast pace of change within the offshore wind sector and marine environment.
The announcement comes as a new report claims Scotland's seas could supply domestic electricity needs many times over by 2050.
The Offshore Valuation Study says installed offshore renewables capacity could reach 68 GW in Scotland by 2050. This compares to Scotland's current installed renewable capacity of 3.7 GW.
Associated Link : http://www.scotland.gov.uk/News/Releases/2010/05/19100623
14/5/2010
Subject: Planning Permission Granted for the UK’s Tallest Building
Description: Landmark Bridge to be Built over the River Wear
Planning permission has been granted for Sunderland City Council to build the country's tallest bridge. This follows the decision of the council’s planning and highways committee to back the planning application for the Sunderland Strategic Transport Corridor Phase 2 project and its landmark bridge over the River Wear between Pallion and Castletown. Subject to further necessary permissions, construction work could begin early in 2012 with the roads and bridge open by 2015.
The design of the bridge came from local architect Stephen Spence and structural engineers Techniker. The new Wear bridge project has support from the council's partner organisations including regional development agency One North East and city development agency Sunderland arc.
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14/5/2010
Subject: Adjudicator Only Had Jurisdiction over Part of Dispute
Description: Decision not Severable
The Volker-Stevin Joint Venture (VSJV) engaged Cleveland Bridge for works on the Dragon Liquefied Natural Gas terminal at Milford Haven. The services which Cleveland Bridge was to provide were specified in the Scope of Works, which stated:
"(1) Preliminaries (such as Structural overheads, machinery, supervision, planning, materials;
"(2) The preparation of fabrication drawings, including connection design;
"(3) The purchase of structural steelwork, including connection plates and all consumables;
"(4) The transfer to the painting shop, including painting with a 3 coat paint system as detailed in specification…;
"(5) The delivery of the fabricated steelwork to site and offloaded in an agreed location at the site premises;
"(6) Erection of Fabricated steelwork in an agreed manner onto prepared foundations including lining and levelling prior to grouting (by others)."
There were considerable variations and VSJV agreed Cleveland Bridge's final account at £4,687,500 of which £317,500 plus VAT remained due to Cleveland Bridge. Cleveland Bridge invoiced VSJV for £365,125, but this was not paid. One of VSJV's arguments was that a settlement agreement had been reached and so nothing further was due.
Cleveland Bridge issued an adjudication notice, but VSJV challenged the adjudicator's jurisdiction, arguing that the parties' contract was not a "construction contract" within the meaning of section 105 of the Housing Grants Construction and Regeneration Act 1996. VSJV participated in the adjudication without prejudice to its objection to the adjudicator's jurisdiction. The adjudicator rejected VSJV's defence, and awarded Cleveland Bridge the sum claimed, plus interest and her fees. The award was not paid, and Cleveland Bridge commenced in enforcement proceedings, and claimed summary judgement.
There were three issues for decision:
Whether the relevant works undertaken by Cleveland Bridge were "construction operations" within the meaning of s.105(1) of the Act;
Whether any part of the work, and if so which, came under s.105(2) and were not "construction operations".
To the extent there was a mixture of works which were and were not "construction operations", what the effect was on the enforceability of the adjudicator's decision.
WORKS FALLING UNDER SECTION 105(2)
On the evidence, there were substantial works which were not "construction operations", despite Cleveland Bridge's submissions. It was common ground that the subcontract works were being carried out on a site where the primary activity was the production, transmission, processing or bulk storage of gas. The issue between the parties was whether the element of the work within the excluded operations was all the work to the "steelwork for the purposes of supporting or providing access to plant or machinery" or whether it is limited to the "erection" element of that steelwork.
The court had to approach the construction of the Act on the basis of the objective "meaning which the instrument would convey to a reasonable person having all the background knowledge that would reasonably be available to the audience to whom the instrument is addressed", applying the decision in Attorney General of Belize v Belize Telecom Limited, [2009] UKPC 10.
The relevant services under the subcontract included fabrication drawings including connection design; the purchase of structural steelwork including connection plates and all consumables; painting; delivery of fabricated steelwork to site and off loading and the erection of fabricated steelwork. All this work would form "construction operations" within section 105(1).
The court accepted that the value of pieces of plant would form the major part of supply and installation contracts whilst the value of the installation part would be much smaller. However, the general position under section 105(2)(d) was that the operations of the manufacture and delivery to site of equipment, plant or machinery would be excluded. When installation is included it will not be excluded from the provisions of the Act. In such circumstances it was clear that there was a distinction between "manufacture or delivery to site" and "installation" The court rejected that the words "assembly, installation… of plant or machinery" in section 105(2)(c) would include "manufacture or delivery to site" when those words were not used in that way in section 105(2)(d). That being so, if "assembly, installation…..plant or machinery" in section 105(2)(c) did not include "manufacture or delivery to site of ….plant or machinery", there was no reason why "erection… of steelwork" should include "manufacture or delivery to site of….. steelwork".
The issue was whether the word "erection" only covered operations in lifting and connecting the steelwork after it has been delivered to site or whether it also included the preliminary stages starting with the fabrication drawings, leading to the steelwork fabrication and then the delivery of the steelwork to site. The judge found that the wording was unambiguous, and that there was no absurdity in limiting the excluded operations in section 105(2)(c) essentially to operations which were carried out on-site at the process engineering site.
The only operation which was excluded from being a construction operation by section 105(2)(c)(ii) was the erection of the steel work for the piperacks and pipebridges and not the prior activities of fabrication drawings, off-site fabrication or delivery to site of the fabricated steelwork. Cleveland Bridge was correct in its approach to the division between construction operations and excluded operations in relation to the services under the subcontract.
THE EFFECT OF THE DIVISION OF WORK ON THE ADJUDICATOR'S DECISION
By section 104(5), the Act contemplated that there could be a situation where one contract included both construction operations and operations excluded by section 105(2). The right to refer disputes to adjudication and the associated provisions would only apply to the present subcontract insofar as the subcontract related to construction operations. The court then turned to the doctrine of separability applied in the context of section 104(5).
In applying the adjudication provisions to only part of the agreement, there were a number of issues, including the definition of "dispute", and whether in the present case there was one dispute or two. From the notice of adjudication and the referral, it was clear that the dispute which was being referred was VSJV's failure to pay the £317,000. This was one dispute i.e. whether that sum was due and payable. This depended on the resolution of the effect of the settlement agreement. The effect of section 104(5) was that the whole dispute could not be referred to adjudication. This did not make the dispute two disputes; it meant that part of the dispute was referable and part of it was not. The effect of section 104(5) was that the adjudicator had not had the jurisdiction to decide the whole of the dispute referred to her, just the part relating to construction operations. There was nothing preventing an adjudicator making a decision on that part of the dispute over which he or she had jurisdiction.
SEVERABILITY OF THE ADJUDICATOR'S DECISION
Having found that the adjudicator only had jurisdiction over part of the dispute, it followed that her decision on the entire dispute was one for which she did not have jurisdiction. Part of the dispute referred to her had been within her jurisdiction and part had been outside it. As a result, the decision was invalid and could not be enforced.
Since the adjudication concerned a single dispute, the parties' implied agreement to comply with that decision by virtue of paragraph 23(2) of the Scheme for Construction Contracts did not apply to the present decision. The parties had agreed that valid decisions would be binding, but not that an adjudicator's findings on issues leading up to that binding decision were themselves individually binding and enforceable.
Copyright: Building Law Information Subscriber Service 2010.
Associated Link :
12/5/2010
Subject: Bilfinger and Berger to Convert Coal Plant to Biomass
Description: First Project of its Kind
The 180MW Rodenhuize power plant, near the Belgian town of Gent, will see a unique conversion from coal to biomass, the first of its kind on a conventional power plant of this size. The plant which is operated by Electrabel, GDF Suez Group, to use the burning of wood pellets by German contractor Bilfinger and Berger. In addition to biomass, excess blast furnace gas from a neighbouring steel plant will also be used for future power generation. The power plant generates power for the equivalent of 320,000 households. The order has a volume of €20 million.
The services provided by Bilfinger Berger Power Services will include the conversion of 24 existing burners and rehabilitation of ventilation ducts as well as the delivery and installation of 12 new burners for the blast furnace gas. Conversion works are scheduled for completion in spring 2011.
Associated Link :
11/5/2010
Subject: Crown Estate Approves Offshore Suffolk Wind Farm
Description: Planning Decision Expected in 2012
The Galloper Wind Farm, by RWE npower renewables and Scottish and Southern Energy (SSE), will be one of the first to go through the application process of the Infrastructure Planning Commission (IPC). The project is expected to have an installed capacity of approximately 500 MW and the turbines would be constructed in water depths of 30 to 40 metres. The area to be developed is situated in two arrays 30 km from the Suffolk coast. It is adjacent to the site where RWE npower renewables and SSE are constructing the Greater Gabbard Offshore Wind Farm, a 500 MW project planned to be finished in 2012.
Associated Link :
11/5/2010
Subject: Second Stage of £24m Wirral Scheme Gets Funding
Description: Deal with HSBC
The second stage of a major mixed-use regeneration scheme on the Wirral has taken a step forward after developer Neptune Wirral Ltd signed a £24 million funding deal with HSBC. Plans for the second phase of the New Brighton project include a supermarket, hotel, cinema, restaurants, cafes and bars, a watersports training centre, model boating lake and a lido. The first phase of the scheme was completed in 2008 with the construction of the 800-seat Floral Pavilion and Conference Centre. Bower & Kirkland have been appointed as the main contractor for the second stage of the development. In February, the North-West Regional Development Agency announced that it was to provide £3.9 million for Phase 2 after investing £3.6m in the first phase.
Associated Link :
8/5/2010
Subject: List of important Legal cases
Description: QS Legal Cases
List of Legal cases now on the website
Associated Link : http://www.theqsi.co.uk/doc/legal%20cases%20of%20interest%20to%20qss%20summary%20_2_.pdf
8/5/2010
Subject: List of Legal Cases
Description: List of Legal Cases
Legal Cases of Importance to Quantity Surveyors
Summary of Cases
No Title Subject Matter
1. Bodill v Harmail Singh (2007) Retention
2. Midlands Expressway v Carillion (2006) Provisional Sums
3. Cunningham v Collett (2006) Procurement; letters of intent; negligence
4. Mirant v Ove Arup (2005) Delays, Delay Analysis.Site Records
5. Dudley Corporation v Parsons and Morrin Ltd (1959 Variations; Contract rates; Errors in contract rates
6. Henry Boot Construction v AlstomCombine Cycle (2000) Variations; Contract rates; Errors in contract rates
7. Aldi Stores v Galliford (2000) Variations; Contract rates; Contract rates priced at Nil
8. Harvey (WS) Decorators v HL Smith (1997) Protection of Subcontract Works
9. PSC Freyssinet Ltd v Byrne Brothers (1997) Fitness for purpose; Reasonable skill and care
10 A and J Rogers v Northern Ireland Housing Executive 1998) Meaning of Extra Over in a BQ
11. G Lianakis AE v Dimos Alexandroupolis (2008) Procurement European Directive
12. SWI v P&I Data Services Ltd (2007) Lump sum contract; Fixed price contract
13. Reinwood v L Brown and Sons (2008) Set off; non completion certificate
14 Whittall Builder Company Ltd v Chester-le-Street (1985) Disruption; Measured Mile
15. Carrillion Construction Ltd v Felix (UK) Ltd (2000) Economic Duress; agreement reached by applying financial pressure
16 JDM Accord v The Secretary of State for the Environment (2004) Daywork where the records were unsigned
17 J&A Developments v Edina Manufacturing Ltd and others (2006) Procurement; Tender Procedure; Single Stage Tendering Procedure
18. Mowlem v Newton Street Ltd (2003) Guaranteed Maximum Price Contract
19. Euro Pools v Clydesdale Steel Fabrication Ltd (2003) Managerial time and cost relating to a breach of contract claim
20. City Inn Ltd v Shepherd Construction Ltd (2007) Extension of Time; Concurrent delays
21 Isovel Contracts Ltd v ABB (2000) Cheques Issued But Later Stopped
22. Attorney General for the Falkland Islands v Gordon Forbes Construction (Falklands) Limited (2003) Records and Their Importance
23. Co-operative Insurance Society v Henry Boot (2002) Ground Conditions; Subsoil Survey Provided by Employer
24. Siera Ltd v Sigma Wireless Communications Ltd (2007) Extension of time; Notice a Condition Precedent; Minutes of Meeting Not Adequate Notice;
25. Lobster Group Ltd v Heidelberg Graphic Equipment Ltd (2008) Mediation, Cost recovery
26. Blackpool and Fylde Aero Club Ltd v Blackpool Borough Council (1990) Procurement, Tenders
27. Cubitt Building and Interiors v Richardson Roofing (Industrial) Ltd (2008) Contract Formation Battle of the Forms
28. RTS Flexible Systems Ltd v Molkerei Alois Muller GmbH (2008) Letters of Intent
29. Brican Fabrications Ltd v Merchant City Developments (2003) Payment by Employer Direct to Subcontractor
30. Seck Controls Ltd v Drake and Scull Engineering Ltd (2000) Fair Valuation
31 Regus (UK) Ltd v Epcot Solutions Ltd (2008) Limitation clausesExclusion clauses
32. Multiplex Construction (UK)Ltd v Honeywell Control Systems Ltd (2006) Contractual Entitlement to Disclosure of Main Contract Settlement
33. Wharf Properties Ltd v Eric Cumine Associates (1991) Global Claims
34 Tyco Fire and Integration Solutions (UK) Ltd v Rolls Royce Cars Ltd (2008) Joint Names InsuranceDamage due to negligence
35 Musselburgh and Fisherrow Co-operative Society Ltd v Mowlem (Scotland) Ltd (2006) Delays which run in parallelGlobal ClaimsDominant Cause of LossApportionment
36. Shaw Engineering Ltd v DGP International Ltd (2005) VariationsDelaysTime at LargeDetermination
37. John Doyle Ltd v Laing Management (Scotland ) 2004 Global ClaimsConcurrent Delays
38. Collins ( Contractors ) Ltd v Baltic Quay Management Ltd (2004) PaymentFailure to payCourt of Appeal
39. Weldon Plant Ltd v The Commission for the New Towns (2000) Fair ValuationVariationsICE 6th Edition
40. Rupert Morgan Building Services Ltd v David Jervis and Harriet Jervis (2003) Construction ActPaymentSet Off
41. Bovis Lend Lease Ltd v FD Fire Protection Ltd (2003) Claim by contractor against subcontractorProof of sum claimed
42. Actionstrength v International Glass Engineering and St Gobain (2002) Payment direct to subcontractorsContracts of Guarantee
43. Shyam Jewellery Ltd v M Cheeseman (2001) Payment Failure to payRepudiation
44. Haden Young v Laing O’Rourke Midlands Ltd (2008) Contract FormationQuantum Meruit Payment
45. Fitzpatrick Contractors Ltd v Tyco and Integrated Solutions Ltd (2008) Contract Formation and InterpretationLimitation of Liability
46. George Fischer (GB)Ltd v Multi Design Consultants Ltd; Roofdec; Severfield Reece and Davis Landon and Everest (1998) Employer’s Representative’s DutiesDesign and Construct
47 Dinka Latchin Associates v General Mediterranean Holkins SA (2003) Working at Risk
48. Diamond Build Ltd v Clapham Park Homes (2000) Letters of Intent
49 VGC Construction Ltd v Jackson Civil Engineering Ltd (2008) Nebulous and Ill -Defined Claims
50 Galliford Try Infrastructures v Mott McDonald Ltd and Rowen Structures Ltd (2008) Novation; Economic Loss
51 Henry Brothers (Magherafelt) Ltd and Others v Department of Education for Northern Ireland (2007_ EU Procurement Rules
52 McDonnell Archive Storage Ltd v Belfast City Council (2008) EU Procurement Rules
53 McLauchlin and Harvey v Department of Personnel Northern Ireland (2008) EU Procurement Rules
54 Alan Auld Associates v Rick Pollard Associates and Another (2008) Consultancy serviceLate payment of feesRepudiatory conduct
55 Liberty Mercian Ltd v Dean and Dyball (2008) Liquidated DamagesPenaltiesSectional Completion
56 A E Yates Trenchless Solutions v Black and Veach Ltd (2008) Formation of ContractBattle of the FormsAcceptance by Conduct
57 Furmans Electrical Contractors v Elecref Ltd (2009) Distinguish between paid and unpaid invoiceWaiver of entitlement
58 Mead General Building Ltd v Dartmoor Properties Ltd (2009) AdjudicationEnforcement of decisionCompany Voluntary Arrangement
59 Linnett v Halliwell LLP (2009) AdjudicationLiability for Adjudicator’s fees
60 J B Leadbetter v Devon C. C (2009) ProcurementDuty or FairnessAmending Tender
61 Amaryllis Ltd v HM Treasury (2009) ProcurementThe Public Contracts Regulations 2006
62 A E Yates Trenchless Solutions Ltd v Black and Veatch Ltd (2008) Formation of a ContractAcceptance by ConductBattle of the Forms
63 Balfour Beatty Construction Northern Ltd v Modus Corovest (Blackpool) Ltd (2009) Enforcement of Adjudicator’s DecisionStay for MediationSet Off for Liquidated Damages
64 Stocznia Gdynia SA v Gearbulk Holdings Ltd (2009) Contract TerminationTermination at Common Law
65 Chartbrook Ltd v Persimmon Homes Ltd (2009) Precontract NegotiationsInterpretation of Wording in a Contract
66 Education 4 Ayrshire Ltd v South Ayrshire Council (2009) Extensions of Time
67 Mayhaven Healthcare Trust v DAB (2009) Suspension of work for non payment is it repudiation
68 Jim Ennis Construction Ltd v CSL (2009) Final Account Agreement
69 YJL London Ltd v Boswin Estates LLP (2009) Final Account Agreement
70 Costain Ltd v Bechtel Ltd (2005) NEC Contract; Duties of Project Manager; Need to Act Impartially
71 ERDC Group Ltd v Brunel University (2006) Letters of Intent
72 Costain Ltd v Haswell and Partners Ltd (2009) Existence of a ContractBreach of Contract
73 Lobster Group Ltd v Heildelberg Graphic Equipment Ltd and CAF (2009) Exclusion of Liability Clauses
74 Hart v Smith (2009) Adjudication Set Off
75 Ian Whittle Movers Ltd v Hollywood Express Ltd (2009) RestitutionUndue Enrichment
76 Fitzroy Robinson v Mentmore Towers and Others (2009) Naming of Key Personnel at Bid Stage
77 Yuanda (UK) Ltd v WW Gear Construction Ltd 2010) Adjudication- Legal costs of both parties paid by referring party
78 Miller Fabrications Ltd v D Pierce (Contracts) Ltd (2010) Bankers reference not a condition of the contract
Associated Link :
7/5/2010
Subject: Threat to leave RICS as QSs Set out Grievances
Description: Displeasure over Reporting Line and Lowering of Standards
“Building” is reporting that the RICS’ QS group has drafted a five-page letter to the RICS governing council. The letter sets out a number of grievances including a new reporting line for QSs within the RICS and a perceived lowering of standards for obtaining chartered QS status.
The letter suggest that the QS faculty may quit he body. If this were to happen, it would be a would be a serious blow to the RICS because QSs make up 40% of its 100,000 global members, and with membership fees at £400 a year per chartered member, it would be a significant loss of income.
QSs have expressed concern for a number of years that their voice is not being heard, and that the RICS is being run as a commercial business. The letter is also suggesting that the Financial Services Authority replace the RICS as the profession’s regulator and says that a number of large firms have had discussions with the FSA about this.
Associated Link : http://www.building.co.uk/story.asp?sectioncode=29&storycode=3163093&c=1
4/5/2010
Subject: Adjudicator Erred in Determination of Own Jurisdiction
Description: Pilon Ltd. v Breyer Group plc, [2010] EWHC 837 (TCC)
Pilon, a refurbishment contractor, became the subject of a CVA in January 2009. Prior to that they had undertaken work for the defendant on a number of projects, including the Ealing project. There were disputes and Pilon left the site in October 2008. Nine months after the CVA. Pilon issued an interim application for payment in respect of some of the batches of work. When this was not paid, Pilon went to adjudication. The adjudicator awarded Pilon £206,617.74, together with VAT and interest. As the award was not paid, Pilon commenced enforcement proceedings.
The adjudication notice was limited to Pilon's application for interim payment in respect of batches 26-62. Pilon alleged that it was entitled to payment without any deductions because Breyer had failed either to pay or serve a withholding notice. Breyer denied that it had been obliged to issue such a notice, and that it was entitled to set off in respect of an overpayment on work batches 1-25.
The adjudicator had concluded that his jurisdiction did not extend to consideration of the alleged overpayments, since Pilon had deliberately limited his jurisdiction in the way it had formulated its adjudication notice to consider only those matters it had referred to him. Consequently, the adjudicator found that he could not take into account Breyer's defences.
He also concluded that Breyer's failure to issue a withholding notice did not mean that the Pilon was entitled to be paid the full sum applied for because no sums had been certified. The contract provided the mechanism by which Breyer could make claims or deductions and that clause 8(b) entitled Breyer to deduct costs incurred from sums otherwise due to Pilon so that no valid withholding notice was required.
Breyer accused the adjudicator of being guilty of breach of natural justice in refusing to consider its overpayment defence, and took the view that the decision was not binding, and that his decision on his own jurisdiction was not binding.
ADJUDICATOR'S DECISION ON HIS OWN JURISDICTION
There court emphasised that the parties need to either expressly agree that the adjudicator's decision on jurisdiction will be binding, or that there should at least be an implied agreement to that effect. Here, Breyer had made it clear that it disputed the adjudicator's jurisdiction at the time of the adjudication. It had warned that if its defence about the overpayments were not considered by the adjudicator, it would be breach of the rules of natural justice. Once the adjudicator had concluded that he could not consider that defence, Breyer had quickly pointed out that he had reached his decision based on a misunderstanding of his jurisdiction and that they were not going to be bound by his decision. Breyer had not agreed that the adjudicator's decision would be temporarily binding, and, therefore, the adjudicator had not had the power to make a binding decision on his own jurisdiction. As a consequence, the court could go on to consider the merits of Breyer's jurisdictional challenge.
THE ADJUDICATOR'S MISTAKENLY RESTRICTIVE VIEW OF HIS OWN JURISDICTION
An adjudicator must attempt to answer the question referred to him. This may consist of a number of sub-issues. Generally, if he has attempted to address those issues, his decision will be enforceable, whether it is right or wrong. If he fails to do this because he has taken a mistakenly restrictive view of his own jurisdiction, e.g. he has failed to consider a defence, his decision may be unenforceable because of breach of natural justice or on jurisdictional grounds. That failure must, however, be a deliberate one, not an inadvertent error.
In the present case, it was clear that the adjudicator had erred in failing to take into account Breyer's overpayment defence. Although he had correctly taken into account the content of the adjudication notice as setting out the boundaries of his jurisdiction, he had failed to appreciate that Pilon was not only seeking an interim valuation of batches 26-62, but also an interim payment of any amount deemed owing to them. Although the valuation required him to take into account batches 26-62 only, Pilon's claim for payment necessarily required him to also consider whether it was entitled to a lesser amount because of Breyer's overpayment allegations. It is not uncommon for an adjudicator to derive his jurisdiction purely from the wording of an adjudication notice, but the necessary implication of the words used must also be taken into account. The judge was in no doubt that Pilon had attempted to limit the scope of the adjudicator's jurisdiction so that batches 1-25 would not be taken into account, and had sought a tactical advantage by proposing an erroneous statement of the adjudicator's jurisdiction.
The adjudicator had deliberately and mistakenly restricted his own jurisdiction amounting to a breach of natural justice. This may also have affected how he had dealt with other issues where there were disputes of fact. The overpayment defence had been worth £147,774, or 71% of the sum eventually awarded, and it had been open to Breyer to put forward this defence. On any view, it was therefore of fundamental importance to the dispute as a whole. His error rendered his decision unenforceable.
SEVERABILITY OF THE DECISION
Because there was one dispute, the adjudicator's decision could not be severable. In addition, since the court had concluded that the adjudicator's jurisdictional error might well have affected other parts of his decision, the whole decision was tainted by his error.
SHOULD THERE BE A STAY
In the event that he had been wrong, the judge went on to consider whether there should be a stay because of Pilon's financial state and its potential inability to repay the award if required to do so. Pilon's financial plight had not been caused by Breyer's failure to pay the adjudication award. It owed £2.7m, so that even if Breyer paid the sum awarded, it would still be in debt to the tune of £1.7m. Its credit rating was bad, and all the evidence indicated that it would be unable to repay any sums paid to them because of the adjudicator's award. The interests of the creditors who had agreed to the CVA would come before those of other creditors. Given all this, the court would have awarded a stay.
Associated Link :
4/5/2010
Subject: Balfour Beatty Wins Contracts Worth £248m
Description: Network Rail Awards Contracts Across the UK
A four-year extension to 2014 to Balfour Beatty’s existing track renewal framework contract worth approximately £56 million in the first year of the contract, with a further £115 million to be awarded provided agreed targets are met during the first year of the contract. The contract involves the delivery of plain line rail and switches and crossings at junctions with associated signalling, electrification and drainage work for the whole of Network Rail’s South East territory covering the Wessex, Sussex, Kent and Anglia regions;
A four-year contract worth in excess of £50 million for the grinding of plain line rail across the UK, including the operation and maintenance of six of Network Rail’s fleet of rail grinders;
The £27 million Paisley corridor improvement project in Glasgow for the construction of a new third running line and associated overhead electrification additions and modifications, as well as the remodelling of a number of approach lines. The Paisley corridor runs from Gower Street Junction to Arkleston Junction. This contract is due for completion in 2012.
Associated Link :
1/5/2010
Subject: Commercial Manager/Contracts Manager (X5) - Crossrail
Description: Commercial Manager/Contracts Manager (X5) - Crossrail
Commercial Manager/Contracts Manager (X5) - Crossrail - Posted on qsi Linkedin
Following a significant project wins on major rail infrastructure projects in London, my client is looking to recruit to their growing consultancy business. We currently seek a high calibre Contracts Manager to join our client's team of experienced professionals. You will be a part of a £multi-million investment programme.
This role is based in London, paying £55-65,000 plus an excellent benefits package dependant on experience.
The principal function of this position is to be responsible for the post contract administration and management of all contract matters relating to the obligations and duties of both parties for all contracts awarded for a specific area of the works.
You will have knowledge/experience of the following:
Analysis of the full contract including conditions, scope and other works information
Development and management of appropriate mechanisms to monitor compliance with contract terms and conditions
Development and management of procedures to recognise and identify contract claims as they develop and manage timely resolutions
Maintaining a good working relationship with construction, engineering, project controls (cost and planning) procurement to support contract administration
The ideal candidate will have:
Experience of pricing, contract law, contract drafting, administration and negotiation of change orders
Thorough knowledge of contract administration (NEC 3) and quantity surveying
Experience of dealing with large scale, multi-discipline construction projects
NEC Contract experience is ideal.
You must be an energetic, enthusiastic and driven individual with strong negotiating and communication and interpersonal skills
To apply for this opportunity please contact Chirag Shah on 020 7419 5800 or chirag.shah@trsstaffing.com
Associated Link :
27/4/2010
Subject: Carillion Preferred Bidder on £27m Halifax Academy
Description: Academy will Include a Range of Renewable Initiatives
Calderdale Council has picked Carillion as preferred bidder on the £27m Trinity Academy in Halifax. Calderdale Council is acting as client on behalf of the Academy Trust along with co-sponsors the Diocese of Wakefield, Calderdale College and the University of Huddersfield, to design and construct the new Academy including the provision of ICT infrastructure. Trinity Academy will provide places for 1,200 students plus 300 places for sixth form students, serving the communities of Ovenden, Mixenden and Illingworth in Halifax.
The project will include a range of renewable energy initiatives including a biomass boiler and solar thermal array and will achieve a very good BREEAM rating (Buildings Research Establishment Environmental Assessment Method).acting as client on behalf of the Academy Trust along with co-sponsors the Diocese of Wakefield, Calderdale College and the University of Huddersfield, to design and construct the new Academy including the provision of ICT infrastructure. The Academy will include a range of renewable energy initiatives including a biomass boiler and solar thermal array and will achieve a very good BREEAM rating (Buildings Research Establishment Environmental Assessment Method).
Associated Link :
27/4/2010
Subject: Adjudicator’s Restrictive Determination of His Own Jurisdiction
Description: Decision Unenforceable
Pilon, a refurbishment contractor, became the subject of a CVA in January 2009. Prior to that they had undertaken work for the defendant on a number of projects, including the Ealing project. There were disputes and Pilon left the site in October 2008. Nine months after the CVA. Pilon issued an interim application for payment in respect of some of the batches of work. When this was not paid, Pilon went to adjudication. The adjudicator awarded Pilon £206,617.74, together with VAT and interest. As the award was not paid, Pilon commenced enforcement proceedings.
The adjudication notice was limited to Pilon’s application for interim payment in respect of batches 26-62. Pilon alleged that it was entitled to payment without any deductions because Breyer had failed either to pay or serve a withholding notice. Breyer denied that it had been obliged to issue such a notice, and that it was entitled to set off in respect of an overpayment on work batches 1-25.
The adjudicator had concluded that his jurisdiction did not extend to consideration of the alleged overpayments, since Pilon had deliberately limited his jurisdiction in the way it had formulated its adjudication notice to consider only those matters it had referred to him. Consequently, the adjudicator found that he could not take into account Breyer’s defences.
He also concluded that Breyer’s failure to issue a withholding notice did not mean that the Pilon was entitled to be paid the full sum applied for because no sums had been certified. The contract provided the mechanism by which Breyer could make claims or deductions and that clause 8(b) entitled Breyer to deduct costs incurred from sums otherwise due to Pilon so that no valid withholding notice was required.
Breyer accused the adjudicator of being guilty of breach of natural justice in refusing to consider its overpayment defence, and took the view that the decision was not binding, and that his decision on his own jurisdiction was not binding.
ADJUDICATOR’S DECISION ON HIS OWN JURISDICTION
There court emphasised that the parties need to either expressly agree that the adjudicator’s decision on jurisdiction will be binding, or that there should at least be an implied agreement to that effect. Here, Breyer had made it clear that it disputed the adjudicator’s jurisdiction at the time of the adjudication. It had warned that if its defence about the overpayments were not considered by the adjudicator, it would be breach of the rules of natural justice. Once the adjudicator had concluded that he could not consider that defence, Breyer had quickly pointed out that he had reached his decision based on a misunderstanding of his jurisdiction and that they were not going to be bound by his decision. Breyer had not agreed that the adjudicator’s decision would be temporarily binding, and, therefore, the adjudicator had not had the power to make a binding decision on his own jurisdiction. As a consequence, the court could go on to consider the merits of Breyer’s jurisdictional challenge.
THE ADJUDICATOR’S MISTAKENLY RESTRICTIVE VIEW OF HIS OWN JURISDICTION
An adjudicator must attempt to answer the question referred to him. This may consist of a number of sub-issues. Generally, if he has attempted to address those issues, his decision will be enforceable, whether it is right or wrong. If he fails to do this because he has taken a mistakenly restrictive view of his own jurisdiction, e.g. he has failed to consider a defence, his decision may be unenforceable because of breach of natural justice or on jurisdictional grounds. That failure must, however, be a deliberate one, not an inadvertent error.
In the present case, it was clear that the adjudicator had erred in failing to take into account Breyer’s overpayment defence. Although he had correctly taken into account the content of the adjudication notice as setting out the boundaries of his jurisdiction, he had failed to appreciate that PIlon was not only seeking an interim valuation of batches 26-62, but also an interim payment of any amount deemed owing to them. Although the valuation required him to take into account batches 26-62 only, Pilon’s claim for payment necessarily required him to also consider whether it was entitled to a lesser amount because of Breyer’s overpayment allegations. It is not uncommon for an adjudicator to derive his jurisdiction purely from the wording of an adjudication notice, but the necessary implication of the words used must also be taken into account. The judge was in no doubt that Pilon had attempted to limit the scope of the adjudicator’s jurisdiction so that batches 1-25 would not be taken into account, and had sought a tactical advantage by proposing an erroneous statement of the adjudicator’s jurisdiction.
The adjudicator had deliberately and mistakenly restricted his own jurisdiction amounting to a breach of natural justice. This may also have affected how he had dealt with other issues where there were disputes of fact. The overpayment defence had been worth £147,774, or 71% of the sum eventually awarded, and it had been open to Breyer to put forward this defence. On any view, it was therefore of fundamental importance to the dispute as a whole. His error rendered his decision unenforceable.
(Pilon Ltd. v Breyer Group plc, [2010] EWHC 837 (TCC))
Copyright: BLISS Books Ltd. 2010.
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23/4/2010
Subject: Roger Knowles Hot Tips
Description: Roger Knowles Hot Tips
Roger Knowles Hot Tips
The terms force majeure appears in a number of construction contracts, the JCT being a good example. If, due to a force majeure, work is delayed and affects the completion date, under a JCT form of contract, the contractor or subcontractor, will be entitled to an extension of time. But what is the meaning of force majeure? It is derived from the French Napoleonic Code. This being the case one may ask what is it doing in an English contract? Well you would need to ask the JCT and as it has been in the contract for such a long time, they may not have the answer.
The intention of the wording is to provide an escape from liquidated damages where unforeseen events have a dramatic impact on the performance of the contract. The matter concerned must be outside the control or responsibility of the parties. A good recent example is the suspension of air transport due to the volcano in Iceland. Those with long memories may recall the 1970’s, when due to a miner’s strike electricity was available on only three days each week. Epidemics such as swine flu, had it taken off, would be a force majeure. Whether the current economic climate constitutes a force majeure is debateable.
What is required in contracts is a definition of force majeure, which is what occurs in most PFI contracts. As for contract such as those produced by the JCT, where there is no definition, we will be left in some uncertainty as to whether a particular occurrence is or is not a force majeure.
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22/4/2010
Subject: St. Modwen Signs Section 106 Agreement for Corus Llanwern Redevelopment
Description: £1bn Community to Rise from old Steelworks Site
St. Modwen, the UK’s leading regeneration specialist, has signed the Section 106 Agreement with Newport City Council, allowing plans for the redevelopment of the former Corus Llanwern steelworks into a £1 billion urban community to commence.
St. Modwen acquired the 600 acre disused site from Corus in 2004 and has subsequently been granted full planning consent to progress the large scale remediation work and re-development plans to create Glan Llyn – a new residential and business community to the east of Newport.
Over the next 20 years, Glan Llyn will become one of the most significant newly-built communities in Wales. As well as providing around 4,000 new homes and 6,000 new jobs, Glan Llyn will include a new district centre with a variety of retail and leisure facilities as well as schools, a library, police station, supermarket and doctor’s surgery. The scheme will also have significant areas of play, amenity and sports space, as well as parks and lakes.
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22/4/2010
Subject: Gammon Lands Hong Kong Air Cargo Terminal Contract
Description: 2013 Completion Date
Gammon Construction Limited has been awarded by Cathay Pacific Services Ltd, a HK$4.2 billion (£353 million) air cargo terminal construction contract, in joint venture with Hip Hing Construction Co. Ltd. The contract for the new terminal at Hong Kong International Airport, Chek Lap Kok, will engage a workforce of over 1,000 at the peak of the project’s construction period.
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20/4/2010
Subject: Scottish Government Approves Four Hydro Schemes
Description: Electricity Supply for over 4,000 Homes
Four hydro schemes near Loch Lomond that can supply enough electricity for 4,100 homes have been approved by the Scottish Government.In July 2009, Osspower Ltd submitted applications for consent to construct and operate four hydro electric stations at Glen Falloch Estate near Crianlarich, with a combined generating capacity of 6.7 Megawatts (MW). These are: Allt Fionn (2.1 MW); Ben Glas (1.6 MW); Derrydarroch (2 MW); Upper Falloch (1 MW).
The site lies around 5 kilometres to the north of Loch Lomond and around 6 kilometres southwest of Crianlarich and is entirely within the Loch Lomond & The Trossachs National Park.
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20/4/2010
Subject: Morgan Sindall Creates New Division
Description: Amalgamation of Infrastructure and Construction Businesses
Morgan Sindall is to join its construction business Morgan Ashurst and infrastructure services business Morgan Est to create a new enlarged division under the Morgan Sindall name.
The decision to combine the two divisions comes at a time when the Group’s construction and infrastructure services businesses are increasingly working together on larger and more complex projects in sectors such as rail, aviation and defence. The new division will sit alongside Morgan Sindall’s three other divisions of fit out, affordable housing and urban regeneration which are supported by the Group’s specialist investment unit, Morgan Sindall Investments.
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20/4/2010
Subject: British Gas Acquires Hillserve
Description: Further Expansion of Insulation Business
British Gas has announced the further expansion of its new insulation business with the acquisition of Hillserve Ltd, a domestic insulation company serving the North West of England and Wales.
The deal, worth £5 million, represents another major step in British Gas' ambitions to build the country's leading insulation business, and help British Gas customers cut their energy use, their carbon emissions and their fuel bills.
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20/4/2010
Subject: Balfour Beatty Preferred Bidder for £300 million Ealing Building Schools for the Future PPP contract
Description: Programme Involves 14 Schools
The BSF programme involves the delivery of upgrades and expansions to 14 of the borough's schools, the construction of a new high school in north Greenford as well as significant investment in information communications technology (ICT) in three further schools.
The initial phase of construction, which will commence in October of this year, will involve the complete rebuild of Dormers Wells High School, Southall, and the partial rebuild and remodel of The Cardinal Wiseman RC School, Greenford. Upgrades of the other schools will commence between 2011-2013, with all construction work completed by 2014.
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20/4/2010
Subject: Atkins Signs One of the Biggest European Engineering Contracts
Description: Part of Fusion for Energy Consortium
As part of the Engage consortium, Atkins has signed one of the biggest engineering contracts in Europe with Fusion for Energy (F4E).
The consortium has been awarded the architect engineer contract for the building and civil infrastructures for ITER, the world's latest experimental nuclear fusion reactor in southern France. The Engage contract is valued at approximately 150 million Euros.
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16/4/2010
Subject: Amended Adjudication Clause Replaced by Scheme
Description: Bridgeway v Tolent Wrongly Decided
Yuanda was a curtain walling trade contractor working on the Park Plaza Hotel on Westminster Bridge. In 2007, Yuanda, and over 30 other trade contractors, contracted with the client WW Gear Construction Ltd. on the basis of a substantially amended JCT Trade Contract form. At the tender stage, Gear had proposed “standard” amendments, including two provisions relating to interest and adjudication, which were very heavily weighted in its favour.
Clause 4.11.2 of the contract was amended to provide a contractual rate of interest of 0.5% above the Base Rate, making the total interest rate at the time 6%. The adjudication provisions in the contract were deleted, and replaced by a new clause 9A which required the joinder of a member of the professional team in the event of a multi-party dispute.
The clause stated:
“The adjudication procedure will be the TeCSA Adjudication Rules (amended to require nomination by the RICS and joining of the members of the professional team in a multi-party dispute situation).
“Notwithstanding the provisions of the above procedure and regardless of the eventual decision in the adjudication or in any subsequent litigation the Trade Contractor agrees that should he make a reference to Adjudication under the terms of this contract then he will be fully responsible for meeting and paying both his own and the Employer’s legal and professional costs in relation to the Adjudication.”
