CECAcommunicatesthe newsletter of the civil engineering contractors association
ISSUE 77, JUNE 2011
With a scorching start to summer this year, it seems fi tting that in this issue of communicates we’ve included our fi rst environment supplement of 2011, and for CECA members it really is required reading, whether you believe in global warming or not. We’ve got members to share their best practice with you, as well as keeping you up to date on what we’re doing to keep you informed.
You don’t need us to tell you times are still tough out there, and keeping ahead of the curve is all important. So for rail contractors, we’ve included our briefi ng on Sir Roy McNulty’s report into the value of the UK railways, and for members working on roads, there’s a detailed report on the current position of the Highways Agency. And of course, we’re keeping our eyes on all the latest developments coming from Infrastructure UK and across Westminster.
Our workload trends survey lifted the lid on the state of the industry, and you can read all about it inside, as well as fi nding out how we’re helping members to combat the threat of infl ation.
For the technically-minded we’ve got a report on a new bridge deck membrane, while B&CE offer a detailed look at what changes to pension law mean for CECA members.
Of course, there’s also full coverage of how CECA is delivering closer to where you are through our regions.
INCLUDING A 4 PAGE ENVIRONMENT SUPPLEMENT
Also Inside:
2//First Words
CHANGING TRACK?Sir Roy McNulty publishes his report
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4//Regional News
6//Highways Agency
7//Environment Supplement
12//Construction Skills
13//New Bridge Deck Membrane
14//Inflation
15//Pensions Briefing
11//Workload Trends Survey Results
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CECAcommunicates
FIRST WORDS
Mark Roper, CECA Managing Director, talks procurement, inflation, and saving the environment...
In the May issue of communicates I promised that CECA was still “fi ghting for members’ interests”, and it’s not a pledge we as an organisation have taken lightly.
On the biggest issues of concern to members CECA is taking action to make sure your views and opinions are heard at the highest levels. We have been leading the charge against bad procurement, and we were pleased to see some of the recommendations we made in our Ten Steps to Smarter Procurement became government policy in their Construction Strategy, including a visible project pipeline and improving client capability. You can read more about the strategy in this issue of communicates.
Standardising pre-qualifi cation has also been a priority, and the government’s pledge to use PAS 91 was a major victory. But we’re not complacent, and we know there are other big clients out there not yet onboard. We’ll keep campaigning to make it the universal standard in the UK.
We know infl ation remains a big concern for members, and one that the results of our workload trends survey, featured on page eleven, show is only getting more serious. This month we hosted an event with the London Metal Exchange to demonstrate one way members could hedge themselves against higher steel prices, and we’re constantly on the lookout for other ways we can help tackle the infl ation burden.
Yet even when economic times are challenging, we can’t forget our responsibilities to the wider world. In this issue is the fi rst of our biannual environment supplements; and it features a number of examples of best practice from members who are delivering projects not only to their usual high standard, but also protecting, and often enhancing, the environment around them. Of course, we also keep you up-to-date with all the latest environmental developments that might affect your business.
The past month has seen the publication of Sir Roy McNulty’s report into increasing the value for money of the railways, a mammoth report that ran to over three hundred pages. In this issue, we’ve boiled it right down into just what you need to know, on page three.
Plus, because rail is becoming an increasingly important part of the civil engineering industry, and is one of the few sectors to be experiencing growth right now, CECA has moved to ensure it is as knowledgeable as it can be by appointing a new director of UK rail. Mike Cocks is an enormously respected fi gure in our industry, having chaired the CECA Rail Forum. We’re delighted to welcome him onboard and wish him all the best in his role.
In this edition we should also pay tribute to Joe Johnson, who leaves his role as director of training at the end of June to take up a more hands on role with a contractor in Qatar. Joe has provided strategic direction for training for the association for the last fi ve years, and has set the agenda for the future. On behalf of members I wish Joe well for the future.
All this shows CECA is more active than ever, and we certainly hope you’re benefi tting from your membership. However, should you at any stage feel like we are not tackling the problems facing you, get in touch. Contact your regional offi ce or CECA’s national offi ce (020 7340 0450) any time to speak to us. We’re here for you.
I’m sure you will fi nd plenty of interest in this issue of communicates.
Sincerely,
Mark Roper
Managing Director
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CECAcommunicates
Last month, the former Chairman of the Civil Aviation Authority Sir Roy McNulty published his much-anticipated value-for-money study of the UK’s rail network. The headline fi nding of his report is that Britain’s rail industry should aim to achieve a 30% reduction in unit costs (that is: costs per passenger, per kilometre) by 2018-9. At present, both passengers and taxpayers are paying at least 30% more on the rail network than their counterparts in other countries.
The study was asked to identify “barriers to effi ciency” in Britain’s rail sector. It found that among the principal barriers are a fragmentation of structures and interfaces, ineffective and misaligned incentives, a franchising system that is failing to encourage suffi cient cost-reduction, management practices which fall short of best practice and a railway culture not conducive to the partnership and continuous improvement required to meet Britain’s 21st century needs.
The recommended changes of direct relevance to CECA members are those that focus on the maintenance and upgrading of the network, and the way this will be managed. The report emphasises possible changes to asset management, programme and project management, supply chain management, and initiatives in the areas of capacity utilisation, information systems, and new approaches to enable lower-cost regional railways.
Sir Roy recommends that the Department for Transport (DfT) develop a clearer defi nition of the roles both government and industry are expected to assume in delivering Britain’s rail network, with industry taking greater responsibility for strategic planning and the delivery of outcomes in line with government policy. Industry is to establish a Rail Delivery Group (RDG), including senior fi gures from Network Rail, Train Operating Companies and others, in order to lead the focus on change based on cost-reduction. Network Rail is to continue its process of decentralisation, and the report suggests ways government and industry can cooperate to achieve better visibility of forward plans and workload, the earlier involvement of suppliers and contractors, wider use of partnering approaches, and improved supplier assurance processes.
