Author: Linda Smith

“Vast majority” of jobs set to be saved at nmcn

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The sale of nmcn following its fall into administration is expected to be concluded within 48 hours saving the jobs of the “vast majority”of the contractor’s 1,700 employees.

The Enquirer has seen an update sent to staff by CEO Lee Marks on Tuesday.

It states that the sale of the Infrastructure, Plant Transport & Accommodation, Telecoms and Water divisions is expected to complete in the next day or two.

Marks added: “These potential sales will secure the jobs of the vast majority of our employees as your current employment with nmcn will transfer to the new organisation under TUPE, with the interested parties taking on certain people and projects.”

Following its imminent appointment administrator Grant Thornton will hold calls with employees to discuss TUPE or redundancy options.

Marks said: “Whilst this is positive news for the majority of our people, I understand that these are worrying times for everyone.”

One employee said: “I’m sure the senior management will make sure they are carried across to the the new companies. As for the rest of us – we’ll see.”

Did you miss our previous article…
https://www.thegraduatemag.com/?p=667

Network Rail to shake-up £9.6bn southern renewals delivery

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Network Rail is aiming for a radical shake-up in the way renewals are delivered across its large southern region by appointing a new integrated collaborative team of firms to deliver a vast works programme over 10 years.

The fresh delivery approach will involve a switch to integrated and collaborative Project 13 principals of delivery for an estimated work programme of £4.5bn to £9bn over Control Period 7 and 8.

Its new Southern Integrated Delivery model will be used to deliver all categories of railway asset work including: signalling & telecoms, track, buildings & civils, electrification and plant and minor works.

Of the total spending estimate, buildings and civils will constitute 30% – 45%, track 15% – 25%, signalling & telecoms 5% – 15%, electrification and plant 5% -10% while minor works will constitute 20%- 30% of the overall estimated value.

The southern region is now starting the hunt for the first partners for the first work areas to deliver buildings & civils; and electrification and plant

The SID approach aims to harness the strengths, capabilities, and knowledge of the supply chain, through a knowledge sharing and digital transparent approach that breaks down tier one, two and three hierarchies to deliver better outcomes.

Under the new enterprise approach, financial rewards will be based on value and performance, rather than transferred risk and volume outputs.

Works will be undertaken on Kent Sussex and Wessex routes, primarily for renewals, although options exist to enable enhancements to also be delivered, subject to capacity and where the SID is considered the optimum procurement route.

Under the present procurement plan, all appointed firms will initially sign into a development phase agreement, scheduled to commence in December 2022 / January 2023 and run up until April 2024.

After this Network Rail will commence the main SID agreement.

Network Rail plans to host a virtual market briefing event on 1 November to set out the forthcoming procurement process.

To register for the event or for details of the presentation, email your name, organisation and contact number to Network Rail before 25 October 2021. Emails should be entitled “Southern Integrated Delivery (SID) – Market Briefing”.

Nmcn goes into administration

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Nmcn is going into administration after the board decided the contractor is no longer able to continue trading as a going concern.

A notice of intention to appoint Grant Thornton UK LLP as administrators has now been filed with the courts.

The company was in the middle of a protracted £24m refinancing deal with Svella plc which was being held-up by the late publication of nmcn’s latest results for last year.

A statement said: “The Board, its advisers and Svella have worked tirelessly in the intervening period. However, as previously notified, completing the preparation of the group’s accounts has revealed further underlying contractual issues with expected losses rising to £43 million.

“It has now become apparent that the company will be unable to approve the audited financial statements in a timely manner to allow the Proposed Transaction to complete within the required timeframe.

“This in turn has led to significant liquidity issues for the Group and particularly the company, which unfortunately is now considered to no longer be able to continue trading as a going concern.”

The Enquirer understands that rival firms were being offered parts of the business over the weekend.

Nmcn said: “Indicative offers have been received from certain parties for the acquisition of certain of the trading operations and/or subsidiaries of the company on a going concern basis, and discussions are ongoing with further parties which may lead to indicative offers on a similar basis.

“Following discussions with its advisers, it is expected that this process will be conducted out of administration, to safeguard the continuity of operations and employment, and consequently the consideration receivable by the company is unlikely to result in any value for equity shareholders.

“The board of nmcn wishes to thank all of its shareholders, customers and suppliers for their support over the years and particularly Svella and those who had intended to participate in the equity subscription that formed part of the Proposed Transaction, which has had to be cancelled.

“Further announcements will be made by the company as appropriate.”

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https://www.thegraduatemag.com/?p=649

Green light for £31m Leeds Victorian school conversion

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Leeds-based developer Priestley Homes has been granted planning permission to transform a Grade-II listed former Victorian school in the city centre into an apartment and commercial scheme.

The 2 Great George Street building will be renovated into 34 one-bedroom, 43 two-bedroom and six three-bedroom apartments – including the city’s first £1million-plus penthouses.

A new-build, three storey glazed extension will be added to the rooftop of the building alongside a communal roof-top garden and winter terrace.

