Category: Construction Management

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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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.

Peel sets out vast Chatham Docks regen plan

Developer Peel L&P has set out its plans for further major investment in the redevelopment of Chatham Docks Industrial Estate in Kent.

A masterplan released by the developer outlines its new ambition to build 3,600 homes and a 1m sq ft new employment zone at the 90-acre riverside site.


Peel L&P masterplan vision for Chatham Docks. Key:  Green – public open space; Green arrows – connectivity; Red and Orange – residential; Blue – employment space

Overall, the scheme has the potential to deliver 1.9m sq ft of floorspace which is similar to the scale of Peel L&P’s MediaCityUK development in Salford Quays.

Peel L&P has been investing in Medway for over a decade at its Chatham Waters development.

Since 2011, Peel L&P has pumped £125m into the redevelopment of the brownfield site, creating around 400 new homes, with a further 550 to be built over the next four years including 237 affordable homes and a new care home.

Waterfront UTC, and Mast & Rigging pub and restaurant. There is a further £500m to be invested over the next four years in Chatham Waters specifically on green community areas and an events zone.

James Whittaker, Executive Director of Development at Peel L&P said: “The vision is for a mixed-use sustainable community with a large employment area focusing on the digital, creative and health sectors along with a mix of homes including affordable homes, family housing, build to rent, open market and elderly living.

“The waterfront is a beautiful place, we have the chance to maximise this and create a community benefit that means all can enjoy the health and wellbeing advantages associated with this.”


Map depicting Chatham Waters and future redevelopment at Chatham Docks Industrial Estate


Completed residential, education and public realm at Peel L&P’s Chatham Waters

 

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Top Ten best read stories of 2021

The Enquirer is putting out its last daily newsletter of the year today as the industry winds-down for its traditional Christmas break.

The website will be updated with any major breaking stories during the holiday season with the full daily news service returning on January 4.

It has been an eventful 12 months and a busy news year for construction as the Enquirer keeps the industry up to date with what is really going on.

These were the best read stories during the year:

Our most popular stories in 2021

(Number of times they were read)

Mass brawl breaks out on London site – (65,706 page views)

Nmcn goes into administration – (53,228 page views)

Timber and steel shortages set to intensify – (46,462 page views)

Scaffold brought down on City of London site – (41,727 page views)

Six planned skyscrapers to change London city skyline– (41,340 page views)

Timber batten prices go through the roof – (35,604 page views)

Facebook site flooded by burst pipe– (31,793 page views)

Gove declares war on construction companies – (30,675 page views)

British Steel stops taking orders in face of ‘extreme’ demand – (30,558 page views)

National highways halts first smart motorway job– (30,015 page views)

The Enquirer enjoyed another year of growth as busy professionals turn to us for a fast and insightful news fix.

Our daily newsletter now has more than 49,000 subscribers.

Google Analytics show the Enquirer enjoyed more than 19.6 million page views this year from more than 4.3 million users – numbers which dwarf any of our traditional construction media rivals.

Our growing band of advertisers enjoy industry leading response rates and all the details about booking a campaign for 2022 can be found here.

Display adverts were clicked on more than 120,000 times during the year generating a staggering 3,500 hours – or 145 days – viewing time of our advertisers’ websites by Enquirer readers.

Our recruitment pages are thriving thanks to our unrivaled reach into construction companies while our Suppliers and Buyers Directory has already signed-up more than 4,700 firms from across the supply chain.

We’d like to wish all our readers a very Merry Christmas and here’s to a happy New Year after a well deserved break.

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Southern Rail starts hunt for £3bn signalling and track partners

Network Rail’s southern region has alerted firms to a forthecomming bid race to find two partners for a new 10-year-plus deal to deliver signalling and track across the territory.

The region is hoping for step-change in the way renewals are delivered on its network, making the most of modern methods of working and technology, collaboration and relationship-focused contracting.

The fresh delivery approach known as the Southern Integrated Delivery model will involve a switch to integrated and collaborative Project 13 principals of delivery for an estimated work total work programme of up to £9.6bn over Control Periods 7 and 8.

This partnership approach will be used to deliver all categories of railway asset work including signalling & telecoms, track, buildings & civils, electrification and plant and minor works.

Building and civils is already out to tender with the search for separate signalling and track business partners on Kent Sussex and Wessex routes completing the shake-up.

Buildings and civils will account for 30% – 45% of spend, track 15% – 25%, signalling 5% – 15%, electrification and plant 5% -10% while minor works will constitute 20%- 30% of the overall estimated value.

Works programme

Lot 3: The Signalling Integrator Business Partner

• Early-stage development including all work types (renewals and refurbishment) typically GRIP 1 to 3

• Detailed design, construction and commissioning of all work types (GRIP 4 to 8) including targeted Interventions, Level Crossings and telecommunications associated with the signalling works, with the exception of major renewals

• Manage, coordinate and oversee the delivery for all appointed Eco-System OEM providers – who will be remitted to undertake major Signalling renewals

• Self-delivery of mid-size schemes/asset-life extension works.

Lot 4: Track business partner

Site investigation, survey, design, planning and installation of track works, including renewal, removal, refurbishment or new installation of plain line track, track drainage or switches and crossings by whatever means.

This includes re-alignment, lifting and lowering of track, 3rd Rail, remote condition monitoring, removal, replacement or new installation of lineside plant such as rail lubricators, fencing and rail crossings

Successful bidders will initially sign into a development phase agreement, scheduled to commence in January 2023 and run up until April 2024.

Following this, the partners will sign into a multi-party SID Agreement based on an Network Rail’s alliance form of contract.

Network Rail will host a virtual market briefing event on Thursday 20 January 2022, from 10.00 to 12:00 to brief interested firms.

