AutumnNewsletter

October 09

GAP AWARDED M25 CONTRACTGAP has been awarded a contract to supply the Balfour BeattySkanska Joint Venture with general plant, equipment and toolsfor the S4 section of the M25 widening.

The £6.2 billion contract will see the widening of 4 sections of the M25.Skanska and Balfour Beatty who were awarded the work as the contractorjoint venture of the Connect Plus Consortuim will widen sectionsbetween junctions 16 and 23; 5 to 7; 27 to 30 and 23 to 27. The S4section which GAP has been awarded to supply with unmanned plant andtools runs between Junctions 25 and 30 and has a monthly running cost ofcirca £40 million per month. GAP also has joint supplier status with APlant to supply Junctions 16-19 with general plant, equipment and tools.

Iain Anderson, Joint managing Director at GAP said, “We are delighted tohave been awarded the contract to supply plant and tools to such a highprofile and exciting job. The success in securing this contract is down toour Major Account Managers, Frank Moore and Chris Wilson, who haveworked hard to ensure that the service we can provide to the project isof the highest standards and exceeds the expectations of Skanska andBalfour Beatty.”

“As a result of working on previous contracts with Skanska and BalfourBeatty, most recently the M1 Junction 13 to Bedford A421 improvements,the joint venture is confident that GAP can deliver the high qualityequipment and exceptional service that is needed to supply such acomplex and high profile job.”

GAP turned 40!On 22nd April, GAP celebrated its40th birthday. The day marked 4decades of the success and growthof the business since it wasestablished in 1969 by GordonAnderson. Today, GAP is still afamily run business, however it is ofa different scale to the day webegan to trade. Over the past 40years GAP has grown to be anationwide plant and tool hirerwith 58 depots.

The business that trades today isone that prides itself on beingindependently owned and iscommitted to providing the bestservice and reliability. Above all,family values such as trust, integrityand honesty are paramountthroughout all of GAP’s nationwideoperations.

Independent ownership providessignificant benefits - there is noshareholder liability which resultsin flexibility and a strong balancesheet, the ability to quickly adaptto changes in the economy,efficient short term decisionmaking, long term planning andcontinuity.

At GAP we should remember thatwe are committed to offering ourcustomers the highest standards ofservice, through our large,committed field sales team whooffer a personalised, hands-onservice and through our skilledteam based at both our Depotsand Head Office.

Account News Page 2

GAP GROUP AND CLUGSTON

JOIN FORCES IN KEY DEAL

GAP Group, the UK’s largest independenttool and plant hirer, has secured nationalsole supplier status for plant and toolswith Clugston Construction Ltd.

GAP beat off fierce competition from othernational hire companies to clinch the dealsupplying a complete range of small toolsalongside dumpers, excavators and compressors.

GAP who have recently secured a number ofhigh profile partnerships including the deal withClugston, are continuing to grow steadily andnow has around 70% of hire revenue comingfrom major accounts.

Ian Campbell, Major Account Manager for GAPexplained, “GAP’s continued and successfuldevelopment has enabled the firm to deliverwhat our customers want - reliable plant andtools at competitive rates, backed up with thebest service in the hire industry. Clugston havegiven us the opportunity to assist them in theirgoals to retain their leading position inconstruction, civil engineering, logistics, propertydevelopment and facilities management. Ourcultures and values are like minded; Clugstonand GAP will promote the highest standards ofsafety, act with openness and integrity andconduct ourselves in a reliable, considerate andfair manner.”

Rod Fry, Clugston Construction Director said,“At Clugston our suppliers needed to see thebenefits of becoming a vital element within theClugston Direct Supply Chain. We seek toimprove relationships within the supply chain,working hard to take out the huge costs storedwithin. In order to succeed we aim to developrelationships based on mutual trust andunderstanding. GAP Group have grasped theiropportunity with both hands and are not justcontent with taking orders, they are problemsolvers, solution finders and dedicated toproviding a real service.

The agreement went live on 1st September2009 and will run through to 31st August 2012.To kick off the new deal, GAP has rolled out anumber of road shows for Clugston ContractMangers and Site Agents to introduce them toGAP and its operations. As of 1st October allordering will be dealt with by GAP one ManagedServices.