The McNulty Report also suggests that there are genuine opportunities for better programme management within the UK rail sector, centring on the development of a best-practice framework, and to include a
The McNulty Report
and what it means for you
portfolio of enhancement programmes that align with a clear industry strategy, the early evaluation of a comprehensive range of possible solutions, formalised stakeholder management, and improved clarity of the roles of funders, benefi ciaries and delivery partners.
The study recommends the creation of a leadership group to drive innovation in the industry, drawing on models that have been used in the construction and automotive sectors. This will be called the ‘Rail Innovation and Growth Team (RIGT) and will be tasked with researching potential areas for innovation, and matching potential innovators with gaps in the market.
In order for the study’s recommendations to be successfully implemented, the report concludes that a small independent ‘Change Team’ tasked with planning, co-ordination, monitoring and reviewing implementation across all elements of the industry should be established, incorporated within the RDG. Furthermore, a regular reporting and monitoring mechanism should be established with a direct line to the Transport Secretary.
Sir Roy recommends that the RDG is established within weeks of the publication of his report, possibly on an informal basis initially. With the creation of the RDG structure, and in line with the recommendations of the report the Planning Oversight Group, the Rail Standards and Safety Board (RSSB), the Technical Strategy Leadership Group (TSLG), and the National Task Force (NTF) are to be linked to the RDG.
Going forward: the ORR has launched the periodic review of NR; an independent change team will be established; and industry is to establish the RDG. It is likely the fi ndings of the McNulty Report are to be refl ected in a government white paper on the rail industry, likely to be published in autumn 2011.
Throughout the time Sir Roy has been preparing the study, CECA has backed the reform agenda, while highlighting its members’ concerns that any changes to the rail network much not impede the delivery of current vital upgrades to the network. A briefi ng note on the McNulty report was provided for CECA members, and is available to download from the CECA website at: http://www.ceca.co.uk/Uploads/regdocs/Briefi ng%20Note%20-%20McNulty%20Report.pdf
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CECAcommunicates
CECA IN YOUR REGIONNorth East
Better Cooperation in the North EastOver the past month CECA North East has been active in building stronger relationships with the regional representatives of the Association for Consultancy and Engineering and the Institution of Civil Engineers.
Discussions so far have progressed well in establishing a single voice for civil engineering in the North East, as well as working together to arrange joint presentations and events for the benefi ts of the combined membership in the region.
Southern / South West
CECA Southern / South West Hold Contract Seminars
CECA Southern and South West held seminars in London and Bristol focussed on preparing the contract data for the third edition of the Engineering and Construction Contract. The event aimed to help members understand the implications of the data, and the areas where a different approach may be appropriate for the subcontract. Over 150 delegates from member companies took advantage of the seminars.
Changing BehaviourCECA Southern is also in the early stages of planning a scheme of behavioural training events in the region. Already trialled elsewhere in the UK with great success, the events use actors to portray situations and encourage genuine behavioural change on site. The plan is to involve members in the development stage, with a pilot event in the autumn.
WalesCECA Meets Welsh Secretary
CECA Wales director Rhodri-Gwynn Jones met with Welsh Secretary Cheryl Gillan and minister for Wales David Jones (pictured right), along with representatives from the Construction Products Association and the Institution of Civil Engineers Wales Cymru.
It was a positive meeting for all concerned, and among the topics discussed was the potential for further development of infrastructure in Wales. There was particular reference to transport hubs like maritime and airports, as well as rail electrifi cation and developments around energy, notably the potential for renewable sources of energy in the country.
Also discussed was the pressing need to address the ongoing shortage of skilled construction workers in Wales. The secretary was also briefed on the recent formation of the Wales Construction Federation Alliance (reported in May’s communicates), as a means of presenting the Welsh construction industry with a single voice.
Campaigning in WalesCECA Wales has of course also been active closer to home. They have been active in requesting local authorities be open about their capital works programmes for 2011/12 and beyond, as well as reminding clients about the potential implications of the Construction and Demolition Waste Sector Plans coming in September.
Left to right: Welsh Secretary Cheryl Gillan, CECA Wales director Rhodri-Gwynn Jones, Minister for Wales David Jones
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CECAcommunicates
ScotlandNuclear Forum
CECA Scotland hosted the CECA Nuclear Forum in Perth at an event designed to promote the CECA Nuclear New Entrant Toolkit (featured in the March communicates) to members. Attendees heard about potential opportunities in the nuclear sector from speakers representing Scottish Enterprise and Dounreay Site Restoration Ltd, as well as CECA director of external affairs Alasdair Reisner.
Campaigning in ScotlandCECA Scotland has been active on a number of other issues as well. CECA Scotland has been involved with the Scottish Government working group developing the new standard prequalifi cation questionnaire (sPQQ) for Scotland.
Bruce Clark, from R J McLeod Contractors and head of CECA Scotland’s Roads Group, with CECA Scotland executive director Alan Watt, met Roy Brennan, the head of Transport Scotland’s Network Management Directorate, to discuss future liaison between CECA members and this important client.
Plus, CECA Scotland continues to be heavily involved in health and safety issues in the country (see also the report on SHADs), and Alan Kirkwood, from member fi rm George Leslie Ltd, represented CECA Scotland at the HSE’s most recent Site Safe Scotland meeting. CECA Scotland members received a report on the meeting.
CECA Regions Commit to
Health and Safety
CECA regions have demonstrated their commitment to health and safety over the past month. CECA Scotland sponsored a groundworks Safety and Health Awareness Day (SHAD) in Inverness, at which delegates from seven CECA Scotland members attended.
Meanwhile CECA North East was also heavily involved in a groundworks SHAD held at Marsden Quarry near Sunderland, a facility owned by a member company. The event attracted over 170 delegates.
Teeing OffCECA Regions Get Golfing
Three CECA regions have this month used the almost universal language of golf to bring members together to network.
CECA North West’s annual golf tournament, held at Delamere Forest golf club, saw 32 competitors fi ght it out for the coveted Mark Fairclough Trophy. The winner on the day was John Hensman, from CECA North West member DCT Civil Engineering Ltd, and there were prizes for the top four members and non-members.
