CECACommunicates

Issue 50March 2008

CECA leads dialogue in attempt to overcome apprenticeships’ barriers

Too few apprenticeship places are being offered by contractors to meet demand. Last year nearly 25,000 applicants had to be turned away as the industry was unable to accommodate them. CECA is working with the Cross Industry Ap-prenticeships taskforce to increase the number of apprenticeships available by helping contractors overcome the percep-tion that taking on apprentices will create problems around their health & safety procedures when taking young people on site.

To see CECA’s advice to members, please go to page 7 or click here

In This Issue:2 Chairman’s Column 8 Public Affairs 3 Regional Focus - Scotland 10 Legal Briefing4 Guest Comment - Stewart Stevenson MSP 11 Industry Info5 Safety News 11 Other News7 Skills News 12 Director’s Comment

CECA Scotland reaches 100 membersCECA began in 1997 with 26 members in Scotland but 11 years on has now reached the magic 100 when they welcomed W. B Grieve Groundworks of Aber-feldy, Perthshire into membership in January. This mile-stone confirmed CECA (Scotland)’s position as CECA’s largest region in terms of members.

Workload Trends SurveyLatest CECA survey shows continued positive results in workload, despite fears of the impact of the credit crunch. Go to page 8 or click here.

For more information visit the CECA website www.ceca.co.uk

To mark the occasion Chairman Charlie Frize (right) present-ed a commemorative certificate to Stewart McNeish, General Manager of W. B Grieve Groundworks.

James Strang Celebrates its CenturyTo mark the achievement of 100 years in business CECA (Scotland) Chairman Charlie Frize was delighted to present the Directors of James Strang Ltd. of Denny with a com-memorative certificate at the recent CECA (Scotland) Dinner in Glasgow. Although originally a fencing contractor the firm branched out into civils nearly 20 years ago to meet client demands and now also operates the surfacing firm, R Lind-say Contractors Ltd of Kirkcaldy, another CECA member.

L-R Hamish Rodger (Director of James Strang), Charlie Frize (Chairman of CECA Scotland) and Barclay Dou-gall (MD of James Strang).

Highways Agency Business PlanWe are within weeks of the Highways Agency (HA) publishing its business plan for 2008/09 which will set out how it proposes to run the strategic road network in England. The HA is tasked with managing, maintaining and improving England’s motorways and trunk roads and has one of the most significant roles to play in combating congestion, which Eddington estimated costs the country between £7-8bn per year. When you have a road network so congested that it costs the UK such a considerable sum,

the emphasis should be on finding the means to relieve it, yet road building is an unpopular solution. A YouGov opinion poll in November 2007 showed that 62% of the public would prefer the Government to invest the transport budget in public transport, with only 30% in favour of road building. No one disagrees that safe and reliable public transport is hugely important both socially and economically but without well-maintained and modern infrastructure to run on it will not function efficiently. Public transport is not the solution to transport gridlock on its own, any more than road pricing will, single-handedly, create more space for motorists by making it less financially attractive to drive. The problem must be addressed holistically. The Government has put forward hard shoulder running as a way of adding capacity to motorways without physically widening them. We need a rational approach to this. Hard shoulder running is unlikely to be a good solution on every route and I can’t help feeling it’s a gimmick that is being pushed to save money on widening overburdened roads. As Eddington recommended, the most effective solution to congestion will be found in a mix of methods including bet-ter use, elements of road pricing, and targeted infrastructure improvements. Accordingly, the HA business plan should, at least, include a commitment to build more carriageway and to redevelop pinch points and bottlenecks – better use should not be limited to short term solutions. Eddington’s report, which the Government claims to be implementing, argued that small infrastructure developments targeted at the most congested areas could create exponential benefits in terms of freeing up traffic. The Government has fallen into the trap of believing that any further road building is wrong and consequently has selected parts of Eddington’s recommendations and presented them as the whole.

This complicates the task of the HA. At the very least we must not see a reduction in the amount the HA has to spend on construction, although this is not a choice it can necessarily make for itself. Hamstrung by the DfT’s decree that short term solutions like active traffic management are the way forward, the HA must act accordingly whether it agrees or not. This year’s Budget delivered no better news. The Chancellor pledged to fund the development of road pricing technology, rather than fund the development of roads. All the logic and high level analysis of transport infrastructure points to the need for a mix of methods which, unpopular or not, should include a strong element of new road transport infrastructure. The Government’s reluctance to even consider new build means that gridlock will be a fact of life for far longer than it needs to be.