ATKINS GOESNATIONAL WITH GAPAtkins, one of the world's leadingengineering and designconsultancies, recently signed adeal with GAP to supply nonoperated plant and tools to theHighway Services area of theirbusiness for 3 years.

GAP had previously worked with Atkinson a number of local contracts such asNorthamptonshire, and more recently theArea 6 Contract, proving their ability todeliver a consistent and reliable service.As a result, Atkins looked at setting up anational account with GAP, with the aimdelivering consistency and cost savingsthrough their supply chain.

GAP was awarded sole supplier status toAtkins Highways Services to provideunmanned plant and tools. As of 1st AprilGAP rolled out the national deal to anumber of the Atkins Highways contractsincluding, the Cambridgeshire commissionand Area 6 in the east, and Somerset,Banes and Gloucestershire in the SouthWest.

Since the beginning of the contracts, GAPhas set up a ‘one stop shop’ arrangementwith Atkins. This has involved setting uppartnering agreements with some thirdparty suppliers, for example with Clee Hillto supply larger surfacing equipment tothe Cambridgeshire commission which isoutside the normal scope of GAP’s coreequipment, and with Yeovil Hire Centresto meet the location needs of Atkins inthe Somerset and Banes areas.

Steve Cooper, Business DevelopmentDirector commented, “We are verypleased to have won this deal with Atkinsdue to them bidding for further Highwayscommissions and also hope we canenhance our relationship into otherdivisions of Atkins over the comingmonths”.

SCOTTISH WATER EXTENDSTHEIR CONTRACT WITH GAP

GAP has been successful innegotiating an extension to thecurrent Scottish Water contractwhich begun in November 2006 andwas due to expire in November2009. The new agreement will nowsee the contract run until 31stMarch 2012.

The early award of this extension istestament to the quality of service thatGAP has provided to Scottish Water andtheir partners throughout the term of thecurrent contract. George McGregor,Scottish Water Commercial ContractsManager, commented on Scottish Water’sdecision to extend their current contractwith GAP. “We have worked closely withGAP since the beginning of this frameworkagreement in 2006. GAP has been veryflexible and reliable when dealing withScottish Water or any of our contractingpartners. We are delighted to award GAPthis extension and are confident that wewill continue see the same outstanding levelof service for the remainder of thecontract term."

At the beginning of May 2008, ScottishWater showed complete trust in GAP’sability to provide a total hire solution andbecame a customer of GAP one ManagedServices.

GAP has successfully taken on themanagement of all transactions previouslyhandled in-house by Scottish Water. A hiredesk function is operated at GAP’s HeadOffice on behalf of Scottish Water andincludes items out with the scope of GAP’sfleet holding, for example, vehicle rental,fusion equipment, pumps and tankers. GAPone is fully responsible for the submissionand accuracy of all hire suppliers invoicingand manages any query to provide SW withdetailed management information thatallows them to expedite payment tosuppliers with improved efficiencies.

GAP raises safety awareness in OctoberSplit Second Safety has been very successful in helping GAP to reduce its incident rates in the last couple of years. DuringOctober and in line with the European Safety Campaign on identifying hazards and ensuring risk assessments are in place, wewill be carrying out a range of tool box talks across the country.

This is an opportunity to re-inforce the understanding and awareness for all employees and to make each and every depot asafer place to work. The topics being covered over the month are:

WEEK1: PPE WEEK 2: POWER TOOLS

WEEK 3: PLANT CHECKS WEEK 4: MANUAL HANDLING

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GAP PROVIDES SAFE USE OF VIBRATORY TOOLS WITH LAND ENGINEERINGGAP has recently implemented a vibration testing projectwith Land Engineering. The project, which has beenspecifically agreed between Land Engineering and GAP, aimsto promote the safe use of vibratory tools within bothcompanies whilst minimising the risk of Hand Arm VibrationSyndrome.

In order that Land Engineering complies with both internal and externalregulations, both companies will work together to provide realisticvibration figures for the tools available to hire.

Testing for the project began in August when Malcolm Campbell, Health& Safety Manager at GAP, used the Vibration Test meter on a variety oftools at the Kinning Park depot. As the project progresses, GAP andLand Engineering will carry out periodic testing on a sample range oftools as a percentage of fleet holding, taking into account their averageage profile.