Yuanda argued that clause 9A did not comply with section 108 of the Housing Grants Construction and Regeneration Act 1996 and should be replaced by the adjudication provisions in Part 1 of the Scheme for Construction Contracts. Yuanda submitted that the clause was punitive and limited its right to adjudication at any time.
The issues before the court were whether Yuanda had contracted on Gear’s standard terms of business and, if so, whether the contract was therefore an international supply contract within the meaning of section 26 of the Unfair Contract Terms Act 1977. If it were not such a contract, was it then “unreasonable” within the meaning of the Act, or should it be replaced by the Scheme for Construction Contracts as it did not comply with s.108 of the Act.
Section 3 of Unfair Contract Terms Act 1977 applies between contracting parties where one of them deals as a consumer or on “the other’s written standard terms of business”. This claim raised the question of what was meant by written standard terms of business. For the section to apply, the conditions had to be standard in that they were terms which the company in question used for all, or nearly all, of its contracts of a particular type without alteration. Yuanda had not dealt on Gear’s standard terms of business for the purposes of section 3 of the Unfair Contract Terms Act 1977, because Yuanda itself had negotiated some material alterations to the proffered “standard” terms so that it had not dealt on Gear’s “standard” terms. In addition, the evidence showed that few, if any, of the 30 odd trade contractors entered into contracts which were on the same terms. Nearly all of them appeared to have secured alterations to the Schedule of Amendments originally put forward by Gear during the pre-contract negotiations. Section 3, therefore, did not apply.
Gear sought to rely upon the decision in Bridgeway Construction Ltd. v Tolent Construction Ltd., [2000] 23 BLISS 1, in which there had been a provision in the contract that the party serving a notice to adjudicate should bear all of the costs and expenses incurred by both parties in relation to the adjudication, including but not limited to all legal and experts fees, together with the adjudicator’s fees and expenses. The claimants in that case argued that the relevant clauses were void because they tended to inhibit the contracting parties from pursuing their lawful remedies by way of adjudication Judge Mackay had disagreed.
Leaving aside what was meant by “multi-party dispute”, the judge concluded that if valid effect can be given to this provision, it would make the costs burden on the contractor when referring a dispute to adjudication even more oppressive because the employer’s costs would include those caused by the presence of another party to the adjudication. The clause did not limit the obligation on the contractor to pay only those costs of the employer that were referable to his participation in the dispute. Consequently, clause 9A would limit Yuanda’s freedom to refer disputes to adjudication at any time, particularly if the sums at issue were relatively small. Edwards-Stuart, L. J. concluded that the decision in Bridgeway had been wrong at least on the basis of the wording in the present contract. Clause 9A should be replaced by the provisions in Part 1 of the Scheme for Construction Contracts.
Yuanda relied on section 8(1) of the Late Payment of Commercial Debts (Interest) Act 1998, arguing that the rate of interest provided by clause 4.11.2, as amended in the Schedule of Amendments, was not a substantial remedy within the meaning of the Act and so the provision was void. Consequently, Yuanda claimed to be entitled to interest at the statutory rate i.e. 8% above the Base Rate. The judge considered that that it had not been Parliament’s intention to treat a contractual rate of interest for late payment as not meeting the “substantial remedy” test simply because it was materially lower than the statutory rate. The imposition of the statutory rate was the penalty that a contracting party paid for failing to provide a fair remedy for late payment to suppliers in its contracts .Taking into account a number of factors, it seemed clear to the court that 0.5% over base rate as a rate of interest for late payment could not be regarded as a substantial remedy within the meaning of the Act in the absence of special circumstances relating to the parties and the making of the contract. Given that there were no such circumstances here, it would not be fair or reasonable to permit Gear to take advantage of the fact that, during the pre-contract negotiations, Yuanda had failed to notice that the rate of interest had been amended.
(YUANDA (UK) CO. LTD. V WW GEAR CONSTRUCTION LTD.,
[2010] EWHC 720 (TCC))
Copyright: Building Law Information Subscriber Service 2010
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13/4/2010
Subject: Balfour Beatty Snatches Hartlepool BSF
Description: Awarded Initial £95m Scheme
The Hartlepool BSF programme involves the rebuilding and replacement of six schools over the next five years. Construction of the initial sample school, Dyke House Sports and Technology College, will begin this summer with completion by Christmas 2011.
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6/4/2010
Subject: Balfour Beatty Appointed as Preferred Bidder for Fire Station Upgrade
Description: £47m PPP to Upgrade 16 North West Fire Stations
Balfour Beatty Fire and Rescue, has been appointed as preferred bidder for a PPP contract valued at approximately £47 million by North West Fire and Rescue Services to upgrade 16 fire stations in the North West of England.
The North West Fire and Rescue Services comprises Cumbria County Council, Lancashire Combined Fire and Rescue Authority and Merseyside Fire and Rescue Authority.
The 25-year concession will involve the design, construction, funding and provision of facilities management for 16 community fire stations, of which seven are in Merseyside, five in Cumbria, and four in Lancashire. As well as modernised operational facilities, the stations will provide resources for community use, such as meeting rooms, multi-function lecture rooms and gyms.
The stations will be constructed on a mixture of new and existing sites in a range of locations from rural stations with retained crews, to busy inner-city stations with full-time crews. Construction of eight of the fire stations will begin in late 2010 with all construction work completed by 2013
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31/3/2010
Subject: OGC Issues Model Payment Clause
Description: 30 Day Mandatory Payment Terms
From 25 March 2010, it is mandatory for all government departments and non-departmental public bodies to include a contract condition requiring contractors to pay their subcontractors in 30 days. The Office of Government Commerce has issued a guidance note which includes a model clause. The Government Says that the Guidance Note is consistent with the Fair Payment Charter.
Associated Link : http://www.blissbooks.co.uk/p170828/Procurement-Policy-Note--Requirement-to-include-30-day-payment-clause-in-new-contractsAction-Note-7/10-25-March-2010/product_info.html
30/3/2010
Subject: Revised PPS 25 Published
Description: Planning Policy on Development and Flood Risk
Planning Policy Statement 25 (PPS25) sets out the Government's spatial planning policy on development and flood risk. This edition replaces the earlier version of PPS25 published on 7 December 2006. Tables D1 and D2 in Annex D have been revised to clarify the definition of functional floodplain, and to amend how the policy is applied to essential infrastructure, including water treatment works, emergency services facilities, installations requiring hazardous substances consent and wind turbines in flood risk areas.
The PPS 25 may be downloaded free of charge by clicking on the link below.
Associated Link : http://www.blissbooks.co.uk/p170820/Planning-Policy-Statement-25:-Development-and-Flood-Risk/product_info.html
30/3/2010
Subject: Horizon’s First Nuclear Plant to be Built at Wylfa
Description: Planning Application to be Submitted in 2012
Horizon Nuclear Power, thejoint venture beyween E.On and RWE npower, has chosen to progress with plans for a new reactor at Wylfa, on the Isle of Anglesey, as its first nuclear project in the UK, and is hoping to commission it in 2020. planning application for the site will be submitted in 2012 together with an application for a second power station at Oldbury-on-Severn, in Gloucestershire, will then be submitted once construction at Wylfa is underway. The company is in discussions with two consortia – Westinghouse/Laing O’Rourke/Shaw Group and Areva/Balfour Beatty/Rolls Royce – to deliver the reactors.
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29/3/2010
Subject: Siemens £80million plans to bring offshore wind production to the UK
Description: UK World’s Most Attractive Destination for Investment, says Government
The Government has welcomed Siemens plans to invest £80million in the UK for offshore wind production facilities, following the Government’s Budget announcement of £60m for a competition to develop manufacturing and assembly sites sites for the offshore wind industry. The government said that today’s announcement demonstrates that the UK is the world’s top destination for offshore wind energy investment. Strategic industrial intervention by the Government is unlocking this investment, generating a new industrial sector in the UK that could employ a high skilled workforce of 70,000 by 2020.
Siemens is the latest offshore wind manufacturer to announce plans for investment in the UK. Clipper has committed to build the world’s biggest wind turbines employing up to 500 people; Mitsubishi intend to invest up to £100 million in an offshore wind R&D facility, creating up to 200 jobs; and last week GE announced a €110 million investment which the company believe will create up to 1900 jobs.
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25/3/2010
Subject: WANTED - SAUDI
Description: JOB ADVERTISED ON QSI LINKEDIN
PLANNERS AND CONTRACT ADMINISTRATORS SAUDI
My Commercial Team on behalf of a leading Saudi Construction Company are looking to recruit good people for these roles
vacancies at all levels
cv in confidence in the 1st instance to jim@cerebra.co.uk
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25/3/2010
Subject: Bristol Port Expansion Approved
Description: Boost for Jobs
The government has given the green light to plans to build a deep sea terminal alongside the existing facilities at Avonmouth. The terminal will be built partly on land reclaimed from the River Severn and will enable Bristol to welcome some of the world's biggest container ships, which are currently unable to fit through the narrow lock entrances at the existing Avonmouth docks. The increase in capacity will mean the Port of Bristol will be able to handle an extra 1.5m twenty-foot equivalent container units a year enabling the port to serve regions outside the South West, such as the West Midlands, even more effectively.
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25/3/2010
Subject: Jarvis Calls in the Administrators
Description: Fall in Rail and Plant Work Blamed
Jobs are now under threat at the railway maintenance contractor, Jarvis after it called in the administrators. The recession has affected the contractor's workload, and it has been unable to come to an agreement with its secured lenders.
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25/3/2010
Subject: Gammon Wins Multimillion Pound Rail Contract
Description: West Island Line Project in Hong Kong
Gammon Construction, which is 50% owned by Balfour Beatty, has won its third contract on the West Island line project in Hong Kong, in a joint venture with Nishimatsu Construction Co. The MTR Corporation awarded the £407m contract for the construction of Hong Kong University and Sai Ying Pun Stations and a 2.2 kilometre running tunnel. The work will form a prominent part of the West Island Line which, when complete in 2014, will extend the existing Island Line from Sheung Wan to Kennedy Town.
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25/3/2010
Subject: Contractor Could not Justify Suspension
Description: Hall and Shivers v Van Der Heiden, [2010] EWHC 586 (TCC)
The claimants wanted to refurbish and remodel their London flat, and engaged Mr. Jan Van Heiden for the works. They moved into rented accommodation and left him to it. The works were delayed,. Deadlines were missed and it didn’t help when Mr. Van Heiden suddenly went on holiday for two weeks. Mr. Van Heiden had asked for and been paid in advance by the Halls. In fact, The claimants paid more than Mr. Van Heiden was entitled to.
There were further delays to the works. The 13th of October was identified as a completion date, and the claimants gave notice on the alternative accommodation which they were renting. The date slipped again forcing the claimants to enter into a series of short term lets.
It was only towards the end of October 2007 that the defendant attempted to justify the delays by claiming that there was a lack of instructions from the architect, although the evidence showed that there had been a series of e-mails containing instructions. The documents also showed that the contractor was not in control of the project.
The claimants finally moved back into their flat on 7 December, but it was obvious that the works had not been carried out in accordance with the contractor’s new programme. There was no heating. The bathroom and kitchen had not been finished and there were a number of other problems. The claimants lasted for two nights before moving to a hotel for three days. On their return, in addition to the continuing problems with the heating and lighting, the new flooring on the ground floor was defective, being poorly finished and noisy. Much of the joinery still had not been delivered.
The claimants asked for a programme for the works, and Mr. Van Heiden then asked for an extension of time of 10 weeks. Although he accepted that some items were outstanding, he maintained that practical completion had been achieved. The architect responded with a list of outstanding items which needed to be completed before a certificate of practical completion could be issued, and indicated that the extension of time claimed was excessive.
Mr. Van Heiden suspended the works alleging that he had not been paid, even though no certificate was outstanding and the architect had made it clear that any further claims for payment would be disputed. The architect was of the opinion that in fact Mr. Van Heiden had been overpaid. contract. Mr. Van Heiden. In the end Mr. Van Heiden’s contract was terminated and a replacement contractor appointed. The claimants sued.
As far as the court was concerned, there was no question that the works were defective. Indeed, in correspondence, Mr. Van Heiden had not challenged the suggestion that they were, and the expert evidence fully supported the claimants. Practical completion had not been achieved; there were patent defects in the works and they were not complete.
Mr. Van Heiden could only justify the suspension for non-payment if he suspended the works in accordance with clause 4.7 of the parties’ Minor Works contract, but there had been no outstanding progress payment certificate, and he had not given notice as required by the contract. The claimants had been entitled to terminate the contract, and were awarded damages.
Unfortunately, the claimants’ problems might not be resolved because Mr. Van Heiden is seeking an Individual Voluntary Arrangement, and in a separate and unsuccessful action, had tried to prevent the trial from proceeding.
Copyright: BLISS Books Ltd. 2010.
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22/3/2010
Subject: Britain’s First Trolleybus Scheme for Construction Contracts Planned for Leeds
Description: Government Pledges £235m of Funding
Plans for the country’s first modern trolleybus system have Programme Entry status from Government. If approved, the system will deliver a high-quality rapid transport system similar to those in Athens and Lyon, to transport people into Leeds city centre. The Department of Transport is to stump up £235m with the remainder coming from local authorities. The scheme would see the construction of a new entrance over the River Aire providing easy, and step free, access to the station by way of the Western Footbridge. This would improve access from the south to the station, enabling passengers to enter the station without going through the Neville Street tunnel and the Rotunda steps, or New Station Street in the case of those needing step-free access, thus reducing journey times for those wanting to visit the south of the city.
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22/3/2010
Subject: DCLG Publishes Building Regulation Amendments
Description: Amendments to Approved Dcouments B and L1 and L2
The amendments relate to fire safety and the conservation of fuel and power. The circular and related amendment slips may be downloaded from: http://www.communities.gov.uk/documents/planningandbuilding/pdf/1507285.pdf
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19/3/2010
Subject: Pay-When-Paid Clause Inoperative
Description: William Hare Ltd. v Shepherd Construction Ltd.
Coulson, J. had held that Shepherd Construction could not rely upon “pay-when-paid” clause to refuse to pay Hare £996,683.35 following the administration of the employer Trinity Wakefield. Ltd. The issue also affected a number of other subcontractors on the project. The “pay-when-paid” clause had been drafted by Shepherd’s solicitors for insertion in a standard form of subcontract. The clause had stated that Shepherd would not be liable to make further payments to the subcontractor in the event that the employer or anyone else responsible for paying Shepherd became insolvent or went into administration, or was the subject of a winding-up order. The clause defined the different methods of becoming insolvent:
“32.2(sic) For the purposes of clause 32.1 a company becomes insolvent:
“32.2.1 On the making of an administration order against it under Part II of the Insolvency Act 1986;
“32.2.2 On the appointment of an administrative receiver or a receiver or manager of its property under Chapter 1 of Part III of that Act or the appointment of a receiver under Chapter 2 of that Part;
“32.2.3 On the passing of a resolution for voluntary winding up without a declaration of solvency under section 89 of that Act; or:
“32.2.4 On the making of a winding-up order under Part IV or V of that Act.”
Trinity had used the same clause in their subcontracts with Hare and C. R. Reynolds.
Trinity went into self-certifying administration, and Shepherd had sought to rely upon the clause to avoid paying the subcontractors. The judge had ruled that the clause could not apply because Trinity had not become insolvent within the meaning of the clause because there had been no order of the court. Shepherd argued that because the drafting of the clause had not taken into account the subsequent amendments to the Insolvency Act brought about by the Enterprise Act which had introduced the self-certifying method of administration, the clause should be construed as covering all the routes to administration.
Shepherd sought to show that the judge’s assumptions had been unrealistic, and argued that any reasonable person would have known about s.113 of the Housing Grants Construction and Regeneration Act 1996 and its amendment and would have appreciated that something had gone wrong with the drafting of the clause. Shepherd produced statistics to show that the majority of administrations were “self certified” to support its argument that any reasonable person would have realised that the drafting of the clause was not correct.
The court found that “pay-when-paid” clauses were made ineffective unless the third party was insolvent, and “insolvency” was defined by reference to the ways in which a company could become insolvent. For a main contractor to have an effective “pay-when-paid” clause, he would have to identify the way in which the third party employer became insolvent by reference to the definition in the legislation. If the main contractor chose a way which was not in accordance with the legislation because the provision had been wrongly drafted, the court saw no reason why, no matter how obvious it was, that the principles in Investors Compensation Scheme Ltd. v West Bromwich Building Society, [1998] 1 All ER 98, would help him out. There was no evidence that it had been realised that an error had been made in the clause. As it stood, the clause did work as it stood, it was just that the number of court orders made was tiny compared with the number of self-certifying administrations. The clause did not share the risk of insolvency, it was simply relieving Shepherd of any liability to pay. If Shepherd wished to rely upon such a clause, it was up to them to get it right. If a party wishes to relieve itself of a legal liability, clear words are needed to do so.
Copyright: BLISS Books Ltd. 2010
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16/3/2010
Subject: Theale Advertises QS Framework
Description: Three-Year Framework
Theale NHS Trust is advertising a framework to provide quantity surveying services for a range of projects, including providing estimates from complex data, drafting bill of quantities and cost forecasts for civil engineering works. The value of the services provided during the duration of the framework is between £80,000 and £180,000.
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15/3/2010
Subject: Every Little Helps Tesco
Description: QS and Design Work to Outsourced to India
Tesco has started training Indian architects and QSs to work on its UK projects, Building has learned. The retailer flew the workers to Britain last year, where they were trained in UK architecture and quantity surveying skills. Tesco says that the Indian consultants were only being used until the planning stages of the developments, and the work would revert to British companies after that. Despite Tesco assurances, construction consultants in the UK are worried about the impact of this. A Construction Industry Council survey shows that 54% of the respondents are continuing to suffer from falls in income.
One of Tesco’s rivals said that they had rejected this move because it wasn’t “right”.
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15/3/2010
Subject: Drivers Jonas and Deloitte Complete Merger
Description: New Firm Called Drivers Jonas Deloitte (DJD
The merger between accountancy firm Deloitte and commercial property consultancy Drivers Jonas has been completed.The new firm, called Drivers Jonas Deloitte (DJD), will employ 700 staff and add a specialist real estate advisory arm to the existing business.
John Adams, partner and head of the Manchester office of Drivers Jonas Deloitte, said: “It is clear that there is enormous potential for our combined advisory services in the North West. We are all eager to begin working with our new colleagues to identify further synergies across the region.”
The Drivers Jonas Deloitte team is currently advising Lancashire County Cricket Club on redevelopments at its Old Trafford stadium, as well as the new £36m regeneration of Chetham’s School of Music in Manchester and the Mayfield civil service office campus near Piccadilly Station.
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9/3/2010
Subject: Revised Plans Submitted for €80m Cork hospital
Description: Private Developer Plans 930-bed Private Hospital
Owen O’Callaghan has submitted revised plans for an €80 million 930-bed private hospital in Cork which, if granted planning permission, will create up to 300 permanent jobs. This revised application comes three months after An Bord Pleanála refused permission for an earlier application by the same developer to build a private hospital on a site adjacent to Jurys Hotel on Lancaster Quay on the Western Road. Mr. O’Callaghan says that the revised application takes account of the concerns expressed by An Bord Pleanála, and that the project was ready to start at once if planning permission was given.
Associated Link :
9/3/2010
Subject: Adjudication and Framework Contracts
Description: Adjudicator's Jurisdiction Challenged
AMEC was awarded just under £1m by an adjudicator, and now sought to enforce the decision. The claim arose from a framework agreement for construction and maintenance work. Each separate package of work was the subject of a separate order, referred to in the papers as a “works order” or “works contract”. There were over 300,000 such orders made under the framework. The parties’ contract provided that any dispute was to be governed by the Institution of Civil Engineers’ (ICE) Adjudication Procedure.
Thames Water Utilities Ltd. (TWUL) resisted enforcement on the grounds of breach of natural justice, lack of jurisdiction, and the adjudicator’s alleged failure to deal with the issues put to him.
AMEC had claimed that it was not being paid in accordance with the payment provisions in the framework agreement. In Application no. 57, it made an aggregated claim for sums due across a wide range of works contracts, as envisaged by clause 9.1.1 of Annex 2 to the Framework Agreement. TWUL responded with an aggregated withholding notice, which set out a number of alleged set-offs and defences to AMEC’s claims. On 30 October 2009, AMEC issued a notice of adjudication and Mr. Don Rodgers was appointed as adjudicator.
The court considered the bases for challenging an adjudicator’s decision, and the possible differences in enforcement where the adjudication is under the Housing Grants Construction and Regeneration Act 1996 and where it is under express contractual provisions. The court rejected any suggestion that there was any difference between the two .in principle. In the court’s view, the only potential difference would be a matter of emphasis only, such as where the rules to which a contractual adjudication may be subject expressly permit a particular procedural step, or grant the adjudicator a specific power, which would not otherwise be regarded as typical or implied by the Scheme.
TWUL’s main challenge to the adjudicator’s jurisdiction was that the dispute referred to him had not arisen under the framework agreement but under the series of individual works contracts. Since the adjudicator had been appointed under the framework agreement, and conducted the adjudication in accordance with the ICE Adjudication Procedure, TWUL argued that he had had no jurisdiction.
This argument was rejected for two reasons. The parties’ dispute concerned the validity of AMEC’s Application no. 57 claim which had been made under clause 9.1 of the Framework Agreement and also clause 19.2 of the works contracts which specifically referred back to the Framework Agreement. AMEC’s claim for payment therefore arose under the Framework Agreement. The dispute was also concerned with the validity of TWUL’s withholding notice which had been served in accordance with clause 9.5 of the Framework Agreement so that its defence to AMEC’s claim also made express reference to the terms of the Framework Agreement. Even if the relevant contract were not the Framework Agreement but the works contracts, the adjudicator had not been necessarily deprived of jurisdiction because clause 2 of the conditions of each works contract provided that the Framework Agreement would be incorporated into them. Therefore, as long as the works contracts did not contain a different dispute resolution mechanism, the one contained in clause 12 of the Framework Agreement would be incorporated into the works contracts, and this would have given the adjudicator jurisdiction. In that eventuality, could be a problem about referring multiple disputes. Both the works contracts and the Framework Agreement contained clauses which pointed back towards a dispute arising out of an aggregated application and/or an aggregated withholding notice only being resolved by the adjudicator appointed under the Framework Agreement. The works contracts did not have an express and separate dispute resolution provision. The provisions of the Scheme could not be incorporated into the works contracts because the express terms of the Framework Agreement were incorporated into each works contract.
The court was satisfied that the present dispute had arisen under the Framework Agreement and that the adjudicator had been properly appointed. The consequence of this was that TWUL’s further submissions that the ICE Procedure did not comply with the Construction Act and that multiple disputes had been referred to the adjudicator because of the series of works contracts were irrelevant.
The court then turned to TWUL’s argument that the adjudicator had acted in breach of the rules of natural justice. TWUL submitted that the adjudication had been too big and complex for it to be properly resolved at adjudication, and the adjudicator failed to take account of TWUL’s further response which it had served on 21 December 2009 and all its cross-claims and set-off.
Previous authority established that the size and complexity of an adjudication was not in itself sufficient to found a complaint of breach of natural justice. The correct test to be used by an adjudicator had been identified in CIB Properties Limited v. Birse Construction Limited, [2005] 1 WLR 2252. TWUL’s further response had been served just two days before the adjudicator had been due to give his decision. In those circumstances, the adjudicator had not acted in acted in breach of natural justice if he had just glanced at the material in order to see if it contained anything of real significance. In an adjudication with a tight timetable, an adjudicator is not obliged to consider in detail a second round submission or pleading, served very late in the adjudication process. His overriding obligation is to complete his decision within the time limit. If he cannot consider a document provided so late in the day in any detail, that was just a consequence of the adjudication process. Although a judge or arbitrator would be required to consider a party’s submissions in detail, an adjudicator’s overriding obligation was to comply with the time limits.
In any event, the adjudicator had taken account of the further response. The basis of the allegations that he had not was that he had made no reference to the further response in his decision. However, just because he had not referred to it, did not mean that he had not considered it. He had repeatedly stated that he had referred to all the documents, and had also said so specifically in an e-mail to AMEC’s solicitors. The court accepted that a statement by the adjudicator that he had had regard to all the documents was not necessarily definitive, but it was necessary to look at the decision as well. In the present case, the judge was satisfied from the 28 page closely typed decision that the adjudicator had taken all the documents into account.
Amec Group Ltd. v Thames Water Utilities Ltd. [2010] EWHC 419 (TCC)
Associated Link :
7/3/2010
Subject: ROGER KNOWLES HOT TIPS No 2
Description: ROGER KNOWLES HOT TIPS No 2
The QSi would like to thank Roger Knowles for allowing us to publish this Hot Tip.
NB – Roger has also supplied 75 recent case studies ( 500 to 1000 words) and other QS Hot Tips.
These can be found on http://www.theqsi.co.uk
ROGER KNOWLES HOT TIPS No 2
Getting Paid Promptly
In times like these, the old saying that Cash is King has never been more apt. Getting the job completed is always at the front end of the mind, but if survival is to be assured, then we all need to “think money” When the cash runs out, the curtain comes down. Prices are under the cosh, but we never should lose sight of the fact that if you are being offered work, there must be a good reason. It is usually a combination of good quality work, ability to complete in the time scale and lowest price. Before signing on the dotted line, having had the price beaten down, it is worth chancing your arm to improve the payment terms. Some offers of work come with a 60 days and often more payment terms, which compares badly with the normal 14 or 17 days provided in many standard contracts. Contrary to what many believe, a negotiating position is at its best when the price has been accepted, the person offering the work is under time pressure to get the project started, but the deal not finally clinched. A threat to walk away from the project, unless the payment terms are improved, may be considered by many to be a high-risk strategy, but often a job on lousy terms is worse than no job at all.
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6/3/2010
Subject: QSi Linkedin Forum
Description: QSI Linkedin Forum
The QSi now habe a Linkedin forum.
http://www.linkedin.com/groups?gid=2598081&trk=hb_side_g
Associated Link : http://www.linkedin.com/groups?gid=2598081&trk=hb_side_g
4/3/2010
Subject: NEW LINKEDIN SITE
Description: NEW LINKEDIN SITE
Just a note to let you know that QSi have
started a Linkedin site.
Not only is it a useful forum, you can also make sure that you stay in the loop
http://www.linkedin.com/groups?gid=2598081&trk=hb_side_g
Why not join us on Linkedin and Link In
Associated Link : http://www.linkedin.com/groups?gid=2598081&trk=hb_side_g
4/3/2010
Subject: Balfour Beatty to Sell Two PPP Concessions
Description: Interests in Health and Waste Water PPPs
Balfour Beatty has agreed to sell a 23.9% interest in the Edinburgh Royal Infirmary PPP concession and of its entire 50% interest in the Aberdeen Waste Water PPP concession, both to funds managed by AMP Capital Investors Limited, the Australian wealth management company, for an aggregate consideration of £24.3 million. The transactions will generate a profit of c. £21 million.
Associated Link :
3/3/2010
Subject: £364.4m for Isle of Wight to Improve Roads
Description: Money Given for PFI Road Repairs
The Transport Minister, Sadiq Khan, has announced government funding of £364.4m for the Isle of Wight to enable it to upgrade and maintain its roads under a 25-year PFI contract. The funding will go towards road surface improvement and maintenance, and improvements to street lighting.
Associated Link :
3/3/2010
Subject: Southend NHS University Trust Advertises Multimillion Pound Framework Contracts
Description: Fifteen Frameworks Advertised
The Southend University Hospital NHS Foundation Trust is advertising multimillion pound consultancy framework services contracts for its estate, including quantity surveying and CDM Co-ordinator services.
Associated Link :
3/3/2010
Subject: Manchester Council Considers Buying Stake in Spinningfields
Description: Investment Would Allow Next Phase to Proceed
Manchester City Council is considering an offer from Allied London which would allow it to acquire the freehold in the development sites at 1 and 2 Hardman Square and 2 and 3 Hardman Boulevard - and then lease them back to the developer. The investment would give Allied London the funding to build the 580,000 sq ft next phase of Spinningfields by 2015 and put it on the market speculatively this summer. A lack of bank funding has called a halt to the development, which was intended to be a key site for Manchester and the North West of England.
Associated Link :
2/3/2010
Subject: Cyril Sweett Buys Indian and Australian Consultant
Description: Further Expansion into Asia
Cyril Sweett had bought Indian and Australian consultants Padghams for £1.3m. The companies provide QS services to the health and education sectors in Australia and offer general services in India, with 12 fee earners in Australia and 43 fee earners in India. Most of its staff are engineers by training. Cyril Sweett will combine its existing operations in Australia with the firm immediately.
Cyril Sweett has also announced that it is forming a joint venture company and broader global alliance with Asian QS Widnell Ltd. It said Cyril Sweett and Widnell will co-operate together to develop business opportunities in the region, and the joint venture will trade under the brand name Widnell Sweett Limited. Sweett says that this will enable it to gain a foothold in the lucrative Chinese markets.
Associated Link :
28/2/2010
Subject: Profits Warning at Baqus Causes Shares Slide
Description: Cancelled Projects Blamed
Building consultant and quantity surveyor Baqus Group Plc has issued a profits warning, blaming the subdued state of the construction industry. In a trading update, it said public and private sector projects had been delayed or cancelled due to government spending cuts and a lack of bank lending. The shares fell more than 24 per cent in early trading to 2.75p. London-based Baqus, which has an office in Chorlton, Manchester, said results for the year to June 30, 2010 were expected to be below current market expectation.
Baqus, which had a registered office in Northwich until last September, was set up by North West entrepreneur Roger Knowles and has grown by acquiring small to medium sized surveying firms including Fletcher McNeil, which had a Manchester office, and the Nigel Rose Group, which had a branch in Warrington.
Associated Link :
22/2/2010
Subject: Peel Advertises Stadium Contract
Description: Joint Venture between Peel Holdings and Salford City Council.
The stadium 12,000-15,000 capacity stadium is to be built on a 18 hectare site is bounded by the Manchester Ship Canal. There are to be four stands with room for expansion, plus training facilities. The project cost is estimated at between £12m and £15m.
Associated Link :
22/2/2010
Subject: Korea’s HanmiParsons JV helps builders manage construction cost
Description: Joint Venture with Turner and Townsend
A joint venture between HanmiParsons and Turner & Townsend has launched a new construction cost management service, designed to minimise costs continuously from the initial planning stage of a project to final delivery. Turner & Townsend say their service goes beyond traditional quantity surveying and is focused on predicting and analyzing costs at each stage. The company also provides risk management. In Europe and United States, the ability to inflate construction budgets due to unexpected design changes is limited, because costs are managed using quantity surveying techniques. Recently, foreign investors and developers who have Korean projects have begun to seek quantity surveyors companies that focus on limiting costs.
Associated Link :
17/2/2010
Subject: Balfour Beatty Appointed to Highways Framework
Description: One of Four Delivery Partners
Balfour Beatty has announced that it has been named as one of the four delivery partners for the Highways Agency’s framework contract to deliver its Managed Motorways schemes. The overall framework contract, which has a value of up to £2 billion, is to reduce congestion, improve safety and make journey times more reliable on key sections of England’s motorways.
The framework contract is expected to deliver the following Managed Motorways schemes by 2015 (subject to funding and completion of any relevant statutory processes):
M62 hard shoulder running between junctions 25 and 30 near Bradford
M1 hard shoulder running between junctions 32 and 35a east of Sheffield
M6 hard shoulder running between junctions 5 and 8 near Walsall, Birmingham
M60 hard shoulder running between junctions 8 and 12 east Manchester
M62 hard shoulder running between junctions 18 and 20 north of Manchester
M4/M5 hard shoulder running around Bristol from M4 Junction 19 to M5 Junction 17
Other schemes which improve capacity and traffic flow, using technology to make journey times more reliable, improve safety and provide driver information, could also be delivered under this framework contract.
Associated Link :
16/2/2010
Subject: Use of JCT Contracts Grows- Survey
Description: Latest “Contracts-in-Use” Survey Published
The latest RICS “Contracts in Use” survey shows that nearly 80% of projects commenced between January and December 2007 used a JCT standard form. This is an increase since the last survey in 2004. The Survey says that the vast majority of building projects used standard forms of contract (98 per cent), with JCT by far the contract family of choice (79 per cent by number), followed by the New Engineering Contract (eight per cent) and GC/Works (six per cent). The survey also revealed that 50 per cent of projects in the £10m to £50m value band use design and build, there is no apparent increase in partnering between 2004 and 2007, and there is little use of partnering arrangements in conjunction with standard forms of contract.
Associated Link :
15/2/2010
Subject: Plans for £137m West London Regeneration Scheme
Description: Planning Application Submitted
Rydon and 2Dominion are seeking outline planning permission from Ealing Council for the regeneration of the Green Man Lane estate in west London. The proposals envisage the demolition of 464 existing homes to make way for new properties for affordable rent, shared ownership and outright sale. There would also be new community buildings and facilities.
Associated Link :
15/2/2010
Subject: Worcester Advertises £180m Framework
Description: New Build and Refurbishment Projects
Worcester County Council is advertising a four-year £180m framework contract for new build and refurbishment projects. Three companies will be appointed to undertake construction on various education schemes office accommodation, fire and rescue facilities, health centres and police stations and custody suites. Specialist works such as forensic facilities, control centres, leisure facilities, cultural and adult residential and day care facilities may also be involved.
Associated Link :
12/2/2010
Subject: Davis Langdon Partners to Vote on US Takeover
Description: Aecom or Jacobs Possible New Owners
Davis Langdon’s partners are to vote on proposals on a possible takeover by either Aecom or Jacobs. “Building” is reporting that negotiations have been ongoing since before Christmas. Sources say that Aecom is more likely to be the victor, because its specialism in project management will sit more readily with DL’s quantity surveying services.
Full story at http://www.building.co.uk/story.asp?sectioncode=29&storycode=3158016&c=1
Associated Link :
11/2/2010
Subject: Lib Dems Announce WindTurbine Projects
Description: Shipyards to Become Offshore Wind Farms
The Liberal Democrats have announced that they would convert former shipyards into wind farms if elected. The proposal, which they say could create around 60,000 jobs, would allow port authorties on the North and Irish Seas to bid for money froma £400m fund to convert shipyards in towns such as Liverpool, Hull, Edinburgh, Aberdeen and Glasgow.
Associated Link :
11/2/2010
Subject: New Ferry Port Approved
Description: £200m Port Will be Relocated
Stena Lines is to move its operations from Stranraer to Cairnryan, just over two miles away, leaving an opportunity for the redevelopment 26 acres of waterfront at Stranraer. There has been a significant growth in passenger and freight traffic between Scotland and Northern Ireland, and this development will make this the third largest port in the UK. The new port will open in Autumn 2011.
Associated Link :
11/2/2010
Subject: Times report on Utility Warehouse
Description: Times Report on Utility Warehouse
Times confirms that Utility Warehouse is one of the best UK companies.
Cut you bills and help the QSi by switching your Phone, Gas and Electricity to Utility warehouse
quoting number B92260
Associated Link : https://www.telecomplus.co.uk/extranet/dlfiles/documents/Times_February_10_2010.pdf
4/2/2010
Subject: MSPS Examine Proposals for New Forth Bridge
Description: Signs of Deterioration in Original Bridge
Transport Scotland is to give evidence to Holyrood’s Transport, Infrastructure and Climate Change Committee on the bridge and Stage One of the legislation needed for the construction of a new Forth Bridge. The Scottish Parliament has to approve the proposals contained in last year’s Forth Crossing Bill. The proposed Forth Replacement Bridge is expected to cost between £1.6bn and £2.3bn at 2006 prices, and will take five years to complete. The existing bridge would be used for public transport, cyclists and pedestrians.
Associated Link :
3/2/2010
Subject: Knowles Hot tip 3
Description: Roger Knowles Hot tip 3 - Thanks to Roger for sending this in.
Roger Knowles Hot Tips No 3
Should You down Tools if Payment is not Forth Coming?
Securing payment is more difficult now than at any time in living memory. We are all familiar with the thousand and one excuses provided as to why the payment which was due hasn’t arrived. The general feeling among contractors and subcontractors experiencing difficulties with payment, is that they should down tools and walk off the site until payment has been made. Whilst this is a natural reaction, it is important to understand that whilst under the Construction Act there is an overriding entitlement to stop work if payment hasn’t been made on time, it comes with a set of rules which must be followed. It is necessary to serve a written warning notice, and once seven days have elapsed and payment still hasn’t arrived, there is then an entitled to suspend work. The notice must be sent to the other party to the contract. Without the warning notice, the unpaid party can find itself in the wrong and on the receiving end of a delay claim. If the work is on the critical path, the threat to suspend work often results in the arrival of the money. Where a contractor or subcontractor correctly suspends work, there is an entitlement to an extension of time for completion. Some conditions of contract, such as the JCT standard conditions also provide for payment in respect of loss and expense incurred as a result of the suspension
Associated Link :
2/2/2010
Subject: Skanska Wins Essex BSF PFI
Description: Contract worth £1bn
Skanska Infrastructure Development has beaten off Carillion to win the £1bn Essex Building Schools for the Future PFI scheme, under which it will assume responsibility for financing and the design and construction of new schools in the area for the 26 years from 2011. Skanska has the majority holding in a consortium which also includes RM plc, which will take care of the information and communication systems.
Three new schools will be developed in co-operation with the Essex Local Education Partnership, in which Skanska and RM are 80% shareholders. Skanska UK will undertake the design and construction of the schools.
Associated Link :
1/2/2010
Subject: JCT Tightens Terrorism Provisions
Description: Amendment Issued to Contracts
Terrorism provisions within JCT contracts have been amended. JCT (the Joint Contracts Tribunal) has issued an update to its standard forms of contract to rationalise a contractor’s liability for loss or damage on the project resulting from an act of terrorism.
The passing of the Terrorism Act 2000 has led to a gap emerging between risks excluded from insurance policies and risks covered by Pool Reinsurance (Pool Re). Pool Re is the default cover on a project where no terrorism insurance is specified – Pool Re is the insurer of the last resort, underwritten by the Treasury. Possible difficulties in complying with the requirements of its insurance Options A, B and C had previously been highlighted by JCT and the purpose of this update is to avoid them.
Associated Link :
29/1/2010
Subject: New QSi Ecademy and Linkedin sites
Description: New QSi Ecademy and Linkedin sites
The QSi now has a blog on Ecademy and Linkedin. Why not have a look at our new sites?
http://www.ecademy.com/module.php?mod=club&c=7066
http://www.linkedin.com/groups?gid=2598081&trk=myg_ugrp_ovr
Associated Link : http://www.ecademy.com/module.php?mod=club&c=7066
29/1/2010
Subject: Roger Knowles Hot Tip 2
Description: Roger Knowles Hot Tip 2
Log into our new QSi Ecademy site and read
Roger Knowles Hot Tip 2
Associated Link : http://www.ecademy.com/module.php?mod=club&t=1095666#endm
28/1/2010
Subject: Late Payment Problem Worsens
Description: ECA Urges Government to AccelerateNew Construction Act
The latest report from Experian shows that late payment is on the increase, with invoices being paid on average 20.61 days late. This is 4.5% higher than December 2008. The average payment time across all industries was 20.88 days. The Electrical Contractors' Association is urging the government to bring forward the publication of the secondary legislation required to bring section 8 of the Local Democracy, Economic Development and Construction Act 2009 into force. This section seeks to to improve payment practices.
