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Bourne hires new engineering director
Steelwork specialist Bourne Group has appointed Denis McNelis as group engineering director to spread its reach into new projects.
Before joining Bourne, McNelis operated at a director and technical engineering manager level on significant projects across the United Kingdom, Ireland, and the UAE.
With over 16 years of experience working in design consultancy and a further 17 years in construction, he has worked on projects ranging from sports stadiums to bridges, to large scale industrial buildings and refurbishment projects including his two most recent projects, the new Abu Dhabi Airport Midfield Terminal and the iconic Museum of the Future in Dubai.
Denis brings a passion for construction across all forms of projects, while leveraging his strength in design and BIM.
Steve Govier, CEO for Bourne Group, said: “Denis has built a well-earned reputation and his appointment is aimed at ensuring that all of the Bourne Group companies remain at the forefront of the latest engineering and technology practices and are well placed to support future growth and diversification into new products and markets.”
McNelis said: “I am looking forward to working with the very experienced team at Bourne, to help expand the areas of work that the Bourne Group operates within
HSE shuts M6 job after excavator topples into trench
Health and Safety Executive investigators have shut down a section of the M6 smart motorway widening after a 13 tonne excavator was upended in the central reservation last Friday.
The excavator operator is understood to have escaped without injury but shaken after his machine toppled backwards into a central reservation drainage trench on the Costain project just north of junction 21A.
Thomas Plant had the short radius excavator on hire, which was being used by Manchester drainage contractor SGC Civil Engineering for drainage works in the central reservation area.
HSE inspectors are now understood to have shut the site down for the rest of this week to carry out an investigation into the incident.
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BAM Nuttall chief to exit after 16 months in role
Adrian Savory, BAM Nuttall’s chief executive, is stepping down at the end of the month to pursue other opportunities outside of the business.Savory spent just 14 months in the top job after around 26 years with BAM Nuttall.For the time being he is to be replaced by Ian Parish, managing director of Major Projects, who takes the role of interim MD.
Savory (left) moves on after 26 years at Nuttall with Ian Parish taking up interim role as MD
Ruud Joosten, CEO of Royal BAM Group, said: ‘We would like to thank Adrian Savory for his service and commitment to BAM over the last 26 years.
“He has held various roles in the company during this time and contributed to its success and growth. We wish him every success in his future career.”
Management team from October
Ian Parish (Interim Managing Director); Martin Bellamy (Managing Director, Regions); Alan Cox (Managing Director, Transport); Ian Phillpot (Finance Director); Richard Reddell (Commercial Director); Richard Lewis (People and Performance Director) and David McGowan (Business Excellence Director).
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Shepherd counts cost of construction exit six years on
The family-owned Shepherd Group is still counting the cost of legacy construction arm activities six years after selling the construction business to Wates.
According to latest accounts for the Shepherd Group, which now primarily covers the activities of the Portakabin business, obligations on previously completed projects by Shepherd Construction are still costing the group dearly.
This rump of the group recorded a £31m loss last year relating to the completion of a retail and residential complex in Colindale, North London and significant additional provisions in relation to claims on completed contracts where there remains uncertainty about the outcome.
The firm said it had been notified of some latent defect claims, including significant claims relating to items arising on historic building design issues, particularly in relation to cladding design and other fore safety issues.
Shepherd Construction pre-tax losses202020192018201720162015*-£31.3m-£21.4m-£13.8m-£31.7m-£9.7m-£60.6m*Shepherd Construction sold on 30 September 2015 to Wates. Liabilities retained by group
The company no longer trades construction contracts and the accounts were not prepared on an ongoing concern basis.
Overall the group recorded a £49m profit, up from £45m on revenue slightly ahead at £348m.
During the year the modular and portable building arm increased profit by 27% to £81m.
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Construction bosses call on Boris to deliver HS2 Eastern Leg
A raft of construction bosses are among 63 industry leaders who have signed an open letter calling on the Prime Minister to commit to the completion of HS2’s Eastern Leg in full.
Leading rail, construction and engineering firms from the High Speed Rail Group (HSRG) and Railway Industry Association (RIA) have written to Boris Johnston as speculation mounts on the future of the route that will run from the West Midlands through to Leeds.