To register for the event email the attendee’s name, organisation and contact number no later than 13 January. Title email “Southern Integrated Delivery (SID) – Market Briefing – Signalling & Track”.

 

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Ameon lands £10m M&E package on twin Leeds towers

Building services specialist Ameon has landed a £10m mechanical and electrical contract from John Sisk & Son at Latitude Purple – the Hub Group’s twin-tower residential development in Leeds city centre.

Ameon will start on its 72-week phase of the contract next November and will deploy up to 80 operatives at peak on the projec.

Work will involve design and installation of the services infrastructure serving 463 residential apartments and communal areas in the 17 and 21-storey towers and the single-storey podium deck, linking the taller structures.

Ameon contracts director, Rod Bunce said: “We’ve demonstrated our capabilities on many high-rise residential tower blocks, particularly in the development hotspots of Manchester, Liverpool and Leeds in recent years; therefore I believe we’re a perfect fit for Latitude Purple, which will be a fantastic addition to the skyline of city centre Leeds.

“We’re also delighted to be working again with Sisk, with whom we have enjoyed excellent working relationships on previous projects and look forward to helping to bring Latitude Purple to life.”

Alan Rodger, Managing Director for UK North, John Sisk & Son, added: “I am delighted that we will be working with Ameon on this prestigious development for Hub Group, which will expand the city centre, and provide hundreds of quality homes for the local community.

“We have a brilliant working relationship with the company, forged on previous high-quality projects, and I am excited that we will get to strengthen that relationship further on Latitude Purple.”

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Worker loses leg after demolition roof collapse

A self-employed builder has been fined £20,000 after a contractor working for him had to have his leg amputated after a single-story roof he was demolishing by hand collapsed at a site in Cobham, Surrey.

Brighton Magistrates’ Court heard that, on the 15 April 2019, the contractor was standing on the roof of a partially demolished single-story extension of a domestic building undergoing refurbishment.

While he was on the roof, it collapsed and the worker suffered significant injuries to his right leg including a fractured tibia and fibular. Due to the damage sustained, his leg was later amputated above the knee.

An HSE investigation found there was no safe system of work in place and the demolition work had not been adequately planned. The stability of the structure during the demolition work had not been assessed, and there were no measures in place to prevent falls from the roof.

Patrick Sheehan of Walton-on-the-hill, Surrey, trading as Mastercraft Building Services, pleaded guilty to safety breaches and was fined £20,000 and ordered to pay costs of £4,383.

Speaking after the hearing, HSE inspector Leah Sullivan said: “The contractor’s injuries were life-changing and he could have easily been killed. This serious incident and the devastating effects on his life, could have been avoided if basic safe systems of work been put in place.

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

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Midas wins new £23m warehouse for power tool giant STIHL

Midas Construction has been appointed main contractor for a new warehouse and headquarters for power tools company STIHL.

Work will see the creation of a new 11,285m2 purpose-designed facility off the A331 in Camberley, Surrey.

Construction information specialist Barbour ABI has the project valued at £23m.

The deal will allow STIHL and its local workforce of 95 employees to move from their existing premises nearby in the Yorktown area of Camberley which the company has now outgrown.

The Southampton-based Southern Division of Midas Construction is expected to begin preparatory work on site this month.

The project will deliver an automated industrial warehouse for storage of machines and spares with ancillary office and workshop space, as well as a retail display area and staff facilities such as canteen.

New road access will be constructed from the A331 into the site, together with associated parking, earthworks and landscaping.

Steve Lee, Director of Midas Construction’s Southern Division said: “We are delighted to be working with STIHL GB and to have been entrusted to deliver this important project for the company.

“As well as being a high-profile international brand, STIHL has been an important local employer in Surrey for the last four decades and we are pleased to be playing a role in this major investment by STIHL which secures its future in the area and will allow the business to continue to thrive and grow.”

Kay Green, Managing Director of STIHL GB, added: “Our new purpose-built headquarters represents a significant capital investment and is a commitment to the future for our local workforce.

“This cutting edge facility will allow us to plan for many years of future growth which will continue to benefit the local economy. We are looking forward to working with Midas Construction on this vital project.”

The new building has been designed by architects Hale to combine contemporary materials with modern and simple detailing, creating a high-quality appearance. Extensive landscaping will include habitat creation and significant tree, native shrub and wildflower planting.

The first stage of works will see Midas Construction carry out site clearance and levelling of the former Thames Water Utilities site, in readiness for a start on the main build project in February 2022.

The project is scheduled to be completed in December 2022.

Renaker submits plan for Manchester tower quartet

Manchester developer and builder Renaker has submitted plans for its next major high-rise scheme in the city estimated to have a £750m development value.

The Trinity Islands scheme consists of four towers from 39 to 60 storeys, as well as bringing significant public realm improvements.

The Deansgate scheme designed by SimpsonHaugh would create nearly 2,000 flats, varying from one, two and three bedrooms, and underlines growing confidence in the Manchester high-rise flats market.

Consultant WSP is supporting both the M&E and structural design of Trin ity Islands.

Renaker bought the site from rival developer Allied London back in 2018, which then had planning for five high-rise buildings, including one at 67 stories that was due to be Manchester’s tallest block of flats.

The site, which consists of two parcels of land. It is bounded by the River Irwell to the north and west, Liverpool Road to the east and Water Street and Regent Street to the south.

The new Trinity Islands scheme will consist of two pairs of towers, with designs that seek to give each pair their own visual identity.

On site C, the buildings are conceived as diamond forms with a crystalline facade, while site D will emphasise the taller height of the buildings with curved facades.


Towers planned for site D


Towers planned at site C of Trinity Islands

 

 

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