CECA Communicates

Civil Engineering 55 Tufton Street Tel: 020 7227 4620Contractors Association London SW1P 3QL Fax: 020 7227 4621

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CHAIRMAN’S Column

Peter Andrews

www.ceca.co.uk

Page 3 CECA Communicates

REGIONAL Focus

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CECA ScotlandChairman Charlie Frize discusses the SNP’s impact on the civils industry

Scotland has undoubtedly seen huge political changes since the Scottish Parliament was re-established in 1999. What is probably less obvious is devolution’s impact on Scottish civil engineering which has developed an almost entirely separate market now that an estimated 75% of Scottish infrastructure investment decisions are made in Scotland. You can therefore appreciate why CECA placed such emphasis on engaging with the Parliament and Govern-ment from its inception. To put this in perspective, the Scottish civils outturn is around £2bn per annum and sustains over 20,000 jobs, with many more in the supply chain. In a country our size these are powerful credentials when dealing with politicians especially Stewart Ste-venson MSP who expresses his own views elsewhere in this edition of Communicates and who, as the Minister responsible for transport and infrastructure, is effectively Scotland’s “civils” Minister. It is also refreshing to have politicians who are prepared to listen.

Don’t get the impression that devolution has been a bed of roses because it certainly hasn’t. The early days saw a serious hiatus in public expenditure, except perhaps on the Parliament building itself but that’s another story! This downturn, cou-pled with local government reform and a total overhaul of the water sector saw CECA members fight, and unfortunately in some cases fail, to survive a lean first five years. However, since then confidence has grown markedly with public sector investment soar-ing to record levels due largely to the Government’s priority on infrastructure delivery. Most of the private sector including CECA, was very cautious about an SNP minority administration last May. However, we have been increasingly impressed since by their commitment to long term programming and growth evidenced not only in their ongoing support of inherited work-in-progress like the new Upper Forth Crossing, Stirling/Kin-cardine railway and Glendoe hydro scheme but also in their future programme which includes the Glasgow Airport Rail Link, Edinburgh Trams, M74 completion, Airdrie/Bathgate rail link, Aberdeen Western Peripheral Route and the recently announced new Forth Bridge. Add to this the Government’s huge housing, education and regenera-tion aspirations, the Borders Railway and Glasgow’s 2014 Commonwealth Games it adds up to a formidable order book.

To address the challenge, as I’ve said, CECA (Scotland) maintains a constant dialogue with the Parliament and Scotland’s main infrastructure clients where we are fortunate to have good access at the highest levels when required. We have also linked up with the ACE and ICE to produce joint civils briefings for Ministers, MSPs and Councillors. In addition we facilitate an ongoing programme of meetings between contractors and their constituency MSPs, including recently one with the First Minister in Aberdeenshire (see above right), which pay huge dividends in promoting mutual understanding. As Chairman of CECA (Scotland) I’m lucky to be supported by a very experienced Board drawn from firms of a wide range of sizes, sectors and locations. At our Annual Dinner last month in Glasgow I informed an audience of nearly 550 members and guests that we have five key issues on which we want to achieve some tangible and lasting improvement during 2008:

Workload Security• Staff & Labour Shortages• Qualifying the Workforce• Simplifying Prequalification• Occupational Health•

Also at the Dinner we were delighted to welcome our 100th member and, although there is absolutely no room for com-placency, we feel we must be getting something right because our membership continues to grow as contractors look to CECA to lobby on infrastructure issues and for a steady flow of succinct, reliable advice on matters that affect their daily business. Our Board’s primary aim is to ensure that we maintain this focus and provide what we believe to be the depend-able, no-nonsense service Scottish contractors want.

Turiff Contractors Ltd. hosted First Minister, Alex Salmond MSP

CECA (Scotland) Chairman, Charlie Frize

CECA CommunicatesPage 4GUEST Comment

Infrastructure investment in ScotlandStewart Stevenson MSPMinister for Transport, Infrastructure and Climate Change

The Scottish Government’s core purpose is to create a more successful country, with opportuni-ties for all of Scotland to flourish, through increasing sustainable economic growth. Our Eco-nomic Strategy highlights the role of efficient infrastructure investment in achieving this aim. Higher levels of investment will be a key factor in generating improvements in productivity and economic growth. Investment increases labour productivity by increasing the capital stock that each worker can utilise.

