|
News & Diary
 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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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
Associated Link :
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.
Associated Link :
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.
Associated Link :
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
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.’.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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
Associated Link :
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
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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?
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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).
Associated Link :
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.
Associated Link :
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.
Associated Link :
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”.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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
Associated Link :
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.
Associated Link :
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.
Associated Link :
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
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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
Associated Link :
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.
Associated Link :
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.
Associated Link :
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
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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%.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Why not get your company name in front of thousands of people?
For £400.00 per annum you company name will be displayed nationally.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
13/10/2008
Subject: Utility Warehouse / QSi Fundraiser Scheme
Description: Utility Warehouse / QSi Fundraiser Scheme
Read about the new Utility Warehouse / QSi Fundraiser scheme
Associated Link : http://www.theqsi.co.uk/doc/which%20-%20qsi%20-%20utility%20warehouse.doc
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
29/9/2008
Subject: Which? - Gives the thumbs up
Description: Which? Gives the thumbs up
Which? Magasine says Utility Warehouse are the best.
See new tariffs for QSi members.
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.
Associated Link :
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.
Associated Link :
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).
Associated Link :
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.”
Associated Link :
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.
Associated Link :
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."
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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)
Associated Link :
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.
Associated Link :
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.
Associated Link :
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."
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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."
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
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.
Associated Link :
18/7/2008
Subject: Court Rules no Evidence that Consultant Engineer’s Advice was Relied Upon
Description: Intended Novation Agreement Never Entered Into
The Technology and Construction Court has found that engineers Mott Macdonald were not liable to Galliford Try for failings on a project to redevelop the former Victorian Birmingham Children’s Hospital. Galliford Try’s claim was brought in tort on the basis that there was sufficient to found a duty of care in tort such as to justify the recovery of economic loss.
Mott Macdonald had assumed no liability and Galliford Try had not relied upon its advice, nor had Mott Macdonald any responsibility for design as this had been given to the specialist subcontractor.
Associated Link :
11/7/2008
Subject: South African Housing Sector Suffers Downturn
Description: Business Confidence in the Construction Industry Slumps
The First National Bank’s building confidence index fell to 50 in the second quarter of the year, compared with 66 in the first quarter. The index, which is compiled quarterly by the Bureau for Economic Research at Stellenbosch University, measures the business confidence of all the major role players and suppliers in the building industry. These include architects, quantity surveyors, contractors, subcontractors, wholesale and retail merchants, and manufacturers of building materials. Whilst there was an increase in employment during the quarter, job cuts are expected in the third quarter of the year. Business confidence amongst residential contractors fell sharply, and the only area of optimism was shown by the quantity surveyors.
Associated Link :
11/7/2008
Subject: Major Projects Increase Demand for Construction Professional
Description: Demand Will Outweigh Supply
Major infrastructure projects proposed by the Hong Kong government, coupled with the demand for experienced engineers in Macau and the mainland, are likely to put a huge strain on engineering resources in Hong Kong, according to a local recruitment consultant. Hays says that engineers of all disciplines, with varying levels of experience, and architects and quantity surveyors will be needed as the initial planning and design of the government's 10 major infrastructure projects gather pace. Several of these projects are expected to reach more advanced stages in 2009 and 2010. These projects include the MTR's extension lines, the redevelopment of the former Kai Tak airport, and the highway linking Tuen Mun and Chek Lap Kok.
Associated Link :
11/7/2008
Subject: Managing the Risk of Delayed Completion In The 21st Century
Description: CIOB Report Shows Little Improvement in Time Management Methods
Between December 2007 and January 2008, the Chartered Institute of Building undertook a survey into the industry’s experience and knowledge of different methods of project control, time management, record keeping and monitoring and training. Standard forms of contract do not encourage efficient time management, but there is a move towards developing contracts which impose punitive sanctions if time is not adhered to. The purpose of the research was to understand industry performance in managing time on projects. The thesis of the survey was that, despite, sophisticated critical path software, there has been little change in the practice of time management since the development of the bar chart. The report concludes that there are grounds for concern for the effective management of time using network-based programming.
Associated Link :
11/7/2008
Subject: International Commercial Mediation
Description: New Book in Response to European Mediation Directive
With the directive on mediation in civil and commercial disputes recently approved by the European Parliament, the use of mediation as a method of dispute resolution will increase internationally.
"International Commercial Mediation" by Cyril Chern is a practical guide that can be used by both experienced mediators, who need to hone their skills and increase their efficiency, and beginners who need to learn the mediation process. The book is priced at £170.00.
Associated Link :
11/7/2008
Subject: Amec Consortium Named Preferred for Sellafield Decommissioning
Description: £1.3bn- a Year Contract
A consortium including AMEC PLC, Areva and Washington International Holdings Ltd. has been named preferred bidder for the £1.3 billion a year contract to decommission and clean up a large nuclear site at Sellafield, the Nuclear Decommissioning Authority announced on Friday (11 July 2008)
The NDA said in a statement it will now enter into a period of contract finalization with the consortium, called Nuclear Management Partners Ltd., prior to a final decision on the award of the contract in October.
The contract would be awarded initially for a period of five years with the potential of further extension periods, subject to performance, to a total of 17 years, the NDA said. The consortium will receive an annual fee of £50 million in addition to the contract value.
Associated Link :
4/7/2008
Subject: Claim Letter Complied with Pre-Action Protocol
Description: T.J. Brent Ltd. and Another v Black & Veatch Consulting Ltd.; 13 June 2008
The parties’ dispute concerned damage caused by a leak in an oil pipe in 2000 and 2001. The defendant, B&V, was employed by Southern Water as engineer for the works and the claimants were the contractor at Southern Water’s supply works in Andover where the problem occurred.
The present decision concerned whether or not the claimants had complied with the Pre-Action Protocol, and, if not, whether orders could and should be made against it. B&V made the application to enable it to the intended mediation proceedings knowing that they had a credit in respect of costs to date, thereby putting them, as they considered, in a better position in the negotiation and mediation. The court reviewed the correspondence between the parties which purported to set out the claim.
The court ruled that the letter sent by the claimants, which was intended to be a letter of claim under the Pre-Action Protocol in effect made it clear who the claimants were likely to be. The claimants’ full names were given, although their addresses were not. The letter contained a summary of the events, and how the claimants alleged that the pipe had been damaged. The letter spelt out, as best it could under the circumstances, the basis on which the claim was made. It had not been possible for the claimants to identify the principal contract terms relied upon, because, at that stage, the claimants had not had a copy of B&V’s contract with Southern Water; however, they made it clear that B&V owed a contractual and common law duty of care to design and supervise the works with reasonable skill and care. The letter also made it clear that a claim would be made for breach of those duties and for contribution under the Civil Liability Contribution Act 1978.
For the purposes of the Pre-Action Protocol, it was not necessary for the letter to information be set out in detail, unless it was critical to the claim. At the time the letter was written, it was clear that no settlement had been reached with Southern Water, and, hence, it was not possible to identify what sum was going to be claimed. Proceedings would have had to be commenced before it was known what the settlement was.
Associated Link :
4/7/2008
Subject: France’s Wind Power Capacity to Double by 2010
Description: Installed Wind Generation Capacity Currently 2,500MW
Public electric grid operator Reseau de Transport d'Electricite (RTE) expects the French wind power capacity to double to 5,000 MW in 2010. Whilst this target looks substantial when compared with the 400 MW installed wind power capacity at the start of 2005 France is still lagging way behind Germany, which had 22,200 MW at the end of 2007 and Spain which had 15,100 MW. The French government has undertaken to lift the wind energy capacity to 7,000 MW in 2012, 17,000 MW in 2015 and 20,000 MW in 2020. According to RTE, the investments required to connect 20,000 MW of wind power to the grid will amount to 1.0 bln euro ($1.57 bln), half of which will be invested from now until 2010-2012 and the other 500 mln euro ($785.9 mln) from 2010-2012 until 2020.
Associated Link :
4/7/2008
Subject: Australia Now in ‘Mortgage Recession’ Says Broker
Description: June Sales Fall by 22%
Australia’s largest mortgage broker, the Australian Finance Group (AFG), says that the number of mortgages has continued to fall. June’s fall of 22% followed a decline of 31.5% in May. Interest rates in Australia have risen due to the problems in the subprime market in America. As in many other countries at present, including the UK, potential borrowers are sitting put instead of moving house.
Associated Link :
4/7/2008
Subject: Concerns about Taylor Wimpey After Shares Fall by 50%
Description: House Builder Fails to Secure £500m Rescue Package from Investors
There are fears for the future of house builder Taylor Wimpey after it failed to obtain a £500m emergency rescue package from its investors. This means that Taylor Wimpey could breach its loan covenants and rise questions about its long-term future. Shares fell by 50% as a result of the news. As with other house builders, Taylor Wimpey has been suffering by the current credit squeeze. Currently, its debt level stands at £1.7bn.
Beleagured house builders are now looking to the social housing market to improve their fortunes. Although affected by falling house sales, Morgan Sindall says that the social housing market is still healthy.
Associated Link :
4/7/2008
Subject: RICS Markey Survey Shows Construction Workload Falls Fastest Since 1995
Description: House Building Sector Worst Hit
The latest market survey from the Royal Institution of Chartered Surveyors shows that construction workload has plummeted faster than any time since 1995. Private house building has been the worst hit, with the greatest decline since the survey commenced in 1994. The biggest falls were felt in Scotland, Wales and Northern Ireland across all sectors.
On the brighter side, small increases in workload were reported infrastructure and private industrial projects.
Associated Link :
26/6/2008
Subject: Expert Determination Enforceable Even in Wrong
Description: No Apparent Bias by Expert
The Technology and Construction Court has ruled that an expert called in to decide a building dispute between the parties was not biased. The defendant argued that where the parties and expert all intended a reasoned decision, there was an implied term of the agreement that the parties would be bound by the expert’s award only if it was free from gross or obvious error or was not perverse in its conclusions. The defendant argued that this term or condition precedent was implied as a matter of public policy under the Human Rights Act 1998 section 6.
There was nothing in the agreement which suggested that the approach to this dispute was different from any other expert determination. There had no suggestion at the time of entering into the agreement to submit to expert determination that the parties had given any thought to the rights contained in the Human Rights Act. Both partied had had professional representatives who could have researched this if they had been uncertain as to the nature of expert determinations. The court saw no reason to depart from the decision in Bernhard Schulte GmbH & Co KG v Nile Holdings Ltd., [2004] EWHC 977 (Comm), [2004] 2 Lloyd’s Rep 355 that there was no requirement for the rules of natural justice or due process to be followed in an expert determination for that decision to be binding upon the parties.
There was no evidence of actual bias on the part of the expert.