At the Castle Eden Golf Club CECA North East’s spring golf tournament brought 36 members and guests together for a keenly fought Stableford competition. Mighele Valente, a guest of CECA North East member Owen Pugh GDC Ltd, emerged victorious from the day.
In blustery conditions CECA Yorkshire and Humberside’s spring golf competition saw ten member teams take on CECA Yorkshire and Humberside executive director Mark Roper’s team at Sandmoor golf club in Leeds. In the end the team representing CECA Yorkshire and Humberside member Black & Veatch triumphed (pictured below), just ahead of the CECA Yorkshire and Humberside team. In the members’ individual competition, the spring trophy was won by Andrew Gaze from C R Reynolds (pictured left). In another challenge where players set out to beat Mr Roper’s score, entrants raised a fantastic total of £315 for WaterAid.
CECA Yorkshire and Humberside director Mark Roper (left) and individual winner Andrew Gaze (right)
Team winners from Black & Veatch, with CECA Yorkshire and Humberside director Mark Roper (left)
6
CECAcommunicates
As one of the UK’s leading infrastructure clients, the Highways Agency represents one of the most important sources of ongoing workload for many CECA members, whether working directly for the agency, or as part of the supply chain on their projects.
For this reason CECA has for many years maintained close relationships with the agency, working with it to identify opportunities to improve the way that road works are procured and delivered on the English strategic roads network.
A key part of this engagement has been through the Road Infrastructure Liaison Committee, a tripartite body that also includes the Association for Consultancy and Engineering (ACE). For more than a decade the committee acted as the lead body co-ordinating business improvement activities between the three organisations.
In 2009 the Highways Agency asked CECA and ACE to consider options for reforming the committee to better meet the needs of all those involved. As a result of this process, CECA has now put in place a revised and improved structure, including the creation of a new CECA Roads Forum, to allow members to meet and discuss roads issues in a regular meeting prior to the main committee meeting.
In July the three groups are due to meet again to formalise the new structure of the committee, which will now have a much greater focus on ‘task-and-fi nish’ work groups. While fi nal decisions on which activities the committee will initially focus its efforts on will not be decided until this meeting, proposals under consideration include working groups looking at how government transparency guidelines are implemented by the agency; how it engages with small and medium sized contractors; and what it expects from contractors in terms of occupational health and sustainability credentials. The committee will also look at whether further work needs to be carried out to develop an understanding of the agency’s new category management model among the supply chain.
Any member who would like to be involved in the Roads Forum should contact CECA director of external
affairs Alasdair Reisner ([email protected], 0207 340 0454)
The refresh of the Road Infrastructure Liaison Committee happens at a key time for the agency, as it undergoes a major review of its structure and functions. Last October the Department for Transport kicked off the review, which is intended to look at how the strategic roads network can best be maintained and developed. This approach will consider a whole new business model for the network, and the steps that might need to be taken in order to migrate to this new model.
Looking to the impacts that the review will have on CECA members, it is also expected to consider whether more work currently delivered by the agency may be delivered by private sector providers, with a consequential adjustment in the associated risk profi le. It will also look at the agency’s current procurement models for goods and services to see whether these can be tightened up to secure better value for the taxpayer. Finally the review will look at whether the strategic roads network would benefi t from being independently regulated, in a manner seen in other parts of the infrastructure sector.
This review is being carried out by Alan Cook, who was appointed as non-executive chairman of the Highways Agency in January 2011. CECA has arranged a meeting this month with Mr Cook’s colleagues at which we will press the case for some of the key measures that CECA members have identifi ed as being important in the delivery of more effi cient infrastructure in the highways sector.
We will also be working together with colleagues at the Institution of Civil Engineers, The Construction Products Association and the Association for Consultancy and Engineering to provide a ‘whole sector’ response to the review. It is hoped that through this alliance, we can demonstrate a consistent message coming from the supply chain as to the areas where we see opportunities for improvements to be made, making a much stronger case to infl uence the work of Mr Cook’s team.
If you would like to provide views into CECA’s work in this area, again please contact Alasdair Reisner using the details above.
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The refresh ofo the Road Infrastructure Liaison Committee
Changes Down the RoadWhat’s happening at the Highways Agency?
CECAcommunicates
7
ENVIRONMENT SUPPLEMENT
BIODIVERSITY and civil engineering
Dave Gibson, HSEQ manager at Jones Bros (Civil Engineering) Ltd, explains how protecting biodiversity need not be an inconvenience for contractors
Let’s get the hard bit out of the way. What is biodiversity?
Biodioversity is a term used to describe the variety of living things in a specifi c geographical area. The living things that exist there do so because the conditions suit them. Each individual species of animal and plant is dependant not only on other species for its food and shelter, but also on its local environment (soil type, drainage characteristics, topography, climate, altitude, aspect and so on). So biodiversity is the result of a highly complex set of interrelated conditions that we probably don’t fully understand.
Why is that important to civil engineers? Whatever we do during a contract is likely to change the environmental conditions in the area we’re working. At the moment, legislation is geared to internationally important protected species and habitats. Our friend the Great Crested Newt features heavily and we all know the hoops we have to jump through if that particular species exists on site. However, the Department for the Environment, Food and Rural Affairs have brought out a white paper this year which proposes to give neighbourhoods and community organisations far more say in shaping the places in which they live. This includes having a say in the planning process in order to ‘offset’ any loss in biodiversity as a result of habitat destruction due to development.
Contractors need not be unduly concerned, so long as the client has gone through the appropriate planning process and understands the restrictions on development. Contractors have the skills and equipment to create any habitat required, provided they are given the information early enough. The worst situation is when new requirements come as a surprise. We need to make sure that clients have done the necessary work to ensure any required biodiversity ‘offsetting’ is fully understood and included in the design.
If the client has included habitat creation and enhancement in the contract, civil engineers can achieve impressive results. At Jones Bros’ Parc Cybi contract on Anglesey for the Welsh Assembly Government, we achieved an “Excellent” CEEQUAL award with a score of 94.6%, partly due to the protection of biodiversity incorporated into the project.