Associated Link :
28/1/2010
Subject: NAO Warns of EDF's Undue Influence
Description: Governement Needs Contingency Plans
The National Audit Office is warning that EDF has a "potentially significant influence" over the UK's nuclear building programme, and that the government should have a conteingency plan in case EDF is unwilling to build the required power stations. EDF owns nearly half of the 11 sites which have been identified as potential nuclear power stations. The sites include Hinckley Point and Sizewell.
Associated Link :
27/1/2010
Subject: Changes to Limitation Periods Dropped
Description: Government Abandons Plans After Consultation
Following a consultation, the government has announced that it has abandoned plans to change limitation liability periods. The proposed amendments to liability periods would have reduced the current six years for a simple contract and 12 years for a deed, to a standard three-year limitation period for all contracts to run from the claimant’s “date of knowledge”. Lawyers had warned that the changes would have led to more disputes about whther a claim had been brought in time.
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22/1/2010
Subject: Public Procurement Challenge Thrown Out
Description: Court Rejects Application for Interim Injunction
B2Net responded to a tender issued by the defendant for the provision of IT goods and services, returning the Pre-Qualification Questionnaire (PQQ). The tender was for three Lots. After the defendant had evaluated the PQQS, it told B2Net that it had been unsuccessful, and would not be asked to submit a tender. At the debriefing, the defendant informed B2Net that it had scored the maximum available points for all but two of the criteria, the Quality Management System requirement and the breadth of experience. In these areas, B2Net scored 12 out of 30 and 45 out of 75 respectively.
To prove its previous experience, B2Net had been required to provide details of five example contracts from five different customers during the previous three years for Lot 2. The relevant part of the PQQ gave details of the information required, and then stated at the end: “Please note, no response to this question is required”. This was the only part of the PQQ which was optional. At the debriefing B2Net was told that out of the examples given, four of the contracts had not been awarded directly to B2Net and that this had been reflected in the marking under this section. B2Net pointed out that in answer to a question by another bidder which had been communicated to all, the defendant had stated that where a contract was placed directly, or owned or driver by the reseller, but a third party was used as an invoicing mechanism, a bidder would not be precluded from being award 5 points. B2Net stated that it had always provided its services directly to the client, and that it had used DSGI simply as a transactional partner providing an invoicing mechanism to satisfy procurement rules.
Subsequently, the defendant wrote to all bidders informing them that the question on “Growth of Business” in the PQQ had been challenged on the grounds of validity and had been removed. Consequently, the number of bidders which would be invited to tender would be increased. However, the defendant drew the qualifying line just above B2Net’s score. B2Net informed the defendant that it intended to challenge the scores it had been awarded and invited it to defer making any award. The main challenge was the validity of question L2c6 on previous experience.
B2Net sought an interim order preventing the defendant from continuing with the process. The court considered whether there was an issue to be tried as to whether the defendant had breached its obligations under the Public Contracts Regulations 2006.
The court concluded that for the defendant there was a justifiable difference between a prime contractor and a subcontractor. B2Net’s attempt to combine the two was weak. The court then turned to B2Net’s argument that damages would not be an adequate remedy because it was being barred from the opportunity to tender for the framework contract. The court applied the test in American Cyanamid C. v Ethicon Ltd., [1975] 1 All ER 504, the evidence pointed towards the conclusion that damages would indeed be an adequate remedy, more readily capable of calculation than many claims for damages for loss of business that came before the courts. Because of the weakness of B2Net’s case and because damages would not be an adequate remedy for the other parties who would be affected by the granting of an injunction, the court rejected the application.
Associated Link :
22/1/2010
Subject: Trinity Project Eats into Shepherd’s Profits
Description: Contractor Posts £1.5 million Loss
Shepherd Construction has posted a £1.5m pre-tax loss for the ear to June 2009 because of £26m of exceptional costs. The majority of this was due to financing problems on Wakefield’s Trinity Place project because of the recession. Some of the other charges related to company reorganisation and commercial property revaluation.
Associated Link :
22/1/2010
Subject: Negative Comments Prompt PBA Rethink
Description: JCT to Review Project Bank Accounts
The results of a consultation undertaken by the Joint Contracts Tribunal has showed that only 5% of parties have any experience of project bank accounts (PBAs), and only 30% of projects are likely to use them. There is some disappointment about the industry's lack of enthusiasm for PBAs, particularly since they are one of the Office of Government Commerce's weapons in the war against unfair payment practices. Despite the low uptake in PBAs, 90% of those responding to the survey thought that the PBA provisions would be suitable for use on their project. The JCT is taking on board some of the criticisms and concerns expressed with a view to possible changes to the PBAs.
Associated Link :
18/1/2010
Subject: Works Begins on 2014 Commonwealth Games Arena
Description: National Indoor Sports Arena for Badminton and Cycling Events
Construction work has begun on the National Indoor Sports Arena (NISA) and Sir Chris Hoy Velodrome, a venue which will host the badminton and cycling events at the 2014 Glasgow Commonwealth Games.
One of the biggest indoor sports facilities of its type in Europe, the NISA and velodrome will be located on a 10.5 hectare brownfield site close to Celtic Park in the East End of the city.
The complex will be the principal new dedicated sports facility for the 2014 Games and a national training centre for athletics, basketball, netball, track cycling and volleyball.
The venue’s highly flexible 5,000-seat indoor arena will be capable of staging international sporting events in a wide range of disciplines. The velodrome will house a 250m high-banked wooden cycle track and multi-use infield area. It will have a permanent 2,500 spectator capacity which will increase to 4,000 during the Games.
Associated Link :
18/1/2010
Subject: Local Authority Breached Statutory Duty
Description: Liable for Contribution for Removal of Support
Rushmoor Borough Council has been found neligent and in breach of statutory duty following the collapse of a house during works undertaken by Crowley Civil Engineers. The house collapsed when the support of a flank wall was removed during paving works. Crowley settled with the home owners, and then sought a contribution from the council. The court found that the Council should have undertaken adequate inspections which would have revealed that the foundations to the house were unsually shallow. The council was found to be 80% contributorily negligent.
Associated Link :
18/1/2010
Subject: Lewis Wind Farm Approved
Description: 150 Full Time Construction Jobs will be Created
A 33 turbine, 118 Megawatt (MW) wind farm at Muaitheabhal in the Western Isles, providing green electricity for 55,000 homes, nearly four times the number of homes on the islands, has been given the go ahead by Energy Minister Jim Mather.
Associated Link :
18/1/2010
Subject: BAM Wins Multimillion Pound Contracts
Description: Beats Laing to Chiltern Railways’ Evergreen project.
BAM Nuttall has won a £190m contract for phase 3 of the Chiltern Railways’ Evergreen project, which, it is believed will involve upgrading of about six stations between Oxford and London and linking two lines.
BAM has also recently won a £250m contract for the revamp of Tottenham Court Station in partnership with Taylor Woodrow.
Associated Link :
18/1/2010
Subject: Enfield Seeks Development Partner
Description: Plans for £80m Housing Development
The London Borough of Enfield is looking for a development partner to build more than 360 homes for its Ladderswood Way estate redevelopment. The core contract comprises of building 236 private housing units for sale and 129 social rented units as well as associated landscaping and construction of social infrastructure. Three companies are to be selected by competitive dialogue. The deadline for tenders is 18 February.
Associated Link :
12/1/2010
Subject: Deed Incorporated Terms of the Scheme
Description: Party no Entitlement to Set-off from Adjudicator's Award
The Technology and Construction Court in Bristol has found that the parties' amendment to their Model Conditions of Contract for Repair Modification and Rehabilitation of Boilers and Associated Plant to provide for adjudication did not entitle a party to set off from an adjudicator's award.
Whether or not there was an entitlement to set-off depended upon whether the Housing Grants Construction and Regeneration Act 1996 applied to the contract i.e. whether the contract was a “construction contract” within the meaning of the Act. RWE sought to rely upon the Deed which incorporated adjudication provisions into the contract, arguing that express provisions were required to exclude a right of set-off. Alstom’s take was that the Deed incorporated the provisions of the Scheme for Construction Contracts, which included the incorporation of the provisions of the underlying legislation so that set-off was prohibited.
The judge found that the effect clause 11 of the Deed was to incorporate the provisions of the Scheme, and by choosing to do this rather than use their own bespoke adjudication provisions, the parties had intended to import into the contract the underlying Parliamentary intention. Consequently, the incorporated wording should be given the same interpretation as the Scheme unless there were something else in the contract or in the background to it which forced a different conclusion. It was not possible to interpret the contract as permitting set-off from an adjudicator’s award without contradicting the purposes of the Scheme.
Associated Link :
12/1/2010
Subject: Scottish Government Approves 2 Wind Farms
Description: Schemes Will Supply 45,000 Homes
The Scottish government has approved the 52.5 Megawatt (MW) Baillie wind farm near Thurso, which will supply almost 25,000 homes and feed electricity in to the upgraded Beauly-Denny line. The £80 million scheme will create 30 jobs during construction with permanent local operation and maintenance jobs. The applicant will make an annual contribution to the West Caithness Community Fund to support local projects and five local businesses will be supported by rental income.
An extension to the Rothes wind farm near Elgin will boost capacity by an additional 45 MW, increasing the generating capacity from 50 MW to 95 MW. The extension will be capable of supplying over 20,000 homes. Around 60 construction jobs will be created, with permanent local operation and maintenance jobs. A community benefit fund will also be established.
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8/1/2010
Subject: Universities Slash Building Programme After Government Cuts
Description: Universities Review Options
More universities have begun to review their building programmes following the announcement of capital funding cuts by the government of over half. Some universities, such as Imperial College, London and Bristol are to reduce their programmes by 40%. Some universities are investigating ways of making up the shortfall by using private money. Cambridge, for example, is planning a bond issue.
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8/1/2010
Subject: RICS Postpones Decision on CIC Withdrawal
Description: Pressure from QS Members
The Royal Institution of Chartered Surveyors has postponed making a decision on whether or not to withdraw from the Construction Industry Council for three months. There has been considerable pressure from members to get the RICS to change its mind about the move.
Associated Link :
8/1/2010
Subject: Davis Langdon Profits Crash
Description: Recession Bites Despite Increase in Turnover
Davies Langdon has reported a 55% fall in profits in Europe and the Middle East despite a 6% increase in revenue. The figures have been blamed partly on the adverse conditions in commercial and retail development which accounted for a third of the company’s fees. In contrast, the company expects its global results to show a 20% growth in turnover.
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6/1/2010
Subject: UK Government to Announce R3 Wind Farm Contractors
Description: UK’s most Expensive Renewables Project
The winning contractors for the £3 offshore wind farm project are to be announced this week. The anticipated value of the project is £100bn by 2020, and the project will be a blueprint for future schemes. The government is hoping that it will also create a UK-based renewables industry, which will have long term benefits.
Aberdeen-based offshore contractor Sea Energy and Portuguese utility EDPR are expected to be awarded Scotland’s Moray Firth zone, while Dublin-based Mainstream Renewable Power has reportedly won the Hornsea zone. Other winners are understood to include E.ON, Centrica and DONG.
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6/1/2010
Subject: Dubai World Re-Commences London Gateway Project
Description: £1.5bn Project Will be Largest in Europe
Work on the essential infrastructure has restarted on the suspended London Gateway Project, the £1.5bn combined deep sea port and logistics scheme. Promoter DB World, which has been suffering from financial problems, had reviewed is options in the light of the current recession and has decided to go ahead, having purchased the extra land needed and bought out Royal Dutch Shell. The London Gateway project is one of the main drivers for the Thames Gateway and the Prime Minister has welcomed the news.
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4/1/2010
Subject: Adjudicator has Jurisdiction to Decide on Admissibility of Evidence
Description: No Breach of Natural Justice to Disregard Earlier Void Decision
The Jacques sisters sought an order enforcing an adjudication award made in their favour. The claimants had used their life savings to purchase a property and develop it into flats in order to provide an income. They engaged the defendant contractor, Ensign, to renovate the property for a contract sum of £139,300. The Contract Administrator was Huw Thomas. In a previous adjudication, it had been decided that practical completion had taken place on 3 November 2006, but there were outstanding issues about defects and whether outstanding works had been completed promptly. Mr. Thomas had certified payment of £319,058.56. His services were dispensed with and he was replaced by a Mr. Irvin.
There followed further adjudications between the parties which related to the service of the withholding notice, practical completion, and deductions made from certificate no., 7. The adjudicator in the third and fourth adjudications was Mr. Sutcliffe. In the fourth adjudication, the Jacques submitted that £198,000 of the £300,000 paid to Ensign was repayable because of deficiencies in the works. Mr. Sutcliffe decided that the “fair and reasonable value” of the Contractor's final account was £297,737.86, and ordered Ensign to repay £28,764.15. This decision had been based on a full investigation, which had included a site visit. He also expressed the view that the removal of Mr. Thomas amounted the Jacques “usurping the power and authority of the Contract Administrator”. The adjudicator attached considerable weight to Mr. Thomas’ witness statement in which he had expressed the view that Ensign’s standard of work had been generally in accordance with that required by the contract. Adjudication no. 4 was not enforced because Ensign raised a number of jurisdictional issues, including the adjudicator’s failure to address its disruption claim. On 30 July 2009, the parties came to a written agreement that Mr. Sutcliffe’s was void. And not binding upon them. This was reflected in a consent order, which also stated that the Jacques were entitled to adjudicate at any time a dispute concerning the amount to be paid to the Claimant pursuant to a final certificate issued…pursuant clause 4.8 of the JCT Minor Works Contract 2005 with Contractor’s Design.”
The Jacques served a Notice of Adjudication for what was to become adjudication no. 5. Essentially this related to the value of the final account, and included a claim for lost rent and repayment of £187,076.23. What was sought was the value of the works said to have been properly carried out, taking into account such defects. Mr. Paul Jensen was appointed as adjudicator.
Ensign maintained that it was owed £98,786.73, and, in its response, attached considerable importance to the null and void decision of Mr. Sutcliffe, particularly where he had stated that the Jacques’ submission that 60% of the works were defective was “doomed to failure”, and his finding that £298,587.86 represented a fair and reasonable value of the final account. Ensign also complained about the way in which the jurisdiction had involved themselves in Mr. Irwin’s work and “hampered” progress, and alleged that Mr. Irwin and a Mr. Nelson who had also been involved had not been independent, but had used their involvement in the project to generate work for their own company unbeknown to the Jacques. Ensign submitted that there had been no impartiality and that the Jacques’ case was based on lies.
Mr. Jensen wrote to both parties, informing them that he would not be taking into account Mr. Sutcliffe’s decision, which he considered to be irrelevant, but would be basing his decision on his own view of the evidence and submissions. Ensign’s solicitors responded that his failure to even read Mr. Sutcliffe’s decision was a breach of the rules of natural justice, as he would be unable to properly consider its response. Ensign reserved the right to challenge Mr. Jensen’s subsequent decision on that basis.
Mr. Jensen found that Ensign should repay the Jacques £96,868.18. In his reasoned decision, he stated hat he had carefully considered all the evidence and submission although not specifically referred to in this Decision”. Ensign paid neither Mr. Jensen’s fees nor the sum awarded to the Jacques, and they commenced the present enforcement proceedings. Ensign resisted enforcement, arguing that Mr. Jensen had breached the rules of natural justice by refusing to read Mr. Sutcliffe’s decision, and, therefore, he could not have considered or addressed the arguments and defences put forward by Ensign by reference to that earlier decision.
Whilst an adjudicator must properly consider all defences properly put forward, it was within his jurisdiction to decide what evidence was admissible, or helpful. If an adjudicator decides that some evidence is inadmissible, then it will rarely amount to a breach of the rules of natural justice even if he had been wrong in fact or law. In almost all natural justice cases, it will be necessary to distinguish between an adjudicator’s failure to consider a substantive issue and an apparent failure to address all aspects of the evidence given in a defence. Given the nature of adjudication and the time scales involved, it is not always possible for an adjudicator weigh up every aspect of evidence, and an adjudicator should not be considered to be guilty of breach of natural justice because he has failed to address each piece of evidence adduced by the parties.
Mr. Jensen had acted within his jurisdiction in not taking into account Mr. Sutcliffe’s decision because it had been within the ambit of his jurisdiction to decide whether or not it was admissible. As the parties had agreed that that decision was null and void, it was not binding upon Mr. Jensen, and it was not an inherent defence in adjudication no. 5. Mr. Jensen’s refusal to take it into account could not be categorised as an adjudicator failing to refusing to consider or address a defence. His decision not to consider a decision which was null and void had not been perverse or irrational. After Mr. Jensen had informed the parties that he would not taken into account Mr. Sutcliffe’s decision, Ensign had had ample time to present further evidence and argument and had done so. Mr. Jensen had also made it clear in his reasoned award that he had taken into account all the evidence and submissions and the content of his decision bore this out.
Because Ensign had raised a prima facie case that the Jacques would not be able to repay the award if required to do so, the court ordered a stay of execution on £60,000 of the award.
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23/12/2009
Subject: Court Reviews Adjudication Slip Rule
Description: Adjudicator Can Correct Mistake
O’Donnell (ODD) applied for summary judgement to enforce to adjudication decision. The defendant, BAL, challenged the adjudicator’s jurisdiction to make corrections in one adjudication, plus a stay. BAL later withdrew its application for a stay, so that the remaining issues were whether ODD was entitled to be paid £148,468.67 in accordance with the correction made to the adjudication, and what order for costs should be made.
ODD was engaged by BAL as a concrete frame subcontractor under a DOM/2 subcontract. BAL was the main contractor on the Cube in Birmingham. There were a number of disputes about interim valuations, extensions of time, and loss and expense, with a number of adjudications. Adjudication 8A was concerned with the value of contract works in Interim Valuation no. 25, and the validity of deductions made by BAL.
The adjudicator found that ODD was entitled to payment of £14,328,131.88 less retention, valid BAL deductions and payments to date. The next day, ODD notified the adjudicator that they thought there were two errors in his decision because he had included a sum paid for loss and expense awarded in Adjudication no. 7 which was after the date of Valuation no. 25. ODD also pointed out that at Item K in the table in the adjudicator’s decision, he had calculated the retention as 3% of the gross value of the works, including loss and expense (at Item F) and not 3% of the gross value excluding loss and expense.
BAL objected to these items being corrected, arguing that they did not come within the definition of slips which the adjudicator was entitled to correct. The adjudicator wrote to both parties, stating that he did have the power to correct both mistakes, and issued a corrected version , which awarded ODD £778,267.25 plus applicable VAT and interest..
Adjudication no. 9 dealt with the validity of BAL’s withholding notices against Valuation no. 26. In that adjudication, ODD was awarded £285,306.56. BAL did not pay the awards made in Adjudications 8A and 9, and it made it clear that it would challenge any enforcement proceedings on the basis that the adjudicator had not had the jurisdiction to make the corrections in Decision 8A. In addition, BAL said that it would seek a stay because of ODD’s alleged insolvency. This application for a stay was later withdrawn, and it paid ODD £920,670.35 in respect of both decisions.
The issue of whether the adjudicator had the jurisdiction to make the corrections remained to be resolved. BAL said that the adjudicator should not have made the corrections because he had asked ODD for information about the sums paid and the error he had made had been caused by ODD mistakenly giving incorrect information. That being so, BAL said that the correction to Decision 8A did not come within the slip rule, and it had not been open to the adjudicator to make the correction and increase the sum payable to ODD. ODD argued that the decision to amend the decision did fall within the slip rule provisions because the original decision had not reflected his intentions.
Generally, an adjudicator’s decision will be enforced even if it contains an error, or if he answers the right question in the wrong way. The slip rule enables an adjudicator to correct his decision providing that the correction is made within a reasonable time, even if the time for making his decision has expired. The present application for summary judgement raised a question of to what extent a court can interfere with an adjudicator’s exercise of his power under the slip rule.
Having reviewed a number of authorities, and listened to counsels’ arguments, the judge distilled the following propositions. If an adjudicator were to exercise a slip rule when there was no express or implied slip rule, that would clearly be a decision which was outside his jurisdiction. If a party asked the adjudicator to correct a slip and the adjudicator accepts that an error has been made within the slip rule then if the adjudicator makes an error of fact or law in making the correction, the judge considered that such an error did not take the exercise of the slip rule outside his jurisdiction. Finally, if a party asks an adjudicator to correct a slip which the other party agrees is a slip within the slip rule but in operating the slip rule he makes and error of fact or law, then Ramsey, J. was of the opinion that the court could not interfere in that decision.
Each case would have to be considered on the facts. In the present case, BAL had accepted that the slip rule was an implied term of the DOM/2 subcontract. The adjudicator had been asked to correct a slip, and accepted that he had made a mistake within the slip rule. Under those circumstances, the judge was of the opinion that the court could not and should not interfere because if it did, it would be comparable to interfering in a case where the adjudicator had answered the right question whether he was right or wrong in the answer given.
The present case was similar to that of YCMS Ltd. v Grabiner, [2009] EWHC 127 (TCC), where the adjudicator had made a patent error. He had been right to recognise the mistake as “inadvertent slip” because he made a deduction which he had not intended to make. This often happened, and was could be caused because the adjudicator relied upon information given by one of the parties. It was not that the adjudicator was trying to have second thoughts about his decision. Because the adjudicator had used the slip rule to correct an accidental error, BAL had no real prospect of successfully defending ODD’s claim.
ODD was awarded summary judgement, and awarded the costs of its summary judgement application on an indemnity basis, plus the costs of BAL’s withdrawn application to stay.
Copyright: Building Law Information Subscriber Service 2009.
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23/12/2009
Subject: Hirer Ntot Liable for Plant Driver's Injuries
Description: CPA Conditions Considered
The defendant, Brush Transformers Ltd., (BTL), hired a large mobile crane from MacSalvors (Plant Hire) Ltd., (MPH), to use in work on an electricity substation. The crane was supplied with Mr. Jose, an experienced operator. Mr. Jose was injured when he fell from the crane, and claimed against MPH for personal injury and loss and damage incurred due to its negligence or breach of statutory duty. Liability was agreed and MPH accepted that it was 25% contributorily negligent. The claim was compromised by MPH paying Mr. Jose £50,000. MPH brought third party proceedings against BTL, claiming to be indemnified under the clause 8 and 13 of the Construction Plant Association’s Model Conditions of Plant Hire.
The judge at Taunton County Court concluded that Mr. Jose was a competent operator although his method of descending from the claim had been unwise on that particular occasion, and rejected MPH’s submission that the accident had been caused solely by Mr. Jose’s negligence. He found that MPH had been in breach of regulation 6 of the Construction (Health, Safety and Welfare) Regulations 1996, and had been right to pay Mr. Jose the damages. In the judge’s view, 8 had been intended to cover the situation where the actions of the operator caused an accident and there was some consequential loss and damage. The wording of Clause 13 did not assist MPH because “if contractors … wish to exempt themselves from their own acts of negligence then they must set this out in express and specific terms”, but that had not been done. He found the present case to be similar to E. Scott (Plant Hire) Ltd. v British Waterways Board, Court of Appeal, 20 December 1982 unreported, and that he was bound by that decision. He dismissed MPH’s claim against BTL, and MPH appealed.
Clause 8 of the contract states:
“8. HANDLING OF PLANT
“When a driver or operator or any person is supplied by the Owner with the plant, the Owner shall supply a person competent in operating the plant or for such purpose for which the person is supplied and such person shall be under the direction and control of the Hirer. Such drivers or operators or persons shall for all purposes in connection with their employment in the working of the plant be regarded as the servants or agents of the Hirer (but without prejudice to any of the provisions of Clause 13) who also shall be responsible for all claims arising in connection with the operation of the plant by the said drivers/operators/persons. The Hirer shall not allow any other person to operate such plant without the Owner’s previous consent to be confirmed in writing.”
By clause 13, the Hirer must “fully and completely indemnify the Owner in respect of all claims by any person whatsoever for injury to personal property caused by or in connection with or arising out of the … use of the plant during the continuance of the hire period...” MPH argued that this claim was for the injuries suffered by Mr. Jose in connection with his use of the plant during the period of hire, and giving the words their ordinary meaning, this claim was included since the words of clause 8 were wide enough and unlimited in their scope. MPH argued that “all claims” included a claim by the driver.
Previous authority established that since the driver of the plant is beyond the control of an owner, an owner naturally wishes to pass on the responsibility for a driver’s negligence to the hirer. This is achieved by clause 8. As long as a competent driver is provided, the parties agree to treat him as the server of the Hirer, and, as between them, the Hirer will be responsible for all claims arising out of the operation of the plant. What was not contemplated was making the Hirer liable for claim arising from the Owner’s own negligence.
By clause 13, the Hirer must “fully and completely indemnify the Owner in respect of all claims by any person whatsoever for injury to personal property caused by or in connection with or arising out of the … use of the plant during the continuance of the hire period...”. The court considered whether the principles in Alderslade v Hendon Laundry Ltd., [1945] K.B. 189, operated so that any negligence by the owner was excluded.
The court concluded that an Owner cannot claim to be indemnified under Clause 13 for the injuries to its driver arising out of the use of the plant during the continuance of the hire period when that damage arose due to its own negligence. The judge had found negligence not just breach of statutory duty. It made no commercial sense whatever to submit that the Owner may fail because he did not expressly allude to “negligence” but he could still succeed because “breach of statutory duty” is something completely different and does not merit express mention. The two concepts went hand in hand. Neither was unmistakably and unequivocally excluded. The Owner could not seek an indemnity for its own negligence or its own breach of statutory duty.
Copyright: Building Law Information Subscriber Service 2009.
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23/12/2009
Subject: £3.5m Investment Pledged for UK’s First Commercial Tidal Farm
Description: Farm Planned in Next Two Years
British tidal energy company Marine Current Turbines (MCT) has raised £3.5m from an investor group led by Carbon Trust Investments Limited and including Bank Invest, EDF Energy, High Tide and a group of significant private investors, to help MCT in its plans to deploy the UK’s first commercial tidal energy farm.
MCT is the developer of SeaGen, the world’s first and largest grid-connected system that extracts energy from tidal currents. Part of the new funding will support MCT’s first deployment of SeaGen in Northern Ireland’s Strangford Lough which has now been successfully operating for more than six months. The company is now also looking to export its technology abroad.
Associated Link :
21/12/2009
Subject: Exhibition for Construction and Engineering Surveying
Description: Exhibition for Construction and Engineering Surveying
XCES 2010 – Exhibition for Construction and Engineering Surveying
SURCO Limited
XCES 2010 – Exhibition for Construction and Engineering Surveying
Co-sponsors of XCES 2010 - ICES, ICE, IHIE, ABE, CIAT, RSPsoc and AGI
For all who are involved with the measurement and monitoring of objects, space, quantities and costs within the built environment.
Following on from the success of the first XCES exhibition in April 2009, SURCO Limited, the information business of the Chartered Institution of Civil Engineering Surveyors, presents XCES 2010. XCES will again follow its established theme of being informative, educational and entertaining for all those who exhibit and attend. It will also be the first exhibition held to support the activities of the newly chartered institution.
Products showcased at XCES 2009 included; measurement, mapping, modelling, machine control, GIS, GNSS, laser scanning, data collection, CAD, terrain modelling, visualisation, underground detection, photogrammetry, aerial imagery, education and training….
This year, we aim to bring together the industry’s commercial and geospatial professions by featuring additional products and services, such as; project management software, bills of quantities, estimating, contract management, cost control, planning and programming, electronic document handling and monitoring which will be of interest to commercial managers, quantity surveyors, project managers, estimators, cost engineers and anyone who is involved with the measurement and monitoring of objects, space, quantities and costs within the built environment.
An educational zone will also be in place throughout the afternoon on 3 March which will provide the exhibitors an opportunity to demonstrate and provide activities and hands on experience of the latest equipment and software to the next generation of surveyors.
XCES will be staged at one of the top event venues in the south east, Sandown Park Racecourse, on 2 and 3 March 2010.
Visitors at XCES will be offered the chance to attend different workshops enabling exhibitors the opportunity to further promote their products and services.
An evening dinner has also been arranged during XCES. The evening will join colleagues together for a night of socialising with fine dining and top class entertainment.
THE FIRST 300 ONLINE REGISTERED VISITORS WILL RECEIVE A £5 FOOD AND DRINK VOUCHER.
Further information is available on the exhibition website www.surco.uk.com/xces.php and XCES will be promoted in Civil Engineering Surveyor, the monthly journal for the members of ICES, and other leading industry publications over the coming months.
For further information please contact:
Alan Lees
Media Sales Manager
SURCO Limited
Dominion House
Sibson Road
Sale
Cheshire M33 7PP
United Kingdom
Telephone: +44 (0)161 972 3122
Email: alees@cices.org
www.cices.org
Associated Link :
21/12/2009
Subject: The QSI is now on Linkedin
Description: The QSi is now on Linkedin
The QSi is now on Linkedin
http://www.linkedin.com/groups?gid=2598081&trk=myg_ugrp_ovr
Why don’t you LINK and join in with discussions and place your contribution onto the site.
If you are a Freelance, why don’t you advertise your services?
If you are a Builder / Contractor tell us about your company
If you are in Private Practice, why not place your details on the site.
If you need a job or have one to offer, this can also be placed in LINKEDIN
Andrew Williams
Associated Link : http://www.linkedin.com/groups?gid=2598081&trk=myg_ugrp_ovr
21/12/2009
Subject: QSI/ CIOB Joint event -13th January 2010
Description: QSi /CIOB Joint Event -13 th January 2010
Geraldine Fleming
CIOB/QSI - Joint CPD Event - 13th January 2010 - Pitfalls of Contracting by Geraldine Fleming of Knowles.
This is an open invitation extended to all QSi members:-
Further to our recent discussions in relation to QSi and the potential for future connections and involvement with the CIOB.
On behalf of the CIOB, and more specifically, the North Wales Centre, we are delighted to confirm our invitation to QSi to make our 13th January 2010 a joint event.
This event is to be delivered by Geraldine Fleming of Knowles, and is the first in a series of CPD’s entitled ‘Pitfalls of Contracting 1’. The event will be held in the Madog Room at Llandrillo College, Llandudno Road, Rhos – on – Sea, North Wales, LL28 4HZ, and we will meet for informal networking at 19.00hrs for a 19.30hrs event commencement.
The "Pitfalls" to be covered are listed below. Looking forward to seeing a full house on 13 January 2010.
Regards
Geraldine
1. Where a contractor’s order form includes the words “unless otherwise agreed the subcontractor is deemed to have accepted these conditions which shall apply to the exclusion of any conditions which appear on the Acceptance Form, Delivery Form or other document or letter emanating from the subcontractor”, will the conditions in the contractor’s order take precedence over any conflicting conditions referred to in the subcontractor’s acceptance?
2. Where a contractor / subcontractor whose tender is successful receives a letter of intent, is he at risk in commencing work or ordering materials or design if the project is abandoned before a contract is signed. On the other hand is he entitled to payment?
3. Can a subcontractor who finishes late have passed down to him liquidated damages fixed under the main contract which are completely out of proportion to the subcontract value?
4. If the employer suffers no loss as a result of a contractor / subcontractor’s delay to completion, is he still entitled to deduct liquidated damages?
5. Where a contractor / subcontractor includes in error an unrealistically low rate in the bills of quantities, can he or she be held to the rate if the quantities substantially increase or is he or she entitled to have the rate amended. What is the position if the rate is unreasonably high?
6. Where a cheque which is less than the amount claimed is sent to a contractor / subcontractor with an accompanying letter to effect that the cheque is sent in full and final settlement, does the cashing of the cheque indicate a binding acceptance or can the contractor / sub-contractor, having cashed the cheque, commence proceedings to recover the balance?
Associated Link :
20/12/2009
Subject: The new QSi Linkedin Group
Description: The new QSi Linked in Group
Why not have a look at the new QSi Linkedin Group
over Christmas. Better still why not become involved an put your thoughts "on paper."
QSi - Quantity Surveyors International
http://www.linkedin.com/e/vgh/2598081/
Associated Link :
19/12/2009
Subject: Roger Knowles Hot Tips 1
Description: Roger Knowles Hot Tips 1
Roger Knowles Hot Tips 1
Subcontract Programmes
Time is always at a premium. When entering into a subcontract, it is the norm for the subcontractor to have its time slot squeezed to fit into the main contractor’s programme. When a time slot has been agreed, often on a take it or leave it basis, there are a few dos and don’ts which need to be observed. When the subcontract is being drawn up for signing, make sure the agreed time slot is stated clearly in the subcontract. For goodness sake do not sign up to a subcontract which states that the subcontractor is obliged to carry out the work at such times, and in the order the contractor shall from time to time direct. If the subcontract states that the subcontractor must carry out the work in accordance with the contractor’s programme, make sure there is a programme reference number stated in the subcontract and you have actually seen the programme. Programmes are regularly changed and if care isn’t taken, the subcontractor’s time obligation becomes a movable feast.
Email
roger@rogerknowles.com
Associated Link :
15/12/2009
Subject: £12m Transport Scheme Planned for Hucknall
Description: DOT to Provide £10m
The Transport Minister, Sadiq Khan, has announced that Hucknall Town Centre will benefit from a £12m investment in infrastructure improvements. The proposals include the construction of a new relief road, which will take thousands of vehicles a day away from the High Street. This will enable the pedestrianisation of the busiest stretch of Hucknall’s High Street, providing a safe and attractive environment for pedestrians and cyclists. A new bus-only link, which will connect the High Street and the new relief road, will serve as Hucknall’s main bus interchange with improved waiting facilities for bus users. The plans, which have initial Government approval, will cut travel times for motorists in the town centre, said Mr. Khan.
The balance of the funding will come from Nottinghamshire County Council and the private sector.
Associated Link :
11/12/2009
Subject: Major American Firms Stalk UK Consultancies
Description: Top QS Firms Named
It is believed that American mega consultancies are hunting for British companies to take over. It is thought that Davis Langdon, Turner & Townsend and EC Harris may be amongst those in their sights. Aecom, CH2MHill and Jacobs have all been in the UK in meetings.
Associated Link :
11/12/2009
Subject: RICS May have CIC Rethink
Description: Planned Withdrawal Opposed y Major Firms
The RICS may have to reconsider its plans to withdraw from the Construction Industry Council after some of the major QS firms threatened to leave the organisation and set up their own. The new government construction adviser, Paul Morrell, has also spoken out against the withdrawal.
Associated Link :
9/12/2009
Subject: Infrastructure UK to Oversee Funding
Description: New Agency will Prioritise Infrastructure Funding for Next 50 Years
The Chancellor, Alastair Darling has announced the establishment of a new agency, Infrastructure UK, which will replace he Infrastructure Finance Unit, the Treasury’s PPP policy team, and parts of Partnerships UK. The task of the new agency will be to identify new revenue streams for major infrastructure, and manage the government’s money earmarked for the 2020 European Fund for Energy, Climate Change and Infrastructure, and how low carbon electricity and High Speed 2 could be funded.
Associated Link :
8/12/2009
Subject: UK to Join First Offshore Wind Grid
Description: Nine Countries Sign up to Development
Nine countries, including the UK, have signed up to develop an integrated offshore grid in the North and Irish Seas. £5M of new grants have been awarded for offshore wind technology research and a Renewable Energy Expert Chair has been appointed by the government. A grid spanning European waters should make electricity supplies more secure for the participating countries by making it easier to optimise offshore wind electricity production , and will also help the EU to meet its renewable energy target for 2020.
The Government is to give Danish energy company Vestas £1.75 million and a further £1.75 and the South East England Development Agency will give £1.75m in addition to £6 million already awarded. Vestas say that they will now proceed with their R&D facility on the Isle of Wight. Vestas currently employ 160 on the Isle of Wight. By the time they open the technology centre in 2011 they expect this to grow to over 200 and then to nearly 400 over the following years.
Associated Link :
4/12/2009
Subject: Government Figures Say Ecession is Over
Description: ONS Statistics Show a 2% Rise
Preliminary figures from the Office of National Statistics reveal that construction output rose in the third quarter of 2009 by 2% compared with the sedonc quarter of 2009, with a quarter on quarter growth in output indicating the end of recession.
Going into recession is technically defined as two negative consecutive quarters of growth, whilst the end of a recession is taken to be the first growth quarter-on-quarter. Despite this glimmer of hope, however, But the figures still show the industry’s output of £25 billion last quarter is 9 per cent down on the third quarter of 2008’s figure of £27.3 billion.
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27/11/2009
Subject: “Secret Communication” Tainted Single Joint Expert’s Report
Description: Judge Permits Party its Own Expert
Mr. Edwards was the owner of a listed building in Liverpool. In 2004, he engaged the claimants to manufacture and install three replacement wrought iron balconies and balustrades. There were disputes over the quality of the claimants’ work, and the parties agreed to refer the matter to an expert architect, Mr. Brotherhood.
In his first report, Mr. Brotherhood was of the opinion that the casting was satisfactory and was prepared to visit the site to inspect the standard of work. If he found that that had also been completed to a good standard, he was prepared to certify the works had been completed satisfactorily, and that they were an improvement on the old balustrading.
Despite the content of the report, there remained an outstanding issue about the sums due to the claimants commenced an action in the County Court to recover £13,729.36 which they alleged were due. Mr. Edwards counterclaimed for a refund of £7,000. Both parties sought to rely upon Mr. Brotherhood’s report.
The matter was transferred to the Liverpool County Court. By that time, the claimants’ claim was in the region of £15,000, whilst its costs were about £60,000. Judge Mackay ordered that Mr. Brotherhood would be the single joint expert in the case, to which both parties agreed.
Mr. Brotherhood produced his second report nearly a year later. This proved to be something of a shock to the claimants because it now said that the claimants’ materials and workmanship were not acceptable. Some time later, the claimants learned that Mr. Edward’s solicitors had been in touch with Mr. Brotherhood in the interval between the production of the two reports, although the nature of this was not revealed either to the claimants nor the court. Although requested, copies of the correspondence were not provided.
The claimants obtained a report from a second expert, a Mr. Potter, and sought the court’s permission to rely upon it. The claimants feared that the contact between Mr. Edwards and Mr. Brotherhoodhad had biased the expert against them. Judge Mackay found the situation to be very unsatisfactory. If the claimants were not permitted their own expert, then given that Mr. Brotherhood had changed his report after intervention by Mr. Edwards’ solicitors, the claimants would be faced with the possibility of trying to argue points which were not in their favour because the expert evidence was against them. Although he was reluctant to permit the claimants their own expert, because of the overall justice to the parties, he allowed the claimants their application.
Mr. Edwards sought leave to appeal against this decision. The court reviewed the law appertaining to single joint experts and the effect of “secret dealings” by one of the parties. The real issue was whether the judge had been wrong to allow the claimants to rely upon fresh expert evidence at such a late stage, despite the wide discretion permitted him on case management decisions. That depended upon the effect of the secret communications between to Mr. Brotherhood and Mr. Edwards. Because of the limited information available, and applying the principles in Peet v Mid Kent Health Care NHS Trust, [2002] All ER 688, Judge Mackay had been obliged to conclude that because of the secret communications, the usual position of the single joint expert was untenable. The existence of these communications jeopardised the independence of Mr. Brotherhood’s second report. The claimants were entitled to adduce their own evidence because preventing them from doing so would result in an injustice.