It was not open to the court to set aside or refuse to enforce any decision because of errors in the determination, whether gross, obvious or perverse. Hence, the expert’s decision was binding even if wrong. There was no real prospect of the defendant resisting enforcement of the decision, and the court awarded the claimant summary judgement.
Associated Link :
26/6/2008
Subject: Ofgem and BERR Publish Proposals to Facilitate Renewable Energy Projects
Description: Plans to be Implemented over the next two years
Ofgem and the UK Department for Business, Enterprise and Regulatory Reform (BERR) have released proposals to make it easier and quicker for renewable projects to be connected to Britain's electricity grid in a bid to help meet the government's renewable energy targets. The plans aim to revamp the old system set-up connecting old-style generators of gas, coal and nuclear power stations to the grid to concentrate on renewable generation.
Ofgem and BERR propose to change the financial incentives for investment in new capacity that will be needed to connect more remote renewable generation, thereby promoting more capacity so the network is ready when new renewable generation comes online in the coming years. These plans are expected to be implemented over the next two years.
There are also plans to expand use the existing network capability more efficiently -- for example, sharing capacity between renewable generation and conventional generators in the meantime.
'The changes would allow for much faster connection of more than 35 gigawatts (GW) of renewable generation to meet the government's target of generating 15% of Britain's energy from renewable sources by 2020,' Ofgem said in a statement.
'The reforms will also make it easier for other low carbon generation and any new nuclear plants to connect to the transmission network as our existing power stations reach the end of their operating lives or need to be replaced with lower carbon forms of generation,' it added.
Associated Link :
26/6/2008
Subject: NHPAU Tells UK Government 2.96m Affordable Homes Needed
Description: Long-Term Housing Needs Must be Considered
The National Housing and Planning Advice Unit (NHPAU) is advising the Government that at least 2.96 million new homes should be built and as many as 3.48 million may need to be added to the current housing stock by 2020 if property is to become more affordable. The NHPAU says that planners and decision makers must look to the longer term, rather than be side-tracked by the current economic difficulties. Reporting on regional requirements, the NHPAU says the greatest need for homes is in the south, whilst the North East needs the fewest homes to be built in order to make houses affordable.
Associated Link :
19/6/2008
Subject: NHBC Buildmark Scheme Does Not Contain Arbitration Clause
Description: Complaints and Disputes Procedures Only Provides Options
The Technology and Construction Court has ruled that the National House Building Council’s Buildmark scheme does not contain an arbitration agreement between house buyers and the house builder. The home owners had attempted to take house builder Crest Nicholson to arbitration over defects to in their house and also to recover the costs incurred in appointing a surveyor to report on them. The court concluded that, at best, it was an agreement to agree whereby the parties, in this case the Builder or Developer and the House Owner, could decide and agree upon what is the most suitable dispute resolution process for the particular case.
Associated Link :
19/6/2008
Subject: Italy’s Enel to Take Part in Romanian Power Plant Project
Description: Consortium Formed with E.On and Termoelectrica
Italy's biggest power company Enel SpA is to joint with German utility E.ON and Romanian state-owned power company Termoelectrica, to build of a coal-fired power plant in Romania. The Romanian company and the consortium of E.ON and Enel signed a memorandum of understanding (MoU) to start a project for building an 800 MW thermal electric power plant in Braila, eastern Romania, about 200 km northeast of Bucharest.The joint venture, which will be set up by the three parties, will use the existing assets of a Braila power plant. Under the MoU, a feasibility study will provide an independent assessment of Termoelectrica's existing assets. The MoU also envisages the conduct of an analysis on the features and costs of the new plant. The parties will decide whether to proceed with the project basing on the results of the study, that is expected to be completed by end-2008.
Associated Link :
19/6/2008
Subject: Taylor Wimpey Accused of Withholding Subcontractors’ Payments
Description: Contractor Wants to Maintain Cashflow
Subcontractors are reporting that Taylor Wimpey and Barratt have told them that their invoices will not be paid until July. Both companies have been hit by the current crisis in the housing market, and are attempting to maintain cash flow as their share prices fall and they shed jobs. The companies deny that withholding payments is group policy.
Associated Link :
19/6/2008
Subject: UK Government Considers Rescue Plan for Housing
Description: National Housing Federation Submits Proposals to Release £1bn
The National Housing Federation (NHF), an umbrella body of housing associations which run affordable housing for the less well off, has submitted a proposal this week to redirect £1 billion of already-committed government money for social housing into buying tens of thousands of new homes from beleaguered house builders. The government is under pressure to help the housing sector which is suffering from the plunge in house sales caused by the credit crunch. The NHF is concerned that many of the 45,000 flats and houses earmarked for social housing this year will not get built, as most of the big house builders have all but stopped building homes due to the sudden collapse of the market since Spring.
The NHF says that £1bn in unused funds could be used in innovative ways to buy unsold stock, incomplete developments and land at a discount. NHF Chief Executive David Orr is due to discuss the proposal with housing minister Caroline Flint early next week to discuss the measure.
Associated Link :
13/6/2008
Subject: Northumberland County Council Advertises for Cost Consultancy
Description: our-year Framework on Offer
Northumberland County Council has posted an advert for a consultancy to provide quantity surveying, independent cost advice, project management, contract services and employer’s agent services for a range of projects, including improvements, alterations, refurbishment and new build schemes. Most of the projects will be on a design and build basis.
Associated Link :
13/6/2008
Subject: UK Business Secretary Urges Global Nuclear Investors to Build in Britain
Description: Britain Leader in Global Investment League Table, says Research
Business Secretary, John Hutton, says that research shoes that Britain is a leader in a new global nuclear investment 'league table' and looks set to attract the world's leading energy companies to build its next generation of nuclear power stations. Mr. Hutton told a government-organised conference that he wants to see a new generation of nuclear power stations built and operating as quickly as possible, given the urgency of reducing carbon emissions and combating other energy threats. New nuclear energy is a key element in our transition to a low carbon economy less dependent on oil, which is essential if we are to deal with the prospect of high oil prices in the medium and long term.
Building on January’s White paper, Mr. Hutton told the conference that the government has the ambition and commitment to build and maintain the best market in the world for companies to do business in nuclear power. The government is to create a new Office of Nuclear Development, within the Department for Business, to build more effective cross-Government working on nuclear energy. There will also be a Nuclear Development Forum, bringing together Government and the industry, to discuss key issues and maintain momentum as nuclear new build progresses.
Associated Link :
13/6/2008
Subject: Bilfinger and Berger Consortium Wins Toll Road Project
Description: First Project in Association with John Laing
Bilfinger and Berger , the German building and services contractor, has received a contract to expand and maintain the stretch of the A1 motorway between Hamburg and Bremen worth 650m euros. Construction will begin in the autumn. The company will be a part of the largest-ever private operating consortium in Germany. According to the regional authorities in Lower Saxony, the other members of the consortium are the UK construction company John Laing and the German road building company Johann Bunte. The consortium will be paid by the state from tolls collected on the stretch of road from lorry drivers. After 30 years the stretch will be returned to the government. This project will be the third state-funded, but privately operated, project in Germany.
The three companies beat Germany's biggest construction company, Hochtief, to get the contract. Bilfinger has put around 170m euros into these kinds of projects. Returns on injected capital in these types of projects are usually between 11 and 13%.
Associated Link :
10/6/2008
Subject: RICS to Publish New Consultancy forms
Description: Suite Will be Available This Month
The Royal Institution of Chartered Surveyors is publishing a new suite of appointment forms for surveyors. These are:
Quantity Surveyor Services - Scopes of Service;
RICS Standard Form of Consultant's Appointment plus Explanatory Guide;
RICS Short Form of Consultant's Appointment;
RICS Employer's Agent Services;
RICS Project Monitor Services - Scopes of Service;
RICS Building Surveyor Services - Scopes of Service;
CDM Co-ordinator Services - Scopes of Service.
All are available via the BLISS Books website: http://www.blissbooks.co.uk
Associated Link :
9/6/2008
Subject: Europe Embraces Mediation
Description: New Mediation Directive Adopted
he European Union has adopted a Directive on certain aspects of mediation in civil and commercial matters. The Directive will facilitate access to cross-border dispute resolution and promote the amicable settlement of disputes using mediation.
Associated Link :
9/6/2008
Subject: Oil Prices Make Wind Power More Competitive
Description: Spanish Utilities Want Goverment Help to Increase Capacity
Spain is the world’s third largest producer of wind power, and the Spanish government wants that capacity to expand to 20,000 MW from 16,000MW by 2010 to enable it to meet EU targets. However, the industry says that the government will need to maintain the so-called "feed-in tariffs" in the medium term to enable it to comply. The cost of electricity generated by wind turbines was 80-85 euros ($126.4-134.3) per megawatt-hour, compared to 80 euros/MWh for gas-powered generators and 85 euros/MWh for oil-fired turbines. One of the barriers to expanding production was national grid operator REE'S cap of 30% on wind power's share of electricity demand, to prevent the system from being vulnerable to sudden drops in wind speed. There is also the high cost of connecting dispersed and isolated generators to the grid, and the lack of availability of wind turbines.
Associated Link :
9/6/2008
Subject: Payment squabble over Hlongwane’s beach house
Description: Client Under Fraud Office Investigation
Durban construction firm Design Projects alleges Fana Hlongwane, chairperson of arms company Ngwane Defence and former adviser to the late defence minister Joe Modise, owes it R920 758 for the upgrading of his holiday house in the luxury Zimbali Coastal Resort, north of Durban. Hlongwane is alleging poor workmanship and performance. Hlongwane subsequently employed another contractor to complete the work and failed to pay Design Projects. Hlongwane, who keeps a low public profile, might be a subject of the Scorpions’ new investigation into South Africa’s purchase of jet trainers and fighter jets from British arms giant BAE and Sweden’s Saab. The UK’s Serious Fraud Office, also probing the deal, revealed that BAE agreed to pay an annual retainer of £1-million to Hlongwane in 2002 and a “settlement” of $8-million in 2005 “in relation to work done on the Gripen [fighter jets] project.
Associated Link :
9/6/2008
Subject: Irish Tender Prices Fell 4.3% in 2007
Description: Society of Chartered Surveyors Study Reinforces Other Reports
A report from the Society of Chartered Surveyors shows that Irish tender prices costing more than €500,000 fell steadily during 2007 for new-build projects. In the last part of the year, tender prices fell even more. This and other studies reinforce the slow down in residential construction and the consequent increase in capacity in the rest of the industry. Intense competition and a scaling back of projects is forcing contractors to cut tender prices. Over €4.5 million has been cut from the cost of projects that would have cost €100m just 12 months ago.
