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Yearly Archives: 2021
Kier tops November contracts league
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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BAM to start £300m Gateshead arena
Developer Ask:PATRIZIA has instructed BAM Construction to work on the initial preparation works for the Gateshead arena project.
The site between the Baltic Centre for Contemporary Art, the Sage Gateshead and Gateshead College is being developed on behalf of Gateshead Council and involves some £300m of regeneration investment.
The enabling works package is a significant step forward for developing the arena and conference centre scheme which is expected to create some 2,000 jobs during construction.
Full construction work will begin next Spring.
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.
Construction site labour rates hit all time high in London
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.”
Get all the construction data and work-winning information you need
The Enquirer has introduced a new construction data page offering easy-to-access market intelligence to help your business.
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.
There is also a snapshot of current freelance labour rates and a guide to the best and worst payers within the major Tier 1 contractors.
For those looking to navigate the ever-changing world of contract and employment law, lawyers at Fenwick Elliot also give you the benefit of their expert insight.
And, of course, it’s all completely free for readers.
Click here to take a look.
Labour shortages blamed for 1.8% construction output drop
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.”
Big five modular builders form trade body
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.”
Tolent to start £50m Brett Wharf site in Gateshead
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.”
Caddick seals deal for Leeds YoYo next phase
Caddick Group has secured funding for the next phase of its £300m SOYO neighbourhood in central Leeds.
The deal with investor Federated Hermes will allow work to start on two new blocks delivering 331 build to rent homes to be operated under the Hestia brand.
The two adjoining blocks will be delivered alongside new public realm including green spaces and a pedestrian square, in the fast-evolving cultural quarter of the city.
Scheduled for completion in late 2023, the project will support 2,000 construction jobs and 14 apprenticeships in the sector during the course of the build programme, which will be carried out by Caddick’s Construction arm.
As well as rental homes, SOYO will include a new hotel, bars, restaurants, further residential and a multi‑storey car park
Leeds-based DLG Architects have been tasked with designing the buildings with reduced embodied carbon alongside high levels of insulation and renewable technologies part-powering the building.
Myles Hartley, managing director of Caddick Developments said: “Our vertically integrated business provides a wide range of end-to-end services for institutions looking to enter the market and want to work both at scale and at speed.
“By working collaboratively with others, we expect the built to rent sector to have a hugely positive impact on the UK housing market over the next decade, improving living standards for millions of residents. SOYO will be at the forefront of that ambition.”
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Taylor Wimpey CEO Pete Redfern to step down
Taylor Wimpey CEO Pete Redfern is stepping down after more than 14 years at the helm of the house builder.
Redfern will leave the business once a suitable replacement has been found.
Taylor Wimpey said is has a “robust succession plan in place” and the recruitment process is advanced with a selection process considering both internal and external candidates.
Chairman Irene Dorner said: “Pete has made an invaluable contribution to the business during his almost 15 years as CEO, including having successfully led the company through a global financial crisis and the recent pandemic.
“Pete has led a management team which has overseen the transformation of Taylor Wimpey into one of the largest housebuilders in the UK, with an industry leading landbank, a strong financial position and a clear and deliverable strategy for profitable growth. In addition, Pete will leave the business with a strong and differentiated culture he can be proud of creating.”
Redfern added: “It has been a privilege to work at Taylor Wimpey for the last two decades and to lead a business of which I am so proud, working with so many exceptional people both within the business and through our partnerships.
“The business is in excellent health and is well positioned for strong future growth. Accordingly, I am confident that now is the right time for fresh leadership as Taylor Wimpey starts the next chapter.
“Last year, having significantly increased our land buying to take advantage of land market opportunities, we have grown our landbank and set a clear path to deliver strong growth and returns over the coming years.
“I am extremely proud that Taylor Wimpey is a five-star home builder for customer service, with the highest construction quality scores in the volume house building industry and outstanding employee engagement.
“I would like to thank everyone at Taylor Wimpey for their past, current and future support.”
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Plans in for 2m sq ft Ilkeston warehouse park
Developer Verdant Regeneration has submitted plans to redevelop the former Stanton Ironworks near Ilkeston in Derbyshire into a vast industrial and warehouse park.
The firm plans to transform the 200-acre site located near J25 of the M1 between Nottingham and Ilkeston, building 2m sq ft of new build warehouse and industrial space, with the ability to deliver a single building of around 1 million sq ft.
As well as extensive remediation and re-use of a large, brownfield site, the plans for New Stanton Park include consolidation of the existing rail line and provision of new rail spur.
David Grier, of Verdant Regeneration, said: “Having acquired the site in 2020, we have worked hard across the team to quickly bring forward an outline planning application on what is one of the largest regeneration projects within the region.
“New Stanton Park offers an excellent strategic location, blending an active rail connection with strong private and public transport connectivity, plentiful labour and large power supply.
“When combined, we are confident this will result in a highly successful development with the next chapter set to positively transform and improve the area, bringing forward large-scale job creation in the process.”
With a direct and operational link to the Midland Mainline railway, the site has potential to become a key distribution point for materials being imported and exported efficiently throughout the UK and beyond.
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Firms sounded out for rebid of £250m London hospital
Guy’s and St Thomas’ NHS Foundation Trust is starting market engagement with contractors ahead of retendering its new landmark Evelina London Children’s Hospital extension.
The planned 290,000 sq ft hospital building, designed by Hawkins\Brown Architects and Bouygues-owned developer Linkcity, is to be rebid after the Trust and pre-construction services agreement contractor Bouygues agreed to part company on amicable terms.
The Trust is now asking interested firms to register before inviting tenders in March for the integrated £250m main shell and fit-out contract.
Previously Bouygues UK was in line to just deliver the shell and core for the new hospital extension.
Trust procurement chiefs said the change of scope required a fresh procurement competition. The Trust now hopes to start construction by the end of next year.
The Trust intends to utilise a hybrid design & build delivery route for the Evelina Expansion Programme. This will include fixing the shell and core through a Single Stage D&B while the fit-out works will utilise a two-stage D&B approach.
The proposed 12-storey building, which will be located on a triangular sited behind Lambeth Palace on the opposite side of the Thames to the Houses of Parliament, will be joined to the existing, award-winning children’s hospital which opened in 2005.
New extension will house 100 beds, operating theatres and spaces for patients to relax, including a roof terrace.
As capital project advisors for the Evelina Expansion Programme, Mace is running the market engagement briefing. Documents are available from the procurement website. Questionnaires need to completed by 14 January.
In advance of the main contractor works several pre-commencements works will be carried out by the Trust, including, the demolition of the existing buildings.
Professor Ian Abbs, Chief Executive of Guy’s and St Thomas’ NHS Foundation Trust, said: “Our ambitious plan to expand Evelina London will make it one of the world’s leading children’s hospitals, and enable us to provide exceptional care to many more children and young people.
“This is just the beginning of an exciting journey for us, and we will continue to put patients and families at the heart of what we do.”
The bigger and better children’s hospital, which will open in 2027.
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