Copyright: BLISS Books Ltd. 2009
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23/11/2009
Subject: Olympics On Time and Within Budget, says ODA Report
Description: Quarterly Economic Report Shows Small Increase in Cost
The latest “2012 Olympic and Paralympic Games Quarterly Economic Report from the Olympic Delivery Authority says that whilst there is an increase of £7m in the anticipated final cost, no contingency will have to be released to cover it. The ODA expects the increase to be covered by savings in other parts of the building programme. The contingency of £1,27bn remains largely untouched, and progress remains good, says the ODA.
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23/11/2009
Subject: Planning Consent Granted for £28m Bradford Redevelopment
Description: £28m Passenger Terminal Approved
The planned £28m new passenger terminal at Bradford Airport has won planning approval, Architects Pascall+Watson will now set about designing the two storey extension to the existing terminal. There will be a new departure lounge and improvements to the security and baggage handling facility.
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23/11/2009
Subject: QS Construction Adviser Appointment
Description: Paul Morrell Expected to be Appointed
“Building” Magazine is reporting that Paul Morrell, a former senior partner in Davis Langdon, is to be confirmed as the government’s construction adviser. Mr. Morrell is said to have beaten off a “strong field” of candidates. He is currently an independent consultant and non-executive director of DEGW. One of his first tasks will be will be to chair a review of construction’s role in a low carbon economy
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20/11/2009
Subject: RICS Threatens to Leave the CIC
Description: Cost-cutting Move
It has been reported that the RICS is considering leaving the Construction Industry Council. The RIS is a founder member of the CIC and would be the first professional institution to leave it. The RICS has informed the CIC that it is considering withdrawing from a number of international and national bodies in order to save money. There have already been some redundancies within the organisation.
There are also internal problems within the organisation over proposals to reorganise the regional boards so they are made up of RICS staff instead of elected members.
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16/11/2009
Subject: New Construction Act Published
Description: Adjudication and Building Contract Changes
The Local Democracy, Economic Development and Construction Act 2009 has now been published, Part 8 of the Act replaces the building contract and adjudication provisions of the Housing Grants Construction and Regeneration Act 1996.
A free copy of the Act may be downloaded from http://www.blissbooks.co.uk.
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13/11/2009
Subject: New Construction Act Receives Royal Assent
Description: Changes to Adjudication and Building Contracts
The Local Democracy, Economic Development and Construction Act 2009 has received Royal Assent. The Act will replace the Housing Grants Construction and Regeneration Act 1996.
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11/11/2009
Subject: Engineers Liable for Damages ffor Remedial Works
Description: House "Unfit for Human Habitation"
In a previous judgement, the Technology and Construction Court found that the second defendant, RMA, a firm of structural engineers, were in breach of section 1 of the Defective Premises Act 1972. The claimants were awarded damages of £218,616.91. RMA had been engaged by Huntsbuild to undertake site investigations and advise on the design of the foundations of a house which Huntsbuild were building for the claimants. There was no dispute that RMA owed the claimants a duty of care. The claimants noticed cracking in the house in 2002, and the cause was eventually traced to the badly designed foundations.
RMA appealed, denying that there had been any breach of duty, and that, contrary to the claimants’ argument, the house had been fit for human habitation. RMA’s case was that whilst the claimants were entitled to have the defects remedied, the house was habitable.
On appeal, RMA argued that the judge had applied the wrong test, and taken into account irrelevant considerations. In particular, the judge had taken into account the fact that the remedial works would take 12 months, forcing the claimants to leave the house. RMA also argued that the judge had concluded that the house was unfit for human habitation without considering or explaining how each of the items of damage made it so. The third ground of appeal was the submission that the judge had applied the wrong measure of damages because he had taken the cost of RMA’s failure to carry out the work in a professional and workmanlike manner- i.e. the cost of repairing all the damage caused by the ground heave- when the correct measure of damages should have been the cost of making the house fit for human habitation. Finally, RMA maintained that the judge’s finding that the defective foundations made the house unfit for human habitation had been made without any proper basis in fact.
Whilst each case turned on its own facts, having to vacate a house for a long period for remedial work to be undertaken was a significant factor, and highly relevant to determining whether or not the house was fit for human habitation. The defect complained of was fundamental to the stability of the building, and not just cosmetic. The court did comment on the judge’s use of the phrase “unfit for purpose” as perhaps confusing the issue, as “unfit for purpose” did not really clarify “unfit for habitation”.
Contrary to RMA’s argument, the judge had not been obliged to consider each defect individually and whether it made the house unfit for habitation. Some cracks were more serious than others, but all the defects had been caused by the ground heave and inadequate foundations. Given this, the judge had been entitled to conclude that the cost of remedying the defects was a foreseeable consequence of a breach of section 1 of the Defective Premises Act. The contention that the judge’s findings had no basis in fact was rejected.
(Bole and de Haak v Huntsbuild and Richard Money (t/a Richard Money Associates); 20 October 2009)
Copyright: BLISS Books Ltd. 2009.
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10/11/2009
Subject: Banks to Provide £1.4bn in Wind Farm Loans
Description: EIB to Provide New Finance
The European Investment Bank (EIB) is to provide up to £700 million of the new finance for wind farm projects of between £20m and £100m with the remainder matched by RBS, Lloyds Banking Group and BNP Paribas Fortis. The eligibility criteria are designed to ensure that the projects have an acceptable environmental impact and are located in commercially viable locations in terms of wind resource. The UK Government has welcomed the EIB’s commitment to the funding for renewable projects.
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9/11/2009
Subject: New Planning Framework for Port Development
Description: New National Policy Statement Sets Out Additional Port Requirements
The new NPS - which is subject to public consultation - sets out the broad need for additional ports capacity up to 2030 and beyond, taking such things as freight demand forecasts and the economic benefits of ports into account. The document builds on existing Government policy, which is that the need for ports capacity can best be met with an efficient and competitive industry working in a free-market environment. This new document also includes wider Government objectives for sustainable development, covering issues such as climate change considerations and the wider environmental impact of port development.
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9/11/2009
Subject: Nuclear Power Station Sites Announced
Description: Locations of Government Pre-Approved Sites Released
The Energy Secretary, Ed Milliband, has announced the three pre-approved sites for the construction of nuclear power stations. These are: Kingsnorth in Essex, Druridge Bay in the North East and Owston Bay near Hull. Mr. Milliband has also published draft National Policy Statements which are designed to prevent planning delays for large energy projects.
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6/11/2009
Subject: BLISS Books Relaunches Construction Law Service
Description: Bulletin and Research Services Will be Available
BLISS Books, the construction industry bookseller and document provider, has announced that it has taken over the construction law service and has re-launched the Building Law Information Subscriber Service weekly bulletin which is a digest of case law and industry articles from construction trade journals and courts in the UK and overseas, The service has been used by legal and construction professionals since its initial launch in 1988, and has established itself at the forefront of cost-effective construction law provision. QSI members can obtain a sample issue of the bulletin by e-mailing orders@blissbooks.co.uk Members are also entitled to a discount on current subscription rates.
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6/11/2009
Subject: Latest Fees Bureau Survey Shows QSs Suffering Most
Description: Falls in the Hourly Rate of Between 10% and 17%
The latest fees survey’ from the Fees Bureau the average hourly rate for a sole principal in a QS firm fell by 17% between 2008 and 2009 and by 10% for an associate. Quantity Surveyors have fared badly compared with architects and engineers
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6/11/2009
Subject: RICS Reports Workload Optimism
Description: Construction Outlook Looks Positive at Last
Despite a further fall in construction workload in the 3rd quarter of 2009, the Royal Institution of Chartered Surveyors’ latest survey not only shows that the fall in workload is slowing, but also that there is some optimism about prospects for the next year. The survey shows that the public sector came off best with modest rises for the second consecutive quarter.
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6/11/2009
Subject: RWE and E.On Complete Horizon Nuclear Joint Venture
Description: Aims to Attract £15bn of Investment
Nuclear giants, RWE and E.On have finalised their joint venture to be called Horizon Nuclear Power. The new venture plans to develop in the region of 6,000MW of new nuclear capacity by 2025, with the first reactor coming on-line in 2020.
The company has secured sites at Wylfa on Anglesey and Oldbury-on-Severn in South Gloucestershire, and technical site investigations are proceeding.
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5/11/2009
Subject: New Guide to Local Authorities on Procurement
Description: Top Tips for Savings
The Local Government Association and the Improvement and Development Agency has published a members' guide on how to make savings in construction procurement. Councils spend some £16.2 billion each year on construction – far more than they spend in other areas. The guide suggests how they could save millions of pounds each year through more efficient and collaborative procurement.
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4/11/2009
Subject: Allegations of Fraud to Resist Adjudication Enforcement
Description: S.G. South Ltd. v King's Head Cirencester LLP, and Corn Hall Arcade Ltd.; 29 October 2009
SG applied to enforce two adjudication decisions. The application was resisted by the defendants who argued that the final account procedure which was due to be completed would show that they were owed a net balance. Alternatively, the defendants asked for a stay on the basis that the claimants were on the verge of insolvency. The defendants also raised issues on how the court should proceed if there were arguable issues of fraud involved.
The defendant developers contracted with the claimant for the construction and conversion of two sites. The work involved the creation of a shopping arcade and a hotel. The form of contract used was the JCT Management Contract, 1998 edition. Payment was made on a prime cost basis, based on certificates issued by the defendant's contract administrator. Clause 9A of the contract was an adjudication clause. There were a number of disputes, and the defendants purported to determine the claimant's employment in May 2008.
The claimant issued two notices of adjudication. The first related to alleged non-payment of Interim Certificate no. 8. Mr. Rudd was appointed as adjudicator. He found that of £202,429.72 was due to the claimant, but the defendants failed to pay.
In the second adjudication, the claimant sought payment of Interim Certificate no. 14, and Mr. Stimpson was appointed as adjudicator. In their response, the defendants intimated that they had become of widespread fraud on the claimant's part, and question whether it was lawful for the adjudication to proceed, given the provisions of the Proceeds of Crime Act 2002. The defendants alleged that the claimant had illegally removed and disposed of steel and fixtures and fittings from the existing buildings, and that there had been amendments to some of the plant hire invoices. All these allegations were denied by the claimant. In his decision, Mr. Stimpson referred to the fraud allegations, but considered them to be outside his jurisdiction, being a matter for the police and the courts. On the basis of Mr. Rudd's decision, he found that the claimant was entitled to £859,443.70, and that because the defendants had not issued withholding notices, they were not entitled to any set-off or abatement.
On 4 August 2009, the claimant issued its final account, and in the present proceedings sought to enforce the two adjudication decisions. Resisting the enforcement, the defendants argued that they had established that they had established a strong prima facie case that the claimant and its owner, Mr. South, had behaved fraudulently in a number of respects, and also that when the final account was finalised, it would show that the claimant owed them a substantial amount.
Depending upon the facts, fraud could be a defence in adjudication proceedings in the same way as in arbitration or court proceedings. Whilst the judge did not have to decide the fraud point, he did make some observations:
Fraud or deceit could be raised as a defence, provided it was a real defence to the claims. And it must be accompanied by clear and unambiguous evidence and argument. A distinction should be drawn between fraudulent actions which could have been raised as a defence and those which became known later. It was also necessary to differentiate between fraud which had an effect on the decision and fraud which was independent of it. The judge also warned that, whilst there were cowboy builders, only rarely would it be possible to presume that there had been fraud, and he doubted that there would be many cases where decisions would not be enforced because of fraud.
There was little prospect of the final account being settled within the next few weeks, as claimed by the defendants, or even at all because of the claims of fraud which the claimant was unlikely to accept. It was likely that the claimant would challenge the determination of the contract as being unlawful. The judge considered that what the defendants considered to be fraud in connection with the invoicing was more likely to be poor accounting practice. As for the illegal removal of items from the premises, the court had not been provided with any documentation about whether the claimant had been required to preserve the debris during its demolition works. Just because the claimant had taken items off site and sold them did not mean there had been any dishonesty or even breach of contract. The judge concluded that the defendants had failed to provide any credible evidence to support their allegations of fraud, and what the claimant had been able to remove from site under the contract.
In addition, the defendants were unable to demonstrate that the adjudication decisions had been procured by fraud. The defendants had properly issued the certificates in question, and no evidence had been produced to suggest that the certificates had been procured by fraud. Both decisions were enforceable.
Turning to the question of the claimant's financial position, the company accounts did show that the claimant was strapped and that it would be unable to repay the sums awarded in the adjudications if required to do so. However, the claimant's finances were no worse than when the defendants took the risk of entering into the contracts with them, and a stay of execution was not justified.
Copyright: BLISS Books Ltd. 2009.
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4/11/2009
Subject: Latest Trade Survey Results
Description: Conflicting Reports on Order Level
The latest trade survey from the Construction Products Association, (CPA), shows that construction orders are continuing to fall, despite some evidence of slow growth. The figures for the third quarter of 2009 indicate a continuing fall in enquiries and a reduction in the sales of construction products. However, this contradicts the findings of a survey from the National Specialist Contractors Council, whose members have reported a 13% increase in orders.
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2/11/2009
Subject: Suspension of Contract not Always a Repudiatory Breach
Description: Will Depend on the Circumstances of the Case
Mayhaven sought to appeal questions of law arising out of arbitration award. The defendant, DAB, undertook building work for Mayhaven on the Down Housing Nursing Home under a JCT Intermediate Form of Contract, 1998 edition.
Disputes between the parties were referred to adjudication in 2006, and the adjudicator ordered Mayhaven to pay DAB certain sums. Believing that Mayhaven had failed topay, DAB suspended the works. In fact the sums awarded were paid in a subsequent valuation. Mayhaven accepted the suspension as a repudiatory breach.
DAB commenced an arbitration in 2007, and the arbitrator issued an award on 13 April 2009. In its appeal, Mayhaven raised a number of questions of law:
Held:
1. REPUDIATION
DAB accepted that there had been an improper suspension of the works due to the misunderstanding about the payment. The question was whether that suspension amounted to a repudiatory breach. The arbitrator had found that it was not.
It was evident that that the arbitrator had correctly set out the correct principle of law that a breach of a contract will be repudiatory if it goes to the root of the contract. The court rejected the submission that that a wrongful suspension of the work under clause 4.4A of the Contract, which gave rise to a failure to proceed regularly and diligently under clause 2.1, amounted to a breach of a condition or fundamental term so that every such breach amounted to a repudiation of the contract. A wrongful suspension which gave rise to a failure to proceed regularly and diligently will vary in seriousness, depending on the circumstances. The court did not accept that every wrongful suspension which lead to a breach of clause 2.1 would automatically be a repudiatory breach. Rather, whether such a suspension and a consequent breach were to amount to a repudiation depended on the breach and the facts and circumstances of the case.
The arbitrator had taken into account the fact that DAB had made a genuine mistake about the payment. Mayhaven had been aware that they had made payment, but had not informed DAB of the misunderstanding prior to the suspension. Had they done so, the suspension would have been avoided.
DAB had genuinely believed that payment had not been made and was not going to be paid. They relied on a letter from Mayhaven’s Solicitors which stated that Mayhaven “will not be making any payment to your client pursuant to the Decision”. The arbitrator had also concluded that Mayhaven and their solicitors had known that DAB had been paid before the works had been suspended. Taking into account all this, the arbitrator had been correct in deciding that DAB’s suspension had not been a repudiation.
The arbitrator had been entitled to take into account DAB’s willingness to complete the works, evidenced by their letters.
Whether a contractor’s wrongful suspension of the works amounted to a repudiatory breach would depend on the terms of the contract, the breach or breaches of contract and all the facts and circumstances of the case. The question is not capable of a simple answer, as a matter of general principle.
2. LOSS OF PROFIT
Mayhaven claimed loss of profit in respect of the loss of use of rooms at the nursing home because of a delay in the completion of the works under the contract, caused by the need to carry out remedial works. The arbitrator awarded these damages, and calculated those damages on the basis that the rooms would have been occupied by elderly physically disabled rather than young (aged 18-65) physically disabled people (“YPD”) who would have led to a higher rate of income. ,Mayhaven argued that this showed that the arbitrator had misinterpreted the principles in Hadley v Baxendale (1854) 9 Ex 341, because the loss of profits should be assessed on the basis of provision of rooms for YPD and should do so under the first limb of Hadley v Baxendale because they only need to establish that the nursing home was a profit making business in the care industry and that loss of profit was likely to result if delay occurred.
The court concluded that the arbitrator had correctly found on the facts that loss based on YPD occupancy was not recoverable under the first limb, applying the test expressed in Czarnikow v Koufos. He also found that DAB did not have knowledge about loss arising from YPD occupancy so as to bring the case within the second limb of Hadley v Baxendale.
“Loss of profits” was not to be equated to “loss of a kind” so as to make all profits recoverable. The loss of profits in the Victoria Laundry case were not a single type of loss. Some might fall within the first limb and some within the second limb. In present case the arbitrator had found that loss of profit for the use of the care home for the more lucrative YPD occupants was not recoverable under the first limb of Hadley v Baxendale and was not recoverable because of lack of actual knowledge under the second limb. There had been no error of law.
3. Mayhaven also claimed for loss of profits arising from the delay to Phase 2 caused by delay to Phase 1. This was rejected by the arbitrator as not having been established. In order to assess any damages which might be recoverable for delay to Phase 2, the arbitrator had to know when Phase 2 would commence. He was considering this in the context of the availability of finance for Phase 2. This did not, however, establish when Mayhaven might actually commence the Phase 2 work. If it were to be a long time after the completion of Phase 1, there could be no connection between the delay to Phase 1 and the commencement of Phase 2. Unless Mayhaven established a date when they would have commenced Phase 2 and showed that it was, in fact, linked to delay to Phase 1, then the court concluded that the arbitrator had been entirely justified in saying that Mayhaven had not established loss of profits on Phase 2.
4. DEFECTIVE FOUNDATIONS
It was alleged that DAB had not constructed the foundations in accordance with the engineers’ drawings. The arbitrator had found that DAB were not liable, because they had constructed the foundations before the issue of the drawings. However, the arbitrator had also concluded that DAB were not liable because the Contract Administrator had impliedly approved the work.
The court found that a contractor who is in breach of contract in carrying out defective works is not to be relieved of liability for those defective works by any implied approval derived from the Contract Administrator’s failure to draw the contractor’s attention to defective works which should have been apparent when the Contract Administrator attended the site. Under the terms of the JCT Intermediate Form of Contract 1998 Edition, a Contractor is not excused from compliance with his contractual obligation to carry out the works in accordance with the contract drawings by reason of the Contract Administrator’s failure to require the contractor to remedy defective works. The court remitted this aspect of the award to the arbitrator.
Copyright: BLISS Books Ltd. 2009.
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28/10/2009
Subject: Atkins Warns of Future Reduction in Water Capacity
Description: Consultant Forced to Cut 100Jobs Because of Downturn
Consulting engineers, Atkins, has said that the capacity of the water industry may be reduced because of the five-year cycle of stop and start. The present dip in the AMP cycle has coincided with the current recession, and Atkins fears that the combination will lead to an inability to innovate, invest in infrastructure and maintain skills. Atkins is having to shed 100 jobs, and is not the only company being force to do so.
The Association for Consultancy and Engineering is urging the government to intervene and review the current funding methods for the industry.
Associated Link :
28/10/2009
Subject: QS Framework Advertised
Description: LIFT Framework
Community Health Partnerships in London is advertising a quantity surveyors LIFT framework for contracts between £750,000 and £3m. The framework providers selected onto the quantity surveying services framework will also be eligible to provide services in connection with the selection of a private sector partner from the Express LIFT framework.
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26/10/2009
Subject: New Adjudication Case on the Identity of the Contracting Parties
Description: Estor Ltd. v Multifit (UK) Ltd.; 23 October 2009
Estor Ltd. ("Estor") was the holding company for what has been called the Ginger Group, a group of companies which operate hair dressing and beauty treatment salons. The salons were actually called “Ginger Group”. Mr. Keith Warner (“Mr. Warner”) effectively owned and ran Estor and the other Ginger companies. Mr. Warner set up a further company, Ginger Westfield Ltd., for the purpose of setting up a shop in the Westfield White City complex.
Hub Design was engaged to undertake the fitting out works, and subcontracted a substantial part of the works to the defendant, Multifit. The contract with Hub was signed by Mr. Warner "of the Ginger Group" and the front page of the contract identified "The Ginger Group" in effect as the employer. However, Mr. Warner lost faith with Hub, and Messrs. Khan and Singh of Multifit indicated that they would be prepared to continue with the works. Multifit provided Mr. Warner with a quotation which was accepted by him in an e-mail. There was no indication, however, of which company was accepting the Multifit quotation. Multifit was not provided with a copy of the contract with Hub.
Ultimately, there were disputes about payments, and Multifit instructed a debt collection agency to recover sums using a standard letter addressed to "Keith Warner The Ginger Group”. Mr. Warner responded by e-mail “for and on behalf of Ginger Group Westfield” that there were certain snagging items and defects.
On 12 May 2009, Multifit issued a Notice of Adjudication, claiming £37,624.05. The issues before the adjudicator, Mr. Slegg, included the identity of the contracting parties, and whether the contract was in writing for the purposes of the Housing Grants Construction and Regeneration Act 1996. The adjudicator decided that Mr. Slegg decided that the contract was between Multifit and Estor, evidenced by emails of 20 and 23 October 2009, Multifit's quotation of 23 September 2008, the credit reference form signed by Mr. Warner and Multifit's Terms and Conditions referred to in that form. Further, he found that there has been no novation of the contract from Hub to Multifit. Estor was ordered to pay Multifit £37,624.05, plus fees and expenses.
Estor did not pay the sums awarded, but commenced its own adjudication proceedings, arguing that there was no contract in writing for the purposes of s.107 of the Housing Grants, Construction and Regeneration Act 1996.
Held:
1. The court was satisfied that Multifit had never been aware which company had contracted with Hub, and had not had a copy of the Hub contract until the commencement of the adjudication. Further, Mr. Warner had never made it clear to Multifit, either orally or in writing, that he wanted it to enter into a contract with Ginger Westfield. Whilst Ginger Westfield had been legally established, it had no operative bank account until October/ November 2008, and obviously had no funds of its own.
2. The Hub contract itself was not clear that Ginger Westfield would be the other contracting party. Mr. Warner only identified himself as being “Keith Warner of The Ginger Group” which was entering into that contract.
3. Estor made all the payments to Multifit, and all but one payment to Hub. When Mr. Warner received the letter from the debt collection agency, which was addressed to him and the Ginger Group Ltd. (GGL), he did nothing to suggest that the contract had been with Ginger Westfield rather than GGL or the Ginger Group.
4. It was common ground that Multifit’s e-mail quotation was an offer, and Mr. Warner’s e-mail of 23 October 2008 was the acceptance. Mr. Warner had signed the Credit Reference Form supplied by Multifit, which contained information about Estor. This form had been required for Multifit’s ISO 9000 accreditation. No other company had been mentioned as a potential employer under the contract. The fact that the first direct payment was made by Estor pointed unequivocally to Estor being mutually intended as the employing party.
Copyright: BLISS Books Ltd. 2009.
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16/10/2009
Subject: £200m Stockton Biomass Project Gets Go-ahead
Description: Gala and Aker Solutions to Build Plant
Stockton Borough Council has given planning permission for the construction of a £200m biomass plant, which will convert wood chippings to enough energy for 80,000 homes. The plant is to be built by Gala Power, with Aker Solutions, and is expected to be operational by 2012.
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13/10/2009
Subject: Brunel University Advertises for QS Services
Description: Esimated Value between £250,000 and £1m
Brunel University has issued an notice in the Official Journal for a quantity surveying and cost management consultancy services framework across its property estate. The call off contract will be used for the university’s 10-year capital expenditure plan.
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13/10/2009
Subject: Dong Withdraws from Power Station Joint Venture
Description: Peel Energy to Go it Alone with Hunterston Project
Denmark’s Dong Energy has withdrawn from a joint venture with Peel Holdings for the construction of a coal powered power station at Hunterston on the Clyde. The power station was one of 14 that Scotland’s “national planning framework” was to designate as being in the national interest. In addition to the coal, the Hunterston plant would have used some “biomass” material like wood. Dong’s decision has been based on financial considerations as the price and amount of energy sold is falling. Peel Energy, however, has said that it will continue with the project.
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7/10/2009
Subject: OJEU Contract Notice for Quantity Surveying Services
Description: Housing Private Finance Initiative Project
Stoke on Trent City Council (the council) is seeking to appoint a technical advisor to support the development and procurement of a Public Private Partnership (PPP) as part of 6th Round of the Housing Private Finance Initiative (PFI). This is targeted at estate renewal and transformation.
An invitation has been received from the Homes and Community Agency to proceed to the next stage and develop an Outline Business Case (OBC) based on our Expression of Interest. This identified development sites located across six of the City Council's priority estates.
The project is now to be progressed to Outline Business Case (submission currently no later than July 2010) and subsequently to the procurement period and mobilisation of the investment programme delivery up to the start of operational services, expected to be mid 2013.
We require a technical advisor to provide advice through the above stages and become a member of the operational team reporting to the Project Manager.
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6/10/2009
Subject: Balfour Beatty Named as Preferred Bidder on BSF
Description: Construction and Facillities Management Services
Balfour Beatty has been appointed preferred bidder for the £450 million Blackburn with Darwen and Bolton Councils BSF programme.The contractor will invest equity of £3.3 million into the delivery of the first school, Pleckgate High School, with the potential for a total of up to £20 million equity investment in the programme in total. The 25-year concesion involves a major capital investment programme.
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6/10/2009
Subject: Mouchel Posts Multimillion Pound Loss
Description: Increase in Turnover
Despite an 13% increase in turnover, Mouchel has posted a loss of £13.5m to July 2009, and has announced that it is withdrawing from the UK rail sector. The losses are being blamed on losing out on a Network Rail framework, and a £15m impairment charge in its Middle East business against fees which were not paid.
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4/10/2009
Subject: NEW STUDENT WEBSITE
Description: NEW STUDENT WEBSITE
Employers to benefit from new student website.
THOUSANDS of students across the UK and Ireland are being given the chance to sign up to a ground-breaking new social networking service that could radically change university and college life.
Studentnoticeboard.com offers students the chance to find jobs, cheap books, and affordable accommodation, all at the touch of a button.
The site offers a huge range of services including an on-line book exchange, accommodation, pub/club and business listings, and even a social networking service that could rival the likes of Facebook and Bebo.
Studentnoticeboard.com is free to join for every student in the country, and will offer extensive in depth information for students in each individual institution.
Martin Ramsden, who designed the site, said: “We’ve tried to cover every aspect of student life, making it as cheap and easy as possible”
“This is a great chance for students at different universities and colleges to network across the country which should make life a little easier, whether it be by swapping books, sharing accommodation or even finding exclusive offers and discounts, the site can benefit everyone.”
The site also plans to offer benefits to thousands of employers thanks to an innovative CV and portfolio service, allowing students to display their best work on-line, and giving companies the chance to hand pick the countries brightest prospects.
Martin added: “Studentnoticeboard.com plans to give employers looking to take on students, either on a part-time basis in term time or as a career after graduation, the chance to look at thousands of resumes and portfolios of work.
“It means companies can hand pick their candidates, in a cost effective manner.
“The site also gives businesses such as bars, pubs, clubs, restaurants and shops the chance to tap into the lucrative student trade, by promoting events, special offers and sales on-line.”
This means even smaller, local businesses can benefit from the site. They are given the chance to advertise job vacancies for free, giving them a cheap and easy way to find enthusiastic students looking for work, as well as an effective avenue to the student market. Private landlords can also list vacant properties for free, saving charges for students and landlords on middle men.
For more information go to www.studentnoticeboard.com today
Associated Link :
30/9/2009
Subject: Plans for £300m Thames Flood Defence Scheme
Description: Three New Flood Diversion Channels to be Built
The Environment Agency has revealed plans for a £300m Thames Flood Defence scheme which will include flood diversion channels, weir improvements and river widening to protect homes and businesses in west London. There are also proposals to improve the capacity of weirs at Sunbury, Molesey and Teddington, and widening Desborough Cut, near Walton-on-Thames. The plans have been put out to public consultation until 4 December.
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29/9/2009
Subject: New Multimillion-Pound transport scheme for Yorkshire
Description: Tram-Trains will Head Straight into the Heart of Sheffield & Rotherham
A new tram-train project is to be trialled in South Yorkshire, and could be running within 3 years. The project will include linking tram and train tracks at Tinsley; electrifying the 5.5-mile rail line between Tinsley and Parkgate; building the new Parkgate station, and constructing low extensions to platforms at Rotherham Central. The scheme will be funded by money already earmarked for the development of transport in our region. Originally, ministers had planned to invest £25m in the Penistone rail line between Sheffield and Huddersfield, but that scheme has been shelved due to difficulties locating suitable diesel trams for the non-electrified track.
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29/9/2009
Subject: Tube Lines to Pay Out £10m Per Month for Delays
Description: Final Bill May Be £30m-£40m
Tube Lines has confirmed that it will be paying £10m after December 31 in respect of overruns to the resignalling contract on the Jubilee Line. Whilst no official completion date has been set, Tube Lines could be facing a bill of between £30m and £40m. This was revealed at a debate on London’s transport at the Labour Party conference in Brighton.
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28/9/2009
Subject: Scottish Government Announces Schools on Building Programme
Description: 14 Secondary Schools to Get £1.25bn Investment
The Scottish Government has announced which secondary schools are to benefit from a £1.25bn building programme to repair crumbling schools and provide top class accommodation. The government and COSLA will now drive forward the process of agreeing the first set of primary schools to benefit from investment, with an announcement expected before the end of the year. Every local authority local authority area across Scotland is expected to benefit from the first phases of the school building programme which sees £800 million of funding from the Scottish Government and £450 million from local councils.
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25/9/2009
Subject: Biggest-ever PFI Scheme Approved
Description: Defence Training Review Contract Will Go Ahead
Vale of Glamorgan Council has finally approved plans for a £13bn military training academy in south Wales, and building work is expected to start at the former air base in St. Athan late next year. The scheme will be funded under the biggest-ever PFI deal. The proposed Defence Technical College (DTC) will provide specialist non-combat training for all three services on a 1,000-acre site, with up to 3,000 students present at a time. The Metrix Consortium, which is led by Qinetiq, the Ministry of Defence’s former research agency, was named as preferred bidder for the contract in 2007.
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25/9/2009
Subject: Interserve Awarded £20m Sellafield Contract
Description: Modular Evaporator Contract
Interserve has announced in a press release that it has been awarded a £20m Nuclear Module Construction Contract by Costain Oil & Gas Process at Sellafield. The contract is for the construction of 14 modules, which, when put together will form a large evaporator plant, known as Evaporator D. This will be the largest contract in the UK to use the modular technique. The modules will be built at Ellesmere Port and transported to Sellafield by sea and installed into concrete cells. The largest of the modules will weigh about 500 tonnes.
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22/9/2009
Subject: Iberdrola, GDF Suez, and SSE Express Consortium Interested in UK NDA Sellafield Site
Description: Consortium Wants to Build UK Reactors by 2020
A consortium of Iberdrola SA, GDF Suez and Scottish and Southern Energy PLC has filed an expression of interest in buying land suitable for new nuclear power plants adjacent to the nuclear site at Sellafield. Earlier this year, the consortium withdrew from the U.K. Nuclear Decommissioning Authority's online auction for three plots of land suitable for new nuclear, but said then it was still interested in other opportunities. In April, GDF Suez said that it intended to work with its partners to build one or two nuclear power reactors in the U.K. by 2020.
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22/9/2009
Subject: Dublin Mega Scheme Receives Planning Permission
Description: Boost to Construction Industry
Development company Treasury Holdings has confirmed it has received planning permission for the massive scheme in Ballymun town centre on the north side of Dublin. The Spring Cross project will include 360 apartments, 60,000 squared metres of shops, 35,000 squared metres of offices and 11,000 squared metres of other buildings including cinemas, bowling alleys, a public library and restaurants. Developers have pledged that the three-year construction phase will generate 2,000 jobs while a further 8,500 people will secure employment after completion.
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22/9/2009
Subject: OFT Fines 103 Firms £130m
Description: Companies Found Guilty of Collusion on Tenders
The Office of Fair Trading has fined 103 contractors £130 for anti-competitive bid rigging on 199 tenders from 2000 to 2006. Most of the fines are related to cover pricing where one or more tenderers obtained an artificially high price from a competitor. This distorts the tender process and squeezes out potentially cheaper bidders, and meant that the lowest bidder had no real competition. As a result, the client may have unwittingly paid a higher price.
There were also a number of instances where successful bidders paid their unsuccessful competitors compensation payments on false invoices.
The Local Government Association is calling on the contractors involved to apologise and return the money.
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22/9/2009
Subject: North Yorks Energy Plant Wins £1.7m WRAP Funding
Description: Additional Money Pledged from Future Energy Yorkshire
The £20 million anaerobic digestion plant, which will convert 165,000 tonnes of food waste which would otherwise have headed to landfill sites to electricity has been given a £1.7m grant from the UK Waste and Resources Action Programme (WRAP) through its Organics Capital Grant Fund. The first phase of Selby Renewable Energy Park, to be built on the former Tate & Lyle Citric Acid Plant in Selby.
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18/9/2009
Subject: Glasgow Airport Rail Link Scapped
Description: Council Accuses Scottish Parliament of being "Anti-Glasgow"
Glasgow City Council has accused the Scottish government of a “clear anti-Glasgow agenda” after the £400 million Glasgow Airport Rail Link project was axed by finance secretary John Swinney. The Council says that the link was vital to the city’s infrastructure for the 2014 Commonwealth games and the economic growth of the area. The planned link helped Glasgow secure the Games for the city.
The Scottish government has had to make a number of cuts, but this is the biggest project to be shelved. The Scottish government says the decision had been taken reluctantly.
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15/9/2009
Subject: Morgan Sindall Wins Thames Gateway Sports Centre Contract
Description: £38m Contract
Morgan Sindall has been awarded the the contract to build the largest sports centre in the Thames Gateway so far. Work on the £38m contract will commence in October, and will include the construction of a 50-metre, Olympic-sized swimming pool and a sports hall capable of seating 480 people. The centre may well be used for training for the 2012 Olympics.
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11/9/2009
Subject: Legal Action over New Rules of Measurement Threatened
Description: Construction Confederation Alleges Breach of Copyright
The Construction Confederation is threatening to sue the RICS over its exclusion from the New Rules of Measurement, which it also alleges breaches its copyright. The New Rules were published earlier this year and were feted as the most important recent development in quantity surveying. The Confederation is angry that it was not invited to give any input to the document, which affects contractors as it determines the way works are to be valued and measured. In addition, the Confederation will lose royalties from sales.
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9/9/2009
Subject: Manchester Council to Build First Council Homes in 24 Years
Description: £3.5m Funding Approved
Manchester City Council has announced today it will be building its first d new council homes for 24 years after winning a national social housing competition. The Homes and Community Agency (HCA) has approved £3.5m of central government funding for the city council’s bid to build 32 purpose built council homes in the Higher Blackley and Charlestown wards.
Work on the bungalows, specially designed for older residents, will begin in March 2010 with a view to the first tenants being able to move in later in 2011. Manchester’s bid was the result of a design competition held by the council in June in which five firms of architects took part.
Altrincham based architects Bowker Sadler have been selected as the winners as the council says that their designs offered the best blend of accessibility and supportive features to meet the needs of older persons. The homes will meet the high environmental design standards, helping to reduce tenants’ utility bills.
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8/9/2009
Subject: Galliford Try Wins Olympics Contracts
Description: Morrison Awarded Multiple Contracts
The contract is a call off for a range of services, including: the design, construction of the civil engineering, substructure, and below-ground service installations on a number of venues and facilities and locations for the London 2012 Olympic Games and Paralympic Games. No contract sum was specified.
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7/9/2009
Subject: Kier Wins £600m NE Maintenance Contract
Description: Latest in Kier's Local Authority Contracts
Kier Group PLC has announced today (7 September 2009) that it has signed a contract with North Tyneside Council to repair and maintain its social housing stock and other council-owned property for an initial ten-years. The contract has a potential value of over £600 million which could increase as it is extendable for a further five years. A workforce of 500 has been transferred by to Kier from the council's existing Killingworth site at Harvey Combe Work has already commenced, and will include improvements and repairs to 16,000 council homes and council owned buildings together with reactive and planned maintenance. This latest contract joins Kier's well-established and extensive portfolio of local authority outsourcing contracts and brings the total number of public sector homes maintained by Kier to over 240,000.
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2/9/2009
Subject: Vinci Poised to Buy Cegelec
Description: £910m Deal will Create European Energy Giant
France's Vinci is to buy electric engineering company Cegelec from a Qatari state-owned investment company in an all-share £910m deal designed to create a major European player in the energy services sector.
In exchang, Qatari Diar Real Estate Investment Co., a unit of sovereign fund Qatar Investment Authority, will receive 31.5 million of Vinci's shares, making the Qatari company the largest shareholder next to Vinci's employee savings fund.
Vinci says that this acquisition will enable it to expand its energy division and international penetration.
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28/8/2009
Subject: Gleeds Drafted in to Check Olympic Payments
Description: CLM Paid £151m in Last Year
"Building" is reporting that Olympic Delivery Authority has called in quantity surveyors Gleeds to look into payments being made to CLM, the joint venture between CH2M Hill, Laing O’Rourke and Mace appointed to deliver the Olympics programme. CLM was paid £151m in the year to March, and the move follows press reports after the publication of the ODA's annual report in July.
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25/8/2009
Subject: Government to Appoint Chief Construction Adviser
Description: Will Chair New Construction Category Board
The Government has announced that it plans to appoint a Chief Adviser to Government on Construction to equip Britain's construction industry with the skills and knowledge to become competitive in the 21st century. He/she will chair the Board responsible for securing value for money from the Government’s procurement of construction, promote innovation and sustainability in the industry, and be responsible for ensuring Government takes full account of the impacts of the regulatory regime on the construction industry.
The Chief Construction Adviser will be independent and report to BIS and HM Treasury Ministers, and will have the following roles:
Chair a new Construction Category Board, which will build on the existing Public Sector Construction Clients Forum (PSCCF), to oversee the implementation and further development of best value Government construction procurement;
Chair an enhanced sustainable construction strategy delivery board to help ensure policy regarding the industry is effectively co-ordinated;
Assess the key barriers to growth in the UK’s Low Carbon construction sector to ensure the UK industry is well placed to serve developing needs and markets;
Work with the industry, through the Strategic Forum for Construction, to deliver the industry improvement agenda, including the Construction Commitments;
Promote innovation in the sector, working closely with the Technology Strategy Board and other funding bodies;
Co-ordinate the Whitehall response to reports featuring construction.
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25/8/2009
Subject: University of Salford Seeks QSs
Description: Cost Consultant Needed for Phase One Masterplan
The University of Salford has issued a tender notice for the appointment of a Consultant to provide Cost Consultant services for the development of Phase 1 of the Masterplan to the detail Required to achieve outline planning consent. In addition the service provider is to provide full cost management services through to project completion for the following projects: — A new music, media and performance building to replace the inadequate facilities provided within the Adelphi Building: circa £3,000,000. — Refurbishment of the Chapman Building to provide state of the art lecture theatre facilities that can be used as a venue for arts and cultural activities: circa £4,500,000.
