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06.06.14 Contents
Online this week In the magazine
Over the next seven days we will be running a number of News
special features on our website, which include: 9 News
17 Financial news
Contractor round-ups A focus on If you subscribe to Building you automatically get
how contractors have weathered the access to all our website content. Just go to Comment & Analysis
recession www.building.co.uk and follow these three steps
activate your online account: 21 Hansom
Client Q&As Mini interviews with 22 News Analysis
leading construction clients Investigating the problems and drama
Take a couple of minutes surrounding the World Cup build
LOGIN OR
1
BIM Doctor Post questions to our BIM to fill out a few details
expert in a live online session next week REGISTER Agenda
online
26 Leader: Sarah Richardson
QS update Find out how businesses set 28 Richard Threlfall on preparing for the sector
up by former Davis Langdon figures are revolution, plus Wonders & Blunders
You need your
faring
2 ACTIVATE subscriber number,
found on the polywrap of 30 International Salary Survey
BIM webinar Use catch-up to view your copy of Building Ever thought about working abroad? A look at the
this week’s webinar as well as six other International Salary Survey gives guidance on
archived webinars which regions are on the up
You now have full access
Projects
3
CPD Module 14 Get CPD credits with FULL
ACCESS to our website, mobile
our latest module, plus any you have site and tablet app
missed on our archive

Reader competitions
Win great prizes …
Just by finding this week’s
football clad Hansom, who
is hidden somewhere on our
website, and by entering
our World Cup predictor 36 World Cup stadiums
competition at An architectural consideration of the 12
www.building.co.uk/ stadiums set to host the Brazil World Cup
WorldCupcomp
Legal
Great give-away Get your research bundles online 42 Lindy Patterson Why not to use the variation
process to deal with a breach of contract
42 Ally Mackenzie Lessons Brazil should have
learned from London 2012

Economics
Download white papers 46 Tracker
Download updates to our Education and
Construction activity was up in April, although
Sustainability white papers, available to Building
civil engineering fell to a 12 month low
readers for free, plus extra research bundles on key
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Homes on ‘small sites’ exempt
from 2016 zero carbon target
Exclusive analysis shows one third of homes could be exempt from standard under new government plans
By Joey Gardiner and Vern Pitt
Up to a third of new homes could be
exempt from meeting the
government’s zero carbon standard,
under plans outlined this week in
the Queen’s speech.
In the Queen’s speech on
Wednesday the government
committed to passing the long-
awaited legislation needed to set
up the “allowable solutions”
mechanism, designed to allow
builders to offset carbon emissions
off-site, seen as the final part of the
zero-carbon definition.
However, the government also said
that homes built on “small sites” will
be exempt from the requirement to
meet the zero carbon standard in
2016. The government has not said
how it will define “small sites”, and
has promised to issue a consultation
on the level “soon”. It already defines
schemes of less than 10 units as
“minor developments” in the planning
system, but a spokesperson for the
Home Builders Federation said sites
of up to 50 homes would be “a good
starting point for the debate” on
where the exemption should kick in.
An analysis, undertaken by
construction data company Barbour
I SUSPECT THERE HAS
BEEN PULL-BACK ON
THIS FROM THE
TREASURY, AND I
REGRET THAT
ANDREW STUNELL MP, LIB DEMS
ABI for Building, of residential
planning applications submitted
in the last year, shows that 12.4%
of proposed new homes are on sites
of less than 10 homes.
However, if the bar is set at 50
homes, the analysis shows that over
a third – 36.4% – of new homes
would be exempt from hitting the
full zero carbon standard.
Housebuilding lobby groups
welcomed the promise to set out
the government’s allowable solutions
regime, and the proposed exemption
for small sites, with the Federation
of Master Builders saying it would
create “more local homes.”
However, environmental groups
have reacted angrily to the news,
with the UK Green Building Council
describing it as “deeply worrying.”
The former minister in charge of
NEWS
housing p15 / finance p17
the zero carbon policy, Liberal
Democrat MP Andrew Stunell, also
hit out at the proposed exemption.
He told Building: “I don’t think
there is any reason to exempt any
buildings from this regime. The
whole point of allowable solutions is
to give developers the ability to
mitigate carbon emissions off-site
where it isn’t possible on the site.
“This government has said it
wants to be the greenest ever, but at
every stage there has been pull-back
from the Treasury. I suspect that
there has been pull-back on this
from the Treasury, and I regret that.”
Nina Skorupska, chief executive
of the Renewable Energy
Association, said the announcement
was ”one of the worst row-backs
on green policy of the whole
coalition government”.
The garden path
Consultancies Urbed, Barton
Willmore and PRP have been
shortlisted for the £250,000
Wolfson Economics prize for their
garden city proposals. The three are
joined on the shortlist by London-
based masterplanner Wei Yang &
Partners and Chris Blundell, the
director of regeneration at Golding
Homes. PRP worked with
homelessness charity Shelter on its
proposal (pictured). Their entries
were picked from 279 proposals
demonstrating how to turn the
garden city concept into a 21st-
century reality by a panel of judges
led by property developer Trevor
Osborne. They now have until 11
August to further develop their
proposals before final judging.
Read Barton Willmore’s garden
cities blog at www.building.co.uk
BUILDING MAGAZINE 06.06.2014
 10 / news

Qatar relaunches World Cup

stadium competition
The organisers behind the Qatar 2022
World Cup have launched a second
international architectural competition to
design the flagship stadium that will host
the tournament final.
Architects submitted bids to design the
80,000-seat Lusail stadium last month,
Building understands. The Qatar 2022
organisers ditched an earlier architectural
competition for the stadium in March,
despite being a year into the process.
Foster + Partners produced concept
designs for Lusail stadium (pictured) as
part of Qatar’s World Cup bid.
The news comes amid renewed calls for
Fifa to re-run its selection process for the
2022 World Cup, following fresh
corruption allegations surrounding
Qatar’s bid.

aSend your project images to

buildingimages@ubm.com

Government plans infrastructure reforms

The government plans to push a
raft of reforms through parliament
to speed up infrastructure and
housing developments before next
year’s general election, writes Iain
Withers.
A forthcoming infrastructure bill,
announced in the Queen’s Speech,
will introduce measures to speed up
the planning process for both
nationally significant infrastructure
projects and local schemes, permit
quangos to make public land
available to developers more quickly
and turn the Highways Agency into
a government-owned company.
The bill also proposes controversial
reforms to encourage fracking for oil
and gas and changes to the zero
carbon homes policy (see page 9).
The range of policies incorporated
into the infrastructure bill and the
inclusion of the fracking reforms,
which are likely to face fierce
opposition, has sparked concerns the
bill may not pass parliament before
next May’s election.
Stephen Joseph, chief executive of
the Campaign for Better Transport,
said: “The infrastructure bill
represents a high-risk strategy from
the government, which badly
misreads the public mood.
“A bill combining road-building
and fracking will attract serious and
sustained criticism from a wide
range of quarters in the run-up to
the next election.”
For nationally significant
infrastructure projects, the bill
would simplify the process for
making changes to development
consent orders and enable an
examining authority to be
appointed earlier in the process.
The bill will deliver a promised
cut in red tape for developers
around planning conditions,
meaning developments can go
ahead where a planning authority
fails to discharge the conditions in
a given time frame.
It will also aim to permit quangos
to transfer land directly to the
Homes and Communities Agency,
designed to fast-track making land
available for housing developments.
It will also turn the Highways
Agency into a government-owned
company, which the government
said would ensure the “stable,
long-term funding needed to plan
[road projects].”
Jeremy Blackburn, RICS head of
policy and parliamentary affairs,
said he welcomed the planned
boost to infrastructure projects but
said there was “a frustrating lack of
detail on the much talked about
Garden Cities, broadband and
immediate delivery of key
infrastructure projects.”

GMB: Blacklisting compensation talks ‘on the brink of breaking down’

The future of the compensation scheme for
blacklisted workers has been cast in doubt, after
one of the unions involved in setting it up claimed
talks were “on the brink of breaking down”.
A spokesperson for union the GMB told Building
representatives of blacklisted workers and
contractors walked away from a “concluding
meeting” between the parties last month “without
reaching agreement”.
However, the Construction Workers Compensation
Scheme denied the talks had broken down.
The primary area of disagreement is over the level
of compensation contractors are willing to make
available to workers who were blacklisted, with the
GMB claiming firms have made between £15m and
£20m available, which they said was “grossly
inadequate to deal with the devastating damage
inflicted on people in their working lives and the
colossal invasion of their privacy.”
Blacklisting came to light in 2009 when the
Information Commissioners Office seized a
database of over 3,000 construction workers used
by 44 companies to vet recruits.
Last October eight firms – Balfour Beatty,
Carillion, Costain, Kier, Laing O’Rourke, Sir
Robert McAlpine, Skanska UK and Vinci – set up
the Construction Workers Compensation
Scheme in a bid to resolve the dispute.
A spokesperson for the Construction Workers
Compensation Scheme said: “We don’t agree that
talks between the compensation scheme and unions
have broken down, talks are ongoing.
“We have already made significant concessions,
including on compensation levels. We are
disappointed that the GMB is representing the
situation in this light.”

06.06.2014 BUILDING MAGAZINE

 news / 11

Revealed: Hinkley deal’s Online this week....

£6.7m cost to public

Friday 6 June

DECC figures show cost of negotiating deal with EDF went 69% over budget
■ World Cup special
By Vern Pitt Enter our competition to predict the
Brazil 2014 winner, and win England
The cost to the taxpayer of the deal match tickets for a European
to provide financial support for Championship qualifier
EDF’s £16bn Hinkley Point nuclear
plant project ran 69% over budget in
the last financial year, government Monday 9 June
figures reveal.
Figures published by the ■ Priority Schools Building
Department of Energy and Climate Programme – key questions
Change (DECC) last week showed answered
the cost of negotiating the deal for Hinkley Point ■ QS update: Find out how the start
the plant with the French utility up businesses set up by former Davis
firm ran to £6.7m in the 2013/14 “insufficient budget for external subsidy going to EDF through the Langdon figures are faring
financial year, 69% more than the advisers” and the cost had deal could be as much as £17bn.
£4m the department had budgeted. subsequently increased. In the initial report of its
DECC said a change to “project The news comes as the project investigation in January, the EC Tuesday 10 June
timelines” meant there was reaches a crucial stage of its said that given EDF’s maximum
development with the European expected capital cost the project ■ Find out which contractors have
Commission (EC) set to rule on would be profitable without a won the most green construction
whether the project is receiving too revenue guarantee from the projects in the past year
THROUGH much government support over the government and that the whole
NEGOTIATIONS DECC next month. contract for difference system
The deal, called a “contract for risked “crowding out” investment Wednesday 11 June
IS WORKING HARD TO difference”, was agreed last October in renewable energy projects.
ENSURE ANY and guarantees that EDF will be A DECC spokesperson said: ■ The grand construction projects
that were never built
CONTRACT AWARDED paid £92.60/MWh for the electricity
from the plant for 35 years, which is
“Hinkley is a multibillion-pound
investment – construction alone
REPRESENTS BEST roughly twice the current wholesale will cost £16bn. 
VALUE FOR MONEY price of power. The government is “Through the negotiations, DECC Thursday 12 June
also underwriting much of the is working hard to ensure any
FOR CONSUMERS construction risk on the project contract awarded for Hinkley ■ Stadium cost model
DECC SPOKESPERSON through its UK Guarantees scheme. represents the best value for money
The EC estimates the total public for consumers.”
Plus, on Building.co.uk over
the coming week you can:
Earls Court threat as Labour eyes legal challenge ■ Download updates to our
The new Labour-controlled Hammersmith and Fulham now a newly elected Labour councillor in Hammersmith, to best-selling education and
council has appointed a lawyer to review property deals review property development contracts signed under the sustainability white papers, free to
agreed by the previous Conservative administration, in Tories. The Tory-led administration signed several major Building subscribers
further evidence that the council is considering deals, including with Stanhope for the redevelopment ■ Access special research bundles
overturning major schemes in the area, including the of the former BBC Television Centre and another for the on key topics including BIM and
planned £8bn redevelopment of Earls Court. redevelopment of the Riverside Studios arts complex. contracting from the Building archive
The Conservatives lost control of Hammersmith and The Earls Court scheme covers 77 acres and will ■ Read exclusive Q&As with some
Fulham council in last month’s local elections. include a 7,500-home neighbourhood, along with offices, of the industry’s biggest clients
The Labour party campaigned against the £8bn Earls leisure, hotel and retail space, a primary school, library, an ■ Find out which contractors have
Court scheme in its election manifesto, promising to integrated health centre and five-acre public park. weathered recession the best with
renegotiate the deal and protect two council estates that It received planning permission from the previous our exclusive data
are set to be demolished to make way for the development. Tory-led Hammersmith and Fulham council and the Royal ■ Put your questions to our BIM
The Labour council has appointed Guy Vincent, former Borough of Kensington and Chelsea, which remains expert
managing partner of City law firm Bircham Dyson Bell and Conservative controlled.

BUILDING MAGAZINE 06.06.2014

 12 / news
Clients draft plans to shorten hybrid bill process
Infrastructure clients are drafting
plans to shorten the hybrid bill
process for major projects by handing
more detailed work to the planning
inspectorate, writes Vern Pitt.
The National Infrastructure
Planning Association (NIPA), whose
board members include bosses of
Heathrow and Thames Water, is
working on plans to reform the
system to halve the time it takes to
approve large infrastructure projects.
Speaking to Building, Steven
Norris, NIPA chair and former
transport minister, said the current
hybrid bill system was “sclerotic
and outdated”.
Construction industry recovery slows in May
The momentum of recovery in the
construction sector is at its slowest rate
since October last year, according to the
latest Markit/CIPS report.
The monthly survey of purchasing
managers recorded a value of 60.0 in
May – down from 60.8 the previous
month and from the six-year high of
Step into the arena
The developer behind Arena Central,
a 2.3 million ft2 city centre scheme in
Birmingham, has submitted a
detailed application for the first
building in the masterplan. Arena
Central Developments, a joint
venture between Bridgehouse
Capital and Miller Developments,
submitted plans for the 140,000ft2
1 Arena Central, designed by
architect Make. The submission
follows the revelation by Building last
month that the developers have
decided to push ahead on
construction of the scheme this year
– dependent upon planning approval
– despite having not secured a tenant
for the building.
aSend your project images to
buildingimages@ubm.com
06.06.2014 BUILDING MAGAZINE
Norris said the planning
inspectorate should take over the
drafting process after the second
reading in parliament, which is the
point at which petitions from
objectors to a hybrid bill are heard
THE CURRENT SYSTEM
IS UNPREDICTABLE.
THE RESULTS DEPEND
ON IF YOU CATCH MPS
ON A GOOD DAY
ANGUS WALKER, BIRCHAM DYSON BELL
64.6 in January. But May’s figure was
the thirteenth successive month where
activity has been above the 50.0 no
change level.
Housebuilding remains the star
performer in the industry although the
survey said the pace of activity eased to
a three-month low while the rise in
by MPs. The result would then be
voted on by MPs.
Under the current system the
drafting process is dealt with by a
parliamentary committee, which
only sits part time. Norris argued
handing it to a full-time agency
would be “beneficial”, and had been
for other types of large project.
He said NIPA is currently drafting
legislation to implement the
changes, but would not be drawn on
when NIPA plans to submit this
draft to government, or when he
wants to see it enacted.
Norris predicted that HS2, which
entered the committee stage in April
commercial building activity was the
weakest in the sector for seven months.
Civil engineering work increased on
April’s figure. Despite the blip, Tim
Moore, senior economist at Markit, said:
“The UK construction sector is enjoying
its strongest overall phase of expansion
since the summer of 2007.”
and has received 1,925 petitions and
objections, would take four years to
get planning permission because of
the slowness of the current system.
Angus Walker, partner and head of
infrastructure at law firm Bircham
Dyson Bell, said such a move could
“halve” the time it took to approve
infrastructure projects and make the
process more “predictable”.
He said: “The current system is
unpredictable – the result depends
on if you [objectors] get them [MPs]
on a good day.”
For more breaking news see
www.building.co.uk
APPOINTMENTS
Clients
United House has appointed Rick de
Blaby as chief executive. De Blaby will
take over from Jeffrey Adams in August,
when Adams becomes chairman.
Consultants
Hyder Consulting has appointed a new
chairman, Jeffrey Hume, who will
succeed current chairman Sir Alan
Thomas after the firm’s annual general
meeting on 1 August 2014.
Hilson Moran has appointed Jason
Horner as head of infrastructure
services.
Leadership and Management has
appointed Seth Cooper as director of
corporate services.
Contractors
SPIE UK has appointed Steve Gibbs as
managing director of its facilities
services business.
GB Group has appointed Jon Hinson as
business unit director for the north.
Sisk has appointed Mike Peasland as a
non-executive director.
T Clarke has appointed Tony Giddings as
non-executive director.
Severfield has appointed Tony
Osbaldiston and Kevin Whiteman as
non-executive directors.
 news / 13

Crossrail unveils revised plans

for controversial station design
Local council and architectural heavyweights had called for improved design for Ealing Broadway station
By Vern Pitt
Crossrail has unveiled revised plans
for its controversial Ealing
Broadway station following
concerted pressure from
campaigners and a wider row over
the design quality of outer London
stations on the £15bn project.
The redesign, drawn up by architect
Bennetts Associates, includes an
enlargement of the ticket hall and a
more extensive covered public realm
space to the front of the station.
Matthew White, Crossrail’s surface
director, also confirmed that Crossrail
was in the process of modifying
designs for several other stations.
This comes after Building last year
revealed that Crossrail had shunned
the use of the Cabe design review
process on its 27 outer London
surface stations, sparking warnings
from leading architects and local
authorities that rail bosses were
missing a once-in-a-century chance
to produce well-designed stations
that will stand the test of time.
Bennetts Associates’ original
design for Ealing Broadway, which
was submitted for planning
permission last year, came under
fire from Ealing council and local
groups, and became the focal point
of the row around the design quality
of the redeveloped surface stations
on the Crossrail project.
In response, Crossrail instituted a
design steering group with
contributions from architect HOK,
which was appointed by the council;
Allies and Morrison; and Child
Graddon Lewis, which is working
on nearby developments.
The revised plans, unveiled on
Monday, include nearly doubling
the size of the ticket hall to include
17 barriers and improving space for
people to queue to buy tickets.
A revised canopy in front of the
station will link the adjacent
buildings and is designed to turn the
station into a landmark within the
The new design for Ealing Broadway by Bennetts Associates
town centre.
Speaking on Monday, Julian Bell,
leader of Ealing council, said: “It’s
fair to say that when the original
application came in we were fairly
underwhelmed.
“We feel through this process we
have got something rather special.”
However, local campaign group
Save Ealing’s Centre wrote to Isabel
Dedring, London’s deputy mayor
for transport, earlier this month to
say even the revised designs left
them with major concerns. sdafgasdgasdgsagasdaddbdvcvxcxv
Bennetts Associates’ original design, which came under fire from local groups
The letter, signed by the leaders of
local campaign groups and Sir Peter Marks, co-founder of Marks Barfield there was still the “option” to use the
Hall, Bartlett professor of planning Architects. They called for a design design review, Crossrail preferred to
and regeneration, said: “While the review process on the 27 outer use “design steering groups” with a
new designs are a significant London surface stations. collection of local stakeholders. He
improvement, they shame the In February, Andrew said: “It has been a very productive
wonderful tradition of station Wolstenholme, Crossrail chief way to draw out what are the
design, begun by Brunel.” executive, paved the way for a U-turn objectives where we need to improve
Last year Crossrail came under on the decision, saying there was the design.
pressure from a raft of famous “still an opportunity” for “In other areas we are working with
architects including Richard Rogers; redevelopment of the stations to be the council to focus on the council
Will Alsop, architect of North externally reviewed. masterplan and what role they see
Greenwich tube station; and David But this week White said while the station playing.”

