Industry partners working with the Combined Heat & Power Association (CHPA) and Chartered Institute of Building Services (CIBSE) have published a draft standard for the development of district heating.

A public consultation was launched yesterday to give an opportunity for the wider industry and stakeholders to provide comment and input. The overarching aim is for the standard to ensure the conception, design, build and operation of efficient, cost-effective district heating for all users.

CHPA director Tim Rotheray said: “District heating is focussed on delivering value for the consumer, putting them at the centre of a more local, more efficient energy system. It is because of that value that more than 50 local authorities are considering new district heating investments, contributing to Government’s ambitions for heat networks to go from 2% to 14% of UK heating demand by 2030.

“If we are to meet that ambition, with district heating expanding to urban areas all around the country, we need to ensure these investments are being installed and operated with only the highest of standards so that the consumer sees the clear benefits this energy efficiency infrastructure can provide.”

Phil Jones, chair of the code of practice steering committee and the CIBSE CHP-DH Group, said: “The introduction of minimum standards for heat networks will be a step change in taking this sector to the next level. We are already working on supporting this with training, accreditation and registration of heat network professionals to implement the standards and enhance the quality of district heating from design through to operation.”

Information is available on the CHPA and CIBSE websites and the consultation runs until 9 October 2014.    

The Association of Plumbing & Heating Contractors (APHC) and Severn Trent Water are piloting a scheme to enable approved contractors to report any high-risk plumbing work they come across.

Upon receiving a defective work report from a WaterSafe approved contractor, Severn Trent Water will inspect the work. It has the statutory power to ensure contraventions of the relevant regulations are addressed.

John Thompson, CEO of APHC, said: “Plumbing contractors do not currently have an effective means of reporting high-risk defective installations in properties, which inhibits potential enforcement actions and also fails to address companies persistently breaching the requirements of the Water Supply (Water Fittings) Regulations 1999.

“We believe there is a unique opportunity through the WaterSafe initiative to bring plumbing contractors and Water Companies together, to better tackle the issue of high-risk defective work. This pilot initiative has great potential to tackle issues of enforcement and to bring about better regulation of defective work.”

The pilot project is being run through a select number of APHC and WaterMark plumbers operating in the Severn Trent Area and the project will conclude later in the year. If successful, a full reporting arrangement will be rolled out across all WaterSafe scheme operators and water companies.

The number of new homes being registered across the UK remains slightly ahead of corresponding statistics for last year according to new figures from NHBC, but there were considerable regional differences.

The latest statistics show that 38,099 new homes were registered for the rolling quarter May to July, compared to 37,738 for the same period last year.

But there were marked regional differences, with more than 10% of all the new homes registered being located in the East Midlands area, where the number jumped almost 55% to 3,984 from 2,571. The number fell the North East, Merseyside, Eastern, South West, Greater London and South East areas. Registrations in Scotland fell from 2,762 to 2,454 but there were rises in both Wales and Northern Ireland.The latest statistics show that 38,099 new homes were registered for the rolling quarter May to July, compared to 37,738 for the same period last year. This represents an increase of 1%, building on the strong growth seen throughout the country over the last 18 months.

The overall figure of 38,099 represents an increase of 1%, building on the strong growth seen throughout the country over the last 18 months.

The private sector continues to drive overall growth with numbers up nearly 7% for the rolling quarter compared to last year (28,861 this year; 27,028 last year) with the public sector remaining down on 2013 levels by 14% (9,238 this year; 10,710 last year).

Figures for July indicate a slight drop when compared to the same month last year (13,153 this year – 10,278 private sector; 2,875 public versus 13,539 for July 2013; 10,300 private; 3,239 public), although it is the second highest monthly total so far this year.

NHBC’s chief executive Mike Quinton said: “Our latest statistics continue the trend seen during the year to date, with monthly volumes remaining steady and consolidating on last year’s overall levels. As we have stressed in the past, this recovery has been from a historically low base, so the industry must continue to work hard to meet the demand for more new, quality homes.”

Specialist commercial fit-out business Corporate Interiors LLP has gone into administration.

The business, which operates from Hother Green Lane in SE13, says that its client base covers the length of the UK, Europe and beyond. It carries out refurbishment and fit-out projects, furniture consultancy and supply contracts, relocation projects and bespoke interior design services.

Previous contracts have included refurbishing three floors of Anglo Irish Bank’s building in Westminster while ensuring the 200 employees were able to continue working throughout the process.  

The administrators are Steven Leslie Smith and Christopher Laughton of Mercer & Hole, Fleet Place House, 2 Fleet Place, London, EC4M 7RF.

A West Midlands scaffolder has received a four-month prison sentence suspended for 12 months and been ordered to pay £2,500 in compensation after another worker suffered a fractured skull when a pulley wheel fell 7m.

Birmingham Magistrates’ Court heard 27-year-old Mark Jones, from Darlaston, was installing lead flashing on a school roof using lifting equipment installed by Christopher Alan Harvey, trading as Cannock Wood Scaffolding , when the incident happened on 8 August 2013.

Jones, who was working for a subcontractor on the site, was operating a ‘gin wheel’, or metal pulley wheel, which is used to hoist and lower materials with ropes. The wheel had been attached to the scaffold by Christopher Harvey.

As Jones was loading materials from the ground ready for lifting to the roof, the 4kg wheel fell 7m from the scaffold and struck him on the head, fracturing his skull. He has since made a full recovery.

A Health & Safety Executive (HSE) investigation found that Harvey had failed to properly secure the gin wheel to the scaffold – no scaffold fittings were used to prevent the gin wheel from falling off the end of the scaffold tube, and the supporting structure was inadequately braced.

Christopher Alan Harvey, 40, of Wolverhampton Road, Cannock, West Midlands, pleaded guilty to breaching Section 10(1) of The Work at Height Regulations 2005 and received a four month prison sentence suspended for 12 months and was ordered to pay Mark Jones compensation of £2,500, plus £527.56 in costs.

