Bristol City Council has called on Royal Institute of British Architects (RIBA) Competitions to stage an international contest to design a new arena for Bristol.

The Bristol Arena project is a large indoor multipurpose arena, to be built on the former diesel depot site close to Temple Meads railway station in the city centre.

Then council is aiming to have construction completed and the arena open by summer 2017. Budget for the arena project is £90m.

Multi-disciplinary teams will have the opportunity to design the 12,000 capacity entertainment arena. It is expected that the winning team will have architectural, structural and building engineering capabilities as well as experience within the performance venue field and significant knowledge of the creation and development of urban spaces.

George Ferguson, Mayor of Bristol and an architect himself, said: “The Bristol Arena is key to the city region's future and will act as a major catalyst to the development of the Temple Quarter Enterprise Zone. We have to grasp the opportunity to design a building that not only works really effectively but is an inspiring place that enriches this new quarter of the city.

“I want the Bristol Arena to become the arena of choice for performers, as well as offering an excellent visitor experience. As an architect I recognise that the design of the building is critical in achieving this. RIBA Competitions has helped to deliver some of the most outstanding buildings around the UK and is well placed to help us to secure the best possible design team.”

Expressions of interest are invited from suitably qualified design teams worldwide and must be submitted by Thursday 18 September 2014. A shortlist of five will then be selected to participate in the design phase of the competition. For further details see www.architecture.com/competitions.

Construction industry output in June is estimated to have risen by 5.3% year-on-year and by 1.2% compared with May 2014.

June saw year-on-year increases in both new work and repair & maintenance of 5.4% and 5.0% respectively.

However, quarterly output remains 10.3% below the pre-crash boom.

The second quarter of 2014 maintained output levels seen in the first quarter, with zero growth. Quarterly growth is estimated at 0.0%, an upwards revision from the previous 0.5% assumption used in official estimates for gross domestic product (GDP).

However, the annual growth between Q2 2014 and Q2 2013 was estimated to have increased by 4.8%.

The Office for National Statistics (ONS) said that the quarterly output in the construction industry all work series has steadily increased since Q1 2013 and in Q2 2014 was estimated to be 6.7% higher than in Q1 2013.

Despite this increase, all work remains 4.1% below its post economic downturn peak in Q2 2011 and 10.3% below its pre economic downturn peak in Q1 2008.

The growth in construction output since Q1 2013 was a result of increases in both new work and repair & maintenance. New work increased 6.7% in Q2 2014 although the series remained 8.5% lower than its post economic downturn peak in Q2 2011 and 12.3% below its pre economic downturn peak in Q1 2008.

The repair & maintenance statistics since Q1 2013 show less volatility than the new work numbers but similarly to new work, from 2013 onwards, there has been a steady increase in the volume of repair & maintenance work. This series was estimated to be 6.9% higher in Q2 2014 than in Q1 2013 and has produced seven consecutive quarters of growth.

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EC Harris head of strategic research & insight Simon Rawlinson said that the data“shows that growth in output has ground to a halt in the second quarter”.

He added: “Considering that recent GDP data suggested that construction had contracted by 0.5% in the second quarter, the data is positive, but provides no room for complacency. The star performing sector in the quarter has been industrial – with activity driven both by factories and distribution.  Residential also continues, as would be expected, to grow steadily.

“The commercial sector is bumping along, but with increased confidence and much wider availability of funding, activity can be expected to pick-up later in the year as projects proceed to site in a wider range of markets in the UK.

“Data from 2014 so far points to a real challenge for contractors and clients.  If growth in workload is so steady – why are resources so constrained so early in the cycle?  Clearly part of the answer lies in the regional concentration of activity and the burst of procurement activity that is currently taking place.  However, the wider market may also being talked up as localised sectors shift into overdrive.”

He said that the construction recovery “remains at an early stage and is yet to cemented by a step change in workload”.

Mr Rawlinson concluded: “The challenge for the second quarter is to ensure that projects in the pipeline remain viable and actually get built.”

Two construction workers were lucky to survive after being hit by a 5kg steel pole that fell from nine floors above them.

Ryan Smith, 31, damaged a vertebra and had to wear a neck brace for several months as a result of the incident at a renovation project in Bournemouth on 16 July 2013. Co-worker Paul Martret, 42, suffered a fractured elbow from the blow.

East Dorset magistrates heard last week that either or both could have been killed by the falling object, which was knocked into a stairwell during work from a temporary platform.

Harbourview Developments Ltd appeared in court as the principal contractor for the refurbishment and conversion of two properties on Christchurch Road.

The work involved removing a stairwell and converting it into a lift shaft. A temporary platform was created using a series of scaffold planks resting on a scaffold tube structure, which was then put in place over the opening to the stairwell.

An investigation by the Health & Safety Executive (HSE) established that work had started to fit a series of vertical and horizontal steel sections around the stairwell to facilitate the construction of additional floors and walls. The installation of the steel sections involved chipping concrete around the edges underneath the temporary platform, which created a series of gaps up to 160mm wide along the edges.

On 16 July 2013, a subcontractor placed a 1.4-metre long, 5kg piece of steel on a structural beam running parallel to the temporary work platform in order to step over it. However, he knocked the steel as he raised his leg, sending it plunging into a gap in the stairwell and towards the workers nine floors below.  They were unable to move away in time and it struck them on their back and elbow respectively.

Magistrates heard the incident could have been avoided had Harbourview Developments Ltd better managed the temporary works to ensure there was no risk from falling materials. 

The Poole-based company, now in liquidation, was fined a token amount of £1 after pleading guilty to breaching Regulation 8(b) of the Work at Height Regulations 2005.

A bankrupt building boss is serving 27 months in prison for a string of offences including fraud and running four separate building companies despite being disqualified as a director.

The conviction of Trevor Lawrence – also known as Trevor Fail – follows an initial investigation by the Insolvency Service and a full criminal investigation and prosecution by the Department for Business, Innovation & Skills (BIS).

Trevor Lawrence, 50, also pleaded guilty to acting as a director whilst a disqualified along with seven other related offences including three counts of fraud. He was sentenced on 14 July 2014 at Northampton Crown Court. The judge also disqualified him from acting as a director for seven years.

Commenting on the sentence, BIS deputy chief investigating officer Ian West said: “This was a particularly blatant example, of offending where members of the public were defrauded of substantial amounts of money, and where enforcement agencies working together have ensured that the perpetrator has been penalised for his crimes.

“Many customers lost substantial amounts of money paid in advance for projects not completed which demonstrates the risk to the public that such an individual poses when they breach orders and undertakings whilst clearly unfit to manage and control such businesses.”