Westfield expansion to bring new homes and retail to west London

Boris Johnson, the mayor of London, has approved
plans for a £1bn expansion of the Westfield
shopping centre in west London, which include a
230,000ft2 John Lewis store as well as more than
1,300 new homes.
The development will also include restaurants
and cafes, office space, a children’s play area
and a new leisure complex, and is expected to
create around 6,700 permanent jobs.
Under the permission, Westfield’s residential arm,
Westfield Shoppingtowns Ltd, will build 1,347 homes.
Of these, 162 will be affordable homes, 40% of which
will be social rented, with the possibility this number
will increase subject to viability assessments.
The development is part of the White City
opportunity area, which the mayor’s office has
identified as having the capacity for 5,000 homes.
Tim Harrison, head of format development at
John Lewis, said: “This is very positive news. We look
forward to bringing our offer closer to customers in
west London.
“We will continue to work closely with Westfield
during the next design stage and towards delivery
of the shop for 2017.”

BUILDING MAGAZINE 06.06.2014

 14 / news

Cable to force firms to publish payment data

Big construction firms could be
forced to publish data on payment
practices under proposals to improve
payment across the industry unveiled
by the government, writes Vern Pitt.
In December 2013 the government
issued a consultation on tackling late
payment across the UK economy.
Last Friday it said it intended to
require large firms to publish details
of their payment performance.
The announcement comes after the
government published the
Construction Industry Payment
Charter in April. The charter, which
was developed by the Construction
Leadership Council, commits
signatories to pay all suppliers
within 30 days by January 2018.
Last week’s announcement said:
“We will work with businesses to
develop a new, robust reporting
framework that has useful content
and is structured in a way that is
genuinely helpful to suppliers and
customers.”
The reporting framework would be
designed in a way that minimises
additional cost to businesses. The
government intends to implement
the changes as part of the Small
Business Enterprise and
Employment Bill, announced in the
Queen’s Speech on Wednesday.
Vince Cable, business secretary,
said: “For too long too many large
companies have been getting away
with not paying their suppliers on
time to maximise their profits. It is
small business that is suffering as a
result and it needs to stop.
“The government has taken action
to create a responsible payment
culture but we need to go further.
We will now make it compulsory for
large companies to publish
information about their payment
practices so that those who are not
playing fair can be held to account.”
The goverment said it would use
the payment charter as a model for
similar charters in other industries.

Build homes ‘above hospitals’ Salford housing transfer to trigger

Redeveloping existing NHS buildings to
include apartments above could provide
77,000 news homes in London, claims a
report published by consultant WSP.
The firm said the opportunity would
represent almost 20% of the 400,000
homes needed in the capital over the
next decade, as well as enabling the
NHS to redevelop parts of its estate.
The London Health Commission
recently published a report that found
the NHS is spending £50-60m annually
on maintaining NHS buildings that are
not being used or are not fit for purpose.
WSP recommends an overbuild
development strategy including building a
combination of six, 12 or 18 storeys of
flats above NHS buildings. The report only
considers hospital buildings without A&E
facilities due to planning constraints.
Bill Price, director at WSP said: “If
private developers were allowed to
invest in this land it would help plug the
gap for more homes in London.”
£75m of refurb works
The government has given the
go-ahead to the transfer of 8,500
social homes in Salford to housing
association Salix Homes in a move
that is set to trigger £75m of
refurbishment work.
Kris Hopkins, housing minister, gave
the go-ahead by approving the writing
off of £65m of historic debt held
against the homes.
The stock transfer will see the
installation of 4,000 new kitchens and
bathrooms, 3,000 heating upgrades
and the replacement of the windows
on 2,000 properties.
The news came a day after the
government revealed its plans for
spending £400m under its “affordable
rent to buy” scheme announced in the
Spending Round 2013.

Housing stats new-build sales and completions in April 2014

Private sector registrations and completions are up year on year, while public sector registrations dip
New-build, sales, registrations Regional completions
and completions
Region Total plots
APR 13 APR 14 Scotland 760
Average daily sales 255 101 Northern Ireland 193
Private registrations 8,481 8,944 North-west 581
Private completions 6,073 6,970 North-east 242
Housing association Yorkshire and Humberside 492
registrations 3,003 2,968 Merseyside 175
Housing association Wales 298
completions 1,655 1,837 West Midlands 693
East Midlands 694
East Anglia 932
NHBC is the leading warranty and insurance provider London 1,932
for new homes in the UK. Established over 75 years South-east 1,149
ago, its main purpose is to help raise the standard of new homes and South-west 753
provide protection for homebuyers. NHBC statistics are based almost
exclusively on information relating to its 13,500 registered Total 8,894
housebuilders, which construct more than 80% of new homes in the
UK. As such, they represent a unique source of information on new
home construction and the housebuilding industry.
For further information visit www.nhbc.co.uk.

06.06.2014 BUILDING MAGAZINE

 news / 15

Rules to boost flood alleviation

measures suffer further delay
Long-awaited development rules to help prevent flooding delayed for second time this year
By Vern Pitt
The long-awaited introduction of
rules to boost the inclusion of flood
alleviation measures on
developments has been delayed for
the second time this year.
Under the Flood and Water
Management Act 2010, developers
will have to install sustainable
drainage systems, which allow more
water to seep into the ground rather
than flowing into the waste water
system, and have their plans to do so
approved by local Sustainable Urban
Drainage Approval Bodies (SABs).
But four years after the law was
passed the regulations to implement
this part of the law have not come
into force, largely because many local
authorities have not set up the SABs.
The changes had been due to take
effect in October 2014, but in a letter
to various stakeholders including
the Home Builders Federation and
the Local Government Association,
until the sabs are
in place you cannot
implement the
proposed
legislation
spokesperson, hbf
Peter Unwin, director general of the
Department for Environment, Food
and Rural Affairs (Defra), confirmed
this implementation date had now
been scrapped.
He said: “While several
departments are working hard on
this with Defra’s Sustainable
Drainage Systems (SuDS) team, it
has become clear that we will not be
in a position to implement Schedule
Three [the regulations] from
October 2014, as we had hoped.”
Unwin added that the government
was “committed to implementing
SuDS at the earliest available
opportunity, but not in a way that has
any adverse impact on development”.
He also said that the secondary
legislation required to implement
the regulations would be laid in
parliament six months before it
came into force to give all
stakeholders time to prepare.
The delay is the second this year.
The regulations had been due to
come into effect in April but were
pushed back to October at the start
of 2014.
David Balmforth, senior vice-
president of the Institution of civil
Engineers and spokesman on
flooding, said the delay was
“extremely frustrating”.
He said: “SuDS is only one of the
measures that we need to deal with
flooding risk management, but it’s
an important one.”
Balmforth said that it would be
difficult to get SuDS rolled out to
existing developments, which he
said was necessary, until they were
included in new ones. Developers
have previously said the requirement
to use SuDs could increase the costs
of some developments.
Following the latest delay, a
spokesperson for the Home
Builders Federation said the delay
was “sensible”.
He said: “I think it is common
sense that until the local authorities
have the SABs in place, you cannot
implement the proposed legislation,
otherwise it doesn’t work.”
Defra spokesperson said: “We are
working with the developers and
local government to develop the
processes, standards and guidance.
This takes time but it is vital that we
get it right and don’t rush it.”

Interserve reduces yearly business travel carbon emissions

Interserve has reduced its yearly carbon emissions
from business travel in the UK by 2,269 tonnes of
CO2, the firm’s annual sustainability report reveals.
The firm reported that it emitted 48,818 tonnes
of CO2 from business travel in the year to 31 March
2014, down from 51,643 in the previous year.
However, emissions levels in the year to
31 March 2014 were only 1% lower than the
emissions from business travel in the year to the
end of March 2012.
The firm also reported that it had reduced
water consumption by 9% to 38,403m3 in the
year to 31 March 2014, down from 42,090m3 the
previous year.
Interserve first launched its sustainability goals
for 2020 in March 2013 and has spent the past
year mostly gathering baseline data against which
to measure its future performance.
Tim Haywood, group finance director and head
of sustainability at Interserve, said that the firm’s
sustainability credentials, particularly with regards
to social sustainability, were “instrumental” in the
firm’s appointment to build two new headquarters
for West Yorkshire Police.
He added: “That [attitude] is probably more
prevalent in the public sector but it is starting to
resonate in the private sector and is helping us to
have strategic conversations with clients.”
Haywood said the firm was well on its way to
achieving its goals for the year to 31 March 2015
and that he was confident the firm would hit
targets such as buying all its forest products from
sustainable sources.

BUILDING MAGAZINE 06.06.2014

 standing room only

walk on Flushglaze

0333 8000 881

sales@glazingvision.co.uk
www.glazingvision.co.uk

Terrace Yard, Richmond. In collaboration with Berkeley Homes.

 finance / 17

Severfield ‘underestimated’ Cheesegrater job

Severfield “totally underestimated”
the job of erecting the steel structure
of London’s Cheesegrater tower, the
firm’s chief executive Ian Lawson
has admitted, writes Iain Withers.
Lawson said the complexity of the
Cheesegrater contract, on which the
firm was forced to write off £10m,
was “totally underestimated by us,
particularly in terms of logistics and
erection on site”.
But he said the firm had
“tightened its processes” since then
to “ensure there aren’t any surprises”
on contracts, including introducing
monthly contract check-ups, and
had also recruited a new legal
director to “make sure we’re not
signing up to onerous or
unacceptable terms and conditions”.
His comments came after
Severfield reported improved results
for the year to 31 March 2014 on
Tuesday, including a reduced
pre-tax loss of £4.1m, and predicted
The Cheesegrater is due for practical completion this summer
recovery in the specialist steelwork
sector by the end of the year.
Lawson joined the steelwork a £10m write-off on 122 Leadenhall He said the firm’s focus this year is over the previous period.
contractor in September after tower in London, known as the “margin growth rather than revenue The firm said it made an overall
£20.1m of cost overruns on problem Cheesegrater (pictured). These cost growth”. Severfield’s underlying underlying pre-tax profit, which
contracts were identified, including overruns resulted in a series of profit operating margin hit 3.3% in the strips out exceptional costs, of £4m,
warnings, the exit of Lawson’s year to 31 March 2014, compared to compared to a £21.5m underlying
predecessor Tom Haughey and a -6% the previous year. loss the previous year.
[THE JOB WAS]TOTALLY pre-tax loss of £28.9m in the 15 Revenue fell to £231.3m, down The firm’s UK order book stood at
months to 31 March 2013. from £318.3m, partly reflecting a £168m on 31 March 2014, down
UNDERESTIMATED BY Lawson said the firm was feeling “reduction in capacity” in the marginally from 1 November 2013 at
US, PARTICULARLY IN “increasingly optimistic” about the business due to downsizing and also £172m, while the Indian order book
TERMS OF LOGISTICS steelwork sector and expected an a shorter reporting period. grew slightly to £41m from £34m
upturn in “live contracts at the end The firm was hit by further losses over the same period.
AND ERECTION ON SITE of this year or start of next year”, from its Indian steelwork joint
IAN LAWSON, SEVERFIELD particularly in the offices, retail and venture, with its share of losses For more financial news see
www.building.co.uk
sport stadiums sectors. growing to £3m, up from £0.3m

Willmott Dixon profit falls by 19% due to low-margin contracts

Lower than expected margins on a “small number” of
underperforming projects caused Willmott Dixon’s
pre-tax profit to fall by 19% to just over £16m.
In a statement ahead of its full results being
published at Companies House, the firm reported
pre-tax profit and amortisation of £16.2m in the
year to 31 December 2013, down from £20.1m the
previous year.
The firm’s revenue remained stable at £1.02bn,
down a fraction from £1.03bn in 2012.
Rick Willmott, chief executive of Willmott Dixon,
said the reduced pre-tax profit “reflected a small
number of projects now completed that did not
deliver the margins we had expected”. However, he
said the firm’s turnover “continued to hold up well”.
He added: “We are seeing more opportunities across
our industry owing to greater economic confidence
and a stronger housing market and we have focused
our skill sets and resources accordingly.
“Our frameworks and long-term contracts
continue to give us a robust pipeline of construction
and support services work while our development
business, Regen, delivering both homes for sale and
private rent, really ‘came of age’ in 2013 with a
significant volume of development that will increase
in 2014 and beyond.”
Turnover from Willmott Dixon’s Capital Works
division fell slightly to £899m in 2013, down from
£904m in 2012, which Willmott said was a “resilient
performance given the trading conditions”.
He said that high levels of repeat business and a
flow of projects from its regeneration business had
helped it sustain work levels.
The firm’s Support Services division reported a
rise in revenue to £121m in 2013, up from £110m
in 2012 due to growth in its repair and
maintenance business, and new energy
efficiency work under the Energy Companies
Obligation programme.
Willmott added that the construction industry
was “coming out the other end” of the
“prolonged recession”.