Test results will be shared with both companies and the information willbe made available in order to enhance the safety aspects of usingvibratory tools. Both companies agree that, once complete, the projectwill promote a safer working environment for their operators andimprove the current maintenance process where needed.

GAP IS FIRST TO ADD ENVIRONMENTALLY

FRIENDLY DRIP TRAY TO FLEET

GAP has set up a deal with Manvers Engineering to be one of thefirst hirers to intorduce a new environmentally friendly drip traytheir fleet.

The EcoTray which is manufactured and patented by Manvers Engineering underthe registered trademark Plant Nappy® is an innovative, new product designed todeal with spill containment in an environmentally friendly way.

The product works by capturing any spillage on a filter which is protected by apermeable top. The oil or fuel remains captured inside the liner whilst allowingthe free passage of clean water but not the contaminants. This methodovercomes the problems of overfilling drip trays whilst avoiding possibleprosecution or fine for contamination of ground and water.

GAP Group Managing Director, Douglas Anderson said, “GAP is delighted to bethe first hire company to introduce this new and innovative product to our fleet.As environmental credentials become ever more important, we are continuouslylooking to expand our environmentally friendly range of products and theEcoTray fits the bill perfectly.”

GAP will be visiting their customers to promote the product over the next fewmonths. Scottish Water has already shown a keen interest in the product and islikely to follow in the footsteps of the Olympic Delivery Authority, making theproduct mandatory for all pumps and generators used on site.

GAP WINCHES UP FOR NEW CONTRACTSGAP has been adding to their fleet of cable winches over the past fewmonths as a result of winning new business on a variety of contracts. Theorders placed with TT (UK) for the Cable Winches are in excess of £400k.

Previously, GAP sourced the 3 Ton Cable Winches from SEB. However, due to thegrowing demand for the 4 Ton model, GAP is currently sourcing the product fromTT in Germany.

Ken Stewart commented "We have a fleet holding of over 75 Cable Winches,both 3 Ton and 4 Ton models, 40 of which have been purchased over the past 2years. The TT-supplied Grundowinch KW4000 is now our model of choice andwe have the added flexibility in offering our valued customers this model with orwithout electronic printers and data loggers, depending on their application.

Ken added "We have a long-standing relationship with TT. When I visited theirmanufacturing facility, close to Stuttgart in Germany, a few years ago, I was veryimpressed with the overall build quality of their products, which also includes theGrundomat moles which we currently purchase. The recent purchase of the 4 TonCable Winches represents a significant investment for GAP as well as one whichwill deliver customer satisfaction".

Procurement Page 4

TRAFFIC LIGHTS CHANGE TO GREENGAP has recently introduced new environmentally friendly traffic lights to theirfleet. The product, manufactured by Pike Signals, enhances GAP’s environmentallyfriendly product range and gives our customers the opportunity to show theirenvironmental credentials too.

The XLEclipse Traffic Light Set is a solar powered unit where photovoltaic solarpanels are used to re-charge the batteries giving up to 3 months continuousrunning time. Even if the panels were removed or vandalised the batteries wouldprovide power for at least 20 days running. GAP has the option to link the solarpowered unit to Pike`s text messaging system to advise us of low battery statusand bulb failures thereby reducing site visits and associated maintenance costs.The unit requires no fuel and produces no exhaust emissions.

GAP Community Page 5

WORKING ON THEEDINBURGH TRAMS

GAP has been supplying equipment tothe work being carried out on the£512 million Edinburgh Tram project.Due for completion in 2012, the tramline will run from Edinburgh Airport,through the city centre and finishing inNewhaven.

The tram line, once complete, willimprove conjestion and reducepollution in the city.

Many of GAP’s customers have beenworking on the project includingCarillion, MacKenzie and BilfinngerBerger.

IT’S A KNOCKOUT!The GAP Gladiators, whichincluded, Iain Anderson, FrankMoore, Paul Cruse, Doug Fletcher,Ian Campbell, Danny Shaw, MarkAnderson, Elaine Russell and BobTulloch, took part in a chairty eventheld by Balfour Beatty UtilitySolutions.

The ‘It’s a Knockout’ event, whichwas held at Derby Rugby FootballClub, raised around £15,000 fortheir two charity partners, Actionfor Children and The Prince's Trust.

Celebrity presenter Keith Chegwinhosted the family fun day where theGAP Gladiators took part in the1970's games event, including thelegendary large inflatable obstacles.