The news accompanies the publication of a confidential report from the employment and training authority, FAS, which predicts that a quarter of construction workers will lose their jobs by the end of 2009.
Associated Link :
30/5/2008
Subject: BAM Wins Edinburgh Tramway Contract
Description: Contract Works to Begin in OCtober 2008
BAM Rail, a subsidiary of Dutch construction company Royal BAM Group, has won a contract from German electronics and engineering group Siemens AG as a subcontractor for the construction of a tram line in Edinburgh.
Under the contract, BAM Rail will build nine km of double-track tram line in the centre of Edinburgh as well as 10 km in the direction of the suburbs and the airport to the west of the Scottish capital. The total building costs amount to about 40 mln euro ($62 mln).
The works are part of an extensive contract that will be carried out from October 2008 by a consortium made up of German construction group Bilfinger Berger AG and Siemens at the instructions of Transportation Initiatives Edinburgh (TIE), a project organisation of the city of Edinburgh.
Delivery of the tram line is expected at the end of 2010. After a testing period of several months, the first trams will be running between the airport and the port of Edinburgh in the first half of 2011.
Associated Link :
29/5/2008
Subject: Global Construction Costs Book Published
Description: Country Coverage Increased
The 2008 Global Construction Costs and Database Year Book has now been published.
Compass International's 550+ page publication provides "current" detailed information on construction cost specific to 81 countries world wide. Countries include the following:
Australia;
China;
Egypt;
France;
Holland;
Nigeria;
Norway;
Poland;
U.K.
U.S.A.... and more.
(8 additional countries added)
The information contained in this valuable reference source includes the following:
Labor Rates;
Material Costs;
Construction Practices;
Square Feet/Metre Unit Costs;
Engineering/Architectural Rates;
Import Duties;
Location Factors;
Transport Costs;
Exchange Rates;
Local Taxes ... and more.
This Data Applies to All Types of Construction:
Manufacturing Plants;
Civil Projects;
Process Facilities;
Pharmaceutical Facilities;
Power Plants;
General Construction.
Available as a looseleaf or on CD.
Associated Link : blissbooks.co.uk/product_info.php?products_id=48636blissbooks.co.uk/
29/5/2008
Subject: Westinghouse Signs Contract to Build Nuclear Plants
Description: First New Reactors in Thirty Years
Westinghouse Electric Co. has announced that it and its partner, The Shaw Group, has signed an engineering contract to build two nuclear plants in South Carolina, only the second such deal for new U.S. reactors in three decades. The news comes as escalating costs for cement, copper and steel have cast a shadow over the so-called "nuclear renaissance" in the United States. The contracts are with South Carolina Electric & Gas Co. and Santee Cooper to build two AP1000 reactors in Jenkinsville, S.C.
Associated Link :
29/5/2008
Subject: CECA Reports House Building Static in North East
Description: Credit Crunch Forces Buyers Out of the Market
The Civil Engineering Contractors Association is reporting that house building on Teesside has all but ground to a halt due to the current financial climate. CECA members are reporting that developers are mothballing sites and are moving away from budget homes to higher value niche projects. Larger firms will be forced to look outside the region for work. The CECA survey shows that orders are down by as much as a fifth compared with last year. Developers are trying to sell existing housing stock at reduced prices.
Associated Link :
29/5/2008
Subject: Contractors Seek International Partners As High-Rise Takes Off
Description: Height Restrictions have been Lifted
Saudi contractors want to form partnerships with inter-national firms to capitalise on the predicted boom in demand for high-rise towers, after restrictions on the height of buildings were lifted in Riyadh and Jeddah. Now that the height limit has been removed, the skyline of each city is set to change dramatically. In Riyadh, plans are being developed for three major towers. These are the 350-metre Al-Rahji tower and two towers over 200 metres in the centre of the city.
Activity is even stronger in the second city of Jeddah. According to local contractors, city authorities are reviewing three proposals a week for high-rise towers, with at least 10 awaiting approval. Towers already being developed include Sama Dubai’s Dubai Towers Jeddah, measuring over 300 metres, the 310- metre Lamar Towers, and the 250-metre Headquarters Business Park. All will be dwarfed by the Mile High Tower in the city planned by Riyadh-based Kingdom Holding, which is likely to be close to 1,100 metres tall.
Instead of inviting foreign companies to come in with expensive offers, customers are inviting local firms to bid for projects, then asking them to partner with other companies that are experienced in high-rise construction.
Associated Link :
29/5/2008
Subject: RIBA and ACA in Contract Dispute
Description: Association of Consultant Architects Wants to Publish Revised SFA/99
The dispute between the RIBA and the Association of Consultant Architects is gathering momentum, with the RIBA threatening legal action over the ACA’s intention to publish its own form of contract by updating the old SFA/99 form. The ACA claims that the RIBA forms of agreement leave architects vulnerable in the event of the non-payment of fees. The RIBA alleges that the ACA forms will be an infringement of its copyright. The ACA maintains that the two bodies held joint copyright in the SFA/99’s predecessor, SFA/92.
Associated Link :
29/5/2008
Subject: Cost of Nabucco Pipeline Soars
Description: EU Commitment Still Strong Despite Costs
The cost of the EU-backed Nabucco Pipeline has increased to 7.9 billion euros from 4.6 billion euros, the consortium behind the plan has announced. The European Union wants the pipeline to reduce its dependence on Russian gas supplies. The original cost estimate was based on a 2005 feasibility study, and since then the price of crude has more than doubled, leading to a consequent rise in the cost of steel. However, Managing Director, Reinhard Mitschek, has said that competitiveness and economics of the project, aimed at pumping 31 billion cubic metres of gas via Turkey and the Balkans from 2013, would not be affected because high energy prices meant Nabucco was needed and its transport earnings would be highly profitable. The Nabusso consortium is made up of Austria's OMV , RWE, Hungary's MOL , Turkey's Botas, Bulgaria's Bulgargaz and Romania's Transgaz.
Associated Link :
29/5/2008
Subject: Scott Wilson Acquires Terence Lee Partnership
Description: Acquisition a Step in SW’s Strategy to Increase Metro Capability.
Scott Wilson Group plc, the international design and engineering consultancy, has announced the acquisition of Terrence Lee, the mechanical and electrical building services company for £1.3bn. The Terence Lee Partnership was founded in 1978 and has its headquarters in London. It has been collaborating with Scott Wilson on a number of London Underground projects for a number of years.
Associated Link :
22/5/2008
Subject: New Italian Government to Re-introduce Nuclear Power by 2013
Description: Nuclear Power Will Provide Cheaper More Reliable Power Source
Italian Industry Minister, Claudio Scajola, has told a business lobby group Confindustria conference in Rome that the government has scheduled construction of the first nuclear-powered plants by 2013, when its parliamentary term ends. Mr. Scajola said that only nuclear plants permit the production of large-scale electricity, in a safe way, at competitive costs and respecting the environment. Italy abandoned nuclear facilities more than 20 years ago on the back of the Chernobyl disaster in the former Soviet Union. The vast majority of Italy's electricity is generated by natural gas and fuel oil, which are tied to soaring crude oil prices, making power in the country among the highest in Europe. Italian companies have been complaining their competitiveness is reduced against international peers due to higher energy costs. To encourage more competition in the sector - aimed at reducing prices - the government will cut bureaucracy and red tape, the minister said, and incentive schemes will be introduced to persuade local populations to accept the building of infrastructure.
Associated Link :
22/5/2008
Subject: Zaha Hadid Plans Warsaw skyscraper
Description: Fleur-de-Lys Design
Renowned Anglo-Iraqi architect Zaha Hadid has unveiled plans to build a 240-meter (790-foot) high residential skyscraper in the heart of the Polish capital Warsaw. The design of the proposed skyscraper will be based on a fleur de lys motif. With a total floor space of 101,205 square meters (1.1 million square feet), it will house apartments, a condominium hotel as well as commercial and recreation facilities. Lilium Tower will face Warsaw's landmark Palace of Culture, a Stalinist-era specimen of socialist-realist architecture. Investor Lilium Polska aims to complete the project by 2012, but has as yet to receive all the necessary planning permits.
Associated Link :
22/5/2008
Subject: Balfour Beatty joint venture awarded the $330 million 281 North Toll project in San Antonio, Texas
Description: Contract Adds to $460m-worth of Infrastructure Contracts Already Won
Balfour Beatty has announced that Balfour Beatty Infrastructure Inc, its US civil engineering arm, has been awarded the $330 million design and build contract for the 281 North Toll highway project in joint venture with Fluor by the Alamo Regional Mobility Authority Board of Directors.
The Balfour Beatty joint venture, Cibolo Creek Infrastructure JV (CCI), will be responsible for the construction of two to three new non-toll lanes, beginning in the autumn of 2008. The first phase will involve a stretch from Loop 1604 to Stone Oak Parkway near San Antonio. The second phase involves work between Stone Oak Parkway and the Comal County line. After CCI completes the 7.9 miles of non-toll lanes, it will begin building three new toll lanes in each direction. The project is scheduled for completion 44 months after commencement.
Associated Link :
22/5/2008
Subject: Canadian Real Estate Practice Acquires the Andrews Partnership
Description: Altus Buys Andrews for UK Expansion
The Altus Group, a leading multidisciplinary provider of independent real estate consulting and professional advisory services worldwide has agreed to acquire UK-based cost consultants the Andrews Group.
With a staff of over 1,100, Altus has 31 offices in 23 cities throughout Canada and 6 offices throughout the UK. Altus operates as: Altus Group Research, Valuation and Advisory; Altus Group Cost Consulting; Altus Group Realty Tax Consulting; Altus InSite; Altus Geocom; Altus Geomatics; and Altus Edwin Hill. Altus' clients include banks, financial institutions, governments, pension funds, asset and fund managers, developers and landlords, as well as companies engaged in the oil and gas industry.
Founded in 1991, Andrews is a UK-based Cost Consulting firm with 42 staff in four offices, including Bracknell, Leeds, Southampton and St. Albans. A leader in its field, Andrews offers a comprehensive range of professional services through three primary service lines: Building Surveying; Project Management; and Quantity Surveying, as well as a Health & Safety consulting division. Their clients include commercial, residential and retail owners/developers, as well as pension funds, financial institutions, and also public and government agencies. They have provided consulting and management services on infrastructure projects such as highways, schools and hospitals, as well as factories, retail parks, warehouses, multi-unit buildings, hotels and nursing homes.
The President of the Altus Group, John Fleming, said that Andrews provided a strategic foothold to expand into the UK.