BUILDING MAGAZINE 06.06.2014

 18 / finance
UK recovery helps WYG to
return to full-year profit
Consultant plans to pay dividend to shareholders for first time since 2008 and announces Libya contract win
By Vern Pitt
Consultant WYG has announced it
has returned to a full-year profit in
the year to 31 March 2014.
WYG made a pre-tax profit of
£1.8m over the period, after making a
£3.3m pre-tax loss the previous year.
Revenue grew marginally by 1% to
£126.7m, up from £125.7mm.
WYG’s UK business experienced
the most marked turnaround,
reporting an operating profit of
£244,000, up from an operating loss
of £3.8m the previous year.
The UK order book increased to
£45m as of 31 March 2014, up from
£29.3m the previous year.
The firm also announced it plans
to pay a dividend to its shareholders
WSP acquires Australian engineer Mount Anvil reports record profit
WSP has acquired a 50-strong
and increased housing pipeline
Australian engineer, specialising in
commercial tower work.
Winward will be integrated into WSP’s
structures business and rebranded as
WSP’s structural, civil and facade
cosultancy arm in the Asia Pacific.
Winward has offices in Melbourne,
Brisbane and Perth, and has worked
on several major schemes in Australia,
including Tower Melbourne, 170
Victoria Street and Freshwater Place.
NEWS IN BRIEF
Interserve wins £150m hospital deal
The University Hospital Southampton
NHS Foundation Trust has appointed
Interserve as its long-term
development partner. The partnership
will run for up to 25 years and will be
worth around £150m. The contractor
will work with the trust and health
and social care property company
Prime to secure funding for new
development projects.
06.06.2014 BUILDING MAGAZINE
Paul Hamer, chief executive, WYG
for the first time since 2008. The
firm proposed to pay a dividend of
0.5p per share for the year, subject to
approval by shareholders at WYG’s
annual general meeting.
Paul Hamer, WYG chief executive,
told Building that the decision to
Kevin Winward, executive chairman
for Winward and of the new WSP
Structures said: “Winward has always
promoted specialism [...] Now, together
as WSP Structures, our specialist
structural / civil / facade team will work
in an integrated manner with WSP’s
specialist building services team, in
much the same way as we have before
joining forces, but with the added value
of a common delivery platform and a
holistic project delivery aspiration.”
Lend Lease secures £151m prison job
Lend Lease has beaten rivals
Interserve, Kier and Carillion to win
the £151m contract to build a “super
prison” in Wrexham, north Wales. The
Ministry of Justice said the contract
“ensured” the total cost of the project
would be £212m, £38m less than the
original estimated cost of £250m.
The prison is due to be complete and
fully operational by late 2017.
pay a dividend reflected
management confidence.
He said: “It’s one of those decisions
that you cannot step back from.
Once you start paying a dividend
people expect you to do that in
perpetuity.”
Sean Cummins, WYG group
finance director, said that in Europe
the firm is bidding to take a lead
role on a series of major
infrastructure projects run by the
European Union, following a
recently renegotiated £15m trade
finance facility with Santander.
Cummins said the firm’s financial
history had left it unable to bid for
major projects as the leader of a
consortium – a role it has fulfilled in
the past and that attracts better
London housing developer Mount Anvil
has reported a 52% increase in pre-tax
profit in the year to 31 December 2013.
The developer posted pre-tax profit of
£15.4m, up from £10.1m last year, while
turnover increased 50% to £162.2m.
The value of Mount Anvil’s
development pipeline at year end was
£930m, up from £665m the previous
year and equating to 1,333 homes.
Lloyd’s eyes move to ‘Gotham City’
Lloyd’s of London could be about to
leave its famous Richard Rogers-
designed headquarters in the City of
London for Make’s new Leadenhall
Triangle scheme, dubbed “Gotham
City”. The Sunday Times reported that
the insurer is looking at moving out
because the company is worried about
the cost of the upkeep of the building,
which was built in 1986.
margins – but that its new credit
facility allowed it to do so.
“It improves our revenue growth
options but also profitability,” he said.
The consultant also announced it
has won a contract worth up to
£28m over up to 34 months to
provide security, justice and defence
consultancy to the Libyan
government. WYG won the contract
in joint venture with Australian
consultant Cardno Ltd.
Writing in WYG’s accounts Hamer
said: “WYG is now in better shape
than it has been for several years,
with a highly differentiated
consultancy offering, a financial
structure which fully supports its
potential, and clear momentum in
its order book.”
Killian Hurley, chief executive of Mount
Anvil, said supply of land remained a key
issue despite the record profit.
Hurley said: “We’re keen to build more
outstanding London homes, but
additional quality sites need to be made
available to developers like us who have
the expertise and capacity to deliver.”
Mount Anvil is planning to deliver
2,500 new London homes by 2018.
Balfour Beatty cashes in PPP assets
Balfour Beatty has sold PPP stakes in
two UK projects, cashing in on £97m.
The contractor has sold its 50%
interest in the University Hospital of
North Durham PPP project and its
100% interest in the Knowsley
Building Schools for the Future
project. Balfour Beatty said the
proceeds would be invested in new
and existing projects.

HANSOM SEEN AND HERD
This week, cows cross the line at Cambridgeshire’s guided busway project, tourists are told where to go
by a former transport minister, and we celebrate longevity and charitable giving in equal measure
Showing the way
One of my hacks was amused to witness a
couple of tourists asking for directions on the
tube from former transport minister Steven
Norris and HS2’s commercial director Beth
West last week. Little did the sightseers know
that they were talking to two people who have
been instrumental in shaping London’s
transport network into what it is today (West
spent nine years working for Transport for
London and Tube Lines). In fact, it would be
hard to think of anyone better to ask for
directions. Thankfully, the tourists were
complimentary about the Tube’s service and
design or else the whole thing could have got a
bit awkward.
Rebels with a cause
A date for your diary here. Al Jazeera launches
a TV series called Rebel Architecture on
18 August – a series of six half-hour
documentaries showcasing radical architects
from around the world. It profiles architects from
Vietnam, Nigeria, Pakistan, Israel/Occupied
West Bank and Spain who are “using design to
tackle the world’s urban, environmental and
social crises”, according to the press info. Projects
include designing flood and earthquake-proof
buildings, self-builds in public spaces on the edge
of the law and architecture designed to promote
social cohesion in a war zone. One to watch.
CREDIT: BEN GRANTHAM
comment / diary / 21
Old-timers and to raise money for a neonatal unit at West
At 201 years old I often feel my age, truth be told. Suffolk Hospital. To sponsor visit http://bit.
Few construction firms have spanned the period, ly/1jAQgCy.  
but Sheffield-based architecture practice
Hadfield Cawkwell Davidson comes close. The The next generation
practice celebrates its 180th birthday next month. This column has documented various initiatives
It was founded in 1834 by Matthew Ellison to inspire the next generation in construction.
Hadfield and its first commission was to design a Now I hear the Construction Industry Council
monument to the citizens of Sheffield who lost (CIC) has launched a mentoring system pairing
their lives in the cholera epidemic in 1832. Today up young construction professionals with 18
it is 80-strong and is working on projects industry leaders, including Gardiner &
such as the extension of Manchester City’s Theobald senior partner Tony Burton
Etihad Stadium. They are having a bash at and CIC chairman Jack Pringle.
Mercure Sheffield St Paul’s Hotel on 12 Meanwhile the Greater London
June to celebrate the milestone. I’ll raise a Assembly hosted a Dragons’
glass from here. Den style competition at
London’s City Hall last week to
Fancy that select a student for the
Homelessness charity CRASH is once again Mayor of London’s
hosting its annual dragon boat race next month, Low Carbon
where teams from across the construction Entrepreneur of
industry compete to be crowned champions in a 2014 and a
mad paddle across a reservoir in north London. £20,000
Building will once again be fielding a team to prize.
take part and as ever will be in fancy dress. You Bravo!
have been warned. To sponsor Building visit
http://bit.ly/1rpcodb. Elsewhere in the world of
huffing and puffing for charity, 25 staff from
Suffolk Housing have been taking part in
a 171-mile cycle around East Anglia this
week to celebrate its 40th anniversary
PULL THE UDDER ONE
As if Cambridgeshire’s guided busway project hadn’t
had enough problems, it was last week invaded by
cows. In April, the council, having received £33m
from contractor Bam Nuttall to settle a lengthy legal
dispute over cost overruns on the busway, resolved
to pursue further legal action for the cost of fixing a WHERE’S
raft of alleged faults on the line. Then last week a
neighbouring herd of cattle escaped their field and HANSOM?
wandered onto the line at Swavesey delaying buses Find this week’s sporty Hansom on our
by around 15 minutes. Whether fencing to keep website for a chance to win £50 of
livestock off the line will be added to the council’s list John Lewis vouchers. Just email
hansom@ubm.com with his location.
of gripes is yet to be seen.
All correct answers received by
midnight 12 June will go into
aSend any juicy industry gossip to a prize draw
hansom@ubm.com
BUILDING MAGAZINE 06.06.2014
A N A LYS I S & C O M M E N T
Richard Threlfall p28 / Wonders & Blunders p28

THE
BEAUTIFUL
GAME
Busted budgets, poor planning and
co-ordination, horrendous delays,
cancelled transport schemes,
laborious bureaucracy, corruption,
mass protests and onsite fatalities
– apart from that, preparations for
the 2014 World Cup seem to have
gone very smoothly. Luke McLeod-
Roberts reports from Brazil

A construction worker walks outside the National
Stadium in Brasilia, Brazil, in May this year
W
hen fans tune in on 14 June to see
England play Italy in its 2014 World
Cup debut, the backdrop will be the
spanking new Amazônia Arena in the northern
Brazilian city of Manaus. The stadium, designed
by Germany’s GMP, is certainly eye-catching – it
is meant to look like a giant indigenous woven
basket – but critics fear that the venue, which
was finished over a year late and 30% over
budget at a cost of £180m, could yet become
a white elephant due to the lack of a strong
football tradition in the city. Of equal concern
in congested Manaus is the failure of local
authorities to meet their promises on about
£500m of related projects – an airport upgrade is
still not finished and two major public transport
schemes were scrapped. Manaus has declared
holidays for public employees on match days
in an effort to mitigate possible transport chaos
during the event.

06.06.2014 BUILDING MAGAZINE


The city is not alone in its poor preparation –
there have been delays or cost overruns in every
one of the 12 host cities, fuelling public anger
which led to widespread protests in Brazil last
year. Recently former Brazilian footballer
Ronaldo, also member of the World Cup’s Local
Organising Committee, added his voice to a
chorus of criticism, saying that he was
“ashamed” of Brazil’s level of preparation. So
what exactly has gone wrong?
Delays, debt and deaths
The 2014 World Cup has cost R$26.4bn (£7bn),
based on data from the Financial Times’ Latin
America research service, FT LatAm
Confidential, which updates official data with
information from project managers. Over 80%
of this total has come from the public purse
either by way of loans or direct investments,
with the final cost coming in at R$1bn more
than the original budget. It would have been a
lot more were it not for the cancellation of a
fifth of the public transport schemes.
Three-quarters of airport, public transport
and stadium projects have been delivered late.
Additional amounts have been spent by the
private sector on 422 hotels, often using loans
from public banks. But in some host cities, such
as Cuiabá in the mid-west, demand surpasses
supply and desperate authorities have called on
local residents to offer up their beds to fans.
Of perhaps most immediate concern is the
series of delays on the stadiums. Just two of the
12 venues were ready by the initial deadline of
December 2012. A further four were complete in
time for the Confederations Cup – the World
Cup test run held in June 2013. The remaining
six were delivered this year, two of them in
April, just two months before kick-off. Although
all of the stadiums have now been handed over
to Fifa, the time available for carrying out
essential tests and adjustments was much
shorter than planned. Some facilities, such as
television screens, were still missing from the
press area during the final test at the Arena de
São Paulo on 1 June and part of the roof in the
western area of the stadium will only be
installed after the World Cup as the glass used
had to be changed (see box overleaf).
On the positive side, the consensus is that the
stadiums have been built to a high standard
and that none of the problems highlighted are
likely to cause serious hitches during the
matches themselves. But the delays did cause
costs to rise. In many instances workers had to
be employed on extra shifts and more expensive
prefabricated materials were used than were
originally planned. The final R$8bn (£2.1bn)
stadium spend was about two-thirds higher
than that initially budgeted. The greatest cost
overrun was on the Maracanã stadium in Rio
de Janeiro, which cost R$1.05bn, 75% more
WORLD CUP INVESTMENTS
Sector Original Final
cost R$m* cost** R$m
Airports 5,576 9,029
Public transport 11,569 6,157
Stadiums 4,965 8,006
Other^ 3,241 3,159
Total 25,351 26,351
than budgeted, in large part because of changes
to the design. It would have been even higher
were it not for intervention from federal auditors
who argued that the budget “border[ed] on
complete fiction”, triggering the removal of some
items that were listed more than once. Elsewhere
auditors found cases of overcharging.
More worrying is the relatively high number of
fatalities during the stadium construction. A total
of nine workers died across four stadiums and
their associated developments, seven more than
on the construction programme for the 2010 Cup
in South Africa. Investigations into these deaths
are ongoing, but initial forensic reports as well as
information from interviewees suggest that seven
involved accidents.
Two fatalities that received considerable media
attention were those on 27 November 2013 at the
Arena de São Paulo. The deaths happened after a
crane that was lifting part of the roof collapsed. A
spokesperson at the main contractor Odebrecht
says that it was “the 38th time that this type of
procedure had been carried out in Odebrecht’s
works” and that “up until then no other serious
accident had occurred.” Sintracon, the national
construction workers’ union, has received reports
from workers involving a total of 521 serious
accidents nationwide during stadium
construction. Antônio Ramalho, president of the
São Paulo chapter, says some stadium workers
Workers still at work in May this year at the venue for the World Cup opening ceremony in San Paulo. Brazil is
preparing to host about 600,000 people from around the globe for the FIFA World Cup beginning 12 June
news analysis / Brazil World Cup / 23
Difference % of projects % projects
% delayed cancelled
62 75 8
-47 63 36
61 83 0
-2.5 n/a n/a
3.9
were on 18-hour shifts and believes that this may
have contributed to some instances of fatalities
and accidents. “A lot of projects weren’t ready on
time, this put pressure on workers,” he says.
Airports have also been beset by delays. Nine
out of 12 projects will not be completed in time for
the World Cup, although in many cases only
relatively minor changes will be necessary
afterwards. Total spend in this area increased by
about 60% to R$9bn from the original budget,
but much of that extra amount was the result of
investments in three privately-run airports, two of
which were finished on time.
In contrast public transport, initially billed as
one of the major legacies of the event for ordinary
Brazilians, has seen total investments cut by
almost half to R$6.2bn. A total of 19 schemes
were cancelled and 63% of the remainder will not
be ready for the games. This poor performance
helped ignite public opposition to the World Cup
in mass protests last year – 1 million people took
to the streets. It’s not hard to see why. Historical
underinvestment and incentives towards car use
have congested cities. Commutes in rickety buses
of up to four hours are not uncommon, and users
say they feel unsafe. São Paulo metropolitan
region has the most extensive metro network in
the country, but at 75km it is still 80% shorter
than that of Greater London, despite São Paulo
having three times the population. »
BUILDING MAGAZINE 06.06.2014
 24 / news analysis / Brazil World Cup
A crowd gathers at the Brasilia bus terminal to rally against the holding of the FIFA World Cup in May this year.
The protesters also expressed sorrow at the death of a construction worker at a World Cup stadium
Bad planning and bureaucracy
“There have been a series of errors,” Paulo Simão,
chief executive of the Brazilian Chamber of the
Construction Industry (CBIC), an industry lobby,
tells Building. “It starts with bad planning and
disorganisation and also involves delays in
projects and tenders. All this led to major and
lamentable delays.”
An example of this bad planning is on the two
transport projects that were scheduled in
Manaus. Federal auditors blocked funds after
they found that the schemes followed part of the
same route and even had some stations in the
same location. Without sufficient resources of its
own to pay for the work, the state government
cancelled the schemes.
Deputy minister of sport Luis Fernandes
admits that the federal government “should have
had […] closer integration with the Local
Organising Committees from the very
beginning”. “We were only included […] a little
more than two years ago,” he says.
There is also a sense among much of the public
of pervasive corruption on some World Cup
projects. While much of this is unsubstantiated, in
2011 the Court of Justice of the Federal District in
the capital Brasília found the president of the state
transport company, José Gaspar de Souza,
complicit in fraud designed by two bidders, Dalcon
and Altran, to share the works on the Brasília light
rail scheme linking the airport with the city. As a
result the R$364m project was shelved.
But perhaps the biggest problem has been
Brazil’s famous bureaucracy. “There were a lot of
delays in the definition of laws and rules, as well
as in the release of funds,” says Simão. Despite
efforts by the federal government to speed things
up, the public tendering process in Brazil can be
notoriously slow, as can the time spent on
obtaining environmental licences. Legal disputes
over land expropriations dragged on for over a
06.06.2014 BUILDING MAGAZINE
ARENA DE SAO PAULO
When the World Cup kicks off on 12 June at the
Arena de São Paulo many of the 68,000 expected
fans may not realise that just a fortnight before final
tests were still being carried out at the venue for this
momentous event.
The last-minute nature of these preparations
follows a series of problems in the development of
the city’s World Cup venue.
São Paulo authorities originally planned to use an
existing stadium. But the R$555m project was
rejected by Fifa in 2010 and the event was moved to
the Itaquerão stadium, requiring a rebuild that added
R$265m to costs. Further setbacks came when bank
funds were delayed. Then in November 2013, just a
month before the planned completion, a crane
collapsed. The accident caused the death of two
workers and damaged part of the facade, although
not the terrace structure, according to contractor
Odebrecht. Itaquerão was inaugurated in April 2014,
but some of the facilities in the press area were still
missing on the final test on 1 June and part of the
roof structure will only be installed after the Cup.
year in some instances and the frequent
interventions by the multiple and overlapping
audit bodies also sometimes held things up.
It is no surprise then that Brazil’s own goal on
World Cup preparation is raising questions over
the same country’s preparedness – or lack of – for
the Rio Olympics in 2016.
Olympics setbacks
In April vice-president of the International
Olympic Committee (IOC) John Coates
commented that the preparation for the R$37.5bn
(£10bn) Rio 2016 Olympics was “the worst” he
had “ever experienced”. Although he
OLYMPICS INVESTMENTS
Sectors Investment R$m
Facilities 6,498
Sanitation 2,325
Operation of Games 7,000
Transport 13,330
Urban renewal 8,318
Other 110
Total 37,581
subsequently withdrew his comments, they
fuelled widespread concerns about the city’s
readiness, coming as the German sailing team
also complained that the Guanabara Bay next to
the city was too polluted for test events later this
year. To make matters worse, the tendering of
works for essential improvements to one of the
four main sites, the Deodoro complex, is
significantly behind schedule.
Deputy minister Fernandes argues that overall
the preparations are “on time” and that the
improvements to Deodoro “are all very simple
projects.”
However, the delay on tendering works at
Deodoro was because responsibility for the
project kept getting shifted from one level of
government to another. This suggests that in
some instances at least the Olympics suffers from
the same problems of bad planning and lack of
co-ordination as the World Cup.
Some transport projects, such as a new metro
line, are advancing and excavation works on the
Olympic park (which also includes the athletes
village) are complete, but not everybody is
convinced. “At the beginning I was a major
enthusiast about the 2016 Olympics,” says the
CBIC’s Simão. “[But] I’m very worried. I hope Rio
will learn from the mistakes of the World Cup
and improve things.”
For a round-up of the Brazil World Cup stadiums,
go to P36
ONLINE FOOTBALL
COMPETITION
Building is able offer a
fantastic competition
prize of two tickets to
watch England vs Slovenia
at Wembley as part of the European Championship
Qualifiers on 15 November. All you have to do is
predict which football teams in this year’s World Cup
will battle through to be finalists on 13 July and
ultimately who will be the victor of that final match.
But hurry, we need all entries before the first match
kicks off between Brazil and Croatia at 9pm,
12 June. Terms and conditions are online. To enter go
to www.building.co.uk/worldcupcomp
06.06.14 Agenda
Leader