New ground-floor office accommodation will be sub-divided into several units, providing 815m2 in high-quality workspaces for Leeds businesses.

The developer’s contracting arm Priestley Construction has started the initial strip-out of the building with the aim to complete in Q1 2023.

Nathan Priestley, chief executive officer of the Priestley Group, said: “As a Leeds-based business, it’s a privilege to be able to transform one of the city centre’s most ornate historical landmarks and bring it back into use as beautiful new homes and high-specification workspaces.

“Our strong reputation speaks for itself when breathing new life into heritage buildings and we can’t wait to make these ambitious plans a reality.

“Most of the development in Leeds city centre is allocated to student housing and PRS schemes. We believe there is a huge shortage of truly magnificent homes for owner-occupiers that give a taste of individuality and elegance; something that we will set out to deliver at 2 Great George Street.”

Did you miss our previous article…
https://www.thegraduatemag.com/?p=643

Union raises safety fears over HS2 site

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Construction union Unite is raising safety concerns after it claims a spate of serious accidents have hit the HS2 section being delivered by the Skanska/Costain/ Strabag (SCS) joint venture in London.

The union has been involved in a long running dispute with the contractors over worker representation on the job where it said Unite officials are not allowed “to freely speak to workers during their breaks in its welfare facilities.”

Recent alleged accidents include a worker suffering arm injuries after clay fell from height onto them, a lorry overturning into a ditch, a skill saw blade came off its mooring, a hammer breaking a worker’s wrist and a digger bucket hitting a worker’s foot.

Unite national officer for construction Jerry Swain said“Workers operating on the Costain/Skanska/Strabag joint venture, will be rightly worried and concerned for their safety.

“This project is crying out for union safety reps who play a unique role in protecting workers and preventing accidents.”

An HS2 Ltd spokesperson said:“The safety of our workforce and the public is HS2’s number one priority. We have an open and transparent reporting culture, and all health and safety incidents are fully investigated, key learnings and actions for HS2 and our contractors identified, and these are then shared across the project.

“All those who work on HS2 have the right to go home unharmed, and we continue to work with and challenge our contractors to provide the highest levels of health and safety standards.”

An SCS JV spokesperson said: “The health and safety of our teams and the public is always SCS’s first priority and we have offered Unite access to our sites, which exceeds levels usually seen across the industry.

“This enables them to meet our team at inductions, work sites and our welfare area. We first offered this to Unite in 2018 and on numerous occasions since.

“We continue to make contact with them to reiterate this offer as we seek to maintain an open dialogue with Unite and to allow them to carry out their activities.  To date they have not taken up this offer, however it remains open to them.”

 

 

Track workers dive clear from train after safety blunder

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Two track workers had a near miss from a passenger train following a mix-up over line possession.

A Rail Accident Investigation Branch report into the incident in July detailed the circumstances behind the near miss at Eccles station.

The workers were on the westbound track in the early hours under the protection of a line blockage organised by the Controller of Site Safety (COSS).

The pair had been standing on the track to paint a white line along the edge of Platform 2 and had just been told to stop work and were preparing to leave the track when an empty passenger train approached on its way to the depot.

The driver spotted their reflective clothing and sounded his horn. They jumped clear with seconds to spare as the train passed at 69 mph.

The incident occurred because the COSS had given up the line blockage before informing the track workers that they had to move clear of the line and making sure that they had done so.

The work on the platform was being undertaken on behalf of Northern Trains Ltd, the operator of Eccles station. It was contracted to TMT Commercial Contractors Ltd, who planned the white-lining task and employed the track workers.

TMT Commercial Contractors Ltd subcontracted the provision of safety-critical staff and the planning of the safe system of work to Trackwork Ltd. The COSS was a contractor who was supplied to Trackwork Ltd by an agency, Spectrum Rail Ltd. He had been certified as competent to undertake the role of COSS for approximately ten years and regularly acted in the role.

The COSS was also the nominated Person In Charge and therefore had overall responsibility for safely delivering the work.

For a full report into the incident click here.

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https://www.thegraduatemag.com/?p=631

Construction arm loss drags on Eric Wright profit growth

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Eric Wright Group battled through the pandemic to deliver a 24% rise in pre-tax profit to £9.5m last year despite also wearing ongoing small losses at the construction arm.

Overall group turnover decreased from £223m to £204m, with construction accounting for most of the fall as revenues at the business dropped 28% to £81m.

Losses at the construction arm were contained to £650,000 last year, improved from losses of £2.8m in 2019 and £2.5m in 2018.

The construction business entered 2021 with clear books after negotiating away further commercial risk on two loss-making contracts.

It is now run by John Hartnett, who was promoted to managing director at the start of this year, and is back on track to return to profit this year after a strategic decision now to avoid risky single-stage design and build jobs.

Profits at the group, which now employs nearly 700 staff, were largely driven by continued growth of commercial and residential property, and a resilient performance from water and FM operations.