Associated Link :
16/5/2008
Subject: Nottingham to Become First City to Introduce Staff Car Space Levy
Description: Levy will Affect Companies with More than 10 Staff
Nottingham is set to become the first UK city to introduce a workplace parking levy despite fierce protests from local businesses. The council’s decision will mean that every company employing more than ten staff facing a levy of £185 per parking space it provides. The levy is proposed as an alternative to a congestion charge. Some of the cash will be used to finance an extension to the tram system. A survey conducted by the Nottingham Chamber of Commerce last year revealed that 65% of its members would consider moving out of the city before the levy was introduced. The levy is expected to affect about 500 businesses, raising revenue of £5.6m.
Associated Link :
16/5/2008
Subject: Government Announces £244m Towards Metrolink Extension
Description: Total Cost for the Scheme will be £382m
Transport Secretary Ruth Kelly has announced today that people living and commuting in Greater Manchester will soon benefit from extensions to the popular Metrolink tram. This follows the Government pledging £244million towards the £382million total cost of the scheme. By 2012, residents and commuters will be able to use the Metrolink to travel as far as Oldham, Rochdale or Chorlton, as well as benefit from upgrades to the existing network that will enable faster and more frequent services. Greater Manchester Passenger Transport Executive (GMPTE) is also constructing a further extension to the Metrolink network, separately funded, to Droylsden in the east of the city.
Associated Link :
15/5/2008
Subject: Costain Wins Major Felixstowe Container Port Contract
Description: Two and a Half Year Contract
Costain has announced that it has won a contract for the construction of two berths at Felixstowe container port, totalling 730 million in length. The contract, known as Felixstowe South Reconfiguration Phase 1, will enable more of the world's biggest container ships to dock at Britain's largest container port. Costain has carried out a number of contracts for Hutchison Port Holdings at Felixstowe, Thamesport and Freeport, Bahamas.
Associated Link :
15/5/2008
Subject: Airtricity About to Begin Work on £1.3bn Suffolk Wind Farm
Description: Gabbard Wind Farm to be Completed by 2010
It will be the first UK offshore wind farm to be built outside territorial waters and will provide carbon neutral, renewable electricity for more than 415,000 homes, equivalent to the approximate domestic demand of Suffolk. The project is a joint venture between Airtricity and Fluor International. Having successfully completed the development phase and signed the construction contract, Fluor has sold its 50 percent stake in Greater Gabbard Offshore Winds Ltd to SSE for approximately $80 million (£40 million). The Greater Gabbard Offshore Wind Farm Project will feature 140 wind turbines each having a rated capacity of 3.6 MW. The turbines will be supplied by Siemens Wind Power A/S under a separate contract with SSE. Fluor will be responsible for the installation of the turbines which will be mounted on steel monopiles and transition pieces in water depths between 24 and 34 meters. A new electricity substation will be built near Sizewell, Suffolk, UK. Construction will commence in 2009.
Associated Link :
15/5/2008
Subject: Thai Contractors Threaten to Boycott Government Projects
Description: Thirty-day Deadline Given
Contractors in Bangkok have given the Thai government just 30 days to deal with skyrocketing construction material prices or they will stage a strike and refused to bid for government projects. Contractors say that their costs have risen by 10 billion baht (£158,000) during the first quarter of 2008 because of higher prices for materials such as steel and cement. However, many contractors entered into contracts last year when the prices were lower and this was reflected in their tenders. Although state contracts do make provision for fluctuations under a clause known as the “K-factor”, the government only offers a 4% ceiling, significantly less than the materials increases of 20% which are being experienced.
Associated Link :
9/5/2008
Subject: Vinci-led Consortium Wins Contract for Qatar-Bahrain Bridge
Description: Contract Valued at $3bn
A consortium led by the French construction firm Vinci signed an agreement for the design and construction of a 40-km bridge connecting Qatar and Bahrain with the company Qatar-Bahrain Causeway Foundation. The consortium comprises Vinci Construction Grands Projets and QDVC, a joint venture of Vinci (51%) and companies Qatari Diar, Hochtief and CCC. The works will take 51 months, but no commencement date has been announced.
Associated Link :
9/5/2008
Subject: Van Oord And Evelop Join Forces To Invest In Nort West European Wind Farm Projects.
Description: €1.5bn to Be Invested In Four Wind Farms
Van Oord and renewable energy power firm Evelop have agreed to invest up to €1.5bn in four wind farms to be built in the North Sea off the coasts of Belgium and Germany. The agreement makes provision for the construction of the turbine foundations and the electrical systems of the turbines, and builds on the relationship the companies have from jointly working on the Q7 windfarm off the Dutch coast. The €900m Belwind project will be constructed 46 km off the Belgium coast on the Bligh Bank and will involve the laying of electrical cables to the ports of Ostend and Zeebrugge.
The three German offshore windfarms projects are in the early planning phase. They each could involve up to 80 turbines to generate 240 MW-400 MW of power. They could be located 30 km-60 km from the coast, east of the North Frisian Islands.
Evelap is also involved in Scira’s Sheringham Shoal project off eastern England, which is scheduled to come online in late 2011. Norwegian firm Nexans has just won a £19m ($37.7m) contract to supply two 22 km electrical cables for the project for delivery in April 2010.
Associated Link :
9/5/2008
Subject: Scottish Building Standards Agency Launches Consultation on Building Regulations
Description: Consultations Issued on Fire, Safety and Noise
The main focus of the changes are related to sustainable development issues including land contamination, flooding, surface water, ventilation, condensation, solid waste storage and security, to improve life safety of people in and around buildings following the outbreak of fire, encourage innovative design and construction of buildings, promote inclusive design, and to improve assistance to the fire and rescue services, the improved performance of separating construction (supported by enhanced testing arrangements), increased scope to cover non-domestic buildings and also, internal floors and partitions to sleeping accommodation.
Associated Link :
9/5/2008
Subject: Adjudication Service for Home Owners
Description: Decisions to be Given in 21 Days
The RICS and the Federation of Master Builders have joined forces to establish an adjudication service for domestic home owners, who are excluded from the Construction Act Scheme. The RICS will provide a panel of adjudicators to decide issues between house holders and builders. The new scheme will begin in early June, and is a response to a recent incident, where a builder demolished an extension because he could not obtain payment from the householder.
Associated Link :
9/5/2008
Subject: Government Appoints Consultants to Study Barrage Plan
Description: Nine Firms Appointed
The Department for Business, Enterprise and Regulatory Reform has appointed a consortium led by engineering consultancy Parsons Brinckerhoff to study the environmental impact of a proposed tidal energy project in the Severn Estuary. The government says that the proposed Severn Tidal Project could produce up to 5% of the country’s electricity.
Associated Link :
2/5/2008
Subject: Quantity Surveying Services Projects Advertised
Description: This week’s OJEU Notices
The following contracts for quantity surveying or project management services have been advertised:
Queen’s University, Belfast; Haigh Colliery Mining Museum, Whitehaven; Foreign and Commonwealth Office; English Heritage in Northampton; Mount Pleasant Park; Dublin Docklands Development Authority and Anglesey County Council.
Associated Link :
2/5/2008
Subject: Government will Review Costly New York Projects
Description: Governor Wants Affordability Review
New York City's long list of billion-dollar building projects, from a planned new train station to the rebuilding of the World Trade Center, must be reviewed to see if they are still affordable amid a weakening economy, Governor David Paterson has said. The state has a role in approving the projects under review, both because of funding they would receive from the state, city or federal government and the state's role in agencies like the Port Authority of New York and New Jersey, which owns sites including the World Trade Center. When these projects were planned, the revenues and the bonding authority were in place, the governor now wants to be sure they still are. The state will have to close $20 billion of deficits in the next three years, said Paterson, who wants to cut $800 million from the current budget, which is only a few weeks old. Some of the projects on the list to be reviewed are: the Hudson Yards development of commercial and residential towers in west midtown Manhattan, to be built over the state's mass transit agency's rail yards, and the expansion of the nearby Jacob K. Javits Convention Center.
Associated Link :
2/5/2008
Subject: Glasgow Caledonian Adjudication Survey
Description: University Wants Help from Adjudicators
The Adjudication Reporting Centre (ARC) at GCAL is the only organisation who has been collecting data since Statutory Adjudication was introduced in 1998 and as such is a much relied upon source. It is now asking adjudicators to take part in its statistical survey of adjudication by completing a half hour questionnaire. If you are interested in participating, please e-mail info@cdr.uk.com The ARC are hoping as many Adjudicators as possible will respond as it is intending
to host an event in June 2008 to mark 10 years since Statutory Adjudication was introduced. The latest statistics will be launched and all those contributing will be invited to the event.
Associated Link :
2/5/2008
Subject: Balfour Beatty Wins Rail Systems Contract on Gotthard Base Tunnel
Description: Contract Valued at Approximately Euro 250m
Balfour Beatty has announced that, as part of the consortium, Transtec Gotthard, it has been awarded the rail systems work for the Gotthard Base Tunnel in Switzerland by AlpTransit Gotthard AG. The contract is likely to be worth approximately €250 million to Balfour Beatty.
The Transtec Gotthard consotrium comprises Balfour Beatty Rail, Atel Installationstechnik, Alcatel-Lucent and Alpine-Bau Mayreder. The entire project cost is estimated at €1 billion.The Gotthard tunnel will be the longest railway tunnel in the world and will bypass winding mountain routes to establish a direct route for high-speed passenger and heavy freight traffic.
Associated Link :
2/5/2008
Subject: Royal Dutch Shell to Sell Stake in Thames Estuary Wind Power Station
Description: Doubts About Project's Future
The Wall Street Journal is reporting that Royal Dutch Shell says it will sell its stake in the London Array, the planned 341-wind turbine project in the Thames Estuary. The project is a joint venture between Shell, E.On UK and Denmark’s Dong Energy A/S. A spokeswoman for Shell said that the decision was part of its ongoing review of investments, and it would divert the funds to onshore wind projects in America instead.
Whilst E.On has re-affirmed its commitment to the project, it has expressed doubts about the project’s risk. When the project was first announced in 2005, the anticipated cost was £1.5bn; this has now risen to between £2bn and £3bn.
Associated Link :
2/5/2008
Subject: RWE Abandons British Energy Bid
Description: All Interested Parties Must Submit A Final Acquisition Offer By May 9
German utility RWE AG has abandoned its plans for submitting a bid in the upcoming tender for nuclear operator British Energy, after its Swedish partner, Vattenfall, backed out from the deal. RWE's chances for winning the tender have thereby sunk considerably, while its CEO Juergen Grossmann has further said he does not want to get involved in a price war for the UK utility. However, the German group will seek to obtain parts of the company for sale.
British Energy has been having talks with potential investors for several weeks now. The company is considered attractive because it is to play a key role in the construction of new nuclear power plants, which the British government recently announced. The utility operates eight of Britain's ten functioning nuclear plants.