The court heard that Trevor Lawrence was adjudged bankrupt for a second time in July 2007 in the name of Trevor Fail; his previous bankruptcy was in the name Trevor Lawrence. As a result of his bankruptcy, he was not allowed to run a limited company. In September 2007, he had also been disqualified from acting as a director of a limited company for a period of nine years as a result of his conduct as a director of another building company, Silverstar Construction Ltd, which had been wound up in September 2006.

Between July 2007 and June 2011, despite being disqualified, acted as a shadow director and continued to manage building companies, namely Astone Building Solutions Ltd, All Seasons Building Solutions Ltd, Acorn Building & Construction Ltd and Gadsby & Fay Ltd.

It is not suggested that the companies were completely fraudulent. Building work was undertaken but there are insufficient records to determine what proportion of that work was carried out, or not carried out and to what standard.

On behalf of Astone Building Solutions Limited, Trevor Lawrence submitted invoices to one client with a total claim for VAT amounting to £30,000 despite the company never having been registered for VAT.

The last company, Gadsby & Fay Ltd, went into went into administration in June 2011, leaving contractors unpaid to the value of £60,000.

From September 2007, Trevor Lawrence operated as a sole trader under the name of Allbright Building Solutions. He took substantial deposits from two customers, and in breach of his bankruptcy restrictions, used a name other than that which he had been adjudged bankrupt and failed to inform them of his bankruptcy status. As with the limited companies, he failed to progress the building works and two customers lost £30,800 between them.

Mr Lawrence was sentenced to 27 months for each fraud act offence, to run concurrently and a total of 8 months for the Company Director’s Disqualification Act (CDDA) 1986 and Insolvency Act offences to also run concurrently: a total of 27 months.

BIS has started confiscation proceedings against Mr Lawrence.

Hyder has turned its back on the takeover offer of Arcadis and entered the embrace of Japanese consulting engineer Nippon Koei instead.

Nippon Koei has offered a £268.1m deal, which at 680p per share is 30p per share better than the deal Hyder previously agreed with Arcadis.

On 31 July the Hyder boad announced that it was unanimously recommending its shareholders to accept a £256.2m takeover offer from Arcadis. (See previous report here.) Today they tell us that actually they prefer the Japanese takeover offer, which includes a promise to be left structurally unaltered.

Hyder chief executive Ivor Catto said: "The cash offer from Nippon Koei announced today represents a 30p premium to Arcadis’ offer announced on 31 July 2014 and accordingly the Hyder board is now recommending the cash offer from Nippon Koei. The Hyder board considers that Nippon Koei's cash offer substantially recognises Hyder's growth prospects, and provides certainty, in cash, to our shareholders today. The merged group should also provide further opportunities for our highly valued employees and clients."

Nippon Koei is listed on the Tokyo Stock Exchange with a market capitalisation of approximately £260m.  For the year ended 31 March 2013, it had revenues of approximately £420m and EBITDA of £34m. This makes it a similar size to Hyder, which had £256m net revenues last year and made an adjusted operating profit of £19m. 

Nippon Koei president Noriaki Hirose said: "This merger represents a truly transformational step for Nippon Koei, fulfilling founder Yutaka Kubota's long term strategic vision of broadening the client base and geographic footprint of Nippon Koei, whilst continuing to focus on our core sectors of transportation, utilities and property.  Both Nippon Koei and Hyder operate in the same part of the design and engineering consulting value chain. In short, our chairman (Yoshihiko Tsonoda) and I could not envisage a better business for us to merge with.”

He continued: “I regret that the confidential nature of our interest has meant that we have not yet had the opportunity to meet many of the employees of Hyder and begin planning our combined journey together. We recognise the value of collaboration and so I look forward to addressing this as soon as possible. A key element of our due diligence has been understanding the depth of Hyder's engineering capability and the skills of its people, and we have been most impressed with what we have learned.

“Like Hyder, Nippon Koei is a longstanding company with a rich heritage in engineering. We are conservatively run, with the same focus on clients and quality. We rarely make acquisitions but, having studied Hyder carefully, we are clear how important and strategic this merger is for us.

“Given the success of both organisations, we intend to make minimal changes to the existing operating structures of either organisation and are excited about the prospect of capturing cross selling and other revenue generating opportunities as a combined business."

Arcadis responded to the news by saying that it was “considering its position and will make an announcement in due course”.

Kier has signed a framework agreement with construction consultant Driver Group.

Driver will help Kier minimise the development and build-up of disputes on its projects and provide quantity surveying and programming services both in the UK and overseas.

Driver Group CEO Dave Webster said: "I am particularly delighted for our teams across the UK to be working with a world class construction company such as Kier helping with project delivery in the challenging construction market place."

Balfour Beatty has recruited Peverel managing director Mark Hoyland to rescue its troubled M&E building services division.

Problems at Balfour Beatty Engineering Services (BBES) are behind recent profit warnings at Balfour Beatty that led to the removal of group chief executive Andrew McNaughton after just a year in post.

In April Balfour Beatty brought in Network Rail project director Uma Shanker to take on the new role of chief operating officer for BBES. Now it has found a new chief executive to lead the subsidiary, which had a turnover of £260m last year and has 1,300 employees.

Mark Hoyland was previously managing director of scandal-hit property management company Peverel Property Services, which was the subject of an Office of Fair Trading investigation into price fixing last year.

Balfour Beatty says that he “led the business through a period of transformational change to drive outstanding customer service and improve performance”.

Before that he was chief executive of City West Homes for five years and had periods with Rok, Ballast and Wimpey Group.

Mr Hoyland will be a member of the executive leadership team, reporting to Balfour Beatty Construction Services UK chief executive Nicholas Pollard, who has been also acting as BBES managing director on an interim basis since May.

Mr Pollard said: “Mark’s extensive commercial and operational experience will ensure our smaller, refocused building services M & E engineering business will capitalise on the ongoing recovery in the sector. Mark will lead the business to build long-term collaborative customer relationships, deliver operational efficiency and secure a commercial focus that improves profitability and the order book, winning sustainable business opportunities.”

Building services contractor NG Bailey saw a further steep fall in turnover last year but has survived the recession through sheer hard work, its chief executive says.

Announcing its financial results for the year to 28 February 2014, NG Bailey posted sales of £380m, down 10% from £422m the previous year and from £459m in fiscal 2012.

The company said that this was a deliberate strategy to avoid bidding for contracts that held out the prospect of little or no profit margin.

Profit before tax was not revealed and accounts for the year have yet to be filed at Companies House. However, the company said that it made an underlying operating profit of £2.1m, suggesting that the company may once again have made a pre-tax loss. For the previous year it lost £10.1m, due to a couple of problems contracts and a restructuring.

However, chief executive David Hurcomb was happy with the company’s performance last year. “This is a strong set of results achieved against the backdrop of the worst recession seen in construction, one which has been particularly severe for specialist contractors such as NG Bailey,” he said.

