A building contractor has been prosecuted after carrying out unsafe excavation works which resulted in the partial collapse of a residential building.

Manchester Crown Court heard how on 14 August 2019, Iproject Cheshire Limited had been carrying out refurbishment works on a building in Didsbury.

Employees of the company undermined the foundations while digging out the ground around the building causing a partial collapse. There were no injuries or fatalities, but the collapse presented a risk to life.

An HSE investigation found that the company failed to properly plan or carry out the work safely. A risk assessment into the excavations had not been carried out. There was no safe system of work in place and the work had not been sufficiently supervised.

Iproject Cheshire Limited of Stockport pleaded guilty to safety breaches and was fined £31,500 and ordered to pay costs of £13,500.

Speaking after the hearing, HSE inspector David Argument said: “This was a very serious incident, and it is fortunate that nobody was injured as a result of it.

“This incident could have been prevented if the company had carried out a suitable and sufficient risk assessment prior to commencing work on the excavations and by properly supervising the work.”

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Birmingham City Council has cut hundreds of KPIs during a restructuring of its troubled £2.7bn highways PFI contract.

The tender process for a new contractor for the revamped 12-year deal will start in February.

Birmingham originally signed a 25-year, £2.7bn highways management and maintenance contract back in 2010 with Amey.

But the contractor became embroiled in a lengthy performance dispute with the council which ended in March 2020 with Amey paying £215m to terminate its involvement in the PFI deal.

Kier stepped in as interim contractor while the council and Birmingham Highways Limited – the special purpose vehicle owned by Equitix and PIP Infrastructure Investments – have been working to restructure the contract.

The new contract will cover the remaining 12 years of the initial agreement, from April 2023 to June 2035.

It will be a bespoke deal similar in length to a standard long-term maintenance contract, with operational terms and a performance regime that enables it to be “brought up to date to better reflect current industry standards which have changed over the past decade.”

Birmingham said: “The new contract has been structured to provide better governance of the project and more balanced risk between the Council, the SPV and the future contractor.

“A key element of this is a reduction in key performance indicators from over 600 to around 28 as well as prioritisation of deliverables, addressing both areas which routinely plagued the previous contractor Amey during its tenure as subcontractor.”

Prospective bidders will go through a competitive and transparent tendering process which is due to begin in February 2022, following the supplier day in January.

The process will be conducted over a period of nine months and be structured to provide bidders with sufficient time to undertake due diligence.

During the interim period, an updated Management Information System (MIS) was implemented to collect data from across the road network to provide a greater understanding of current conditions and areas for improvement.

Bidders will be provided with access to this information via a data room, which includes a database of assets and will allow bids to be informed by bidders’ due diligence and analysis.

The data room will include new information about the current status of the road network from improved data collection and analysis, including full network surveys of carriageway conditions that have been undertaken by independent surveyors.

This information will be shared with bidders during the tendering process, providing them with the most detailed understanding of the status of the network to date and provide greater clarity over what can be delivered over the term period.

The contract covers capital works and maintenance of more than 2,500km of roadways and 5,000km of footways across the UK’s largest authority and second largest city, as well as 846 structures, three tunnels, 94,000 street lighting columns, 76,000 highway trees and the city’s traffic control system.

Kevin Hicks, Assistant Director for Highways and Infrastructure of Birmingham City Council, said: “Extensive work has been put in over the last two years by all of the project parties and with the close support of the DfT in order to establish a workable and deliverable contract framework.

“Many lessons have been learned from the first 10 years of the project and with the insight we have gained from the industry through previous engagement exercises believe that we have an attractive prospect for the market.”

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Manchester-based property developer CERT property has submitted plans for a 30-floor residential tower on Salford’s Clippers Quay.

The vertically zoned tower block, designed by OMI Architects, will offer a range of private living experiences from lower level affordable to top-floor luxury.

Local Manchester builder Domis Construction has been lined up for the project.

The lower brick-clad 9 floors will be set aside for co-living studios for people who want to try out the lifestyle available in the building with an affordable rental cost.

Above will be 15 floors of one and two-bedroom flats with high specification kitchens, bathrooms and all bills included.

In the top section of the building will be 15 luxury penthouse apartments with views Salford Quays and a top floor skybar.

In its consultation CERT said: “Successful urban areas such as Salford are seeing an influx of talented people from across the world.

“Cities have responded by delivering more city-centre residential accommodation, but these are often focused on the luxury areas of the market, meaning adults at the earlier stages of their career, or on lower incomes, may be forced to live in a less convenient and desirable location.

“Not with community living, our Clippers Quay development provides a variety of private living options for all.”

Project team

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An independent Cabinet Office review into the proliferation and use of frameworks in construction has called for a complete overhaul of the system to end wasted time and costs for bidders.