Because detailed ecological surveys were conducted at the initial design stage, we were able to build
habitat protection and enhancement measures into the construction. Areas of higher ecological value were not developed and Jones Bros employed measures during construction to protect them. Enhancements to wildlife habitats across the site resulted in a large net increase in the area of habitat available, compared with the original undeveloped site.
The following are some of the initiatives employed by Jones Bros through their design review:
Retention of existing hedgerow growth to the rear of • an existing stone wall, providing habitat continuity
Provision of dry stone walling which increased the • opportunities for the colonisation and spread of the reptile population
Redesign of the seeding proposals to utilise the • existing seed bank within the topsoil to provide local provenance and ensure the growth of appropriate species
Less intrusive methods of reptile exclusion, replacing • temporary fencing with proactive site management, which encouraged site usage by small mammals and retained access to feeding grounds
Creation of water vole habitat to help achieve • sustainable levels of the population
Removing the synthetic liner from the water body • design to encourage its use by water voles
Sculpting the shoreline fringes to increase the • diversity of the micro habitat.
Provided contractors have suffi cient information, time and resources, they can improve the biodiversity of the site as well as deliver a high quality product for the client.
Regraded wetland habitat
Stone walling to provide a reptile habitat
CECAcommunicates
8
A project to protect Wigan from fl ooding has made full use of sustainable solutions to reduce its environmental impact, recycle products and enhance the appearance of the surrounding area.
The scheme, undertaken by Morrison Construction (part of CECA member Galliford Try Plc), involved the creation of a reservoir capable of storing 420,000m3 of water above natural ground level, as well as the construction of a clay-core earth embankment dam, the replacement of two bridges and the lowering of a third.
Sustainable solutions:
Use of hydrobrakes for fl ow control
The innovative hydrobrakes used on this scheme (see image) have reduced the volume of water storage required, and hence reduced the reservoir footprint required. The hydrobrakes are also self-activating, with no moving parts and no power needs, making them more sustainable than alternative options.
Hydrobrakes also reduce the potential for blockages because they have a 2m diameter that allows most items of debris to pass through without harming the integrity of the system itself.
Recycle cleared trees
The job also involved a major tree clearance operation. This was undertaken with the help of the local council’s tree offi cer to ensure the minimum number of trees and shrubs were removed. Prior to removal the trees were surveyed by an ecologist to ensure that there were no wildlife habitats present. Following removal, all 356 tonnes of material was recycled for use as bio fuel at Shotton power station, while the tree stumps
will be used to create a habitat area for local wildlife, removing the need for transport to landfi ll.
Reuse existing materials
The dam has been designed to make best use of the natural topography of it’s location. Located in a narrow section of the Douglas Valley it minimises the amount of imported materials required. 80% of the fi nished product has been constructed from materials reused from the site footprint, while 90% of the aggregates required were recycled, helping to minimise vehicle movements to and from the site.
Eradicating knotweed
The west side of the valley site was infested with knotweed, so with the help of a Japanese knotweed specialist, Morrison Construction excavated all the contaminated land and stockpiled it on site for treatment. This avoided the need to transport some 3,000m3 of material off site.
Minimising virgin stone requirements
The demolition of existing river banks and bridge abutments on the dam footprint meant the new footbridge could be clad in stone reclaimed from the site. This further reduced the need for virgin stone, as well as vehicular movements to and from site.
Sourcing materials from local contractors
4,500m3 of clay was required to construct the core of the dam. To avoid using a virgin source Morrison researched local projects to fi nd a source of re-usable clay. They discovered a local contractor constructing a marina where clay was being excavated. This clay was used for the construction of the dam, removing
FLOOD ALLEVIATION SCHEME PUTS EMPHASIS ON SUSTAINABLE SOLUTIONS
A hydrobrake is lowered into position on the Wigan Flood Alleviation Scheme. Using hydrobrakes helps to reduce the reservoir size required, reducing the environmental impact.
Image credit: Galliford Try Plc
continued on next page
CECAcommunicates
9
the need for virgin clay to be excavated.
Environmental Enhancement:
Aesthetic enhancement of the Douglas Valley
Before the works took place, the area of the dam footprint was destitute and looking tired. Regular tipping occurred at the site and local residents reported that it was an area regularly subjected to anti-social behaviour, confi rmed when tree clearance work revealed clear evidence of drug use. The edge protection was rusted and in places had been vandalised and pulled down. The footbridges had been subjected to graffi ti and the overall appearance of the valley was poor.
Re-planting and tree clearance
Following the dam works there is an extensive replanting programme planned to encourage wildlife to fl ourish in the areas surrounding the dam.
Enhancement to the public realm
The untidy appearance of the area prior to the works meant there was a real opportunity to improve the public realm in this historic valley. This was realised through co-ordinated design, including help from
continued from previous page
CECA TAKES THE LEAD ON WASTE PERMITTING
REGULATIONSIn November 2009 CECA together with other industry bodies wrote to the then Construction Minister, Ian Lucas, drawing his attention to industry concerns over changes to the Environmental Permitting Regulations. The regulations were framed generally at the waste management industry and did not take into account the requirements of construction industry processes.
A delegation of industry personnel met with offi cials from government departments and the Environment Agency on various occasions throughout 2010 to discuss the problems being experienced.
After a detailed examination it was concluded that guidance given by the Environment Agency, although quite extensive, was not presented in a form that was understandable by those dealing with waste from the construction industry.
To address this problem CECA offered to draft a construction industry guidance document which could be endorsed by other contractor associations and the Environment Agency, if acceptable to them. The CECA working party charged with drafting the document is nearing completion of its initial draft and will be passing this on to other industry associations for comment.
CECA members will be kept informed of further developments in this area.
For further information contact CECA environment and technical offi cer John Wilson on 020 7340 0455 or [email protected].
Wigan Borough Council, involving widespread use of high quality exposed pink aggregate, in sympathy with the prevailing stone used in the town. This was used to create a terraced effect on the crest and north shoulder of the dam.