“Our Facilities Services, IT Services and Rail divisions performed particularly well, which helped balance the overall result as our other divisions, operating in the more traditional building construction sectors, were hit harder by the financial downturn. 

“We have worked very hard to achieve this result. Our balance sheet remains strong, net assets are up against the previous year, to £84m – almost all of which is in cash – and we have no borrowings.”

Chairman Kevin Whiteman added:  “A very positive set of results, which further proves NG Bailey’s strength in the marketplace as a leader in its field. It also proves that our transformational diversification strategy is the right one, allowing us to better balance the business in the areas of traditional building construction, infrastructure and services.” 

The order book stands at approximately £600m.

Craig Evans has been promoted to general manager of the UK Asbestos Training Association (UKATA).

He was previously the association’s financial controller and more recently acting general manager.

Chairman Eddie Strong said that the 25-year-old had “already proved himself as an ambitious young man who has the talent and business experience to fulfil this post”, adding “he is undoubtedly the right person to lead the association into this exciting new era”.

UKATA

Mr Strong, said: “UKATA is a growing organisation; we now have over 160 members with more applications pending. UKATA is entering a new period of development and we felt that the time was right to appoint a General Manager to oversee our expanding operations. Craig has already proved himself as an ambitious young man who has the talent and business experience to fulfil this post; he is undoubtedly the right person to lead the Association into this exciting new era.”

Mr Strong added: “Craig’s promotion is a real statement for UKATA. He has some brilliant ideas and better still he is proving himself to be a man of action. His youth, energy and high standards have already made a big impact and the board of directors have every confidence that he will lead UKATA to a very bright future. With Craig at the helm, UKATA will continue to grow and provide outstanding training to more contractors, ultimately protecting more people from the dangers of asbestos.”

Building services contractor Spie has acquired Scotshield Fire & Security.

Spie said that the deal would help it develop expertise in intelligent buildings.

Established in Scotland in 1998 by Tony Kane, Scotshield supplies fire detection, security alarms, access control and closed circuit television systems. In the year to May 2014 it had sales revenue of £23m. As well as installation projects it also has 8,000 sites with service and maintenance contracts.

Spie UK chief executive James Thoden van Velzen said: “This acquisition is an excellent opportunity for both companies to develop their businesses and reach new customer bases across the UK. With limited client overlap, there are numerous opportunities for cross-selling our services. Scotshield is already well established in the northern part of the UK and has demonstrated consistent growth there. By bringing it into the Spie portfolio, we are developing our Scottish business, taking on new technologies and a lead position in the local market. Similarly, Scotshield’s range of solutions has a strong synergy with our own and is therefore a strong fit for existing clients across the rest of the UK, many of whom will be interested in the new services we have to offer.”

Strategy & development director Renaud Digoin Danzin added: “Globally, there is a growing trend for converged security and business management systems (BMS). Scotshield’s expertise will allow Spie UK to further develop its services in the ‘Smart City’ strategic segment, with a particular focus on security and energy management. With this fifth acquisition in three years, we continue to broaden and balance our portfolio of engineering-led services and our client base.”

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Steelwork contractor Thomson Steel and crane hire firm Sarens have lifted in a new footbridge over the River Lea in east London

Main contractor for the job is John Sisk & Son, working for Ballymore Properties.

The Leamouth North Bridge spans the River Lea between Canning Town station and Ballymore’s new London Island development in the Docklands. The bridge will connect the development site, currently in the construction phase by Ballymore, to Canning Town and provide access for pedestrians and cyclists to pass between them.

The bridge weighs 160 tonnes and was lifted into place on 5^th August by a 1200-tonne capacity lattice boom crawler crane. Because the bridge is asymmetrical, the positioning of the lifting points was critical to ensure that the bridge was correctly trimmed during lifting.    

The 80-metre span steel bridge was fabricated in Carlow by Thompsons. Sisk’s design consultant is O’Connor Sutton Cronin & Associates.

The concept design, by structural engineers Davies Maguire & Whitby, allows the bridge to open vertically to let boats under it. The next phase of the works involves installation of the hydraulics and control systems.

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Laing O’Rourke’s annual report for the year to 31st March 2014 shows a steady performance, modestly impacted by a weakened Australian dollar.

Total revenue declined 0.3% to £3.57bn while a reduction in margins in the European business brought gross margin pre-exceptional items down to 8.5%, from 8.7% the previous year.

 “These figures were adversely impacted by foreign exchange movements,” said finance director Callum Tuckett. “On a like-for-like basis, applying foreign exchange rates from the previous 2012/13 trading period, managed revenue increased over 5%.”

After paying £10.0m of tax, retained profit was £41.9m, up slightly from £41.1m after tax profit in 2012/13.

The tax payment equates to an effective tax rate for 2013/14 of 19.3%, down from the 25.4% average of the past four years and below the UK corporate tax rate of 23% due to the mix of profits generated in different jurisdictions, Mr Tuckett said.

Laing O'Rourke, registered in Cyprus and with its parent company based in the British Virgin Islands, is sensitive to accusations relating to its tax arrangements after being embroiled in a row with a member of parliament last year. (See previous report here.)

A decline in the order book from £8.2bn to £7.4bn was attributed half to the weaker Australian dollar, and half to a focus on higher margin contracts rather than chasing turnover.

Profits were broadly evenly split between Laing O'Rourke’s European operations and its Australian ones. Pre-exceptional EBIT for Europe Hub was £47.1m and Australia Hub £45.0m. This came from £2.6bn managed revenue in Europe (which in this context includes Canada, Saudi Arabia and the United Arab Emirates) and £1.8bn managed revenue in Australia.

Group chief executive Anna Stewart said: “We maintained our management discipline, and deepened relationships with customers who value the certainty of our integrated business model. As a result we delivered another profitable performance and made good progress against the key elements of our strategy to offer innovative solutions that benefit our business and the wider industry.

"We continue to be restless in our pursuit of excellence. No one party has all the answers and we thrive best when given the opportunity to collaborate in wider teams and share ideas and develop solutions together."

Chairman Ray O'Rourke added: "I am pleased to report another profitable year in which we have sustained revenues and operating margin, outperformed our industry in cash generation and achieved our targets for new business. This is a creditable performance and I am proud of the commitment and hard work of all my colleagues around the group.”

Twenty councils have been selected for the second phase of a programme to release surplus government land and property.

The One Public Estate programme uses land and property released by government to boost economic growth and regeneration. The Cabinet Office and the Local Government Association (LGA) run the programme together to encourage sharing services, reducing running costs and generating capital receipts.

The 20 councils taking part in the second phase of the One Public Estate programme are:

• Manchester City, Trafford, Bury, Oldham, Salford and Stockport
• Norfolk and Suffolk in partnership with Forest Heath and St. Edmondsbury (West Suffolk)
• Liverpool
• Birmingham
• Barnet
• Croydon
• Plymouth
• Southampton
• Kent
• York
• Cornwall
• Bradford

They join the initial 12 pilot councils that took part in the first phase of the programme in 2013.