The letter states that “businesses have invested millions in people, in skills, in technology and in hardware to deliver HS2.
“To date, 16,000 people have been employed on the project, including over 500 apprentices. We had expected this to grow to 34,000 at peak construction, including 2,000 apprentices, over the coming years.”
It adds: “The question is often asked why infrastructure projects in the UK seem to cost more than elsewhere. And a big part of the answer lies in our propensity in the UK to review and re-open questions which had already been settled.
“We are indulging in a debate on HS2 scope and design (again) well after construction has commenced. It was understandable that upon taking office in 2019 you reviewed HS2. But having taken the decision to deliver it in full, changing that now would have a devastating impact on confidence in the sector and drive higher costs as other elements would have to be redesigned.”
Tom Wadsworth, Director at the High Speed Rail Group, said: “Last year the Prime Minister promised that HS2 would go ahead in full, including from the West Midlands to Leeds, and his own MPs have asked what he is going to do to level up if he doesn’t build the Eastern leg.
“Failing to deliver HS2 in full would undermine the Prime Minister’s commitment to levelling up and to net zero. So we are calling on the Prime Minister to reaffirm his promise to deliver HS2 in full, including the eastern leg.”
Among the signatories to the letter are Mace CEO Mark Reynolds, Keltbray CEO Darren James, Barhale Executive Director Andy Flowerday, Van Elle CEO Mark Cutler, VolverWessels CEO Alan Robertson and SSE Contracting Executive Chairman Neil Kirkby.
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Equans wins £31m low-carbon Liverpool scheme
Equans, the new name for Engie’s services-led operation, has signed a £31m contract to build a 10-storey, low-carbon development in Liverpool City Centre for the Home Group.
Located on the site of the former TJ Hughes department store, Equans will construct 258 flats with ground floor retail and commercial space.
The scheme will comprise of 144 one-bedroom properties, 99 two-bedroom and 15 studio apartments – all available for private rent.
Equans has worked alongside UK Land & Property to assist with the specification and build feasibility.
All units are designed to achieve a minimum Energy Performance Certificate (EPC) rating of B, utilising a full sustainability strategy, which includes low-carbon electrical solution with supporting energy-efficiency features.
Tim Wood, Regional Managing Director at Equans UK & Ireland (North West), said: “Home Group is a long-standing partner of Equans and it’s been great to bring our expertise in delivering net zero carbon solutions to the table.”
Work is due to begin on the scheme in late 2021.
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Farrans starts 20-storey Leeds student block
Farrans Construction has started work on a 20-storey student accommodation block in Leeds city centre for client Infinity Construction Enterprises.
The development, which will be known as Live Oasis: Strato, will provide 210 studio apartments and is expected to complete in September 2023.
New tower, designed by Rio Architects, is being built on the site of Commerce House on Wade Lane
Cathal Montague, regional director for Farrans Construction, said: “This is an exciting project for Farrans, in one of the most ambitious and energetic cities in the UK at the moment, and it further cements our portfolio in the midlands and north of England.
“We are about to complete a similar multi-storey project in Coventry called Elliott’s Yard, and our client was able to see that we are experienced in delivering technically challenging projects of this nature, in a central location, with a small site footprint and using Modern Methods of Construction.”
Omar Al-Najafi from Infinity Construction Enterprises, said: “We have been operating in Leeds for many years and we know that this part of the city has been evolving from a typically office- based environment to one of high residential demand, particularly from the growing student population.
The development will push the boundaries in terms of the experience students can expect in Leeds.”
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Vital Energi lands deal to save City of London money
Vital Energi has been awarded a contract by the City of London Corporation to guarantee energy savings of over £480,000 a year and annual carbon savings of over 1,000 tonnes.
The project will be delivered through the Greater London Authority’s Retrofit Accelerator framework designed to help make London’s non-domestic public buildings and assets more energy efficient, and the works will to be funded via the Public Sector Decarbonisation Scheme (PSDS).
Vital Energi will deliver multi-technology solutions through Energy Conservation Measures, which will improve energy performance within five of the City’s most iconic buildings, including the Barbican Centre, Guildhall School of Music and Drama, and the City Corporation’s Guildhall headquarters.
