Birmingham’s Curzon Street station worth up to £435m

HS2 has begun the search for a construction team to deliver the design-and-build package for Birmingham’s Curzon Street station worth up to £435m.

The new station, which is set to open in 2026, aims to unlock 36,000 jobs and 4,000 new homes. The contract has an estimated value of between £355m and £435m.

Early works contractors are on the site in the centre of Birmingham preparing for main construction works.

Designed by WSP and Grimshaw Architects, the new Curzon Street station is described as the first new intercity station built in the UK since the 19th century.

Featuring 400 m-long platforms to accommodate the high-speed services, the station will include seven platforms in 2026 when the first phase of HS2 is expected to open.

The station will be fully integrated into Birmingham’s tram network and will offer connections to the wider West Midlands.

The winning construction bidder will take over the design functions from the WSP-Grimshaw team once the scheme has been granted planning permission.

HS2’s CEO at the CN Summit
Mark Thurston will be on stage tomorrow for Day One of the two-day CN Summit. There’s still time to book your place, plus look out for all the Summit coverage and reaction over the coming days.

HS2’s other Birmingham stop – Interchange – will form part of a new gateway station for the region and is part of a larger transport hub serving the West Midlands, Birmingham Airport and the NEC.

Over the weekend the Sunday Times reported that HS2 could be delivered more than a year late and exceed its official £55.7bn budget.

The newspaper reported that negotiations over the main civils contracts for the new lines had come in “several billion pounds” above the £6.6bn budget.

Commenting on the Curzon Street procurement, HS2 chief executive Mark Thurston said: “HS2 is already unlocking new opportunities to create skilled jobs across the West Midlands and, over the next decade, the winner of the Curzon Street contract will go on to build one of the most exciting and high-profile elements of the project.

“We’re looking for the best the construction industry has to offer. Companies that share our commitment to safety, good design, environmental protection and value for money.

“Together we will deliver an iconic new gateway to Birmingham – a building the city, the wider region and the travelling public can be proud to call their own.”

Lendlease Reveal Value of Euston Redevelopment

The redevelopment of the area around HS2’s Euston station could be worth nearly £6bn, the company behind the project’s masterplan has revealed.

Lendlease, which won the master-developer contract in February, said it expected the overall Euston redevelopment covering the area around the station to be worth AUS$10.2bn (£5.8bn) when fully completed.

The value was revealed as part of Lendlease’s results for the year to 30 June 2018, in which the company recorded an estimated global development pipeline of AUS$71.1bn (£40.5bn).

The pipeline was boosted by a number of new developments in the UK, including the Silvertown Quays scheme in east London valued at AUS$6.1bn (£3.47bn) and the High Road West regeneration in Tottenham, worth AUS$2bn (£1.14bn).

Lendlease also won a development role on Milan’s Milano Santa Giulia with a development value of AUS$3.6bn (£2.05bn), taking the total European development pipeline to AUS$29.3bn (£16.68bn).

As part of Lendlease’s focus on the European market, former CEO of international operations and Europe Dan Labbad will now focus solely on Europe.

Lendlease posted global pre-tax profit for the year to 30 June of AUS$1.07bn (£610m), up from AUS$1.01bn (£570m) in the previous 12 months.

Global revenue for the company stood at AUS$16.57m (£9.43bn), down from the previous year’s figure of AUS$16.66bn (£9.48bn).

Lendlease’s UK construction arm saw gross profit hit £48.4m for the year to 30 June 2018, up from £44.8m in the previous 12 months.

The UK business reported EBITDA (earnings before interest, taxes, depreciation and amortisation) of £12.8m on revenue of £389m, giving it an EBITDA margin of 3.3 per cent.

Lendlease Construction managing director for Europe Neil Martin said the improved performance had been driven by more selective bidding in the division.

He said: “Our tight control on costs [… and] our focus on profitability rather than revenue has led to further growth in gross profit for Lendlease’s construction business.

“Our recent focus to manage risk exposure across the portfolio means that a significant amount of our workload is now construction management.

“Achieving this balance between fee and risk work has been key to this year’s positive results.

“Whilst revenue is down, the profit margin is up and this positions us strongly as we continue to deliver on the expanding pipeline.”

Despite the increase in UK profit, Lendlease’s global construction operations saw full-year profit drop 77 per cent from AUS$338m (£192.4m) to AUS$78m (£44.4m).

Much of this was down to the group’s Australian construction business, which was hit by losses of AUS$23.1m (£13.2m) for the year, compared with a profit of AUS$201m (£114.4m) for the previous 12 months.

Five Network Rail Projects to Watch

Network Rail’s CP6 programme is looming into view while several CP5 projects continue to make the headlines.