Enhancement of river walls
The new river alignment north and south of the control structure will be sheet piled to prevent scouring. These sheet piles are to be clad using a stone-effect concrete similar to one used in a previous phase of the scheme. This has removed the need for stone or brick cladding over a 150m span, reducing the need for virgin stone and other cladding materials. The use of the concrete material also reduces the environmental risks associated with the use of masonry cladding and mortars adjacent to rivers.
The team from Morrison construction responsible for delivering the Wigan project have kept ideas of sustainability close at every stage of the project, from planning to completion. It is worth noting that the managers at the Wigan scheme have found that using these sustainable techniques have saved cost, as well as carbon, meaning acting sustainably does not have to come at the expense of the bottom line.
CECA ENVIRONMENTAL STRATEGY AND ACTION PLANCECA members have been informed about the development of its Environmental Strategy and Action Plan, which was sent to members in February this year. The document itself promoted the gathering of members’ environmental performance data in areas such as waste production and recycling, carbon dioxide emissions, water usage, environmental regulatory infringements, environmental training given to employees and environmental awards.
This strategy should enable us to collect the data and develop benchmarks in each area, allowing members to both measure their own environmental performance over time, and identify possible improvements. While this should help improve the image of the industry as one which takes its environmental responsibilities seriously, perhaps more importantly it will help members to better complete questions on environmental capability in prequalifi cation exercises. The environment is an increasingly important aspect of such questionnaires.
In March CECA circulated data collection forms to members for completion and submission, so that the benchmarks could be formulated. The closing date for submitting this information is 1 July 2011. If your company has not yet submitted a return, please ensure that the person responsible is aware of the deadline.
If you have not received the appropriate data collection forms, they can be downloaded from the CECA website. Alternatively contact John Wilson at CECA or your regional CECA offi ce.
If any member is having diffi culty in formulating data for return then, in the fi rst instance, contact John Wilson who may be able to help or alternatively will ensure a member of the CECA Environment Committee contacts them in order to overcome any problems.
CECAcommunicates
10
Working TogetherDave Gibson shows how working closely with the Environment Agency can save contractors time and moneyManaging environmental issues on civil engineering sites is rarely easy. If you start a project without proper planning, you almost certainly fall foul of the regulators. If you think you’ve planned for everything, there’s always the chance of the unexpected – whether it’s contaminated land, extreme rainfall or the protected species that wasn’t there before.
There are also the diffi culties with environmental legislation. The Pollution Prevention Guidance, Position Statements, Low Risk Waste Activities, Standard Permits, Bespoke Permits, exemptions from the need for permits, the list goes on. It also varies depending on where you are in the UK. What is needed is a friendly regulatory offi cer on call to provide the correct information, when you need it. That’s exactly what we have on the A487 Porthmadog Bypass (pictured).
Rhodri Jones, director of CECA Wales, had discussions with the Environment Agency Wales on the possibility of ‘work shadowing’ for an EA offi cer on a site for some time. When the environmentally challenging A487 Porthmadog bypass contract was awarded to a joint venture of CECA Wales’ members Balfour Beatty and Jones Bros, it seemed the perfect opportunity to progress the idea.
The A487 Porthmadog bypass contract is a £35million, 5.3km, offl ine trunk road improvement to take traffi c away from the busy tourist centre of Porthmadog in North West Wales. The route crosses the Afon Glaslyn (a SSSI) and its fl ood plain. Other environmental issues include the presence of lesser horseshoe bats, reptiles, water voles and badgers, breeding and overwintering birds, tree preservation orders, a scheduled ancient monument, translocation of species, rich vegetation, on-site disposal of Japanese knotweed as well as public rights of way.
Mark Medway was chosen by EA Wales to get involved with the scheme. Mark is an environment offi cer based in Bangor with 22 years experience in dealing with pollution and waste issues in his patch, covering the Gwynedd area.
Mark regularly visits the site and has an open invitation to drop in whenever he wants. He attends the quarterly Environmental Liaison Group and other relevant meetings. Mark also comments on method
statements with the potential for high environmental impact and he reviewed the Project Pollution Control Plan prior to its publication. Being close to the action, Mark has a better understanding of the problems faced by the construction team and the timescales imposed on it. He can respond quickly and practically to queries and as a result, has an understanding and appreciation of the ever changing circumstances faced by civil engineering contractors, designers and the client.
Mark said: “Being familiar with the site, we can respond quickly to questions. We know this is important to the contractor. Also, because of the close relationship between the contractors and the agency, we haven’t ever needed to consider using our legal powers”.
The benefi ts of this relationship have been seen across the contract:
11,000m³ of material • contaminated with Japanese knotweed has been contained within an engineered on-site cell. This has saved 900, 90 mile round trips to landfi ll, saving an estimated 80 tonnes of CO2 in transport emissions;
Prompt advice and guidance • enabling the construction of a causeway and bailey bridge across the Glaslyn to transport quarried material to site. This measure allowed 20,000 wagon loads to be kept off the surrounding road network in the fi rst four months of the scheme;
Design advice for the • embankment to encourage colonisation by water voles;
Agreement to cheaper but more effective “over the • side” drainage from the carriageway, which allows the fi rst fl ush of any catchment-wide storm to be subject to treatment in a sustainable drainage system and reach the tidal gates before the main storm fl ows;
Design advice for the Glaslyn tidal gates which are • to be replaced as part of the scheme;
Replacement of hard pollution control features in • watercourses to a less intrusive solution involving the installation of posts with tie off eyes. These enable oil absorbent booms to be deployed easily and safely, and the natural bank material allows a better seal with sandbags.
Due to limited resources, contractors cannot expect this level of close contact with the Environment Agency on every project. However, on environmentally signifi cant contracts such as the A487 Porthmadog bypass, everyone benefi ts from such cooperation, especially the environment.
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CECAcommunicates
Workload Trends SurveyNo respite for civil engineering contractors
The results of CECA’s member survey of workload trends for the fi rst quarter of 2011 reveal little relief for civil engineering contractors with 43% of respondents reporting a fall in workloads compared to the fi rst quarter of 2010.
