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Major Carillion shareholder considered suing directors

February 19th, 2018 No comments

An investment giant who held a 10% stake in Carillion considered suing the collapsed contractor over losses before its demise.

Kiltearn Partners told the ongoing Parliamentary enquiry into Carillion’s collapse that they had “considered participation in civil legal action against Carillion with a view to recovering a proportion of its clients’ crystalised losses.”

Kiltearn held 10% of the company’s shares in February and May 2017 ahead of the eventually-fatal £845m profit warnings and provisions in July 2017.

Klitearn told MPs that Carillion’s published information, including historic annual reports, could “no longer be considered reliable and consequently no effective assessment of its finances could be made.”

The MPs heard that other investors were “fleeing for the hills” while Carillion and its auditors were insisting things were still going well.

Rachel Reeves MP, Chair of the Business, Energy and Industrial Strategy (BEIS) Committee, said: “Investors spotted that Carillion was heading for disaster and fled.

“The company had unsustainably high levels of debt, weak cash-generation and was saddled with a widening pensions deficit.

Carillion’s annual reports were worthless as a guide to the true financial health of the company.

The fact that it was impossible to get a true sense of the assets, liabilities and cash generation of the business raises serious questions about Carillion’s corporate governance.

KPMG will have to explain why they signed-off on accounts which appeared to bear so little relation to reality.”

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Styles & Wood wins £38m Liverpool India Buildings fit-out

February 14th, 2018 No comments

Styles & Wood Group has been awarded a contract to deliver the fit out and refurbishment of the iconic India Buildings in Liverpool on behalf of its client Shelborn Asset Management.

Architect Falconer Chester Hall drew up the revamp plan


The works consist of a Category A fit out, which involves major refurbishment to the Grade II listed building including the provision of office space, remedial works and major external repairs to ensure it is viable as a fully working building.

When complete, the building will be leased back to HMRC for use as a ‘supercentre’.

 Styles & Wood was successful following a two-stage tender process and management believe that the contract, which will span a 72-week period, should contribute £38.25 million of revenue over the duration of its life.

Tony Lenehan, Chief Executive of Styles & Wood, said: “We are delighted to have won the contract to deliver this major refurbishment and fit-out project for Shelborn Asset Management and are confident that we can contribute to the creation of an exciting state of the art workplace environment for HMRC. 

“India Buildings is one of the most iconic buildings in the North West and will provide an important contribution to the Government’s National Hubs Programme.  It is testament to our unique skills and capabilities in that we are able to support this national programme at a strategic level.”

HMRC’s presence will account for around 270,000 sq ft, occupying space over 10 floors. Staff will move in from 2019. Other government departments will also occupy space at the building.

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Contractors wanted for £650m power plant

February 13th, 2018 No comments

North London Waste Authority (NLWA) is holding an industry open day for potential suppliers on a new £650m power plant.

A whole range of work packages will be up for grabs on the 10-year construction programme to deliver the North London Heat and Power Project (NLHPP) at Edmonton EcoPark.

The development on a 16 hectare site in the Upper Lee Valley will ensure the ongoing ability to dispose of waste responsibly and cost effectively for many years to come.

Companies engaged in the project should work to the highest standards of health and safety, work as a “good neighbour”, be committed to equality, diversity and inclusion, and play a positive role in skills development of their workforce.

The components of the NLHPP are:

  • an Energy Recovery Facility (ERF), to be located in the north of the site, which will treat up to 700,000 tonnes of residual waste a year and provide enough electricity to power over 127,000 homes, with some energy diverted to supply heat to local homes and businesses via a heat network;
  • a Resource Recovery Facility (RRF), to be located in the south of the site, which is where bulky waste will be separated for recycling, and will also be the location of a recycling centre for the public and businesses from 2021;
  • EcoPark House, located near the River Lee Navigation, which will contain office accommodation and a visitors’ centre where people can find out more about recycling, waste, heat, and power; and
  • demolition and removal of the existing Energy from Waste (EfW) facility, which will reach the end of its operational life around 2025.

The estimated capital costs for the project are £650m.

In advance of main construction activities, a series of preparatory works will be required to prepare the site, provide new utilities and create new site access points.

The industry open day will explain in greater detail NLWA’s proposals for the preparatory works so that interested companies can engage as soon as practicable in the plans.

NLWA will also invite views from the supplier market on the proposed procurement strategy, interfaces between the packages and risk allocations.