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25/8/2009
Subject: Amey Appointed to Thameslink Contract
Description: Renewal Work at Luton Station
Amey has been appointed to undertake the job which was included in Amey's contract in preference to the incumbent principal route contractor for the London and North East region, in order to fully integrate all aspects of the upgrade programme at Luton.
Amey has recently celebrated the award of a £4.5m contract to provide design and site supervisory services during platform extension works for the Thameslink Programme outer area stations.
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14/8/2009
Subject: Call for standard code for quantity surveying
Description: No Standard CPC Codes Exist
Board of Quantity Surveyors Malaysia (BQSM) and the Institution of Surveyors Malaysia (ISM) have called for a central product classification (CPC) code for quantity surveying services. Currently, there are no standard CPC codes for quantity surveying services worldwide. This could be due to the fragmentation of the industry where in various parts of the world, a quantity surveyor is also known as "cost engineer", "construction economist" or "building surveyor".
The two associations are to lobby at the "Building the Future Together" Congress to get the ball rolling to establish standard code for quantity surveying services.
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14/8/2009
Subject: Signed Credit Reference Application Could Evidence Contract
Description: Credit Application Identifies Contracting Party
In Estor Ltd. v Multifit (UK) Ltd., [2009] EWHC 2108 (TCC), there was a dispute over whether there was a contract in writing between the parties for the purposes of s.107 of the Housing, Grants, Construction and Regeneration Act 1996, and whether the claimant or another in the group of companies was the contracting party.
The adjudicator had concluded that there was a contract between the defendant and Estor, based on the fact that Mr. Warner, who effectively ran and owned Estor, had agreed that the defendant could undertake a credit check on the company, and because no explanation had been offered as to why someone should obtain a credit check on one company and then enter into a contract with another.
In the enforcement proceedings, whilst the judge ruled that Estor just had a realistic prospect of establishing that it was a not party to the contract, he also went on to say that if the agreement were with Estor, it was highly probable that it was evidenced in writing by the signed credit reference application.
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14/8/2009
Subject: E.C. Harris on Recruitment Drive
Description: Part of Plans to Broaden Consultancy Base
“Building” is reporting that E.C. Harris has snatched a senior director from AMEC’s nuclear division. Steve Paxton has been appointed as head of programme management. This is just one of a number of high profile appointments being made by the company in a bid to diversify into a broader consultancy.
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4/8/2009
Subject: Withholding Notices were Not Effective
Description: Content Did not Comply with the Act
In Windglass Windows Ltd. v Capital Skyline Construction and London and City Group Holdings Ltd., [2009] EWHC 2022 (TCC), the defendant resisted summary judgement, arguing that the adjudicator did not have the jurisdiction to decide on the effectiveness of the withholding notice. The court found that the purported notice did not comply with the requirements of Section 111(2) the Housing Grants Construction and Regeneration Act 1996.
There was also comment by the court on the liability of a parent company guarantor for sums awarded by an adjudicator.
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4/8/2009
Subject: DEGW and Davis Langdon to Merge
Description: Merged Business Will not Compete with Other Architects
“Building” is reporting that architect DEGW is to merge with QS Davis Langdon. . However, Davis Langdon says that the new business will not compete with other architectural practices, but that the merger was intended to bolster its consulting business. DEGW specialises in the design of office environments, ad will continue to trade under its own brand.
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22/7/2009
Subject: Court Rules on Whether Adjudication Dispute "Substantially the Same"
Description: Barr Ltd. v Klin Investments Ltd., [2009] CSOH 104
The pursuers sought to enforce an adjudication award made in their favour for £375,000. The defenders maintained that the adjudicator, Mr. Ian Strathdee, had lacked jurisdiction, that his decision had been biased and/ or that he had failed to comply with the rules of natural justice by failing to inform the defenders of his findings of fact prior to issuing his decision.
The Court of Session considered these issues and also whether the dispute referred was substantially the same as those decided in two previous adjudications.
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22/7/2009
Subject: Bovis Lend Lease Wins £1bn Elephant and Castle Deal
Description: Agreement Allows Site Clerarance Work to Continue
The £1.5billion transformation of Elephant and Castle in south London moved a step closer as Southwark Council agreed to enter into a new exclusivity deal with preferred development partner Lend Lease Europe. An original exclusivity arrangement ended on 1 July and Lend Lease has now set out a revised proposal including a new timetable for completing binding Heads of Terms and the Regeneration Agreement. In order for the council and Lend Lease to jointly commit to this, the exclusivity agreement enables the council and Lend Lease to conduct commercial negotiations with confidence that no other developer is being considered by Southwark. The agreement will also allow further work to continue on the ground including vital site clearance work on the Heygate estate
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17/7/2009
Subject: Quantity Surveyors Seeking Legal Qualifications
Description: Natural Progression from Dispute Resolution
"Building" is reporting on the increasing numbers of quantity surveyors who are also seeking to become legally qualified. This is an almost natural progression for those who find themselves involved in dispute resolution. The article explores the benefits of becoming legally qualified and the ways of achieving legally qualified status.
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14/7/2009
Subject: Morgan Sindall Wins £71m Airbus Factory Contract
Description: Project Will Diversify Company's Portfolio says CEO
Construction company Morgan Sindall PLC announced today it has been awarded a £71 million contract to build a wing assembly factory for Airbus in Broughton, Wales.
The 52,300-square-metre facility, which is expected to be completed by October, 2010, will assemble carbon fibre wings and will be built by Morgan Ashurst, the construction division of Morgan Sindall. Morgan professional services will provide engineering and concept design for the construction.
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13/7/2009
Subject: Siemens Signs Solar Energy Pact
Description: Desert Sunshine Will Power Europe
On Monday, Siemens AG's (SI) unit Siemens Energy signed a Memorandum of Understanding for the Desertec initiative to provide sustainable power to Europe, the Middle East and North Africa. Environmentally friendly power generated at solar thermal power plants in the Sahara and wind farms in North Africa is to be transported to the load centres where the power is needed. The Desertec initiative aims to meet 15% to 20% of the European power demand using solar- and wind-based electricity by 2050.
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10/7/2009
Subject: Contracts in Writing and Acceptance by Silence
Description: Aceramais Holdings Ltd. v Hadleigh Partnerships Ltd.
The dispute concerned the development of a site in Cheltenham. Work commenced in 2007, but by 10 March 2009, there were problems which resulted in the defendant, HPL, serving the claimant with an adjudication notice. The claimant wrote to the adjudicator, stating that there was no contract in writing within the meaning of section 107 of the Housing, Grants, Construction and Regeneration Act 1996, and, hence, that the adjudicator had no jurisdiction. On 16 March 2009, the claimant issued proceedings seeking a without notice injunction preventing the adjudication from proceeding. Despite this, the adjudicator went ahead, but the claimant took no part in the adjudication proceedings. The adjudicator decided that the claimant owed HPL approximately £800,000, but this remained unpaid.
After consideration of the evidence, the court concluded that the parties had contracted on the basis of the JCT Design and Build Contract because. Mr. MacPherson had the authority to bind the claimant to the contract. He was chased persistently by HPL, RBS and Bond Davidson, quantity surveyors, were engaged by RBS to monitor the project to sign the contract. He raised no queries in respect of the contract nor did he deny its relevance or validity, even though he did not sign or return it. Mrs. Scott, the claimant's solicitor, also raised no queries about the document or and did not challenge its validity. The formality of the arrangement required by RBS and Bond Davidson, and adopted by Mr. Grant, had been tacitly accepted by Mr. MacPherson.
HPL considered that they had contracted with HPL on the JCT form. Although the identity of the contracting party had changed, the project had continued. There was no suggestion that Mr. MacPherson had wanted to deal with the formalities or contractual arrangements differently than as it had been between the claimant and CTF. The claimant had been aware that HPL maintained that the JCT contract was in place, and did not deny its existence or that it was on the JCT form.
An e-mail from Mrs. Scott concerning a collateral warranty had even stated "… HPL is the developer and party to the JCT …"
The JCT contract of March 2008 set out the terms which the parties had agreed. Although the claimant had not signed it, the document clearly fell within the provisions of sections 107(2)(a) and (c), and was within the guidance given in RJT Consulting Engineers Ltd. v DM Engineering (NI) Ltd., [2002] BLR 217.
The judge rejected the argument that this was just an agreement in principle.
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6/7/2009
Subject: Court Rules on Pay-When-Paid Clause
Description: William Hare Ltd. v Shepherd Construction Ltd.
Clause 32 of the parties' contract was a pay-when-paid clause which stipulated when the employer should be deemed to be insolvent. Trinity Walk Wakefield Ltd. went into self-certified administration, a situation not covered by clause 32 because it had not been amended to reflect changes to the Insolvency Act 1986 five years previously. The court found that Shepherd could not rely upon withholding notices in the circumstances and that the clause amounted to a pay-when-paid clause.
In addition, the clause was a pay-when-paid clause, outlawed by the Construction Act, and there was no reason why Hare should bear the risk of the employer's insolvency, with whom it had no contract.
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3/7/2009
Subject: Scottish Government Plans Major Council House Building Programme
Description: £26m Investment
More than 1,343 new council homes will be built in Scotland this year backed by £26 million from the Scottish Government.
Seventeen councils across Scotland will share the money to kick-start a new generation of council houses for rent as part of the largest council house building programme for 30 years and is expected to support 3,000 jobs.
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1/7/2009
Subject: New Note of Amendment to the Construction Bill
Description: Potential Amendment to the Insolvency Provisions
A Notice of Amendment to the Local Democracy, Economic Development and Construction Bill has been posted. The amendment will insert a new clause 113A, and will require a party to a contract to provide security for payment if the other contracting party requests it to do so. If the security is not provided, the requester will be entitled to suspend its obligations under the contract. the right to suspend the works ceases once the security has been provided.
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1/7/2009
Subject: Baqus Buys Nigel Rose Group
Description: Price Dependent on Assets
Building consultancy and quantity surveyor, the Baqus Group Plc has acquired the Nigel Rose Group, which operates from four offices including Warrington. The cash price it is paying for Nigel Rose LLP and Nigel Rose Management Ltd will depend on the group’s adjusted net assets as at June 30, 2009. Net assets at the last year end were £158,469. The group made a profit of £246,062 before members' remuneration and profit shares on fee income of £1,275,585 in the year to December 31, 2008.
The Nigel Rose business began in 1964 as a firm of chartered quantity surveyors and covers the country from offices in London, Cheltenham, Wokingham and Warrington. The majority of its work in 2008 was in residential (30 per cent), healthcare (16 per cent), transport (11 per cent) and education (19 per cent) sectors.
It now handles acts as cost manager, procurement manager, commercial manager and project manager and delivers services such as risk management, construction, design and management co-ordination, value engineering and dispute resolution/expert witness services.
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26/6/2009
Subject: Court Discusses Interpretation of s.105 of the Construction
Description: Narrow and Broad Interpretation of "Construction Operations2
The court found that the application of s.105(2)(c) was not straightforward. The judge referred to previous decisions, distilling two different approaches to the question from them, one broad and one narrow. In Palmers v ABB, [1999] BLR 426, the scope of s.105(2) was construed narrowly so that construction of buildings and concrete foundations for use with the plant would not come within the exclusion nor would any painting of the internal or external surfaces to the plant. In ABB v Norwest Holt, [2000] 77 Con LR 20. the scope of s.105(2) was construed broadly so that all the construction operations necessary to achieve the aims and purposes of the owner or of the principal contractors would be exempt. It fell to the court to resolve the difference in these approaches as each party relied on a different one.
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26/6/2009
Subject: OGC Considers Setting Up Approved Contractors List
Description: Buying Solutions as a "One Stop Shop"
"Building" is reporting that Buying Solutions, the Office of Government Commerce's Executive Agency is considering setting up a list of recommended contractors to be used by any public body.
Buying Solutions is also in the throes of expanding its facilities management framework.
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19/6/2009
Subject: Ajudication Fees Amendment Made to Construction Bill
Description: Parties' Joint and Several Liability for Fees
The amendment reads:
In the absence of an agreement under subsection (1) the adjudicator shall be entitled to the payment of such reasonable amount as he may determine by wayof fees and expenses reasonably incurred by him. The parties shall be jointly and
severally liable for any sum which remains outstanding following the making of any determination on how the payment shall be apportioned.’.
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19/6/2009
Subject: Hyder Closes Down QS Arm
Description: Company to Return to “Core” Engineering Business
Hyder Consulting is reported to have closed down its Cardiff-based quantity surveying division in April, making 22 staff redundant. Hyder bought RPA, formerly Richard Parfitt Associates, in 2007. A source says that RPA was vulnerable because it had little public sector work, and private clients, such as Tesco, were cutting fees. The news is seen as an example of the risks quantity surveyors take when joining large engineering companies.
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18/6/2009
Subject: Party Liable for Costs Thrown Away
Description: Party did not Have Copy of Contract
In Bovis Homes v Kendrick Construction, [2009] EWHC 1359 (TCC), the defendant sought a stay of the proceeding under section 9 of the Arbitration Act 1996, and to refer the parties’ dispute to arbitration. Under the arbitration clause in the JCT form of contract. Whilst the claimant did not object to the grant of the stay, it sought the costs thrown away by the defendant’s late raising of the arbitration point. The defendant attempted to justify the delay in taking the arbitration point on the fact that it had no copy of the original contract.
The court allowed the application. Knowing of the existence of an arbitration clause in the contract and given its preference for using arbitration, the defendant should have raised the prospect of arbitration in its response to the filing of the particulars of claim. In addition, the response should have sought any relevant contract documents which were not in its possession. The defendant should not be prevented from raising the arbitration point late, but this was a case where it should be held liable for the claimant’s costs which would not otherwise have been incurred. The assessment of the costs thrown away would have to wait until the outcome of the arbitration.
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18/6/2009
Subject: Barrow Council Approves Port Meridian Scheme
Description: Project Will Create 60 jobs
Barrow B.C. has granted planning permission for the Port Meridian scheme, which will include a gas pipeline, gas reception, conditioning and metering plant and an access road to Rampside Road Norwegian shipping company, Hoegh, is building an LNG deepwater port 35km off the coast, where a huge £400m ship will transfer gas to the pipeline connected to the onshore facility.
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18/6/2009
Subject: Government Launches Company Rescue Consultation
Description: Use of Company Voluntary Arrangements (CVAs)
The Insolvency Service has published a consultation document, "Encouraging Company Rescue", which sets out proposals to reform UK corporate insolvency procedures. There are two main proposals:
Promoting the use of company voluntary arrangements (CVA) as a restructuring tool, by offering all companies the protection of a moratorium against creditor action (for a maximum of three months) while they formulate CVA proposals;
Facilitating loans to companies in administration or CVA to assist their rescue, by giving the repayment of such loans priority over existing creditors.
The consultation ends on 7 September 2009.
The consultation paper can be viewed at http://www.insolvency.gov.uk/insolvencyprofessionandlegislation/con_doc_register/compresc/compresc09.pdf
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15/6/2009
Subject: Galliford Try Wins £54m Campus 21 Contract
Description: West Kent College Redevelopment
The redevelopment will include the construction of a new performance arts building, a main reception area, a community hub and learning areas.Completion of the whole campus, which will serve the college's 2,300 full-time students and 12,000 part time students, is expected in 2011. Students and staff will start moving into the new buildings in Spring 2010
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15/6/2009
Subject: Germany’s Bilfinger + Berger Wins EUR200 Million Energy Contracts
Description: Demand for Services in Energy Markets is Stable says Chairman
Bilfinger and Berger has announced today (15 June 2009) that it has won new orders from the energy industries in the Netherlands and Australia worth a total of EUR200 million. Bilfinger Berger Power Services will design, manufacture, assemble and commission the high-pressure piping system as well as the medium and low-pressure piping for two power plant units at the RWE power plant in Eemshaven, the Netherlands, which will generate a total of 1,600 megawatt. Delta has extended a maintenance contract for the Mount Piper location. The two hard coal fired power plants, with a combined output of 2,400 megawatt, make a major contribution to the supply of electricity in New South Wales.
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10/6/2009
Subject: Transport Minister Announces £100 million upgrade for Blackpool to Fleetwood tramway
Description: Major Investment to Improve the Accessibility of the System
The Transport Minister, Sadiq Khan, has today (10 June 2009) announced government approval of a £100m scheme to upgrade the Blackpool to Fleetwood tram system, which will include new trams, replacement track, extra stops and a new tram depot. This will improve journey times and the accessibility of the tramway for all passengers.
The scheme upgrade will include:
* Replacing 8 km of track;
* Rebuilding tram stops ensuring they are compliant with the Disability Discrimination Act;
* Installing 14 priority signals at highway junctions to improve journey times;
* Buying a fleet of 16 Bombardier trams, which will have low floors and thus be accessible to passengers with disabilities, and shorter journey times on core services;
* Building a tram depot.
Work is to commence in June 2009 and be completed by April 2012.
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8/6/2009
Subject: National Audit Office Report on the Failure of Metronet
Description: Direct Loss to The Taxpayer Of Between £170 Million and £410 Million.
National Audit Office Report on the Failure of Metronet
Direct Loss to The Taxpayer Of Between £170 Million and £410 Million.
A National Audit Office report has found that taxpayers have lost between £170 and £410 due to the failure of Metronet – the private infrastructure company responsible for the maintenance and upgrade of sections of the London Underground. Passengers using the Tube have also suffered because the promised improvements have not been made on time, even though Metronet did deliver £4.2 billion of maintenance and upgrades under the PPP contracts.
Metronet went into administration in July 2007, primarily due to its poor corporate governance and leadership which meant that it could not manage its shareholder-dominated supply chain. Transport for London (TfL) guaranteed 95 per cent of Metronet’s borrowing, with the Secretary of State for Transport assuring Metronet’s lenders that the Department for Transport (DfT) would not just stand by should London Underground or TfL be unable to honour this guarantee. When Metronet failed, the DfT made a £1.7 billion payment to meet the guarantee so that the running of the Underground would not be compromised.
Associated Link :
5/6/2009
Subject: Top QSs Consider OGC Appeal
Description: Sweer and Gleeds Lose Out on £800m NHS Framework
"Building" is reporting that leading quantity surveyors, Cyril Sweett and Gleeds may appeal to the Office of Government Commerce after they failed to win a place in a £800m government framework after being shortlisted. Instead, a smaller practice, Pick Everard, joined the list of successful providers.
Associated Link :
3/6/2009
Subject: HBG Gateley Waring Advises Barratt on West Brom Redevelopment
Description: Up to 420 Homes to be Built as Part of Regeneration
Legal firm HBJ Gateley Wareing has advised housebuilder Barratt West Midlands on the multimillion pound regeneration of the Lyng estate in West Bromwich, the latest phase of which launched last week. Up to 420 new homes will be built on the Lyng, adjacent to the town centre of West Bromwich. The area has seen a number of initiatives over the years but still remains in need of investment. Work will commence on the estate early in 2010, with 114 new homes to be built on behalf of Lyng Community Association and around 306 open market homes.The ten-year redevelopment will mean new jobs and housing opportunities for local people. Barratt is working in close partnership with Sandwell Metropolitan Borough Council and the Lyng Community Association to draw up the project.
Associated Link :
3/6/2009
Subject: Alsop Submits £250m Planning Proposal for Mermaid Theatre Site
Description: “Unique Sculptural” Building
Alsop Architects' proposals for a £250 million hotel development next to Blackfriars Station on the banks of the River Thames have been submitted for planning. This involves the loss of the 1950s Mermaid Theatre site, which has been the subject of a heated campaign by actors and theatre groups. The new five-storey building comprises four floors of hotel accommodation above ground, reception areas on the first floor/ground floor, a conference centre with a double-height ballroom for up to 400 people, gym and spa facilities, bars and restaurants and a rooftop terrace overlooking the Thames.
Associated Link :
27/5/2009
Subject: Hochtief/ Laing O'Rourke JV Wins £350m BSF Project
Description: Work to Commence in October
A joint venture between Hochtief and Laing O'Rourke has won the £350m Salford and Wigan Building Schools for the Future (BSF) scheme, beating Catalyst Lend Lease.
This ends lengthy selection process, as an announcement of a preferred bidder was originally expected in January last year, but was postponed several times.
Associated Link :
14/5/2009
Subject: £324 Million Of The Olympic Budget To Be Invested In The Olympic Village
Description: Project Still on Budget
The Government and the Olympic Delivery Authority (ODA) have announced that £324 million of the Olympic budget would be invested in the Olympic Village. Whilst a private sector deal from Lend Lease and its banking consortium was on the table, as the economic climate has worsened considerably, the public sector is being required to carry an increased level of risk. Therefore, Ministers have decided that the Lend Lease deal is not in the best interests of the taxpayer since it would cost more public money in the long term. Over the medium to long term as the market improves the ODA will seek private investment for the Village on terms more favourable to the taxpayer. As the Village will be publicly owned, the public sector will receive returns from sales after the Games. All of the additional £324 million public investment being made today from contingency and savings is expected to be returned after the Games when the flats are sold.
This decision means that nearly a third of the way through the programme, just under £1.3 billion of the £2 billion of the contingency fund available to the ODA remains unspent.
It has also been confirmed that agreement has been reached in principle for a further £268 million to be invested into the Village through the pre-sale deal for affordable housing with Triathlon Homes. This funding is separate to the Olympic budget.
Associated Link :
14/5/2009
Subject: Building Schools for the Future Minimum Design Standard Launched
Description: Joint Development between CABE and the DCSF
The Schools Minister has launched a new Minimum Design Standard for the Building Schools for the Future (BSF) programme, which is intended to encourage excellence in design. The Minimum Design Standard will mean that designs which do not meet the rigorous standard will not be able to proceed through procurement.
Associated Link :
12/5/2009
Subject: Scottish Government to Approve Grants for Affordable Homes
Description: £644m Affordable Housing Investment Programme
Thousands of new homes for rent or low cost ownership will be built across Scotland this year. The Scottish Government says it will approve grants for a record breaking 8,100 affordable homes. This is being backed by £644 million from the Scottish Government's Affordable Housing Investment Programme. A breakdown of planned housing approvals in all local authority areas has been published.
The housing is expected to inject renewed confidence in Scotland's building industry as it copes with the economic recession. The Housing and Communities Minister Alex Neil said that the £644 million includes accelerated funding of £80 million, £20 million of which is made possible by acceleration of local government funding agreed with COSLA.
Associated Link :
12/5/2009
Subject: The Use of Mediation in Construction Disputes
Description: CCLDR Publishes Survey Results
The Centre for Construction Law and Dispute Resolution and the Technology and Construction Court have published the interim results of a survey into the types of claim being heard in the TCC Court, and the extent of theuse of mediation.
The report can be downloaded from: http://www.fenwickelliott.co.uk/files/Summary%20Report%20of%20the%20Final%20Results.pdf
Associated Link :
12/5/2009
Subject: Council Did not Act Disproportionately in Refusing to Allow Amendment to Tender
Description: Contractor’s Tender Omitted Case Studies
The court has rejected an application by J.B. Leadbitter that Devon County Council had acted disproportionately in refusing to permit it to amend its tender. The tender concerned the award of a 4-year construction framework agreement for the South West o England.
The tender process was complicated and detailed, and issued under the Public Contracts Regulations 2006. The tender rules required tenders to be uploaded electronically to a dedicated website. Only one upload was allowed, as the electronic system had been designed so as not to be capable of accepting additional information. The claimant’s upload accidentally omitted the cases studies element. The claimant attempted to re-upload the tender again 15 minutes prior to the tender deadline at 3pm, but was unsuccessful. Its tender was rejected by the defendant.
The court found that there might be circumstances where proportionality would, in exceptional circumstances, require the acceptance of the late submission of the whole or significant portions of a tender, most obviously where there has been an error on the part of the procuring authority, but, generally, even if there is discretion to accept late submissions, there is no requirement to do so, particularly where, as here, it results from a fault on the part of the tenderer.
Associated Link :
6/5/2009
Subject: Contract Tender for QS Services
Description: OJEU Advert for QS and Programme Management Servies Published
The West London Mental Health NHS Trust is advertising a contract for quantity surveying and programme management services at Broadmoor. The Project involves the design and construction of buildings adjacent to the current Broadmoor Hospital and has an overall estimated capital value up to £208m at current prices. The contract is expected to run for 9 years.
Associated Link :
6/5/2009
Subject: Carillion Joint Venture Selected as Preferred Bidder for £500m Durham BSF Contract
Description: 40 Schools to Be Delivered over the Next Ten Years
Carillion and its joint venture partners in the Local Education Partnership (LEP), have been appointed as the preferred bidder for the £500 million Durham Building Schools for the Future (BSF) programme, part of the UK Government’s £45 billion BSF programme.
The first Wave of nine schools, which comprises seven secondary schools, one Special Educational Needs (SEN) school and one primary school with a combined capital cost of approximately £110 million, will be completed by September 2012.
Three schools in the first Wave will be privately financed by a combination of borrowing and equity. Barclays and Nationwide will each provide £25 million of the £50 million of debt finance required. The LEP shareholders will contribute approximately £6.2 million of equity, of which Carillion will provide approximately £5.0 million. Carillion will also provide facilities management services for the three privately financed schools, worth approximately £25 million over the 25-year concession period.
The three subsequent Waves of the Durham BSF programme will deliver the remaining schools with an estimated capital cost of £390 million.
Associated Link :
1/5/2009
Subject: Skanska Wins £150m MOD Contract
Description: Contractor Will Build New Facilities at RAF Wyton
Skanska has been contracted to build new facilities at the UK Ministry of Defence site, Royal Air Force Wyton in Cambridgeshire. This is part of a larger modernisation programme. Work will begin this summer for completion in 2011. The project includes technical, and service and leisure premises, as well as land and civil works to improve the environment. Skanska will be responsible for all the engineering, including M&E works
Associated Link :
30/4/2009
Subject: Costs of Offshore Wind Energy Projects Increase
Description: DECC Report Shows that Costs Have Risen
The report was commissioned by the Department of Energy and Climate Change (DECC) to provide:
An assessment of the current capital and operating costs for offshore wind projects in the UK and the historical drivers for the evolution of these costs;
An initial assessment of the likely evolution of such costs, assuming current project characteristics;
The level of financial support required to encourage he short-term roll-out of offshore wind projects in the UK;
An outline of the supportive measures to be considered in providing additional support to the offshore wind industry in the UK.
The report concludes that projects which were at, or near, financial close in January 2009 had considerably higher costs than were contained in the last analysis by Ernst & Young in 2007. The report suggests how cost reductions could be achieved in future projects.
Associated Link :
26/4/2009
Subject: QSi /Utility Warehouse Fundraiser Scheme
Description: QSi /Utility Warehouse Fundraiser Scheme
Prices are increasing all the time.
Fight back by joining the QSi / Utility Warehouse scheme and ensure that you cut the cost of your gas, electricity, telephone, mobile and broadband.
You also get everything on one bill
There is also a new saver card
By joining, you also help the QSi funds and it doesn't cost you a penny
If you need more information regarding the scheme email Andrew Williams on info@andrewrwilliams.co.uk
Associated Link : http://www.theqsi.co.uk/doc/qsi%20fundraiser%20latest.doc
26/4/2009
Subject: HR Department details - Special Offers for QSi Firms / QSi Members
Description: HR Department details - Special Offers for QSi Firms / QSi Members
The recession is hitting the building industry hard. If you need to reduce staff levels or have been made redundant - Speak to HR Dept.
They will advise you of your employment rights
The QSi have negotiated reduced rates for members.
Associated Link : http://www.theqsi.co.uk/doc/qsi%20flyer.doc
26/4/2009
Subject: Manchester Professionals offer for QSi Members
Description: Manchester Professionals Offer to QSi Members
QSi Members can now advertise at special negociated rates.
See link below for details
Associated Link : http://www.theqsi.co.uk/doc/manchester%20professionals.doc
24/4/2009
Subject: University of Birmingham Advertises QS Framework
Description: Four-Year Framework
The University of Birmingham has placed an advert in the Official Journal for quantity surveyors under a framework. The successful firms will be for both new projects and for work on the university’s existing 200 buildings. The estimated value of the contract is £1.8m.
In a separate notice, the Ministry of Defence is advertising for cost consultancy/ quantity surveying services on a call-off basis across the UK. The services to be provided will also include forensic and claims services.
Associated Link :
24/4/2009
Subject: Davis Langdon Cuts a Dozen Partners
Description: 12 Partners to Go Due to Recession
“Building” reports that Davis Langdon is to make 12 partners redundant with the possibility that 25 will leave in all. The company is in the middle of redundancy consultations, and says that it is reviewing resources at every level in order to maintain the overall shape o the business.
Associated Link :
21/4/2009
Subject: Carillion reaches financial close on its 50th Public Private Partnership project
Description: Project Includes 5-year Support Services Contract
Healthcare services specialist, Clinicenta, part of leading UK support services company Carillion, has achieved financial close on the new Surgicentre facility, worth a total of £153 million, to be built at the Lister Hospital in Stevenage for the East and North Hertfordshire NHS Trust and Hertfordshire Primary Care Trusts.
The project includes a 5-year support services contract, worth some £122 million, in addition to providing the new £31 million state-of-the art facility, in which Carillion will invest some £5.6 million of equity.
The Surgicentre will treat around 15,000 people a year and significantly reduce waiting times and cancelled operations, whilst offering patients increased choice.
Construction of the new three-storey, hi-tech building will begin immediately and is due for completion in Spring 2011. It will have six operating theatres and 26 short stay inpatient beds, in addition to day surgery, outpatient and ophthalmology, including urgent eye clinic facilities.
Associated Link :
20/4/2009
Subject: QSi HR Dept Partnership
Description: QSi HR Department Partnership
The QSi has negociated a 10% fee reduction for QSi members / Practices with QSi members.
Don't miss out.
Follow the links below for more information
http://www.theqsi.co.uk/doc/a%20new%20partnership%20for%20qsi.doc
http://www.theqsi.co.uk/doc/finch_flyer[1].pdf
Associated Link : http://www.theqsi.co.uk/doc/a%20new%20partnership%20for%20qsi.doc
17/4/2009
Subject: EU Figures Show 1.8% Fall in Construction in the Euro Area
Description: 11.8% Drop in Annual Figure 2008-2009
Eurostat has issued statistics showing a fall in construction activity across the eurozone. The annual figures show that only Poland and Sweden showed any increase, whilst Slovenia, Germany and Spain experienced the biggest falls. The monthly comparison indicate an slight increase in Bulgaria, and a recovery in Germany and Slovenia of 1.9% and 1.1% respectively. There were falls in Romania, Spain and the Czech Republic.
Associated Link :
15/4/2009
Subject: Government Warned Over Offshore Wind Jobs
Description: Government Must Give Sector More Support
A report from the Institute for Public Policy Research (IPPR) is warning that the UK must rapidly expand its offshore wind capacity if it is to meet its target of sourcing 15% of its energy from renewables by 2020.
Wind energy is expected to be the greatest provider for the alternative energy, and there is the potential to create 70,000 long-term jobs in the industry. However, the IPPR is warning that the government must remove barriers to long-term investment, and increase the skills base if the country is to benefit.
The report says that the government needs to be more pro-active in establishing certainty. Some of the measures suggested are updating the national grid infrastructure, and taregting support companies to unblock bottlencks in the supply chain for parts.
Associated Link :
15/4/2009
Subject: Government Publishes Nominated Nuclear Sites
Description: Sites Have Existing Facilities
The government has published its list of nominated sites for proposed new nuclear power stations. The public now has until 14 May 2009 to comment on the nominations, which are:
1. Bradwell, Essex, NDA
2. Braystones, Cumbria, RWE Npower
3. Dungeness, Kent, EDF Energy
4. Hartlepool, Durham, EDF Energy
5. Heysham, Lancashire, EDF Energy
6. Hinkley Point, Somerset, EDF Energy
7. Kirksanton, Cumbria, RWE Npower
8. Oldbury, Gloucestershire, the NDA and Eon
9. Sellafield, Cumbria, NDA
10. Sizewell, Suffolk, EDF Energy
11. Wylfa, Anglesey, RWE Npower and the NDA.
Associated Link :
9/4/2009
Subject: GLA Study Says Shopping Space Should be In London Suburbs
Description: 2.9m Square Metres of Additional Retail Space Needed by 2013
A study conducted by Experian Business Strategies for the Greater London Authority (GLA) says that an additional 2.9 million square metres of additional retail floor space will be needed in the London area the next 22 years. Of this, 50% will be needed in outer London. The study’s findings will be used by the Outer London Commission, and in the revision of the London Plan and the London boroughs' local development frameworks. The report anticipates that London's long-term household expenditure will rise from the 2006 level of £89 billion to over £160 billion by 2031
Associated Link :
8/4/2009
Subject: Construction facing 12% fall in output
Description: Only Back to 2002 Levels in 2013, says CPA
The Construction Products Association (CPA) is predicting a 12% fall in construction output in 2009, with a further decrease of 3.4% in 2010. The CPA says that only expects that 2002 levels will be achieved in 2013. The worst affected sector has been private housing.
Associated Link :
3/4/2009
Subject: Another Three Major QS Practices Cut Salaries
Description: Reductions Vary from 10% to 20%
Three of the country’s top quantity surveyors, Davis Langdon, Cyril Sweett and Gardiner and Theobald have notified employees of their plans to reduce salaries and pension contributions due to the current recession.
At G&T, senior staff have been asked to take a voluntary 20% pay cut, whilst Davis Langdon says it is “re-engineering” its service to meet changing needs.
Associated Link :
1/4/2009
Subject: Extension to Nottingham Tram Approved
Description: Net Phase Two Given the Go-Ahead
The Secretary of State for Transport has given approval for the construction of two extensions to the existing Nottingham Express Transit System, known as NET Line One. The new lines will run from Nottingham City Centre to Clifton via Wilford, and from the city centre to Chilwell via the Queen’s Medical Centre.
Associated Link :
30/3/2009
Subject: Carillion Lodges £40m Loss of Profit Claim
Description: Claim Over Cancelled AMP Contract
Carillion is claiming £40m from Bradford Council alleging this is what it would have made in profit if the Council had not cancelled it Asset Management Project two years ago.
The £1.2 billion AMP scheme would have meant a private contractor running 600 Council-owned buildings over a 20-year period. But the contract, which was suspended for 18 months amid allegations the bidding process had been biased in favour of the winning company, was withdrawn on the day it was due to be awarded.An inquiry by public spending watchdog the Audit Commission found managers failed to follow procedures and keep records of a crucial meeting. The writ says Carillion was informed the project had been abandoned because the process was “tainted” and that it “wished to draw a line under things”.
Associated Link :
30/3/2009
Subject: UKAEA Looks for Buyers for its Commercial Business
Description: UKAEA Ltd. to Be Sold
The UK Atomic Energy Authority is seeking a purchaser for up to 100% of the issued share capital of UKAEA Limited, which provides nuclear decommissioning, waste management and site environmental remediation services and nuclear new build support services under contract both in the UK and overseas. However, t he Government has indicated that it would consider retaining a stake in UKAEA Limited.
The announcement comes after a strategic review. The government says that the sale will increase efficiency and competition, and give the taxpayer better value for money.
Associated Link :
28/3/2009
Subject: QSi /Utility Warehouse Fundraiser Scheme
Description: QSi /Utility Warehouse Fundraiser
Qsi Fundraiser / Utility Warehouse
Help the QSi raise more funds by joining the QSi / Utility Warehouse fundraiser scheme.
Members who join the scheme will save themselves money – They will also help the QSi because Utility Warehouse will provide the QSi with vitally needed funds.
If you want to discuss the scheme call Andrew Williams 0151 426 9660.
If you do call Utility Warehouse. Don’t Forget to Quote the number B92260.
Also make sure that you have copies of your recent service invoices to hand as this will same time.
Don’t Forget to Quote the number B92260
This offer is open to anyone – Not just QSi Members
See latest April 2009 review in Which? below.
http://www.uwdcvideos.co.uk/?exref=B92260
http://www.theqsi.co.uk/doc/which%20april%202009.pdf
http://www.theqsi.co.uk/doc/domestic%20tarriff.pdf
http://www.theqsi.co.uk/doc/commercial%20tarriff.pdf
Associated Link : http://www.theqsi.co.uk/doc/which%20april%202009.pdf
26/3/2009
Subject: Department of Health Publishes Guidance on Variations to PFI Contracts
Description: Guidance on the Business Case and Costs
Guidance on the Business Case and Costs.
Associated Link :
25/3/2009
Subject: HR Department Notes - Discipline & Greivances
Description: HR Dept Notes - Discipline & Grievances – the new rules!
Discipline & Grievances – the new rules!
So after April 6th 2009 the statutory dispute resolution procedures will be repealed and at the same time replaced by the new ACAS Code of Practice. Read link for more details
Associated Link : http://www.theqsi.co.uk/doc/discipline%20and%20greivances.doc
24/3/2009
Subject: Welsh Assembly Promises Schools £109m Funding
Description: Rebuilding and Improvement Schemes for 40 Schools
Rebuilding and improvement schemes at 40 schools and colleges were promised almost £109 million of funding by ministers today.
The Assembly Government has granted £78.7 million to 32 school projects after receiving 130 bids from local councils worth a combined £405 million.
It will pay for 12 new schools, with another £30.2 million going towards eight upgrades for further education campuses.
Education Minister Jane Hutt said: "This targeted investment will enable local authorities and colleges to replace sub-standard accommodation and to provide facilities more akin to the needs of the 21st century learner."
Associated Link :
23/3/2009
Subject: Baqus “Cautiously Optimistic”
Description: Programme of Acquisitions Will Continue
Despite the current downturn, and a fall in pre-tax profits from £440,000 to £365,000, quantity surveying consultants Baqus are still optimistic that they will achieve their long-term objectives this year. The AIM company was formed in 2007 by a merger of three practices. Orders, however, are also down, but the company is reporting an “upsurge” in enquiries.
Founder, Roger Knowles, says that Baqus' programme of acquisitions will continues in spite of the recession.
Associated Link :
22/3/2009
Subject: Manchester Professionals
Description: Manchester Professionals
ManchesterProfessionals.co.uk is an online professional network that quantity surveyors can join to gain new clients and referral partners in Manchester.
The website attracts 60,000 local businesses that visit to identify suitable professional services and advisors, with surveys being a key service required.
Participating associations include Business Link NW, Manchester Chartered Accountants, Chartered Institute of Marketing, Manchester Law Society, British Computer Society, CIMA and Manchester Insurance Institute.
Benefits for Joining ManchesterProfessionals.co.uk include:
· Each member can create a professional profile page outlining their expertise.
· Attract new clients and associates by being included in a search facility.
· Members can promote their services through featuring testimonials, answering survey questions and posting blogs.
· Information and knowledge can be acquired through discussing topics.
· Members can create or join online groups and register for industry events.
It is free to join the website or £84 per year for an individual business membership to post content and receive all the benefits listed above to generate new custom.
There is currently a preferential business membership rate for QSI members of £63 for the year. To take up this offer, you need to join and login, click ‘upgrade’, select ‘Business Account’ and enter the promotional code a9984.
Join today by visiting www.manchesterprofessionals.co.uk.