spectacle. The Beijing Olympics in
2008 led to the death of at least six
construction workers, while the
Athens Olympics in 2004 left a
legacy of unused, derelict venues.
The London Olympics programme,
which was rightly hailed as a success
for the industry, was still beset in its
Learning from Brazil early days by a spiralling budget,
Sarah Richardson necessitating design changes to
make a success of its preparations
for the Olympics in two year’s time.
This attention is likely to fade, for
four weeks at least. But in the longer
term, long after the tournament’s
final whistle, it should serve as a
reminder of the potential social and
financial pitfalls of such a large
build programme – and by
extension, the absolute necessity of
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When the World Cup kicks off in
Brazil’s Arena de São Paulo on
Thursday, the attention of football
fans will be firmly focused on the
performances of Neymar and co –
and, a few days later, for the England
contingent, the fortunes of Roy
Hodgson’s men. But the setting will
be the product of a build programme
that has drawn not just the attention,
venues. Meanwhile, even amid the
build up to this World Cup,
headlines are being created by the
preparations for Qatar 2022 – partly
over the validity of the bidding
process, which could yet see the
tournament moved elsewhere and
the whole build abandoned, but also
over the damnable conditions under
which thousands of migrant
workers work in that country.
The reaction to Brazil’s
realistic expectations and detailed,
long-term infrastructure planning.
And, although the intense scrutiny
that has accompanied Brazil’s
preparations is usually only reserved
for global sporting events, with their
mass appeal and immovable
deadlines, these necessities equally
can – and should – be applied to
more prosaic construction work.
If the same scrutiny – and urgency
– that accompanied the preparations
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but also the deep-rooted concern of
international sporting officials and
construction experts alike.
The 2014 World Cup build has, as
we explore on page 22, been plagued
by escalating costs and delays. It has
seen transport schemes abandoned
in an effort to get the venues, at least,
finished in time for the competition.
Most shamefully, it has also cost nine
construction workers their lives.
Controversy over construction
programmes for major sporting
events is, of course, a familiar
development programme, however,
has been particularly critical. The
consistent opposition of swathes of
the Brazilian public to the amount
spent on hosting the tournament
has, as a result of the belief that it is
diverting money away from public
services in need of investment, been
more widespread and sustained
than pockets of indigenous
opposition to other recent events.
And international scrutiny has been
intensified not least because it has
fuelled fears about Brazil’s ability to
for an Olympics or a World Cup
were applied by the UK to creating a
long-term plan to upgrade its energy
infrastructure, for example, the
drive to find a solution to our
looming energy crisis might look
less in danger of running into extra
time than it currently does. And
ultimately, avoiding a situation in
which Britain’s lights go out would
be a bigger prize than lifting the
trophy this summer – even if it
might not feel like it just now.
Sarah Richardson, editor
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From the BIM community
It’s easier when you stop saying BIM
Frank McLeod, UK head of project technology for WSP
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 comment & analysis / agenda / 27

The week in pictures

Image of the week: T2 – Touch down
United Airlines’ flight UA958, from Chicago, was the first arrival at Heathrow Terminal 2 last week. The newly opened building,
also known as the Queen’s Terminal, has been built to handle 20 million passengers per year, but the introduction of flights is
being staggered to avoid the problems associated with the opening of T5 in 2008. Total spend on the project was £2.5bn.
HEATHROW AIRPORTS LIMITED

Reader polls The result of last week’s online poll is in. We

asked, should the government scrap its
multibillion-pound stimulus for the housing
market in order to prevent a housing bubble?
Should Fifa re-vote on the location of the 2022 World Cup, following Here’s how you voted…

allegations of corruption in Qatar’s successful bid? 50% ■ Yes

Vote online at www.building.co.uk/Qatarworldcup 50
■ No
■ Undecided

40

33%
30

17%
20

10

BUILDING MAGAZINE 06.06.2014

Agenda
Comment / Richard Threlfall

Talking about a revolution

Disruptive technology is about to change the face of the construction industry
as we know it. Managing this change is not necessaily a costly process, but it
does require businesses to envision the future and dare to innovate

T
he construction industry is on the cusp of
a revolution – everyone knows it, but as
always with a revolution pending, you are
nervous about which side you ought to be on. In
every discussion I have in the industry, the first
question leadership teams are asking is what they
should be doing, and the second is to find out
what everyone else is doing. If the future is binary,
and your business is not to end up consigned
to the annals of history, you need visionary
leadership. You must innovate to survive.
Construction is now at that point where there is
a critical mass of disruptive technology about to
completely change the face of how the industry
works. Some technologies offer a step-change
in efficiency in individual businesses, shifting
competitive advantage; others will change the
relationships between clients, contractors and
the supply chain; some will make skills in today’s
industry redundant. Each business needs to
think through what it believes the future will look
like, then work back to the changes that need to
be made today. Some of our best businesses have
been thinking like this for years – innovating,
investing and continually improving. But many,
alas, still have their heads in the sand.
Think about the photographic industry. It was
seen as quite progressive as the camera evolved
over a century but the fundamentals were
changed by the ability to capture digital imagery.
Do you remember the names Agfa, Ilford and
Kodak? All of them had been in existence more
than 120 years, but went bust in the last decade.
Before the Second World War the average life
of a firm in the S&P 500 was 75 years – now it is
15 years.
So how might the industry look in 10 years’
time? Here are three models, not mutually
exclusive:
■ The manufacturing model. NG Bailey recently
suggested that off-site manufacture saves 35%
of build cost and 40% in labour requirement.
Combine offsite with Building Information
Modelling (BIM), embedded from the client right
through to the last component supplier, and most
of the value in the industry will be earned away
from the site.
■ The consolidation model. UK construction
is one of the most fragmented industries in the
world, with more than 90% of our contractors
having fewer than 10 employees. It has long
been recognised that this fragmentation
drives inefficiency, and hence there is value
to be unlocked in both horizontal and vertical
consolidation. In this future, businesses will
capture some of the efficiencies in BIM by buying
up their supply chains and turning themselves
into vertically integrated outcomes providers.
■ The technology takeover model. Much
of the industry’s future is about technology,
both embedded technologies in assets and
construction technologies in their creation.
Building and asset management systems, BIM,
smart buildings (linked to smart grids and smart
cities); user tracking systems; site-based IT and
laser imaging, to name but a few. But technology

Wonders & Blunders

Andrew Henriques believes that his old school in Pimlico,

designed by John Bancroft in the sixties, was a shining
example of brutalist architecture. While its replacement
is a lesson in ticking boxes Wonder
A noted example of brutalist
When John Bancroft’s sixties landmark and roofs flooding the spaces with light, a white render skin that sits on a base architecture with its concrete and
Pimlico School was demolished in 2008, viewing voids between levels and folding of grey tiled cladding, interspersed with glass construction, the Pimlico
it felt as if a chapter of my youth was gone walls all combined to produce spaces that glass curtain walling and angled metal school, located in Westminster,
with it. Though I didn’t realise it while I was promoted interaction and strengthened cladding – features all too banal and London, had both its admirers and
a student there in the nineties, this building the sense of community throughout the typical of the now obsolete Building critics within the local community.
was an architectural manifestation of the school. Some described it ‘“a futuristic Schools for the Future programme. Designed by John Bancroft and
comprehensive school education policy monstrosity”, others a brilliant example of The performing arts space provides the built in 1967-1970, the school
of the Inner London Council and was brutalist architecture. focal point within the central courtyard would become his most well-known
particularly reviled by the Westminster The building that replaced Bancroft’s but is somewhat awkward with its piece of work. The school began
local establishment. Pimlico School certainly meets today’s dressed irregular facade. Perhaps this a phased demolition in 2008, in a
Looking beyond the leaky windows and standards for thermal comfort and architecture reflects the fact that the redevelopment that formed the
thermally-poor envelope, the building scores highly in tick-box sustainability. school now delivers the same educational new, smaller Pimlico Academy.
itself was remarkable – an elegant But great architecture is never conceived programme on a smaller footprint. The last remaining part of the old
stacked configuration of glass and fair- merely in compliance with legislation. Andrew Henriques is an associate at building was demolished in 2010.
faced concrete blocks. Glazed facades Rectilinear pocket windows puncture Buckley Gray Yeoman

06.06.2014 BUILDING MAGAZINE

 comment & analysis / agenda / 29

is expensive and few contractors have the

Many businesses are ■ Build stronger alliances with suppliers.

margins to invest material sums. So the value in
that future industry is captured by the technology
providers themselves, who eventually control the
platforms and the data.
Many businesses are acutely conscious of these
emerging threats to their existence, but unsure
what to do. The structure of the industry does not
give much freedom of manoeuvre, with few clients
willing to support investment. Public companies
in particular can find it challenging to persuade
their shareholders to take a longer-term view.
But preparing for a different future doesn’t
necessarily involve throwing money at it. There
are three things – essentially cost-neutral – that
every business in the sector can, and should, do:
■ Recruit those who have the vision and skills
to see a different future and take a risk by giving
them a substantive say in the future direction of
the business. This encompasses both hiring and
trusting younger talent and hiring from outside
the industry.
“
acutely conscious of
emerging threats to
their existence, but unsure
what to do. The structure of
the industry does not give
much freedom of manoeuvre,
with few clients willing to
support investment
Encourage and support their investment
programmes. Put in place common systems to
drive efficiencies and offset the investment costs
in the partnership.
■ Enter the world of the technology industries.
Seek out alliances with technology businesses.
Help start-ups with seed capital and access
to your markets, in return for stakes in their
products.
Policies like these, brought together within
a strong vision of the future of the business
clearly articulated by the leadership team, offer
the best chance, in my view, of a business coming
out on top.
Any prediction is dangerous, but let me close
with this one. I would be prepared to put a lot
of money on less than half the current Tier 1
contractors surviving in their present form over
the next decade. And it could be you.
Richard Threlfall is head of infrastructure, building
and construction at KPMG

Blunder
Built on the site of the old Pimlico
School, Pimlico Academy first
opened its doors in 2011. The new
academy is a visual and performing
arts college, with a capacity for
more than 1200 pupils. The site is
also home to a library and a local
centre for Westminster’s adult
education service. Designed with
a U-shaped build surrounding a
protected courtyard, the academy
has a more prominent street
position than its predecessor,
in addition to improved sports
facilities for the wider community.
Credit: SEIER+SEIER

BUILDING MAGAZINE 06.06.2014

HAYS INTERNATIONAL
SALARY SURVEY 2014
As memories of the dark days of recession in
the UK fade, working abroad may no longer be a
necessity, but is often still an attractive option.
Jim Dunton looks at Hays’ International Salary
Survey 2014 for regions that are on the up

Canada
Jobs most in demand:

■ Estimators

Ireland
■ Project managers
■ Superintendents

Demand for UK professionals has increased

O
ptimism about the UK’s long-awaited
economic recovery has grown over the
past year and while there will be many
in the construction sector keen to see further
improvements before hanging out the bunting,
skills shortages are already being reported in
some areas.
What does this mean for attracting staff to
work abroad? Certainly senior industry figures
aren’t predicting a return en masse of all those
who left this country out of financial necessity
during the downturn, but the evidence suggests
firms are having to work harder to lure staff
abroad.
over the past 12 months and is projected to
continue growing because of a number of
heavy industrial projects in the north, mostly
for oil and gas sites. Downtown high-rise office
and condominium developments offer further
opportunities in major urban centres. QSs with
five to 10 years’ experience are particularly
sought after, which is reflected in increased
wages in this category.
Jobs most in demand:
■ M&E design engineers
There have been continued improvements in the
Irish economy over the past year and projects are
beginning to pick up. However, an abundance of
locally qualified and experienced candidates means
there are limited opportunities for UK workers.
Intel’s €5bn investment in upgrading a large facility
in Kildare has seen an increase in demand for
professionals with semi-conductor and
pharmaceutical building services knowledge.

Hays’ International Salary Survey 2014 shows
evidence of strong demand for UK construction
skills around the world, particularly in the UAE
and Canada, but also a drop-off in China,
France and Spain – none of which feature in
this year’s survey on the grounds that too few
staff were placed to provide credible data.
In Singapore and Hong Kong, demand for UK
professionals is projected to rise in the coming
year, demand reflected in rising wages.
However, Hays notes that both territories are
becoming more prescriptive about the specialist
expertise they require from expats and are
also exhibiting a preference for local staff for
other roles. Its data indicates that top-end
salary expectations for UK structural engineers
in Hong Kong have risen by 50% since last
year’s survey, while those for civil engineers are
not far behind. »
Chile
Jobs most in demand:
■ Engineering design
Chile is a new addition to the International Salary
Survey for 2014 and an area where demand for UK
professionals is predicted to grow over the next 12
months. Hays says European professionals are
beginning to realise how good the country’s economy
is, considering the range of opportunities on offer in
engineering and construction, particularly in Santiago
and Antofagasta due to the mining industry. Fluency
in Spanish is considered an important criterion by
employers, but engineering design is one of the roles
least affected by the language barrier.

06.06.2014 BUILDING MAGAZINE


Sweden
Jobs most in demand:
■ Quantity surveyor
Demand for UK construction professionals
has picked up, and is expected to continue at
similar levels for the next year. The role of a
quantity surveyor does not traditionally exist in
Sweden, so, where these skills are needed
Swedish firms will recruit from abroad. Local
language skills are essential.
UAE
Jobs most in demand:
■ QSs
Projects in the UAE were increasingly looking for
UK construction professionals in the past 12
months – a trend that is expected to continue.
Chartered QSs are in demand as candidates
already based in the region are considered too
expensive. Hays’ UAE office also covers Qatar,
where there is strong demand for experienced civil
engineers for major infrastructure projects linked to
the 2022 World Cup and Qatar Vision 2030.
Obtaining a visa is straightforward for expats with
the relevant professional qualification and
like-for-like project experience.
feature / international salary survey / 3
Singapore
Jobs most in demand:
■ Project managers
■ Tunnel managers
UK professionals with expertise in tunnelling
projects and stations are in demand in Singapore
because of a range of major civil infrastructure
projects under way. Singapore has seen growth in
its staff requirements over the past 12 months and
this is expected to continue. However, it has also
recently been named the world’s most expensive
city. Tunnel managers with boring machine, earth
pressure balance and slurry experience are
sought after.
Australia
Jobs most in demand:
■ QSs
■ Project engineers
UK construction professionals are well placed to
take advantage of a reviving commercial building
market, particularly evident in New South Wales,
Queensland and Victoria. Hays says there is
demand for candidates with experience in large
-scale commercial construction, high-rise projects
and residential development. New South Wales
will need professionals with experience on road,
rail and tunnel work for projects such as the North
West Rail Link, West Connex and North Connex.
Hong Kong
Jobs most in demand:
■ Civil engineers with rail, bridge and
tunnel experience
Demand for UK construction professionals has
remained steady over the past 12 months but is
predicted to increase, with a shortage of mid- to
senior-level engineers. Recruitment pressure has
been created by delays to the Hong Kong-Macau-
Zhuhai bridge project, but demand for expat
architects, building surveyors and project
managers has decreased, with local experience
prioritised. Salaries have increased for expats
with more than 10 years’ experience in specialist
areas, such as rail, aviation, and casino work.
New Zealand
Jobs most in demand:
■ Civil engineers
■ Structural engineers
Demand for UK construction professionals
remained constant over the past 12 months,
but is projected to rise over the next year.
Driving factors include continued rebuilding
work following the 2011 Christchurch
earthquake and increased property
development. The economy is performing well
and labour market supply issues are expected
to increase demand for expat construction
workers and architects. Engineers with seismic
experience are particularly in demand.
BUILDING MAGAZINE 06.06.2014
 32 / feature / international salary survey
Benefits:
Who offers what?
Contributions to the costs of relocation and
accommodation were made by employers in Hong
Kong, Singapore and Canada, according to Hays.
Firms in those nations typically also contributed
towards benefits such as childcare, schooling and
healthcare. Flights home to the UK are offered as
a benefit to employees in Hong Kong, although
Hays noted that firms in the former British colony
were becoming less likely to offer wholesale
relocation packages, except to senior staff.
In Singapore, employers generally offer
relocation packages and some will offer an
all-inclusive salary, particularly for roles such as
tunnel managers.
there is strong demand
for UK construction
skills around the
world, particularly in
the UAE and Canada
» Despite positive economic news and the fact
that Australia still has the highest nominal pay
rate for experienced construction project
managers, the upper salary range for the role
has dropped from £130,000 in 2013 to
£120,000, in 2014 a situation Hays blames on
exchange rate fluctuations. It says regional
variations make it impossible to give a typical
salary valid for the whole country.
Hays Construction managing director
Andrew Bredin says a “rapidly changing
landscape” of local skill shortages will continue
to be a factor impacting pay rates and should
prompt those seeking work abroad to “do their
homework”. He cited tunnelling skills for
Singapore and civil engineers with seismic
experience for New Zealand as examples of
premium-ensuring CV fodder.
If the outlook for China is more uncertain
than it has been for many years, there is no
disagreement that momentum is returning to
the Middle East. The upper end of the salary
range for experienced QSs in the UAE has gone
up by 38% since 2013 and a “typical” salary for a
06.06.2014 BUILDING MAGAZINE
QS in the UAE is now £83,500 – almost double
the UK figure of £46,500. Mark Prior, EMEA
managing director for programme, cost and
consultancy at Aecom, says an expected upturn
in Dubai was likely to draw talent away from
Saudi Arabia and Qatar, prompting intensified
expat recruitment by the last two.
This continuing overseas demand means that
many professionals can still expect to receive
significant boosts to their salaries and
conditions by making the move abroad, except
in the case of architects moving to Chile or
senior structural engineers relocating to Ireland
– rare examples in the survey of international
work that pays less than in the UK.
Alan Muse, director of built environment
professional groups at the RICS, says that this
salary boost, in addition to the fact that a lack
of domestic opportunities during the recession
has been only one factor driving construction
talent abroad, means an influx of returnees
is unlikely.
“For many people, the best way to get
experience on world-class projects is to move
abroad and decisions will be driven by their
ambition rather than the state of the home
economy,” he says.
Prior says that so far there is no clear flow of
expat workers returning because of the UK
recovery, despite the reduced capacity from the
downturn leading to a shortage of senior
surveyors and senior project managers in the
domestic market. “There will be a balance
between those coming back and new people
going overseas,” he says.
Rachel Ashley, group head of resources at
EC Harris, also says that while the UK has “an
Methodology
The Hays International Salary Guide 2014 is
based on salaries of candidates placed by the
company in the past 12 months. It is compiled by
staff worldwide who understand the local markets
and are specialists in the built environment. The
salaries are typical annual salaries for permanent
positions and are guide figures only because of
possible discrepancies in terminology, purchasing
power and local variations. They also do not take
into account local government tax regimes, hours
of work and currency of payment. The salary
figures have been converted into sterling based
on conversion rates in May 2014 and have been
rounded to the nearest £1000.
China, France and Spain were removed from the
guide this year as UK expats were not placed in
sufficient numbers to provide comprehensive
data. Chile and Sweden have been added to the
guide for the first time. The role of Building
surveyor was also omitted due to insufficent data.
awful lot of opportunities”, the consultancy is
seeing a trickle rather than a flood of staff
coming back to the UK.
“I wouldn’t say a huge number of people are
returning,” she says. “In the past, because
things here were on lockdown, it was a case of,
if you wanted to move upwards you had to go,
but that is not the driving factor now.
“Now, people feel that if they are going to go
abroad, it needs to be for the right reasons, and
sometimes that can also be a lifestyle choice.”
 feature / international salary survey / 33