Infrastructure provides a base for economic output and is therefore a driver of productivity. It facilitates the movement of goods and people, encourages business investment, influences individuals’ location decisions, supports social objectives, and benefits consumers through lowering the cost of goods and services and increasing the variety available to them.

In mapping out our investment intentions over the next three years, we are currently producing a new version of the In-frastructure Investment Plan (IIP) for publication at the end of March 2008. The Plan will reflect current policies following the outcome of the 2007 Spending Review and present a longer term picture of investment which will enable the private sector to plan ahead and gear up to take advantage of the bidding opportunities available. The Plan will also show how these investment intentions will contribute to the Government’s five Strategic Objectives: Wealthier and Fairer, Smarter, Healthier, Safer and Stronger, and Greener.

The first IIP was published in February 2005, following the previous Spending Review (2005-2008), and highlighted for the first time all portfolio investments within a single document. Following on from that, the Infrastructure Investment Group (IIG) was set up to take forward the delivery improvement agenda identified in the IIP. The agenda includes: improving procedures and their usage, improving internal capacity and skills, better and more structured liaison with the industry, closer alignment of infrastructure investment with sustainable development policy objectives and greater cooperation with the local authority sector.

The current IIP publication timetable recognises the considerable market interest in investment and contracting opportuni-ties in Scotland and the need to clarify, for public and private sectors alike, the various infrastructure developments arising in different sectors.

Apart from the substantial contribution being made by civil engineering contractors across a large programme of major infrastructure projects in Scotland, it is pleasing to see that CECA (Scotland) is also playing its part at a more strategic level in supporting the improvement agenda for the construction industry. This is demonstrated by CECA’s participation in the Scottish Construction Forum and in the Scottish Parliament’s Cross Party Group for Construction.

It should come as no surprise that the Forum’s recent Industry Plan 2007-2012 - under the banner of Achieving Construc-tion Innovation and Excellence - places emphasis on themes which give priority to issues including skills and training, im-proved procurement procedures, and sustainability. These largely match CECA (Scotland)’s own stated key priorities.

It is clear to me that CECA members are playing a significant role in supporting the Scottish Government’s five Strategic Objectives. I look forward to the continuation of this working relationship.

www.ceca.co.uk

Page 5 CECA CommunicatesSAFETY News

HSE/Highways Agency – free leafletThe HSE Project for Reducing Respiratory Disease and Highways Agency have produced a leaflet: Time to Clear the Air- Protect your Lungs when using cut off saws. It is designed to be given to workers and shows the risks of using a cut-off saw on kerbs, paving or blocks and how to prevent them.

Hard copies of the leaflet, including bulk orders, are available free from the HSE. To view the leaflet visit:http://webcommunities.hse.gov.uk/inovem/inovem.ti/kerbcut-ting.community/grouphome

Corporate Manslaughter Act and sentencing guidelines

The Corporate Manslaughter and Corporate Homicide Act will come into force on 6 April this year across the UK. The Act creates a new offence for convicting an organisation in circumstances where a gross failure in the way its activities were managed or organised causes a person’s death.

CECA has produced a briefing document for members which will be available on its website. It shows:• To whom the Act applies• How it relates to other legislation• The legal process and key terms• Prosecutions/penalties • What you need to do• FAQs and where to get additional information

CECA contributed to the consultation on proposed sentenc-ing guidelines for the Act. Visit www.ceca.co.uk to view the briefing note.

Constructing Better Health update

Part two of the Constructing Better Health Occupational Health Standards for the UK Construction Industry, which cover Standards for Occupational Health Service Pro-viders working in construction, has now been published. The purpose of these Standards is to set a benchmark for occupational health service providers working in the construction industry and to provide guidance on clinical information.