• Bristol
• Cheshire West and Chester
• Essex
• Hampshire
• Hull
• Leeds
• Nottingham
• Portsmouth
• Sheffield
• Surrey
• Warrington
• Worcestershire

The programme is already projected to save £21m in running costs and raise £88m in capital receipts.

Councillor Peter Fleming, chair of the LGA's improvement and innovation board, said: “The One Public Estate programme demonstrates the successes which can be achieved when councils and government get together to release land for growth and service improvements, which in turn leads to housing, job creation and economic growth. The first round has been extremely successful and this second round will continue to build on the good work achieved so far. Local authorities have been in the driving seat and the achievements made during the first wave represent a tiny proportion of what we believe One Public Estate can achieve.”

Cabinet Office minister Francis Maude said: “As part of this government’s long-term economic plan we have got out of 1,250 buildings since the last general election generating hundreds of millions in savings and creating more opportunities for housing and jobs.

“This programme shows what can be done when central and local government work together, and it’s great to see more and more local authorities entering the programme and demonstrating a readiness to save money for taxpayers, create new jobs and deliver better services by using their assets more efficiently.”

Disregarding asbestos hazards during a demolition job has led to fines being handed down in Teesside.

Hartlepool-based Baxketh Ltd, a metal-recycling business, agreed to remove steelwork from the premises of UK Tankcleaning Services Ltd in New Road, Billingham. Baxketh worked without payment but got to keep the metal to sell for scrap.

But the steel included pipes lagged in asbestos fibres, which were removed with no attention to the special measures required.

Teesside magistrates were told yesterday that inspectors from the Health & Safety Executive (HSE) visited the site on 22nd February 2013 following a complaint from a worker at neighbouring premises. HSE inspectors saw Baxketh Ltd directors Michael Almond Senior and Michael Almond Junior on the site, with a significant amount of pipework and damaged insulation scattered on the ground. Almond Jnr was operating a mechanical excavator with a grab to move steelwork from the ground into a skip.

A prohibition notice was served on Baxketh Ltd to prevent further work. An improvement notice was also served on UK Tankcleaning Services Ltd that required it to carry out an asbestos survey and develop a system to ensure the results were shared with those likely to disturb any asbestos.

Tests carried out by HSE later confirmed that the insulation debris did contain asbestos.

Baxketh Ltd, of Burn Road, Hartlepool, was fined a total of £12,000 and ordered to pay £3,804.20 in costs after pleading guilty to breaching Regulations 5(a) and 16 of the Control of Asbestos Regulations 2012.

UK Tankcleaning Services Ltd, of Lodge Lane, Doncaster, was fined £10,000 with £2,243.40 costs after pleading guilty to breaching Regulation 4 of the same legislation.

Michael Joseph Almond Snr, 73, of Westbourne Road, Hartlepool was fined £1,000 and ordered to pay £204.80 in costs after pleading guilty to breaching Regulation 5(a) of the same legislation.

Michael Vincent Almond Jnr, 47, of Plymouth Walk, Hartlepool was fined £650 after pleading guilty to breaching Regulation 16 of the same legislation.

HSE Inspector Julian Nettleton said after the case: “Asbestos is the single greatest cause of work-related deaths in the UK and there is a lot of industry in the Teesside area that still uses, or occupies premises that have old chemical processing plant dating back to the ’60s. Almost all of it was lagged with asbestos in those days.

“Site operators and contractors working at these sites should always assume that old pipework is lagged with asbestos unless there is reliable evidence that says otherwise. Those involved in the construction and refurbishment industry also have a clear duty to ensure that work is managed so as to prevent the spread of asbestos.

“This incident occurred because UK Tankcleaning Services Ltd’s asbestos management systems did not include anything relating to informing others of the presence of asbestos on the site. Baxketh failed to carry out an asbestos assessment before starting work and did not take any measures to prevent the spread of asbestos fibres. This put the directors themselves, their own employee and others working nearby at risk of exposure to asbestos fibres and the court agreed that both companies were equally culpable for the offences.”

A strong first half of the year saw construction group Interserve deliver substantial growth in revenue and profitability.

Revenue was up nearly 29% for the six months to 30 June 2014, reaching £1,374.8m (2013 H1: £1,068.2m).

Excluding exceptional items, headline pre-tax profit was up 36% to £50.2m (2013 H1: £36.8m).

Factoring in amortisation and exceptional items, notably transaction costs on the £250m acquisition of Initial Facilities in March, reported pre-tax profit for the period was £28.3m, down from £30.7m for the same period last year.

Even without the acquisition of Initial Facilities, Interserve saw organic growth of 9.1% in revenue and 15.4% in operating profit during the first six months.

With £2bn of new contracts secured in the period, the order book has swollen to £7.5bn, up from £6.4bn at the start of the year.

Chief executive Adrian Ringrose said: "It has been a very good first half of the year for Interserve. We have delivered strong organic growth, achieved through robust performances from our UK Support Services and Construction businesses and excellent results in Equipment Services.

"Market conditions in International Construction and Support Services continue to be highly competitive, although we are now starting to see signs of improving demand.

"Our strong organic growth was complemented by the performance of our acquisitions. Initial Facilities traded in line with our expectations during the period and its integration is progressing smoothly.”

With the acquisition of Initial Facilities, Interserve’s support services division generated £867.2m in revenues, compared to £619.8m in the first half of 2013.

The construction division also performed strongly, with an 11.6% rise in UK revenue to £432.6m, plus a further £99.4m from international work. Organic revenue growth was 4.9% on the same period in 2013, boosted to 11.6% including Paragon, the specialist fit-out and refurbishment business acquired in May 2013. Contribution to total operating profit increased by 8.1% to £8.0m.  Margins remained stable at 1.9% and future workload rose to £1.4bn. (FY 2013: £1.0bn).

Wircon, a German renewable energy company, has teamed up with Sino-American solar power specialist SPI to target the UK solar photovoltaic market.

SPI and Wircon plan to set up a joint venture company to develop solar energy projects in the UK, with an initial proposed target of 55 MW. Selected projects will be procured and developed with the intent for the joint venture company to own and operate certain assets and sell others to investors.

SPI’s stated strategy is to grow its presence in key markets through strategic alliances with strong local partners.

SPI chairman Xiaofeng Peng said: “Wircon has amassed a wealth of solar project development experience in Europe over the years, and this agreement provides a foundation for SPI to grow our business in the critically important UK market. The UK will be one of our key geographic focus markets in the coming years, and this announcement marks a new milestone for SPI internationally.”