RWE filed a preliminary offer with investment bank Rothschild, like French state-run electricity group EDF and UK Centrica, among others, in order to obtain the right to examine British Energy's balance sheet. The German utility was in talks with Vattenfall for preparing a joint offer, which was to hike the company's chances to win the tender.
Vattenfall CEO Lars Goeran Josefsson, however, has been forced to withdraw from the running for British Energy under pressure from Vattenfall's owner, the Swedish state.
In the meantime, financially strong EDF has emerged as the obvious favourite in the tender.
Associated Link :
28/4/2008
Subject: OPEN FORUM
Description: NEW THREADS
Here are a few threads recently posted on the open forum:
Does the QSi still exist? If so, what is it doing?
Is it time to change the QS’s job title?
Are Project Managers a waste of space?
Is delay analysis rubbish in, rubbish out?
Is QS university training totally irrelevant?
Should the RICS set their own exams?
Is the Bill of Quantity still relevant?
Is it right that the QSi is launching a football?
Isn’t it time to start a Grumpy Old QS corner? There are plenty of us who remember working up in abstracting and building, the Johnny Come Lately adopted cut and shuffle.
Associated Link : www.theqsi.co.uk
25/4/2008
Subject: Court Decides Notice Effective for Section 111 of the Construction Act
Description: Attribution in Notice Sufficient
Aedas Architects argued that the withholding notices issued by Skanska were not effective notice for the purposes of s. 111 of the Housing, Grants, Construction and Regeneration Act 1996 because there was no attribution in any of them, that there was no specification of time or place and the sum often exceeded what was admittedly due. Skanska maintained that precise accuracy was not required because the notices were intended for the construction managers working on the site who were aware of the situation on site. The court found that it could not conclude that Skanska’s defence was bound to fail, and the issue could not be disposed of solely on the counter notices, and Skanska was entitled to explain why they were unable to make any financial attribution against particular terms. The court did, however, go on to say that the documents themselves were “effective” for the purposes of s.111 of the Act. In 6/59- 6/61 sufficient attribution had been made against five of the enumerated grounds. The contract demanded attribution to each ground. It did not ask for any apportionments and the court viewed this as a competent way to proceed by debiting all sums. In referring to “each ground”, the Act states that attribution “to it” must take place. In the court’s view, this was what the counter-notice had done. All the grounds which could be calculated had been and a global figure debited. .
Copyright BLISS 2008.
Associated Link :
25/4/2008
Subject: Court Rejects Notice to Arbitrate as Invalid
Description: Section 14(2) of the Arbitration Act 1996 Applied
A letter send by the Taylor Woodrow’s solicitors to RMD’s legal team did not make it objectively clear that Taylor Woodrow was referring the parties’ dispute to arbitration by implication or otherwise; it was requesting RMD to commence the process for the agreement of an arbitrator. It was not clear that Taylor Woodrow was referring the dispute to an arbitrator, or that it could be implied that the process of agreeing the appointment of an arbitrator had commenced. The letter could not, therefore, be construed as being effective notice for the commencement of arbitration proceedings. .
Copyright BLISS 2008.
Associated Link :
25/4/2008
Subject: Planning Application for £497m Extension to the Docklands Light Railway
Description: Application to be Lodged Next Week
The network will be extended from Gallions Reach in Beckton in the east of the capital to serve the proposed Barking Riverside scheme. This is flagged in the London Plan as a location for major housing and job growth.
The application will be made under the Transport and Works Act 1992 and will be submitted direct to transport secretary Ruth Kelly. A public inquiry into the plans is expected to be held this autumn, with a decision likely by next summer.
The extension aims to enable planned growth in housing and employment in the Thames Gateway sub-region by unlocking sites for development and bringing homes, jobs, businesses and facilities into the area.
It will provide links to the city centre, key employment and residential centres and interchange opportunities with the planned East London Transit services and existing rail and bus routes.
Dagenham is viewed a key location in the Thames Gateway, but has few transport links at present. It is hoped that extension will provide potential developers with the confidence to invest there.'
The third phase of consultation on the plans, which include an outline of the proposed route, began last November. Construction is not expected to begin until 2013 or 2014, with the completion date likely to be between 2017 and 2018. .
Copyright BLISS 2008.
Associated Link :
25/4/2008
Subject: Glasgow’s £842m New Southern Hospital to be entirely publicly funded.
Description: Government and NHS Greater Glasgow to Foot the Bill
The new hospital will provide 1,349 beds on an existing hospital site and has been designed in association with the Carbon Trust to try to ensure the sustainability of both building and transport links. .
Copyright BLISS 2008.
Associated Link :
25/4/2008
Subject: Acciona to Build Suspension Bridge in Poland
Description: One of the World’s Largest Suspension Bridges to be Built over the River Odra
Spanish building-to-energy group Acciona said on Thursday it had been chosen to build one of the world's largest suspension bridges, over the river Odra in Poland. It will take 30 months to build the bridge with its Polish subsidiary at a cost of 166 million euros ($264.7 million). The bridge will measure a total of 1.75 km in three parts and form part of a ring road around Wroclaw in west Poland. .
Copyright BLISS 2008.
Associated Link :
25/4/2008
Subject: Bradwell May Get Nuclear Power Station
Description: British Energy Seeks Residents’ Views
Although the chances of a plant being built are 10 years away, the chances of one being built in Bradwell have increased. British Energy views it as an important site, and is working with the council to understand the local issues such as housing, transport and jobs.
Copyright BLISS 2008.
Associated Link :
25/4/2008
Subject: German Parliament Building Design Shows How to Save the Plant without Additional Cost
Description: Erneuerbare-Energien-Gesetz (EEG) is the Centre Piece of Country’s Climate Change Programme
The German Parliament building has managed to reduce greenhouse gas emissions with additional cost by clever design. The building makes the best use of natural light and heat, and uses biofuel generators. Excess heat is stored under the building to be used during cold periods. Cold from the outside is stored in winter to cool the building as required.
Copyright BLISS 2008.
Associated Link :
22/4/2008
Subject: Continuing Professional Development
Description: New CPD Modules
The QSi has a number of CPD Modules now on the website. Why not log into the QSi and see what is available
Associated Link :
22/4/2008
Subject: Qsi Open Forum
Description: Why not log onto the open forum and comment on the latest threads.
Here are a few threads recently posted on the open forum:
Does the QSi still exist? If so, what is it doing?
Is it time to change the QS’s job title?
Are Project Managers a waste of space?
Is delay analysis rubbish in, rubbish out?
Is QS university training totally irrelevant?
Should the RICS set their own exams?
Is the Bill of Quantity still relevant?
Is it right that the QSi is launching a football?
Isn’t it time to start a Grumpy Old QS corner? There are plenty of us who remember working up in abstracting and building, the Johnny Come Lately adopted cut and shuffle.
Associated Link :
18/4/2008
Subject: B73bn plan to expand airport; Suvarnabhumi to keep on growing until 2013
Description: Airport Plagued With Irregularities and Operational Problems When It Opened In Late September 2006
Plans to expand the 1.5-year-old airport were raised at yesterday's meeting between Transport Minister Santi Prompat and representatives from Airports of Thailand (AoT) and the Civil Aviation Department. At least 2 projects out of the 10 proposed under the scheme will be implemented in 2008. These are the construction of the third runway and hiring of the Project Management Consultant group (PMC). The other projects which include the construction of an automated people mover, car park and a noise pollution reduction scheme will be implemented over five years. The meeting also agreed that construction of a domestic terminal at Suvarnabhumi should proceed without waiting for the second phase. Copyright BLISS, Building Law Information Subscriber Service 2008.
Associated Link :
18/4/2008
Subject: Mediation Documents Should Remain Confidential
Description: Applicant Sought to Use Mediation Documents in Third Party Action
Looking at previous authority and the Civil Procedure Rules, it was considered public policy to encourage parties to resolve their disputes by mediation. The court should be slow to find exceptions to the without prejudice rule. The defendant could not bring itself within exception in Muller v Linsley & Mortimer, [1996] PNLR 74 to the without prejudice rule. In Muller the plaintiffs had been in dispute with shareholders of a company. Settlement was agreed. They then claimed damages for negligence from their former solicitors. The plaintiffs asserted that the settlement had been a reasonable attempt to mitigate their loss. The defendant solicitors asserted that it was not and applied for discovery of the documents relating to it. The Court of Appeal had ordered disclosure, referring to the two justifications for the without prejudice rule i.e. public policy to encourage parties to settle disputes and implied agreement about what are commonly understood to be the consequences of negotiating on a without prejudice basis. The rationale in the Muller case was that the issue was unconnected with the veracity of anything stated in the negotiation, and, hence, fell outside the principle of public policy protecting without prejudice communications. In the present case, it appeared that that would not apply, because the truth or falsity of what was argued in the mediation would be or might be (subject to relevance) an issue in the litigation. Copyright BLISS, Building Law Information Subscriber Service 2008.
Associated Link :
18/4/2008
Subject: Ireland to Continue Using PPPs for Schools Despite Problems with Pilot
Description: “Lessons have been Learned”
The Irish Department of Education and Science is to press ahead with the construction of schools under the Public Private Partnership (PPP) model, despite concerns about the way in which a previous €150 million five-school pilot project was managed. Four new PPP schools have progressed to the planning stage and should be available by the end of 2008. The Public Accounts Committee was told that the school population was expected to increase significantly over the next six years. In 2004, a report by the Comptroller and Auditor General, John Purcell, found that the five schools involved in the pilot project, which are expected to cost €283 million including VAT over 25 years - or €150 million in today's money - could be provided more cheaply if the State built them. However, a review of the pilot projects has led to a new system of reporting being introduced to assess the cost of providing the schools, and to allow for deductions to be made from payments to the PPP contractor in the event of any failures.
Copyright BLISS, Building Law Information Subscriber Service 2008.
Associated Link :
15/4/2008
Subject: ARTICLES FOR QS EYE
Description: A new edition of the QS Eye is being prepared
Attention all Members
Please let us have your articles for the new QS Eye magazine as soon as possible
emai: suzanne cash@hartevents.co.uk
ASAP
Associated Link :
15/4/2008
Subject: WEBSITE UPDATE
Description: New Public Forum / Advertising available
Attention all Members
The Following amendments have been made to the QSi Website:
* New Public Forum Now Available.
* Why not advertise on the QSi website.