Speaking after the hearing, HSE inspector Edward Fryer said: “This incident was entirely preventable and could easily have been avoided had Mr Harvey followed the published guidance to attach the wheel securely. Gin wheels are a common accessory for scaffolders and must be attached correctly. The installation of this gin wheel fell far short of the expected standard and made it almost inevitable that it would fall from the scaffold endangering anyone walking beneath.

“Mr Jones suffered a fracture to his skull, but it is nothing more than luck that he was not more seriously injured, or even killed.

“If you are installing scaffolding or associated lifting equipment, it must be left in a safe condition. The quality of work could make the difference between life or death.”

Student accommodation developer and manager Unite has reported earnings up 34% in its half-year results for the six months to 30 June.

Government policy increasing funded places for 2014/15 and removing the cap on 2015/16 places is expected to translate into higher student numbers in the coming years, said Unite.

The 34% rise in its earnings took the total to £20.4m from £15.2m for the same period last year. The company said that it is on track to achieve like-for-like rental growth of at least 3% for the full year, with reservations for the 2014/15 academic year currently at 92%, compared to 90% at the same time last year.

Its portfolio has grown through securing contracts for four regional development projects totalling about 2,300 bed spaces for delivery in 2016. Two further development projects have been secured under lock-out agreements and are expected to total approximately 1,000 bed spaces. Planning consents have also been achieved on London projects comprising 1,600 bed spaces for delivery in 2016.

Unite Group chief executive Mark Allan said: “Our strategy is underpinned by three key priorities: to be the most trusted brand in our sector, to maintain the highest quality portfolio and to have the strongest capital structure. We continue to make excellent progress and are confident about our ability to deliver our strategy against a strong market backdrop.”

Unite provides a home fro 43,000 students in 130 properties in 23 UK university cities.

Two construction companies have been sentenced for safety failings after a worker was injured in a fall at a site near Canterbury in Kent.

The 46-year-old worker, from Tunbridge Wells, who does not wish to be named, fell through the fragile roof of a food packaging firm’s premises in Bridge after losing his balance on the working platform he was using.

He landed on the cold store roof nearly 2m below and suffered a broken rib and fractured left wrist, but has since recovered and returned to work.

The incident, on 4 October 2012, was investigated by the Health and Safety Executive (HSE) which prosecuted Ramsgate-based firms WW Martin Ltd and Brandclad Ltd.

Canterbury Magistrates were told that the food firm had used WW Martin for several years to undertake building work at their site so had appointed it to remedy leaks in the premises. WW Martin in turn hired specialist roofing firm Brandclad to carry out the work.

Before the repairs started, WW Martin was sent a risk assessment and a planned method of work by Brandclad highlighting the danger of the fragile roof and stating that platforms with handrails would be used, along with harnesses for workers.

However, HSE found that from the start of work on 22 September until a month later when the work finished, the platforms for the roofers were left open and unprotected.

Even when the Brandclad employee fell and work was suspended for 10 days to review what had happened, the only change made was to provide platforms that sat flatter and more evenly in the troughs of roof sheets. The safety measures that had been promised – handrails and harnesses – were never used by Brandclad. WW Martin, which was responsible for monitoring the work, failed to take any action.

Magistrates heard that HSE found both WW Martin and Brandclad had considered putting fall prevention measures inside the roof void but had decided against it because of doubts about the structural strength of the cold store roof.

WW Martin Ltd, Dane Park Road, Ramsgate, and Brandclad Ltd, Orchard Business Centre, North Farm Road, Tunbridge Wells, each admitted one breach of the Work at Height Regulations 2005.

Brandclad, stated by the court to be 60% culpable, was fined £7,000 with £3,588 in costs. WW Martin was fined a higher amount of £10,000 owing to its stronger financial position despite being 40% culpable, also with £3,588 in costs.

Speaking after the hearing, HSE inspector Melvyn Stancliffe said: “This was a completely avoidable incident. The dangers of working on fragile roofs are very well- known in the industry. Such work should never be undertaken without careful planning and making sure the right type of fall prevention and mitigation measures are in place.

“It is incredible the work was carried out despite the companies’ misgivings about the strength of the internal cold store roof. Had that given way when the worker fell on to it then HSE would likely have been investigating a death.

“Even after the incident, the job was resumed without any proper improvements made to the working methods. There should be no shortcuts when working on fragile surfaces – no matter how short the duration of a job is.”

Forest products company SCA has appointed Capita to advise on the potential for its 100 acre former paper mill site at Oughtibridge, Sheffield.

Capita will be undertaking a detailed review of the estate, which includes about 350,000 sq ft of industrial buildings and a number of houses.

The team will be speaking with the local planning authorities and other interested stakeholders as part of the commission and working alongside the SCA team, which has already been managing the decommissioning of redundant plant, equipment and buildings.

Capita said that it aims to find a solution that maximises the potential of the diverse brownfield site.   

West Midlands SMEs are being invited to a networking event to meet construction teams who design, build and run hospitals across the globe.

Local businesses are being invited to showcase their products and services to health sector chiefs, procurement leaders and senior design teams from some of the UK’s largest construction firms, who will converge in West Bromwich in October. Balfour Beatty, Carillion, Laing O'Rourke and Skanska are already signed up to exhibit.

A particular peg for the event is the recent announcement that a £353m flagship hospital – the Midland Metropolitan – has been approved for development in Smethwick.

‘Meet the hospital bidders’ is being co-hosted by Sandwell Council, Birmingham City Council and Sandwell & West Birmingham NHS Trust at the Bethel Convention Centre on 9 October.

Councillor Ian Jones, Sandwell Council’s cabinet member for jobs and economy, said the timing was perfect. “Our region’s supply chain is admired across the world. Collectively, our businesses are capable of providing every component and service required to design, build and maintain a 21st-century healthcare facility.