Construction project managers

(5-10 yrs industry experience) (10 yrs industry experience)
Country Typical salary (£k) Typical salary range (£k) Typical salary (£k) Typical salary range (£k)
2014 2013 2014 2013 2014 2013 2014 2013

Australia – – 55 - 100 47 - 110 – – 60 - 120 50 - 130
Canada 62 64 48 -75 51 - 76 68 76 54 - 86 60 - 108
Chile 56 – 40 - 72 – 64 – 48 - 80 –
Hong Kong 46 53 38 - 54 38 - 55 84 65 54 - 116 45 - 76
Ireland 41 46 32 - 49 38 - 55 49 51 41 - 57 42 - 63
New Zealand 51 49 46 - 61 46 - 58 58 60 56 - 66 48 - 72
Singapore 56 50 40 - 66 46 - 58 66 60 61 - 85 55 - 70
Sweden 49 – 43 - 54 – 54 – 54 - 59 –
UAE 54 52 49 - 68 53 - 59 73 80 68 - 116 74 - 84
UK 40 38 38 - 45 36 - 43 46 45 45 - 49 43 - 47

Quantity surveyors


(5-10 yrs industry experience) (10 yrs industry experience)
Country Typical salary (£k) Typical salary range (£k) Typical salary (£k) Typical salary range (£k)
2014 2013 2014 2013 2014 2013 2014 2013

Australia – – 46 - 88 38 - 100 – – 52 - 100 43 - 109

Canada 54 51 43 -70 38 - 64 62 70 54 - 81 57 - 83
Chile 44 – 40 - 56 – 53 – 48 - 72 –
Hong Kong 39 46 36 - 46 36 - 48 56 50 46 - 65 40 - 60
Ireland 37 38 33 - 49 32 - 46 50 46 45 - 54 42 - 63
New Zealand 44 54 39 - 51 38 - 58 51 53 41 - 67 44 - 72
Singapore – 34 – 31 - 37 45 42 43 - 71 39 - 44
Sweden 49 – 44 - 53 – 54 – 54 - 60 –
UAE 55 53 45 - 58 49 - 63 84 74 78 - 117 63 - 84
UK 40 38 39 - 43 36 - 40 45 43 43 - 50 40 - 45

Architects


(5-10 yrs industry experience) (10 yrs industry experience)
Country Typical salary (£k) Typical salary range (£k) Typical salary (£k) Typical salary range (£k)
2014 2013 2014 2013 2014 2013 2014 2013

Australia – – 39 - 60 35 - 65 – – 50 - 72 42 - 70
Canada 33 48 30 - 35 38 - 57 41 62 38 - 43 51 - 76
Chile 24 – 16 - 40 – 32 – 24 - 48 –
Hong Kong 40 51 30 - 51 41 - 61 67 68 42 - 92 56 - 81
Ireland – 21 – 21 - 30 – 38 – 34 - 55
New Zealand 46 40 41 - 51 30 - 51 51 50 46 - 61 50 - 61
Singapore – 38 – 30 - 40 – 43 – 42 - 54
Sweden – – – – – – – –
UAE 49 46 39 - 58 46 - 53 66 63 58 - 74 59 - 67
UK 37 35 35 - 43 30 - 40 45 43 43 - 48 40 - 45

BUILDING MAGAZINE 06.06.2014

 34 / feature / international salary survey

Structural engineers


(5-10 yrs industry experience) (10 yrs industry experience)
Country Typical salary (£k) Typical salary range (£k) Typical salary (£k) Typical salary range (£k)
2014 2013 2014 2013 2014 2013 2014 2013

Australia – – 39 - 70 33 - 90 – – 55 - 77 40 – 93
Canada 38 46 33 - 46 38 - 57 49 60 46 - 51 51 - 76
Chile 48 – 43 - 64 – 64 – 54 -70 –
Hong Kong 46 43 37 - 55 34 - 60 75 60 42 - 108 49 - 70
Ireland 37 25 29 - 45 21 - 38 41 34 33 - 50 34 - 47
New Zealand 44 44 39 - 51 43 - 60 51 55 51 - 62 50 - 68
Singapore – 35 – 30 - 42 – 40 – 35 - 50
Sweden – – – – – – – –
UAE 39 – 29 - 49 – 58 59 50 - 68 59 - 67
UK 35 35 34 - 41 33 - 41 45 39 40 - 50 36 - 42

Civil engineers


(5-10 yrs industry experience) (10 yrs industry experience)
Country Typical salary (£k) Typical salary range (£k) Typical salary (£k) Typical salary range (£k)
2014 2013 2014 2013 2014 2013 2014 2013

Australia – – – 33 - 90 – – – 40 - 93
Canada 38 46 33 - 46 38 - 54 49 57 46 - 51 51 - 64
Chile 48 – 43 - 64 – 64 – 54 - 70 –
Hong Kong 46 43 37 - 55 34 - 60 75 60 42 - 108 55 - 75
Ireland 41 34 33 - 50 25 - 42 45 51 41 - 50 42 - 63
New Zealand 41 41 36 - 51 36 - 55 56 50 51 - 67 44 - 66
Singapore – 37 – 34 - 37 – 63 – 55 - 70
Sweden – – – – – – – –
UAE 47 – 39 - 50 – 70 67 62 - 78 63 - 74
UK 34 33 30 - 38 28 - 36 45 44 41- 47 40 - 50

06.06.2014 BUILDING MAGAZINE

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PRojects
design and construction / technical / project management

The homes
of football While the football on the pitch will be making
headlines in Brazil this month, it’s the host
nation’s stadium construction that has been
highly scrutinised in the build-up. Ike Ijeh reviews
the 12 showcase stadiums that have seen
groundbreaking design as well as serious set
backs during the build
 projects / World Cup stadiums / 

NEW AND REBUILT STADIUMS

Arena das Dunas

CITY: naTal
COMPLETION: 2014
CAPACITY: 45,000
ARCHITECT: PoPUloUS
CONTRACTOR: oaS
COST: £113M

This stunning new arena is the only 2014 World Cup venue designed by stadium
veterans Populous, designers of scores of stadiums across the world including the
london 2012 olympic Stadium and several venues in the 2010 South africa
World Cup. it is also unique in having being delivered by a public-private
partnership. The stadium’s outer shell is formed by 20 vast aluminium canopies
that unfurl around the arena like petals. The canopies are composed of a steel
truss structure clad in aluminium tiles; their form derived from the topography of
sandy dunes that surrounds the city – hence the stadium’s name. The envelope is
completed by polycarbonate infills between the canopies that admit daylight into
the stadium.

T
he Olympics may pitch itself as the
Greatest Show on Earth but the World
Cup is undoubtedly the world’s biggest
single sporting event. The International Olympic
Committee estimates that between 100 and 200
million people around the world tuned in to
watch Usain Bolt retain his second successive
100m title during London 2012, the most-watched
event of the Games. Yet FIFA claims that just
under a billion people, one-seventh of the world’s
population, watched at least part of Spain beating
the Netherlands in the 2010 World Cup Final.
The World Cup is not just a big sporting event;
it is also a major construction exercise. This is
particularly the case in Brazil where preparations
for the 2014 World Cup, which begins on
Thursday, have been managed in conjunction
with those for the Rio 2016 Olympic Games.  programmes for both the World Cup and the Rio
Coinciding with Brazil’s emergence as one of
the world’s key expanding economies, these twin
sporting showcases have unleashed a massive
construction and infrastructure programme
across the country.
While a World Cup does not typically provide as
many architectural opportunities as an Olympic
Games, an estimated £2.4bn has still been spent
on the construction of the 12 stadiums that will
form the World Cup venues, as part of an
estimated £7bn wider construction programme.
More than half these stadiums are either new or
rebuilt, with the remainder extensively renovated.
Some of the completed stadiums have already
been used for the FIFA 2013 Confederations Cup
and others, like the Brasilia National Stadium,
will host events at the Rio 2016 Olympics.
The World Cup has not been without its
controversy. The combined budget for World Cup
stadium construction is three times what was
originally quoted when Brazil won its bid in 2007
and some estimates put the amount of people
displaced nationally as a result of slum clearance
2016 Olympics as high as 170,000.
Construction has also been hit by a series of
delays. All stadiums were supposed to be complete
by last December, but only half hit that deadline
and some only finished as recently as last month.
As a result, a slew of last-minute design changes
has been enforced, including the scrapping of a
retractable roof and the abandonment of plans to
run one stadium entirely on solar power.
Even when the stadiums are complete, at least a
third have not been able to secure a long-term
tenant and therefore have little chance as yet of
achieving post-competition commercial viability.
But worst of all, nine workers have died during
construction of the stadiums and their associated
developments. The culmination of these
difficulties has soured public opinion of the
World Cup and led to a spate of protests. In a
country where football is worshipped, to turn so
many against it is an achievement in itself.
Nonetheless, should all go to plan then
regardless of their fraught gestation, the 12 new
showpiece stadiums reviewed here should set the
stage for a memorable World Cup in a country
which some heretically regard as England’s
successor as the spiritual home of football.
Speaking of which, the England team is set to
play in three of the venues below during the
competition’s group stages. Let’s hope our handy
guide isn’t the closest they get to seeing the rest. »

BUILDING MAGAZINE 06.06.2014

  / projects / World Cup stadiums
NeW aND RebUIlT sTaDIUms (continued)
Arena da Amazônia
CITY: ManaUS
COMPLETION: 1970
RECONSTRUCTION: 2014
CAPACITY: 42,374
ARCHITECT: GMP aRCHiTeKTen
CONTRACTOR: andRade GUTieRRez
COST: £186M
While it is highly unlikely that football is
coming home this summer, england’s
players might at least have hoped that
their first game in the tournament,
located in the amazonian basin that
enjoys Brazil’s highest annual rainfall,
might at least have made them feel at
home. alas not – Manaus’ tropical
climate is one of the most humid in
South america and temperatures for
england’s debut are likely to hover
around 32°C. england manager Roy
Hodgson has already irked local mayor
arthur Virgilio by grumbling about the
weather; one hopes his climatic
forbearance will have increased should
he reach Qatar in 2022. However, the
england team can take comfort from
the fact that their debut will be held in
one of the most striking new World Cup
venues. loosely resembling Herzog and
de Meuron’s Bird’s nest stadium from
the 2008 Beijing olympics, the venue’s
design is specifically attuned to its
tropical climate and exhibits several
passive design features in its initial bid
to be the “greenest” World Cup venue.
its envelope is formed by a gridshell
exoskeleton of overlapping hollow steel
girders, which double as gutters for
Manaus’ high annual rainfall. The voids
between the steel frame are filled by
low-emissivity translucent fibreglass to
reflect heat and aid cooling. However,
partially as a result of the intemperate
local climate, construction has been
beset with problems and delays, the
onset of which forced the abandonment
of plans to power the stadium entirely
by solar energy. The stadium has also
proved to be the deadliest World Cup
venue – three workers died during
construction.
06.06.2014 BUILDING MAGAZINE
Arena Pernambuco
CITY: ReCiFe
COMPLETION: 2013
CAPACITY: 44,248
ARCHITECT: FeRnandeS aRQUiTeToS
aSSoCiadoS
CONTRACTOR: odeBReCHT
COST: £142M
This new multi-purpose venue is actually
part of a much larger regeneration
project that will also bring other leisure,
residential and commercial
developments to a deprived area of
Brazil’s most easterly major city. its
design is also one of the most interesting
and environmentally ambitious of all the
new World Cup stadiums. The stadium
resembles an artificial crater and its
four-sided facade is entirely composed
of eTFe cushions. according to its
designers this is the first time eTFe has
been used in this manner in South
america. The eTFe admits natural light
into six floors of extensive hospitality
areas incorporated into the stadium and
also transforms the stadium into a
pulsating beacon of light and colours at
night. other sustainability features
include rainwater harvesting, a
sophisticated waste management
scheme and a solar power plant that will
generate 1MW of energy for both the
stadium and surrounding developments.
Arena Fonte Nova
CITY: SalVadoR
COMPLETION: 1951
RECONSTRUCTION: 2013
CAPACITY: 48,747
ARCHITECT: SCHUliTz aRCHiTeKTen / TeTRa
aRQUiTeToS
CONTRACTOR: odeBReCHT
COST: £158M
The new “nova” stadium replaces the
original estádio Fonte nova built in 1951.
a devastating terrace collapse in 2007,
which killed seven spectators, led to the
stadium’s demolition in 2010 and its
reconstruction into its current form.
ninety-two per cent of the demolished

Arena Pantanal
CITY: CUiaBa
COMPLETION: 2014
CAPACITY: 42,968
ARCHITECT: GCP aRQUiTeToS
CONTRACTOR: SanTa BaRBaRa /
MendeS JÚnioR
COST: £112M
Cuiabá is located right in the middle of
the South american land mass close to
the Bolivian border and therefore hosts
one of the hottest climates on the
continent. Humidity is high,
thunderstorms are common and summer
temperatures can reach 40°C. This
inhospitable climate forced this new
stadium to incorporate a number of
innovative environmental design
solutions. Remarkably for a stadium, this
one makes extensive use of wood with
certified timber louvers screening the
vertical steel porch facades, providing
shade and cross-ventilation. The four
grandstands that make up each side of
the stadium are separated by open
corners that help aid airflow. Completion
was seriously delayed by a fire last
october and a construction worker’s
death last month.
stadium was recycled for use in its
replacement and construction took 32
months. The new stadium is a
multifunctional venue and has also been
purpose-built for non-football events such
as concerts. The new design maintains
the traditional horseshoe configuration of
Brazilian stadiums, as opposed to the
four-sided quadrangle common in
england. This maximises airflow within
the stadium bowl and allows views
directly onto the pitch from outside.
The roof is composed of translucent
membrane held in tension by a spoked-
wheel frame, which also supports vertical
masts. With a weight of just 45kg/m², the
roof is one of the lightest stadium roof
structures in the world.
Estádio Nacional de Brasília
CITY: BRaSilia
COMPLETION: 1974
RECONSTRUCTION: 2013
CAPACITY: 70,042
ARCHITECT: CaSTRo Mello aRQUiTeToS
CONTRACTOR: odeBReCHT
COST: £535M
This reconstructed stadium has already
scored a number of global firsts. at a
cost of just over half a billion pounds, it is
believed to be the world’s second
most-expensive football stadium after
Wembley. it is the first stadium in the
world to gain coveted leed Platinum
certification. Castro Mello arquitetos,
who designed the original seventies
stadium, have created a striking new
design that forms a contemporary
reinterpretation of the sepulchral,
sculptural architectural forms that
architect oscar niemeyer turned into
Brasilia’s signature Modernist style. a
towering forest of 46m high “piloti”
columns encircles the seating bowl,
provides natural shade and supports a
rooftop concrete compression ring that
holds in place a retractable, translucent
inner roof suspended by a wheel of
radiating spoke-like cables. The
stadium’s green credentials are proven
by the 169,000ft² of rooftop solar
panels; its pollution-neutralising rooftop
membrane and the fact that 95% of the
demolished stadium was recycled for its
reconstruction. although the stadium
has been designed as a multi-purpose
venue, Brasilia is home to no major
football teams and as yet, no future
long-term tenant has been secured.
projects / World Cup stadiums / 
Arena de São Paulo
CITY: SÃo PaUlo
COMPLETION: 2014
CAPACITY: 65,807
ARCHITECT: anÍBal CoUTinHo
CONTRACTOR: odeBReCHT
COST: £268M
as host of the World Cup opening ceremony and
game this Thursday, the arena de São Paulo will offer
millions of viewers the first glimpse of Brazil’s new
showcase football venues. it is perhaps no surprise
then that it is the most expensive new-build venue of
the tournament. The stadium also doubles as the new
home of the Corinthians football team; after the World
Cup it will be known as arena Corinthians.
accordingly, its World Cup capacity is comprised of
20,000 temporary seats that will be removed after
the games. The four-stand, rectangular stadium is
one of the more conventionally designed of the new
venues that have been built – two buildings on either
side of the pitch are linked by truss canopies that
oversail all four stands. The 6,500-tonne, 32,000m²
roof contains solar panels and is supported by 48
75m-long trusses. Unfortunately the stadium was the
scene of tragedy last year when a crane collapse
killed two workers and delayed completion until last
month. arena de São Paulo will host england’s second
group stage match against Uruguay on 19 June.
BUILDING MAGAZINE 06.06.2014
 40 / projects / World Cup stadiums