Eric Wright Group key trading divisionsTurnover 2020/2019Profit 2020/2019Construction£81m£113m-£0.6m-£2.8mCivil engineering£29m£26m-£0.4m£0.1mWater£47m£50m£0.4m£0.7mCommercial property£15m£6m£2.2m£1.8mResidential property£12m£11m£1.1m£0.7mFM£19m£17m£0.9m£1.1m

Group managing director, Jeremy Hartley said: “The strength of our underlying business and the commitment and determination of all our staff has enabled us to trade through the pandemic and look to the future with a cautious optimism.”

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https://www.thegraduatemag.com/?p=626

Nmcn confirms another delay in releasing results

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Nmcn will miss its latest deadline to published delayed results which are necessary to secure a refinancing deal.

The contractor released its latest refinancing time frame last month which involved publishing a prospectus by November 1 which would require results for the year to December 31 2020 being signed-off before then.

But the firm issued an update on Friday afternoon confirming it will miss the deadline.

Nmcn said: “Further to the announcement of 24 September 2021, the company has been in intensive discussions with regards to completing the preparation of the group’s annual report in respect of the financial year ended 31 December 2020. 

“As a result of these discussions, it has become apparent that the group will be unable to approve the audited financial statements within the extension period set out in the company’s announcement on 24 September 2021.

“The company will make a further announcement as appropriate.”

Did you miss our previous article…
https://www.thegraduatemag.com/?p=621

HS2 tunnellers clock up first mile under Chilterns

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HS2’s first TBM drive has passed the one-mile mark cutting through a mix of chalk and flint beneath the Chiltern hills just outside London.

Launched in May, TBM Florence is one of two identical machines excavating the twin 10-mile-long tunnels.

During her first mile, Florence and her crew have installed more than 5,500 separate segments, each weighing around 8.5 tonnes.

A second machine, named ‘Cecilia’ is a short way behind, with both TBMs expected to break out in around three years’ time.

Both TBMs are operated by HS2’s main works contractor, Align – a joint venture formed of Bouygues Travaux Publics, Sir Robert McAlpine, and VolkerFitzpatrick.

Align Project Director Daniel Altier said: “I am delighted with the progress that Florence has made since its launch in May, with Cecilia not far behind.

“All the spoil from the TBMs is converted into slurry before being pumped back to our South Portal site, just inside the M25, where it is processed and used for landscaping on site. This is, and will continue to be, a huge logistical challenge, as Florence and Cecilia continue their journey through the Chilterns.

“Florence reaching the 1 mile point is a great achievement, however we still have a long way to go.”

Each of the separate northbound and southbound tunnels will require 56,000 precision engineered, fibre-reinforced concrete wall segments – which are all being made at the south portal of the tunnel, next to the M25.

Approximately 2.7 million cubic metres of material will be excavated during the construction of the tunnels and used for landscaping around the south portal site.

Once construction is complete, this will help create around 90 hectares of wildlife-rich chalk grassland habitats.

Willmott Dixon to start main build on £60m Rochdale site

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Willmott Dixon has been formally appointed as main contractor on a £60m scheme to build 242 new apartments for rent and a Hampton by Hilton hotel in Rochdale town centre.

The contractor has been readying the Upperbanks site for months and will now start main construction within days.

Willmott Dixon recently built the neighbouring shopping and leisure development Rochdale Riverside and is aiming to ensure 40% of its local spend is committed within a 20 mile radius of the Upperbanks site, while 75% of it will be spent within 40 miles.

The scheme has been awarded £20m of external funding from the government’s Future High Streets Fund and the Greater Manchester’s Combined Authority’s Brownfield Development Fund.

Councillor John Blundell, cabinet member for economy and communications, said: “The appointment of Willmott Dixon is another crucial step forward for this fantastic scheme, which will regenerate this key brownfield site, and create a brand new housing and leisure offer which is unlike anything we currently have in this area.

“Willmott Dixon is a known and trusted company, which previously constructed the Rochdale Riverside retail and leisure development. On that project, they contracted key local companies like Hovingtons, and created a number of local employment opportunities, including for ex-armed forces personnel.

“I’m looking forward to seeing them build on this track record to deliver wider social benefits once again this time round.”

Anthony Dillon, managing director for Willmott Dixon in the North, said: “We are hugely proud to continue to play our part in shaping the future of Rochdale town centre and to be working in partnership once again with Rochdale Borough Council, Rochdale Development Agency, Genr8 and our architect partners Leach Rhodes Walker and KKA.

“We are committed to delivering brilliant buildings, transforming lives, strengthening communities and enhancing the environment so our towns are fit for future generations.

“This project will be built for the people of Rochdale by the people of Rochdale, and we will work with our local supply chain partners to create sustainable employment opportunities and a lasting positive legacy in this community.

“The local pride in Rochdale Riverside and the continued level of inward investment being attracted to exciting developments such as Upperbanks, make it a blueprint for vital town centre regeneration across the UK.”

Construction is set for completion in early 2024.

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