“‘Meet the hospital bidders’ will provide an excellent opportunity for local businesses to show their manufacturing prowess, engineering ingenuity and advancements in medical, science and built-environment technologies to the very people who will soon be looking to procure healthcare-related products and services,” he said.

The event will be opened by former CBI chief Lord Digby Jones. It will include the launch of the West Midlands Virtual Hospital (WMVH) – a 3D walkthrough digital hospital to showcase locally made components, products and services.  

Local government secretary Eric Pickles is calling for new housing developments to be built with more parking spaces to end a “vicious cycle” where clogged up streets leave motorists to run a gauntlet of congestion, unfair fines and restrictions.

The government is proposing action to rein back in arbitrary parking standards, which have previously prevented and restricted house builders from providing homes with enough parking spaces.

Where sufficient parking spaces are not provided people will resort to either paving over their front garden or parking on the street, said Pickles. This can then result in a counter-productive increase in municipal on-street parking restrictions and fines.

“Families want a home with space for children to play in the garden and somewhere to park and load the car or cars,” said Pickles. “No space at home leaves no space on the road. We need to cease this vicious cycle that leaves our streets endlessly clogged-up. Allowing the market to offer enough parking spaces will help take the pressure off our congested roads.

The department has published new planning guidance for consultation, which seeks councils’ support to improve the quality and quantity of parking.

Balfour Beatty’s directors have used a new method to evaluate the company’s PPP portfolio, resulting in a value of £1.051bn – 46% higher than under the old approach.

The valuation methodology has been changed to reflect reduced discount rates, improved cash flow assumptions and revised macroeconomic assumptions. The new figures represent a 46% increase to the total portfolio valuation as at June 2014, compared with applying the former valuation methodology.

The directors’ valuation is intended to provide an indicator of the value of the PPP investment portfolio. By using a consistent methodology over time, it has served to illustrate movements in the underlying value of the portfolio, rather than seeking to provide an open market valuation. However disposals of UK assets over the last few years have highlighted the growing difference between the directors’ valuation and the values achievable for UK investments in the open market. The board concluded that the existing methodology no longer provided a good indicator of value.

The directors’ valuation of the portfolio at December 2013 stood at £766m. Underlying movements during the first half reduced the directors’ valuation, under the previous methodology, to £721 million. This reduction was driven by disposals made in the first half more than offsetting underlying increases and the inclusion of Balfour Beatty Infrastructure Partners for the first time. The application of the updated valuation methodology saw the total portfolio valuation increase to £1.051bn.

The UK portfolio valuation increased by 63% to £801m at June 2014, with the North America portfolio put at £250m, a rise of 9%.

Balfour Beatty expects to invest approximately £250m into the PPP portfolio over the next five years.

Builders’ merchant Grafton Group, which includes the Plumbase, Selco and Jackson brands, has seen its profits and profit margin rise in the first half of this year.

Revenue rose 11% to £1.02bn and underlying operating profit was up 62% to £50.6m, with the margin increasing to 5% from 3.4%. The underlying profit before tax grew 88% to £45.9m.

Strong performance in the UK merchant business was attributed to  volume growth in the residential repair, maintenance and improvement market. There was also strong operating profit growth in Ireland as market recovery gained momentum.

"These results demonstrate further progress by the group, in particular, the milestone of a 5% Group operating margin, which is a key point in our journey from recovery to growth," said chief executive officer Gavin Slark. The group remains committed to a growth strategy of organic initiatives and value adding acquisitions, he added. "We believe the overall outlook is positive, notwithstanding a slower rate of growth in the second half and we are confident that the full year's trading performance will be at least in line with current consensus expectations."

Kingspan’s financial report for the first half of this year shows revenue up 4% to €889.3m (£708m) and a 24% increase in trading profit to €69.2m.

The company said that its performance overall was good, with sales levelling off in the second quarter following a strong and unseasonal first quarter.

Sales of insulated panels were up 9% and trading profit up 30%. Factors include some improvement in end markets in certain regions. Insulation boards saw sales rise  1% and trading profit up 32%, with a good performance in the UK in particular and an improved business mix. The group's new facility in the Eastern region of Germany was fully commissioned in the second quarter.

Environmental sales were flat overall and have stabilised. Access floor sales were down 11%, with weak US office activity offsetting a good performance in UK office volumes.

Chief executive Gene Murtagh said: "Kingspan has delivered strong growth in profitability, notwithstanding a tougher EU construction sector in the second quarter, and a global economic recovery that remains weak. Our order book carried good momentum into the second half of the year, driven by continued growth in the demand for low energy buildings."

Kingspan recorded a positive start to the first six months of 2014 resulting in sales revenue of €889.3m and a trading profit of €69.2m, an increase of 4% and 24% respectively. Quarter one activity, in particular, showed a significant improvement over the same period in 2013, followed by a second quarter sales trend that eased towards mid-year.

UK revenue, representing 38% of Group sales, grew materially in the first half in the insulated panels, insulation boards and access floors businesses as general building activity continued to recover.

The trading environment in many of the other markets has been quite mixed with the Benelux and France remaining under some macro-economic pressure despite being enhanced by an unseasonably mild first quarter. The German market was stable, as was the Gulf region. The performance in Turkey was quite weak as a result of recent political instability there. North American non-residential activity was reasonably stable where the insulated panels business continued to gain from further penetration growth, although this was countered somewhat by weak office construction in that region.

Earlier this month Kingspan announced that its had entered into an agreement with Pactiv acquire its US building insulation business (link opens in new tab).

North Midland Construction (NMC) has reported group revenue of £90.98m for the first half of this year.

The figure is up 1.5% on the revenue for the same period in 2013. Profits before tax for the first half of 2014 are £0.37m compared to a loss before tax of £0.48m for the same period last year. In addition, the underlying profit before tax of the business – prior to problematic contract provisions – was £1.78m, compared to £1.24m for the first half of 2013.