Procurement of the other packages will be subject to a separate market engagement exercise which will be completed at a later date.

For more information about attending visit here or fill in the registration form here

NLWA will also be keen to hear from the construction industry on ways in which this project can promote innovation, sustainability, and engagement with the local supply chain.

At this stage NLWA is primarily seeking to engage with main contractors.

Potential subcontractors to these procurements are welcome to submit their company details to info@northlondonheatandpower.london for NLWA to pass them on to main contractors.

NLWA’s strategy is to sequence construction by developing the preparatory works, then the Resource Recovery Facility and EcoPark House, and then the main Energy Recovery Facility construction, with a view to the latter being operational by the end of 2025.

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PCA launches new 2018 training programme

February 9th, 2018 No comments

National trade body the Property Care Association (PCA) has set out its schedule of professional development training for 2018.

 

The PCA has invested significant resources into developing a comprehensive portfolio of courses throughout the year in areas including condensation, damp and timber preservation, residential ventilation, structural waterproofing, invasive weed control and flood resilience.

 

Led by experts in their fields, the courses are designed to meet the needs of delegates at whatever stage in their career.

 

There are specific surveyor-led courses including surveying timber and dampness in buildings, surveyor in structural waterproofing, control and eradication of Japanese knotweed and property flood resilience.

 

Courses are also available for office-based staff, or those at technician level, who will benefit from gaining an understanding of their industry and the work carried out by their colleagues in the field.

 

Training can also be used as part of foundation study for a number of widely recognised professional qualifications. These include Certificated Surveyor of Timber and Dampness in Buildings (CSTDB), Certificated Surveyor in Structural Waterproofing (CSSW) and Certificated Surveyor in Japanese Knotweed (CSJK).

 

Jade Stocker of the PCA’s training team, said: “The 2018 training prospectus contains new courses and qualifications, as well as training and exams that are now established as cornerstones of professional credibility and recognition.”

 

A downloadable copy of the prospectus is available at www.property-care.org/training-qualifications/

 

Print versions can be ordered from jade@property-care.org

 

The courses are run at the trade association’s training locations in Cambridgeshire – which include a purpose built practical facility, which creates an environment to apply theory where applicable.

 

Delegates can also take advantage of the PCA’s bespoke in-house training packages, which are delivered directly to clients at a location and date of their choosing.

 

Many of the courses in the prospectus are available in this format, which can provide a more cost effective and convenient option.

 

And to allow clients to focus on specific training needs for their organisation and staff, they can discuss their needs with the PCA training team, who will draw up a tailored training package which can be delivered at a location of the client’s choosing.

 

Specific information on in-house training options can be found at www.property-care.org/training-qualifications/training-courses/in-house-training-options/

 

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Carillion were chasing claims of £260m before collapse

February 8th, 2018 No comments

Carillion bosses were pursuing or planning claims for over £260m on seven contracts before the firm collapsed.

The extent of claims it planned to chase were revealed in the board’s business plan put to its banks and the Government in the board’s failed attempt to buy extra time with emergency funding.

This also revealed that it had written £1.1bn off its balance sheet due to legacy contracts, delays in settlements and PFI transactions.

The claims dossier opens an avenue for the Official Receiver, overseeing Carillion’s liquidation, to pursue although in practice claims are usually written off because they are difficult to pursue following corporate collapse.

The claims were also being contested providing no real guarantee of the estimated claw-back.

According to the business plan the board believed it could claim £43m on the delayed Royal Liverpool Hospital PFI contract, including recovery of claims from third parties of £34m following problems with concrete beams on the project.

Its other legacy hospital, the Midlands Metropolitan Hospital, was targeted for completion in June 2019 because of problems with building services on the project.

The report reveals that the board was predicting it could recover an Aecom claim of £10m by June this year.

On its Aberdeen Western Peripheral Route three-way joint venture project Carillion said it hoped to recover £25m from Transport for Scotland by this summer and further cash of £15m from designers and insurance by the end of £2018.

Carillion also believed it could recover £16m from its phase one residential project for the Battersea PowerStation development, which was delivered nearly a year late.

On its downtown Doha project in Qatar, the board reported that it had agreement from Msheireb Properties for extension of time claims amounting to £97m.

Meanwhile the Government has revealed that it has already spent £150m on financing the wind down of Carillion.