RENOVATED STADIUMS
Estádio Castelao

CITY: Fortaleza
COMPLETION: 1973
RENOVATION: 2013
CAPACITY: 64,846

Estádio Castelao has attracted rare praise from FIFA

after being the first Brazil World Cup venue to
complete and one of only a handful delivered on time
and within budget. Built in the early seventies, it had
already received extensive renovations, including an
upgraded roof and increased capacity, in the 2000s.
However, substantial additional improvements were
required when it was selected as a World Cup venue.
These included a larger replacement roof, the
demolition and reconstruction of its lower tier, a new
media centre and underground car park as well as a
general refurbishment of the stadium. The renovation
has also been accompanied by upgrades to the
surrounding public transport network that serves it.
FIFA has hailed the project as an exemplar for sporting
public works.

Estádio do Maracanã

CITY: Rio de Janeiro

COMPLETION: 1950
RENOVATION: 2013
CAPACITY: 76,804

Once the biggest stadium in the world,

the Maracanã allegedly hosted a
stupendous 210,000 people for a final
group stage game at the 1950 World
Cup. On that occasion, Uruguay beat
Brazil 2-1, so the host nation will be
hoping for friendlier fortunes in the likely
instance that they reach the final here
on 13 July. Maracanã has been the
country’s principal football venue since it
opened in 1950 and it invokes a spiritual
reverence among Brazilians similar to
that exerted by Wembley here.
Reconstruction works included
demolishing the stadium’s concrete roof
and replacing it with a Teflon-coated
fibreglass tensioned membrane. The
roof was also expanded to cover 95% of
spectators and the seating bowl’s
former two-tier configuration was
converted into a single tier. While the
Maracanã’s renovation endured its own
share of delays and disputes, it
reopened on schedule last year. When
the stadium hosts the opening and
closing ceremonies of the Rio Olympic
Games in 2016, it will be only one of six
worldwide to have hosted both a World
Cup Final and Olympic ceremonies.

06.06.2014 BUILDING MAGAZINE

 projects / World Cup stadiums / 4

Estádio Mineirao

CITY: Belo HoRizonTe

COMPLETION: 1965
RENOVATION: 2013
CAPACITY: 62,254

With its brutalist, finned concrete facade, estádio Mineirao is both

an engineering landmark and one of the most historic venues in
Brazilian football. it is also a listed national monument so both the
facade and roof were preserved during the £220m refurbishment
project that have seen it upgraded to a World Cup venue.
Arena da Baixada Modernisation features involved lowering the pitch by 3.4m, the
removal of an athletics track, additional pitch-side seating and
CITY: CURTiBa improved accessibility. Subsidence in the massive concrete
COMPLETION: 1914/1999 superstructure was also corrected using hydraulic jacks and steel
RENOVATION: 2014 cables. Hopefully estádio Mineirao will not be the last the england
CAPACITY: 41,456 team see of Brazil – they play Costa Rica here in their final group
stage game on 24 June.
arena da Baixada may be the smallest venue in the
2014 World Cup but its renovation has been beset by
monumental problems. The original stadium was one of
the oldest in South america; this was demolished and
rebuilt in the nineties. This latest refurbishment
involved improving facilities and increasing capacity.
The centrepiece of the project was to be the addition of
a retractable roof, despite this southern city being one
of the coolest in Brazil. However, a disastrous series of
labour disputes, court action and alleged building
control violations not only severely delayed completion
but also led to the retractable roof being scrapped. as
recently as January, FiFa threatened to drop the
stadium as a venue. However, now that it’s completed,
the football body has recently referred to the venue as
“top class”. arena da Baixada is home to the atletico
Paranaense football club.

Estádio Beira-Rio

CITY: PoRTo aleGRe

COMPLETION: 1969
RENOVATION: 2014
CAPACITY: 48,849

Brazil’s most southerly big city is home to the largest

stadium in the south of the country. like the Maracanã,
it is twinned with a smaller, adjacent sporting arena
that houses pools and tennis courts. The stadium’s
renovation included additional parking spaces and a
lower tier built closer to the pitch. But its most
significant feature was the reconstruction of its
integrated facades and roof. The stadium’s original

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BUILDING MAGAZINE 06.06.2014

LEGAL

Lindy Patterson The judgment in the case between MT Hojgaard and

E.On highlights why employers should not use the variation process
to deal with a breach of contract

PUTTING A VALUE
ON VARIATIONS

T
he decision by Mr Justice Stuart-Smith in
MT Hojgaard vs E.On on valuing variations
E.ON’S FIGURE FOR THE is an important reminder as to how to
OMISSION RESULTED IN A approach the exercise. It has just been upheld on
appeal. It deals with the valuing of variations
DEDUCTION OF €57M (£46M) where – as is increasingly common – an employer
FROM THE CONTRACT PRICE. omits a significant element of the works and
looks at whether the underlying reasons for that
MT HOJGAARD LOOKED AT THE omission are relevant in valuing it.
CONTRIBUTION THE OMITTED This case is timely. We are increasingly seeing
WORK MADE TO THE variation clauses being used to omit works to give
to others, particularly where it is a long-running
CONTRACT, WHICH LED TO A framework or PFI contract and there is a desire to
€12.9M (£10.4M) DEDUCTION obtain better prices mid-term.
The issues are:
■ Can a variation clause be used to omit works to
give to others?
■ Is the method of valuing an omission affected
by the reasons for such an omission?
In the MT Hojgaard case, the installation of
monopiles by MT Hojgaard for an offshore
windfarm was going slowly. The barge being used
to install the piles kept breaking down.
It was ultimately withdrawn from the
contract and a free issue barge supplied by E.On,
the employer, installed all but two of the 62 piles.
The introduction of the new barge was done by
three variation orders covering three periods
when the new barge was provided to “mitigate
delays to the works”.
The engineer did not consent to or instruct
Hojgaard to demobilise the original barge, but the
contractor eventually removed it from the works.
The dispute was over how to value these
variation orders, which resulted in an omission of
the provision of the original barge. The variation
clause was fairly standard.
A variation, which included an omission, would
be valued:
■ In accordance with the rates specified in the
schedule of rates
■ Where these rates were not applicable,
suitable rates would be established by the
engineer reflecting the level of pricing in the
schedule of rates
■ Where rates were not contained in the

Ally Mackenzie Brazil had seven years to prepare for the World Cup, but struggled to complete some work
associated with the event on time. What could have been learnt from London’s handling of the Olympics?

LESSONS FROM LONDON

On 30 October 2007 Brazil won the bid
to host the 2014 FIFA World Cup, giving
them seven years to prepare for this
prestigious and high profile sporting
event. Fast-forward to the beginning of
June 2014, less than two weeks before
the tournament is due to start, and there
are concerns that several stadiums
remain incomplete, including the stadium
set to stage the opening game, and that
protests over the costs of hosting the
tournament will spoil the party.
In most cases, construction of Brazil’s
World Cup stadiums has needed to start
from scratch in order to deliver the
exceptional standards required. Despite
this, no work actually began until the
summer of 2010, allowing less than four
years for the stadiums to be ready. The
commonly held view appears to be that
the organisers over-extended
themselves by offering to build too many
stadiums on top of renovating existing
facilities. Indeed, projects totaling some
$4bn (£2.9bn) are still yet to be finished.
Stadiums aside, promised
improvements to infrastructure,
necessary for both the smooth running
of the event and to leave a lasting
legacy, have also presented significant
obstacles. For instance, local
government officials in Porto Alegre had
to be cajoled into passing a bill creating
tax incentives for companies investing in
building temporary structures around its
stadium after organisers fell short on
funds to build housing for fans and
sponsors, or fulfil other FIFA
requirements, such as upgrading
telecommunications infrastructure
needed for the media.
Elsewhere, unforeseen problems,
including health and safety breaches,
have contributed to the deaths of nine
construction workers, with the threat of
strikes from builders’ unions, potential
regulatory fines and even further delays
as a consequence.
All of this has contributed to the
spiralling costs to prepare Brazil for the
World Cup, with the most recent
reported figures as high as $15bn
(£11bn), including infrastructure costs.
Public opinion in Brazil is at a low ebb,
with strikes coming from various unions,
including bus drivers and teachers, and

06.06.2014 BUILDING MAGAZINE

 legal / 43

omission. The judge rejected that. He concluded

schedule, the amount would be what was in all
the circumstances reasonable.
The contract value was around €100m – of this
about €26m related to the installation. MT
Hojgaard said the omission should be valued
with reference to the element of the original
contract price build-up allocated to the
installation of the foundations. E.On argued the
price should be adjusted with reference to how
long it would have taken the contractor to have
done the works if it had used the original barge.
E.On’s figure for the omission resulted in a
deduction of €57m (£46m) from the contract
price. MT Hojgaard’s adjustment looked at the
contribution the omitted work, ie the original
supply of the barge, made to the contract price,
which led to a deduction of €12.9m (£10.4m). It
was accepted that the provision of the barge fell
within the definition of “works” in this contract.
E.On argued that the reason behind the
variation orders (lack of progress by Hojgaard)
was relevant in determining the value of the
THIS CASE IS TIMELY AS WE
ARE SEEING VARIATION
CLAUSES BEING USED TO OMIT
WORKS TO GIVE TO OTHERS,
PARTICULARLY WHERE IT IS A
LONG-RUNNING FRAMEWORK
that E.On was attempting to obtain contractual
remedies for breach of contract through
adjustment of the contract price.
He considered that E.On had chosen this route
to omit part of the works although there were
other remedies open to it for delay, for example,
application of liquidated and ascertained
damages; a notice of default because of poor
progress; or leaving it to MT Hojgaard to provide
the alternative barge.
The judge accepted MT Hojgaard’s basis of
valuation, which was to deduct the component
of the original price that related to the provision
of the barge.
This was a situation where the employer
tried to use the variation process to deal with
a breach of contract situation. What about
where an employer omits work under
the variation clause and gives it to a third party?
It is generally accepted that most variation
clauses do not cover a situation where the
employer wishes to omit works to give to others.
Unless a contract spells out the entitlement of the
employer to do so, the variation clause will not
cover this. So omission in these circumstances is
considered to be a breach of contract (see Amec
vs Cadmus Investments).
Where work has been wrongfully omitted what
is the contractor’s loss? Generally, this is loss of
profit on the omitted work.
Wrongful omission of work may also be a
repudiatory breach, entitling the party in receipt
of the omission to treat the contract as at an end
and claim damages. So employers attempt to do
so at their peril.
Lindy Patterson QC is a partner and solicitor
advocate in the construction and energy team of
CMS Cameron Mckenna

all being linked to dissatisfaction about
the costs of hosting the tournament.
With the first kick of the ball looming,
the samba atmosphere starting to build
and football fans the world over packing
their sun cream and team shirts in
anticipation, what lessons can other
host nations of major sporting events,
take from Brazil’s experience?
While the UK may not be able to teach
Brazil about football, it delivered a great
performance in successfully delivering
the London Olympics 2012. The UK
population may have been sceptical at
first, and the games were not without
drama before the opening ceremony, but
ultimately the event was judged a huge
success and it left a lasting legacy and
positive feeling in the UK.
When London won the bid in 2005,
plans were already in place for the
construction of venues and the necessary
infrastructure, meaning work could begin
immediately and run over the course of a
seven year programme to accommodate
the scope of work required. Alongside
the planning for the games themselves,
the focus on the Olympic legacy helped
win over the public’s scepticism as to the
cost of hosting the games.
One area London also emphasised was
health and safety; a dedicated head of
health and safety was appointed and
construction went ahead without issue
in this respect. In fact, London became
the first Olympic Games in history to
record zero fatalities.
The result of all this was that over a
week before the games commenced all
the venues were open and ready for use.
Whilst the cost of the games exceeded
THE KEY THEME FOR the bid stage estimate, the final cost was
actually £528m under the original budget
FUTURE HOST (set in 2007), costing a total of £8.77bn.
NATIONS TO TAKE One year after the games, a BBC poll
found that two thirds of the British public
AWAY FROM BRAZIL’S believed it had been worth the expense.
EXPERIENCE OF THE It seems that the key themes for future
WORLD CUP IS THAT host nations to take away from Brazil’s
experience of the World Cup is that time
TIME IS SHORT is very much of the essence. Thorough
planning and risk management is key and
needs to be undertaken as early as the
bid stage and continue throughout the
project. This prevents unnecessary
delays, costs, legal disputes and, perhaps
most importantly of all, lead to positive
publicity at home and across the world.
Ally Mackenzie is a managing associate
at Addleshaw Goddard

BUILDING MAGAZINE 06.06.2014

44 | Countryside Properties | Sponsored feature
pickles
goes back
to the future
The communities
secretary used this
year’s Alan Cherry
debate to argue that
the way to increase
housing supply is
through a full-blown
return to off-site
manufacture. But
not everybody was
convinced, as Joey
Gardiner reports
‘W
e need you to do three things: Firstly,
to build. Secondly, we’d like you to
build. Thirdly, we’d like you to build.”
So said communities secretary Eric Pickles in his
opening address to this year’s Alan Cherry debate,
set up in memory of the late founder of housebuilder
Countryside. The debate was held on the week that
Bank of England governor Mark Carney hit the front
pages by calling for a doubling in housing output to keep
homes affordable. The same week house price figures
were published, showing rises of over 17% in the last
year in London, to an average of nearly £500,000.
Unsurprisingly, therefore, the subject of the debate
was raising the supply of housing in the real pinch points
of London and the South-east. As the final speaker,
Richard Cherry, deputy chairman of Countryside and
son of Alan, said, this new public profile could be used to
make a difference. “Our industry has probably got more
political support and attention than we’ve ever had. How
long it will last, who knows, certainly we want to enjoy it
while we can.”
While there was a degree of consensus around how to
approach increasing housing output, not all the
participants shared exactly the same vision of how it
could be achieved. There was certainly no doubting that
the most controversial suggestion was that laid out early
on by Pickles, namely the widespread expansion of the
06.06.2014 BUILDING MAGAZINE
You must free your mind
from the idea of boxes.
The modular system gives
a great deal of flexibility
eric pickles, communities secretary
use of modern methods of construction to speed up
delivery of new homes.
Pickles said he had recently seen the evidence of the
benefits of the approach on the 51-home New Road
scheme in Rainham, Essex, which is being built at the
rate of one a day to Passivhaus standards, saving future
residents up to £890 a year in energy bills.
Pickles said: “We’re making progress. The number of
people we’re getting on to the housing ladder is at an
all-time five-year high.
“But there’s something missing from all this good work,
it’s a sophisticated and modern answer to all our housing
needs. That is, off-site construction. Off-site construction
isn’t just fast, but when combined with new energy
saving methods it can be a real money saver, too.”
He said the government would promote new
technologies such as cross-laminated timber, and sought
to head off concerns over the perceived inflexibility of
design of prefabricated homes. “The things we were
looking at five years ago are a million miles away from
what we’re at now,” he said. “They were miserable,
mean and horrible little dwellings, from which B&Q
made a fortune because everybody would go and
retrofit various equipment. You must free your mind
from the idea of boxes. The modular system gives a
great deal of flexibility.”
Nevertheless, Pickles’ exhortations over off-site
manufacture were challenged by other speakers, in part
because the new technologies were seen as unlikely to
raise output levels that are driven more by economic
factors and sales rates than by construction timescales.
Pat Hayes, executive director of housing and
regeneration at the London borough of Ealing, said:
“There are things you can do off-site, it does help
reduce costs and speed up build. But our housing
dilemma is not about delays on build delivery, it’s about
delay on site assembly and getting stuff rolling
through.”
Brendan Sarsfield, chief executive of housing
association Family Mosaic, said the volatility of the
housing market made large-scale investments in
housing factories difficult to justify: “In the UK we have
a boom and bust – Barratt had its own factory last time
we had a boom, then when the slump comes it doesn’t
get the orders.”
He also raised the spectre of past experiments in
prefabricated build methods on social housing estates,
which had been seen to contribute to social problems
and stigmatisation. “Historically governments have used
the public sector and housing associations to be the
cutting edge, and that’s why we want to demolish the
estates he’s talking about, because they’re not