Problems still remain in the building and civil engineering division, particularly in connection with the resolution of three legacy contracts, said the company. This has resulted in an operating loss of £0.84m for the period, however, this compares to a £1.58m loss for the same period last year. The division’s revenue has reduced by 31.3% to £11.72m too.

Progress is being made to resolve the problematic contracts and the division has been completely restructured under new management.

NMC chairman Robert Moyle said: “The return to profitability is encouraging and orders received to date to be executed this financial year stand at £178m. Maximum effort is being expended to bring the legacy contracts to conclusion and settlement and whilst the Group continues to trade profitably, there is still potential risk in the resolution of legacy contracts.”       

The NMCNomenca division has reported profitability increasing by 8.4% to £0.94m from £0.87m for the same period last year, on revenue increased by 10.8% to £41.31m.

The AMP5 programme is drawing to a conclusion with the inevitable pressure on margins, but costs have been controlled and the division is performing to expectations. In addition, Severn Trent Water has recently awarded the division the asset maintenance framework for its Eastern area, at a value of £6m a year. The framework has a five year duration, with the option of a two-year extension.

Preparatory work has already started on the Severn Trent Water AMP6 programme, which was secured in December 2013.

Nomenca, the group’s mechanical and electrical subsidiary, has had a relatively slow start to the year, with revenue declining by 3.7% to £19.04m from £19.76m for the same period last year.  However, operating profitability was maintained at £0.18m.

The reduction in revenues was caused by the delayed award of a major project and reduced expenditure on one particular framework.  Revenue is expected to increase in the second half of the year and a further £24m worth of orders has already been secured for completion this year. NMC is confident it will achieve its full-year target.

The highways division has suffered a slower start to the year than originally forecast, with delays in anticipated expenditure and the award of a major project.  In spite of this, revenue escalated to £7.71m but this was insufficient to cover the overheads, which had been increased in anticipation of the projected increased revenue. Therefore, an operating divisional loss of £0.01m was incurred.  Secured revenue for the division for this year currently stands at £24.60m, so the second half-year is expected to show a significant increase and a return to profitability.

The utilities division has benefited from increased expenditure by telecoms companies on broadband infrastructure, causing revenue to rise by 15.5% to £10.99m with improved operating profitability which has increased to £0.14m.

The director of a Stockport-based building firm has been fined after workers on a house refurbishment were put at risk by the lack of any hot water to wash off dust and contaminants.

Roland Couzens, 67, from Macclesfield, was prosecuted by the Health & Safety Executive (HSE) after it emerged that the bricklayers, plasterers and a roofer could have suffered skin burns or lead poisoning during the contract.

Trafford Magistrates’ Court heard that Couzens, a director at CSC Construction Ltd, had been overseeing a project to refurbish a row of Victorian terraced houses on Ashton Old Road in Openshaw between May and September 2013.

The company, which has since gone into administration, had been stripping the houses bare before plastering them and fitting them with new kitchens and bathrooms.

HSE carried out an inspection of the site on 4 September 2013 and found that one of the vacant properties was being used for the site office and to provide welfare facilities for the workers. However, there was no hot or warm water supply in either the kitchen or bathroom.

The court was told that bricklayers and plasterers were put at risk of suffering skin burns as they were working with cement and plaster but could not use hot water to clean themselves. A roofer working with lead could also have suffered lead poisoning from residues on his skin.

Couzens admitted to visiting the site several times a week during the project but failing to provide a hot water supply until after the HSE inspection, despite the need for hot water being highlighted in the company’s construction plan.

Roland Couzens, of Sugar Lane in Rushton Spencer, near Macclesfield, was fined £2,000 and ordered to pay £3,102 in prosecution costs after pleading guilty to a breach of the Health & Safety at Work etc Act 1974.

Speaking after the hearing, HSE inspector Matt Greenly said: “There were around a dozen people working on the site every day so it’s astonishing that they were without hot water for more than three months. Mr Couzens was brought in to oversee the project, including the health and safety of workers, but he failed to ensure this basic legal requirement was met.

“The houses were taken back to brick before being completely renovated so there were large amounts of dust, as well as the risk of workers suffering skin burns or lead poisoning from the components in the building materials.

“This case should act as a warning to companies and directors that we will not hesitate to prosecute if they do not act to ensure the health and safety of their employees.”

Richard Judge, currently chief executive of the Insolvency Service, has been chosen to head up the Health & Safety Executive.

Dr Judge will start his new role as HSE chief executive in November 2014.

He will take over from Kevin Myers, who has been acting chief executive since August 2013 when Geoffrey Podger stepped down after eight years in the role.

Dr Judge is a fellow of the Institution of Mechanical Engineers. Before joining the Insolvency Service in July 2012 he had a varied career in science and technology organisations spanning the nuclear, rail and environmental sectors. Between 2007 and 2012 he was chief executive of the Centre for Environment, Fisheries & Aquaculture Science, an agency of the Department for Environment, Food & Rural Affairs.

HSE chair Judith Hackitt said: “I am delighted to welcome Richard as our new chief executive and look forward to working with him. His valuable, considerable experience in both the public and private sector is a perfect fit for HSE, enabling us to take forward our commercial agenda whilst also ensuring we can build on our standing as a world-class regulator of workplace health and safety.”

Dr Judge said: “This is a great opportunity to lead the executive of a renowned and respected regulator that will soon celebrate its 40th year. I look forward to working with my new HSE colleagues, and with everyone who has a stake in delivering further improvements in Britain’s health and safety performance.”

Construction of the world’s biggest tidal array could start before the end of the year after securing government grants.