The cash has been used by the Official Receiver to keep some services running, and for legal fees.

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ARCHITECT PROMOTES FOUR TO ASSOCIATE DIRECTOR

January 30th, 2018 No comments

Midlands architectural practice maber has appointed four new associate directors at its Nottingham, Derby and Leicester offices.

They are Andy Purvis and Leo Ward, both based in Nottingham, Lee Smith in Derby and Tim Boxford in Leicester.

The promotions are as a result of maber’s continued success and a string of major instructions on significant projects across the UK. The company’s business plan sets ambitious growth targets, and the strategy is to give key individuals a stake in the business in order to encourage long term commitment to the company. The practice, which was originally formed in Nottingham 35 years ago this year has always relied on organic and sustainable growth driven by a motivated team. This ethos is embedded in each of its five offices, which include Birmingham London, Derby and Leicester, as well as its headquarters in Nottingham.

Managing Director Mark Hobson said: “These appointments are in recognition of the significant contributions that all four have made to the success of the practice. They also strengthen our accountability structure and provide more resilience on projects for the benefit of our clients. Perhaps most importantly, they add new lifeblood to the management team, which will help to ensure our continued growth and success.”

Lee Smith joined maber in 2005 and heads a design team that has delivered successful commercial and education sector projects. 

Andy Purvis joined the practice in 2004 and describes himself as a design-driven architect.

Leo Ward came to maber in 2011, having previously worked in London, and now works with a small team heading up projects.

Tim Boxford joined the practice in 2012, having previously worked elsewhere in the East Midlands, Birmingham and New Zealand.

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Caddick takes over from Carillion on £154m residential tower

January 29th, 2018 No comments

Caddick Construction has taken over from Carillion on the £154m Angel Gardens scheme in Manchester.

Caddick is the sister company of Moda who are developing the scheme with Apache Capital.

It is one of the first major private jobs to restart on site following Carillion’s collapse.

Caddick will be directly hiring 20 former Carillion employees and the move will save around 500 jobs on site protecting around 30 subcontractors previously working under Carillion.

Angel Gardens is one of the country’s biggest residential schemes outside of London and Caddick Construction will now act as construction manager to deliver the 35 storey, 466 home build to rent (BTR) project.

Carillion started work on Angel Gardens in January 2016.

Andrew Parker, director of projects at Moda, said: “We have had contingency plans in place for some time and wanted to prioritise saving jobs, as we hugely appreciate the critical role played by the main subcontractors and small businesses that support major projects.

“We have always remained close to the key subcontractors and suppliers throughout the process and this has proved to be an essential part of the solution to keeping Angel Gardens on track.”

Adrian Dobson, commercial director at Caddick Construction said: “The fast and effective takeover of this complex project is testament to the strength and depth of our team.

“We are fortunate that our construction team has been able to step in and take this project forward within two weeks and are delighted that so many key Carillion employees elected to join the group, as this really strengthens our team in the North West.”

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Carillion collapse to cost Balfour Beatty £45m

January 18th, 2018 Comments off

Balfour Beatty and Galliford Try have been left counting the cost of Carillion’s collapse with big hits on the Aberdeen Western Peripheral Route project.

Carillion was in joint venture with the duo on the £550m contract, which they are obliged to complete.

The current estimate of the extra cash contribution outstanding from Carillion to complete the project is £60-80m, of which any shortfall will be funded equally between Balfour and Galliford.

Both firms said they were discussing the position urgently with the Official Receiver of Carillion and Transport Scotland, to minimise any impact on the project.

Balfour Balfour, which was also working with Carillion on the £1.4bn A14 in Cambridgeshire and the £200m M60 Junction 8 to M62 Junction 20 scheme, estimated its cash hit would be in the range of £35m-£45m in 2018.

This morning Balfour issued a statement saying it would continue to work with its customers and would meet its contractual commitments.

Balfour said the profit impact of Carillion’s compulsory liquidation would be recorded as an exceptional non-underlying charge in the income statement.

Both Balfour Beatty and Galliford Try added that they did not have any other material financial exposure to Carillion.

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Supply chain owed £2bn by Carillion

January 17th, 2018 Comments off

Suppliers and subcontractors are owed around £2bn by Carillion.

The figure in the firm’s last results statement for “trade and other payables” highlights how hard the supply chain could be hit by the company’s collapse.