The Standards may be downloaded using this link www.fitbuilder.com/OHSPStandards2.pdf

If you would prefer them to be emailed to you as a PDF document, please email Mandy.wickenden@cbhltd.co.uk

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Health and safety tests smash 1.5 million barrierConstructionSkills has announced that 1.5 million workers have now passed the industry standard ConstructionSkills Health & Safety Test, delivering positive signs that industry is making fast progress to becoming fully qualified. The first test was taken in 2000 in Aberdeen, and since then has evolved considerably to make it as accessible and con-venient as possible for industry. It can be taken at over 150 locations, including corporate testing on-site though mobile units, and the operative’s test is now available in over ten different languages. It is also fully up-to-date with industry regulations, including CDM 07 and now has two new tests for Professionally Qualified Persons. The test is now an essen-tial requirement for getting one of the many competence cards required to gain access to sites in the construction sector, including all MCG sites. The test also forms part of the SkillsDirect service which makes getting qualified and carded simpler and faster by inte-grating all the key elements into one free service, accessed through a central hotline - 0870 850 5262. Sir Michael Latham, Chairman of ConstructionSkills said of the landmark: “Reaching the 1.5 million milestone is evidence of the effort that the whole industry is making to improve health and safety. It is a great achievement, and this is proof that we’re making excellent progress. How-ever we, as an industry, still have a long way to go, and only with support from employers will we be able to work in a fully qualified workforce in which the risk of accidents is significantly reduced. With organisa-tions such as the MCG enforcing full compliance on-site, and systems such as SkillsDirect available to help people demonstrate their ability to work safely and prove their qualifications, there’s no excuse to not sit the test and prove your skills.” To book a Health and Safety Test, or to find out information on getting qualified and carded call SkillsDirect on 0870 850 5262

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SAFETY News

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Site Safe and You update‘Site Safe and You’, the pocket sized book on how to create safe working conditions on sites and in workshops, has been updated by the health and safety team. It is produced in a checklist format, and provides a simple and practical ap-proach to the effective management of site safety. Key issues covered include:

• Creating safe places of work • Hand tools• Working with plant and vehicles• Special hazards, risks and substances • Occupational health and first aid• CDM 2007 and welfare requirements• Personal Protective Equipment• Accident reporting• Safety signs and signals

It is a challenge to keep up to date with health and safety duties and even more difficult to deliver effective health and safety man-agement on site. The latest version of the ‘Site Safe and You’ book provides a comprehensive approach to health and safety for man-agers, supervisors and operators. The book is an invaluable source of practical advice in particular for small organisations looking for a one stop shop guide for site safety.

The book is available from CECA for £9 (including postage and packing). Please contact Laura Ellis on 020 7227 4627.

Occupational health industry guidanceThe HSE has launched a new web based tool to help contractors understand and manage occupational health risks more effectively. The tool is called the Construction Occupational Health Management Essen-tials (COHME for short) and can be found on the HSE website www.hse.gov.uk/construction/healthrisks/index.htm

COHME is intended to provide a framework to manage occupational health risks in a holistic way, and deals with 7 priority risks:

• Hand-arm vibration • Musculo-skeletal disorders • Dermatitis • Noise• Stress • Respiratory disease • Asbestos COHME provides guidance on OH issues such as safety critical work, health surveillance and seeking expert help, as well as examples, case studies and links to third party websites. HSE Chief Inspector of Construction, Stephen Williams, said “We want occupational health to move up the agenda for all con-struction companies. Large companies can show real leadership in influencing this cultural change. Properly managing occupational health is not a new legal requirement and we expect to see good practice in the industry. I urge large construction companies to act on this, with smaller companies adopting this as a part of the supply chain process. Time is ticking and now is the time to show ownership of this issue.”

CECA is currently revising the CECA Health Management Toolkit.

7th Edition of the Joint Fire Code of Practice on the Protection of Fire

on Construction Sites

Fire Prevention on Construction Sites: Protec-tion from Fire of Construction Sites & Build-ings Undergoing Renovation, is a Joint Code of Practice by the Construction Confedera-tion (CC) and the Fire Protection Association (FPA). It is currently undergoing a review for its 7th edition.

On behalf of CECA the CC is working with the FPA and consulting with members to pro-duce a final draft for publication.

If you would like to comment, please contact rebecca.ward@thecc.org.uk

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SKILLS News

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Select Committee Inquiry into EngineeringThe Innovation, Universities and Skills Select Committee announced that it would be holding a major inquiry into engineering. The following terms of reference have now been agreed for this inquiry:

the role of engineering and engineers in UK society;• the role of engineering and engineers in UK’s innovation drive;• the state of the engineering skills base in the UK, including the supply of engineers and issues of • diversity (for example, gender and age profile);the importance of engineering to R&D and the contribution of R&D to engineering; and• the roles of industry, universities, professional bodies, Government, unions and others in promoting • engineering skills and the formation and development of careers in engineering.