An initial four turbines will be deployed as a demonstration phase of the Pentland Firth Inner Sound tidal energy project. It is being developed by MeyGen Ltd, a joint venture between investment bank Morgan Stanley (45%), French-owned power generator International Power (45%) and tidal technology firm Atlantis Resources Corporation (10%).

The £51m project has been given £10m worth of grant funding from the UK government, £17.2m by the Scottish government’s renewable energy investment fund (REIF) and £3.3m from Highlands & Islands Enterprise (HIE). This is for the demonstration phase only.

When fully operational, the 86MW array could generate enough electricity to power the equivalent of 42,000 homes – around 40% of homes in the Highlands.

MeyGen won the rights to the scheme from the Crown Estate in 2010 with a 25-year operating lease.

HIE director of energy Calum Davidson said: “The MeyGen project is the first commercial scale tidal stream array to be developed and built out. HIE is delighted by today’s announcement as it gives a strong green light to the start of the construction phase of the project. It is a huge boost to the Highlands & Islands which is being rightly recognised as a global centre for marine renewables. We have world class wave and tidal conditions here, as well as expertise across the engineering and marine supply chain supported by a skilled and dedicated workforce.”

The board of Hyder Consulting has accepted an improved takeover offer from Dutch engineer Arcadis.

Hyder initially agreed a £256m deal with Arcadis at the end July. But the following week Japanese firm Nippon Koei lodged a £268.1m offer, prompting Hyder’s board to ditch the Dutch and accept the higher offer. (See previous report here.)

Arcadis has now offered a deal that values Hyder at £288m. It has also acquired 15.6% of Hyder’s existing issued ordinary share capital.

Hyder directors have also agreed to sell their combined 283,137 shares to Arcadis, which represents a further 0.7% of the ordinary share capital. They have also withdrawn their recommendation of the Nippon Koei offer.

Under the terms of the increased offer, Hyder shareholders will be entitled to receive 730p per share.

Arcadis chief executive Neil McArthur said: “Hyder is a unique company with a long history of being involved in the leading edge of design and engineering.” He said that the two companies were “highly complementary” both in geographic coverage and in expertise.

He added: “The combined rich histories, shared values and strong cultural fit make the two organisations natural partners where exciting career opportunities will be afforded by a stronger growth platform for staff in both companies.”

A steering committee, jointly led by Hyder CEO Ivor Catto and Arcadis director Stephan Ritter will create the detailed strategy and optimal operating model of the combined businesses.

Hyder CEO Ivor Catto said:  “The Hyder Board and management team is delighted that Arcadis has made this increased offer of 730 pence per Hyder share. Arcadis’ increased offer represents compelling value for Hyder shareholders.”

Miller Construction made a loss of £6.2m in the first half of 2014 before being sold to Galliford Try.

Galliford Try took over Miller Group’s loss making construction division on 9th July 2014 for £16.57m.

The first-half losses at Miller Construction continued a pattern seen the previous year, in which it reported a £4.6m operating loss for the full year. This year's construction losses were again attributed to “continuing delays on a limited number of historic contracts that had been procured competitively on the basis of price”.

At group level, Miller more than doubled its pre-tax profits in the six months to 30^th June 2014, making £8.3m profit, up from £4.0m for the same period in 2013.

Thanks to its house-building operations being busier, turnover increased by 40% to £175.4m (2013 H1: £125.1m).

Housing completions were 28% higher at 855 units (2013 H1: 667 units) and the average selling price improved 12% £198,000 (2013: £177,000), more due to different product mix than price inflation.

Group profit before interest and exceptional items was £19.1m, which is nearly treble the £6.6m figure for the same period last year.

At Miller Mining, poor weather at the start of the year impeded production and coal volumes sold were 13% lower. Profit before interest was £900k (2013 H1: £2.4m) but the mine remains strongly cash generative, Miller said.

Group chief executive Keith Miller said: "The group has performed well and benefited from continued improvements in the market. Miller Homes is showing strong margin growth and a substantial improvement in return on capital principally driven by higher volumes and the increased contribution from new sites. Miller Developments is experiencing positive occupier demand for its key strategic property assets. The disposal of Miller Construction in July allows the group to focus on the housing and commercial property markets which are showing strong signs of growth.

"In Miller Homes, trading continues to be robust across all of our regions in the UK, increasing our confidence in our ability to deliver improved margins and return on capital through enhancing the quality of the landbank and product mix, growing volumes with limited additional overheads and increasing the conversion of strategic land. We are targeting annual completions of 2,750 units in the medium term.”

Henry Boot has seen a strong rise in profits in the first half of the year despite a decline in revenues.

For the six months to 30 June 2014, Henry Boot’s profit before tax increased 81% to £13.4m (2013 H1: £7.4m)

Each of its business segments traded well in the period in line with the general economic recovery and returning market confidence, the company said.

Revenue was lower at £65.8m (2013 H1: £81.8m) as a one-off £15m land sale last year was not repeated. However, operating profits were 79% higher at £14.0m (2013 H1: £7.8m) as a result of several land sales and combined development property sale profits and valuation gains of £2.1m, compared to a combined deficit of £0.3m in 2013.

Henry Boot’s land and property development arms continue to be busy. At Markham Vale, its 200-acre business park venture with Derbyshire County Council, two factory developments totalling 50,000 sq ft are due for completion imminently and the construction of two industrial units, totalling 150,000 sq ft, is expected to start by the end of the year.

A retail warehouse scheme in Livingstone is also expected to start soon, while in York there is continued good progress with the redevelopment of the former Terry's Chocolate Factory.

Chairman John Brown said:  “Commercial development activity is now at its highest level since 2007 with new, pre-let developments achieving hurdle rates of return, expected to commence in the second half of the year. The combination of this increased level of commercial development, our strategic land sites with well over 10,800 permissioned housing units available for future sale and the solid returns from the construction segment should strongly support growing shareholder returns into 2015 and beyond.”