SPI Solar describes itself as a global turnkey developer and EPC contractor for large-scale solar energy facilities. Based in the USA, it is majority owned by China’s LDK Solar, which manufactures multicrystalline solar wafers that are used in solar cells.

Mark Hogan, president of Wirsol Energy Ltd, a subsidiary of Wircon, added: “We plan to capitalise on selected opportunities with attractive return potential in the UK market, particularly given the DECC’s proposal to close the RO (Renewables Obligation) scheme to new solar PV capacity above 5 MW from 1st April 2015. We will also invest in sourcing and building a substantial and sustainable pipeline looking into 2015 and beyond.”

Contractors reached a major milestone at Manchester Victoria station last weekend as the largest steel section of the new roof was installed.

Morgan Sindall is main contractor on a £44m transformation of the Grade II listed building. A key component is the new roof, which allows for future expansion of the station.

The work is part of Network Rail’s wider £1bn+ Northern Hub and North West Electrification Programme.

Steelwork subcontractor Severfield began lifting into place the first of 15 giant curved ribs that will support the roof in May.

On Saturday 2nd August the ninth and largest steel rib was lifted in to place using a Liebherr LR 1750 lattice boom crawler crane, supplied by Weldex.

Measuring nearly 100 metres long and weighing nearly 70 tonnes, the beam was lowered into place to form the corner section of the station’s new roof.

Later this month, work will begin to install the roof’s ETFE (ethylene tetrafluoroethylene) panels, a lighter and cheaper alternative to glass. The material, which is used at Manchester Piccadilly station, Birmingham New Street station and the Eden Project in Cornwall, will allow natural light into the station.

All curved steelworks are expected to be in place by mid September. In total, Severfield is supplying and erecting some 1,900 tonnes of structural steel, with the project's scope also involving the construction of a mezzanine floor to link the station to the Phones4U Arena as well as lifts and a feature staircase.

The remaining roof sections will be installed over the next few months with the whole station redevelopment scheduled for completion in early 2015.

Severfield chief executive Ian Lawson said: "The eye catching canopy roof will be the latest of our steel structures to become an iconic urban landmark, following hard on the heels of the Philharmonie de Paris and the Clyde Gateway Smartbridge.”

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More than half of the UK’s specialist construction contractors are now seeing their workload rising, according to a new survey, while nearly three-quarters are confident of growth ahead.

The latest state of trade survey by the National Specialist Contractors Council (NSCC) found that 57% of specialist firms saw their orders increase in the second quarter of 2014, compared to 27% a year ago.

The difference between respondents reporting an increase in orders and those reporting a decrease – the balance – reached its highest level since 2000.

Some 59% of specialist contractors said they expect workload to increase during the third quarter and a record high of 72% expect to see an increase over the next 12 months.

84% of respondents reported that they are now working at or above 75% capacity with 43% above 90% capacity. This is leading to difficulties for some firms with 64% experiencing increased supplier prices and 19% reporting they are unable to bid for work due to skills shortages – which is well above the five-year average of 6%.

There was a slight improvement in payment practices this quarter with 16% of specialist contractors getting paid in an average of less than 30 days. This is the highest result ever recorded by the survey.

In another first for the survey, the number of respondents waiting more than 60 days for payment – 14% – was lower than the number receiving payment within 30 days.

Building maintenance workers employed by Mears on a Brighton & Hove City Council are heading towards a dispute, their union has warned.

The GMB union says that Mears is threatening to change terms and conditions of employment and to withdraw from an agreement for the union to represent members.

The workers were transferred under TUPE legislation from the council to Mears on the outsourced contract for home improvements and maintenance. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (or TUPE) legislation protects terms and conditions of employment and the agreement for the union to represent members. The contract is worth £12m a year to Mears and covers 12,500 homes.

Mears wants the workers to adopt new contract terms but GMB members are refusing.

GMB branch secretary Mark Turner said: “GMB members didn't ask for or want this potential dispute but neither will we shy from doing what's right to protect the terms and conditions of our members.

“The current agreement was put in place when staff TUPE’d to Mears from the council. This was done to ensure that all transferring employees didn't find themselves disadvantaged moving to a profit driven organisation.

“Mears have consistently failed to abide both by the content and spirit of the agreement from the start and have through this and other actions clearly indicated that they don't have the inclination or will to work with unions on any occasion.”

GMB organiser Gary Palmer said “Local managers failure to not only comply with the current agreement, but to instead look to bully their way to changes as an alternative to working with us instead, is not only unacceptable but has, as joint unions, left us potentially with one choice in reacting strongly if they don't remove the threats.

“We will of course sit and discuss the matter with Mears. However, unfortunately, because we no longer trust local management we would expect commitment in writing from them that they will adhere to existing agreements before we do so.

“Going forward I feel it really is time that the council look to not only cancel the housing repair contract with Mears but to look to take the provision back in house, only then perhaps staff would be respected and treated fairly with their terms and conditions protected."

A new match-making service has been launched to help people wanting to develop their own house find a suitable builder.

The initiative is the result of the Federation of Master Builders (FMB) teaming up with the National Custom & Self Build Association (NaCSBA).

Self-builders can now find an FMB member firm through NaCSBA’s online resource, the self-build portal.

The FMB’s ‘Find a Self-Build Contractor’ service is free to use and draws on a database of over 1,500 local contractors.

FMB chief executive Brian Berry said: “Interest in self-build solutions is growing stronger every day and the government is now putting in place policies which should help more people to realise the vision of building their own home. As this happens, self-builders will need a pool of capable and experienced contractors and a trusted means of finding the right one. That’s why the FMB has created this service and we’re very pleased to have been able to team up with NaCSBA to deliver this through the self-build portal. This is the product of the building industry and self-build representatives working together to facilitate the growth of self and custom build, which will improve the choice available to customers in the new homes market.”

NaCSBA chairman Michael Holmes added: “Around half of all self-builds in the UK are carried out by main contractors on behalf of a private client. This service is the first of its kind to enable self-builders to get in touch with those contractors who can offer them the specialist service they require. It should save self-builders time and effort, is more likely to result in a better 'match' and, of course, it is a great way for FMB members to find the right clients.”

An inquest into the death of the founder of Gloucester-based contractor Markey Construction has ruled that asbestos was to blame.

Hugh Brendan Markey died in hospital on 12^th November 2014, aged 78. An inquest last week determined that he died as a result of exposure to asbestos early in his building career, reports Stroud News & Journal.

Mr Markey began as a self-employed builder in 1963 and built up a business that today, under the management of his sons Paul and Tony, has more than 200 employees.

The inquest heard that Mr Markey had seen a specialist surgeon in 2010 with breathing difficulties. He later suffered a stroke.

County coroner Katy Skerrett said: “It is more likely than not that asbestos exposure was the significant factor causing him to pass.”