The inquiry will focus on specific areas of engineering through individual case studies and CECA has been informed that civil engineering will feature. This will be an excellent opportunity for CECA to raise its own profile and articulate its concerns right at the heart of the political process. CECA will therefore submit written evidence in due course.

CECA helps to deliver 20,000 apprenticeship places by 2012Encouraging more young people to consider a career in construction is emerging as a key priority for contractors. Our industry needs to attract young entrants and give them an appropriate means to enable them to follow one of the many exciting and rewarding career paths available in the construction industry. Apprenticeships are a long standing way of training the next generation of highly skilled operatives and although there are well established apprenticeship path-ways, there are too few employment places being made available by employers to meet demand. 30,000 young people applied for placements in 2007 but only 5,500 places were made available by employers. The reluctance of employers to become more involved with the training of apprentices needs to be addressed to ensure the long term viability of the workforce.

CECA is working with the Cross Industry Apprenticeships Task Force to help deliver 20,000 apprenticeship places a year by 2012. It is emerging anecdotally that perceived increased burdens on the employer in terms of additional insurance, supervision and health and safety issues relating to allowing young people on site are barriers to contractors offering more apprenticeships. Overcoming that barrier is now a key part of CECA’s apprenticeships challenge.

Accordingly, CECA has reissued advice to members, drawing to their attention the health and safety issues involved in taking people under the age of 18 on site and providing best practice check lists and easy to use risk assessments.

Joe Johnson, CECA Director of Training, commented: “There ap-pears to be a number of contractors who are convinced that the burdens involved in taking young people on site are too great to overcome. In fact, it is very straightforward if you take a minute or two to follow the best practice set out in the CECA advice.

“Young entrants are the lifeblood of our industry. There are some issues with the appropriateness of the training that apprentice-ships offer, but these are being addressed by the Task Force and contractors need to be ready and willing to take on young people and offer them practical experience. If we promote the industry to young people, we must not disappoint their expecta-tions before they have even started.”

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CSCS audit response upThe return rate for the CECA CSCS audit has shown a significant improvement since the last audit six months ago. 30.4% of members responded, nearly a 100% increase on the 16.7% that responded to the previ-ous audit request.

The audit forms are currently being analysed and it is anticipated the results will be available by mid-April.

For more information please contact Joe Johnson on 020 7227 4626

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PUBLIC Affairs

New Construction Minister

Baroness Shriti Vadera has taken over from Stephen Timms as Minister for Business and Com-petitiveness. In this role she will cover construction as part of her portfolio.

Vadera replaces Stephen Timms, who left his post as Construction Minister after six months to join the Department forWork and Pensions as Minister of State for Employment and Welfare Reform.

The move was part of the wider cabinet reshuf-fle following Peter Hain’s resignation as Secre-tary of State for Work and Pensions. Baroness Vadera becomes the seventh construction minis-ter following the departure of Nick Raynsford in 2001.

John Hutton, Secretary of State for Business, Enterprise and Regulatory Reform (BERR), said: “Shriti Vadera’s background in the City and at the Treasury is good news for the Department’s engagement with business. She will be a valua-ble addition to the Ministerial team and a strong advocate within Government for the needs of enterprise.”

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CECA Survey shows continued growthThere is no break yet in the strong growth in civil engineering con-struction posted in 2007, according to the results of the Civil Engi-neering Contractors Association’s January 2008 workload trends survey. Almost two thirds of respondents reported a rise over the past year in their total workload whilst less than a fifth said there had been a reduction.

The result for the change in contractors’ total civil engineering order books is the strongest to have been recorded in the 11-year history of the CECA survey.

Looking further into the future, contractors are a little less confi-dent than they were last year that trends in workload, employment and new orders will remain positive through the next 12 months, although the proportions looking forward to rising trends remain clearly ahead of those anticipating a downturn.

CECA Chairman Peter Andrews welcomed the results: “It is good to see another very solid set of results for the overall trends in workload, jobs and orders in our industry. The signs of a revival in work on motorways and trunk roads are especially welcome after a five-year slump, and we hope they will be confirmed in our next survey in April.”

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CECA meets Lib Dem skills spokesmanOn 17 March, a delegation from CECA, led by Chairman, Peter Andrews and Director of Training, Joe Johnson met with Steve Williams MP, Lib Dem Shadow Secretary of State for Innovation, Universities and Skills. The focus of the discussion was on the means of addressing the potential skills shortages within the civil engineering industry.

