Problem gas station contract to cost Costain up to £53.5m

Costain has received a series of adjudication decisions following a contract bust-up with National Grid.

The contractor and client parted ways in June 2020 more than halfway through a £113m upgrade to gas compressor stations at Peterborough and Huntingdon.

In a stock echange update today Costain said: “Under the terms of the termination agreement with National Grid, there is an expected requirement to make a payment of £53.5min January 2022, which now represents the maximum cash outflow under the contract.”

The adjudicator found in Costain’s favour in principle in three out of the four compensation events but chose not to determine the financial amounts in respect of them.

Costain said: “We will pursue a financial settlement with National Grid in respect of these compensation events. As not all compensation events have been decided in our favour, we now expect there to be an overall cash outflow in respect of the contract.

“Given the recent adjudication decision, we have an entitlement to recover a proportion of this payment and will be discussing the timing and amount with National Grid

“The payment, if made, will not affect our banking arrangements and we will continue to have a strong balance sheet that enables us to deliver our business plan.

“There will be an associated charge to the income statement for the current financial year reflecting such payment.”

The contractor added that year end net cash, before any period end timing benefits, will now be ahead of market expectations at around £100m while full year adjusted operating profit is expected to be in line with market expectations.

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Sellar in talks for next £1.5bn London station project

Developer Sellar Property is in talks with Network Rail for a landmark redevelopment at London’s Liverpool Street Station.

The proposed major project is at an early stage of development although an indicative construction cost has been put at £1.5bn, according to initial estimates seen by the Enquirer.

The project would be Sellar’s third major station scheme in the Capital following the Shard at London Bridge Station and the Paddington Square project at the Great Western terminus.

Liverpool Street is the third busiest station in the UK and has significant overcrowding problems which Network Rail Infrastructure is keen to tackle.

It wants to improve access and passenger flow at the station to allow for future passenger growth, while freeing Sellar to bring forward office, retail and hotel plans around the southern and south east entrances.

Sellar holds exclusive development rights over the Andaz hotel, which would form part of the major redevelopment scheme, while Network Rail owns the Victorian 50 Liverpool Street Building, which would be demolished to improve station access.

The proposed redevelopment plan would also involve construction of a new two-level station concourse with greatly increased circulation space, construction of a new hotel and a major office building and associated ancillary facilities.

Network Rail and Sellar are now in formal talks with view to entering into a development agreement by 2023.

 

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14-storey tower built in record time by offsite specialist

British Offsite has completed construction to the topping-out stage of a 14-storey residential tower in Southend “in just a few months”.

The £53m (GDV) Victoria Central apartment building has been built using the firm’s factory built UniPanel system allowing the envelope of the tower to be completed in 30% less time than traditional building methods.

British Offsite sells its exterior building and interior fitout components to house builders and contractors including sister company Weston Homes.

At Victoria Central British Offsite supplied and assembled 665 UniPanels across the 14 floors, delivering a structure covering almost 2,640 lineal metres.

Managing Director Shaun Weston said: “British Offsite is delighted to have completed the residential tower at Victoria Central in 30% less time than it would have taken using traditional building methods.

“Our MMC products help reduce the risk and delays in construction, and help to deliver occupiable homes faster. As Victoria Central demonstrates our UniPanel system is highly flexible and can be used for low-rise houses, but also projects like Southend-on-Sea where the requirement is for mid-rise and high-rise schemes in high density urban areas.”

The firm operates from a purpose built facility in Braintree which provides 75,000 sqft of high-tech off-site manufacturing, assembly points and quality control.

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Contractor sentenced after asbestos toilet blunder

A contractor has been handed 100 hours community service and ten days Rehabilitation Activity after labourers disturbed asbestos and worked dangerously at height while refurbishing a disused park toilet block.

Southwark Crown Court heard how, in 2019, a charity hired a local contractor, Fahadh Rasheed, to convert a toilet block in Valentines Park, Ilford, into a community meeting centre. The work included replacing the weather-damaged roof.

Rasheed employed unskilled and untrained labourers to undertake this work. The labourers disturbed a significant amount of asbestos insulation board present in the structure, spreading asbestos debris around the site.

The construction work was brought to the attention of the HSE by a member of the public who observed the labourers working on the roof, without scaffolding or other control measures, to prevent them falling from height. The asbestos was later cleaned up by a licensed asbestos removal company.

An HSE investigation found that Rasheed had not carried out a refurbishment and demolition asbestos survey before work began. Furthermore, he had not ensured the workers he’d engaged had the necessary skills, knowledge and experience, including asbestos awareness training, to undertake this work.

