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Carillion were chasing claims of £260m before collapse

February 8th, 2018 Comments off

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.



February 5th, 2018 Comments off

Having successfully completed work on phase one of the £140m Rushden Lakes development in the Nene Valley, Northamptonshire, CA Roofing Services, along with CA Group’s specialist cladding division SCS, has confirmed that it has been awarded phase two of the development.


The second phase of work consists of an additional single storey terrace, bringing the total number of terraces, featuring some of UK’s biggest high street shopping brands, to four. In addition, phase two will include a large leisure block, which will be split into a Cineworld 14-screen iMax cinema complex and a selection of restaurants serving a range of premium food and beverages.


Danny Nelson, Business Delivery Director for Winvic, explained: “Phase one of activity at Rushden Lakes saw the site really begin to take shape but this second phase will transform it into a recognisable retail, leisure and tourism destination. Our success in securing this additional phase, is due in no small part to the dedication and level of expertise on which we were able to draw, from within our own business and that of our carefully chosen partners.”


The development will feature a combination of CA Group’s Twin-Therm® built-up roof and wall system on the terrace and the company’s River-Therm® secret fix roof system, on the cinema complex, the latter being specified due to the roof pitch being as low as two degrees, necessitating the need for a standing seam system.


Shop fronts will be clad in a combination of stone rainscreen from Shackerley (Holdings) Group Limited, sourced in Italy and fabricated in Chorley, Lancashire, and CA Group’s Prime SFX Rainscreen System, which will be modified to various depths and widths in order to create a visually stunning 3D effect.


Michael Cinnamond, Divisional Manager for Specialist Cladding Systems, explained: “The combination of buildings on the project and their various functions enables us as a team to demonstrate our wide ranging skills and ability to adapt and integrate various products into the development for maximum effect. As a single source supplier, with manufacturing capability and extensive know-how in this area, we welcome the opportunity to take on and resolve the challenges presented by such a groundbreaking development.”


At a height of 28 meters, the cinema complex towers above the other buildings on the development. In order to maximise its aesthetic appeal, the upper section of the building will be clad in mirror-polished, stainless steel panels, designed to reflect the sky.


Steven Forster, Sales and Estimating Director, CA Roofing Services, added:  “We are delighted to have secured phase two of this showcase development, working closely with main contractor Winvic, a relationship which has been built on many years of successful collaboration.”


Work on the project is expected to complete in August 2018.



Aarsleff Ground Engineering wins soil nailing contract for major road widening scheme

February 2nd, 2018 Comments off

On behalf of client Torbay Council, main contractor Dyer and Butler has awarded Aarsleff Ground Engineering the soil nailing contract to stabilise the embankment as part of a major Highways widening scheme on the A3022 Brixham Road between Clayland Cross and Wilkins Drive.

The widening of Brixham Road is part of the Western Corridor scheme – one of the Local Enterprise Partnership’s portfolio of strategic infrastructure projects that will help to generate growth throughout the whole of Devon, Plymouth, Somerset and Torbay.

Specifically, Aarsleff will install 378 No. self-drilled fully galvanised soil nails, of 6m length. Aarsleff will install the soil nails with their excavator mounted hütte drill mast.

Owing to the success of the contract win, Aarsleff’s Assistant Manager for Geotechnical Jonathan Greener said “Combined with our in-house knowledge and expertise on how to stabilise a steep bank or cutting, we ensure our geotechnical solutions will cause minimal disruption to highway schemes like this”.

Aarsleff will be on site from the 29th February for an estimated 6-week programme.

Executive Lead for Community Services, Councillor Robert Excell, said: “These works show Torbay Council’s commitment to improving one of our major routes, to reduce congestion and allow for future growth within this area.

“We have been successful in obtaining significant funding from the Local Enterprise Partnership and this scheme is the final phase of the current programme of works to improve sections of Brixham Road and Kings Ash Road. This will improve transport links for both residents and businesses and promote future economic growth.”

Steve Hindley CBE DL, Chair of the Heart of the South West Local Enterprise Partnership said: “At the start of 2018 it’s great to see yet another one of our Growth Deal projects being delivered in Torbay. The widening of Brixham Road is part of the Western Corridor scheme – one of the LEP’s portfolio of strategic infrastructure projects that will help to generate growth throughout the whole of Devon, Plymouth, Somerset and Torbay.

