Sheffield Hallam University’s £220m city campus gets nod

First phase plans to develop Sheffield Hallam University’s city campus with three new buildings have got the green light from planners.

Now BAM Construction will start construction work in early 2022 under its ground-breaking pain-gain sharing alliance model – the first genuine alliance to be used in the higher education building sector.

The Hallam Alliance is made up of the university, design-led consultancy BDP-Arup, contractor BAM and facilities manager CBRE and will use the new NEC4 alliance contract as a commercial template.

Over the next five years, the alliance aims to set a new benchmark for “best for project” delivery and building management.

The three new buildings in the £220m phase one will be four to seven storeys high. They will be erected around a new 400 sq m public area called University Green on Arundel Lane, on the recently demolished science park.

Designs include the latest technology and measures to make the new buildings zero carbon ready.

They include the use of sustainable energy solutions such as heat pumps, maximising the use of photo voltaic panels and provisions to support and promote sustainable travel.

BAM’s Paul Cleminson, Preconstruction Director in the North East, said: “The emphasis on sustainability and green spaces is very significant. By combining development, design, construction and long-term thinking about how the buildings are operated, we are all making a big difference to the future of how the buildings are used for generations to come.”

 

London and North West labour rates rise for third month

Skilled self-employed labour rates have risen for the third month running in London and the North West.

Average weekly earnings for self-employed tradespeople in London increased by 1.8% to £938 during September while in the North West, earnings increased by 3.3% to £887.

According to the industry’s biggest employment contract services firm, Hudson Contract, the two areas have become pinch points for this skills shortage, while across the rest of country as a whole, pay rates actually dipped in September.


Across all regions average wages dipped by 1.7 % to £913 last month, while year-on-year earnings increased by 4.7%.

The East Midlands remained the region where self-employed trades commanded the highest pay despite a small fall last month.

Ian Anfield, managing director, said: “We estimate that through Covid the industry has been short of as many as 140,000 tradespeople, or 10% down on where we could have been, which has helped drive up labour rates in the face of high demand.


“Skills shortages – once an acute regional problem – has been exacerbated across the country by the Self-Employment Income Support Scheme (SEISS).”

Official statistics show construction workers claimed grants worth £966m in the last round of SEISS, which covered the period to September 15 2021.


In total, the sector has claimed grants worth nearly £11bn through the scheme which would amount to hundreds of millions of man hours.

Anfield added: “As SEISS ends, many will return to work but because huge infrastructure projects such as Hinkley Point and HS2 are in full swing, government departments have accelerated ‘shovel-ready’ projects and the ongoing housing and domestic work, demand will continue to outstrip supply.”

 

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Laing O’Rourke on course for float after strong results

Laing O’Rourke is on course with plans to take the UK’s largest private contractor public after unveiling a strong set of results for the year to March 31 2021.

Latest figures show the group made a pre-tax profit of £41.4m from £45.5m despite the impact of Covid-19 as turnover ticked-up to £2.5bn from £2.4bn.

Chief executive Ray O’Rourke is planning to list the business on the stock exchange within the next three years after turning the firm around following a string of losses which ended in 2019.

Slashing bank debts by a total of £182m in the last 18 months has also allowed it to replace a multi-bank finance deal with a single £35m credit facility from HSBC which has cut interest payments.

Shareholders Ray and Des O’Rourke also wrote-off £58m in loans made to the company by converting them to equity in the business.

Chief Financial Officer Rowan Baker confirmed to the Enquirer that floating the business was an option as order books hit £7.9bn and prospects look encouraging for the rest of this financial year.

She said: “There was a significant net cash improvement during the year of £120.9m, and we finished FY21  with net cash of £276.1m. These solid results and strong cash positions enabled us to accelerate  the restructure of our debt facilities and set the foundations for future growth.

“The business has continued to perform strongly in the first half of FY22 and is on track to meet  management’s expectations of continued revenue and margin growth.”

Baker has a listed company background after joining from McCarthy & Stone last year.

O’Rourke said it is planning to invest in a new Risk and Internal Audit function next year which will ensure its systems are “on a par with those seen in operation at premier listed businesses.”

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