Previously a jury had found Rasheed guilty of breaching safety regulations. At the sentencing hearing last week he was given a Community Order including 100 hours unpaid work and a 10 days Rehabilitation Activity Requirement.

After the hearing HSE inspector David King said: “This was a case of a contractor completely failing to grasp the importance of planning, managing and monitoring construction work to ensure the health and safety of construction workers.

“Companies and their Directors should be aware that HSE will not hesitate to take appropriate enforcement action against those that fall below the required standards.”

London Square deal for three new towers at Nine Elms Park

Developer London Square has struck a series of deals at the Nine Elms Park site in south west London which will see the construction of three new residential towers.

London Square has agreed to purchase the final three phases of the site in a deal worth £400m in gross development value – and struck a partnership deal with build-to-rent pioneer Moda Living on land for two buildings on the site.

The land deal sees London Square exchanging contracts on 3.04 acres for £111.23m to deliver 756 homes across three sites.

London Square will deliver 186 private for sale apartments in a 22-storey three-sided bronze panelled building by architects Allies and Morrison which is set to be the tallest building in Nine Elms Park.

The acquisition paves the way for the launch of the company’s new build-to-rent division London Square Living.

A new partnership has also been agreed with Moda Living who will develop 437 apartments across two blocks ranging from nine to 13 storeys with London Square overseeing construction.

The sale of the final parcels of land to London Square and Moda Living will be the final piece of the regeneration at the 14-acre site of the former Royal Mail delivery office.

Adam Lawrence, Chief Executive, London Square, said: “We are delighted to be working with Moda Living, with its excellent reputation for delivering high quality homes and lifestyles.

“Nine Elms Park is an outstanding opportunity for us, delivering an exceptional landmark 22-storey building with homes for private sale in a prime location and enabling us to showcase the breadth of our offering with the launch of our build-to-rent division, London Square Living.

“We are building a much-needed pipeline of homes for rent, as well as affordable homes, alongside our longstanding track record of delivering exceptional homes for sale in the capital.”

Johnny Caddick, Chief Executive, Moda Living said: “We are excited to bring our brand to London, and this is the perfect place for our flagship scheme.

“With our core brand proposition focussed on unparalleled customer service, resident wellbeing, technology, community and ESG we aim to attract a broad demographic of members from across the capital and beyond.

“Our structure is now set up to deliver and operate thousands of homes for rent per annum across the UK and naturally London forms a a key piece of the jigsaw for our portfolio weightings.”

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Groundworker suffers burns during poorly planned dig

A contractor and its groundworks subbie have been fined £400,000 after unsafe excavation work left a worker with serious burns to his hand and arm.

High Wycombe Magistrates’ Court heard that, on the 2 August 2018, a groundworker was preparing the ground to install a post to carry an Automatic Number Plate Recognition Camera at Twyford near Reading, Berkshire.

Initially, the worker hand dug then started to use an 110V mechanical electric breaker when he struck a power cable supplying an adjacent British Telecommunications building.

The voltage of the cable was 415v causing the ground worker to receive an electric shock that caused burns to one hand and to his opposite arm.

An HSE investigation found that site plans for buried cables had not been consulted and a cable avoidance tool had not been used to locate buried services in advance of carrying out the work.

In addition, there was a lack of properly trained labour and supervision in place for the excavation works.

The principal contractor on site had failed to plan, manage and monitor the excavation works and also failed to provide adequate supervision for the project.

CLC Contractors Limited of Southampton pleaded guilty to breaching CDM regulations and were fined £400,000.00 and ordered to pay costs of £5,300.00.

Subcontractor Paul Gale, Company Director of PAG Building Services Ltd of Southampton also pleaded guilty to safety breaches

Due to the seriousness of the offence the case was referred to Aylesbury Crown Court where Gale was sentenced to 14 months imprisonment suspended for 24 months and 150 hour of community service. HSE was awarded costs of £7,200.

Speaking after the case, HSE inspector John Caboche said: “Those in control of work have a responsibility to devise safe methods of working and to provide the necessary information, instruction and training to their workers in the safe system of working.

“In this instance, readily available buried service records were not consulted, and a cable avoidance tool was not provided to the groundworks team. Utilising these simple steps would have prevented this serious incident.”

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Eutopia Homes lands deal for Gloucester £70m resi scheme

Brownfield developer Eutopia Homes has acquired an 8-acre brownfield site in central Gloucester for a £70m residential-led regeneration project.