Associated Link : http://www.theqsi.co.uk/doc/qsi%20article.doc
20/3/2009
Subject: Appellants were not "Residential Occupiers"
Description: Court Considers Section 106 of the Construction Act
The appellants appealed against the enforcement of an adjudicator’s decision and sought a stay of the proceedings under section 9 of the Arbitration Act 1996 on the basis that there was a binding arbitration clause in the contract. The court ruled that there could be no defence to a claim to enforce an adjudicator's decision, subject to a further jurisdiction point, and that the contractors were entitled to be paid the sum awarded whether an application for summary judgement had been made or not. The appellants were in breach of contract for not paying that sum. They would be taking advantage of their own breach if they failed to pay, and then sought to stay the enforcement proceedings as if the adjudicator's decision had never been made.
A party which is ordered to pay a sum by an adjudicator has promised by virtue of the terms of the contract implied by the Act to pay that sum, and a party is in breach of contract if it does not make prompt payment.
The East Lodge, which was the subject of the works, was not the residence of either of the appellants, and was not occupied by them. At the time the contract was made, they did not intend to occupy the Lodge. It was not the appellants' dwelling or dwelling house. The court admitted that the definition in s.106 was narrow, but based on that definition and the judge's findings of fact, his decision had been correct. The appellants were not "residential occupiers" within the meaning of section 106 of the Housing Grants, Construction and Regeneration Act 1996.
Associated Link :
20/3/2009
Subject: Middle East Developer Asks for Fee Discounts
Description: "Building" Survey Shows Confidence at "Low Ebb"
Aldar Properties, Abu Dhabi's biggest developer, is asking consultants for retrospective discounts on fees of as much as 20%. It is also renegotiating prices for future works. A survey by "Building" Magazine also indicates that thwo thirds of UK companies operating in the Middle East have been asked to cut fees in the last three months.
Aldar has also frozen some projects and reduced staff levels on others.
Associated Link :
15/3/2009
Subject: The QSi – Quantity Surveyor and Building Club
Description: The QSi – Quantity Surveyor and Building Club
The QSi – Quantity Surveyor and Building Club
Is an Ecademy online networking group.
Links
http://www.ecademy.com/module.php?mod=club&c=7066
Objectives
Help members to:
1. Create a greater awareness of the QSi and Quantity Surveying matters.
2. Create a powerbase for Quantity Surveyors and allied professions.
Club Owner
The QSi - The QSi – Quantity Surveyor and Building Club is run by Andrew R Williams of Andrew R Williams & Associates Ltd on behalf of the QSi. – Tel 0151 426 9660
Associated Link : http://www.ecademy.com/module.php?mod=club&c=7066
15/3/2009
Subject: Commercial Energy Assessments
Description: Commercial Energy Assessments
Commercial Energy Assessments
By Andrew Williams, Andrew R Williams & Associates Ltd.
It is now a requirement that commercial premises need a Energy Performance Certificate if they are sold, or if a lease is granted or assigned. (Unless they are very small isolated buildings)
Public buildings require a Display Energy Certificate (DEC).
Q: When do I need an EPC?
A: When you start marketing for sale the leasehold or freehold of your commercial premises, or when you assign or grant a commercial lease.
Q: Who has to get an EPC?
A: The legal obligation is on the landlord or owner of the freehold. However, if you are a tenant who needs your landlord’s consent to an assignment of lease the chances are, your landlord is likely to pass the cost onto you.
Q:What is the difference between a Residential EPC and a Commercial EPC?
A: There is a great deal of difference between a residential EPC and a commercial EPC.
With a domestic EPC the assessor uses a RdSAP to assess the subject property. A simple domestic survey can normally be completed within an hour to and hour and a half.
Commercial Buildings are assessed using the SBEM formula. As indicated in a previous article, an SBEM calculation involves a complete measurement survey and zoning of the building, assessing the U values of major elements of the building including, floors walls, roofs, windows, doors, assessing the energy efficiency of the lighting , heating, ventilation and air-conditioning systems.
A commercial energy assessment may require just one assessor but big buildings may need a whole team.
Q: How much does a commercial EPC cost?
A This is subject to negotiation with the energy assessor There are no set scales of charges.
Q: What happens if I don’t get an EPC?
A: Fines range from £500.00 to £5000.00. Trading Standards can keep fining a law breaker until they get an EPC.
Also - The solicitors acting for a purchaser will object if an EPC is not provided because the agreement does not comply with the law.
Andrew Williams FQSI FRICS Dip NDEA
Andrew R Williams & Associates Ltd,
Chartered Quantity Surveyors / Commercial and
Domestic Energy Assessors
First Floor, HSL Buildings,
437, Warrington Road,
Rainhill
L35 4LL
Tel 0151 426 9660
Mob:07940 875076
http:/www.andrewrwilliams.co.uk
email: andrew@andrewrwilliams.co.uk
Associated Link :
14/3/2009
Subject: French & Saunders Video - Fundraiser
Description: French & Saunders Video - Fundraiser
Check out French & Saunders talking about how you can help the QSi and also save money on your bills! Simply click on http://www.uwdcvideos.co.uk/?exref=B92260
If you do call Utility Warehouse. Don’t Forget to Quote the number B92260
Also make sure that you have copies of your recent service invoices to hand as this will same time.
Don’t Forget to Quote the number B92260
This offer is open to anyone – Not just QSi Members
Associated Link : http://www.uwdcvideos.co.uk/?exref=B92260
13/3/2009
Subject: Turner & Townsend Buys American cost Management Consultant
Description: Acquisition Strengthens US Network
Turner & Townsend has bought American cost management consultant, Busby and Associates as part of its attempt to build an international network of offices. Busby has worked with US Department of Homeland Security and the University of Texas and specialises in healthcare, public sector and education projects. Turner & Townsend already has five offices in America.
Associated Link :
12/3/2009
Subject: Scottish Hydro Scheme Approved
Description: Scheme will Power 2,000 Homes
A new hydro scheme near Strathcarron that will power 2,000 homes has been approved. The 3.5 Megawatt Chonais scheme in the North West Highlands will create 30 jobs during the construction phase. This is the latest in a series of proposed schemes, as the Scottish Government is committed to meeting 50% of its electricity requirements from renewables by 2020, and an interim target of 31 per cent by 2011.
The Scottish Government's Energy Consents and Deployment Unit is currently processing 29 renewable project applications - 24 wind farms and five hydro project, and has determined 26 energy applications, including approval for 20 renewable and one non-renewable project since May 2007 - more determinations than over the whole of the previous four years, in which 19 projects were determined. New applications are being dealt with in line with the Scottish Government's new target to come to a decision within nine months, where there is no public inquiry.
Associated Link :
11/3/2009
Subject: Department of Transport Endorses High Speed Rail Plans
Description: HS2 Will Develop Business Case
High Speed 2, one of the UK’s most crucial transport projects, has been officially endorsed by the Department of Transport. The Transport Minister, Andrew Adonis, has asked HS2, the company created to develop the case for high speed rail, to advise the Department on extending services to Greater Manchester, West Yorkshire, the North East and Scotland. Initially, HS2 was asked to bring forward proposals to a new line between London and the West Midlands.
HS2 will report by the end of the year with a proposed route from London to the West Midlands, including outline options for stations for London and the West Midlands. It will provide environmental and economic assessments that will allow public consultation on a preferred route and options to be carried out in 2010.
Associated Link :
6/3/2009
Subject: National Grid Needs £4.7 Billion Investment, Says Report
Description: Investment Needed to Enable Hook Up to New Capacities
A report from the Electricity Networks Strategy Group (ENSG) says that the UK’s National Grid will need investment of £4.7 billion to enable it to be able to hook up to renewable and nuclear energy power. The ENSG estimates that 621.4 miles of new cables will be needed for the biggest expansion to National Grid since the 1960s. This follows a report from the Crown Estate which has forecast a figure of £10 billion. The ENSG says that the work needs to be started now to prevent project delays and electricity shortages.
Associated Link :
5/3/2009
Subject: Adjudicator’s Decision Not Enforced
Description: Adjudicator Failed to Give Reasons as Required Consider Defence
The Technology and Construction Court has declined to enforce an adjudicator’s decision in what the court itself described as a “relatively rare case”. In Thermal Energy Construction Ltd. v AE & E. Lentjes UK Ltd., [2009] EWHC 408 (TCC), the defendant had raised counterclaim and set-off defence of £3.75m. The parties’ contract had provided for the adjudication to be governed by the TeCSA Rules, and it was common ground that the adjudicator had been required to give reasons for his decision.
The court found that an adjudicator is obliged to give reasons in order to make it clear that he has decided all the essential issues properly put before him by the parties, so that they can understand what the adjudicator has decided and why. In the present case, it was important for anyone reading the decision to know whether or not the adjudicator proposed to decide the set-off and counterclaim, and if so, on what grounds.
There was no express reference to the set-off/ counterclaim point being one which the adjudicator recognised he had to decide, nor was it the subject of an express reference to an issue which he had in fact decided. It was evident that the adjudicator had not dealt with the point at all, and had failed to comply with his obligations.
Associated Link :
2/3/2009
Subject: BERR Issues Procurement Policy Guide
Description: Commitment to Competition and Value for Money
The Department for Business, Enterprise and Regulatory Reform has issued a new procurement manual covering: procurement principles, competition, electronic purchasing, international obligations, SMEs, and social and racial issues. The Department is committed to competition and value for money, and the guide covers the different procurement routes.
The Guidelines can be downloaded from: http://www.berr.gov.uk/files/file22013.pdf
Associated Link :
25/2/2009
Subject: Dissenting Party Still Liable for Adjudicator’s Fees
Description: Adjudicator’s Contractual Entitlement to Fees and Expenses
In Christopher Michael Linnett v Halliwells LLP, [2009] EWHC 319 (TCC), the claimant adjudicator sought to recover his fees and expenses from Halliwells. Throughout the dispute with ISG, Halliwells had challenged the adjudicator’s jurisdiction because the Referral has been served out of time, and had invited the adjudicator to withdraw, and now argued that the adjudicator could only recover his fees from ISG. The case raises issues of an adjudicator’s contractual entitlement to payment of his fees.
Although it had been intended that the parties would sign a JCT adjudicator’s contract, no such contract was signed. There had been no contract between Halliwells and the adjudicator because they did not respond to his invitation to agree to his Terms and Conditions. Acceptance by silence could only be inferred in exceptional circumstances, and these did not exist here. The judge discussed the parties’ relationship with an adjudicator, and the options open to a party which challenges an adjudicator’s entitlement to act.
However, in the present case, Halliwells asked the adjudicator to withdraw whilst, alternatively asking him to adjudicate on the merits. In doing so, they asked the adjudicator to proceed and carry out work, which, whatever the correct position on jurisdiction, was an acceptance that if the adjudicator rejected the jurisdictional challenge, he would carry out the work. Hence, the adjudicator proceeded at the request of both ISG and Halliwells, and without any express agreement as to fees. The request from Halliwells and the fact that the adjudicator proceeded with the adjudication gave rise to a contract and Halliwells’ obligation to pay the adjudicator’s reasonable fees and expenses.
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25/2/2009
Subject: French & Saunders Video - Fundraiser
Description: French & Saunders Video - Fundraiser
Check out French & Saunders talking about how you can save money on your bills! Simply click on http://www.uwdcvideos.co.uk/?exref=B92260then let me know what you think. It lasts about 3 minutes.
Please pass it on to anyone else you think might be interested in saving some money. And you could win free utilities for a year!
Don’t Forget to Quote the number B92260
Associated Link : http://www.uwdcvideos.co.uk/?exref=B92260
24/2/2009
Subject: QSi_Quantity Surveyors and Building Professionals Club
Description: QSi_Quantity Surveyors and Building Professionals Club
QSi_Quantity Surveyors and Building Professionals Club
The QSi have now established a QSi_Quantity Surveyors and Building Professionals Club on Ecademy. If you are looking to exchange ideas or looking for work, why not push the link below and join.
http://www.ecademy.com/module.php?mod=club&c=7066
Associated Link : http://www.ecademy.com/module.php?mod=club&c=7066
19/2/2009
Subject: Avoiding Procurement Pitfalls: an ACE Guide
Description: Identifies Five Key Steps to Effective Procurement
The Association of Consulting Engineers has published a guide to procurement. The ACE guide provides an overview of concepts involved in procuring the services of a project delivery team. Its principles can be applied to both construction projects and service contracts. The ACE guide identifies five key steps for an effective procurement process:
Establish the business case for the project.
Develop and define the procurement strategy.
Procure the project.
Design, build and commission the project.
Operate and maintain the asset.
In addition, the appendix to the ACE guide contains a self assessment tool, which can be used to assess the capabilities of an existing procurement team and to assist in planning for any additional professional skills that may be necessary in the future.
The ACE guide will be of interest to all those involved in construction and engineering procurement, particularly professional consultants involved in project procurement.
Free Download from http://www.acenet.co.uk/documents/2009%2001%2013%20Procurement%20Guide%20-%20final.pdf
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17/2/2009
Subject: Scottish Government Increases Payments to Housing Associations
Description: Aim is to Bolster Construction during Recession
The Scottish government is increasing the standard Housing Association Grant assumptions by an average of 6%, which equates to an additional grant of between £4,000 and £5,000 per house. These measures have been taken in response to the current financial situation and to support housing associations during this difficult period. The Government says it is committed to the role of housing associations and to ensuring that they build the maximum number of affordable homes for the public subsidy available. The changes in Housing Association Grant assumptions take immediate effect and will apply until to the end of 2009-10.
Associated Link :
16/2/2009
Subject: Airtricity Granted Exclusive Licence for Bell Rock Windfarm
Description: Fluor and Airtricity to Work with Local Authorities and Stakeholders
The Fluor Corporation announced today that its UK division, Fluor Limited, and Airtricity, the renewable energy division of Scottish and Southern Energy, have been granted an exclusivity award by The Crown Estate to develop an offshore wind farm at Bell Rock off Scotland’s Angus coastline. During the next year Fluor and Airtricity will work with a variety of local authorities, statutory and non-statutory entities and other stakeholders in order to undertake site specific consultations and environmental impact assessments before bringing forward a final plan for development of the site.
The proposed wind farm could have a total capacity of up to 700 megawatts (MW) from power generated by state-of-the-art turbines. The site is 10 kilometres from the Angus coastline and covers around 93 square kilometres.
The award by The Crown Estate follows an invitation for bids for Scottish Territorial Waters for the development of offshore wind farms and is subject to the satisfactory completion of the Strategic Environmental Assessment for offshore wind announced by the Scottish Government in October 2008.
Associated Link :
14/2/2009
Subject: Utility Warehouse News
Description: Utility Warehouse News
Utility Warehouse listed for award.
Why not join the Utility Warehouse scheme run by the QSi and save money on your gas, electricity, telephone and boardband services?
Associated Link : https://www.telecomplus.co.uk/extranet/hotnews/hn090211.pdf
11/2/2009
Subject: Company Voluntary Arrangement Does not Affect Adjudication Award
Description: Financial State Caused by Non-Payment
In Mead General Building Ltd. v Dartmoor Properties Ltd., [2009] EWHC 200 (TCC), the defendant sought to resist the enforcement of an adjudication award on the basis that the claimant was the subject of a CVA. The court found that even if the CVA were relevant in the way contended for by the defendant, it did not prevent judgement being entered in Mead’s favour. However, it was relevant as to whether or not there should be a stay in relation to that judgement.
Both the CVA and the claimant’s current trading position would be relevant factors, plus whether the claimant’s financial position was brought about by the defendant’s failure to pay the sums awarded by the adjudicator.
In the present case, it was clear that Mead's financial problems had begun because of the defendant's failure to pay. Mead was supported by its independent supervisor, and was continuing to trade successfully. The adjudicator's award was upheld.
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10/2/2009
Subject: QSi /Utility Warehouse Fundraiser Scheme
Description: QSi /Utility Warehouse Fundraiser
Save yourself money and help the QSi.
Join our fundraiser scheme
Associated Link : http://www.theqsi.co.uk/doc/which%20-%20qsi%20-%20utility%20warehouse.doc
10/2/2009
Subject: QSi Now on Ecademy and facebook
Description: QSi Now on Ecademy and facebook
Why not log in and see our new sites on Ecademy and facebook
Associated Link : http://www.ecademy.com/module.php?mod=club&c=7066
10/2/2009
Subject: Online Building Costs Service Launched
Description: Laxtonslive Provides New Generation of Building Costs Data
Laxtonslive provides online building cost data via the Internet 24 hours a day. Prices are automatically converted to your regional index and are regularly checked and updated. Accessed from your own secure login the data can be browsed and picked into a unique data set which can be downloaded to your PC.
There are three versions, Major Works, Minor Works and Alterations and Repair.
Associated Link :
10/2/2009
Subject: Welsh Assembly Agrees £15m Cash Boost for 300 New Affordable Homes
Description: Investment Will Also Help Construction Jobs
The Welsh Assembly Government has agreed a £15 million deal with housing associations in local authority areas throughout Wales to deliver up to 300 new affordable homes, the Deputy Minister for Housing, Jocelyn Davies AM has announced .The additional funding will go to registered social landlords, including housing associations, in the 22 local authority areas across Wales and allow local authorities and housing associations working in partnership to respond to the current economic situation.
Associated Link :
8/2/2009
Subject: QSi Ecademy link
Description: QSi Ecademy link
The QSi now has a presence on Ecademy, one of the most extensive business networking sites. Why not join the QSi Quantity Surveyors and Building Professional Club and help yourself through the recession
Associated Link : http://www.ecademy.com/club/QSi_Quantity+Surveyors+and+Building+Professionals+Club
7/2/2009
Subject: QSi /Utility Warehouse Fundraiser Scheme
Description: QSi /Utility Warehouse Fundraiser Scheme
Save money for your home or office and help the QSi funds.
Please join the QSi / Utility Warehouse scheme.
Associated Link : http://www.theqsi.co.uk/doc/qsi%20fundraiser%20latest.doc
6/2/2009
Subject: CIC Figures Show Increase in Adjudications in 2008
Description: Early 2009 Figures Show Continued Trend
Statistics from the Construction Industry Council show that adjudication disputes for the final quarter of 2008 were more than for the whole of 2007. In addition, January 2009 saw the highest number of adjudication appointments recorded. CIC is one of the adjudication nominating bodies.
CIC Chairman, Graham Watts, says that the increase refelects the current recession.
Associated Link :
30/1/2009
Subject: Adjudication and Part 8 Proceedings
Description: Dalkia Energy and Technical Services Ltd. v Bell Group UK Ltd.; 21 January 2009
The judgement in Dalkia Energy and Technical Services Ltd. v Bell Group UK Ltd.; 21 January 2009, concerned arguments that Bell’s terms and conditions had not been incorporated into the parties’ contract, so that the Scheme for Construction Contracts (England and Wales) Regulations 1998 applied instead of the adjudication provisions in Bell’s terms and conditions. Further Dalkia argued that the adjudicator lacked jurisdiction. In addition, Dalkia submitted that this application was not suitable for proceedings under Part 8 of the Civil Procedure Rules.
Bell submitted that Dalkia had given the adjudicator the authority to reach a binding decision on his own jurisdiction, which could not be opened by the court. In addition, Bell argued that because the parties were in agreement that there was a written construction contract, the adjudicator’s decision on whether that contract incorporated a particular set of conditions was a decision which he had been entitled to reach as part of the dispute referred to him, and the court had no power to review it or overturn it. The court found that since there had been no unequivocal acceptance by Dalkia that they would abide and comply with the decision on jurisdiction, Bell’s argument failed.
If Bell’s terms and conditions were not incorporated, then the adjudication clause, clause 12, would be lost and the Scheme for Construction Contracts would apply instead. On a quick comparison, the judge found that the differences between the two were largely cosmetic. An adjudicator would have had to be appointed to any dispute whatever procedure applied. Therefore, the adjudicator’s decision on whether a particular set of conditions were incorporated would be part of the dispute properly referred to him, and, normally, would not be a matter in which the court would interfere. The present case, however, the point arose in Part 8 proceedings, where the court has been asked to give a final and binding determination on the issue. In those circumstances, there can be no question of the court lacking jurisdiction.
Associated Link :
30/1/2009
Subject: No Breach of Natural Justice in Adjucation Because of New Claim
Description: Dispute had Crystallised Between the Parties
In Bovis Lend Lease Ltd. v The Trustees of the London Clinic; 28 January 2009, the court rejected the defendant’s attempt to resist the enforcement of an adjudication on the basis that a dispute had not crystallised between the parties. A dispute had crystallised about the entitlement to extensions of time and prolongation costs when the defendant had rejected Bovis’ claims as unsubstantiated. The defendant could not complain that it had had insufficient time to consider what it alleged was a new claim based on a expert report supported by a voluminous amount of supporting evidence. Neither the defendant nor its advisers had complained that they had had insufficient time to prepare the response. When they had asked for additional time, which was only once, Bovis had granted it. They could not now allege that there had been a breach of natural justice.
Associated Link :
30/1/2009
Subject: Student Placement
Description: Work Experience
Student undertaking BTec in construction at Portadown, Northern Ireland, wishing to pursue a career as a quantity surveyor is looking for work experience. If you are able to help please contact the administration at admin@theqsi.co.uk
Associated Link :
27/1/2009
Subject: Adjudication and Complex Cases
Description: TCC Court Considers Potential for Breach of Natural Justice
In Dorchester Hotel Ltd. v Vivid Interiors Ltd., the court considered whether there was the potential for a breach of natural justice in the adjudication of complex disputes. The claimant in the present case sought declarations that there was the risk of a breach of natural justice because the final account dispute was so complex because the d would have an unfair tactical advantage, given the size and complexity of the claim. The documentation produced by the d ran to some 37 lever arch files, plus expert witness reports. The claimant complained that unless the parties were to agree a realistic timetable allowing the claimant a fair and reasonable opportunity to review the documentation and submit its own response and factual and expert evidence, any decision made by the adjudicator would be unenforceable because of the breach of natural justice.
The judge made comment on how allegations of “breach of natural justice” would be regarded by the courts with some scepticism, as the familiar concepts of natural justice were not always easy to reconcile with the necessity for speed in the adjudication process. In the present case, the applications would be refused because the adjudicator was confident that he could come to a conclusion in the time available, and, although the timetable was tight, at that stage, the court was unable to say that it could not be said that it was incapable of producing a fair result. In addition, the claimant was not left without a remedy, as any adjudicator’s decision could be challenged through the courts.
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27/1/2009
Subject: OGC Review Identifies Three Best Practice Contracts
Description: Three Contracts Satisfy the Achieving Excellence in Construction initiative
A review of construction contracts commissioned by the Office of Government Commerce and conducted by Ove Arup has identified three standard forms of building contract which satisfy the OGC’s Achieving Excellence in Construction initiative principles. The contracts are the JCT’s Constructing Excellence suite, the New Engineering Contract (NEC3 )and the Association of Consultant Architects’ partnering contract, PPC 2000. These three contracts would enable parties, using them correctly, to achieve OGC's Achieving Excellence in Construction standards from which the Evaluation Criteria are derived, says the OGC. No single contract was found to be superior to the others in all respects. Earlier reviews have only identified the NEC 3 contract as satisfying the OGC’s criteria. Some of the criteria used to evaluate the contracts were: the encouragement of collaborative working, the achievement of value and supply chain management, and the encouragement of early dispute resolution or dispute prevention.
Associated Link :
26/1/2009
Subject: Department of Energy and Climate Change Announces Severn Tidal Power Shortlist
Description: Mixture of Barrages and Lagoon Schemes
The Department of Energy and Climate Change has announced a proposed shortlist of Severn Tidal power schemes, the main one of which has the potential to generate 5% of the country’s electricity needs. The shortlist includes:
Cardiff Weston Barrage: A barrage crossing the Severn estuary from Brean Down, near Weston super Mare to Lavernock Point, near Cardiff. Its estimated capacity is over 8.6 Gigawatts - twice that of the UK's largest fossil fuel power plant - and it could generate nearly 5% of UK electricity;
Shoots Barrage: Further upstream of the Cardiff Weston scheme. Capacity of 1.05GW, similar to a large fossil fuel plant;
Beachley Barrage: The smallest barrage on the proposed shortlist, just above the Wye River. It could generate 625MW;
Bridgwater Bay Lagoon: Lagoons are radical new proposals which impound a section of the estuary without damming it. This scheme is sited on the English shore between east of Hinkley Point and Weston super Mare. It could generate 1.36GW;
Fleming Lagoon: An impoundment on the Welsh shore of the estuary between Newport and the Severn road crossings. It too could generate 1.36GW.
All ten projects and the proposed shortlist will now be subject to a three month public consultation which begins today.
Associated Link :
24/1/2009
Subject: Facebook
Description: Why not log into QSi on Facebook
Why not log into QSi on Facebook
http://www.facebook.com/event.php?eid=41795380781#/group.php?gid=44576768718
Associated Link : http://www.facebook.com/event.php?eid=41795380781#/group.php?gid=44576768718
23/1/2009
Subject: Nuclear Decommissioning Authority Chooses Its New Sites
Description: NDA Confirms its Nominations
The Nuclear Decommissioning Authority has confirmed that they expect to nominate Sellafield, Wylfa, Oldbury and Bradwell as potential sites for new nuclear power stations. The new projects could create 9,000 construction jobs, with 1000 skilled workers needed when the plants become operational. The power stations will be worth £2bn to each region.
The government is to call for nominations for the new sites next week. Anyone can nominate a site, but nominations either have to be supported by a credible nuclear power operator or nominators have to demonstrate that this is a credible site for deployment by 2025. In both cases nominators must have raised awareness with local communities of their nomination.
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23/1/2009
Subject: Wanted! QSs in China
Description: Despite Global Downturn, Prospects Good for British Consultants
“Building” is reporting that, although affected by the global recession, China is still crying out for quantity surveyors due to its appetite for “landmark public buildings”. The main boom areas are not the main cities but what are described as the “second and third tier cities” which are cheaper and are attracting investors to build there. These cities are also less reliant upon foreign demand and, therefore less affected by what is happening in the global markets.
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21/1/2009
Subject: Crossrail Gets Independent Complaints Commissioner
Description: Residents Will Have Access to Helpline and Community Relations Representatives
The Transport Minister and the Mayor of London have announced the appointment of Tony Gregory as the independent Crossrail Complaints Commissioner. Mr. Gregory will assist residents and members of the public who feel that complaints about disruption caused by the construction of the project have not been satisfactorily resolved with the contractors. Crossrail is the biggest transport project in London and the South East for 50 years. As construction progresses, Community Relations representatives and Crossrail's 24 hour public helpdesk will help to resolve any problems that might occur.
Residents will be encouraged to approach Crossrail or their contractors directly as the first port of call. However, if the problems cannot be resolved, the independent adjudicator will step in. The Independent Complaints Commissioner replaces the Crossrail Referee because Cross London Rail Links Limited has now become a delivery rather than a planning organisation after Royal Assent of the Crossrail Bill and subsequent signing of the governance agreements last year.
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21/1/2009
Subject: Consultation on Building More Council Houses
Description: Councils Would be Given More Freedom to Build
Under government proposals, councils will be able to keep all the rental income from any homes they build, as well as keep the receipts from any of those homes which are later sold through Right to Buy. This additional money could free councils to invest in the building of more council houses, helping to deliver more homes for families in need.
Councils currently only build a few hundred council homes a year, with the majority of new social homes being built by registered social landlords. The consultation proposals would seek to boost this build rate by removing some of the financial barriers stopping councils from building new properties and increasing their housing stock.
The Housing Minister Margaret Beckett said she wanted local authorities to play a bigger role in the delivery of council housing and invited councils interested in building more homes to discuss their ideas with the Homes and Communities Agency.
Associated Link :
19/1/2009
Subject: Multimillion Pound M80 Contract Announced
Description: New 11 Mile Stretch Between Stepps and Haggs to be Built
The national transport agency Transport Scotland has signed a contract with Highway Management (Scotland) Ltd. for a £310 million project to construct a new 11 mile (18 km) stretch of the A80 between Stepps and Haggs. This will also include costs for maintenance of the road for 30 years. Transport Minister Stewart Stevenson the project is a welcome boost for Scotland's construction industry as it will deliver over 500 jobs over the two-year construction period. The Highway Management (Scotland) Ltd., consortium comprises Bilfinger Berger UK Ltd, John Graham (Dromore) Ltd. and Northstone (NI) Ltd. Over £2.5 billion is to be invested in Scotland's strategic transport networks over the next three years and the M80 project forms part of this major infrastructure programme that will return significant benefits across the country. This will deliver not only substantial, direct economic savings to businesses and individuals that come from improved transport links, but also improved road safety and other wider social gains such as better accessibility and reduced environmental impact.
Associated Link :
16/1/2009
Subject: QSi Now on Facebook
Description: QSi Now on facebook
The QSi is now formed a group on Facebook.
Why not log onto facebook and join the new site?
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16/1/2009
Subject: Consultancy Partners to Stop Taking Profits
Description: Redundancies and Rights Issues in Other Companies
“Building” magazine is reporting that, in a response to the downturn, partners in a number of consultancy firms, including Davis Langdon, have stopped taking cash from the business in order to boost balance sheets. Other consultants are looking to cut jobs, and Rider Levett Bucknall is considering a rights issue.
Despite this, Davis Langdon says that it is looking for acquisitions.
Associated Link :
16/1/2009
Subject: Scottish Building Federation Leaves Construction Confederation
Description: From 2010 Confederation Will Have No Members
The Scottish Building Federation is the latest construction body to leave the Construction Federation, joining the Civil Engineering Contractors Association and the National Federation of Builders which resigned before Christmas. The Major Contractors Group and the National Contractors Federation left in 2008 to set up the Major Contractors Group. This last resignation signals the death knell for the Confederation.
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15/1/2009
Subject: Society of Construction Law Publishes Paper on Concurrent Delays
Description: Consideration of City Inn Ltd. v Shepherd Construction Ltd. , [2007] CSOH 190
The Society of Construction Law has published a new paper, in which Jeremy Winter analyses in some detail at the decision of Lord Drummond Young in City Inn Ltd v Shepherd Construction Ltd heard in the Scottish Outer House, Court of Session in 2007. The author looks first at the facts of the case and then the judge's consideration of the case law, quoting extensively from the judgment and the cases referred to in it. The author then quotes the judge's conclusions at some length before commenting on whether the judge correctly summarised the law and/or correctly applied it.
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15/1/2009
Subject: Government Pledges Billions to Improve Transport Infrastructure
Description: Geoff Hoon Sets Out Infrastructure Plans to Parliament
Transport Minister, Geoff Hoon, has updated Parliament on government plans to improve the transport infrastructure across England. Both rail and roads are to benefit from billions of pounds-worth of investment to improve motorways and railways. On the railways, the government is planning increased electrification of the network. Mr. Hoon said that the strongest case for electrification was the most heavily used parts of the Great Western mainline from Paddington and the Midland main line north of Bedford.
A programme of £6bn is planned to improve some of the most congested parts of the M1, M25, M6, M62, the M3 and M4 approaching London, and the motorways around Manchester, Birmingham and Bristol.
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15/1/2009
Subject: Government approves Heathrow Third Runway
Description: Plan Will Go Ahead Despite Protests
The Transport Minister, Geoff Hoon, has told Parliament that the government has approved plans for the construction of a third runway at London’s Heathrow Airport, despite opposition from environmentalists, MPs and local residents. Union and business leaders have been advocating the project, which they say is vital for the UK economy. Mr. Hoon has also announced increased investment in public transport, including possible high-speed rail links to the airport.
Mr. Hoon said that the government was satisfied that environmental targets could be met as there would be an initial cap of 125,000 flights on the new runway.
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9/1/2009
Subject: Scottish National Planning Framework to be Finalised in Spring
Description: Framework Document has 12 Major Projects
MSPs have until February to respond to to Scotland's second national planning framework which contains 12 projects. The national projects include: the second Forth Road Bridge, airport access upgrades to the Grangemouth freight hub, the 1024 Commonwealth games facilities and a power station at Hunterston.
The full document can be viewed at http://www.scotland.gov.uk/Publications/2004/04/19170/35317
Associated Link :
9/1/2009
Subject: Tesco Cuts QSs’ Fees
Description: 20%-50% Reduction in Fees
"Building" is reporting that, in a response to the economic downturn, Tesco has written to its panel of consultants, including Turner & Townsend and Faithful and Gould, asking them to accept cuts in their fees or lose work. It is believed that Tesco has also written to its contractors demanding that they accept price cuts. Tesco procures about £1.4bn-worth of work each year.
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9/1/2009
Subject: Court Orders Framework Contract to be Set Aside
Description: Public Procurement Rules Differentiate Between “Public” Contracts and “Frameworks”
The Northern Irish Court has ordered that a four-year framework agreement for construction work in schools awarded by the Department of Education for Northern Ireland be set aside. The framework had been awarded in breach of the public procurement rules. Whilst, normally, the award of damages would be the appropriate remedy for breaches of the rules, in the case of framework agreements this restriction had the potential to be more damaging. This contract had been awarded for four years and involved the expenditure of £55m of public money. The claimants might find it impossible to quantify its claim until the framework was at an end, causing delays and complexity in bringing the litigation to a conclusion. In addition, any damages would have to be paid from the public purse. It was important that public contracts be awarded on the basis of transparency and equal treatment.
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9/1/2009
Subject: Adjudicator Asked Right Question
Description: No Excess of Jurisdiction
Castle Inns challenged an adjudicator’s award, arguing that he had acted in excess of his jurisdiction by ignoring the contract between in and Curot Contracts, and had decided the issues on the basis of what he considered to be reasonable. The adjudicator had concluded that the parties’ contract was “inappropriate” because the information available at the tender stage had been insufficient to produce a detailed Contract Bill for all the work required by the contract. The adjudicator decided that the revised drawings produced amounted to variation instructions. The court rejected this submission. The adjudicator had asked the right question and had answered it, whether or not he had been wrong.
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8/1/2009
Subject: Government Publishes Nuclear Consultation on "Jusitification"
Description: EU Law Requirements Must be Met
The Government has published a consultation on the “Justification of New Nuclear Power Stations”, following an application from the Nuclear Industry Association (NIA). Under EU law, before any new nuclear power station is built, their designs must be “justified”. This involves high-level, generic assessment to determine whether the overall benefit of the practice of ionizing radiation outweighs any associated health detriment.
The Government published a White Paper on Nuclear Power in January 2008, which said that energy companies should have the option of investing in new nuclear power stations and set out a programme of actions which need to be taken by Government to facilitate this investment. One of these actions concerns justification.
The consultation closes in March 2009, and the documents can be viewed at http://www.berr.gov.uk/whatwedo/energy/sources/nuclear/consultations/open/page44523.html
Associated Link :
6/1/2009
Subject: Government Announces £18m Deal to Buy More Affordable Homes
Description: Deal under Government's National Clearing House with Bovis Homes
The government has announced today (6 January 2009) a £18 million deal to provide more affordable housing and to help support industry its programme of action to tackle current difficulties in the housing market.
The deal, which has been done through the Government's National Clearing House with Bovis Homes, enables house builders to sell their unsold stock to Housing Associations for use as affordable housing, either for rent or low cost home ownership. 379 houses across the country will now be available to families on housing association waiting lists. A total of 4,800 homes have now been brought into use as affordable housing for a total of £160 million, with further such deals in the pipeline.
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6/1/2009
Subject: Happy New Year from the QSi
Description: Happy New Year from the QSi
Happy New Year everyone. Here's hoping that the ecomony picks up. Help yourself stay one jump ahead by logging onto the QSi site
Associated Link :
26/12/2008
Subject: Merry Christmas and a Happy New Year from the QSi
Description: Merry Christmas and a Happy New Year from the QSi
Hope everyone has a Merry Christmas and a Happy New Year. Please log on over the holiday period and check out the QSi website. We have added a lot over the last year.
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17/12/2008
Subject: Adjudicator has Discretion about Site Visit
Description: No Breach of Natural Justice
An adjudicator’s decision not to make a site visit to see alleged defects was not a breach of natural justice. Because the time constraints imposed by the adjudication process, the justice meted out was not always “pure” as in cases which go to a full trial. In the present case, the adjudicator had concluded that because there had been no withholding notice, there could be no set-off or abatement, and he had felt that there was enough evidence to make a decision about whether the defects complained of by Mr. Eaves were design defects or workmanship defects on the part of Gipping Construction.
Associated Link :
16/12/2008
Subject: QSi /Utility Warehouse Fundraiser Scheme
Description: QSi /Utility Warehouse Fundraiser Scheme
Which? confirms that Utility Warehouse are the best buy. This time for Broadband. Join the QSi / Utility Warehouse Scheme
Here’s how it works:
It’s easy to join. Just call 0800 1313 000 and they will talk you through the process. It costs you nothing…in fact it could save you a lot! You’ll need to give them our appeal number - CFR Number B92260 to make sure your donations come to us.
Associated Link : http://www.telecomplus.co.uk/extranet/hotnews/hn081215.pdf
15/12/2008
Subject: Utility Warehouse / QSi Fundraiser Scheme
Description: Utility Warehouse / QSi Fundraiser Scheme
Help the QSi raise funds and help keep your bills in check. Join the Utility Warehouse / QSi Fundraiser Scheme
Associated Link : http://www.theqsi.co.uk/doc/qsi%20fundraiser2.doc
15/12/2008
Subject: Baqus Eyes Pettifer Consulting Arm
Description: Sale of PCM Must Go Through by 19th December
Dutch consultant Grontmij and UK firm Baqus are believed to be among several bidders interested in buying the PCM consulting arm of Pettifer Group, say sources. The £50m-turnover Pettifer Group went into administration at the end of last month.
While the rest of the Warwickshire-based group will be broken up and sold, administrator KPMG is understood to be seeking a sale of the £10m-turnover PCM arm as a going concern. PCM is seen as a good opportunity because it is a niche consultancy.
Associated Link :
15/12/2008
Subject: Mandelson Launches Prompt Payment Code
Description: New Code to Help SMEs
Business Secretary Lord Mandelson has launched a new Code of Practice to help increase the speed of payments to smaller companies. The code, developed with the Institute of Credit Management and supported by major business organisations, aims to establish a clear and consistent policy in the payment of business to business bills. The Institute of Credit Management will host the code on its website and will include a facility for suppliers to raise concerns about late payers.
The Code of Conduct, which leading suppliers are urged to sign, focuses on three main areas:
A commitment to pay suppliers on time;
To give clear guidance to suppliers; and:
To encourage good practice.
Associated Link :
15/12/2008
Subject: Scottish Building Federation Calls for Industry Task Force
Description: Task Force Needed to Secure Projects
The Scottish Building Federation is warning that a task force is needed to ensure that major projects such as the new Forth Bridge go ahead, and is calling upon the Scottish government to take action. The SBF is concerned not only about job losses, but the loss of skills in the industry. Statistics show that there have been 20,000 job losses this year. A separate report is predicting that there will be 70,000 home repossessions this year.
Associated Link :
15/12/2008
Subject: Government Announces £400m Affordable Housing Plan
Description: 130 Developers Sign Up to HomeBuy Direct Scheme
Housing Minister, Margaret Beckett, has today (15 December 2008) approved a £400m scheme to help first time buyers purchase a home. Over 130 developers have agreed to offer the HomeBuy Direct scheme which will help up to 18,000 first time buyers to purchase a home at sites across England aided by an equity loan, part funded by the Government and the developer. The equity loan, which will be free of charge for five years, can be used as a deposit and can cover up to 30% of the purchase price.
First time buyers could, therefore, buy a house costing £180,000 for £126,000. Potential buyers with a household income OT less than £60,000 will be able to apply. The scheme will also assist house builders in the current economic climate.