The construction division has now won enough orders to achieve its budgeted turnover for the year and is on course to hit profits targets. The 2015 order book is also starting to build, the company said, and prospects were good thanks to various frameworks in the health and education sectors.

Banner Plant has also seen a further improvement in activity in the first half. “Utilisation and, more recently, rates have improved slightly which, if maintained through to the year end, should result in the delivery of a better result than 2013,” Mr Brown said.

Architecture practice Aukett Swanke has recruited Beverley Wright from CH2M Hill to be its new group finance director.

She starts on 15^th September. Current incumbent Duncan Harper will stay on for a month to hand over.

Ms Wright has more than 25 years finance experience within construction and engineering firms, including 16 years at Mowlem plc before joining Midas Group in 2005 as group finance director.

She moved to CH2M Hill in 2006 as commercial and financial director Europe, becoming international commercial director in 2013.

Aukett Swanke chief executive Nicholas Thompson said: "We are delighted to welcome Beverley to the board. She brings a wealth of commercial experience to Aukett Swanke along with significant financial expertise both in the UK and internationally. Beverley will be a valuable addition to the executive team as we pursue our growth objectives. "

The level of England’s new housing construction activity in the April to June quarter of 2014 was unchanged on the first quarter but up 18% year-on-year.

The latest statistics show that there were 36,230 new housing starts in England between April and June. Although this is the same amount that was seen in the previous quarter, it represents an increase of 18% on the same quarter last year.

It brings the total number of starts over the last 12 months to 137,780, which is a 22% increase on the previous year and the highest level of house building since 2007.

The government said that the construction sector had now been growing for 15 consecutive months, and is currently experiencing the sharpest rise in house-building orders since 2003. Companies are taking on new workers at the fastest rate since 1997, it said.

Seasonally adjusted house-building starts are now 112% above the trough in the first quarter of 2009 but remain 26% below the last peak seen that was seen in the first quarter of 2007, just before the bubble burst.

Seasonally adjusted completions are estimated at 29,540 in the second quarter of 2014, 6% higher than the previous quarter and 7% higher than the same period last year.

Annual housing completions in England totalled 114,440 in the 12 months to June 2014, an increase of 7% compared with the previous 12 months

Last year successful applications for major housing schemes were up 23%, and planning permission was granted for 216,000 new homes.

Housing minister Brandon Lewis said that the figures were evidence that the government’s long-term economic plan to improve the housing market is working. He said: “Wherever you look across the housing market, the signs of progress are clear. House-building in England is up by over a fifth compared to last year, orders for building materials are rising at the quickest pace for 11 years, and companies are hiring new staff at the fastest rate since 1997.”

He said that “improving the housing market will remain a vital part of our long-term economic plan”.

The GMB union is organising a strike ballot of 45 members employed by Kier Refuse Services in Kings Lynn and West Norfolk in a pay dispute.

Since its acquisition of May Gurney last year, Kier is responsible for waste and recycling services for Kings Lynn and West Norfolk Borough Council.

The company has made a final pay offer to its workforce of a 1.75% increase over 15 months in response to a claim for 4% over 12 months.

The ballot of members closes on 27th August 2014 and members are being asked to support strike action to secure a better offer.

GMB regional officer Glenn Holdom said: "This insulting pay offer does not reflect the effort put in by the operatives to fulfil the conditions of the contract. Even then it is a 15 month deal because they want to change the anniversary date to 1st July.

“The company response is not acceptable to our members and they view this as the straw that has broken the camel’s back.

“There have been a number of aggravating issues on this contract such as round imbalances, increased working hours and level of agency staff being used since the TUPE transfer from Veolia in April 2013.”

GMB is involved in a separate dispute with Kier Group across the UK as it is one of the backers of the now-defunct Consulting Association that contractors used to blacklist workers they considered undesirable. Kier is now one of eight firms behind The Construction Industry Compensation Scheme, which the unions are also against as they see it as a way to pay off victims cheaply to avoid more costly court judgments.”

The Competition & Markets Authority (CMA) has approved Wolseley UK’s purchase of Fusion Provida UK and Utility Power Systems.

Fusion Provida UK (FPUK) and Utility Power Systems (UPS) have been acquired from the Fusion group. FPUK supplies utility infrastructure products and UPS supplies and hires out pipe jointing equipment to utility contractors. With close to 200 employees, the businesses operate from 11 depots around the UK, including a national distribution centre and national sales office in Chesterfield, Derbyshire.

The deal was originally announced on 1^st April 2014 but has now received formal clearance from the competition authorities.

Wolseley UK managing director Steve Ashmore said: “The acquisition gives Wolseley UK an excellent opportunity to expand its presence in the utilities supply chain. It is a strong next step in our strategy to grow in this marketplace and trade in areas where we are equipped to win.

“Fusion Provida UK and Utility Power Systems’ great customer service and expertise fit well with Wolseley UK’s strategy and values. Working alongside our Burdens business and led by Burdens’ managing director, Keith Dorling, they can help us fulfil our potential in the infrastructure and utilities marketplaces.”

Fusion has decided to focus on its core manufacturing activities – electrofusion fittings, polyethylene pipe jointing equipment and tooling, black pipe extrusion and fabrications.

There are three long-term supply agreements in place between FPUK and Fusion Group for: electrofusion fittings; black polyethylene pipe and fabrications; and pipe jointing equipment, tooling and associated spares.

Two brothers from Stoke-on-Trent, described as having little or no experience of building and construction work, have been sent to prison sentences after exposing site workers to asbestos.

Akram Hussain, 52, and Inam Hussain, 47, were refurbishing a former print works on Scotia Road, Burslem. At least seven workers are known to have been exposed to asbestos on the project since February 2012, with one of them aged just 17 at the time.

Stafford Crown Court heard yesterday (20th August) that neither was qualified or experienced in construction, demolition or refurbishment work, nor were they licensed to remove asbestos.