Associated Link : http:/theqsi.co.uk
11/4/2008
Subject: New Orleans Recovery Drive Hopes to Tap China Firms
Description: Mayor in talks with Shanghai Construction Company
The mayor of New Orleans, Ray Nagin, has been in talks with the Shanghai Construction Company to participate in the multi-billion dollar recovery of the area. Mr. Nagin also said that his city welcomed outside investors in a $1 billion expansion of its port, the eighth-largest in the United States, but he had not talked to any Chinese port operators that might be interested in the project. The city has spent $6 billion to $7 billion rebuilding after the devastation of Hurricane Katrina in August 2005, when Hurricane Katrina flooded 80% of the city. The city has secured half of the $10 billion in additional financing it needs for full restoration.
Copyright: BLISS 2008.
Associated Link :
11/4/2008
Subject: Olympic Delivery Authority Sets up Independent Dispute Avoidance Panel
Description: ODA Wants to Avoid Disputes to Exclude Delays on Projects
The Independent Dispute Avoidance Panel (IPA) will be the first port of call for the resolution of any disputes which may arise. The panel will have 10 members and be chaired by Dr. Martin Barnes, the author if the New Engineering Contract, which is to be used to deliver the construction programme. If the Panel fails to resolve the dispute, it will be referred to an adjudication panel of 12. After that, the Technology and Construction Court will be called upon to make a determination. The ODA is to run free training courses for contractors and subcontractors who are unfamiliar with the contract.
Copyright: BLISS 2008.
Associated Link :
11/4/2008
Subject: Centrica Interested in Nuclear Decommissioning Authority Sites for New Power Stations
Description: Other Companies have also Expressed Interest
Thursday was the closing date for a month-long process launched by the NDA to gauge interest from parties wishing to use its sites across the United Kingdom, as part of the government's push to build more nuclear power. An industry source said Centrica has expressed interest in the NDA sites. The UK-based energy provider is also in talks with British Energy Group Plc. about possible partnerships to develop more nuclear power in the UK, although a Centrica company spokesman said it is too early to comment on NDA discussions. The NDA owns 17 sites across the UK.
Copyright: BLISS 2008.
Associated Link :
11/4/2008
Subject: Cambridge University Hospitals NHS Trust issues Prior Information Notice for QS Services
Description: New Theatre Extension at Addenbrookes Hospital Proposed
Cambridge University Hospitals Foundation NHS Trust is has issued a prior information notice for a £6.6m new theatre extension at Addenbrookes Hospital. Appointment of the successful firm is planned for September 2008. Employer’s Agent services may also be required.
Copyright: BLISS 2008.
Associated Link :
11/4/2008
Subject: Singapore Supreme Court Rules on Recovery of Financing Charges
Description: Developer Incurred Interest on Loans Because of Delays to Hotel Development
The Singapore High Court has has concluded that financing charges incurred due to project delays can be recovered. Robertson Quay Investment’s development, the Gallery Hotel was delayed because the structural engineers failed to give the contractors the up-to-date version of the drawings. There were consequent structural problems which delayed completion of the project. Robertson claimed damages for loss of rental plus interest on loans made by shareholders. The Court found that claims for such damages was not too remote. Robertson’s project had been a commercial one, and a substantial one as evidenced by the fact that the development comprised a 10-storey hotel plus car parks and adjoining commercial units.
In the circumstances, the respondents must be imputed with the knowledge that that a delay in completion would result in RQI incurring additional interest on the loans, and such additional interest, if proved, would be recoverable under the first limb in Hadley v Baxendale (1854) 9 Ex 341; 156 ER 145. However, there had to be proof of causation. A claimant could not simply make a claim for damages without placing before the court sufficient evidence of the loss it has suffered even if it was otherwise entitled in principle to recover damages. On the other hand, where a claimant has attempted its level best to prove its loss and the evidence is cogent, the court should allow it to recover the damages claimed. This Robertson had failed to do.
Copyright: BLISS 2008.
Associated Link :
11/4/2008
Subject: Skanska Wins £150m London Office Contract
Description: Project Includes 14-Storey Office and Retail Space
Skanska has won a £150m to build a large office building in the city of London.. The customer is the British real estate development company Minerva The St. Botolphs project involves a new 14 storey office and retail development that will provide approximately 52,000 square metres of high quality accommodation. The building will have a characteristic design with lightly rounded corners. Preparatory work, including ground work and piling, has begun. The project is planned for completion for 2010. St. Botolphs is the second project that Skanska is currently constructing for Minerva, following the award of The Walbrook, a $296 million project, also in the city of London in 2007.
Copyright: BLISS 2008.
Associated Link :
4/4/2008
Subject: CDM Co-Ordinator Role Threatened by Skill Shortages
Description: Employers May Not be Able to Recruit Sufficient Staff
Employers might be unable to recruit enough suitable staff to fill the newly created CDM coordinator role. Atkins CDM team leader Andrew Stevens said the firm was having difficulty recruiting for the coordinator positions, as there aren’t enough people applying. There was also a warning that it was also likely that those undertaking the new role could be rendered impotent by clients and design teams uncommitted to health and safety. .
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
4/4/2008
Subject: QSs Underestimate Car Park Costs
Description: Fire Service to Seek Compensation
A report to the Notts Fire Authority's finance and resources committee says the "serious error" occurred when the costs of the tarmac surfacing for the new Hassocks Lane station were incorrectly calculated by quantity surveyors. It states: "Consequently, the contractor's tender was under priced by some £75,000 and there is no option but to proceed with the correct specifications at the true cost." The fire service will be seeking compensation from the surveyors, but it says the overall cost of the project has not been revised as there is sufficient contingency built in. The new Beeston station is due to open in late 2008 and will replace the existing Beeston and Dunkirk fire stations. It will be the first brand new fire station to be built in Notts for 20 years.
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
4/4/2008
Subject: Housing Minister Announces Potential Locations for Eco-Towns
Description: Locations will Go Forward to Next Stage
The Housing Minister, Caroline Flint, has announced 15 potential locations for the government’s eco town initiative, which is designed to fill the shortfall in housing. Publication of the shortlisted locations also reveals that they make significant use of previously developed brownfield land including former MoD land, military depots, disused airfields and former mining pits and industrial sites. The shortlisted locations address regional priorities such as a severe shortage of suitable housing (such as Elsenham and Ford) or the regeneration of former industrial areas (Marston Vale and New Marston).
The announcement of the shortlist of potential locations is only the first stage and they will now be consulted on with the public, local authorities and wider stakeholders. Bidders who have cleared the first hurdle will face considerably tougher tests ahead if they want to become eco-towns and will need to improve proposals still further.
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
4/4/2008
Subject: Baqus Looks to Expand by Acquisition
Description: Flotation on the AIM Gives Baqus a £1.8m War Chest
Baqus, the consultancy formed by the merger of Boxall Sayer, Denley King and Fletcher McNeill, says it is on the verge of another major acquisition. The company, which floated on the AIM in December 2007 says it’s goal is to increase its turnover to £20m within four years.
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
4/4/2008
Subject: Vinci and Hochtief Joint Venture Lays Foundation for $470m A4 Motorway
Description: Consortium Will Also Run the Motorway under a 30-yar PPP Concession
Concession operator Via Solutions Thüringen GmbH & Co.KG, a company formed on a 50/50 basis by VINCI Concessions and Hochtief PPP Solutions, has just launched the construction of the A4 motorway, linking the towns of Gotha and Eisenach in the state of Thuringia, in the presence of the German Minister for Transport. The works involve the design, construction and upgrading of a 45 km stretch of motorway. Valued at 300 million euros, this project will make a major contribution to easing congestion on one of the most important motorway routes crossing Germany from west to east. Copyright:Building Law Information Subscriber Service 2008.
Associated Link :
4/4/2008
Subject: Trett Consulting Bought by Grontmij
Description: Company Will Continue to Trade under Existing Brand
The European engineering consultancy, Grontmij, has announced that it has bought Trett Consulting in order to strengthen its presence in the consultancy with expertise in dispute resolution and contractual advice. Trett has 18 offices across the world with a staff of 120, adding to Grontmij’s existing workforce of 1,070.
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
4/4/2008
Subject: Company Cannot be a Residential Occupier under the Construction Act
Description: A “Real Person” Must Occupy the House of Flat
The Technology and Construction Court has ruled that a company cannot be a “residential occupier2 for the purposes of the Housing, Grants, Construction and Regeneration Act 1996. The claimant, a director of a development company, had challenged the adjudicator’s jurisdiction to make an award against it in connection with work undertaken on his own house and that of his father. However, it had been the company who had contracted with the builder, not the director individually, and, consequently, the adjudicator had had jurisdiction to decide on the dispute.
Copyright:Building Law Information Subscriber Service 2008.