Subcontractors should be offered some protection on most public jobs by the use of Project Bank Accounts.

PBAs ring-fence money from the client and protect suppliers’ cash if a main contractor goes under.

One industry source said: “This is the real acid test for PBAs now as a lot of Carillion’s contracts will have been using them.

“PBAs have certainly helped speed up payments to suppliers but they’ve never seen a test like a firm the size of Carillion going under.”

But millions held in retentions will still be lost despite the use of PBAs.

Hundreds of suppliers have also been using Carillion’s Early Payment Facility system which has processed invoices totaling more than £400m.

Subcontractors get paid earlier that the firm’s standard 120 day terms for a small fixed charge.

Payments are also made directly from Carillion’s bankers which should see firms using the system getting the cash they are owed.

During a House of Commons debate yesterday Labour MP Kevan Jones said: “Carillion is notorious in the subcontracting industry as a company that pays its bills very late—over 90 days in most cases.

“The Minister has talked about public sector contractors that will need to be paid, but what support will the Government give small businesses that are in non-Government contracts and are still waiting to be paid?”

Minister for the Cabinet Office David Lidington said: “Companies in non-Government contracts that are not involved in the provision of public services would become creditors of Carillion.”

Ian Anfield, managing director at Hudson Contract said: “To many of us who worked alongside or for Carillion, they were affectionately known as ‘Carry on Construction’ run by accountants rather than engineers and quantity surveyors. 

“Sites were hamstrung with so much red tape they could not function as they should.”

Piling specialist Van Elle is among firms owed money having carried out £1.6m of work in December and January for Carillion on Network Rail jobs which has not yet been paid for.

Van Elle said: “The Group will engage with Carillion and its advisers (including the Official Receiver) to determine the status of outstanding payments.”

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Gilbert-Ash Appointed to £2m British High Commission Fit Out Project in Sri Lanka

January 15th, 2018 Comments off

Award-winning UK construction, refurbishment and fit out contractor, Gilbert-Ash, has been appointed for a £2m fit out project at the British High Commission in Colombo,
Sri Lanka.

Work on the 3,000 square metre building adds to the long list of international projects
Gilbert-Ash has completed with the UK Foreign & Commonwealth Office (FCO), with work undertaken in a total of 43 countries worldwide to date.

This is the second project Gilbert-Ash has completed on the British High Commission in Colombo, Sri Lanka having completed a £5m refurbishment project in May 2016.

Scheduled to take seven months to complete, the fit out project involves re-roofing the building and eradicating damage prevalent in the region due to its climate. The new roof is a
purpose-made steel roof specially commissioned by Gilbert-Ash in Birmingham to meet exacting British standard specification and will be shipped to Sri Lanka in the coming weeks.

With a population of 21 million, Sri Lanka’s economy has shown strong growth, reflecting a peace dividend and a determined policy goal of reconstruction and development. The UK accounts for about 10% of Sri Lanka’s total exports to the world and ranks as the second largest export market for Sri Lanka after the USA.

As well as shipping materials from the UK, Gilbert-Ash will also be working collaboratively with Sri Lankan construction companies to source local supplies, labour and expertise to support the fit out of the British High Commission.

Andrew Whitten, General Manager, Gilbert-Ash Fit Out commented: “We are delighted to return to Colombo for the High Commission project. Using our experience of carrying out work here previously and with the help of local Sri Lankan companies, we are looking forward to completing the project to the highest UK standards despite the harsh, humid climate.

“Through our international work with the UK Foreign & Commonwealth Office (FCO), we have built up a very skilled, rapid deployment team over the last two decades, to undertake these highly challenging projects. Every project is different and we have to know the unique business practices and cultural subtleties thoroughly in each market. This has enabled our staff to work successfully in over 43 countries which is testimony to their adaptability and can-do attitude.”

The British High Commission in Colombo is responsible for maintaining and developing relations between the UK and Sri Lanka and provides services to British nationals living in and visiting Sri Lanka.

Highly detailed design, advanced logistical planning and development goes into every

Gilbert-Ash fit out project, with the team skilled in delivering the finest quality projects on a global scale. To meet exacting specification standards befitting the UK Foreign & Commonwealth Office, the company ships many of its fit out materials around the world.

The leading construction company has specialist fit out expertise in a range of sectors including workplace, retail, leisure and restoration.

 

For more information on Gilbert-Ash visit www.gilbert-ash.com

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