Akram Hussain is a snooker hall manager and Inam Hussain a taxi driver, although they have been carrying out the work on the building for around 10 years.

The Health & Safety Executive (HSE) prosecuted the brothers after an investigation found that work was being carried out without the necessary asbestos surveys and without a construction, design and management (CDM) co-ordinator in place, which is required if work is to take more than 30 days.

Despite repeated visits from HSE inspectors and numerous enforcement notices warning them of their failings, the brothers continued to refurbish the building and disturb asbestos material, putting workers at risk.

A prohibition notice was issued on 17th February 2012 stopping all asbestos-related work. A ‘direction to leave undisturbed’ was also issued for the building until HSE had provided written confirmation that work could continue.

However, several lorry-loads of waste contaminated with asbestos were removed from the site and taken to an unlicensed waste disposal site in Stoke-on-Trent.  Workers were also witnessed leaving the site covered in dust and not wearing appropriate protective clothing.

A further prohibition notice and an improvement notice were served on Akram Hussain on 25th February 2012 when inspectors again found work being carried out without an asbestos survey or a CDM.

A separate prohibition notice was also served on Inam Hussain on 18th May 2012 for the non-licensed removal of the asbestos from the building. An improvement notice was served at the same time for the ongoing failure to appoint a CDM co-ordinator.

An asbestos survey was later carried out, but work inside the building continued to disturb materials containing asbestos.

The court heard that the HSE knows of at least seven workers being exposed to asbestos in the building. Many more could have been exposed during the course of the refurbishment project over the years.

Akram Hussain and Inam Hussain both pleaded guilty to breaching section 3(2) of the Health and Safety at Work etc Act 1974. Akram Hussain was given a custodial sentence of 22 months and ordered to pay costs of £43,000. Inam Hussain was given a custodial sentence of 14 months.

HSE inspector Lindsay Hope said after the hearing: “The Hussains have shown a willful disregard for the health and safety of workers and others. Our investigation uncovered a catalogue of serious errors, safety failings and a disregard of the laws around the safe and correct removal of asbestos.

“This was an appalling case of failing to properly plan, manage and resource this project, which led to workers being exposed to risks to their health from asbestos.

“It is essential at the outset of a building refurbishment to first seek specialist advice regarding the possible presence of asbestos within that building. Only with the full knowledge of what is present, or not, can any asbestos then be dealt with safely.

“Failure to identify and deal with any asbestos can lead to it being damaged and people then breathing in the fibres. The Hussains failed in their duty by choosing to ignore the dangers of this hidden killer.”

Costain has decided not to bid for any more contracts in the waste sector after getting its fingers burnt in Manchester.

Costain started a £400m contract in 2009 to design and build a network of waste treatment facilities in Manchester for Viridor Laing. Of the 46 waste facilities to be provided under the contract, design faults have been identified at four sites, including one site that remains to be completed. The additional costs incurred here widened the operating losses in Costain’s natural resources division.  

“Excluding these costs the division generated an operating profit and is trading in line with expectations,” the company said.

It added: "The group is not pursuing any further contracts in the waste sector."

Costain’s infrastructure division, by contrast, is performing strongly, buoying up the business as a whole.

Revenue for the six months to 30 June 2014 increased 14% to £529.1m (2013: £462.9m) and group underlying operating profit was up to £11.2 million (2013: £10.7 million).

Pre-tax profit rose 87% to £5.8m (2013 H1: £3.1m). Even stripping out exceptional items –

 such as the £3.7m cost of trying and failing to acquire May Gurney last year – the adjusted profit before tax increased by 8% to £9.1m (2013 H1: £8.4m).

New business won during the first half year has pushed the order book, as at 30 June 2014, up 10% to a record £3.2bn (2013: £2.9bn). More than £950m of revenue has been secured for 2014, compared to £850m this time last year.

In the infrastructure division, revenue increased 36% to £358.7m (2013 H1: £262.8 million) while operating profit rose to £16.9m (2013 H1: £14.4m). The forward order book for the division has grown to £2.2bn (2013: £1.7bn) and the level of tendering activity remains high, the company said.

The natural resources division, which is focused on the oil & gas, nuclear process and water markets, saw its revenue shrink 15% to £169.4m (2013 H1: £199.2m) and operating loss widen to £2.6m (2013: £100,000 loss), due largely to the aforementioned Manchester waste contract.

The Manchester waste treatment network that Costain built for Viridor Laing's PFI contract includes the country’s first thermophyllic mechanical biological treatment – anaerobic digestion plant (MBT) to treat waste and produce green energy.

The 42 facilities comprise five of these MBTs in all, as well as 24 household waste recycling centres (HWRCs), four in-vessel composting (IVC) plants, one materials recovery facility (MRF), seven transfer loading stations and two green waste facilities.

On the day that school pupils across the country get their GCSE exam results, the Federation of Master Builders (FMB) is urging them to consider a construction apprenticeship instead of going back to school for A-Levels.

The FMB points out that the building industry is experiencing a serious skills shortage as the industry looks to fill 182,000 jobs in the next five years.

“There has never been a more exciting time to begin a career in construction and we’re keen to demonstrate that A-Levels are not the only way forward for young people on GCSE results day,” said FMB head of external affairs Sarah McMonagle.

The industry is crying out for new blood. During the recession 390,000 workers left the sector and over the next five years an estimated 410,000 workers will reach retirement age.

Provisional statistics show that there were 314,600 apprenticeship starts in the first three quarters of the 2013/14 academic year but only 13,320 of these are in the construction, planning and built environment sector. Year on year the number of apprenticeship starts in this sector are decreasing (13,730 in 2012/13 and 13,920 in 2011/12).

Ware Construction managing director Chris Ware is a former FMB Apprentice of the Year. He said: “From personal experience I can say that apprenticeships are an excellent route for school leavers. I finished my apprenticeship in carpentry in 2007 after leaving school at 16 when I finished my GCSEs. I started my own company in 2010 in the midst of the recession and I now employ seven full-time members of staff along with seven subcontractors and I own four vans and a variety of machinery.”