Mr Williams was interested to hear of CECA’s Training Policy and was pleased to note CECA’s dedication to increasing apprenticeship places. The meeting also focused on:

Diplomas• Apprenticeships• Qualification Credit Framework•

On diplomas, CECA was keen to emphasise, despite the good intentions behind the diplo-mas, the absence of an obvious action plan by the DCSF as well as the lack of guidance on work experience and the fact that this element has been signficantly downgraded from the original plans. It was also stressed that there is employer uncertainty over what the diplomas actually deliver.

CECA also stressed that the Government needs to provide better support for employers for apprenticeships and that the whole process could do with being more streamlined.

The final message CECA conveyed was for the need to simplfy routes to entry. The current complex system clutters the landscape and can act as a barrier to recruiting new people who are the lifeblood of the industry. CECA is compiling a briefing note to be sent to Mr Williams to aid him in his portfolio.

Steve Williams MP was inter-ested to hear CECA’s views

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PUBLIC Affairs

CECA lobbies transport spokesmen

CECA is seeking to further demonstrate the improtance of long-term investment in transport infrastructure by meeting with Theresa Villiers MP, the Conserva-tive spokesman for Transport and Norman Baker MP, the equivalent Liberal Demo-crat spokesman.

CECA will emphasise the need for clarity, consistency and continuity of infrastructure funding, as well as outline the benefits to the economy and social mobility that enhancing the transport network could bring.

Budget 2008

The 2008 Budget produced very little that was new and placed emphasis on new housing developments and trans-port. Unfortunately, mirroring Ruth Kelly’s comments, investment in infrastructure was not at the top of the list. The Chancello, Alistair Darling, confirmed funding to develop road pricing technology, which is intended to help reduce congestion in the long-term. In the short term he reiterated funding for local schemes with a four-year extension to the £200 million-per-year Transport Innovation Fund.

The Chancellor also repeated that the £16 billion Crossrail project will support economic growth for the whole of the UK, adding £20 billion to national income. He pledged to spend £8 billion on new, affordable and social housing over the next three years. CECA will aim to ensure that the infrastructure work associated with new housing developments is not overlooked.

The Chancellor has committed to giving more help to small businesses with capital gains tax remaining at 10 per cent and £12.5 million will be used to encourage more women entrepreneurs looking to start SMEs. Mr Darling has set a goal for SMEs to win 30 per cent of all public sector business in the next five years.

Mr Darling announced an extra £60 million over the next three years to improve skills, tackle shortages of skilled workers and increase the number of apprenticeships.

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DfT prefers hard shoulder running to new roadsRecent announcements by the Department for Transport (DfT) have not filled contractors with hope as it seems it would rather the Highways Agency focused on alleviating over-crowded roads in the short term rather than take steps to en-sure a significant long-term solution to economy-crippling congestion is found. Secretary of State for Transport, Ruth Kelly, recently announced that she believed hard shoulder running and possible local road pricing schemes could significantly reduce congestion, while she also mooted schemes such as car-share or charged lanes. Access to car-share lanes is limited to vehicles carrying passengers, or single drivers willing to pay a toll.

However, there was no mention of further investment to enhance the road network despite the fact that the Eddington Study, from which she quoted frequently, concluded that invest-ment in infrastructure would play a crucial role in tackling congestion. CECA responded to the announcement and the transport announcements in the 2008 Budget (see below) by issu-

ing the following quote: “ The Government ac-The Government ac-cepts that the costs of congestion are forecast to more than double by 2025 but this budget offers the development of road pricing and short term tricks like hard shoulder running as the only means by which they intend to tackle it.

“The Eddington study recommended a sophisticated policy mix of better use, carbon and congestion pricing and targeted improvement and claimed there was a good case for more transport infrastructure. Unless they are going to implement Eddington’s recommendations, it’s time they stopped quoting him.”

The DfT’s plans have now been passed over to the Highways Agency which will be publishing its Business Plan by the end of March. This will outline the Agency’s delivery plans, together with related budgets for the next two financial years. CECA will produce a briefing note for members in due course.

Kelly: new transport infrastructure not a priority

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LEGAL BriefingPay up on adjudications or risk cost consequences

In the recent case of Harris Calnan Construction Co Ltd v Ridgewood (Kensington) Ltd [2007] EWHC 2738(TCC), His Hon-our Judge Peter Coulson QC was asked to determine an application for summary judgment made to enforce the decision of an adjudicator.