Midland Main Line

Midland Main Line upgrade_Network Rail_Masts installed between Kettering and Corby

Midland Main Line electrification was first proposed in the 1970s, yet only the London to Bedford section was completed before the scheme was ditched in the following decade.

Interest in electrifying the Midland line gradually returned, driven by its potential to cut costs, reduce emissions and improve train performance. However, in 2009 the then transport secretary Lord Adonis decided to prioritise the Great Western Main Line, with the Midlands Main Line kicked into the long grass once more.

In 2012 Conservative transport secretary Justine Greening announced funding had been released for the scheme as part of a wider £4.2bn “rail revolution”, but the project was paused in July 2015 by her successor Patrick McLoughlin amid reports of missed targets and cost overruns.

After restarting three months later, the project ran into further difficulties in July 2017 when transport secretary Chris Grayling scrapped electrification on the lines to the north of Kettering and Corby. Instead, bi-mode trains – electro-diesel locomotives – will be used on this part of the line to avoid “disruptive” electrification works.

Carillion had been the main contractor for the London to Corby route of the scheme, and its collapse in January saw work grind to a halt. After weeks of uncertainty, it was announced last week that Amey had picked up the contract and Carillion staff working on the project will be transferred to Amey.

Waterloo station

network rail waterloo 1

Waterloo was buckling under the pressure of accommodating for a 100 per cent increase in passenger capacity in the past 20 years, prompting Network Rail to invest £800m to improve and increase capacity at the station.

In April 2016, Aecom, Colas Rail, Mott MacDonald and Skanska scooped a £453m contract to transform Waterloo International Terminal and deliver platform modifications elsewhere in the station, with Skanska’s part of the scheme worth in excess of £165m.

In August last year, platforms one to four were extended to allow train operator South Western to run 10-carriage trains along the tracks from December. Platforms 20-24 will be brought back into use, platforms five and six will be shortened and the end of platforms seven and eight will be narrowed.

The revamped Waterloo International Terminal is due to re-open in December 2018.

TransPennine upgrade

network rail transpennine route upgrade map

This scheme will see journey times across the North from Newcastle, Hull and York towards Manchester and Liverpool via Leeds reduced while enabling more frequent services.

However, the project is currently at a standstill while it awaits the necessary government backing, despite contractors having been announced for the works.

In March 2017 Construction News revealed that an Amey / Bam Nuttall joint venture will deliver works to the west of Leeds, with a Murphy / Siemans alliance overseeing the programme east of Leeds.

Potential infrastructure options for the route have been submitted to the Department for Transport for consideration.

Network Rail chief executive Mark Carne revealed at the CN Summit last year that he expected the TransPennine upgrade to begin in Control Period 6 – the next funding round from 2019 to 2024.

It was confirmed in February this year that Network Rail has earmarked funding for the scheme to be delivered in CP6, though the JVs are still awaiting a precise start date.

Great Western Main Line

network rail western trackworks

The Great Western Main Line’s electrification has been plagued by difficulties since it was first announced in Network Rail’s 2014-18 rail investment programme.

In September 2014, it was estimated that electrifying the route between London and Cardiff would cost £1.6bn. However, Network Rail bosses were hauled in front of MPs on a public accounts committee in November 2015 to explain why the programme’s budget had spiralled, with chief executive Mark Carne admitting it could cost between £2.5bn and £2.8bn.

A year later, four projects within the overall Great Western programme were put on hold until CP6 – namely the electrification of lines between Bristol Parkway and Bristol Temple Meads, Bath and Bristol, Henley and Windsor, and Oxford and Didcot.

Then in July 2017, transport secretary Chris Grayling reduced the scope of the programme by announcing that Cardiff to Swansea would not be electrified.

East West Rail

network rail east west rail phase 2 map 1

This scheme envisages a new railway between Oxford and Cambridge to improve connectivity between the east and west of England.

Three phases have been set out for the work: western, central and eastern.

Section one of the western phase was completed in December 2016, with an updated connection built between Oxford and Bicester village. Section two of the western phase will upgrade and reconstruct routes between Bicester to Bedford, and is currently at consultation stage.

In December 2015 Atkins, Laing O’Rourke and VolkerRail were picked to design and construct the central phase, which covers works between Bedford and Cambridge.

The following summer saw the selection of a preferred geographic corridor for this leg of the route. Possible detailed route options continue to be considered, with construction works potentially starting in the mid-2020s.
Article Source: Construction News

Construction will be the worst affected major industry following Brexit

Construction will be the worst affected major industry following Brexit, according to a study commissioned by mayor of London Sadiq Khan.

The report, produced by data analyst Cambridge Econometrics, looked at the effects on trade, investment and labour on different sectors of the UK under four different Brexit scenarios.