With just four weeks to go until the residents of Scotland get to decide whether to break up the United Kingdom, the UK government has announced a £1.2bn funding deal for Glasgow infrastructure.

Chief secretary to the Treasury Danny Alexander and cities minister Greg Clark visited Glasgow yesterday to sign the Glasgow and Clyde Valley City Deal with local council leaders and the Scottish government.

The funding is expected to bring in a further £3.3bn of private sector investment into the proposed infrastructure investment programme over the next 20 years.

The UK government will provide £500m of funding, with £500m provided by the Scottish government and a minimum of £130m from local authorities across Glasgow and Clyde Valley.

This funding will be used to enhance transport infrastructure, unlock new sites for housing and employment and improve public transport. Funding from the UK and Scottish governments will be paid over a 20-year period in annual instalments.

Projects agreed under the deal include:

a £16m UK government contribution to a new £64m Stratified Medicine Centre of Excellence, which will provide life science research and innovation facilities at the New South Glasgow Hospitals Campus.

a £1.2m UK government contribution to a £4m MediCity Scotland facility to bring new healthcare services and medical technology to the market.

£1.7m UK government funding for a new £4m Centre for Business Incubation, Development & Recovery in Glasgow’s Merchant City.

The UK government has so far agreed 26 City Deals across the country, which is its way of injecting competition into the allocation of infrastructure funding and inducing local authorities to form partnerships with local private and public sector enterprises to formulate bids.

The referendum on independence for Scotland takes place on Thursday 18 September 2014.

Carillion has admitted defeat and ended its bid to persuade Balfour Beatty into a merger.

Balfour Beatty’s rejection this morning of Carillion’s third offer has prompted Carillion to give up and walk away.

Balfour Beatty said that unless Carillion accepted the sale of its US engineering subsidiary Parsons Brinckerhoff, then no deal could be agreed. Balfour’s board was also against Carillion’s proposed business plan, which envisaged a drastic reduction in UK construction activity.

In a statement this afternoon Carillion said: “The board of Balfour Beatty has not agreed to Carillion's proposal or to request an extension to the Put Up or Shut Up deadline which expires at 5pm tomorrow, 21 August 2014. Carillion therefore today announces that it is no longer pursuing such a merger.”

However, Carillion said that it still reserves the right to make another offer for Balfour Beatty, as allowed by the City Code on Takeovers & Mergers.

Carillion’s third and final offer was to hand Balfour Beatty shareholders a 58.268% share of the combined company.

The offer valued Balfour Beatty at £2,086 million. The two parties previously agreed an outline deal valuing it at £1,886 million, but that was before Carillion pulled out the surprise announcement that the deal only made sense if it could retain the revenues generated by Parsons Brinckerhoff.

Although the proposed deal has always technically been a merger, and has been presented as such, it was effectively a takeover, with all the top jobs going to Carillion executives. Philip Green would have remained chairman, Richard Howson CEO and Richard Adam CFO.

That Balfour Beatty’s board ever agreed to a deal in the first place indicates a willingness to surrender to takeover under the right terms.

Therefore this is not expected to be the end of the story.

Meanwhile, Balfour Beatty is still searching for someone to be its CEO. It has been without one for more than three months now, since sacking Andrew McNaughton on 6^th May.  

Innovaré Systems, a manufacturer of structural insulated panels (SIPs), is reorganising its factory in Coventry to double production capacity.

Innovaré, a subsidiary of construction group Osborne, is restructuring material flow on the production line during a factory shut-down this week. The company says that simply by introducing these efficiency improvements it is able to double output of its SIPs.

Head of operations Simon Fletcher said: "We are always looking for ways to improve our efficiency and maximise our capacity, so that we can provide the best value and speed of build for our customers and achieve our promise of Complete Delivery. This will also allow us to take on larger and more ambitious projects. We can be even more flexible on the other ‘added value’ elements that we can offer bespoke to our customers.”

Balfour Beatty is still not happy with Carillion’s proposed business plan for a proposed merger of the two companies, despite Carillion yesterday improving the money on the table for Balfour Beatty shareholders.

There will therefore be no extension of the ‘put up or shut up’ deadline of 5pm tomorrow (21st August 2014).

Yesterday Carillion offered Balfour Beatty shareholders a 58.268% share of the joint company, instead of the previously suggested 56.5%, adding £200m to its valuation of the Balfour Beatty business.

But Balfour Beatty said that two deal breakers still remain. The first is Carillion’s business plan to shut most of Balfour Beatty’s UK construction business just when it is poised to benefit from market recovery. The second is Carillion’s insistence that the sale of US subsidiary Parsons Brinckerhoff should be scrapped.

Balfour Beatty’s board has unanimously concluded that the new proposal is still not in the best interests of its shareholders and has decided to reject the proposal.

Balfour Beatty said that it would therefore not be seeking an extension from the Panel on Takeovers & Mergers to allow any more time for talking. It reiterated its intention to remain on its independent path and sell Parsons Brinckerhoff. Canada’s WSP is reported to be the main name in the frame for this.

It also remains on a quest for a CEO. It has been without one for more than three months now, since sacking Andrew McNaughton on 6^th May.

The Health & Safety Executive is investigating the death of a construction worker who fell from the fire-damaged Eastbourne Pier yesterday onto the beach below.

Emergency services were called shortly after 4pm to reports that a man had fallen from the pier. An air ambulance landed on the beach next to the pier, but the 44-year-old man from Cumbria was declared dead at the scene from head injuries incurred in the fall.

The pier was destroyed by fire on 30^th July.

The clean-up operation has seen charred debris loaded into skips and repair work is progressing to make the site safe for re-opening of the undamaged section of the pier in September.