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11/12/2008
Subject: Adjudicator Has Jurisdiction Over Varied Contract
Description: Alleged Multiple Contracts were One Varied Contract
Mr. Justice Akenhead has ruled that a series of agreements entered into by Deerglen and Air Design were not a series of individual contracts, but variations of the parties’ original mechanical services contract. Consequently, the adjudication clause in the underlying subcontract applied to the agreements, and the adjudicator had the jurisdiction to hear the parties’ dispute. Deerglen had argued that the series of letters sent to Air Design for additional works were individual contracts without adjudication clauses, and, hence, the adjudicator was without jurisdiction.
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5/12/2008
Subject: Amendments to Part 2 of the Housing Grants, Construction and Regeneration Act 1996
Description: Impact Assessment Published
The Impact Assessment for the above has just been published. This impact assessment contains information on options considered for the implementation of amendments to the 1996 "Construction Act". A draft version was originally published in July 2008 for public consultation. This consultation closed in September 2008 and this assessment takes into account comments made during that consultation.
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4/12/2008
Subject: Construction Act Payment Proposals to Go to the House of Lords
Description: Details Unchanged from Pre-Queen’s Speech
A bill to improve the payment regime on construction contracts is to be introduced in the House of Lords on Friday. The Local Democracy, Economic Development will more firmly establish in law changes to the 1996 Construction Act.
It is believed that the details are mostly unchanged from those contained in the pre-Queen's Speech in May. The full measures will be announced on Friday, and will include measures to improve payment regimes and adjudications. In addition, the government has also promised to improve apprenticeships with an Apprenticeships Reform Bill. Both measures were included in the Queen’s Speech yesterday (3 December).
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4/12/2008
Subject: Balfour Beatty and Areva Join Forces to Build EPR Reactors
Description: Construction Could Start in 2013
Balfour Beatty announced today (4 December) that it is partnering with AREVA to ensure effective delivery of a fleet of EPR nuclear reactors (EPRs) in the UK. The two companies will work together to identify the skills and resources required to deliver a fleet of EPRs and to put an effective supply chain in place. It is estimated that the nuclear programme could sustain between 10-15,000 jobs over a 25-year period.
Site construction of the first EPR could start as early as 2013. The Energy White Paper in 2007 first set out the UK Government’s in-principle support for a programme of new nuclear power stations in the UK.
In a separate development, Balfour Beatty has also formed a joint venture with VINCI Construction to help deliver project management, construction and civil engineering infrastructure for the EPR programme in the UK. VINCI’s UK-based construction and engineering companies include Taylor Woodrow and Norwest Holst. It will also rely on the expertise of VINCI Construction Grands Projets.
This exclusive alliance will draw on the extensive knowledge and experience of the VINCI Group on international nuclear programmes. This will be harnessed in support of Balfour Beatty within the AREVA partnership and to bid for EPR sites for utilities adopting alternative procurement models in the UK including EDF.
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3/12/2008
Subject: Cash Starved Contractors Forced to the Wall
Description: Banks Deny Companies Access to Funds
Another four well known contractors have succumbed to the downturn. Pettifer Construction, Linpave, York House and Robin Elllis have all failed, and contractors are blaming banks for making the current economic situation worse by refusing access to overdraft facilities, irrespective of companies having a good credit history. More and more contractors are turning to the £25m Transition Fund which has been established by the Regional Development Agencies.
Contractors are also being force into use their own cash to cover shortages in the funding of some privately financed schemes, the UK PPP Infrastructure Financing Conference 2008 has been told. The Treasury is working with public sector clients to reach financial close on projects such as BSF schemes and the M25 extension. The Treasury PFI Adviser has said that restoring bank financing is a government priority.
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2/12/2008
Subject: Blis Books NEC
Description: Bliss Books NEC
Bliss Book Catalogue NEC
Associated Link : http://www.theqsi.co.uk/doc/nec.pdf
2/12/2008
Subject: Bliss Books ICE
Description: Bliss Books ICE
Bliss Books ICE
Associated Link : http://www.theqsi.co.uk/doc/ice.pdf
2/12/2008
Subject: Bliss Books JCT
Description: Bliss Books Catalogue JCT
Bliss Books Catalogue JCT
Associated Link : http://www.theqsi.co.uk/doc/jct2005.pdf
2/12/2008
Subject: Bliss Books JCT
Description: Bliss Books Catalogue JCT
Bliss Books Catalogue JCT
Associated Link :
27/11/2008
Subject: Prime Minister Meets Housing and Construction Leaders
Description: Discussion of Government Plans to Assist the Industry Through the Recession
Gordon Brown has met with housing and construction leaders to Downing Street to discuss the Government’s plans to help the industry through the economic downturn and to get mortgage markets moving again. The Government announced a number of measures in the Homeowners Support Package in September, including the guarantee of more investment in social housing and greater protection for people in danger of falling into arrears. It was agreed that liquidity and affordability were the two main challenges facing housing in the UK. Mr. Brown said that the flow of money was “not what it should be”.
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27/11/2008
Subject: Scotland Pledges £9m to Finance Housing Developments
Description: Accelerated Investment for Housing Associations
Scotland’s Deputy First Minister Nicola Sturgeon has revealed that accelerated investment of £9 million will finance a string of housing developments across Scotland. The funding will allow housing associations to purchase unsold stock from the private sector, increasing the availability of much needed affordable housing.
The funding will support projects across Scotland:
£3.5 million will help accelerate site starts/construction on five projects in Highland, Stirling, Fife, West Lothian and South Ayrshire
£4.1 million to fund land purchase by housing associations for future developments in Orkney, Perth & Kinross, Falkirk, East & West Dunbartonshire, and Argyll
£1.4 million to fund purchase of suitable unsold stock from the private sector in Falkirk and Perth & Kinross
The £1.5 billion Affordable Housing Investment Programme is allocated mainly to RSLs (Registered Social Landlords).
Approximately 70 per cent of the programme is spent on helping RSLs to meet demand for new social housing for rent, on average subsidising about 60 per cent of development costs of each new house.
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27/11/2008
Subject: Planning Bill Receives Royal Assent
Description: “Green Light” for Green Energy
The granting of Royal Assent to the Planning Bill means that the green infrastructure needed to provide the UK’s future energy needs can now go ahead. A third of the country’s electricity generation capacity must be replaced in the next few years and the old planning system was unable to cope with this need. Many low carbon projects will now receive faster planning approval.
The government will issues a document in the New Year which will detail how the new Infrastructure Planning Commission will be established. The IPC will decide whether projects will go ahead. There will also be National Policy Statements detailing national infrastructure priorities for the country in areas such as energy, aviation, road and rail transport, water and waste.
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25/11/2008
Subject: Government Pledges Extra £1bn to Accelerate Key Transport Projects
Description: Improved Transport Links to Ports and Airports Planned
The Transport Secretary, Geoff Hoon, has confirmed that an extra £1 billion will be invested in major transport projects next year to stimulate the economy by accelerating Government plans to cut congestion and significantly increase rail capacity. Three transport “milestones” have been indentified. These include:
The acceleration of work to make better use of the motorways following the feasibility study into the introduction of hard shoulder running;
The commencement of work on a fast link between the A1 and M1 two years early;
£165m towards creating a new road link between Manchester Airport and the A6 to the east;
An extra £54m to enhance the long-term freight capacity of the North London rail link;
Up to £30m will be available to help improve access on the A160/A180 to Immingham Port on the River Humber.
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21/11/2008
Subject: Annual Housing Starts Continue to Decline
Description: House Building Figures for September Released
The latest national statistics on house building were published on 20 November 2008.
Statistics in this release present figures on new build housing starts and completions in England. Figures for the UK and constituent countries are also available in the accompanying tables.
The latest statistics report on the period July to September 2008 and update those previously released on 21 August 2008.
Key points from the latest release are:
There were an estimated 22,200 seasonally adjusted housing starts in England in the September quarter 2008, down 33 per cent on the previous quarter and 48 per cent lower than the September quarter 2007.
Private enterprise housing starts (non-seasonally adjusted) were 55 per cent lower than the September quarter 2007. In contrast, housing starts by Registered Social Landlords (non-seasonally adjusted) have risen 20 per cent over the same period.
Annual housing starts figures for England continued to decline. They totalled 126,700 in the 12 months to September 2008, down by 26 per cent compared with the 12 months to September 2007 and 31 per cent below their 2005-06 peak.
Housing completions in England fell by 10 per cent from the previous quarter to an estimated 33,300 (seasonally adjusted) in the September quarter 2008. Compared with the September quarter 2007, completions were down by 18 per cent. Quarterly completions exceeded starts for the fourth quarter in a row.
Annual housing completions in England totalled 154,300 in the 12 months to September 2008, down by 9 per cent compared with the 12 months to September 2007. Regionally only the South East is showing a continuing increase in the number of completions.
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21/11/2008
Subject: Menta Proposes Redevelopment of Croydon
Description: Plans Include Transport Interchange
Developer Menta has submitted plans to Croydon Council for a £500m residential-led, mixed-use scheme for a site next to East Croydon station. The proposals, designed by Ken Shuttleworth's Make, are based around four towers up to 45 storeys high with 1,042 homes, 500,000 sq ft of offices and retail space, and a public square. The Royal Bank of Scotland is funding the development
The project's section 106 commitments include affordable homes above Royal Mail's new sorting office on the site of Cherryfield Meat Packers Yard, and a sports facility on the rooftop.
The development of the six-acre site will be phased with the Royal Mail sorting office completed first to allow it to relocate from its existing building, which is currently on the site proposed for the office tower. The residential and commercial elements will follow.
The developer has made provisions to include a link to the station, a new station plaza and a transport interchange for whenever Network Rail confirms its plans to redevelop East Croydon station.
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21/11/2008
Subject: Notification of claims
Description: Notification of Claims under FIDIC and NEC3
Pinsent Mason's latest Contractors' Legal Guidance Note discusses how the notification of claims- or mis-notification- occurs, and the rights and remedies governed by notice clauses. The article covers the relevant clauses in the FIDIC and NEC contracts. (FIDIC clause 20.1 and NEC clauses 16.1 and 63.5)
The full text of the article can be downloaded from: http://www.pinsentmasons.com/PDF/CLGNAutumnEng.pdf
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21/11/2008
Subject: Treasury to Scrap Tax Relief on Brownfield Site Waste
Description: Remediation Firms Urge Rethink
Remediation companies, already struggling with the current downturn, are appealing to the government to rethink the planned abolition of tax relief on new brownfield development sites. Under the plans, from next month, companies will no longer be able to claim an exemption from tax on contaminated waste sent to landfill from new clean-up projects. Current projects will be able to continue to claim exemption, but only until 2012. The Environmental Industries Commission (EIC) said that because some materials will still be unsuitable or too expensive to treat onsite, developers will be unwilling to pay the tax.
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21/11/2008
Subject: Top QS Firm Cuts Jobs
Description: Some Staff Moved to the Middle East
Davis Langdon has announced that it has axed 90 staff since September due to current market conditions. In addition, 40 people have been moved out to the Middle East. Gleeds says that it is also reviewing its offices and staffing levels and redundancies are expected.
There have also been redundancies in architectural and engineering companies, contractors and suppliers as schemes are mothballed and the competition for work becomes fiercer.
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19/11/2008
Subject: Housing Corporation Publishes “Achieving Building for Life” Guidance
Description: Standards for Well Designed Developments
In 2007, the Housing Corporation adopted the Building for Life criteria as part of its Design and Quality Standards. The new Guide aims to assist affordable housing providers to understand the terminology, concepts and processes that are involved in meeting the standards’ criteria. The document contains the national standards for producing well designed developments.< br> The toolkit can be downloaded from http://www.housingcorp.gov.uk/upload/pdf/G01_20503_Building_For_Life_Toolkit.pdf
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18/11/2008
Subject: Court Refuses to Enforce Adjudicator's Award
Description: Triable Issue as to Whether Contract was in Writing
Allen Wilson Joinery applied for summary judgement to enforce an adjudication award made in its favour for the sum of £12,449.70. The issue between the parties was whether their agreement was an "agreement in writing" for the purposes of s.107 of the Housing, Grants, Construction and Regeneration Act 1996. Allen Wilson had submitted a quotation detailing the work and including a price. The quotation ended:
"The final costs will be finalised when full details have been agreed and site surveys have been carried out."
The defendant main contractor resisted enforcement, arguing that there had been no contract in writing, and that Allen Wilson's work and design had been defective and late. In addition, the work had been subcontracted and a term was to be implied from their prior course of dealing that this was prohibited.
The claimant's budget quotation had been accepted by the defendant. It was a matter of interpretation as to whether this was the accepted price or a "ballpark" figure to be finalised once the final details had been agreed and the site surveys carried out. Even if the final price was still to be agreed, the parties had recorded in writing their agreement that it was to be finalised, and had, in a binding way, agreed to proceed on that basis. If a price were agreed later, then that price would be the one due. If the price were not agreed later, the implication would be that the claimant would be entitled to a reasonable price for the work and materials.
The Technology and Construction Court refused to enforce the award, arguing that there was a triable issue. The court did, however, state that the adjudicator had had no power to award interest, and, whatever the final outcome, this part of his decision would not be enforced.
Associated Link :
12/11/2008
Subject: New Generation of Primary Schools Gets Go Ahead
Description: Funding Approved from 2009
Ministers have given the green light to Primary Capital Programme funding for primary schools from April 2009 . This is the first step toward rebuilding or refurbishing half of all primaries within 15 years with over 1500 primary school building projects to get funding. The Scheme for Construction Contracts (England and Wales) Regulations 1998 is worth £3.55bn.
Ed Balls confirmed that more than 1500 planned rebuilding and refurbishment projects in England could now start after ministers gave the go-ahead to 133 local authorities’ primary capital strategies. Another 15 local authorities will get tailored, expert advice to get their plans up to speed within three months to enable funding to be released It means that the Government will release £1.75billion of funding to local authorities for the Primary Capital Programme with local authorities investing a further £1.8billion. That’s on top of the £150m already being invested in 23 pilot local authorities in 2008-09. The Primary Capital Programme, which is investing at least £7billion to rebuild or refurbish half of all primary and primary-age special schools by 2022-23, will now start in earnest.
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12/11/2008
Subject: Employer Wrongfully Repudiated Contract
Description: Contract Delays not Caused by Contractor
Orchard Construction was engaged to undertake the refurbishment of a large house and the construction of an associated swimming pool. The project was subject to delays and cost increases, mainly due to the timely supply of information from the employer’s architect and project manager and the number of changes made to the project by the employer. Frustrated by the delays which he blamed on the contractor, the employer withheld payments. This affected the contractor’s cash flow and threatened the supply of materials and labour. The relationship between the parties broke down and the employer ordered the contractor to leave the site, refusing to allow the company to take its plant and equipment. The contractor took this as repudiation of the contract, which it accepted. The claimant contractor sued for the balance of the contract sum, plus amounts for loss of profit, alleging that the defendant had agreed to pay for the contract works based on the detailed statements of accounts. The defendant contested this, arguing that the contract had been a cost plus contract. No written contract had been concluded between the parties.
The Technology and Construction Court concluded that the employer had wrongfully repudiated the contract, and that the claimant was entitled to payment of a reasonable sum, plus sums for loss of profit as the contractor had been prevented from completing the works. The contractor had not been responsible for the delays to the works. Even if there were defects in the works, the claimant had agreed to remedy them at its own expense and the employer should have allowed the contractor to do so. The employer’s counterclaim for defective work was dismissed.
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11/11/2008
Subject: ASC Poll Reveals Regeneration Professionals Optimistic
Description: Economic Downturn Prompts Diversification
A poll from the Academy of Sustainable Communities (ASC) shows that three quarters of regeneration organisations in the public and private sectors are adopting diversification strategies to overcome the current economic downturn. A third have moved into new sectors, and 9 out of 10 organisations are reporting that they are not cutting back on investment in skills and training.
Two thirds of respondents felt that the recession is not yet affecting them.
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11/11/2008
Subject: Communities and Local Government Releases Latest House Price Index
Description: House Prices 5.1% Lower than September 2007
The latest statistics release includes data based on mortgage completions during the month of September 2008.
The main points of the release are:
UK house prices were 5.1 per cent lower than in September 2007
The mix-adjusted average house price in the UK stood at £208,583 in September 2008 (not seasonally adjusted)
UK house prices fell by 3.0 per cent in the quarter ending September 2008. This compares with a fall of 1.0 per cent for the quarter ending June 2008
Annual average house prices fell in England (-5.1 per cent), Wales (-5.2 per cent), Scotland (-0.8 per cent) and Northern Ireland (-15.8 per cent)
Annual average house prices paid by first time buyers in September 2008 were 7.8 per cent lower than a year ago. By comparison average house prices paid by former owner occupiers were 4.0 per cent lower.
The full release may be downloaded from: http://www.communities.gov.uk/publications/corporate/statistics/hpi092008
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10/11/2008
Subject: Government Pledges £100m to Councils to Unlock their Housing Market
Description: 2008-09 Housing and Planning Delivery Grant Will Give Additional Funding
Housing Minister, Margaret Beckett has announced that councils will receive over £100m to assist in maintaining the number of first time buyer and family houses which are desperately needed. For the first time, the Housing and Planning Delivery Grant will provide additional funding to help councils support the delivery of more homes in the current financial market.
In order to be eligible for the grant, councils must demonstrate that they are continuing to provide suitable land for development, that they are providing the local plans needed to deliver the homes, and are undertaking a strategic assessment of their housing market.
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6/11/2008
Subject: CIArb Publishes E-Disclosure Protocol
Description: Addresses Potential Time and Costs Issues
The Chartered Institute of Arbitrators has launched a "Protocol for E-Disclosure in Arbitration", which is intended for use in arbitrations where the time and costs of electronic disclosure may be an issue, and to act as a prompt to arbitrators, counsel and the parties to engage constructively with the practicalities of e-disclosure in such cases.
The Protocol can be downloaded from http://www.arbitrators.org/institute/CIArb_e-protocol_b.pdf
Associated Link :
6/11/2008
Subject: Al-Futtaim Carillion Boosts Forecast to AED 6bn After Mega Contracts Win
Description: On Track to Double Revenues in the Middle East and North Afrfica
Carillion, which operates through joint venture Al-Futtaim Carillion in the UAE, revealed today that it is on track to double revenues from its businesses in the GCC and North Africa to a run rate of more than AED 6 billion by the end of 2009. Earlier today the group began its two-day showcase of its UAE operations to a select gathering of leading international analysts and investors in Dubai. The presentation moves to Abu Dhabi tomorrow. The two-day briefing follows Wednesday's visit to the UAE by the Right Honourable Gordon Brown, the UK Prime Minister, and Lord Mandelson, the UK's Secretary of State for Business, Enterprise and Regulatory Reform. The UK Prime Minister and Business Secretary were accompanied by a number of senior UK businesses leaders, including Carillion Chief Executive, John McDonough. Following the visit it was announced that Al-Futtaim Carillion had been selected for contracts for AED 3.6 billion of major construction work in Dubai and Abu Dhabi. In Abu Dhabi, Al Futtaim Carillion signed a Heads of Terms agreement for an AED 3 billion long-term contract to build the Al Muneera phase of Aldar's AED 60 billion Al Raha Beach development. The contract is due for completion in April 2011 and will involve the provision of a 14-storey office building, eight 14-storey apartment buildings, 148 townhouses and 11 luxury villas facing the development's canal and waterfront. This is Al-Futtaim Carillion's second major project for Aldar in Abu Dhabi, having been awarded an AED 1.5 billion contract for the Race Track Hotel on Yas Island in June of this year. In Dubai, Al-Futtaim Carillion has been selected by the German Business Park FZCO to deliver its German Business Park project, which is expected to be worth more than AED 600 million and completed in less than two years. Lord Mandelson said: "The UK and the Gulf have a long-established business relationship. In the current climate it is even more important than ever that we seize every opportunity for long-term economic growth. Al-Futtaim Carillion is already a leading contractor in the Gulf. These two agreements representing £600 million [AED 3.6 billion] of business will make an important contribution to the economies of both the UK and the UAE." Mr. McDonough added: "Over the past 35 years, Al-Futtaim Carillion has established a strong reputation for delivering high quality projects for Government and blue-chip customers. Our selection for these prestigious projects further enhances that reputation." "We look forward to working closely with Aldar and the German Business Park FZCO to deliver these projects and to developing strong, long-term relationships to support delivery of their future investment plans, including the substantial development programme that Aldar has in Abu Dhabi over the next 10 years." "Our order book and pipeline of probable new orders in the Middle East remains strong and we are firmly on track to achieve our previously announced objective of broadly doubling the sales revenue of our joint venture businesses in the region to an annual run rate of over AED 6 billion by the end of 2009, of which Carillion's share will be over AED 3.6 billion."
During Thursday's meeting with analysts and investors Carillion confirmed that it remains firmly on track to broadly double the revenue of its businesses in the Middle East and North Africa. Carillion stated the Group expects to make strong progress in 2008 and deliver materially enhanced earnings in 2009.
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6/11/2008
Subject: ICE Publishes Demolition Protocol 2008
Description: Guidance on Waste Management
The Institution of Civil Engineers first published its demolition protocol in 2003. This 2008 Protocol does not supersede the 2003 version, which remains relevant for the detailed approaches it provides to demolition. The 2008 Protocol puts greater emphasis on waste management and environmental concerns.
The 2008 Protocol gives practical guidance to those involved in demolition works. This includes a checklist for ensuring compliance with the 2008 Protocol. Helpfully, the checklist also sets out the steps for preparing a site waste management plan.
Copies can be downloaded from http://www.ice.org.uk/downloads//Demolition%20Protocol%202008.pdf
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5/11/2008
Subject: Court Rules that Sectional Completion Liquidated Damages are Not a Penalty
Description: Delayed Completion Section 1 Delayed Later Phases
Dean & Dyball’s contract for the construction of retail units was delayed by eight weeks in the first phase, which also delayed phases 2 to 5. It was granted only a four week extension by the architect, and liquidated and ascertained damages of £48,000 were deducted. Dean & Dyball argued, inter alia, that the sectional completion provisions in the contract were void for uncertainty, and that the imposition of liquidated and ascertained damages was a penalty because it was being repeatedly penalised for the same delay by the deduction of the liquidated damages in respect of each section and/or because the delay on section 1 was then the subject of liquidated damages in respect of the remaining sections.
This was rejected by the judge who concluded that the nature of the contract was that the works would be carried out sequentially, and both parties were aware that a delay on the first section would automatically lea to delays on the later sections. Therefore, t could not be regarded as being unfair.
The amount of the liquidated damages varied from one section to the other, depending upon the different work involved in that section, and the different losses which would flow if that section were delayed. This supported the view that liquidated and ascertained damages were not a penalty.
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3/11/2008
Subject: The Reluctant Litigant
Description: Dispute Resolution under PFI Contracts
Despite press coverage to the contrary, many Private Finance Initiative (PFI) projects come in on time and on budget, with 96% of clients expressing satisfaction. Disputes on PFI projects do happen, however, and project companies are unwilling to expend considerable sums on experts to assist them with disputes as it eats into their profits. Ian Yule reviews some of the ways in which project companies, reluctant litigants, deal with disputes, and the potential in using name borrowing.
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3/11/2008
Subject: Wobbly Contractor Syndrome
Description: What Are the Implications of Employers Paying Subcontractors Directly?
Rupert Choat discusses the ramifications where a developer wants to pay subcontractors directly because the main contractor is insolvent.
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3/11/2008
Subject: SEC Warns of Payment Loophole
Description: Main Contractors Exploit Fair Payment Charter, it is Claimed
The Specialist Engineering Contractors Group is accusing main contractors of exploiting a loophole in the Office of Government Commerce’s Fair Payment Charter in order to delay making payments to subcontractors. The Charter requires contractors on public sector contracts to pay within 30 days, but the SEC says that main contractors are delaying subcontractors’ applica
Associated Link :
3/11/2008
Subject: Fears Grow Over Dubai Market As Projects Hit Delays
Description: Financial Problems Start to Affect the Middle Eastern Market
It is being reported that a number of Dubai Properties’ projects have been hit by delays. The global financial downturn has been definitely cited as the cause in one instance, the Cultural Village. The news is being taken as an indication that the Middle Eastern market may be beginning to slow.
Emaar also announced yesterday that it will re-study its projects in light of world economic crisis. The company said that it will reduce its dependence on banks for financing. Emaar is undertaking a number of major projects with Saudi firms in King Abdullah Economic City, with investments of more than SR100bn which includes a major port, hotels, and resorts.
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3/11/2008
Subject: There Once Was an Ugly Duckling
Description: Serial Adjudication
Tony Bingham reviews the decision in Birmingham City Council v Paddison Construction Ltd.,[2008] EWHC 2254 (TCC), in which the first adjudicator on the dispute “granted” the contractor leave to pursue its loss and expense claim in a second adjudication.
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3/11/2008
Subject: Adjudication: Finding Deeper Pockets In Tough Times
Description: Adjudication and Third Party Debt Orders
Julian Bailey comments on the decision in Kier Regional Ltd. (t/a Wallis) v City and General Holborn Ltd., Cambridge Gate Properties Ltd. and Temple Guiting Manor Ltd. (No. 2), [2008] EWHC 2454 (TCC), considers the use of third party debt orders to ensure the payment of adjudication awards.
The full article can be read at:
http://www.law-now.com/law-now/2008/231008adjudicationfindingdeeper.htm
Associated Link :
31/10/2008
Subject: Baqus Sees Silver Lining in Credit Crunch
Description: Two Acquisitions a Year Planned
Baqus, the AIM listed quantity surveyor, says that the current financial downturn will assist its acquisition plans as smaller consultancy practices will be forced to consider takeover offers. The company is sitting on £2.5m earmarked for takeovers. The company was formed by the combination of three practice and floated on the AIM last December.
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30/10/2008
Subject: UK’s Small Claims Mediation Service Wins European Award
Description: Service Winner of Crystal Scales of Justice award
The Small Claims Mediation Service, run by Her Majesty’s Courts Service (HMCS) has beaten 37 other applications from 15 European countries put forward to the secretariats of the European Commission for the Efficiency of Justice CEPEJ (Council of Europe). The mediation service has been in operation for just over a year and covers all HMCS Areas in England and Wales, and has conducted nearly 7,000 mediations, with a settlement rate of 68%.
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28/10/2008
Subject: Contract Notices this Week
Description: Official Journal Adverts for Surveyors Services
The Genesis Housing Group is advertising a Consultants’ Framework Agreement for the following services: Building Surveying, Building Services Engineers, Structural Engineers, and CDM services, Employers Agents, Asbestos Surveys, Fire Assessment Surveys, Stock Conditions Surveys, Party Wall Surveyors, Cyclical Decoration Surveyors, Planning Consultants, Project Managers, Cost Consultants, Mechanical & Engineering Services, Valuers.
The University of Leeds has also posted an advert for quantity surveying services for a new building to house innovation related spin out companies in an incubator arrangement and University knowledge transfer accommodation.
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27/10/2008
Subject: Tender Price Forecasts Slashed
Description: Some Sectors Already in Negative Growth
Gardiner and Theobald is predicting that tender prices will increase by just 3% this year, a fall of 2% from a forecast made earlier this year. The forecasts for 2009 and 2010 have also been cut by 1.5% and for 2011 by 1%. The company says that some sectors, such as commercial and private residential are probably already in negative growth, and all trades are having to face a cut in their daily rates.
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27/10/2008
Subject: Downturn Fuels Lawyers Workload
Description: Construction Lawyers Report Upsurge in Claims
Construction lawyers are reporting a dramatic increase in the number of disputes referred to them since the beginning of the current financial climate. One top lawyer says that its workload has increased 50% in the last five months, compared with the same period in 2007.
It is predicted that disputes will increase even further in 2009 as developers and contractors break contracts and dispute payments.
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24/10/2008
Subject: QSs Face Up to Current Slowdown
Description: Fees Falling as QSs Fight for Work
A report in today’s “Building” magazine (24 October 2008), reports on how Quantity surveying firms of different sizes are trying to cope with falling workloads. Redundancies have already been announced in some of the larger firms, but some practices see the present financial situation as an opportunity to make acquisitions.
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22/10/2008
Subject: Nearly 50% of All Local Authority Buildings In Poor Condition
Description: DTZ Research Reveals State of Property Portfolio
A survey of local authority property across the UK has shown that ageing buildings are affecting costs and productivity. More than 40% of those surveyed said that they considered their stock to be in either poor or very poor condition with 90% of respondents' holding portfolios where the majority of stock is over 20 years old.
Councils are rationalising and upgrading their property portfolios primarily to improve operational effectiveness and to reduce costs. Regeneration considerations have been low priority when implementing changes; operational efficiency, reducing costs and the condition of the buildings have been more important drivers.
Two-thirds of local authorities have already sold off offices in a bid to save money.
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22/10/2008
Subject: New Academy Attracts Student QSs
Description: C. Spencer Wins £35m in Transport Contracts
Multidisciplinary construction company, C. Spencer, has added contracts worth £35m to its order books. The contracts include an £11.5-million train depot in the Midlands, a £6.2-million bus depot in Battersea, London, more than £7.5-million of various bridge works projects, a new £2.4-million port terminal in Southampton and a £2.7-million contract for four station car parks in Cambridgeshire. Spencer will be responsible for the delivery of the projects from feasibility to completion, including the design and all associated M&E (mechanical and electrical works).
The company has also established a number of training academies to develop the next generation of professionals it will need for its expansion plans. The recruits will be able to complete their academic studies whilst learning on-the-job. The academy has already taken on five student quantity surveyors.
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21/10/2008
Subject: Advertising on the QSi Website
Description: Advertising on the QSi Website
Advertising on the QSi Website
Since the web counter was installed, the QSi Website has clocked up over 85,000 visitors.
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21/10/2008
Subject: Fundraiser latest
Description: Fundraiser latest
QSi Fundraiser latest
Associated Link : http://www.theqsi.co.uk/doc/qsi%20fundraiser%20latest.doc
17/10/2008
Subject: Sureyors Sued over Regent Street Disease
Description: Sir Alan Sugar's Firm Sues for Negligence
Amsprop City Properties is pursing an action in negligence against surveyors Wilks, Head and Eve, whom it engaged to undertake a full structural survey of a property prior to purchase in 2005. The building, which Amsprop bought for £9.5m was later found to be suffering from Regent Street Disease i.e. moisture penetration of the Portland Stone which leads to corrosion of the underlying structural steelwork.
Amsprop, which is run by Sir Alan Sugar’s son, is claiming that WHE should have anticipated the problem, and that it would have been able to negotiate a reduction of £300,000 in the sale price had it known. It is also suing for the £600,000 spent on remedial works.
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17/10/2008
Subject: Top QSs Slash Jobs to Save Money
Description: Credit Crunch Causes Drop in Fees
Some of the UK’s leading firms of quantity surveyors are preparing to make staff redundant because of the fall in private sector work which is eating into their fee income. Gardiner & Theobald, Faithful & Gould and DBK are some of the firms identified as those cutting jobs. It is also believed that E.C. Harris and Davis Langdon are also looking to get rid of staff.
The current downturn is leading to cuts in fee income as clients seek discounts. Quantity Surveyors are having to cut fee rates in an effort to win what work there is.
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16/10/2008
Subject: Persimmon Entitled to Costs for Failure to Undertake Works
Description: Company had not Waived Rights by Doing the Work Itself
RMC, agreed to sell Persimmon a development site in Hampshire. The Sale Agreement, obliged RMC to undertake certain remediation works on the site. It was common ground, however, that RMC did not undertake the works. Instead, Persimmon performed the works themselves, and sought to recover the costs of the work, plus damages for breach of contract. RMC maintained that, since Persimmon had not asked it to do the works, it was not in breach of contract, and Persimmon had waived any entitlement to more than nominal damages
This was rejected by the court, which found that the correct measure of damages was the notional cost to RMC of carrying out the work. These costs were to be assessed based on the dynamic compaction method, which Persimmon had used.
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14/10/2008
Subject: Britain Falling Short of Renewable Energy Targets- Report
Description: Carbon Trust Wants More Offshore Wind Turbines
The Carbon Trust says that only a quarter of the wind power capacity Britain needs to meet its target of getting 15 percent of energy from renewable sources by 2020 will be built unless controls on offshore turbines are relaxed to cut costs. The report "Offshore wind: big challenge, big opportunity" also calls on the government to remove planning obstacles and resolve grid connection problems that are stunting growth. Allowing wind farms in shallower coastal waters could cut Britain's renewable energy bill by £16 billion pounds and its carbon emissions by 14%, the Carbon Trust report said. Current constraints could force Britain's next round of offshore wind farms to be built 70 miles (112.7 km) from the shore, resulting in less than a quarter of the 29 gigawatts of turbines Britain needs to be installed by 2020, the Trust says.
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13/10/2008
Subject: Utility Warehouse / QSi Fundraiser Scheme
Description: Utility Warehouse / QSi Fundraiser Scheme
Read about the new Utility Warehouse / QSi Fundraiser scheme
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10/10/2008
Subject: Rochdale and Stoke Advertise for QS Services
Description: Multi-Million Pound Contracts Advertised
Rochdale MBC has published an OJEU Notice seeking quantity surveyors and other construction professionals for a development of municipal offices. In a separate notice, Staffordshire University is advertising for QS services for three major capital schemes: a Science Centre Building, a Sports Education Building and a Media Centre. Each project has a total estimated value of between £10m and £30m.
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10/10/2008
Subject: Northern Irish Housing Slump Puts Surveyors on the Dole
Description: CEF Reports Alarming Rise in Unemployed Construction Professionals
Statistics obtained by the Construction Employers Federation (CEF)in Northern Ireland show that the slump in the construction industry in Ireland has led to increases of more than 200% in the number of plasterers, carpenters and plumbers who have signed on in the past 12 months. The figures from the Office of National Statistics, show a similarly alarming rise in the number of quantity surveyors and construction managers who are now on the dole.
In the 12 months since August 2007, the total number of people in the north formerly employed in the construction sector who are now claiming benefits has risen from 4,000 to 6,060 - an increase of more than 50%. The CEF believes that the situation is likely to worsen over the next 6-12 months, and that the figures do not give the complete picture as many have left the country in search of work. The CEF believes that large numbers have gone to Scotland and further afield to Dubai.
The CEF wants Stormont to bring forward major infrastructure projects in an attempt to improve the situation.
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9/10/2008
Subject: Government Grants Planning Permission for Stansted Expansion
Description: District Council's Refusal Overturned
The government has overturned Uttlesford District Council’s refusal to grant planning permission to expand Stansted Airport. BAA and the Airport appealed against the decision. The airport will now be able to increase the number of flights to and from the airport in a year from 241,000 to 264,000, and the number passengers using the airport will rise from 25 million to 35 million a year.
The Aviation Minister, Mr. Jim Fitzpatrick said that there was a need for additional runway capacity in the South East, and that air travel made a necessary contribution to the UK economy.
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8/10/2008
Subject: SEC Urges Use of Project Bank Accounts North of the Border
Description: Government Savings Forecast at Over £500m a Year
The Specialist Engineering Contractors Group (SEC) is lobbying the Scottish Parliament to use project bank accounts from 2010. A conference is to be held in January 2009. The SEC believes that project bank accounts are particularly relevant to the Scottish Government because of its policy of promoting SMEs.
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6/10/2008
Subject: Siemens To Connect Thanet Offshore Wind Farm To British Power Grid
Description: Consortium Wins £87m Order
Siemens Energy and consortium partner Prysmian Cables & Systems have been awarded an order worth approximately £87 million by Thanet Offshore Wind to connect the Thanet offshore wind farm to the British power grid.
Generating enough electricity to power over 167,000 homes, the wind farm with an installed capacity of 300MW will be constructed in the North Sea, 11km off the coast of Kent. The wind farm will have its connection to the grid ready for operation in the summer of 2009. As part of the grid connection for the Thanet offshore wind farm, Siemens is constructing an offshore substation platform. A 33/132kV substation with two 180-MVA power transformers will be installed on this platform.
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6/10/2008
Subject: RICS Warns that Government Unlikely to Meet House Building Target
Description: Fewer than 100,000 Homes Expected to be Built in 2008
The Government's house building target looks unattainable with fewer than 100,000 new homes expected to be built this year, the RICS has warned. Construction workloads were declining at their fastest pace since its survey was first launched 14 years ago. Consequently, the Government's target of having two million new homes built by 2012 looked unlikely to be achieved. It said more than 200,000 new homes needed to be built each year in order to meet the target, but only 66,220 new homes had been built so far this year.
Overall, construction workloads have fallen to a record low, with 38% more chartered surveyors reporting a fall than those who saw a rise. 41% more chartered surveyors expect workloads to fall further during the coming 12 months as the credit crunch continues to bite.
House building has been hit even harder, with 60% more surveyors reporting a fall during the third quarter of the year, following significant declines in each of the previous two quarters. As it becomes increasingly difficult to obtain finance, house building targets look increasingly unlikely to be achieved.
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2/10/2008
Subject: New Planning Rules On Home Extensions Come into Effec
Description: In Many Cases Planning Permission will not be Required
New planning rules, coming into effect on October 1, 2008, will allow the majority of people to extend their home without waiting for planning permission to start building. The rules set size limits on permitted extensions to ensure the right balance is struck between helping homeowners to better their home and protecting neighbours against larger inappropriate or intrusive extensions. They also introduce changes meaning that anyone who wants to put in a new driveway or parking area over five square metres will not require planning permission if they use surfaces that allow the water to soak through the ground. An online interactive house guide will assist people who want to improve their home ensuring no one falls foul of the new rules. By clicking on the relevant part of the house on the online guide, homeowners will be given a pop-up explanation of the new planning rules.
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1/10/2008
Subject: Multiplex Awarded Nominal Damages for Wembley Repudiation
Description: Judge Comments on Failure to Seek Early Resolution of Dispute
This was the final hearing in the long-running dispute between the parties about Wembley Stadium. Judge Jackson went through each item of claim in a 226-page judgement. In his conclusion, he remarked on that, once costs were taken into account, neither party had gained financially to any significant extent. Large amounts had been spent and a lot of management time had been involved by both sides to no useful purpose. Both parties had thrown away opportunities to settle the litigation favourably, and a lesson for the future would be that parties should used the dispute resolution services offered by the Technology and Construction Court.
Multiplex had made both gains and losses because of Cleveland Bridge’s repudiation of the contract, as amended by the Supplemental Agreement, and the gains exceeded the losses. Hence, Multiplex had failed to prove an overall loss flowing from Cleveland Bridge’s repudiation, and, as a consequence, Multiplex was nominal damages of £2 for repudiation.
In reaching this conclusion, the judge took into account:
The attenuated nature of Cleveland Bridge’s obligations at the date of repudiation;
Less than a week before the repudiation, Multiplex had changed erectors, a decision which was bound to cause disruption and delay;
Multiplex’s success on some valuation issues, which impacted negatively on the award of damages.
Multiplex was also awarded nominal damages of £2 for Cleveland Bridge’s repudiation of the purchase order.
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29/9/2008
Subject: Which? - Gives the thumbs up
Description: Which? Gives the thumbs up
Which? Magasine says Utility Warehouse are the best.