Upon the claimant making the application for summary judgment, the defendant sought to resist the court application on various grounds. Such grounds included the adjudicator not having jurisdiction to decide the adjudication disputes be-cause there was no contract in writing between the parties As part of the court application, the claimant also sought an order for indemnity costs.

With regard to the question as to whether the adjudicator had jurisdiction, given the defendant’s claim that there was no contract in writing between the parties, the court considered the position adopted during the adjudication. The no contract argument had been put to the adjudicator, who had considered and rejected that submission.

Whilst holding that the decision of the adjudicator that there was a contract in writing was correct, Judge Coulson ob-served that a party who wishes to make a jurisdictional challenge before an adjudicator has a choice: it can agree that the adjudicator should decide the issue and that it be bound by that decision or it can reserve its right to argue that, whatever the adjudicator decides, he does not have jurisdiction to reach that conclusion.

On the facts of the present case, the defendant had not reserved its position and was not any longer entitled to challenge the decision of the adjudicator. This is an important point, as contractors based on the judge’s decision, need to reserve their position in clear terms in adjudications should they wish subsequently to challenge the decision of the adjudicator, particularly on any jurisdictional issues.

Indemnity CostsThe judge therefore held that the decision of the adjudicator should be summarily enforced. The claimant obtained sum-mary court judgment in the sum of £102,274.85 and also sought an order for indemnity costs. The judge observed that it was not uncommon for a defendant to fail to comply with an adjudicator’s decision, and then to refuse to co-operate in subsequent court enforcement proceedings, and he therefore went on to hold that it was appropriate to make an order for indemnity costs. In doing so he stated:

“...it is plain...that the defendant had no substantive basis for challenging the decision. This sum ought to have been paid months ago. This court will not encourage parties, who have no defence to a claim based on an adjudicator’s decision, to use up valuable court time and the resources of the successful party in running unmeritorious points that are doomed to failure.

For those reasons … it seems to me that it is appropriate to award indemnity costs in this case.”

The award of indemnity costs as opposed to standard costs in legal proceedings means that the onus of proof in determin-ing whether any such costs claimed are reasonable is reversed whereby the party against whom the costs order is made has the burden of proof of establishing that any such costs claimed are not reasonable, as opposed to the standard basis which would ordinarily require the party claiming such costs to establish their reasonableness.

Contractors should bear in mind the court’s approach to the unmeritorious defence of applications to enforce an adjudica-tor’s award. Anyone seeking to avoid paying an adjudicator’s award will get relatively short shrift from the courts unless they have a particularly meritorious defence.

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Europe

EU Climate Action packageThe European Commission has published a package of proposals on climate change and renewable energy including the contribution expected from individual Member States to meet target levels. The far-reaching plans aim to deliver up ambitious EU commitments by 2020, and include greenhouse gas reduction together with a review of the emissions trad-ing system.

The measures are geared towards increasing the share of renewables in energy use to 20% by 2020 and will set legally enforceable renewable energy targets for national Governments. Through what the Commission terms as ‘effort-sharing’ the plans will ensure the EU reduces greenhouse gas emissions to a minimum of 20% below 1990 levels by 2020.

Member States will contribute to the ‘effort’ according to relative wealth, with targets ranging from –20% for richer countries to +20% for more poorer EU States. Emissions from sectors not included in the emissions trading system – which includes housing, transport and waste – will be cut by 10% of 2005 levels by 2020.

The proposals also include the reform of the EU’s carbon emissions trading system for the period after 2013 that will impose an EU-wide cap on emissions. Revised EU state aid rules and a communication on carbon capture and storage complete the package.

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INDUSTRYInfo

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Morgan Vinci joint venture launches final deck at Kincardine

Morgan Vinci has successfully launched the final span of the new Upper Forth Crossing at Kincardine over the River Forth in Central Scotland, seven weeks early.

The bridge is being built by Morgan Vinci, a joint venture between infrastructure services company Morgan Est and VINCI Construction Grands Projets, as part of a £120m contract for Transport Scotland.

John Osborne, Morgan Vinci project director, said: “This final launch represents a major milestone for the project. We launched the first bridge span on 22 January last year and over the past 13 months have incrementally launched the remaining 25 spans; all of this achieved by a consistent high level of performance throughout from the whole site team.

“The new 26-span bridge, which weighs over 32,000 tonnes and is 1.2 kilometers in length, is the second longest in-crementally launched concrete bridge in the world and is the fourth incrementally launched bridge to be constructed by the joint venture in the UK.”