Under the ‘softest’ Brexit scenario, in which the UK leaves the customs union but remains in the single market to retain free movement of goods and people, construction’s contribution to total UK GDP would decline by 3.5 percentage points – the biggest decline out of any sector, the report found.

In the event of the ‘hardest’ form of Brexit – no transition deal, no membership of the customs union or single market, and trading under World Trade Organisation rules, the industry’s contribution would fall by 8.2 percentage points – with only agriculture’s share facing a bigger fall.

Arcadis market intelligence lead Will Waller said: “It confirms a lot of what we all fear.”

Click here!
He added: “We’ve done quite a bit on the ‘hard Brexit’ scenario and for construction it would be really bad news.

“The industry needs to be pushing hard to make the government aware of this.”

Cambridge Econometric attributed the industry’s potential decline to difficulties in acquiring labour; the knock-on effect of a slowdown in the wider economy; exposure to non-tariff barriers, such as quotas and trade licences on imports and exports; and falls in investment.

The data analyst said: “Once the UK leaves the single market, it is likely that the skills shortage could get worse if the new agreements don’t allow for free movement of people.

“This could result in even higher pressures on wages as labour supply contracts, causing construction firms to face considerably higher project costs.”

The report also highlighted that the UK had benefited from €7.8bn of European Investment Bank investment in infrastructure projects, and that SMEs received €666m in European Investment Fund loans during 2015 alone.

The country will lose access to both of these funding sources after Brexit, the study noted, which could “significantly impact the ability of firms to deliver big infrastructure projects such as HS2 and reduce development opportunities for start-ups”.

RICS London policy manager Abdul Choudhury said: ”The UK Government must act promptly to keep EIB funding or introduce a new lender, or lending mechanism, to plug the gap created from the potential loss of EIB funds, particularly for shovel ready projects that are of great importance to London.”

Mr Waller notes that Cambridge Econometics have been forced to make many assumptions in its work, and others are sceptical of its reliability.

CPA economics director professor Noble Francis said: “Forecasting the next 12-18 months is challenging enough given the uncertainties around so Cambridge Econometrics attempting to forecast the effect of a hard Brexit on the economy and construction in London by 2030 is dubious to say the least.

”According to the research, overall impact of a hard Brexit would be a 3% hit to the economy by 2030 but the margins of error must be greater than that.”

Mr Waller also noted that there were threats to construction that were not covered clearly in the report which also needed to be addressed.

“Just disruptions in customs could lead to practical delays in delivery of materials,” he said.

“So we’re all going to have to think about our projects in terms of: do we need to change our procurement, do we need to stockpile materials. And that planning needs to start now.”

He suggested that one possible silver lining could be a decline in commercial construction freeing up the supply chain to put more resources into housebuilding.

The mayor of London said the report emphasised the risks the country faced and called on the government to do more to avoid a hard Brexit.

Mr Khan said: “If the government continues to mishandle the negotiations, we could be heading for a lost decade of lower growth and lower employment.

“The analysis concludes that the harder the Brexit we end up with, the bigger the potential impact on jobs, growth and living standards.

“Ministers are fast running out of time to turn the negotiations around. A ‘no deal’ hard Brexit is still a very real risk – the worst possible scenario.”

Latest Results from Jobs Outlook.

As the year draws to a close and we look forward to the Christmas break it’s a good opportunity for us to reflect on 2017 and what the jobs market will have install for us in 2018.

It has been a very busy year for Intersect Global.
Demand for both permanent and contract staff has been strong and the skill shortages our industry faces have continued to become increasingly apparent and challenging.

As Crossrail’s completion date draws closer other major projects such as HS2 and Hinckley Point will increase in activity and it will be interesting to see how employers cope with their recruitment needs.

Its seems like significant changes are on their way for the contract workforce operating in the private sector, by way of changes to taxation.
Having recently attended a consultation meeting with HMRC on this matter it appears that industry has 18 – 24 months to prepare its self.

Here is a quick summary of the latest results from Jobs Outlook:

53 per cent of employers would have to take action if the recent budget introduces new measures which would increase their staff costs because of changes to taxation such as IR35, and one third of employers would have to increase their prices,

The latest Jobs Outlook survey of 600 employers also shows:
• 42 per cent of respondents expressed concerns that not enough permanent workers would be available to meet their demands and 40 per cent say the same for temporary agency workers.
• 80 per cent of employers say they have none or just a little spare capacity in their organisation to take on more work without new staff.
• 22 per cent of employers still plan to hire additional permanent staff in the next four to 12 months.

We would like to thank all of our clients, candidates and suppliers for their continued support and would like to take this opportunity to wish you all a Merry Christmas and a Happy and Healthy New Year.