Christine Whitehead, professor of housing, LSE
market-led products.”
Christine Whitehead, professor of housing at the
London School of Economics and Political Science,
echoed this view. “I’ve done this exercise in off-site five
times in my adult life. It’s not a new phenomenon. We
have to be certain that it’s going to be better quality,
and the management which is going to occur is all going
to be in place. The evidence is we cannot do that.”
Audience member Ben Derbyshire, managing
director of architect HTA Design, said: “I was fairly
astonished that the secretary of state’s reaction to the
problem being debated today was to talk about off-site
manufacture. I wonder what is going on at CLG [the
communities department].”
The reaction was not wholly negative. Countryside’s
Richard Cherry said off-site manufacture had some
benefits, particularly on schemes with repetitive
design. However, even he said widespread use could
cut against the desire to improve housing design. “I
think there are big challenges with design, particularly
where bespoke design is required for the scheme. So
it’s an opportunity, but perhaps on a limited basis.”
However, panellists did have a range of other ideas to
our housing dilemma
is not about delays on
build delivery, it’s about
delay on site assembly
and getting stuff
rolling through
Pat hayes, london borough of ealing
Pat Hayes, executive director of housing and regeneration,
London Borough of Ealing
Richard Cherry, deputy chairman, Countryside
tackle the shortage of supply, currently running at half
the level required. Suggestions included those by
Cherry himself, who said landowners could retain equity
stakes in projects to aid sales, and said Labour’s
proposed “use it or lose it” policy designed to prevent
land-banking be extended to the public sector.
But the biggest opportunity he saw, also mentioned by
Pickles at the start of the day, was for estate
redevelopment. “Local authorities own circa 500,000
homes across London with tens of thousands more
across the South-east. A considerable proportion of this
is on estates that have redevelopment potential. We’re
very excited by the potential that the redevelopment of
these housing estates gives the industry.”
A number of panellists mentioned the potential of the
private rented sector, driven by a surge of investment by
financial institutions, to generate greater housebuilding
activity. Andrew Brentnall, director of residential capital
markets at Savills, said: “By targeting the private rented
market, you’re effectively encouraging another way for
housebuilders and developers to sell into the market
[meaning] they can speed up the delivery of their
schemes by selling in to a new buyer.”
The Greater London Authority’s (GLA’s) executive
director of land and investment, David Lunts, brought 10
separate ideas of his own – including ways to allow
councils to build more through off-balance sheet housing
companies, and the creation of a public database of all
government-owned land in the capital. But he admitted
that the GLA didn’t have all the answers: “Arguably
housing is now the single greatest unresolved policy
dilemma this country faces.”
By the end of conference, resolving that dilemma had,
hopefully, got that little bit closer.
Sponsored feature | Countryside Properties | 45
Andrew Brentnall, director residential capital markets, Savills
From left: Ian Sutcliffe, executive chairman, Countryside; Richard
Cherry; winner Jonathan Speed; Graham Cherry, chief executive,
Countryside; Fay Cherry, wife of the late Alan Cherry
Alan cherry
placemaking award
This year’s winner of the Alan Cherry Award for
Placemaking was Jonathan Speed, the former
director of Barking Riverside for the Greater
London Authority.
The placemaking award was set up in 2011 to
recognise the contribution that leading figures in
the public sector make to the physical quality of
the communities they work in. Speed (pictured
above, centre), the third recipient of the award,
has made a huge impact on building a new place
in a run-down part of east London, virtually from
scratch.
He has worked within housing and regeneration
for over 15 years. On his secondment from the
GLA he transformed Barking Riverside from being
a scheme stalled due to a multitude of problems,
to being winner of a 2013 Housing Design Award
and named Development of the Year at the 2013
British Homes Awards.
He is also a founding director of the Barking
Riverside Community Interest Company, set up to
hold and manage the new development in the
interests of the community ensuring best use of
all the facilities and assets in the long term.
Countryside deputy chairman Richard Cherry
said of his work at Barking Riverside: “The
development has the community and place
making at its heart with the social infrastructure
being developed alongside the homes.”
BUILDING MAGAZINE 06.06.2014
 ■ Residential ■ Non-residential ■ Civil engineering

E
75
La
E c o n o mi c s 60
M
analysis / facts / forecast Overall indicator

45

64
30
64

Tracker April 2014

58
15
58

0 Leading activity indicator 52

The construction activity index rose for the second time in three months, while52 civil engineering reached

Employment

Employment

Employment
Tenders

Tenders

Tenders
Activity

Activity

Activity
Orders

Orders

Orders
Leading activity indicator

its lowest level since May last year. Experian Economics reports 46
46

40
J A S O N D J F M A M J J
40
13 14
J A S O N D J F M A M J J
Labour costs/ 13 14 100

01 / State of play Material costs

02 / leading construction activity indicator

The construction activity index continues to Leading activity indicator 58 Employment 75

support the conventional wisdom of a period of 58
sustained demand-led growth in the industry, as it 64
rose to 61 points, for the second time in three 51

months. The index has managed to stay above the 51

58
no-change mark in each month since August 2012. 50
Employment 44
Both the residential and non-residential sectors
Employment 44
were up, by five points to 62 and fourLeadingpoints to 61
activity indicator 52
respectively. On the contrary, civil engineering fell 37
five points to 50, its lowest level since May last year. 37
In April the orders index dropped three points 46 25
30
to reach 62, although it stayed 10 points above its M J J A S O N D J F M A
13
30 14
value for the previous year. In fact, it has 40
M J J A S O N D J F M A
J A S O N D J F M A M J J 13 14
remained in positive territory 13 successive
13 14
months, buoying reports of sustained demand Tender prices
70.0 0
within certain facets of the construction industry. CFR’s Leading Construction Indicator is Residential and Civ
70.0 non-residential
The percentage of respondents indicating that set to fall in May, albeit marginally. We
they were experiencing no constraints on activity anticipate continued positivity over the 62.5 < 0% 0%-2.5%
decreased marginally to 34% in April. Meanwhile, coming months, at a slightly slower clip, 62.5 5.1%-7.5%
58
the proportion indicating that bad weather was as the prolonged bull-period begins to
impeding activity remained elevated, now totalling taper down somewhat. Tender prices
55.0
7%. Those who indicated insufficient demand 51The indicator uses a base level of 50: Tender prices
55.0
restricted activity increased to 40%. Labour an index above that level indicates
47.5
Work in Hand
shortages continued to be of minimal concern, as an increase in activity, below that level
Employment 44 47.5
only 5% felt it was a significant factor. Material/ a decrease. 100
equipment shortages became more of a worry as 40.0
M J J A S O N D J F M A
4% of respondents felt it was affecting their 37■ Residential ■ Non-residential ■ Civil engineering 40.0
13 14
M J J A S O N D J F M A
activity levels, up from 1% in the previous month. 13 14
The proportion indicating that financial concerns 75
30 75
were a significant factor decreased to 10%, the M J J A S O N D J F M A
60 13
14
lowest level for nearly four years.
Overall indicator
The employment prospects index was up on a
month-by-month basis, with a two point increase 45
to reach 50. The index has been approaching the 70.0
50
50-and-above mark fairly frequently within the last 30
eight months, in stark contrast to the persistent
62.5
15
weakness observed from mid-2008 onwards.
The tender prices index rose by three points in
0
April to reach 64. Indicating that firms are 55.0 25
Employment

Employment

Employment

Tender prices
Tenders

Tenders

Tenders
Activity

Activity

Activity
Orders

Orders

Orders

expecting the prices they charge to increase over

the coming three months.
47.5

0
40.0 Residential Non-residentia
M J J A S O N D J F M A Labour costs/ 100
This an extract from the monthly Focus survey of construction activity
13
The full
14survey results and further information on Experian Economics’ 0-3 months 3-6 months
undertaken by Experian Economics on behalf of the European commission as forecasts and servicesMaterial costs
can be obtained by calling 0207-746 8217 or logging on
part of its suite of harmonised EU business surveys. to www.experian.co.uk/economics
75

06.06.2014 BUILDING MAGAZINE 64

58
 abour costs/ 100
economics / tracker / 47
Material costs

75

50

03 / labour costs 04 / regional perspectives

25

The percentage of building firms reporting falling 46 Scotland

labour costs decreased to 2%. Approximately 32%
of respondents indicated that they had experienced
annual labour cost inflation of less than 2.5%, up
47 Northern Ireland
0
21% from three months Residential
ago. The percentage
and ofengineering
Civil
non-residential
respondents indicating costs had risen between
59 North-east
2.6% and 5% decreased< to 0%37%,0%-2.5%
down 30% from 2.6%-5%
three months ago. Meanwhile, the5.1%-7.5 % of >7.6%
percentage
Employment
Tenders
Orders

respondents indicating that their wage bill had risen 54 North-west

by between 5.1% and 7.5% increased to 12%, while
the share of firms reporting labour cost inflation over
Work7.5%
in Hand
increased from 0% to 17%. 78 Yorkshire and
Humberside
100

ts/ 100
35 Wales
sts
75
69 East Midlands
75

53 West Midlands
50

58 East Anglia
50
ntial and Civil engineering
sidential 62 South-east
25
0%-2.5% 2.6%-5%
5.1%-7.5% >7.6%

25
74 South-west

0
Residential Non-residential Civil Engineering

0-3 months 3-6 months >6 months

Experian’s regional composite indices incorporate
0
Residential and Civil engineering current activity levels, the state of order books and
non-residential the number of tender enquiries received by
contractors to provide a measure of the relative
< 0% 0%-2.5% 2.6%-5%
strength of each regional industry.
5.1%-7.5% >7.6%
In April, six of the 11 regions and devolved nations
saw their indices improve. The East Midlands saw the
largest increase with a six point upswing to 69. The
South-east experienced a three point uptick to take
Hand its index to 62. Despite Scotland’s index climbing
four points, it remains in negative territory for the
100 fifth consecutive month. Both the West Midlands and
North-west saw their indices rise by two points to
reach 53 and 54 respectively. While South-west’s
index advanced further, growing by one point to
reach 74; the highest index on record for the region.
East Anglia experienced the largest downturn of
five points, although it remained in positive territory
at 58, while the North-east posted a decline of four
points to 59. Despite Yorkshire and Humberside
recording a two point fall in its index, it remains in a
strong position (78). Falls were also seen in Wales
and Northern Ireland, as their indices both fell by one
point to reach 35 and 47 respectively.
The whole UK index, which includes firms in five or
more regions, saw its index decline two points to 61.

al Non-residential Civil Engineering

75
hs 3-6 months The>6
survey
monthsis conducted monthly among 800 firms throughout the UK and the published in this extract, all of the monthly topics are available by sector, region
analysis is broken down by size of firm, sector of the industry and region. The and size of firm. In addition, quarterly questions seek information on materials
results are weighted to reflect the size of respondents. As well as the results costs, labour costs and work-in-hand.

50 BUILDING MAGAZINE 06.06.2014

 CPD / 49

CPD 14
The latest in our CPD series examines the data-sharing requirements of
BIM: COLLABORATION AND THE
COMMON DATA ENVIRONMENT

BIM projects, and the various online tools that can help to meet them.
This module is sponsored by 4Projects by Viewpoint

INTRODUCTION 4Projects by Viewpoint was

Building Information Modelling (BIM) is set to used as a collaboration tool on
revolutionise the delivery of construction projects. the Olympic stadium, linking
It will enable the industry and its clients to move up more than 60,000 project
from inefficient, paper-based processes within documents and more than 100
fragmented project teams towards the seamless organisations
flow of structured data between collaborators who
are incentivised to deliver whole-life value.
The technology to achieve this, as well as the
associated structures and processes, is still in
development. But with the UK government’s 2016
implementation deadline fast approaching, online
platforms are likely to play an important role in
successful BIM collaboration because they allow
data from many difference programs to be shared
across different organisations, and because they
can be adopted and scaled up relatively easily and
cost-effectively.
This CPD will focus on the data-sharing
requirements of BIM projects, on what compliance
with the 2016 deadline means for companies
throughout the supply chain, and on how online
collaboration tools can support BIM.
The government strategy paper published in
March 2011 defined four maturity levels of BIM,
based not only on the level of technology used to
design a building, but the level of collaboration
within the process. These are:
■ Level 0 Unmanaged 2D CAD, with data
exchanged in paper or electronic paper form.
■ Level 1 Managed CAD in 2D or 3D format, with
data shared via a collaborative tool to provide
a common data environment (CDE) with a use 4D construction sequencing, 5D cost, and 6D Committee, an advisory group responsible for
standardised approach to data structure and project lifecycle management information. disseminating best practice throughout the
format. No integration of commercial data. By 2016, all centrally procured public-sector industry, stresses that BIM is about “creating a
■ Level 2 Managed 3D environment where each projects must be delivered using level 2 BIM. shared knowledge resource”. BIM offers a means
discipline creates its own models, and all project for different disciplines to work together to develop
information is shared electronically in a CDE. WHAT IS A COMMON DATA a single, integrated model, rather than producing
Commercial data managed by enterprise resource ENVIRONMENT? designs and associated information individually.
planning software and integrated into the BIM by A CDE is defined in British Standard 1192:2007 The benefits of a CDE include:
a proprietary interface or bespoke software. May as “a single-source of information for any given ■ Reducing or eliminating the checking, revision
use 4D construction sequencing and/or 5D cost project, used to collect, manage and disseminate and reissues cycle
information. all relevant approved project documents for ■ Project team members can extract selections of
■ Level 3 Fully integrated, collaborative process multidisciplinary teams in a managed process”. the latest approved data from the shared area of
with models shared between the project team on a It may use a project server, extranet, a file-based the CDE
web-enabled BIM hub, compliant with the Industry retrieval system or other suitable toolset. ■ Reduced need for coordination checks because
Foundation Classes (IFC) open data standard. Will The UK Construction Project Information coordination is a by-product of the detailed design

BUILDING MAGAZINE 06.06.2014

 50 / CPD
production process
■ Information can subsequently be used
for construction planning, estimating, cost
planning, facilities management and many other
downstream activities
■ Shared information reduces the time and cost in
producing coordinated information.
In effect, the whole asset can be constructed
virtually, with everyone working from the same
documents. For now, however, this remains a
distant prospect for most. It will take time for BIM
knowledge and expertise to extend throughout the
supply chain, and for all disciplines to deliver data
in a BIM-compliant way.
It is a common misconception that “doing BIM”
involves using a particular software product. The
industry already uses a diverse range of
proprietary software to create, access, view,
manipulate and interrogate BIM data, to exchange
data between applications, to run analyses, to
display information on various devices, and so on.
The reality is that most professionals will need to
use multiple programs in BIM-related work.
Extrapolated across a typical multidisciplinary
project team, the BIM software ecosystem may
Program management
software, such as 4Projects
by Viewpoint, provides a
central point of exchange for
the various programs used
by different members of the
project team
06.06.2014 BUILDING MAGAZINE
involve dozens of programs, not all of which will be
able to exchange data with each other.
In practical terms, working in a CDE is likely to
involve using a collaboration platform, such as
4Projects or 4BIM by Viewpoint, as a data
management server to share information. This
would be consulted periodically to reconcile
differences between multiple models, with 4D
construction sequencing and 5D cost information
held in separate but linked repositories.
Proficiency in software use and data portability
are only two aspects of working in a CDE. Industry
professionals will also need to develop working
practices within their companies, and then
between their companies and other members of
the project team to manage their inputs to BIM. As
2016 draws nearer, some of these procedures and
processes are already taking shape. Early adopters
have begun to modify their internal structures and
methodologies to accommodate BIM, and their
experiences have informed the work of the
government’s BIM Task Group and associated
pan-industry process recommendations.
For example, in February 2013 the Construction
Industry Council (CIC) published its BIM Protocol,
and the British Standards Institution (BSI)
published the publically available specification PAS
1192-2, for how information should be managed for
the delivery phase of BIM projects. The latter, in
particular, provides guidance on how the CDE
might work. PAS 1192-2 covers the project lifecycle
from the statement of need (new projects) or point
of assessment (existing projects) through to the
verification of the project information model
against the as-constructed asset and the delivery
of the final asset information model. This model
consists of graphical information, non-graphical
information and documentation. In March 2014,
BSI also published a separate specification for
information management during the operational
phase of a building, PAS 1192-3.
However, many structural and process issues
remain, including model ownership, intellectual
property, commercial confidentiality, insurance
models, forms of contract and early engagement
of supply chain members.
WHAT DOES LEVEL 2 COMPLIANCE MEAN?
Compared with traditional project delivery, all
project team members, including the client,

