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Nmcn Building division fails to find buyer as 80 jobs lost

Administrators at nmcn have been unable to sell the group’s Building division leading to 80 redundancies.

Grant Thornton were appointed administrators of the contractor in Wednesday and have since overseen the sale of the Water, Telecoms and Plant divisions safeguarding more than 1,500 jobs.

The Infrastructure division is also set to be sold within the next few days.

But joint administrator Rob Parker said: “It is, however, with regret, that due to a number of legacy contract issues, the Joint Administrators have not been able to achieve a sale of the Group’s Buildings division, which together with some other central roles in the Group has resulted in the redundancy of 80 people.

“The Grant Thornton team will work with the employees affected to support them through this process”

News of the redundancies came as CEO Lee Marks posted a message to all employees.

He said:  “The past few days, indeed weeks, have been very hard. I joined nmcn at the end of May with a clear set of objectives: put simply, to make the business a success – a company to admire, and a great home for our talented and dedicated workforce, loyal customers and suppliers. To achieve great things and make the company a fun and engaging place to work.

“Alas, despite the very best of efforts of us all, we ran out of time. You learn a lot in adversity and I will never forget the day I had to tell 1800 people to go home, placing them at risk of redundancy. Anyone with an ounce of human compassion knows just how worrying that is for my many colleagues and their dependant families. I feel for all of you and I am only sorry I could not have done more. ‘Gutted’ might be a better phrase.

“When the inevitable seem the only plausible outcome, we kicked into ‘plan B’. A plan to save as many jobs as we could and save the business. We have been working round the clock (literally) to achieve that outcome, and it is fantastic that today we have been able to formally announce that our Water (and specialist companies – Lintott, Fabrications and Asset Security), Telecoms, Plant, transport and accommodation divisions have transferred into the new ownership of Galliford Try and Svella, respectively.

“We are working hard to conclude a remaining deal for one of our other divisions which should transact in the next couple of days.

“Whilst this was not the outcome I had planned, I am immensely pleased that we will have saved the vast majority of jobs and provide continuity for our customers. I would thank our customers for their forbearance and support.

“Sadly, as in all these situations, there are some colleagues who will not be as fortunate and I would ask for sensitivity at this difficult time and I wish them luck in their new pursuits.

“Finally, I would like to thank my leadership team for their support, and the team at Grant Thornton for working with me to achieve this largely positive outcome.

“But most of all, I would like to say a huge thanks to my many and wonderful colleagues at nmcn. We do not all go on together, but I am certain you have a bright and exciting future. It was my pleasure to be your captain and we played in a good team. Sometimes though, we do not win every match. That does not mean we should not give up hope of finishing top. You have the capability to be the best. Work hard, seize these new opportunities and do great things. All the very best and keep in touch.”

 

 

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Anti-construction protesters face six months in jail

Tougher penalties for protesters will include new measures to protect key construction sites.

Home Secretary Priti Patel revealed a raft of tougher penalties and new police powers in the wake of chaos caused by Insulate Britain members.

The measures will also cover campaigners who try and disrupt major infrastructure jobs like HS2 which have been hit by demonstrations.

Penalties for blocking construction will see a new offence of obstructing the construction of authorised infrastructure introduced carrying a maximum penalty of an unlimited fine, six months’ imprisonment, or both.

The government will also propose amendments to deal with the “lock-on” tactics used by groups including Extinction Rebellion and Insulate Britain where demonstrators physically attach themselves to objects.

A new offence will be introduced to criminalise the act of locking-on and new stop and search powers will allow police officers to search individuals and seize items that are likely to be used for lock-ons.

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Bouygues wins £70m first phase of science centre

Carmarthenshire County Council has appointed Bouygues UK to design and build the £70m Zone One of its Pentre Awel science and innovation centre.

The council has led an extensive tendering process via the South West Wales Regional Contractors Framework for firms to deliver the scheme.

Zone One will feature education, business, research, leisure and health facilities to provide social and economic benefits to people in the region.

The council and Bouygues have now entered into an initial pre-construction period ahead of work starting on site next year.

During this period, further design will be undertaken together with preparation and submission of detailed planning information and preparatory works on site.

Property and construction consultants Gleeds will manage the build contract, supported by design and planning experts Arup.

Simon Barnes, Pre-Construction Director for Bouygues UK, said: “We are delighted to have been selected as preferred bidder on the Pentre Awel project, a first of its kind project in Wales. Our experience in large scale projects like this will ensure the successful delivery of the scheme.

“We are pleased that Carmarthenshire County Council is aligned with our ambitious vision to bring a positive social impact alongside this project. Together with our supply chain we look forward to bringing lasting value to the local community.

“Through engagement with regional learning and skills partnerships, we will also help deliver learning and career opportunities. This project will also benefit from using a local supply chain with particular focus on small and medium size enterprises.”

The Pentre Awel project includes integrated care and physical rehabilitation facilities, a well-being skills centre which will focus on health and care training, a clinical delivery centre to deliver multi-disciplinary care, and a new state-of-the-art leisure centre, along with landscaped outdoor public spaces for walking and cycling.

A hotel, a range of social and affordable housing, assisted living accommodation and a nursing home are being planned for later phases of the scheme.

 

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

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”.

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Nmcn goes into administration

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.”

A spokesperson for Grant Thornton UK LLP said: “I can confirm we are working with the Directors of the Group and parties who have expressed an interest in the business in an attempt to maximise the position for its employees and creditors. We will provide a further update on these discussions when we are able to.”

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Track workers dive clear from train after safety blunder

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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Construction arm loss drags on Eric Wright profit growth

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.”

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

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.

HS2 tunnellers clock up first mile under Chilterns

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.

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Two hurt in David Wilson Homes site fire in Stockport

Two workers were taken to hospital following a fire at a David Wilson Homes North West site in Stockport on Tuesday.

Merseyside Fire & Rescue managed to get the blaze under control after three hours.

The brigade said the fire involved an external gas main that spread to three houses under construction.

Two people were taken to hospital with minor injuries following the incident at the Pavilion Gardens development in the town.

A David Wilson Homes North West spokesperson told the Liverpool Echo: “There was a small fire in an unoccupied building under construction at our Pavilion Gardens development in Southport today.

“We would like to thank the emergency services for their swift response in making the site safe.”

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