Strong output growth was sustained across the UK construction sector during July but delivery times are lengthening and subcontractors are getting harder to find.

Although the pace of expansion moderated slightly from the four-month high recorded in June, growth remains strong. The year-on-year jump in house-building output was the highest seen since November 2013.

The seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) registered 62.4 in July, down slightly from 62.6 in June but above the neutral 50.0 mark for the 15th successive month. The score remains one of the highest seen since the summer of 2007. Anecdotal evidence widely cited resurgent demand for construction projects, especially in the housing sector.

Civil engineering activity also expanded at a sharper pace in July, but commercial construction increased at a slower rate in July than had been seen in June.

Higher levels of construction output were supported by a further steep improvement in new business intakes during July. New orders have now increased in every month since May 2013. Survey respondents linked the latest expansion to favourable domestic economic conditions and greater confidence among clients.

The rate of job creation across the construction sector was the fastest since the survey began in April 1997. Anecdotal evidence attributed rising payrolls numbers to increased workloads and ongoing efforts to boost capacity. In some cases, survey respondents noted that staffing levels had been increased in response to concerns about subcontractor availability. The latest survey indicated a reduction in subcontractor availability for the 13th month running, while rates charged by subcontractors increased at a near-survey record pace.

Construction companies indicated another steep increase in purchasing activity during July, thereby extending the current period of expansion to 14 months. Strong demand for construction materials in turn placed additional pressure on suppliers during July, as highlighted by a steep lengthening of vendors’ delivery times. Survey respondents widely commented on low stocks and capacity shortages at suppliers. Meanwhile, average cost burdens increased sharply in July, with the pace of input price inflation easing only slightly from June’s six-month high.

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Markit senior economist Tim Moore, the author of the Markit/CIPS Construction PMI, said: “July’s figures suggest the UK construction sector is enjoying its strongest cyclical upswing since the global financial crisis, while a new record rise in employment highlights that construction firms are increasingly confident about the sustainability of the upturn.

“All three core categories of construction activity saw historically steep improvements in output levels through July, unsurprisingly led by a resurgent house building sector.

“Overall the survey adds to the view that construction companies have performed impressively so far this summer, which raises the likelihood that the sands of time could wash away the construction weakness seen in the preliminary second quarter GDP release.

“Looking ahead, a pressing concern for construction companies is the availability of materials and suitably skilled labour to support the recent growth streak. Cuts to supplier capacity have ushered in the worst period of input delivery delays since the survey began in 1997, while this summer has also been notable for construction firms reporting near-record increases in rates commanded for subcontracted work.”

David Noble, chief executive of the Chartered Institute of Purchasing & Supply (CIPS), which sponsors the survey, said: “The house-building sector is racing ahead this quarter with the fastest growth in construction of homes for over a decade. The industry as a whole continued its impressive growth, dipping slightly from last month’s high. The boom in house-building also encouraged the fastest acceleration in employment the index has ever seen over its 17 year history. The commercial and civil engineering sectors also pulled their weight with continued growth, to deliver one of the fastest overall increases in output since 2007.

“One concern however, is the strain on supply chains that could become a roadblock to sustained growth in the future. Construction firms reported the sharpest deterioration in the quality of subcontracted work since 1999, which combined with lengthening supplier delivery times could conspire to put the brakes on the sector’s growth. But there’s evidence that firms are starting to look beyond in-demand sub-contractors and instead further boost their own staffing levels, which goes someway to explaining the record rise in employment levels.

“In the short term at least, the outlook for the coming quarter is strong with the level of new orders continuing to rise and confidence for the year ahead growing steadily since June.”

The construction industry will grow by 10.0% over the next two years, according to latest forecasts from the Construction Products Association (CPA).

The association is forecasting that construction output will grow by 4.7% in 2014 and 4.8% in 2015.

Over the next five years, total construction output will rise by 22.2% it says.

Private housing starts are expected to grow by 18.0% this year and 10.0% in 2015, while commercial office construction output should grow by 10.0% this year and 8.0% in 2015;

CPA economics director Dr Noble Francis said: “The forecasts reflect the increasing strength of the sector, though risks remain. We anticipate the recovery will continue through the forecast horizon in 2018 and broaden both across sectors and regions. Overall levels of activity will likely match their 2007 peak in 2017.

“In the short-term, the activity will primarily be led by private housing, infrastructure and commercial. Notably, in the long-term, we expect this activity will be boosted by work on schools and hospitals.

“The private housing sector continues to benefit from the improving economic backdrop and government policy measures, with housing starts expected to grow 18.0% in 2014 and 10.0% in 2015. The pending general election, however, will cast the future of housing policies into doubt. Such uncertainty, together with questions about affordability and higher mortgage repayment costs, will likely subdue private housing growth to 5.0% per year from 2016.

“Commercial, the largest sector, has a greater influence than housing on the overall outlook for the construction industry and should contribute 23.4% growth over the forecast horizon to 2018.

“The offices sub-sector is the primary driver in commercial, and recovery in the sector has been dominated so far by growth in London. Activity in regional markets is starting to pick up, however. During the last 18 months, increased demand and rising rents have been reported in key regional markets such as Manchester, Edinburgh and Birmingham which should feed through to new offices construction from 2015. Therefore, commercial offices output is forecast to rise 10.0% in 2014 and 8.0% in 2015.

“The association anticipates infrastructure output will increase during the forecast period across all key sub-sectors including roads, rail, energy, and water and sewerage. Output is expected to rise 9.2% in 2014 and 7.0% in 2015, primarily due to major projects such as Crossrail and nuclear decommissioning.”

Dr Francis concluded: “This represents the association’s central forecast but there are risks on both the upside and downside. Forecasts continue to be revised up as the UK economy rebalances away from consumer spending and services towards manufacturing. Greater than expected UK economic growth could stimulate even more private sector construction.

“Conversely, concerns regarding house price inflation may lead to the imposition of lending constraints. This, combined with interest rate rises, may have an adverse impact upon effective demand, and consequently, house-building.”

Despite an upturn in UK construction output, Morgan Sindall has yet to find profits any easier to make, the company said today.

Announcing half-year results, chief executive John Morgan said: “For the remainder of 2014, the operating environment for general construction is expected to remain challenging with no easing of pressure on margins.”

Morgan Sindall’s prospects were improved, however, by growth in its urban regeneration business, Muse.

Group revenue was down 2% for the six months to 30 June 2014 to £998m (2013 H1: £1,019m). Adjusted operating profit (excluding intangible amortisation) was down 6% to £15.2m (2013 H1: £16.2m). Reported pre-tax profit for the first half was £14.0m, up from £1.8m last year.

The urban regeneration business contributed £3.5m of operating profit, up from £400,000 last time.