There was further bad news as members continued to experience rising costs, reported by an overwhelming 73% of respondents. Even worse was the sizeable 42% of respondents who reported prices rising even faster than during the same period last year. Over half also reported tender prices continuing to fall. When taken together these trends raise stark questions about the sustainability of the industry as a whole unless dramatic measures are taken to relieve the pressure on contractors to always deliver more for less.
43%Firms reporting a fall in output
73%Firms reporting rising costs
We Need Your HelpCECA exists to represent you to the wider world, to make sure your voice is heard in government, the media and with major clients. We have had real success in recent years pushing and keeping infrastructure at the top of the agenda.
We know it’s a tough time to work in the construction industry. Low tenders and rising costs mean fewer staff, leaving a lot of tasks in the ‘to do’ pile.
For this reason we really do value your contributions to the CECA Quarterly Workload Trends survey. Without this crucial data we are severely limited in how we can represent our industry on a broader stage.
We need the majority of our members to respond, in order to make sure that the information we collect doesn’t fall on deaf ears.
We know it’s hard to fi nd the time to fi ll in surveys, which is why we’ve started making it easier. Many of you will know that the last survey allowed members for the fi rst time to complete the survey online, saving time and administration. If you have any ideas on how we can improve further, speak to CECA director of external affairs Alasdair Reisner, at [email protected] or 0207 340 0454.
But please do remember to fi ll in the Workload Trends Survey next time you receive one. Keep us informed about your business, and we’ll keep fi ghting to make sure your voice is heard and your problems listened to.
In fact the only good news in the feedback from members came from orders. While on the whole orders remain depressed, there are patches of light. Member contractors working in the rail, power and water sectors did report a slight increase in orders. However the survey also revealed a dramatic decline in orders reported for roads, a consequence of tight local government fi nances and cuts at the Highways Agency.
It comes as the government continues to offer signs that it does appreciate the importance of infrastructure to the economic recovery. As reported on page 14, the Treasury body Infrastructure UK continues to engage with CECA and member representatives, and moves towards early contractor involvement and better advance project visibility are welcome signs of progress. A recognition that greater private sector investment is required to deliver the levels of infrastructure needed is also increasingly apparent among decision-makers in Whitehall.
These are all issues CECA has campaigned on in the past, and we of course welcome their acceptance by government. However, fi gures like these from our Workload Trends survey demonstrate the sense of urgency needed in tackling these problems. In the current market, with the prevailing economic conditions, contractors are struggling, and with them their ability to keep thousands of skilled and unskilled workers in employment. This is certainly no time for complacency among those in government that good intentions are suffi cient. Contractors need to see concrete results.
“For an industry still seeking the light at the end of a very dark tunnel, there are few grounds for optimism in this survey”
ALASDAIR REISNER, CECA DIRECTOR OF EXTERNAL AFFAIRS
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CECAcommunicates
In 2008, CITB-ConstructionSkills was awarded a three-year levy order, after industry voted in support of the system. Against this backdrop, we have worked in partnership with CECA to ensure that skills and training have continued to prosper despite the economic downturn.
There have been many notable successes for the sector in the last three years, and we have been working to add value in a number of different ways.
For example, by listening and responding to the needs of CECA members, CITB-ConstructionSkills has provided funding for a number of training seminars and workshops through the Management and Supervisory Development Programme (M&SDP).
In 2010, SMEs from the association took part in a series of seminars designed to address changes to business contracts and industry regulations, to ensure that they are ready for the expected upturn in 2013. An additional fi ve workshops were also delivered in the Midlands to help equip construction managers with new approaches to completing pre-qualifi cation questionnaires and the wider tender process.
In addition to the M&SDP, CITB-ConstructionSkills has set National Occupational Standards for civil engineering priorities including road-building, tunnel digging, supervision and management. CECA worked together with CITB-ConstructionSkills to develop these standards, with representatives sitting on the working group to input into decisions, and coming to conclusions that will benefi t the sector as a whole.
CITB-ConstructionSkills’ defence of and successful fi ght for the continuation of the NVQ was also a key aspect of the benefi t it brings, as this qualifi cation is vital to the civil engineering sector. Once the qualifi cation was retained, CITB-ConstructionSkills undertook the complex process of transferring the qualifi cation onto the new QCF system, assessing the value of the courses and deciding on course content, to ensure it was of maximum relevance.
Although we have successfully implemented measures to develop skills and training across the civil engineering sector, we certainly recognise that there are opportunities to do more still. And with the new Levy Order due at the end of 2011, that’s absolutely what we intend to do to ensure that the right skills for growth are developed both nationally and regionally.
To fi nd out more about CITB-ConstructionSkills and its work within the civil engineering sector visit: www.cskills.org
Three Years of Consensus SuccessDespite a challenging economic climate, the partnership between the Civil Engineering Contractors Association (CECA) and CITB-ConstructionSkills over the last three years has ensured that the right skills have blossomed in the civil engineering industry, says Colin Evans, CITB-ConstructionSkills’ Director of Business Services.
- IN MEMORIAM - CECA was saddened to note the recent deaths of Malcolm McAlpine and David Mansell.
As president of Sir Robert McAlpine, Mr McAlpine was one of the most respected and well-liked fi gures in our industry, and had been a strong supporter of CECA since our formation in 1996. He had maintained regular contact with the association since then, and visited us at our offi ces as recently as last year.
In his role as Business Development Director at Amalgamated Construction, David Mansell was an active member and popular fi gure at meetings of the CECA Rail Forum and his loss will be keenly felt.
Both will be sorely missed by CECA and across the wider industry.
13
CECAcommunicates
CRL Launch New Bridge Deck MembraneJohn Drewett from CECA member Concrete Repairs Ltd gets technical and talks about their brand new waterproofi ng and wearing course technology
CECA member Concrete Repairs Ltd (CRL) has recently introduced the fi rst new waterproofi ng bridge deck membrane to the UK market for many years, and it boasts some advantages over existing technologies.
By working with RPM Belgium, specialist manufacturers of the MATACRYL Bridge Deck Waterproofi ng & Wearing Course Systems, CRL are able to introduce their products into the UK construction market for the very fi rst time.
