News

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 www.web-blinds.com polled 2,589 British homeowners aged 21 and over, all of whom had …

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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 …

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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 …

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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…

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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-…

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The Financial Conduct Authority has launched an investigation into company announcements made by Carillion in the lead up to its recent profit warnings. A brief Stock Exchange update this morning said: “The Financial Conduct Authority  has notified Carillion plc that it has commenced an investigation in connection with the timeliness and content of announcements made by Carillion between 7 December 2016 and 10 July 2017.  “Carillion is cooperating fully with the FCA.” Carillion issued a positive trading update on December 7 2016 where it predicted a rise in operating profits. On March 1 2017 it published positive results for 2016 as group revenue jumped 14% to £5.2bn producing group pre-tax profits of £147m. Chairman Phillip Green said in the results: “Given the size and quality of our order book and pipeline of…

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Just 35 firms have signed up to the Government’s payment charter nearly four years after it was launched to great fanfare as the solution to payment abuse in the supply chain. The Construction Supply Chain Payment Charter initially committed firms to pay within 60 days on both private and public sector work. From this month the payment pledge tightens up, shifting signatories to 30 days to meet the Government’s target of bringing construction into line with other industries. But just three main contractors and two private clients have signed-up to date, with the last new firm committing to the payment pledge last August. Now specialists subcontractors are writing the Charter off as a non-starter, despite it being pushed by the Construction Leadership Council and pan-industry trade body…

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As we head into 2018, only one factor of the economy is certain – our uncertainty about the implications of Brexit is making a significant impact on the UK construction industry. General optimism in the industry has been at its most subdued since mid-2013, while the latest estimates from the Office of National Statistics suggest that construction output contracted 0.5 per cent in third quarter of 2017, having shrunk by 0.3 per cent in the previous three months. Duncan Brock of the Chartered Institute of Procurement and Supply said, “It appears that the continued fall in commercial activity was testament to Brexit-related uncertainty on the horizon and the sector’s fear about the direction of the UK economy as clients still hesitated to spend on bigger projects.” Howard Archer of …

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The Survey Association issues new guidance on specifying a utility survey TSA’s latest reference documents provide clarity for clients on PAS 128 compliance A new and definitive guide to specifying a PAS128 compliant utility survey, issued by The Survey Association (TSA), aims to demystify a complex technical area and improve communication between clients and practitioners. The Essential Guide to PAS128 2014 Utility Detection, Verification and Location, and the companion Mini Guide, are the first documents of their kind to include practical advice for clients on using PAS 128 to prepare the appropriate tender documents for their project. Written by TSA’s technical committee, with input from across the industry, the free-to-download guidance also provides clarity for professionals interpreting PAS 128 to deliver best practice utility surveys at the right price. …

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A brand new study conducted on behalf of a home insurance provider has revealed that the majority of young Britons would rather cancel their home contents insurance policies over less important financial outgoings, such as regular takeaway coffees, Netflix and gym subscriptions. As many as two thirds of young renters in the UK without home contents insurance believe the policies are ‘pointless’ for those who don’t own a home; with the majority believing that they will never need home insurance as they deem their homes to be safe. The team at www.CoverBuilder.co.uk polled 2,398 UK adults aged 18-30 as part of research into the perceptions and attitudes of young Britons towards protecting their valuables. All those taking part lived in a rented property, either by themselves …

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