SUPPORTING THE SCOUTSGAP has shown their support to thelocal community by providingequipment to the Scout InternationalJamoboree.

The event which attracts Scouts fromall over the world was held at WinsorGreat Park in July.

The GAP depot in Reading supplied 4air movers for the pot hole simulatorat the event free of charge.

KILMARNOCK APPRENTICE SCOOPS TOP AWARDJonathan Fleming, Kilmarnock depot apprentice,was named top apprenticein the first year plant mechanics category.

Jonathan, 18, was one of fourteen apprentices from all over Scotland to receive anaward at the recent National Construction College presentations in Renfrew.

Guest speaker at the ceremony was former Scotland manager, Craig Brown, CBE,who spoke to the students and their guests about how passion, drive andenthusiasm could help them achieve their goals.

The college is the training division of Construction Skills and is the largestconstruction training provider in Europe.

HR & New Appointments Page 6

Noel Carton has joined GAP as the new Sales Representative for our Kentish Town Depot. Noel comes toGAP with 3 years experience in the plant hire industry most recently with Boss Services as Area Managercovering the South East Region.

Debbie Forbes joined GAP as the new Sales Representative for our Reading Depot. Debbiehas 13 years proven experience in our industry most recently with Nationwide Access as AreaSales Manager (5years) covering the South West Region and spent 8 years with Grenham’scovering a variety of roles all sales related.

Max Cross joined the company in May as General Manager at the Birmingham depot. Max has awealth of experience in the Birmingham area with Hewden & Speedy.

Paul Maxwell is the new Sales Representative for the Portsmouth Depot. Paul comes to GAPwith 13 years experience in the industry working for Nationwide Access as Regional operations’Manager covering the South West region. Most recently Paul has been with AFI Uplift coveringoperations sales and Training covering the South Coast and London.

Darren Liscombe recently joined GAP as the Sales Representative for our Watford Depot.Darren comes to GAP with 2 years proven related experience in our industry most recently withSpeedy Hire as Area Salesman covering Central and North West London.

Vince Sussex joined GAP as the new Sales Representative for our Bristol Depot. Vince hasworked in the plant hire industry for 9 years, most recently with Brandon Hire (15 months) asField Sales Executive covering the South West Region he also worked for Stacey Construction asPlant Manager.

Dean Ellor is the new Sales Representative for our Birmingham Depot. Dean has 10 years relatedexperience in our industry most recently with Speedy Hire (3years) as Field Sales Represnetivecovering the West Midlands. Dean also worked for Hewden and Ambrose Plant.

Stuart Burgess joined us as the new Sales Representative for our Lincoln Depot. Stuart comes toGAP with 7 years experience in the industry most recently with A-Plant covering a variety of rolesincluding Sales Representative and Rental Manager covering the North Lincolnshire Region.

Phil Hartley joined us as the new Sales Representative for our Leeds Depot. Phil has 14 yearsproven experience in our industry most recently with Speedy Hire (10years) as AreaRepresentative covering Leeds and Wetherby.

Nick East

Nick has beenpromoted from SalesRepresentative(Oxford)/ RegionalSales Co-ordinator(Midlands) to Major AccountManager for Morrison UtilityServices (MUS).

Nick, who joined GAP in December2008, brings a wealth of industryexperience to the role having worked insales and operations for A Plant.

MUS has contracts with GAPthroughout the UK and is one of GAP’stop 10 customers with an annual spendin excess of £3 million.

Steve Nixon

Steve is re-joiningGAP as MajorAccount Managerwith responsibility forthe following majoraccount customers:

Colas, BAM Nuttall, BAM Plant, HSWorks, Ovalcode, Wessex Water,Wales and West Utilities, John Sisk &Son Ltd and others to be confirmed

Steve was previously employed byGAP as the Sales Rep at ourSwansea depot and has over 10years sales experience across anumber of business sectors

Ian Campbell

Ian (Sales TrainingManager) will bejoining the MajorAccount Team andwill report to ColinHaxton.

Together with the Major AccountTeam, both Ian and Colin will befocusing their efforts on growingbusiness from our major accounts.

Ian will still spent a proportion ofhis time in training our depot basedsales force, but his primaryresponsibility will be to develop newbusiness within his accountportfolio.

Major Account Team Developments