Within the construction & infrastructure division, revenue was down 4% to £567m and adjusted operating profit was down 8% to £5.9m. “The overall trading environment for construction & infrastructure has remained difficult throughout the period,” Mr Morgan said. “The combination of lower margins from work tendered in 2012-13 and cost inflation, both at a time of improving general market activity, has provided some significant on-going challenges particularly in the construction activities.”

The group's committed order book as at 30 June 2014 was £2.7bn, an increase of 14% since the previous year end, driven primarily by growth in the order books of fit-out (up 57%), affordable housing (up 27%) and construction & infrastructure (up 9%).  The regeneration & development pipeline was £3.2bn, an increase on the previous year end of 5%.

Mr Morgan said: "The first half has seen an important shift in the balance of our profits, with an increase in the contribution from the urban regeneration business. This trend is expected to continue into the second half and beyond and reinforces our long-term strategy of focusing on both construction and regeneration activities.

“For the remainder of 2014, the operating environment for general construction is expected to remain challenging with no easing of pressure on margins.  However, with continued positive momentum anticipated within both fit-out and urban regeneration, the group remains on track to deliver results for the full year in line with the board's expectations.

“We are encouraged by the improvement in the quality of our order book reflecting the higher level of activity in the market, which positions us well for the medium to long term."

International ground engineering specialist Keller Group has seen profits and revenue grow by more than 20% in the first half of 2014.

For the six months to 30 June 2014, group revenue was up 22% at £788.2m (2013 H1: £644.6m) and operating profit increased 24% to £35.5m (2013 H1: £28.6m).  At constant currency, and including acquisitions, group revenue increased by 33%.

A charge of £30m has been taken for a contract dispute. This aside, profit before tax was £32.5m for the first half, up 21% on the same period last year.

The £30m provision relates to a dispute on a UK project completed in 2008.  The claims against Keller are the subject of ongoing litigation. 

Businesses in the USA and Australia saw particular improvement.

Chief executive Justin Atkinson said that he and the board “remain optimistic about our long-term prospects”.

Infrastructure services group Renew has agreed the takeover of utilities contractor Forefront Group for £14.8m.

Founded in 1995, Forefront is based in Leigh-on-Sea and operates across southeast England, replacing gas mains under framework agreements with National Grid and Southern Gas Networks.

With 350 employees, Forefront is working on the industry’s 30-year mains replacement programme, replacing more than 150km of iron gas mains pipes a year with polyurethane ones. Forefront specialises in both low and medium pressure outlets up to 48-inch diameter. The business also deals with emergency gas leaks and has a specialised under pressure drilling capability. Forefront also provides a complete reinstatement service and operates its own material recycling facility.

In the year ended 29 March 2013, Forefront’ turned over £26.9m and had an operating profit of £1.7m. For the year to 28 March 2014, revenue was down to £23.3m and the business only broke even as workflow was reduced ahead of the start of a new framework for National Grid. Revenue and margins have now returned to previous levels and Renew expects Forefront to deliver both growth and profits.

Forefront was principally owned by Harwood Capital and associated entities and the company’s founder and chief executive, Bradley Beard. Mr Beard has entered into a new 12 month service contract, which cannot be terminated by either party within the first two years and the whole forefront management team will remain with the business.

Renew chairman Roy Harrison said: “The acquisition of Forefront takes the group into a new sector within the rnergy market and is in line with our strategy of broadening our range of engineering services supporting critical UK infrastructure. As part of the Renew Group, Forefront, which has a leading industry reputation, will continue to develop its strong, independent brand. The gas mains network replacement programme provides Forefront with long term visibility and excellent growth opportunities.”

The acquisition has been funded from Renew’s cash resources and a four-year term loan of £12m provided by HSBC Bank.

Latest revised forecasts from the Construction Industry Training Board (CITB) suggest that 40,280 new recruits to will be needed every year to deliver expected growth and replace those retiring from the industry.

At the start of the year, CITB’s Construction Skills Network (CSN) survey forecasted that on the basis of 2.2% growth in industry output, construction would need 36,000 new recruits a year over the next five years. With growth now predicted to run at 2.9% over the period 2015-19, the predicted number of recruits needed has been raised nearly 12%.

CITB chairman James Wates said: “Skills are the oxygen of the sector and construction needs to invest in its workforce – upskilling those who already work in the industry and attracting new talented recruits to offset those who are due to retire in the next five years."

A resident at a block of flats in Blackpool narrowly avoided serious injury or worse when the second floor walkway he was standing on collapsed, a court has heard.

Resident Andrew Bleasedale had returned to his home at Newby Place in Mereside on 29 May 2012 when he felt the balcony move beneath his feet as he turned the key in his front door. He dived into his flat and looked back to see that the walkway had gone. A gas pipe was also ruptured.

Blackpool Coastal Housing Ltd was prosecuted by the Health & Safety Executive (HSE) on Friday (1^st August 2014) after an investigation found that the company had known the walkways were dangerous for several years, but had failed to act to make them safe.

Preston Crown Court heard that Blackpool Coastal Housing had taken over responsibility for the flats from Blackpool Borough Council in January 2007. The council had previously arranged for a structural engineer to carry out a survey of the walkways after a worker noticed some of the fixings for the handrails had pulled away from the wall.

Further tests identified structural problems with the balconies at Newby Place and two neighbouring blocks of flats, and alerted the council to the need for major repairs.

However, Blackpool Coastal Housing failed to carry out any repairs – despite many of the senior staff who knew about the structural issues transferring to the new organisation, along with relevant files, when it was set up in 2007.

The court was told that the company eventually appointed a structural engineering consultant to design a temporary propping solution for the balconies in September 2008. However, his recommendations were also not implemented.

Instead, in March 2009, temporary scaffolding was erected under some of the balconies on the opposite side to Mr Bleasedale’s flat, although it is unlikely this would have been capable of supporting them if they fell.

Blackpool Coastal Housing eventually started work to replace these balconies in May 2012. During the project, the site manager reported his concerns that all the balconies at Newby Place may be unsafe, but again Blackpool Coastal Housing failed to take any action.

The court also heard that, during the investigation into the incident, the company misled HSE about its knowledge of the structural flaws that led to the collapse, until documents were recovered from as far back as February 2006.

Blackpool Coastal Housing Ltd, of Abingdon Street in Blackpool, was fined £50,000 and ordered to pay £27,821.25 in prosecution costs after pleading guilty to a breach of the Health and Safety at Work etc Act 1974.

HSE inspector Michael Mullen said after the hearing: “The emergency services had to rescue several people from their properties as a result of the collapse, but it’s incredible no one was hurt. We could easily have been dealing with multiple deaths.

“It’s breath-taking that Blackpool Coastal Housing was prepared to take a prolonged gamble with the safety of its tenants at three blocks of flats. The company fell significantly below minimum legal standards for safety, and made a series of bad decisions in its response to the concerns about the balconies over several years.