Hindley added, “I look forward to seeing the project take shape and start to open up the route to make it more efficient for businesses to thrive in the area.”

For more information about Aarsleff Ground Engineering and its soil nailing solutions, contact the company on 01636 611140


Combatting efficiency challenges following motor failure

January 31st, 2018 Comments off

It may not happen often but electric motor failure can have serious consequences when it does occur. In fact, it can be difficult to know just what to do. As business downtime and losses mount, it’s very easy to make a panicked decision over whether to rewind and repair or replace your motor.

What should motor owners do? With new high-efficiency motors available, do they take the plunge and invest in a whole new motor altogether that promises higher efficiency levels but with significantly greater costs? Or, do they commit to an electric motor rewind or repair? While the cost is often lower, many are concerned about the potential inefficiencies that an electric motor rewind can bring — yet are these worries grounded in fiction?

This way of thinking has been commonly attributed to a small number of studies surrounding smaller motors. It is claimed that carrying out a rewind can drop efficiency by between 1% and 5% each time it is rewound. Considering the associated expense and sheer volume of energy these motors use, this is naturally concerning. However, more recent research has countered these findings.

Involving 22 new motors ranging from 50 to 300 hp, EASA and AEMT conducted a study with Nottingham University. Overall, the results found that when electric motors were rewound using good practice, there was no significant change in the efficiency of the motors. However, in some instances, efficiency actually increased. This clearly dispels the belief that a rewind is actually detrimental to a motor’s performance.

Areas of consideration

This suggests that purchasing an expensive electric motor may not be required. Of course, in cases of catastrophic failure, this may be your only option. However, it’s very important to fully evaluate your options to make sure you make the right choice in terms of operation, cost and efficiency. This can be done by asking a number of key questions, as explained by Houghton International.

Is your electric motor still suitable for its original purpose?

It is possible that your electric motor may no longer be suited to your operational needs. Review the scale of the damage alongside the requirements for the motor’s processes and duty cycles. If the motor is no longer suitable or too damaged, your option is to replace the motor.

Are the stator core and rotor in a good condition?

It’s important to check the stator core and rotor of your motor. If significant damage is present, it may be more beneficial to purchase a new motor, as depending on the extent of the damage, repairs can be costly.

If you are considering making the investment, fully weigh up your options. For example, if the lead times for the motor you need are long, you may to decide to repair rather than replace to minimise downtime.

Has any damage occurred to other mechanical parts?

A result of motor failure, damage may occur to the shaft, frame, bearing housing, and other mechanical parts. Examine the extent of the damage; you may be able to replace the affected parts at a lower cost than replacing the entire motor.

Is it an EPAct or Nema Premium motor?

If your motor has failed, it could be the opportunity you have been looking for to upgrade to a more efficient model. If you are considering making the investment, make sure you fully understand the return you’ll receive from doing so. Consider the energy savings you’ll make alongside the expected life of the motor and its hours of operation. Always consider your overall budget too, to make sure the replacement aligns with your current financial position.

Remember that if you are happy with the existing efficiency of your motor, a repair by a qualified service centre may be all you need. It will not lead to a dramatic drop in efficiency, as we have discussed.

Consider the above in-depth to ensure you make the right choice in the event of motor failure occurring.



January 30th, 2018 Comments off

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.


Caddick takes over from Carillion on £154m residential tower

January 29th, 2018 Comments off

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.”


Average British First Time Buyer Haggles Asking Price Of Property Down By £5,300

January 23rd, 2018 Comments off

A brand new study looking into the home-buying processes of Britons during the past two years has uncovered that the majority of first-time buyers in the UK secure their home for under the initial asking price, with haggling tactics, issues uncovered during home surveys and mortgage lenders valuing a property at less than an asking price revealed as some of the reasons for price cuts.

New research has revealed that first-time buyers in the North East and Wales knock the biggest values from the asking price of their properties, whilst those in London and Scotland are more likely to have to pay the asking price or higher.