Sir Robert McAlpine Ltd
will need to adapt their processes and inputs
throughout the planning, design, construction,
commissioning, handover and future operation and
maintenance of the built asset.
For example, for clients or owner-operators,
using BIM successfully is likely to involve:
■ establishing a definition of the employer’s
information requirements (EIR), that is, the
information that will ultimately be required from a
project information model
■ commissioning a CDE to manage information
on both capital and, importantly, operational
expenditure
■ early involvement of facilities managers and end-
users in project design
■ defining how models will be used, viewed and
updated regularly by facilities managers
■ reusing BIM data to add value – for example,
creating interactive visitor guides
■ augmenting the building information model by
capturing building performance data.
For contractors delivering a BIM-enabled project,
achieving level 2 compliance is likely to involve:
■ implementing a BIM execution plan, including
file naming and numbering conventions, project
processes and agreed standard file formats
■ enforcing use of the project-wide CDE through
documented processes and standards, including
use of the CDE to populate, validate and export
data in the Construction Operations Building
Information Exchange (COBie) format
■ PAS1192-2-style workflows for sharing documents
■ providing model viewing, clash detection and
project planning software to all relevant team
members
■ supporting the downstream supply chain to
incorporate BIM objects of their products into
models.
These lists are not exhaustive. Their purpose is to
give examples of how different parties involved in a
project will need to think in a more integrated way
about their information requirements. BIM may
appear more complex compared with traditional 2D
approaches, but it will result in the efficient
production of structured data that can then be
reused and exploited to add greater value than
could ever be achieved before with conventional
information.
ONLINE COLLABORATION TOOLS AND BIM
BIM technologies and processes have not emerged
in isolation. Since the 1990s, the UK construction
industry has been evolving more collaborative
approaches to project delivery itself. In particular,
the influential government-commissioned
reports by Sir Michael Latham and Sir John Egan
in 1994 and 1998 respectively made a number of
recommendations to drive the industry to a more
efficient, less adversarial form of contracting.
Recent experience has shown that while
CPD / 51
More than 120 organisations
and 450 individuals used
the 4Projects by Viewpoint
collaboration tool on Sir Robert
McAlpine’s Emirates stadium
project in north London
technology can be both an enabler and a barrier to
collaborative working, it is only a minor element
compared with achieving the necessary change in
people and processes. Simply adopting a new
technology is not enough to promote collaborative
working – evidence shows that it is more important
to adapt procurement processes and contracts in
order to help team members work together
to maximise value for the ultimate owner of the
built asset.
The expansion of the internet since the late
1990s has also led to an important change in the
way that companies buy and use software. Rather
than buying a fixed number of copies of a program
which are installed on individual computers and
managed by in-house IT staff, companies can
effectively rent the software they use on a monthly
or annual basis and outsource the management
and other overheads to the software provider. This
is delivered via the internet to wherever it is
needed, with the company’s data stored securely in
remote servers. This model is known as software-
as-a-service (SaaS), and it is one aspect of “cloud
computing”, where data and programs reside in a
network of remote servers rather than a fixed
location.
The benefits of SaaS include:
■ It is relatively easy and cost-effective to roll out
across a diverse supply chain
■ There is no limit on the number of users
BUILDING MAGAZINE 06.06.2014
 52 / CPD

■ It can typically be accessed through a range of

internet browsers or mobile devices
■ There is no need for IT departments to manage
or maintain the software
■ No plugins, additional software or firewall
configuration are required
■ It can be used by any member of the team,
anywhere.
When online project collaboration tools such as
4Projects by Viewpoint first emerged, there was
considerable inertia to overcome from the
construction industry. Individuals and
organisations were often reluctant to move away
from traditional, largely paper-based forms of
communication. They were familiar with in-house
applications and hesitant about outsourcing and
about entrusting documents, drawings and data to
software providers. They questioned the security
and reliability of browser-based technologies, and
the ownership and legal admissibility of
electronically stored information.
Since the early 2000s, however, SaaS has
become increasingly accepted. Vendors have
proved robust and financially viable, and the
technologies could, as promised, manage data
produced by numerous different software tools.
Project platforms have expanded beyond their
On the Darwin Centre 2
original role of storing and delivering project
project at the Natural History
documentation to support complex work
Museum in London, the
processes, integrate with back-office programs, and
4Projects by Viewpoint
deliver information via mobile devices, among
collaboration software was
many other advances. These systems have now
used by over 700 team
been identified as suitable platforms to manage the
members
CDE required by BIM.

QUESTIONS

1. At which level of BIM implementation is a
common data environment first used?
a. Level 0
b. Level 1
c. Level 2
d. Level 3
2. Which statement best describes how a
common data environment is likely to work in
practice?
a. Information is distributed by each member of
the project team in electronic paper form
b. At the start of the project, a single software
vendor is specified so that all team members work
from compatible programs
c. Each design discipline uses their preferred
software but this must be capable of sharing data
directly with every other program used on the
project
d. Each team member has access to a shared
data management server and inputs and extracts
project data from their chosen software tools
3. Which of these is a specification for how
information should be managed during the
operational phase of construction projects?
a. BS 1192:2007
b. PAS 1192-2
c. PAS 1192-3
d. CIC BIM Protocol 2013
4. Which of these is not handed over to the
client at the end of a BIM construction project?
a. Project information model
b. Graphical information
c. Non-graphical information
d. Documentation
5. Which of the following is a likely role of
contractors on level 2 BIM projects?
a. Establishing a definition of the employer’s
information requirements
b. Commissioning a common data environment
to manage information on capital and operational
expenditure
c. Enforcing use of the project-wide common data
environment through documented processes and
standards
d. Defining how information models will be used
by facilities managers
To complete this CPD, read the module
and then answer the questions online
at www.building.co.uk/cpd
Closing date: 18 July 2014
CPD credits: 1 hour

06.06.2014 BUILDING MAGAZINE

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 Global job vacancies
Rachael Murray and Ryan Williams Tel 020 7560 4096 Fax 0151 353 3501
log on to Building4jobs.com for the latest vacancies
Building is the industry’s market leading publication, carrying more pages of recruitment advertising than any other building/construction title

6HQLRU%XLOGLQJ6XUYH\RU
6ROLKXOO:HVW0LGODQGV $WWUDFWLYHVDODU\DQGEHQH¿WVSDFNDJH

Prologis, Inc., is the leading owner, operator and developer of industrial
real estate, focused on global and regional markets across the Americas,
Europe and Asia. As of March 31, 2014, Prologis owned or had investments
in, on a wholly owned basis or through co-investment ventures, properties
and development projects expected to total approximately 574 million
square feet (53.3 million square meters) in 21 countries. The company
leases modern distribution facilities to more than 4,700 customers,
including manufacturers, retailers, transportation companies, third-party
logistics providers and other enterprises.
Prologis is the leading provider of industrial real estate in the UK with
approximately 20 million square feet of logistics and distribution space.
Designed to the highest environmental standards, many of the company’s
UK developments are among the most innovative and sustainable in our
entire portfolio. Prologis also offers customers a land bank of 622 acres
(252 hectares) in key UK markets for development.
The continued growth of Prologis’ UK estate has created this new role
to provide customers with an excellent service during end of lease or
renewal of lease periods. The candidate will be responsible for liaising
with customers regarding lease obligations; liaising with our property and
asset managers on budgeting and overall scope of ‘make ready’ works;
QHJRWLDWLQJWKHVSHFL¿FDWLRQDQGFRVWRIZRUNVDQGPDQDJLQJFRQVXOWDQWV
and contractors to ensure successful delivery of works.
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 $PLQLPXPRI¿YH\HDUVSRVWTXDOL¿FDWLRQH[SHULHQFH
 ([SHULHQFHRI
• Carrying out detailed property surveys, condition schedules,
preparing written reports including budget cost plans, and
presenting them to senior audiences.
• Negotiating want or repair/dilapidations issues with tenants at the
end of (and during) lease periods.
• Reviewing and advising on requests by tenants for alterations
 6HOHFWLQJDSSRLQWLQJFRRUGLQDWLQJDQGPDQDJLQJH[WHUQDO
consultants and contactors and supervising make ready and
refurbishment works.
• A knowledge of dilapidations protocol and pursuing dilapidations
claims.
• An understanding of JCT contract terms and managing/administrating
JCT contracts.
• Excellent communication and presentation skills.
This role will be based within Prologis’ Project Management team working
closely with Prologis’ Property Management and Asset Management
teams in addition to liaising with customers, consultants and contractors.
It provides a great deal of variety and involvement across the business.
7KHSRVLWLRQLVEDVHGLQ6ROLKXOOZLWKDUHTXLUHPHQWWRWUDYHODVDSSURSULDWH

To apply, please send a full CV to our retained consultants Cheetham Hall quoting reference B/140050SBS at
prologis@cheethamhall.com
Closing date for applications: Friday 20th June 2014.
All direct and third party applications will be forwarded to Cheetham Hall.

&KHHWKDP+DOO3HSSHU+RXVH0DUNHW6WUHHW1DQWZLFK&KHVKLUH&:'47HOHSKRQHZZZFKHHWKDPKDOOFRP

Looking to recruit
quality candidates
in your sector?
Building is the leading brand in the construction
market, reaching a captive audience, spanning
the entire construction spectrum making it the
ideal place to recruit quality candidates.
06.06.2014 BUILDING MAGAZINE

Find your ideal candidate

Call us on: 020 7560 4249

HCC INTERNATIONAL INSURANCE COMPANY PLC
Claims Manager (Quantity Surveyor)
HCC International is a specialist insurance company. We are
looking for a construction professional to take on the role of
Claims Manager with responsibility for Credit and Surety claims
in our offices based in Rearsby, Leicestershire.
The main purpose of the role is to manage a team of surveyors
and technicians and assist with the investigation and settlement
of claims (mainly arising from insolvency) made under
performance bonds and credit insurance policies, relating to
construction and other industries. You will also be responsible
for producing management information and reporting.
The ideal candidate will have a degree in quantity surveying
(or equivalent) and proven experience of operating at the level
of a Senior Quantity Surveyor and leading a team. You must be
contractually and commercially aware with good all round
surveying experience.
In return, we offer an excellent working environment and
attractive salary and benefits package. This is an ideal
opportunity for an individual who is looking for a new challenge
in a specialist area.
To apply please call Jane Thorpe on 01664 423268 or e-mail
jthorpe@hccint.com for an application pack. If you would
like to speak to someone about the position please call
Jason Watts on 01664 424896.
Closing date 30th June 2014
No agencies please.
BUSINESS DEVELOPMENT OPPORTUNITIES
United House is one of the leading specialist residential construction
companies in London and the South East, offering an unrivalled
combination of social housing new build and refurbishment,
regeneration, private finance investment, and private residential
development. We have successfully brought to market some of the
most exciting, successful and award winning developments in the
country. We are looking for outstanding people to help us grow.
Due to our growing development and construction businesses we
are expanding our business development team to drive growth in
our construction arm, securing new business across our new build
and refurbishment portfolio. We require a Business Development
Director, a Business Development Manager and a Proposals Manager.
In return we offer a competitive package, structured career
progression and a great working environment.
For further information, please visit www.unitedhouse.net/careers
or e-mail your CV with a covering letter to jobs@unitedhouse.net.
Alternatively for an informal chat about any of these opportunities
call our Recruitment Manager, Kerry Booth on 01322 616527.
All communication will be treated in the strictest confidence.
No agencies or executive search companies.
United House is committed to equality and diversity and welcomes
applicants from all sections of the community.
www.unitedhouse.net
Delivery Lead Officer 55
(Surveying and Project Management)
£36,676–£42,032 pa | Permanent, full time
Reference: 1/JB/14/34R
Shire Hall, Gloucester
Leading and supporting a team of Surveyors and Project
Managers with experience in the delivery arm of our Asset
Management Property Services (AMPS) function, you’ll be
at the forefront of a growing area of the business, helping to
Global job vacancies
generate vital income for the Council.
You’ll have an HNC/HND in a building-related subject
and be a corporate member of RICS, CIOB or RIBA, or
www.gloucestershire.gov.uk
equivalent. An excellent and commercially-aware project
manager, it’s also important that you’ve an up-to-date
knowledge and understanding of modern and innovative
procurement methods, surveying and building projects.
Enthusiastic and influential, you’re a true professional
and are passionate about providing the best possible
customer service.
For further information about this post and how to
apply please log on to www.gloucestershire.gov.uk/jobs
quoting reference 1/JB/14/34R or contact Rob Barnes
on 01452 328804. Closing date: 12th June 2014.
Interview date: w/c 30th June 2014.
We welcome applications from all sections of the community
Matthew Homes Ltd
SENIOR PROJECTS MANAGER required to join private
developer. The successful candidate will be professionally
qualified, have practical site experience at all levels, and
have the ability to motivate and drive the construction
team. A thorough and up to date knowledge of residential
developments, contracts, construction methods, health and
safety and CDM Management.
The candidate will take responsibility from the Land Team on
handover of sites, including legal obligations, S106, planning
conditions including discharge of obligations. The position
involves working with consultants and service companies and
dealing with section agreements. An element of negotiation
and dealing with housing providers will be invaluable.
In addition to a good salary, this position includes defined
06.06.2014 BUILDING MAGAZINE
benefits, pension scheme and excellent training and
development opportunities. The vacancy has become
available due to retirement and offers the successful
candidate stability and great prospects.
Please forward your CV to: Mr P M Jones, Managing
Director, Matthew Homes Ltd, Matthew House, 45-47
High Street, Potters Bar, Herts. EN6 5AW
 56
Looking to recruit quality
candidates in your sector?
Advertise your courses to a captive audience Key facts
Building will run a careers feature in June,
dedicated to courses. This will present an ideal 34,944
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Our readers regard Building as a reliable source
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Global job vacancies

demonstrated by the 000s who complete our

CPD modules each year. Last year our modules of Building readers
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Building is the UK’s best read and most Average number of above across architects,
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Book an advert to align your course with the
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Kindest regards,
The Building Team
Contact out sales team>>> Recruit the best for your company
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 58 / back page

Last look
Don’t forget to look online this week at www.building.co.uk for our World Cup specials,
updated white papers, BIM webinar and CPD archives and much more:

GET INVOLVED IN Most read

THE WORLD CUP What you read on www.building.co.uk last week
ON BUILDING.CO.UK
THERE ARE TWO
1 CPD 11: Specifying rooflights

WORLD CUP-RELATED, 2 CPD 10: Practical approaches to complying with Part L1A 2013
ONLINE COMPETITIONS ON
BUILDING.CO.UK THIS WEEK: 3 CPD 12: Reducing nox air pollution

PREDICT THE WORLD CUP WINNER 4 Builders deride 200,000 homes target as ‘unachievable’

There’s a chance to win two tickets to watch

England vs Slovenia at Wembley as part of the
European Championship Qualifiers on
15 November. All you have to do is predict which
football teams in this year’s World Cup will battle through to be finalists on
13 July and ultimately who will be the victor of that final match. But hurry, we
need all entries before the first match kicks off between Brazil and Croatia at
9pm, 12 June. Full terms and conditions are on the website. To enter go to
www.building.co.uk/worldcupcomp
5 Manchester University appoints architects to £200m campus
Sketch of the week
This week’s #buildingdoodle sketch is by Barrie Marshall, found partner at Denton
Corker Marshall. The sketch is of the new Stonehenge Visitors Centre Barrie’s
sketch is to be part of this year’s summer show at the Royal Academy. To submit
your sketches for publication please email building@ubm.com or post via Twitter
using the hashtag #buildingdoodle

WHERE’S WORLD CUP HANSOM?

And for a chance to win £50 of John Lewis vouchers, try to find
this week’s sporty Hansom on our website. Just email hansom@
ubm.com with his location. All correct answers received by
midnight 12 June will go into a prize draw.

This week in 2006

Shouldn’t you be at work?

Ahead of the 2006 World Cup kicking off in Germany, Building ran a piece in the
9 June 2006 issue that pried into the nature of the sector’s office celebrations
for the month of football ahead. Going undercover (we presume in St George’s
face paint, and a red and white afro wig), George Hay, then news editor,
uncovered such truths as Reid Architecture having a “giant inflatable mascot of
an England fan” in the office while placing a mammoth order at their local West
Indian restaurant for England’s match against Trinidad and Tobago. Meanwhile,
Scott Brownrigg decided to hire in a “special beer keg” for use while broadcasting
the England matches in their Covent Garden office. Perhaps most impressive
was Fitzpatrick Contractors, who hired out venues especially for the games,
including Fitzrovia Hotel and Langham Hotel. George wrote: “The firm has
already secured the attendance of 60 guests per match, as well as a generously
proportioned bar and buffet. But will there be a man-sized England mascot? ‘No,’
says a spokesperson.” The celebrations were, perhaps somewhat inevitably, cut
short when England crashed out to Portugal in the quarter-finals of the
tournament on penalties. It’s unknown what became of Reid’s inflatable mascot.
To read the full article from 9 June 2006, go to www.building.co.uk/archive

06.06.2014 BUILDING MAGAZINE

CRASH –
your industry charity.
Be proud of it. CRASH is a practical charity that
focuses on improving buildings used
by homeless people. We do this in
three ways: providing professional
expertise, materials and cash grants.

Be part of it. We are only able to continue this vital

work through the generosity of our
Patron companies. These bespoke
partnerships are limited so if your
company is interested in making a
real difference to homeless people’s
lives, contact Francesca Roberts on:
0208 742 0717

Presented by the Prime Minister

“The innovative approach CRASH

crash.org.uk
Registered Charity No: 1054107
takes harnesses the world-
class skills and products of our
construction industry to tackle
the issue of homelessness. This
Big Society Award recognises
the remarkable achievements of
everyone involved.”
Prime Minister David Cameron
01473 820850 celotex.co.uk

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