“This was a potentially life-threatening incident which could and should have been prevented.”

Heather Bryant, Her Majesty’s Chief Inspector of Construction at the Health & Safety Executive, is joining Balfour Beatty.

The gamekeeper-to-poacher move sees Ms Bryant become director of health, safety & environment in Balfour Beatty’s UK and Ireland construction business.

She has only been in post as chief inspector of construction for 15 months, after 26 years with the HSE. She starts at Balfour Beatty at the end of next month.

She will be responsible for a team of nearly 100 safety professionals and be a member of the company’s executive leadership team, reporting to and will report Balfour Beatty Construction Services UK chief executive Nicholas Pollard.

Year-on-year sales of crushed rock aggregates rose 9% in the second quarter of 2014, compared to the same period in 2013.

Data from the Mineral Products Association (MPA) indicates further growth in the construction industry across England, Scotland and Wales during the spring with members seeing a continuation in the rise in the sales that began in mid 2013.

Both asphalt and sand & gravel saw a 4% year-on-year increase during the second quarter of 2014.

Although ready mixed concrete sales fell 3.2% over the period, the decline should be viewed in the context of the very high volumes seen last year, the MPA said, insisting that the underlying market trends remain positive.

Sales of MPA materials generally provide an early indicator of official construction output data. These figures suggest that official construction output figures will show a return to growth for the third quarter of the year after a second quarter slow-down.

Despite continuing growth, aggregates output is still well down on 2006-07 levels. Even with 3% growth trends, markets would not regain pre-recession levels until after 2020, the MPA said.

MPA chief executive Nigel Jackson said: “We are seeing continuing general growth in mineral products markets although, as expected, the speed of underlying growth has slowed from the end of 2013. We believe our figures indicate that the second quarter reduction in construction activity highlighted in the recent GDP announcement is a blip and construction will be positive for the year. If the necessary increase in housing starts can be delivered and promised infrastructure investments are implemented, we should see further improvements in industry markets. But this will of course depend on potential economic headwinds and political uncertainties that lie ahead.

“One issue which MPA members are beginning to raise concerns about, particularly in markets which are seeing strong growth such as sand and gravel aggregates in the southeast, is whether the planning system will be able to deliver the permissions required to meet aggregates demands associated with future housing and development activity. This is an issue the industry and national and local government will have to monitor and manage carefully going forward if supply constraints which could impact on growth are to be avoided.”

The figures below give sales trends by volume of material sold for a consistent sample of Mineral Products Association members comprising 80% of the GB market for crushed rock aggregates, sand & gravel aggregates and asphalt, 60% for ready-mixed concrete and 85% for cement.

% change over same period of previous year

• *Cement refers to all cementitious materials.
• ** In the wake of intervention by the Competition Commission, cement data is now published only on an annual basis

Islington Council has called off its housing repairs contract with Kier, deciding against a three-year extension option, and brought the work back in house.

Kier had been providing repair services to the London Borough of Islington’s 30,000 homes for the past 14 year under a £16.5m a year contract.

A council report concludes that the work could be done better, although not more cheaply, in house.The move is expected to increase costs of delivering the service 24%.

The report said that Kier’s performance had improved but remained “less than optimal”. Performance of ‘jobs done right first time’ and ‘urgent repair completions’ were below target, at 83% against a target of 94%. “Areas of particular concern include voids, where performance by Kier’s subcontractors has been very variable, and Kier’s inability to clear overdue works orders as promised: there are still 580 orders overdue from 2012/13. Despite numerous reassurances this issue has not been brought under control.”

The report continues that: “An in-house option offers the best protection against further deterioration in the market for providing responsive repairs services. In recent years many councils and other housing providers have been hit hard when major contractors go out of business. Islington itself had a narrow escape when Connaught went out of business shortly before it was due to take up a capital investment contract, and some of our new-build has been delayed by the collapse of Rok.”

It further states: “Bringing the service in-house could increase the cost by an estimated £3.9m a year. There would also be extra one-off setting up costs in the region of £2m. One-off costs would include negotiating a series of sub-contracts; acquiring vehicles, plant and equipment and their storage; and developing and implementing IT systems to deliver the jobs.”

However, the report, written by Sean Mclaughlin, corporate director of housing and adult social services, concludes: “In spite of the potential short-to-medium term cost disadvantage of the in-house option, in the long-term it could be to the Council’s financial advantage. A well organised and well managed in-house service could provide better value for money and could reduce the financial risk of volatility in the market – there could be more certainty on the costs to be charged to the council.”

Cllr James Murray, Islington Council's executive member for housing, said: “This is an important milestone for Islington’s council housing. At the same time as building a new generation of council housing we want to provide a high-quality service for our residents.

“Two years ago we brought housing management back in-house – and now our decision to bringing the repairs service in-house too shows how important it is for us to get it right.

“By running the repairs service directly, we can ensure resident satisfaction is a priority over profit. Over time, we want to maximise local employment and apprenticeships, alongside supporting the workforce and reducing dependence on subcontractors.”

A Cambridgeshire company and its director have landed in court after an unsecured scaffold blew over into a street when plastic sheeting acted as a sail.

It fell onto the pavement and road in High Street, Stretham, on 18 April 2013 three days after it was erected in front of a house by Buckden firm Crusaders Scaffolding Ltd and director Gary Driver.

Both parties were prosecuted by the Health & Safety Executive (HSE) after an investigation found the two-storey structure, which was about 11m long and 4.5m high, had not been secured to the property in any way.

Cambridge Magistrates’ Court heard that a large covering of plastic sheeting had been attached to the outside of the scaffold to protect passers-by as the work being carried out on the house involved shot blasting and steam jetting. However, this ultimately acted as a sail that caused it to blow over in the wind.

Crusaders Scaffolding Ltd, registered to High Street, Saffron Walden, Essex, but operating from Great North Road, Buckden, was fined a total of £7,500 and ordered to pay £526 in costs after pleading guilty to two breaches of the Work at Height Regulations 2005 and one of the Health & Safety at Work etc Act 1974.

Gary John Driver, 51, of Hunts End, Buckden, St Neots, was fined £5,000 with £500 costs after also pleading guilty to the same Health & Safety at Work etc Act 1974 offence.

HSE inspector John Berezansky said: “It was extremely fortunate that no-one was working on the scaffold at the time and that no-one or nothing was hit when it fell. This is a busy High Street used by children to get to and from the local school. Had the scaffold fell during the morning or afternoon school run it could have been a different story.

“The scaffold fell well below the required standard. In essence, Crusaders Scaffolding created an unsecured sail that fell over in the wind. Gary Driver was directly involved in the commissioning and construction of the scaffold. The risks associated with scaffolding are well known in the industry and to have not secured the structure was a basic error.”