Associated Link :
28/3/2008
Subject: Replacing Dublin Port Tunnel Fans to Cost Contractor €850,000
Description: National Roads Authority Says Tunnel is Safe
The turbo-jet fans used to clean the air in the Dublin Port Tunnel are being replaced at a cost of €850,000, only just over one year after they were installed. Whilst the replacement cost is being borne by the contractor, Nishimatsu Mowlem-Irishenco, it is denying liability for other alleged faults, including the €30m computer system which is failing to control the fans. The National Roads Authority has assured drivers that, despite, the problems, the tunnel is safe. Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
28/3/2008
Subject: Cyril Sweett Buys Australian Project Management Firm
Description: Acquisition Designed to Aid Overseas Expansion
Cyril Sweett has bough Australian project management company Burns Bridge in a £5m deal. Burns Bridge has headquarters in Melbourne as well as offices in Singapore, the UAE and Fiji. The Singapore office will provide Cyril Sweett with a strategic base to grow its Asia-Pacific business. . Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
27/3/2008
Subject: Liverpool to Spend £107m on City Roads Plan
Description: Cycle Network and Street Lighting also to be Improved
A three-year £107m programme for Liverpool’s roads looks set to get the go-ahead tomorrow. The city council's executive board is being asked to approve plans which include starting major works on the long-awaited bypass linking West Derby Street and Islington. The original plans for the bypass were thrown into doubt when plans for the building of a new Royal hospital appeared to clash with the planned route. In addition, the council be asked to give the go-ahead to the £12.5m road which will create a much improved route between the end of the M62 at Edge Lane and the centre. It is hoped that funding will be made from the the European Regional Development Fund, the Northwest Regional Development Agency and other bodies. . Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
27/3/2008
Subject: Bovis end Lease to Impose Waste Reduction Plan on Subcontractors
Description: Targets will be included in all contracts
Bovis Lend Lease says it will incorporate waste reduction targets in all its subcontract forms with the intention of reducing the amount of waste it sends to landfill by 70% by 2010. Subcontractors will no longer be able to include waste in their bid prices. The company wants to be seen as a green firm internationally, and the cost savings will run into thousands of pounds. Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
27/3/2008
Subject: Focus Housing Advertises for Consultancy Services
Description: Irish Housing Association Seeks Quantity Surveyors
Focus Housing Association is advertising for an architect and quantity surveyor and Project Supervisor for a Services Centre, Offices and 21 Apartments. Chartered Architect, Chartered Quantity Surveyor and Project Supervisor for the Design Process. The winners will provide full professional services to carry project forward from Planning Permission Stage through detailed design, tender documentation, competitively tendering works as per Public Procurement requirements, cost control, awarding of contract, supervision of works, handover at practical completion stage and issuing of certificates of compliance with Building Regulation and Planning Permission upon issuing of final certificate. This project will subject to the new Government Form of Contract. This is not a competition for a single integrated team. Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
27/3/2008
Subject: Sabban Property Investments Launches Unique Internship Program in Partnership with Birmingham City University
Description: Students Will Get a One-Year Paid Internship in Qatar
Sabban Property Investments (SPI) has announced the launch of a unique internship program in partnership with UK-based Birmingham City University (BCU), which will involve students in the construction of the Sabban Towers. Six international university students vying for a one-year paid internship in Qatar will put into practice the theory of construction and planning in a 12-day training programme at the construction site, where they are expected to gain a broader understanding of the regional property development landscape. After an intensive course in the core areas of construction, real estate and planning development, the two most outstanding students will be awarded the coveted remunerated work placement and join the construction experts working on the project. This work placement programme, which we have undertaken through our partnership with Birmingham City University, is a part of SPI's Corporate Social Responsibility policy to further our involvement in the development of the education sector by nurturing talent through experience. .Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
27/3/2008
Subject: Plans for Munich Transrapid Hit the Buffers
Description: Siemens Seeks Partners to Take the Project Forward
Germany abandoned plans to build a flagship high-speed rail link between the Bavarian capital Munich and its airport because of spiralling costs. The Transrapid, one of the world's fastest trains, was developed over the last three decades by German engineers at Siemens and ThyssenKrupp but so far the technology has been used commercially only in China. Transport Minister Wolfgang Tiefensee said that the estimated the cost of building the link would be as much as 3.4 billion euros ($5.37 billion) compared with the 1.85 billion euros originally earmarked, mainly due to the expense of building the track. Construction group Hochtief had led the consortium. Deutsche Bahn, Munich airport and the European Union were also involved, plus Siemens and ThyssenKrupp. However, Siemens’ Chief Executive Peter Loescher said that the German engineering company was in talks with various companies worldwide about possible interest in the high-speed Transrapid rail project. .Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
27/3/2008
Subject: Centrica and GDF Consider New UK Offshore Gas Storage
Description: Plans Intended to Ensure Security of Supply
Britain’s Centrica and Gaz de France announced on Thursday that they are studying building the UK’s first offshore gas storage facility for over 25 years. Centrica, which owns the UK’s only existing offshore gas storage site, Rough, located under the North Sea, is looking at converting the Bains gas field in the East Irish Sea into a seasonal storage facility about a fifth of the size of Rough. As the UK becomes more reliant on as imports and the North Sea fields capacity declines, this is being viewed as a way of increasing the security of supply. No final decision will be taken until 2009.Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
25/3/2008
Subject: Cyril Sweett Buys Nisbet Project Safety for £5.9m
Description: Acquisition Will Strengthen Sweet’s Regional Presence
Cyril Sweett announced Tuesday that Cyril Sweett Limited its wholly owned subsidiary has agreed to acquire the trade, assets and goodwill of Nisbet LLP, together with the entire share capital of Nisbet Project Safety Limited, for a total consideration of Nisbet Project Safety £5.9 million. Nisbet has 12 Partners and 78 staff providing quantity surveying, project management and health and safety services. Nisbet's offices are located in the Midlands, London, the South and South-West of England, hence the acquisition will further strengthen Cyril Sweett's existing diverse regional office network in the U.K.
Nisbet has an impressive track record on fee income and profits growth, and its strong order book provides high visibility of earnings. Nisbet leverages its reputation to win work through referrals and grow its contracted order book. Commenting on the acquisition, Dean Webster, Chief Executive Officer, Cyril Sweett Group said: "We have always had a very high regard for Nisbet, particularly the quality of its people, the quality of the work they do and the range of clients they serve. We are therefore delighted to welcome Nisbet's experienced management team and employees to the Group. The quality of Nisbet's team is reflected in the strong track record of project wins, repeat work and referrals.
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
25/3/2008
Subject: Currie & Brown in £20m Middle East Expansion
Description: C&B Wins Major Infrastructure Project for Abu Dhabi Formula One Grand Prix.
The Middle East is experiencing a massive construction boom. InterContinental hotels group, the world's biggest hotel company by number of rooms, has already said it will build several hotels under its brands in Abu Dhabi close to the race track.
Andrew Loudon, Currie & Brown's executive director and director for Scotland, said that he expects to grow the business in the Middle East by 15 per cent next year. He said: "It's a massive contract for us. We have been appointed by the Abu Dhabi-based real estate developer Aldar, to provide cost management services for the development of seven 'race-day' hotels overlooking the circuit.
"We are one of the few firms in the region with the scale and track record to take on a project of this size. The world will be watching us as we count down to next year so we have to make sure we come in on time and budget."
Loudon said that he had set up a 16-strong office in the region to oversee the planning and management of the two-year contract at Yas Island, which is one of Abu Dhabi's largest natural islands and is expected to become a world-class shopping and leisure destination, with more than 300,000 square metres of retail development planned.
As well as hosting the Grand Prix in 2009, Yas Island will host the world's first Ferrari World, including a Ferrari-themed park, museum and theatre.
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
25/3/2008
Subject: Belgian Wind Farm Gets Go-Ahead
Description: Farm Will have 66 Turbines
Evelop Belgium has received construction and operating permits for the 330-MW, $850 million-plus Belwind offshore wind farm, the company said February 20. The wind farm is to be built 46-km offshore on Bligh Bank. The park will be built at a sea depth of 20-35 metres and the turbines will be installed over a 35-km sq area. The application was based on 66 turbines of 5 MW each.
Evelop has a development portfolio of more than 6,000 MW and is part of Econcern. In December 2007 one of Evelop's biggest projects, the Dutch offshore wind farm Q7 (120 MW), started delivering power for the first time. Off the eastern English coast – in the British 12-mile zone – Evelop is developing a 315-MW Sheringham Shoal wind farm with StatoilHydro (via 50/50 joint venture Scira Offshore Energy Ltd), with full approvals and financial agreement planned for 2008/2009. In Germany, Evelop is developing the 'Gode Wind I' project, in cooperation with Plambeck Neue Energien.
Belwind is one of three major offshore wind projects off the Belgian coast. C-Power began construction of the first phase of its 300-MW project last year, while Eldepasco obtained its offshore concession for a site 35-km offshore in June 2006 and is waiting for operating and construction permits. Eldepasco was formally set up as a company in December 2007. It is a joint venture of Aspiravi, Depret, Colruyt and Electrawinds. Its project envisages around 30 5-MW turbines.
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
25/3/2008
Subject: Sheffield’s Roads Get £663.8m Private Finance Initiative improvement Package.
Description: Funding Will Allow Improvements and Upgrades over Next 25 Years
The Sheffield scheme consists of approximately 1,950 kilometres of road made up of principal roads, non-principal roads and unclassified roads as well as 69,000 street lights. Sheffield City Council will now draw up an Outline Business Case with work scheduled to start in 2011
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
25/3/2008
Subject: Government Proposes Changes to Building Regulations
Description: Consultation Paper Published
The way in which the Building Regulations will be updated will be revolutionised if the proposals contained in a Department for Communities and Local Government consultation paper are adopted. Some of the changes will be:
The Regulations will be revised on fixed dates at three-yearly intervals;
Changes can be made outside the time framework in exceptional circumstances;
Statutory inspection stages will be abolished;
Councils' building control departments will not be scrapped;
Local authorities will be empowered to stop dangerous jobs.
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
25/3/2008
Subject: Paris Airport's Terminal 2E Re-Opens
Description: First passengers Will Use Terminal on 30 March
Four years after its roof caved in, killing four people, the boarding area at Paris airport's terminal 2E is reopening following a 150 million euro ($232 million) rebuilding project. A 30-metre section of the original concrete roof collapsed in May 2004, just 11 months after 2E was opened. French judges are still trying to find out what caused the accident. The redesigned building preserves the original elliptical or squashed cylinder shape pioneered by Andreu, but has been redesigned from the main floor upwards to bring in more light. The rebuild is seen as a why of challenging Heathrow’s status as Europe’s leading passenger hub.
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
25/3/2008
Subject: Serco Wins £400m Middle East Contract
Description: British Company will Operate and Maintain Urban Railway System
British support services firm Serco Group won a contract to operate and maintain the first two lines of Dubai's urban railway system, Dubai's Roads & Transport Authority said on Tuesday. Serco announced in June that it ha been selected as preferred bidder for the £400m contract, which will run for 10 years.
Dubai's first metro line is due to open next year and the second in 2010, with the two lines covering 76 kilometres (47.22 miles) and expected to carry 200 million passengers per year.
Copyright: Building Law Information Subscriber Service 2008.
Associated Link :
13/3/2008
Subject: Specialist Contractors Suffer from Payment Delays
Description: No Improvement in Payment Times
The latest National Specialist Contractors Council figures reveal that over a third of specialist subcontractors are having to wait between 60 and 90 days for payment, as house builders and main contractors hang onto cash for as long as possible.
Associated Link :
13/3/2008
Subject: Interserve Beats Expectations
Description: Preferred Bidder for Major Contracts
Interserve PLC posted a 26.3% increase in its full-year headline profit, beating analysts' expectations, and said it has won contracts in the UK and the Middle East with a combined value of more than £200m. The services, maintenance and building group said for the year to Dec 31, 2007, its pretax profit before one-off items and amortisation rose to £73.4m from £58.1m last year. Revenue grew 23.4% to £1.74bn from £1.41bn the previous year, while pretax profit surged to £69.3m from £15.1m a year ago. The company is recommending an increased final dividend of 11.2 pence, bringing the total dividend for the year to 16.2 pence, up 5.2% from 15.4 pence in 2006. Interserve said it has been chosen as the preferred bidder on a five-year contract with the Home Office, worth over £100m and which can be extended for an additional two years, for the provision of facilities management services throughout the UK. It has also secured a spot with three other companies on the Home Office's Fit-Out and Refurbishment framework agreement, with an overall potential value of £200m. The company also said its United Arab Emirates associate company has won a £120m contract, of which Interserve's share is worth £60m to build the infrastructure for the Al Furjan development in Dubai.