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Associated Link : http://www.theqsi.co.uk/doc/qsi%20fundraiser2.doc
29/9/2008
Subject: Second Adjudicator Lacked Jurisdiction to Hear Dispute
Description: Second Dispute Materially the Same as that Referred to First Adjudicator
Birmingham City Council (BCC) entered into a contract with the defendant contractor for the construction of a training and community centre. The defendant alleged that BCC was responsible for delays to the project, and claimed for extensions of time and loss and expense of more than the £40,541.59 which BCC had already certified.
In February 2008, the contractor referred the dispute to adjudication. The adjudicator, Mr. Bullock, decided that the contractor was entitled to an extension of time, liquidated and ascertained damages and sums in respect of variations. Mr. Bullock granted no further sums for loss and expense, as he considered the contractor’s claims to be extravagant. However, he did give the contractor leave to pursue the claim in another adjudication, and recommended that, if the contractor took this route, a third party quantity surveyor be appointed to assist the adjudicator.
The contractor claimed different sums in the two adjudications: the first claimed had been calculated using a formula calculation, and in the second the calculation was based on invoices. There was no difference in the supporting material, only its interpretation. The fact that the two sums claimed were different did not make BCC’s refusal to consider the second claim a dispute capable of being referred to a second adjudication. The addition of a claim for damages for breach of contract did not render the dispute in the second adjudication materially different from that in the first. This was a case where the contractor was attempting to make good in the second adjudication the shortcomings in their claim in the first adjudication.
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26/9/2008
Subject: UK Downturn Tempts QSs to the Middle East
Description: Booming UAE Market for Professionals
"Building" magazine is reporting an "exodus" of quantity surveyors to the Middle East, prompted by the current financial climate in the UK. Firms such as Faithful & Gould and WSP are transferring staff to the region, and are finding it easier to get staff to go. Engineers and house building experts are also being tempted to the booming property market.
The construction market in the UAE is increasing by 37% a year, and is worth £786bn, with £50bn-worth of projects planned in the next five years.
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25/9/2008
Subject: Technology and Construction Court Grants Leave to Appeal in Subsidence Case
Description: Arbitrator Misdirected Himself on Meaning of “Damage”
The Technology and Construction Court has allowed an appeal against an arbitrator’s award in a claim for compensation brought under the Subsidence Act 1991 and the Coal Mining Subsidence (Arbitration Schemes) Regulations 1994. The arbitrator had allowed the claim even though he had found that there had been no new physical damage in the last six years He concluded that there had been damage in the form of a loss in value during that period, and that this flowed directly from the physical damage to the properties which had been caused by the subsidence. The Technology and Construction Court rejected this, finding that the arbitrator had misdirected himself by confusing physical subsidence damage, as defined in s.1(1) of the Act, and the suffering of damages, which can, in certain circumstances, include economic loss and blight. Damages for blight are not recoverable under the Act where there has been no subsidence damage as defined in section 1(1).
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22/9/2008
Subject: QSs Added to Australia’s Shortage List
Description: Migration Advisory Committee Advises that Skills Shortage Could be Filled by Migrants
Quantity surveyors have been named on the Migration Advisory Committee's first recommended shortage occupation lists to the UK Government. It reduces the number of skilled jobs in Britain open to non-EU migrants from one million to 700,000 and it is thought the changes will cut the level of skilled migration to Britain from outside Europe by between 30,000 and 70,000 people a year.
RICS Wales has welcomed the move. A spokeswoman said: "It is essential that the Government has a sufficient number of project managers in place to deliver its housing and infrastructure priorities. Failure to adequately address this skills gap could ultimately mean that the Government is unable to meet its housing target of three million new homes by 2020. The inclusion of quantity surveyors on the list will mean that potential employers will now have access to suitably qualified staff with the requisite work experience.”
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22/9/2008
Subject: Portsmouth Advertises QS Contract
Description: Framework Contracts Advertised
Portsmouth City Council has published a tender in the Official Journal for QS services to support its Housing Development’s Capital Programme, which has a planned budget spend of £20m for the construction of 829 houses. The social housing is to be compliant with the minimum standard of Code 3 of the Code for Sustainable Homes and the principles of ‘Homes for the Future’. In addition, there will also be some mixed commercial properties.
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22/9/2008
Subject: New Paper on Delay Analysis
Description: Quantity Surveyors Play Vital Role
"Delayed completion of a construction project is often caused by a complex interaction of a combination of events, some of which are the contractor's risks and others are the project owner's. The apportionment of the liability to give effect to the risk allocation has therefore been a matter of great controversy," according to a report by researchers at the University of Wolverhampton report.
The report has concluded that:
The preparation of delay claims often requires input from commercial managers (e.g. quantity surveyors), schedulers, site managers, external claim consultants and estimators;
Commercial managers have the greatest involvement;
Claims analysed using the as-built versus as-planned and the impacted as-planned techniques are often successful although there is considerable literature on the shortcomings of these techniques;
The main obstacles to the use of the methods relates to deficiencies in project records and scheduling practice."
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20/9/2008
Subject: Which Report on Utility Warehouse
Description: Which Report on Utility Warehouse
Latest Which? Magasine indicates that Utility Warehouse give a good service and value for money - why not join the QSi / Utility Warehouse fundraiser scheme?
Associated Link : http://www.theqsi.co.uk/doc/qsi%20fundraiser2.doc
16/9/2008
Subject: Scottish Government Publishes Draft 2009-2010 Budget
Description: Focus on Infrastructure
The Scottish Government has announced its planned infrastructure spending in its draft 2009-2010 Budget. This includes:
Investing £673m in rail infrastructure through Network Rail and rail services through the rail franchise, including investing in expansion and improvements to services through our major projects programme;
Delivering a motorway and trunk road network that supports the economy and the people of Scotland by enabling safe and reliable journeys (£443m, excluding capital charges and the replacement Forth crossing);
Unvesting £25m (of £75m over the Spending Review period) in the design and development of a replacement Forth crossing;
Providing resources of £106m to deliver high quality ferry services ;
Continuing to support lower bus fares across Scotland through the Bus Services Operators Grant (£61m);
Investing £187m in providing free travel to over one million people on the bus network, improving quality of life through greater access to vital health and community services, employment and education and leisure facilities and aiding equality of opportunity for older, disabled and young people;
Maintaining the record level of investment by Scottish Water to improve water quality and ensure connections to the public networks necessary for new developments throughout Scotland; and
Completing the e-enablement of Scotland's planning system with benefits for all users of the system - and put in place a programme to support planning modernisation.
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16/9/2008
Subject: Experts Call on Vietnam to Support PPP Model
Description: PPP Seen as Solution to Infrastructure Problems
International experts have called on Vietnam to develop a complete legal system to support public-private partnership (PPP) schemes as a major solution to financial problems in major infrastructure, cultural and social projects.
The call was made at an international workshop on the Public-Private Programme (PPP) held in Hanoi on September 12 under the co-sponsorship of the Ministry of Planning and Investment (MPI) and the US Agency for International Development (USAID).
Experts say that Vietnam has so far largely used State budgets and foreign official assistance (ODA) to invest in major development projects, especially in infrastructure which usually absorb huge investments.However, the State funding is limited, while the ODA use would pose increasing debts for the Government, driving Vietnam into a dilemma.
The Ministry of Planning and Investment says it has promulgated a number of regulations on the public-private relationship, but they were lacking in both coverage range and consistency, resulting in delay and difficulties in implementing PPP projects in the form of BOT (Build-Operate-Transfer), BOT (Build-Transfer-Operate) and BT (Build-Transfer).
The Deputy Minister of Planning and Investment Truong Van Doan said the MPI was researching international laws and practice and consulting foreign experts with the aim of developing a legal framework for PPP that worked best for Vietnam.
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16/9/2008
Subject: France’s Three Largest Construction Companies Vie for High Speed Rail Project
Description: 50-Year Concession at Stake
Bouygues, Vinci and Eiffage, France's three largest construction groups, are battling it out for the concession to build the Sud Europe Atlantique high-speed rail link between Tours and Bordeaux.
RFF, the state-owned rail infrastructure group, is offering the 50-year concession as part of a public-private partnership (PPP) deal. Work on the line is scheduled to start in 2010, and the link is expected to begin operating in 2016. The project will cost 7bn euros in total. The three groups will submit their tenders today, and the result of the competition is not expected to be announced until the autumn of next year.
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16/9/2008
Subject: Manchester Airport Discusses Expansion
Description: Aims to Create Freight Logistics Park
Manchester Airport Group is negotiating with neighbouring landowners and Manchester City Council over plans to build a new 1.5 million sq ft super freight terminal close to the airport.
A detailed planning application to increase the size of its existing World Freight Terminal off the M56 by 50 per cent has already been submitted. This will created an extra 250,000 sq ft to manage freight, but it is believed that that discussions are under way to create a much larger facility to meet increased demand for air freight.
The new facility would be called the Manchester Airport Logistics Park, and whilst it would focus on air freight it will also accommodate other types of cargo firms and could be built within three to five years.
The management at the Airport believe air freight will play a bigger role in the way goods, particularly high value goods, are transported in the future with more manufacturing going abroad.
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10/9/2008
Subject: English Heritage Seeks Planning Permission for Dover Castle Admission Building
Description: The New Building Will Replace Current Temporary Building
English Heritage are hoping to be given permission to construct the new building on the same site as the present one, which is at the west end of the middle car park, just north of the Officers' New Barracks. If the planning application is successful, the new building will be almost twice the size of the existing temporary one and will incorporate a larger area for receiving visitors, a counter to handle ticket and guidebook sales and an office and rest room for staff. It will also have new toilets for both visitors and staff. English Heritage says that the building is needed to take care of the 300,000 visitors who come to the Castle each year.
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10/9/2008
Subject: RICS Amends Red Book “To Protect New Build Market”
Description: Developers will Have to Disclose Correct Value of New Build
The Royal Institution of Chartered Surveyors (RICS) has made changes to the 'Red Book’', comprises the rules used by chartered surveyors when making asset valuations - will mean surveyors are required to ask the seller, developer, builder or selling agents for a copy of any 'disclosure of incentives' for the property.
The RICS says that some developers have deliberately concealed incentives such as repaying buyers’ deposits or reimbursing legal or moving fees. The new measures will include 12 questions, one of which will be whether a third party has any financial interest.
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10/9/2008
Subject: Teeside CHP Power Station Approved
Description: Decision Shows Government Commitment to CHP
The Energy Minister Malcolm Wicks has given the go-ahead to Thor Cogeneration Ltd to build a 1,020MW gas-fired combined heat and power station at Seal sands, Teeside. Combined heat and power plants are designed to produce both electricity and usable heat. They have environmental benefits due to their very high levels of efficiency. Local industry will be able to harness and use the heat produced from electricity generation at this power station.
The decision demonstrates the Government's continuing commitment to promote CHP, wherever practicable, and commitment to reducing emissions of greenhouse gases
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10/9/2008
Subject: New Valuation Procedure Issued by Council of Mortgage Lenders
Description: Standard Instructions to Conveyancers Amended
The Council of Mortgage Lenders (CML) has introduced new measures to help ensure that conveyancing and valuation processes capture the true value of newly-built properties.
B uilders or developers of any newly-built, converted or renovated property will be asked to complete a new 'disclosure of incentives' form. The aim is to ensure that any discounts or other incentives offered by developers are disclosed to the lender. This will ensure that any mortgage is granted on an accurate valuation, and help prevent fraud.
Making sure that a mortgage offer is based on the true value of the property provides more effective protection for both lenders and borrowers. This will help reinforce lenders' confidence in the market for newly-built property, which has fallen due to recent experience of losses and frauds.
Previously, lenders have been concerned that valuation and conveyancing processes do not always capture discounts and incentives available from developers.
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10/9/2008
Subject: Liverpool Waterfront to Benefit from £1.9m NWDA Investment
Description: Programme of Infrastructure, Environmental and Public Realm Works Planned
The programme will deliver a wide range of projects including: The development of Canning Maritime Park as a visitor attraction in its own right, through a combination of landscaping improvements and new pedestrian bridges across the eastern end of the graving docks.
The programme includes:
The construction of mooring facilities at Salthouse Dock for boats entering the south docks via the new Leeds/Liverpool canal link.
A programme of enhancements at Albert Dock, including feature lighting, interactive kiosks, new seating and street furniture.
The completion of a pedestrian link across the Pier Head to tie in with the new ferry terminal and associated environmental improvements.
The schemes will be led by Liverpool, working with partners Gower Street Estates, the Albert Dock Company, National Museums Liverpool, British Waterways, ACC Liverpool, Kings Waterfront Estates, English Partnerships, Neptune Developments, Merseytravel, Liverpool Culture company and Liverpool City Council.
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5/9/2008
Subject: Joint Contracts Tribunal to Add Sustainability Provisions to Contracts
Description: Enforceability Issues of Come Concern
Following an industry-wide consultation, the Joint Contracts Tribunal is to draft new sustainability clauses to be incorporated in their contracts next Spring. The provisions and guidance will be available later this year. However, there are some concerns about the enforceability of such provisions. Whilst the move may be laudable, without sanctions to enforce them, they may be ignored. 70% of all contracts are let under the JCT forms.
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5/9/2008
Subject: NJUG Criticises Preparations for Street Works Permits
Description: Government’s Impact Assessment Process Condemned
An independent report, commissioned by the National Joint Utilities Group (NJUG), has backed the utility industry’s claims that the Government needs to re-think the introduction of new permits for utilities to carry out street works. The report by the Regulatory Policy Institute has identified major failings in the Government’s justification for the new street works permit scheme. This scheme is being introduced by some local authorities, particularly those in London and Kent. A survey of local authorities has supported the report’s findings.
The report has identified a number of major failings in the Government’s Impact Assessment Process, including failures to identify and measure the benefits of the existing regulatory regime, and justify the levels of costs and benefits attributable to permits.
The report challenges the whole basis for implementing permits, particularly given that new procedures, introduced only in April this year, have not had time to bed down or be properly assessed. The voluntary initiatives to co-ordinate works and reduce disruption being undertaken by utilities have not been taken into account.
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5/9/2008
Subject: Talent Shortage Hampers Malaysian Builders' Aim To Go Global
Description: Acute Shortage of White Collar Workers Hampers Global Aspirations
The Malaysian Chartered Institute of Building Malaysia immediate past president Datuk Michael Yam has said many Malaysian professionals such as engineers, architects, quantity surveyors, site managers and other white-collar talents migrate to other countries that pay better wages. "There are some high paying countries which offer tax-free wages to white-collar workers ... these are some of the challenges faced by local construction companies who want to go global," Yam told Business Times on the sidelines of the International Construction Conference 2008 in Kuala Lumpur yesterday.
Mr. Yam said talent shortage only happens when there is an economic recession and people migrate due to the attraction of high wages. And when the economy recovers, these people seldom return to their old profession, preferring instead to work as an economist or a banker.
According to the Construction Development Industry Board, as at June 2008, Malaysian companies completed 366 projects worth US$9.1 billion (RM30.1 billion) overseas. Ongoing projects, meanwhile, totalled 80, worth US$16.1 billion (RM54.3 billion).
South Africa is facing similar problems, which has been unable to fill 35,000 professional positions, which include positions for quantity surveyors, engineers and construction managers.
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5/9/2008
Subject: Association of Consulting Architects to Publish Own Conditions
Description: ACA Slams RIBA's New Suite as "Accident Waiting to Happen"
The Association of Consultant Architects (ACA) has criticised the Royal Institute of British Architects' 2007 family of conditions of engagement as “an accident waiting to happen”. The ACA says that the RIBA failed to consult properly, and the agreement is a "complete bungle". The ACA is to publish its own contract in September, based on SFA/99. The ACA website has published a list of clauses in the RIBA contract which it claims are causes for concern. Neither the ACA nor the Royal Society of Ulster Architects will endorse the conditions.
The new contract between client and architect “meets the need for a fair and balanced Standard Form of Agreement following the demise of SFA/99, says ACA’s President Brian Waters.
ACA SFA/08 follows its predecessor SFA/99, and:
Maintains the same balance of rights and responsibilities between architect and client as SFA/99 and ID/05;
All terms are fully insured by the standard professional indemnity insurance policies;
Contains a no set-off clause, which is vital for enforcing payment against unreasonable clients;
Provides a 8% over base rate charge for unpaid accounts;
Allows an architect to resign a commission;
Includes no provision for a client to require the removal of an architect’s member of staff from a project;
Includes an optional tear-out form of collateral warranty;
Special terms are provided for, as is the opportunity for attachments to provide for additional documents, such as a brief or survey to form part of the contract;
Incorporates the RIBA Plan of Work 2007.
The contract will be sold in packs of two, one copy for the client and one for the architect.
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30/8/2008
Subject: Working the Oracle
Description: Working the Oracle
£50.00 prize for best photo
Associated Link : http://www.theqsi.co.uk/doc/working%20the%20oracle.doc
30/8/2008
Subject: Major Legal Cases
Description: Major Legal Cases
Important Legal Cases.
Roger Knowles has now uploaded over 40 QS orientated landmark legal cases.
Why not log in and have a look
http://www.theqsi.co.uk (Home Page QS Legal Cases)
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30/8/2008
Subject: Student Corner
Description: Study Trader
If you have books that you want to trade
Go to Study Trader http://www.study-trader.com/
Associated Link : http://www.study-trader.com/
30/8/2008
Subject: Advertisng in the QS Eye
Description: Advertising in the QS Eye
Help your company grow
Advertised on the QSi website
Have a look at the site http://www.theqsi.co.uk
Three months advertising only costs £100.00 per quarter.
Note all advertisements should be submitted in a 160 x 160 pixel format.
Associated Link : http://www.theqsi.co.uk/doc/qsi%20advertising.doc
30/8/2008
Subject: QSi Cross Linking
Description: QSi Cross Linking
Cross –Linking with the QSi website
Although some members and indeed some non-members have agreed to cross link with the QSi website, we still need more Cross-linkers.
Have a look at the site http://www.theqsi.co.uk (Website links)
The reason for this is that good web linking increases Google hits for both parties.
Our website is http://www.theqsi.co.uk
Your web-link should provide us with the following information
Your company name
Web link
Details of speciality (egg QS Architect, Contractor, sub-contractor, supplier, computer supply company, HR Company etc)
Cross-link details should be sent to info@andrewrwilliams.co.uk
Finally, if you are a Quantity Surveyor or an allied building professional why don’t you join the QSi?
Associated Link : http://www.theqsi.co.uk/doc/cross%20linking.doc
25/8/2008
Subject: QSi Fundraiser
Description: QSi Fundraiser scheme
The QSi have joined with Utility Warehouse - HELP THE QSi AND SAVE MONEY
Associated Link : http://www.theqsi.co.uk/articles/qsi%20fundraiser.doc
21/8/2008
Subject: Adjudicator had the Discretion to Extend Time for the Service of a Response
Description: Adjudicator Unwittingly Acted in Breach of Natural Justice
In the recent decision in CJP Builders Ltd. v William Verry Ltd., an adjudicator refused to extend the time for the service of a response, finding that he did not have the jurisdiction to do so. The adjudicator had, consequently, refused to take into account the response in his decision.
This was overturned by the Technology and Construction Court which ruled that the subcontract incorporated the unamended provisions of clause 38A of the DOM/2 subcontract. This permitted the adjudicator to set his own procedure, and this included the discretion to extend the time for the response, should he wish to do so. The adjudicator had indicated to the parties that he would have extended the time, had he had the jurisdiction.
The adjudicator had unwittingly breached the rules of natural justice in failing to permit a party to have its arguments heard. His decision could not be enforced.
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17/8/2008
Subject: Materials Costs Increases Bust Construction Budgets
Description: Shortages of Workers and Materials Increase Costs by up to 50%
Building projects in Singapore are facing cost blowouts of 30 to 50 per cent above their original budget as higher construction costs bite hard.
The continuing shortage of construction workers and building materials has left project bosses with little choice but to pay upfront for the far higher costs or abandon the project.
Anecdotal evidence suggests that building budget blowouts are far bigger than official figures indicate.
One project that has been hit by higher building costs is the Khoo Teck Puat Hospital in Yishun.
The chief executive of Alexandra Hospital, Mr. Liak Teng Lit, who is overseeing the construction project, said some parts of the project face cost hikes of 30 to 40 per cent. The original total cost of the project was $400 million.
Another project that has been hit is Safra's Jurong clubhouse. Costs for the project have shot up 30 per cent since its groundbreaking ceremony in February last year. Its original budget: $30 million.
And earlier this month, the Health Ministry announced that it would provide Ren Ci charity with additional funding of 'up to $9.3 million' for its new hospital at Irrawaddy Road.
This was to help cover the hike in construction costs for the medical centre - now set to cost up to $42.4 million.
Although Ren Ci declined to comment on the issue, previous reports indicated that the initial budget for the project was $30.8 million.
One of the biggest cost increases reported this year involves the Singapore Island Country Club (SICC). The club was reported in June to have sought club members' approval to increase its budget to construct a new clubhouse from $60 million to $90.3 million - a whopping 50 per cent rise.
The Building and Construction Authority reports that construction costs rose 20% to 30%last year.
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17/8/2008
Subject: RICS Sets Up Urban Renewal Strategy Review Task Force
Description: Task Force Will Help to Shape Hong Kong Government’s Urban Regeneration Plans
The Secretary for Development, Mrs. Carrie Lam, has invited the public to participate in the review of the Urban Renewal Strategy (URS) to help shape the future direction of urban regeneration in Hong Kong. In response, the RICS has also announced formation of a special task force in support of the HKSAR government's actions to review existing urban renewal strategies. The Task Force will act an active role to analyze practical solutions to benefit the public while at the same time to bring about improvement to the quality of living, built environment and image of Hong Kong as a whole.
The RICS Urban Renewal Strategy Review Task Force consists of several experienced RICS members who cover different professional faculties including Quantity Surveying and Construction, Building Surveying, Facilities Management, Planning and Development, Valuation and Building Control. Members of the Task Force will meet with representatives from related government bodies in the near future and present professional advice and recommendations for the consideration of the government. Regular updates will be disseminated to media and thus the public with regard to suggestions and progress of the project.
A spokesperson for the RICS Urban Renewal Strategy Review Task Force said, "The setup of this Task Force reflects RICS' dedication to fully support the government in conducting the urban renewal strategy review in all stages. Aging buildings in disrepair and inadequate urban planning is creating more problems than expected. The recent detrimental fire hazard occurred at Cornwall Court which has brought along tremendous loss of human lives and property is also a result of aging structure and urban mix. This Task Force brings together key representatives from the public sector, private practice and enterprises and also academia, aiming at offering professional and pragmatic solutions for the government while allowing the public to share the positive results at the end."
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17/8/2008
Subject: Scottish Court Finds that Claimant Entitled to Rescind Contract
Description: Claimants Had Not Unreasonably Refused Access to the Site
In Ross v Nigel Johnston, Joiner and Builder Ltd.; 8 August 2008, the Sherriff’s Court held that the defendant builder’s various breaches of of the contracts’ implied terms relating to the standard of work meant that they were in material breach to such an extent so as to entitle the pursuers to rescind the contract. The defenders had undertaken the works to a standard far below that of a contractor of ordinary competence. The pursuers had rescinded the contract when they ordered the defenders to leave the site. This decision was re-affirmed when the pursuers refused to permit them to return. In addition to the circumstances know to them at the time of the rescission, the pursuers were also entitled to rely upon circumstances in existence at that date, but not known to them as justification for that rescission.
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17/8/2008
Subject: Court Rejects Challenge to Party Wall Award
Description: Party Wall Surveyor’s Award was Conclusive
In Rodrigues v Sokal, [2008] EWHC 2005 (TCC), the claimant challenged a party wall decision made by a surveyor. The claimants maintained that damage had been caused to their property by the work done on the neighbouring property. The party wall surveyor had invited the claimants’ surveyor to provide him with evidence of the damage, but this he had failed to do.
The argument that, because there had been no challenge to the award by way of appeal to the Count Court, meant that other courts could decide the same point on other evidence was simply unsustainable. S.10(17) of the Party Wall 1996 Act was explicit on this point.
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13/8/2008
Subject: Balfour Beatty Wins Multimillion Pound Middle East Contracts
Description: Awards Underline Leading Position in Middle East
Balfour Beatty announced today that its joint venture companies in Dubai have been awarded a major civil engineering contract and two building services contracts with a total value of 1.7 billion Dhm (£240 million).
Dutco Balfour Beatty has been awarded a 1 billion Dhm (£141 million) roads and bridgeworks project to construct two major interchanges as part of the Waterfront Development in Dubai. This is the latest in a series of civil engineering projects that the company has been awarded on this development by the client, Nakheel. The project, which will be completed in 24 months, forms part of the internal Waterfront road infrastructure to serve the needs of the Waterfront Development and supplement future connectivity to the Sheikh Zayed Road.
In two further projects, BK Gulf, the mechanical and electrical engineering business also jointly owned by Dutco and Balfour Beatty, has secured two new contracts in the UAE. The Marina Hotel project on Yas Island in Abu Dhabi valued at 270 million Dhm (£38 million) forms part of the new development to provide a Formula 1 standard racing complex. The hotel is due for completion in 2009.
A second project, the Trump International Hotel and tower project in Dubai, forms a gateway to the Jumeirah Palm. The project, valued at 430 million Dhm (£61 million), is due for completion in December 2010.
In both projects, BK Gulf is providing complete electrical and mechanical systems for the developments.
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8/8/2008
Subject: House of Lords Rules that Developer’s Oral Contract Not Binding
Description: Agreements Must be in Writing
In 2002 developer James Cobbe reached an ordal agreement with Mr, and Mrs, Lisle-Mainwaring, who owned Yeoman's Row, a residential block in Knightsbridge, central London, that he would buy the property for £12m if he won planning consent to redevelop it. Cobbe and the owners were to split the profits from the sale of the redeveloped property.
Cobbe obtained planning consent but the Lisle-Mainwarings wanted to renegotiate. Cobbe referred the matter to the courts, and both the High Court and Court of Appeal agreed that he was entitled to half the increase in the value of the property that occurred after he won planning permission.
Cobbe accepted £2m in 2006 as a settlement. However, the Lisle-Mainwarings took their case to the House of Lords, which has overturned the earlier decisions and ruled that Cobbe is only entitled to payment for his time and expense in obtaining the planning permission. He must now pay back the £2m plus 8%. He has been granted an allowance of £150,000 while an inquiry decides exactly how much he should be paid for his time.
The e Lisle-Mainwarings are now seeking costs. The decision is being viewed as reinstating the supremacy of the written contract.
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8/8/2008
Subject: Housing Slump Effect on Spending May be Exaggerated
Description: New Paper Says "Housing Wealth Isn’t Wealth"
In a new Mr. Willem Buiter, a former member of the of the Bank of England Monetary Policy Committee, and now with the London School of Economics, argues that there is no wealth effect from falling house prices, because the average consumer is no worse off. Mr. Buiter states that a change in the value of housing does not affect aggregate household wealth because, on average, everyone is a tenant in their own home, and the fall in house prices only affects those who have what he calls “long” housing assets i.e. landlords. Those with “short” housing assets, that is those who plan to buy a property or who want to move up the property ladder, benefit. The average experience is of an owner-occupier who plans to live in his home until he dies. Unless he worries about how much he will leave to his heirs, he is indifferent to the value of his home. Although house price changes shift the distribution of household wealth, they do not alter it. However, Mr. Buiter goes on to say that there is a wealth effect if prices fall because of a bubble bursting. Then landlords are worse off, and tenants are no better off, because the present cost of future housing services is unchanged.
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8/8/2008
Subject: Fears that QSs May be Remove from Shortage Occupation List
Description: Publication of Revised List Deferred
The Home Office has said that the publication of the National Shortage Occupation List has been delayed indefinitely. The list gives visa priority to certain occupations in order to alleviate skills shortages in the UK. There are concerns that quantity surveyors may be removed from the list altogether because of the current downturn in the construction industry. However, despite the current financial climate, there is a significant number of vacancies for quantity surveyors.
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8/8/2008
Subject: Construction Managers Warned About Risks of Working at Height
Description: Manager Failed to Report Incident
The Health and Safety Executive (HSE) has warned employers and senior managers that they must control the risks of working at height in the workplace. The warning follows the prosecution of the manager of a construction company after an incident led to an employee at a site in Mansfield suffering severe injuries and for failing to control the risks from falls from height at another site in Wollaton.
Mr. Simon Ludgate, Manager of Real Estate (Midlands) Ltd., was fined £1.500 at Nottingham Crown Court after admitting breaches of sections 2(1) and 3(1) of the Health and Safety at Work Act and regulation 3(1)(b)(ii) of the Reporting Injuries, Diseases and Dangerous Occurrences Regulations 1995. A worker was seriously injured after falling two metres from an unprotected wall whilst laying bricks.
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8/8/2008
Subject: Court Rules on Level of Surveyors’ Reasonable Skill and Care
Description: Surveyor Misled into Valuing Wrong Property
In Platform Funding Ltd. v Bank of Scotland plc (formerly Halifax plc); 31 July 2008
[2008] EWCA Civ 930, the court reviewed authorities and drew the following conclusions:
The default obligation was limited to taking and exercising reasonable skill and care;
Special facts or clear language were required to impose a stricter obligation than that of reasonable care;
A professional man will not readily be supposed to undertake a guaranteed result;
If a professional man undertakes with care what he was retained or instructed to do, he will not readily be found to have nevertheless warranted to be liable for a loss caused by the fraud of another.
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4/8/2008
Subject: Delaware Approves First Offshore Wind Farm
Description: Bluewater Reaches Agreement with Delaware Power
State officials on Thursday approved an agreement between Delmarva Power and a wind farm developer that could lead to the nation's first offshore wind farm off the Delaware coast. Following months of negotiations, an agreement was reached between Delmarva and Bluewater Wind LLC and was unanimously approved by the Public Service Commission and representatives of three other state agencies. Bluewater hopes to expand the wind farm to 450 megawatts, as initially proposed, by attracting other customers in the region. Bluewater is also working with regulators in New Jersey and Maryland on separate proposals for wind farms off the coasts of Atlantic City, N.J., and Ocean City, Md.
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4/8/2008
Subject: Interserve Consortium Wins £310m Defence Contract
Description: PFI Contract at Corsham
An Interserve/ John Laing Consortium has been awarded a PFI contract worth £310m for the construction and management of a new office and accommodation complex for the Ministry of Defence at Corsham. The consortium will work with DE&S ISS and Defence Estates throughout the project. Interserve will be involved alongside Laing O'Rourke during the construction of the new flagship offices and single living accommodation and will then provide a range of facilities management services worth £194 million over the 25-year operational phase. Construction will begin immediately and is expected to be complete by 2011. Interserve and John Laing will each invest £7.0 million in the project as their respective 50 per cent equity/sub-debt stake.
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4/8/2008
Subject: Baqus Acquires Sworn King & Partners
Description: AIM Quantity Surveyors Makes First Acquisition
Baqus, the quantity surveying practice formed by an amalgamation of quantity surveying practices last year, has bought long-established practice Sworn King & Partners. Based in Oxford, Sworn King’s client base is in the education and public sectors, areas where Baqus want to expand. This is Baqus’ first acquisition since its flotation on the AIM, but the company acquired a share option in Liverpool-based Brian Hannaby last week.
Baqus currently comprises three established building and quantity surveying consultancies: Boxall Sayer, Denley King and Fletcher McNeill. The combined Group covers a broad geographical area with offices located in Canterbury, Chichester, Lichfield, Liverpool, London, Manchester, Oxford, Poole, St Albans and Winchester.
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30/7/2008
Subject: Government Announces Shortlisted Transport Schemes
Description: 36 Schemes Shortlisted
The Housing Minister and the Transport Minister have announced the 36 schemes shortlisted to win a share of the £200m transport infrastructure fund for new housing developments. The schemes are all in areas committed to delivering more housing and improving transport infrastructure in their areas.
The schemes shortlisted today will move on to the next stage of the bidding process, and will have to demonstrate that they can help unlock potential in the proposed schemes. The winners will be announced in early 2009.
The hopefuls include: Northampton to Wellingborough Bus Rapid Transit, South East Hampshire – Harbour Link, Bus Rapid Transit Scheme, a Pedestrian and Cycle Bridge in Swindon, the Regiment Way Park and Ride, Colchester, the West of Worcester Rapid Transit Corridor, and. A new Northern entrance at Luton Parkway Station.
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30/7/2008
Subject: No Impropriety in the Appointment of an Adjudicator
Description: Makers UK Ltd. v The Mayor and Burgesses of the London Borough of Camden; 25 July 2008
The London Borough of Camden challenged the appointment of an adjudicator and his jurisdiction because his name was suggested to the RIBA for appointment. Camden also argued that there was apparent bias because the claimant's solicitor had contacted the adjudicator before his appointment to check on his availability. Both arguments failed. In its decision, the court made the following observations:
"(1) It is better for all concerned if parties limit their unilateral contacts with adjudicators both before, during and after an adjudication; the same goes for adjudicators having unilateral contact with individual parties. It can be misconstrued by the losing party, even if entirely innocent.
"(2) If any such contact, it is felt, has to be made, it is better if done in writing so that there is a full record of the communication.
"(3) Nominating institutions might sensibly consider their rules as to nominations and as to whether they do or do not welcome or accept suggestions from one or more parties as to the attributes or even identities of the person to be nominated by the institutions. If it is to be permitted in any given circumstances, the institutions might wish to consider whether notice of the suggestions must be given to the other party."
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25/7/2008
Subject: Save on Spons and Wessex 2009 Price Books
Description: Discounts on New RICS Forms of Agreement Too
BLISS Books is offering a 10% discount on the latest Spons and Wessex Price Books on orders placed by 30 August 2008. The new Spons price books are due to be published in August 2008. In addition, discounts are available on the new suite of RICS Scopes of Services forms.
Associated Link : www.blissbooks.co.uk/specials.php
25/7/2008
Subject: London Olympics Cost Advisers Paid £87m
Description: CLM’s Fee Accounts for 15% of the £563m Spent by the ODA
“The Times” is reporting that the CLM consortium, charged with keeping the costs of the London 2012 Olympic construction projects down, was paid £87m in the financial year ending in March 2008. The ODA’s accounts also show liberal bonuses for executives at the ODA, and staff costs generally rose by 36% year on year. The highest paid ODA Executive was David Higgins, who was paid £624,000, with additional bonuses promised in August in line with targets which have been met ahead of schedule.
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25/7/2008
Subject: Balfour Beatty Plans Expansion of Exeter International Airport
Description: Aims to Treble Passenger Numbers by 2030
Balfour Beatty, the owner of Exeter International Airport has applied for permission to expand the retail and leisure facilities at the airport. Balfour Beatty wants to expand the terminal and build new shops, a restaurant and conference hotel. A three-month public consultation on the plans is currently under way. Balfour Beatty bought the airport from Devon County Council in January 2007 for £60m.
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25/7/2008
Subject: Singapore Delays More Projects to East Cost Pressures
Description: Public Construction Projects Worth $1.26 Billion Delayed
In a bid to curb rising construction costs, the Singaporean government has announced a suspension of $1.26 billion-worth of construction projects. Construction costs rose by 20% to30% in 2007 because of higher material costs. In the first quarter of 2008, they increased by an additional 3% to 5%. Singapore is currently in the midst of a building boom due to the revival of the property sector and the construction of two massive gambling complexes.
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25/7/2008
Subject: Irish Government Tells Builders that Homes Must be Carbon Neutral
Description: 2013 is the Deadline
All new homes built in Ireland from 2013 onwards will have to be carbon neutral and emit no harmful greenhouse gases. Solar panels, woodchip burners, wind turbines and triple-glazing windows will become standard features on new housing under ambitious plans outlined by Environment Minister John Gormley. Mr. Gormley plans to make changes to the Building Regulations so that "passive" housing becomes the Irish norm. There will also be tougher regulations for office blocks and other developments. The plans mean that Ireland will have the toughest environmental standards in the EU.
The government has also announced a €9m grant scheme for those developers building energy efficient houses.
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25/7/2008
Subject: Draft Construction Bill Published
Description: Amendments Proposed to Contracts in Writing Legislation
The draft Construction Contracts Bill, which has just been published by the Department for Business, Enterprise and Regulatory Reform (DBERR) clarifies areas of the Housing Grants, Construction and Regeneration Act 1996, which have been the cause of some concern. The draft Bill is the result of the consultation with the industry over changes to the Act. Some of the key proposals are:
Doing away with the requirement that a contract must be in writing for the Act to apply;
Providing a statutory framework for adjudication costs;
Prohibiting agreements that interim payments are conclusive;
Improving the entitlement to suspend performance.
There are also proposals to restrict the scope of the decision in Melville Dundas Ltd. (In Receivership) v George Wimpey (UK) Ltd. and Norwich Union Insurance Ltd., H.L. [2007] 17 CLICK 11, in cases of insolvency.
Associated Link : www.berr.gov.uk/files/file47085.pdf
18/7/2008
Subject: Davis Langdon Reports 28% Increase in Turnover in UK, Europe and the Middle East
Description: Firm Buoyed by Increases in Turnover in Ireland and the Middle East
Davis Langdon is reporting an increase in global turnover to £259m. All the company’s services- cost management, project management and specialist services- show increases of between 15% and 35% in 2007-2008. The company has benefited from a decision to increase the number of sectors it works in. These include infrastructure, hotels, the arts and leisure.
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18/7/2008
Subject: Demand for Mortgages Sinks to Lowest Level for Two Years
Description: Mortgage Lending Falls from £24.5 Billion to £23.8 Billion In a Month
The Council of Mortgage Lenders today (18 July 2008) announced that mortgage lending has fallen to its lowest since February 2006. . The fall in mortgage lending fell by 32% on the year. This usually busy period of the year has been marred by funding shortages and a fall in consumer demand due to the credit crunch. The CML forecasts that this will continue for the remainder of 2008. The situation is adding to the risks to economic growth.
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18/7/2008
Subject: Report Slams Inferior Work on Iraqi Military Bases
Description: Senate Panel Investigation Told that Unqualified Workers Used
A Senate panel investigating the electrocutions of Americans on bases in Iraq was told last week contractor KBR used employees with little electrical expertise to supervise subcontractors in Iraq and hired foreigners who couldn't speak English. The Pentagon has said 13 Americans have been electrocuted in Iraq since September 2003. It has ordered Houston-based KBR to inspect all the facilities it maintains in Iraq for electrical hazards.
The New York Times has reported that during just one six-month period -- August 2006 to January 2007 -- at least 283 electrical fires destroyed or damaged American military facilities in Iraq, including the military's largest dining hall in the country. An Army survey issued in February 2007 said electrical problems were the most urgent noncombat safety hazard for soldiers in Iraq.
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18/7/2008
Subject: Carillion Named as Preferred Bidder for Kent Academies
Description: Contract Worth £118m
Support services and construction company Carillion Plc. Has announced that it has been selected as the preferred bidder for Kent County Council's New Line Learning Academy and Kent Batched Academies programme, worth a total of £118 million.
Carillion is a framework contractor for the UK Government's academies programme, which forms part of the Building Schools for the Future Programme (BSF). The five new academies are - New Line Learning Academy and Cornwallis Academy in Maidstone, Axton Chase Academy in Dartford, Marsh Academy in Romney Marsh and Spires Academy in Canterbury.
The company said it will provide a fully-integrated solution for the new academies including building design, construction and engineering services, together with the design and installation of IT services. Construction will commence after final close in November 2008, with the projected completion by March 2011.
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