The team at polled 2,589 British homeowners aged 21 and over, all of whom had purchased their first property, either alone or as part of a couple, within the past 2 years. Participants were spread evenly across each of the twelve UK regions to see how the home-buying journey differs for first time purchasers in different areas of the UK.

All respondents taking part were initially asked to state if they bought their first home for more, less or the exact asking price originally set by the sellers. The vast majority (73%) had paid less than the property was originally on sale for, with a further 16% paying the asking price and 11% confessing they’d paid over the asking price to secure the sale.

Next, all those who’d paid less than the asking price were asked to reveal what they believed to be the biggest reason they secured a cheaper deal, with the most common answers as follows:

  1. The seller of my property required a quick sale – 18%
  2. The estate agent handling the sale encouraged me to offer under the asking price – 15%
  3. Issues found during home survey that prompted me to make a lower offer – 12%
  4. My mortgage lender valued the property at less than the asking price and wouldn’t lend me the full amount needed – 8%
  5. I was the ideal buyer for the property in terms of my finances/circumstances and haggled a lower price – 7%

When also asked to reveal the amount of money they’d shaved off the asking price through their negotiation processes with sellers, the average amount overall was revealed to be £5,304. The regional breakdown of these figures emerged as follows:

  • North East – £7,350 (average amount of money first-time buyer was able to cut off asking price of property) – (5.9% of the average cost of North East properties)
  • Wales – £7,150 (5.3% of the average cost of Wales properties)
  • East of England – £6,950 (4.1% of the average cost of East of England properties)
  • South West – £6,600 (3.3% of the average cost of South West properties)
  • Northern Ireland – £6,250 (5.3% of the average cost of Northern Ireland properties)
  • East Midlands – £5,550 (3.5% of the average cost of East Midlands properties)
  • North West – £5,300 (3.6% of the average cost of North West properties)
  • Yorkshire and Humberside – £5,100 (3.7% of the average cost of Yorkshire and Humberside properties)
  • West Midlands – £4,950 (3% of the average cost of West Midlands properties)
  • South East – £3,300 (1.2% of the average cost of South East properties)
  • Scotland- £3,100 (2.2% of the average cost of South East properties)
  • London – £2,100 (0.5% of the average cost of London properties)

Melissa Benedict, spokesperson for, said:

“Buying your very first home is a daunting time regardless of your situation, with everyone obviously wanting to ensure the buying process is as smooth and bump-free as possible. Traditionally, many people have been advised to offer 10% under the asking price of a property, but with small homes and flats in high demand, this isn’t always a feasible option in many parts of the country.

“The fact that the average first time buyer in the past two years has cut around £5,500 off the cost of their homes will no doubt help to ensure lower monthly mortgage repayments and a bigger nest egg of savings should any unexpected but necessary costs arise in the future.”


Aarsleff to use silent and vibration-free equipment to install sheet piled wall

January 22nd, 2018 Comments off

Aarsleff Ground Engineering has been awarded a sheet piling project that will allow the company to utilise its new Giken ECO 700S machine, allowing for the silent and vibration-free driving of sheet piles at Grovehill Depot in Beverley.

On behalf of main contractor, North Midland Construction/Building Ltd, Aarsleff will be installing 155 No. steel sheet piles, 700mm width and 12.0m in length. The sheet piles will form a retaining wall approximately 108 l/m for maximum retained height.   A long reach excavator mounted with Movax unit will handle and pitch piles to the press unit.

Owing to the challenging site conditions, and wanting to deliver a safe and successful installation process, Aarsleff suggested a Movax unit mounted on a long reach excavator be employed. The limited working room, poor state of repair of the access, and the bank slippage demonstrated to Aarsleff that it is not practical for a mobile crane to traverse, nor provide a realistic radius for lifting. By utilising the long reach, Aarsleff hope to ensure increased manoeuvrability and lower bearing pressures, all at a safe distance from the embankment, allowing the site team to work from behind the press unit where previously installed piles have increased the stability of the embankment wall.

The Movax also allows us to safely and efficiently install and extract the necessary temporary reaction piles for the Giken press. Aarsleff’s head of sheet piling John Storry said: “The Giken enables us to provide cost effective installation programmes and solutions to our clients, even in the most environmentally sensitive conditions.”

Aarsleff Ground Engineering commence works on the 29th January.


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.


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.”