The new system should make life a lot easier for contractors. The bond strength of the MATACRYL system is well in excess of conventional products to either steel or concrete and because it is available in both spray (pictured below) and hand applied formulations, it can be installed very easily and quickly. Plus, it can be installed at temperatures as low as -15C, with a ‘handover’ of just 60 minutes. These results are achieved by adjusting the catalyst used to suit ambient conditions, and without any heating or conditioning on site.
This could be a real boon for contractors who remember only too clearly the disruption of last winter’s big freeze, and all the associated cost implications.
But while the system is typically used in Europe, where its application is widespread, as a waterproof membrane installed between the concrete or steel deck and the asphalt wearing course, this is not the limit of its potential. The MATACRYL WS Wearing Course System has become a viable option for the surfacing and re-surfacing of both concrete & steel decks where density and fl exural concerns need to be considered. By installing at a thickness of between 8–15mm (dependent on exposures) a complete wearing course may be applied in a fraction of the time taken to lay conventional asphalt or other bituminous type systems. Importantly, the cured system is capable of withstanding the effects of snow ploughs and de-icing salts as well as all the other wear and tear associated with frequently traversed road and bridge surfaces.
This is achieved by making use of the latest technology in resins. MATACRYL is based on the latest PUMA technology, which is essentially a blend of polyurethane (PU) and methyl methacrylate (MMA), and aims to combine the best technical properties of each resin while overcoming the limitations that each resin presents when used on its own.
The system is available for 3 types of exposures, namely:
MATACRYL WPM : a waterproof membrane 2mm • thick between the concrete or steel deck and the asphalt overlay or wearing course ( BBA & HAPAS Approved System )
MATACRYL WS : a wearing course system that • completely replaces the asphalt by providing a 8-15mm thick overlay with all the necessary wear, abrasion, waterproofi ng and slip resistant properties for both vehicular and pedestrian traffi c
MATACRYL RB : Waterproofi ng Membrane at 3mm • thick onto concrete / steel decks directly under the rail ballast and without employing any protection board.
The MATACRYL PUMA systems offer a degree of fl exibility that has not previously been seen with the MMA systems already in the UK market.
CRL has been providing asset maintenance services to the construction industry for over 50 years through a network of 5 regional offi ces in the UK. The addition of the MATACRYL Waterproofi ng Systems with their enhanced performance will allow the company to provide a comprehensive service to CECA members for both new and existing bridge decks. For further information email: [email protected] or visit www.concrete-repairs.co.uk.
CRL technicians spray the new MATACRYL system onto the Skull and Crossbones bridge for Derbyshire County Council
14
CECAcommunicates
Image credit: Trodel via Flickr
THE VIEW FROM WESTMINSTERIn addition to the publication of Sir Roy McNulty’s value for money rail study (see page 3), last month also saw the publication of the Government Construction Strategy by the Cabinet Offi ce. This document set out to shake up the procurement, design and delivery of public sector construction by replacing “adversarial cultures with collaborative ones”. The report concludes that although the construction sector represents approximately 7% of GDP – of which 40% is in the public sector – the UK does not get maximum value from public sector construction in comparison to other countries.
The report announced the establishment of a Government Construction Board (GCB), to be chaired by the government’s chief construction advisor Paul Morrell. The GCB is to act as the single joint management board announced in the 2011 Budget, and will report to Cabinet Minister Francis Maude. The Government Construction
Strategy, and the McNulty Report, are both central to the government’s strategy to improve public sector procurement in the construction and infrastructure sectors, and contribute to growth and effi ciency savings
by improving the visibility and certainty of the procurement process. A full CECA Briefi ng on the Government Construction Strategy is available to members from the CECA website at http://w w w. c e c a . c o . u k / U p l o a d s /regdocs/Briefing%20Note%20-%20Gov%20Construction%20Strategy.pdf.
Also this month CECA was represented at a meeting with Greg Clarke, the Minister for
Decentralisation in the Department for Communities and Local Government, where he discussed the government’s commitment to decentralisation and the localism agenda. CECA was able to represent its views to the minister and look forward to working closely with his department in the future.
When CECA surveyed members in January this year to ask them what their main concerns were for the year ahead, it was no surprise that issues like workload and poor procurement topped the list of complaints.
But the third most common complaint related to infl ation. While the issue had died away in recent years as the global economic downturn stripped away demand for key commodities, members reported that the issue had come back with a vengeance as the price of steel, copper, fuels and other key products skyrocketed.
This view was backed up by the results of the special question in the April Workload Trends Survey. Asked annually, it looks at what members’ experience is of the cost for 20 key inputs including operatives and staff, fuels, plant hire, aggregates, steel and concrete, timber and the removal of waste.
While employment costs remained low as a result of the sluggish market, contractors saw costs for steel and fuels spiral, with the price paid for reinforcement steel rising by an estimated 8% while gas oil and DERV both jumped as much as 10% in the past year.
Responding to this challenge, CECA has put in place seminars for members to look at hedging price risk for metals and fuels. The fi rst of these events took place on 31 May 2011 when members took part in a briefi ng at the London Metal Exchange, which provided details of the hedging service that it can offer.
A second seminar on fuel price hedging is being run by CECA (Southern) with further briefi ngs available subject to demand. If you are interested in taking part, or merely hearing more about CECA’s work in this area, please contact CECA director of external affairs Alasdair Reisner on 0207 340 4054 ([email protected]).
Cost Inflation: A Growing Probelm
Infrastructure UK UpdateThe last issue of CECA communicates highlighted the publication by Infrastructure UK (IUK) of its detailed plan to reduce the cost of civil engineering projects in this country.
As the body set up to provide focus to the government’s activities in our sector, IUK proposed a series of actions that it hopes will bring about a £2-3 billion reduction in the cost of infrastructure delivery each year, including the publication of a rolling forward programme for public infrastructure investment, the development of new procurement models; improved client governance and better management of data relating to projects.
CECA warmly welcomed the plan, as a statement that the government understands the steps required to reduce cost in the sector without attacking contractors’ margins or delivering low quality projects.
But recognising past failures where the government has attempted to instigate reform among the industry’s clients, CECA has been keen to play a role in monitoring and evaluating the actions highlighted in the plan to ensure that they are delivered.