Eutopia Homes is planning on bringing forward proposals early next year for up to 300 homes in a mix of single-family homes for rent, alongside city centre flats adjacent to Gloucester City train station.

The deal is the third Eutopia Homes has made with Network Rail, following previous transactions for Exmouth Junction in Exeter.

Scott Hammond, founder and CEO at Eutopia Homes, said:“We are excited to bring forward this complicated brownfield site for a new balanced community of homes for sale and rent.

“Recent investment by the University of Gloucester for the acquisition of the old Debenhams store for a new campus, along with the City Council’s recent investment in driving a new cyber hub for the UK in close proximity to Gloucester Council’s HQ, will bring more employment to the City, which in turn will drive up the demand for high-quality housing.”

Chenavari Investment Managers funded the land deal, which is the fifth for Eutopia Homes.

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Hill gets nod for 420-home East Cambridge phase 2

Hill Group and joint venture partner Marshall have secured planning for the 420-home second phase of the Marleigh development in East Cambridge.

This new phase will run in conjunction with the current phase to deliver 550 homes, a primary school, market square and community centre over the next five years.

Construction will start on site to build the homes in early 2022, when a mix of private and affordable apartments and homes will be delivered as part of the long term masterplan.

Every new home will feature a range of energy-saving and carbon reduction features, including fabric first designs, air-source heat pumps and photovoltaics.

Andy Hill of Hill Marshall JV said: “We are delighted to have secured planning for the delivery of more homes and community facilities in this exciting new neighbourhood in East Cambridge, which has attracted a broad mix of buyers already.

“We have an unwavering commitment to supporting the wider Cambridge local economy, and it has been excellent to see our efforts supported through this latest approval.”

Phase 2 has been underpinned by the vision and essential placemaking principles set out in the Design Code, created for the wider master plan.

As a result, the material palette has been carefully chosen to comply with the Design Code and features a diverse range of high-quality brickwork in a range of colours and textures. These materials establish an exciting street scene and integrate with the emerging character that has been developed in Phase 1.

Extensive cycle parking provisions have been incorporated for all residents, including the apartment buildings, each with a dedicated secure bike store close to the entrance.

The project team for Marleigh phase 2 includes Terence O’Rourke, JTP LLP, Bradley Murphy Design and WSP.

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Keltbray raids Skanska Cementation for piling boss

Keltbray has lured Skanska Cementations’s Paul Wiltcher to take up the role of operations director at its piling division.

Wiltcher spent nearly five years as Skanska Cementation operations director and brings over 25 years experience in the piling and foundations industry.

During that time he has worked on many complex major projects, most notably, Amsterdam NoordZuid Lijn, NLE Battersea Station Box, the New US Embassy in London, 21 Moorfields and London City Airport.

Stuart Norman, managing director, Piling, said: “We are delighted to welcome Paul to the team. Paul joins us with a wealth of experience having worked for some of the best specialist piling and foundations companies in the UK and abroad.

“We are delighted to have him join us where he will have a senior role to play in delivering our core mission statement and values.”

Berkeley starts picking team for Plumstead regen scheme

The first raft of specialists has been lined-up for Berkeley’s latest major regeneration project in south east London to transform the former historic home of Arsenal FC.

Main construction work is set to begin early next year on the 1,750-home Lombard Square development in Plumstead being delivered with Peabody.

And Berkeley has agreed the first set of deals on site preparation work with JB Riney & Co set to work on highways works, McCauliffe Site Services on temporary electrics and Tagg Construction on site hoardings

The scheme is located on the vacant site near Plumstead Station in the Thamesmead and Abbey Wood Opportunity Area. It is centred around a new biodiverse park and play space which will almost equal the size of two Wembley Stadium football pitches, and create new natural habitats with green corridors.

Karl Whiteman, Divisional Managing Director for Berkeley East Thames, said: “It will be a real driver of change for Plumstead and Thamesmead.

“We’re taking unused and long vacant land and delivering homes, employment, retail and leisure opportunities alongside a stunning new biodiverse park which can be enjoyed by the whole community – something we hope everyone will be proud of and benefit from.

“Berkeley has had the privilege of working in The Royal Borough of Greenwich for over two decades and we remain committed to taking derelict, unloved land and turning it into exceptional spaces which improve the lives of those who live and work on and near to it.”

The Lombard Square site was once home to Arsenal Football Club, with the Manor Ground hosting Arsenal’s first ever Football League match in 1893. It was the club’s home ground for 20 years before they moved to Highbury in Islington.

The site has been in industrial use for several decades and has been vacant and unused since 2016.