Associated Link :
13/3/2008
Subject: Coventry Masterplan Gets Under Way
Description: Public Consultation Launched
International architects The Jerde Partnership have signed an agreement with a partnership of Coventry City Council and property owners Modus, Morley and Coventry Urban Regeneration Ltd after winning an international competition for the re-design of Coventry City Centre. The masterplan will look at ways of linking the city centre together, encouraging local and individual retailers, as well as possible large scale demolition which will see a major transformation of the central core of the city. The partnership has already launched a major consultation with local people which will be used by Jerde in its work.
Associated Link :
13/3/2008
Subject: Wembley Trial Looks Set to be Extended
Description: Multiplex Accuses Mott Macdonald of Breaches of Contract
Multiplex, Cleveland Bridge and the trial judge all predict the second trial in their long-running will be extended beyond the scheduled eight weeks. Mr. Justice Jackson has admitted that it will be difficult to assess the final sums due to each. In a separate development, Multiplex, is preparing the biggest ever UK construction claim against structural engineers Mott MacDonald, alleging many breaches of contract. It has sent Mott MacDonald a 400 page pre-action protocol letter of claim, seeking payment of nearly £253m. The contractor claims that Mott MacDonald was responsible for the delay of nearly two years on the project.
Associated Link :
13/3/2008
Subject: $1.68 Billion Power Plant Contract Signed
Description: One of Two Million Dollar Contracts Signed
Germany's Siemens, South Korea's Doosan, and France's Alstom have signed a $1.68 bullion contract for the construction of the M-Station in Dubai's Jebel Ali area. The M-Station will comprise six Siemens gas turbines, six Doosan heat recovery steam generators, and three Alstom steam turbines, producing approximately 2,000MW upon completion in June 2010. Its desalination capacity will be 17.5 million gallons of water per day. A US$222-million contract was also signed for the construction of two 400/132-kV substations in Barsha and Nad al-Sheba, due to be completed by late 2009, while an 400/132-kV transformer station in Techno Park will supply the industrial zone, Dubai Industrial City, Jebel Ali, and Airport City with electricity from February 2010.
Associated Link :
13/3/2008
Subject: Metronet Allegations of Fraudulent Contract Awards
Description: Subcontractor not Qualified for the Work
The Evening Standard is reporting that Ed Maloney, a senior Metronet manager involved in awarding the electrical, fire alarm and refurbishment contracts to Lanes Group, has a private business relationship with Bruce Crompton, a main board director of Lanes. Lanes is not registered with any of the electrical certification bodies. Mr. Maloney instructed his quantity surveyor to place the contracts with Lanes, which trades principally as drain cleaners. The matter is now under investigation by the British Transport Police.
Associated Link :
13/3/2008
Subject: Singapore Could Announce Cruise Terminal Winner Next Month
Description: Project to be Completed by 2010
The International Cruise Terminal at Marina South will soon start taking shape. The Singapore Tourism Board (STB) could reveal by next month exactly who has been awarded the tender for engineering work on the terminal and who will be in charge of architectural design.
Engineering proposals were submitted by Jurong Consultants, Surbana Corporation, Maunsell & Partners and Parsons Brinckerhoff, the STB said. Meanwhile, three consortia comprising BEA International and CPG Consultants; Bermello Ajamil and RSP Architects and Engineers; and DMJM Design and DP Architects had put forward proposals for architectural design. Each consortia tied a Singapore firm with 'an internationally renowned firm with notable cruise terminal planning experience', said STB. A firm completion date of 2010 has been announced.
Associated Link :
7/3/2008
Subject: Balfour Beatty Plans Greater Growth in the USA
Description: Better Market than the Middle East
Announcing pre-tax profits of £201m, Balfour Beatty says that it is planning a growth in turnover in the USA from 25% to 40%. The contractor said that the US market was better suited to its model is better suited to the more mature steady market in America. It also announced four contract wins worth £607m there.
Associated Link :
7/3/2008
Subject: Rok Aims to Double Turnover in the North East
Description: Purchase of S. Harrison Puts Contractor on Track
Rok is aiming for significant growth in the North East and is hoping to almost double its £59m turnover in the region by next year. The firm's North East operations, which employs 278 workers at a site in the Walkergate area of Newcastle, saw its turnover grow from £47m to £59m last year and is confident it can hit £109m by 2009. The impressive predictions follow the purchase of the construction arm of the S. Harrison group in North Yorkshire last September, which increased Rok's total North East workforce to 358.
Exeter-based Rok is also confident that its current projects in the North East will help it hit its targets, including the £7.8m refurbishment of the Waygood arts venue in Newcastle city centre and the £1.6m transformation of a visitors centre in Sedgefield's Hardwick Park. Mitchell Smith, regional director at Rok in the North East, said: "By the time we reach 2009, it will be more than a year since we bought part of S Harrison and this will show in the dramatic increase in our turnover. We also have a number of exciting projects that we are currently working on that will ensure we continue this growth and that we are protected from the credit crunch."
Rok's turnover figures for the region reflect its wider performance in the UK, with yesterday's company results showing a record turnover for 2007 of just over £950m, up from £689m in the previous year. Operating profit was also up from £25.3m to just over £34m, while the company's order book was up 17% at £610m.
Associated Link :
7/3/2008
Subject: Taylor Wimpey Declares Loss
Description: Loss of £19.5m in 2007, Compared with £406m Profit in 2006
The disastrous state of the US property market has been partly blamed as Taylor Wimpey had to write down the value of its land bank and building projects by £283m. The company sold 25% fewer homes in America last year. Taylor Wimpey's chief executive said he still believed the US would be an important market for the company in the longer term; nevertheless, the company has halved its exposure to the region, which now represents 15%of its land bank. The company was also affected by the declining fortunes of its Spanish business, where profits fell by two-thirds to just under £8m, as expatriate demand for new homes slowed. The company also wrote down the value of its Spanish projects by around £6m. Performance in the UK was better, despite a slowdown in the housing market during the second half of the year. While the number of completed sales for the year was down 6 per cent on 2006, the company increased profits on its UK business by 14 per cent to £608.5m, thanks to improved margins.
Associated Link :
7/3/2008
Subject: Oxford-Milton Keynes Rail Link Back on Track
Description: Work Could Begin in 2009
Work on a rail link between Oxford and Milton Keynes could begin next year, with a new study signalling the start of detailed construction planning. The link holds out the promise of 12-minute train journey times between Oxford and Bicester and 35-minute trips between Oxford and Milton Keynes.
The consortium behind the plan says the scheme linking Oxford to Milton Keynes, Bedford and Aylesbury is on track to become operational by 2012. But the estimated cost of the scheme, originally put at £130m, has risen to £190m, going to £228m if a spur to Aylesbury is included.
A new report commissioned by the East West Rail Consortium, made up of councils and development agencies, has backed the case for a new network of railway lines and train services. It means the long-awaited project now goes on to the 'stage four phase', which will involve producing detailed construction and operations management plans and rail infrastructure designs. This investigation will cost £2m and continue until the end of the year.
Adrian Saunders, Oxfordshire County Council's rail development officer, said: "The work will focus on looking at the condition of existing track, disused embankments and bridges. Effectively it will be a full engineering assessment looking at the whole route, and the need for upgrading or rebuilding. At its conclusion, the scheme will be ready to go to tender for implementation. There is a lot of support coming from the Department of Transport and Network Rail to get this project moving. Construction work could start by the end of 2009. Momentum is building rapidly." Rail experts will also focus on stations along the route, to see if improvement work is needed or new stations required.
Associated Link :
7/3/2008
Subject: Liverpool University Advertises QS Contract
Description: New Laboratory to be Built
The University of Liverpool has issued an OJEU Notice seeking quantity surveying services in connection with the construction of a new £12m laboratory suite to be completed by 2010.
Associated Link :
7/3/2008
Subject: Watkins v Jones Maidment Wilson (A Firm); 4 March 2008
Description: Claim for Negligent Advice Statute-Barred
In 1997, the claimants instructed the defendant solicitors to act for them in connection with the acquisition of a site in Rochdale, upon which they wished to build a house. The claimants alleged that the defendants gave them negligent advice leading to the execution of a building agreement on 3 April 1998 negligent advice leading to the loss of rights under clause 21 (ii) of that agreement, which on one view of the facts if given was given before 26 August 1998.
Any cause of action in respect of that advice accrued before 26 August 1998 and, hence, became statute-barred prior to 26 August 2004 when the present proceedings were issued. The claimants sought to circumvent this fundamental problem by relying upon principles established in two recent decisions of the House of Lords, namely Law Society v Sephton, [2006] 2 AC 543 and Nykredit Mortgage Bank plc v Edward Erdman Group Ltd. (No. 2), [1997] AC 1627. The claimants maintained that under these authorities the loss had been contingent only and, hence, the limitation period did not start to run until the contingency matured, which was after 26 August 1998 (“the Sephton argument”)
Had the advice not been negligent, the claimants would have had the chance of negotiating a better agreement. That chance was an asset with a measurable value. Its absence meant that there was an immediate loss. It was not possible to say that there were two causes of action in law: one which accrued immediately the contract was entered into and was accepted to be statute-barred, and another residual claim for the loss of a chance. The alleged negligent advice led to the claimants entering into the transaction. The cause of action was then complete. Even if the advice should have included advice to renegotiate the agreement, it had been same event which constituted the breach of duty. The claim for damages for loss of the chance of renegotiation was merely an alternative or additional head of loss.
The fact that clause 21(ii) could not be used before August 31, 1998 and could only be used if the builder failed to complete by that date did not mean that it did not have a value before that date. Although its value depended on a number of factors including the likelihood of the claimants being able to exercise it after August 31, 1998, it had a value before that date.
When the claimants entered into the building agreement they acquired a number of rights. On the claimants’ case those rights were of a lesser value than they had been led to believe that it would be. Those rights were an asset capable of valuation. The claimants had suffered measurable loss when they acted on the allegedly negligent advice to enter into the later transaction; hence, that claim was statute-barred.
Associated Link :
7/3/2008
Subject: Barratt Invoice Adjudication Decision Triggers More Claims
Description: Subcontractors Flock to Consultant
Following the news that Southampton Glass successfully managed to recover invoice deductions made by Barratt, trade subcontractors are flocking to the dispute resolution company which managed to recover the money. There has been much concern in the industry about main contractors' unilateral deduction from invoices.
Associated Link :
4/3/2008
Subject: Driver Goup Acquires Commercial Management Consultants
Description: Acquisition increases staff by 45
The Driver Group plc has acquired a 100% of the share capital in Commercial Management Consultants Ltd, a provider of project commercial services such as site based quantity surveying and planning to the UK construction industry.
CMC was established in 1979 and has an excellent reputation working ostensibly for the contractor fraternity on rail, utilities, highways, building, water, airports and marine projects through its net | |