The review conducted by a top construction legal expert reveals contractors on average are spending nearly £250,000, and some as much as £1m, on individual framework bids.

It concluded that significant cost and time is being wasted bidding for multiple, speculative construction frameworks, often not connected to specific pipelines of work.

Professor David Mosey from the Centre of Construction Law, King’s College London also sets out terms for a new ‘Gold Standard’ for frameworks and framework contracts.

His report published by the Government said this would drive the strategic actions needed to improve value and safety, manage risks, meet Net Zero Carbon targets and support a profitable construction industry.

Mosey scrutinised public sector construction frameworks with a combined value of £180bn and considered more than 120 written submissions and 50 interviews.

His analysis found evidence of waste, confusion and duplication in processes ­as well as too strong a focus on achieving the lowest price, rather than best value.

He said: “Review participants report average bid costs for each major framework of over £247,000 for contractors and over £130,000 for consultants, with a maximum of up to £1m in each case.”

On average one in four bids by contractors were successful in securing work, meaning that up to £4m would have be recovered before a supplier delivered any value at all.

“These costs, and the procurement costs incurred by clients, will be substantially reduced if government and industry clarify the scope of each framework and if they adopt a new Gold Standard for selection questionnaires, evaluation criteria, framework contracts, outcome-based performance measures and incentives,” he said.

The new ‘Gold Standard’ for frameworks and framework contracts drives the strategic actions that will improve value and safety, manage risks, meet Net Zero Carbon targets and support a profitable construction industry.

Mosey said that employing the Gold Standard principals offered a dynamic and strategic medium for implementing Construction Playbook policies in ways that break the cycle of lost learning and deliver faster, better, greener construction.

To tackle these issues, the Gold Standard puts in place 24 recommendations, which must be met by both developers and the public sector.

Cabinet Office Minister, Lord Agnew, said: “The new Gold Standard will make sure that vital public sector developments have rigorous measures in place to make sure public money is spent well and that projects are delivered successfully.

“This will be welcomed across the public sector, the construction industry and by the public, who have a right to expect the best possible public sector projects.”

Director of Operations for the Civil Engineering Contractors Association Marie-Claude Hemming said: “We are delighted that Professor Mosey has taken on many of our members’ recommendations in his review, which will enable future frameworks to be established that will deliver improved value for money, efficiency, safety, and social value.

“Moreover, he recommends that future frameworks must focus on net zero carbon and whole life value, delivering both better environmental outcomes and value for money for our members’ clients.

The review is a result of the Construction Playbook, which was launched by the Cabinet Office in 2020 with the aim of making sure the public sector and construction industry work together better to deliver key infrastructure projects.

Click here for the ‘Constructing the Gold Standard report’.

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Developer Ask:PATRIZIA has instructed BAM Construction to work on the initial preparation works for the Gateshead arena project.

BAM replaces Sir Robert McAlpine, which was previously lined up to deliver the scheme.

NewcastleGateshead Quays will feature a world class arena, purpose-built conference and exhibition centre, restaurants, a dual-branded hotel and large areas of outdoor realm and performance space.

It is anticipated the site will attract over 330,000 additional visitors each year and it is due to complete in 2024.

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Kier has secured the biggest monthly haul of new orders for the second time in three months after getting its finances back on track.

The firm rose to the top of the November rankings with a haul of 14 jobs totalling over £200m.

This recent run of new work has lifted Kier up through the annualised rankings from around 13th to sixth position in six months.

As the year comes to a close Winvic, ISG and BAM are jostling for pole position at the top next month’s 2021 league.

Click for full tables

According to data collected by information specialist Barbour ABI, Wates took the biggest contract in November, securing a £160m deal for a high containment bioscience laboratory at Public Health England’s science hub in Harlow.

Among the other big awards, Mace was confirmed for developer Landsec’s £140m overhaul of Portland House in Westminster, including a 15 storey extension beside.

Henry Construction is in line for Southampton’s former Bargate shopping centre redevelopment with over 500 homes for developer Tellon Capital. Work on a £132m project next to the city’s medieval walls is set to start in January.

In Scotland, Galliford Try’s Morrison Construction has been teed up to deliver a £100m golf resort, hotel and spa in the in the Dundee and Angus region.

In Maidenhead, J J Rhatigan won the £115m job to deliver the first four of six planned blocks for a 3.5-acre mixed-use scheme set to revitalise Maidenhead town centre. Work has just got underway on The Landing build to rent project.

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Site labour rates have hit an all-time high in London as pay across the country continues to rocket.

Analysis by construction payroll specialist Hudson Contract showed average weekly earnings increased by 1.8% to £944 in November – the highest pay levels on record.

Compared with the same period last year, earnings increased by 4.7% while earnings in the capital rose 6.1% to hit £962 a week.