Morgan Vinci constructed the bridge deck on line in a construction yard established on the site of the old power sta-tion on the northern shore of the Forth at Kincardine and incrementally jacked the completed bridge forward, span by span over the river, using two 600 tonne hydraulic jacks.

It was the availability of the old power station site that enabled the new crossing to be constructed with minimal im-pact on the ecologically sensitive and internationally important wildlife reserves established around the Upper Forth. It also lent itself to the deployment of incremental bridge launching methodology for the new crossing.

Ainslie McLaughlin, Transport Scotland’s director of major transport infrastructure projects, said: “With this final push, we are witnessing a real step forward in the overall delivery of this bridge. The bridge deck launch has gone smoothly and the project is moving well towards its target completion date of November 2008. All the site personnel have worked well in completing this element of the project ahead of schedule.”

Other News

Page 12 CECA Communicates

I know all too well that surveys and questionnaires are greeted with groans in offices throughout the land. At CECA we have a rather different gripe – lengthy Government Consultation Documents requiring in depth analysis, frequently sent out just prior to a holi-day period and ending with a lengthy questionnaire with a near impossible return date.

It is true to say that without many of the survey questionnaires that CECA sends out your voice would not be heard. Civil engineering contractors frequently have a different per-spective on issues that need to be heard and the results of our surveys can shape important decisions and also highlight the achievements of our side of the industry. I am aware that questionnaires from CECA can arrive in “clusters” and that the return rate can suffer as a result. That said - both our quarterly Workload Trends Survey and Accident Statistics Survey are very well supported. The Trends Survey remains the best supported in the in-dustry, regularly receiving a response rate of over 30% from our members whilst the latest completed Accident Statistics Survey achieved over 70%. The benefit that we can achieve

for our members from this information can be substantial.

To take as an example, last year’s accident statistics showed that our members were well below the industry average on accidents and incidents. This information convinced HSE in Scotland that civils’ sites were not a priority for inspection. Results from recent Workload Trends surveys have been used most effectively to inform both politicians and the Office of Rail Regulation.

So you can guarantee that CECA will not waste your time on worthless surveys.

Which leads on to the next questionnaire you are about to receive and one which I strongly urge you not to ignore. At the end of June 2009 the current 3 year CIJC Working Rule Agreement pay and conditions settlement is due to expire and, prior to this, CECA will actively engage with the trade unions and other contractor representative organisations in wage negotiations to reach agreement on what will follow thereafter. Key to these negotiations is the provision of a clear mandate to our negotiators setting out the parameters within which they are able to agree on behalf of the industry. This mandate needs approval by CECA.

To this end I have sent out a questionnaire via the CECA Regions asking for your views in a number of key areas, including wage rates and pension provision, which will then be collated and input into the proposed mandate. It may seem early to do this but we are aiming to ensure that by commencing (and hopefully concluding) negotiations earlier you will have the longest possible notification of the changes to pay rates and other payments and conditions allowances to be made from July 2009 which, from a business perspective, is essential

So please do not ignore this questionnaire as we need to fully represent your views and have a clear message. Your opin-ions do matter and the survey is designed to provide these. I look forward to your views - deadline 25 April 2008.

DIRECTOR’S Comment

Civil Engineering 55 Tufton Street Tel: 020 7227 4620Contractors Association London SW1P 3QL Fax: 020 7227 4621

Rosemary Beales

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CECAContacts:

CECA (National) DirectorRosemary Beales020 7227 4620

CECA Director of TrainingJoe Johnson020 7227 4626

CECA Technical & Environmental OfficerJohn Wilson020 7227 4624

CECA Head of External & Public Affairs Phil Morgan020 7227 4625

CECA Communications AdvisorJack Callan020 7227 4623

CECA PA/AdministratorLaura Ellis020 7227 4620

Transport Group 7 May 2008

Finance Group13 May 2008

External Relations Committee 20 May 2008

CECA Council3 June 2008

People & Resources Committee4 June 2008

Safety, Health & Environment Committee18 June 2008

Nuclear Forum18 June 2008

CECACalendar:

CECA Council Dates for 2008:

4 March 2008 23 September 2008 3 June 2008 9 December 2008

CECA55 Tufton Street, London, SW1P 3QLwww.ceca.co.uk

www.ceca.co.uk