For this reason CECA has been working with colleagues at the Association for Consultancy and Engineering, the Construction Products Association and the Institution of Civil Engineers to put in place proposals for our organisations to carry out some form of monitoring of performance against the Implementation Plan. We will be discussing these proposals with IUK, and hope to be able to put in place a more formal structure for monitoring in due course.
Once agreed, any monitoring will call upon CECA members to provide feedback on their experience to determine whether the changes that the government hopes to put in place are actually occurring, and that the benefi ts are being delivered.
15
CECAcommunicates
The year 2012 will bring a time of radical reform in workplace pensions that will affect us all.
Commonly known as auto-enrolment, these changes are being implemented to encourage more people to save towards retirement. From October 2012, new employer duties require every employer to provide a qualifying workplace pension scheme and the majority of employees will need to be enrolled into the scheme. Employers will also be required to make a minimum contribution into it. B&CE’s workplace pension, EasyBuild, makes automatic enrolment (auto-enrolment) simple and is designed to be a qualifying scheme.
Don’t be alarmed by the Pensions Reform. Honestly, it’s as...
From October 2012, Workplace Pensions are changing... You need to start planning now
Find out how B&CE can help, visit: www.easybuildpension.co.uk Or call us on 0800 612 8080
It’s Easy with EasyBuild. B&CE’s Workplace Pension.
easy as pie.
Workplace Pension ReformPatrick Heath-Lay asks: Are you ready for 2012?
Period Total minimum contribution
Of which employers contribute at least
Staging date: September 2016
2% 1%
October 2016 - September 2016
5% 2%
From October 2017
8% 3%
Auto-enrolment will mean that ‘eligible employees’ or ‘jobholders’ will be automatically enrolled into their employer’s qualifying pension scheme and make contributions into it. Auto-enrolment will apply to all employees aged between 22 and State Pension Age (SPA) and earning over the income tax personal allowance (£7,475 in 2011/12), regardless of employer size.
The introduction of these new employer duties means that there is a need to take action now. Putting a strategy in place now will allow the employer to decide how best to implement the changes and manage the impact on their business and workforce.
The requirements are detailed and complex but essentially an employer will need to:
Identify eligible workers for automatic enrolment • and establish those who are not already active members of a qualifying pension scheme
Pay a minimum of 1% of band earnings from their • staging date, rising to 3% of each employee’s band earnings into this scheme from 2017
Offer an opt-out procedure for jobholders and • process any resulting refund of contributions correctly
Keep records for 6 years, including opt-out and • opt-in details and levels of contributions made. This is needed to demonstrate to the Pensions Regulator that the employer has fulfi lled their responsibilities.
Employees who have opted-out will be automatically • re-enrolled every 3 years.
Number of employees
Staging Dates
120,000 - 800 Over 12 dates from 1 October 2012 to 1 October 2013
799-250 Over 3 dates from 1 November 2013 to 1 February 2014
249 - 50 Over 4 dates from 1 April 2014 to 1 July 2014
Less than 50 Over 18 dates from 1 August 2014 to 1 February 2016 (with some exceptions as small groups will stage on the 1 March 2014)
continued on next page
The employer duties are being implemented over a 4 year period, known as staging, with the largest companies being the fi rst to comply from 1 October 2012. The staging date will depend on the size of the employer’s largest PAYE scheme.
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CECAcommunicates
Civil Engineering Contractors Association
1 Birdcage Walk, London, SW1H [email protected]
020 7034 0450@CECANational
NCE Contractors File: Last Chance to Enter
CECA is supporting the New Civil Engineer Contractors File again this year, and we encourage those members who are eligible for inclusion to respond to the related survey.
All fi rms expecting to be included should have received an email from NCE containing instructions on how to enter along with a unique username and password to access the online entry form. If your fi rm has not received such an email, please contact Mark Hansford on 020 7728 4543 or [email protected].
Entries to the Contractors File will be used to shortlist fi rms for the NCE/CECA Contractors of the Year Awards. Winners will be announced alongside publication of the File in July.
Firms still wishing to be included but who have not yet responded should do so as soon as possible to guarantee inclusion in this year’s File.
EasyBuild – the easy way to the right solution
As a trusted and specialist provider of pension solutions for the construction industry for over 30 years, B&CE aims to ensure EasyBuild is the right pension solution for construction companies, allied trades and all employees.
EasyBuild is the construction industry’s leading workplace pension and one of the largest Group Stakeholder Pension Schemes in the UK*. Launched in 2001 and developed exclusively for the construction industry, EasyBuild currently has over 500,000 members with £670 million of funds under management as at December 2010. All employees, not just operatives are eligible to join, making EasyBuild the right solution for your entire workforce.
We are on hand to guide employers through the entire auto-enrolment process from regular updates on the legislative process to guiding them through the administration, helping them to easily understand each stage and their obligations. We will also help communicate what can be complex messages to the workforce, helping employers consult and keep employees on track and in the know. B&CE are here to help with your compliance obligations and to make auto-enrolment as simple as possible.
Whilst these changes are complicated we know construction employers want to concentrate on running their business rather than be concerned with pension’s legislation. With EasyBuild, there is no need to worry as B&CE is here to support employers and provide the right solution.
Find out more
You can fi nd out all the details surrounding the reforms and auto-enrolment in our ‘guide to pensions reform’ which you can download from B&CE’s website at www.bandce.co.uk/downloads or contact us direct on 08457 414142, email [email protected]
* Pensions World Survey December 2010
Patrick Heath-Lay is Director of Finance and Customer Development at B&CE
‘Workplace Pension Reform’, continued from previous page
CECA Increases Rail Expertise
CECA has appointed its fi rst UK Rail Director to expand its activities in the rail sector. CECA Rail Forum Chairman Mike Cocks has taken up the role, providing a focus for our ongoing and increasing engagement activity with Network Rail, the Offi ce of Rail Regulation and other industry stakeholders. Mike will also oversee delivery of CECA’s revised Rail Strategy, with support from staff at CECA’s national offi ce.