Energy Conservation Measures will include pipe distribution repairs, ventilation distribution repairs, pipe insulation, Air Handling Unit EC fan retrofit, LED lighting, and metering, to reduce energy use, unnecessary heat loss and help improve comfort conditions for building users.
As well as upgrading and optimising Building Management Systems (BMS), Vital Energi will also install Vital View, which is a BMS performance monitoring system. This will help deliver continuous improvement and drive energy efficiency, carbon reduction and help enhance future projects through gaining a detailed understanding of building operations and usage characteristics.
Rob Callaghan, Managing Director of Vital Energi for the London and Southern Division, said: “Vital Energi employ a talented team of designers, engineers and financial model specialists to deliver clients real carbon savings through commercially viable solutions in terms of payback against capital spend. We don’t just do the work and hand back the building, each year we will monitor and verify the savings.
“We are delighted that the City of London Corporation has appointed us as its contractor of choice to carry out these essential works which will help decarbonise its corporate estate and build a robust zero carbon roadmap.”
City of London Corporation Finance Committee Chairman, Jamie Ingham Clark, said: “This partnership with Vital Energi will enable us to take practical, positive, sustainable steps to make our buildings more energy efficient, delivering the twin benefits of reducing carbon emissions and saving money.
“The project will play a significant role in enabling us to achieve the ambitious targets set out in our Climate Action Strategy, which commits us to achieving net zero carbon status in our buildings by 2027 and across our investments and supply chain by 2040.”
C Spencer runs up loss after revenue drops 30%
Hull-based multi-engineering contractor C Spencer Engineering Group has recorded a loss for the fourth year running after revenue plunged 30% to £46m.
The business suffered a £1.7m loss in the year to April 2021 as a result of the pandemic.
But a post year-end contract dispute settlement for £3.8m for unpaid works gave the business a major boost in funds enhancing working capital.
The successful outcome of the legal case believed to be with MW High Tech Projects UK over the Energy Works (Hull) incinerator plant should also release a further £1.25 of cash held as security for bonds on ongoing contracts.
The group entered the new financial year with secured work of £53m and a pipeline of £188m.
Chairman and founder Charlie Spencer said: “While there has been a short term, sharp disruption in activity in 2020 as a result of the Covid 19 pandemic, general market activity is expected to remain positive in all sectors with Government’s committed spending in transportation, particularly the rail sector and the enhancement of existing provision of new rail infrastructure and maintenance providing significant future construction opportunities for the group.
“The structural repair, refurbishment and maintenance of bridges also provides a strong future pipeline of opportunities in a sector where the group has earned an excellent reputation for providing innovative access solutions that provide a competitive advantage.”
He added that the group’s subsidiary Slipform Engineering was undertaking concrete core construction for several high-rise projects throughout the UK with the board expecting significant growth as its market presence develops.
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Labour shortages could last for next two years
Business leaders are warning that labour supply problems could last for up to two years and will not be solved by the end of the furlough scheme.
CBI Director-General Tony Danker called on government to to get a grip on the situation as shortages hit construction and all other industries.
He said: “Labour shortages are biting right across the economy. While the CBI and other economists still predict growth returning to pre-pandemic levels later this year, furlough ending is not the panacea some people think will magically fill labour supply gaps.
“These shortages are already affecting business operations and will have a negative impact on the UK’s economic recovery.
“Other European countries are also experiencing staffing shortages as their economies bounce back. In the UK, many overseas workers left during the pandemic and new immigration rules make replacing those who left more complex.
“Building a more innovative economy – coupled with better training and education – can sustainably improve business performance, wages and living standards. But transformation on this scale requires planning and takes time.
“The Government’s ambition that the UK economy should become more high-skilled and productive is right. But implying that this can be achieved overnight is simply wrong. And a refusal to deploy temporary and targeted interventions to enable economic recovery is self-defeating.
“Using existing levers at the UK’s control – like placing drivers, welders, butchers and bricklayers on the Shortage Occupation List – could make a real difference.
“The Government promised an immigration system that would focus on the skills we need rather than unrestrained access to overseas labour. Yet here we have obvious and short-term skilled need but a system that can’t seem to respond.
“Great economies like great businesses can walk and chew gum. We need short-term fixes to spur recovery and long-term reforms to change our economic model.”
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