Ian Anfield, managing director, said: “Our analysis shows we are back in the normal cycle where the industry as a whole works more hours in the run-up to Christmas.

“Storm Barra may have lost us a few days and contractors are fighting to get the materials they need but we are still within the most productive time of the year. The festive season is coming up and people know January will be slow with bad weather.

“The strong performance in the South West and Wales reflects the increasing investment in housing and infrastructure as part of the government’s ‘levelling up’ agenda.

“In London and the South East, growing demand for new housing and home improvements is feeding through to labour requirements and rates are catching up.

“Looking ahead, the removal of the red diesel rebate in April will hit groundworks contractors and quarrying companies the hardest and likely drive up material prices across the construction industry.

“The smaller and more agile firms on short-term contracts are able to react quickly and put their rates up as are the self-employed.”

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Alongside interactive contracts leagues and daily tender invites, it helps you make informed business decisions with coverage of breaking economic news, latest workload and tender prices forecasts.

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Construction output fell 1.8% in October representing the largest monthly decline since the pandemic sent construction off a cliff edge in April 2020.

New work fell 2.8% from September to October while repair and maintenance remained unchanged.

At the sector level, the main contributors to the decline in monthly output were infrastructure and private new housing, which decreased 7.1% and 4.4% respectively.

These falls  were partially offset by increases in private industrial and public other new work of 9% and 7% respectively.

Anecdotal evidence suggests that product shortages caused by supply chain issues leading to subsequent price rises in raw materials such as steel, concrete, timber and glass, were an important reason for the decline.

The latest fall meant the level of construction output in October remained 2.8% below the February 2020, pre-coronavirus level.

Mark Robinson, group chief executive at procurement body SCAPE said:“October witnessed the peak of the fuel crisis, port delays and a shortage of HGV drivers.

“The impact these have had on existing supply challenges, combined with ongoing labour shortages, mean that it’s no surprise that output has taken a knock.

“A potential new wave of Omicron cases and the introduction of restrictions to curb it – on top of ongoing concerns around inflation – mean that 2022 is also likely to be characterised by challenges.

“Allowed to go unchecked, these developments will only exacerbate existing labour and supply shortages, which will significantly dampen the sector’s ability to pursue further growth and continue supporting the UK’s economic recovery.”

The UK’s big five MMC builders have teamed up to form a new trade body to accelerate the growth of the modular sector.

Trade body Make Modular brings together leading modular housing manufacturers: TopHat, Urban Splash, Ilke Homes, Laing O’Rourke, Legal and General Modular.

It is being supported by the wider manufacturers body Make UK.

Stephen Phipson, CEO of Make UK, said:“Modular housing could certainly play a significant part in helping local authorities deliver the challenging home building targets set for them by Government.

“But to make real significant progress, modular housing needs to have equal access to land for construction with many sites still favouring traditional modes of construction.

“Modular also needs to have the weight of Government procurement behind it using a joined-up approach including education, defence and housing to build much-needed scale the UK’s modular industry.”

Together the member firms claim to have created more than 2,000 new jobs during the last three years.

They aim by moving people off-site and into clean, safe, modern working conditions volumetric to rebuild the construction workforce bringing up to 50,000 new younger people into the industry.

Make Modular members are planning to help solve the country’s housing crisis by delivering 75,000 affordable homes before the end of the decade, with a combined capacity to produce a new home every two hours from their factories.

Modular housing manufacturers are also keen to accelerate the development of building regulations to match a new, more ambitious new normal when it comes to quality and energy across construction as a whole, driving forward the world’s biggest challenge of climate change.

Dave Sheridan, Chair of Make UK Modular said: “Modular housing has grown rapidly in the last few years. The establishment of our own trade body is the crucial next step in this process.

“As a natural partner to Government to solve the housing crisis, deliver the levelling up agenda, and combat climate change Make Modular will accelerate and advance the MMC agenda through one strong voice rather than a series of disparate ones.”

Gateshead-based contractor Tolent is preparing to start the first phase of works on the £50m Brett Wharf development.

The prominent site on Gateshead’s quayside will create 269 one and two-bed apartments for rent, as well as commercial space, flexible offices, coffee shops and restaurants.

Specialist remediation works began last month to clean up the former oil storage depot site, which is expected to continue until spring 2022.

Following these works, Tolent will then begin the main construction work on behalf of client Edmond de Rothschild Real Estate Investment Management (REIM).

This scheme also marks the latest collaboration between Tolent and Newcastle-based DPP Planning.  Having secured planning permission for the original development, DPP has been retained by REIM and Tolent to manage post-decision planning requirements, which includes the details on managing the groundworks and areas such as decisions over the final materials and signage.

Steve Church, contracts manager for Tolent, said: “This is a hugely significant project for the city and we’re delighted to be a part of the ongoing regeneration of Gateshead’s quayside.”

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