PWC Report on EU Workforce Post-Brexit

In a report on post-Brexit economic prospects, PwC highlighted that EU migrants make up around 10 per cent of the UK construction industry’s workforce.
In London, this figure rises to 30 per cent, based on 2016 figures from the Office for National Statistics.
In March, the Royal Institution of Chartered Surveyors warned more than 175,000 construction workers could be lost due to a hard Brexit.
However, a push to attract and train more UK-born workers to construction, which has been advocated by a number of industry leaders, is unlikely to produce the necessary results in time, PwC warned.

“In the long run, efforts could be made to fill skill gaps arising from lower EU migration through enhanced training of UK nationals and automation,” the report said.
“But, realistically, such alternatives are unlikely to make up for any large reduction in EU migrant workers over the next five to 10 years.”
The comments chime with those made by Build UK’s new chairman, Mark Castle, to Construction News in September.
The industry has been looking at new ways to attract UK talent.
In September, Kier launched an initiative committing to staff visiting schools as career ambassadors.
PwC’s report also forecast that overall UK GDP growth will slow to 1.4 per cent next year, down from 1.5 per cent in 2017.
“This reflects slower consumer spending growth, offset by some rise in UK exports and public investment,” the report said.
“But risks to growth are weighted to the downside due to Brexit.”

Government Initiative Required to Ease Skill Shortages

Former home secretary Lord Blunkett has vote to force the government to “pull its finger out” on skills to prevent a labour shortage for the UK’s major infrastructure projects.
Speaking to Construction News, the Labour peer said the government must get colleges and education providers “geared up” to offer the construction skills needed for projects such as HS2 and the expansion of Heathrow.
“If we don’t plan now to get the careers advice in place at schools and get apprentices increased we are going to be in real difficulty,” he said.
On the prospect of Brexit, Lord Blunkett said the situation “adds a real urgency to the immediate future”.
Arcadis has estimated that UK construction could lose up to 215,000 workers by 2020 under a hard Brexit.

The Labour peer added: “Either we get our act together with diversity, with women, with people who have been unemployed for a long time coming back into workforce, or we end up with a massive shortage.”

Lord Blunkett, who also served as education and employment secretary in Tony Blair’s government, warned:
“We could end up putting the work out for other countries, which in my view would be a catastrophic outcome.”
The Labour peer, who is chairman of the Heathrow Skills Taskforce, was speaking to coincide with the launch of an online forum to gather views on the airport’s future education, employment and skills strategy.
Four logistics hubs are expected to be set up by Heathrow across the country to create 180,000 new jobs, including 10,000 apprenticeships, as part of the airport’s proposed expansion.
As part of his role on the taskforce Lord Blunkett has also met leaders from other major infrastructure projects, including Tideway, HS2, Crossrail and Hinkley, to discuss tackling the skills strategy.

“It’s clear we’re all in the same boat trying to plan ahead for major investment and skill shortages,” he said.

“What we hope to do is time the requirement for particular skills in such a way that people can transfer from one major project to another.”

On the government’s new T-Levels, designed to give parity to technical qualifications, Lord Blunkett said they are a “contribution” but added “unless they are actually implanted very quickly they are going to be behind the timeline”.

He added: “Part of the job of the taskforce is to persuade the government to pull its finger out and make this part of the follow through from the industrial strategy green paper.”

Governments blueprint on Immigration Plans – Stark Warning for Construction

The leaked document on the government’s Brexit immigration plan, obtained by The Guardian, is a frighteningly stark reminder of the threat to construction, once we leave the EU.

While the proposals are in a draft form and yet to be discussed by ministers, it is still a timely reminder that the sector cannot afford to waste any time in working out how it would deal with a sharp decline in EU labour.
Let’s remind ourselves of the numbers.

Nearly 10 per cent of the UK’s construction labour force is from the EU, with that figure rising to around a quarter in London. Indeed, Arcadis has estimated that UK construction could lose up to 215,000 workers by 2020 under a hard Brexit.
The leaked document suggests that all but the most highly skilled labour will be deterred from working in the UK.

The question is: what percentage of construction workers will be classified as ‘non-skilled’?
Much of the media coverage of the leaked report has focused on workers in hospitality and agriculture, but undoubtedly there are large swathes of construction that could get caught by this definition.
Whereas an engineer from Estonia may be given some leeway, a labourer from Lithuania could be treated differently – if the government is to get anywhere near hitting its immigration target.
With general labourers, our industry is still highly dependent on that kind of workforce and that’s where we will see pressure, come what may.

Defence secretary Michael Fallon has said people with the “right skills” will still be welcome in the UK.
The challenge then is for the industry to convince the government of the merits of workers employed in the construction sector.

“The government would be wrong to demarcate skilled workers as professionals rather than tradesmen,” Mr Farmer added. “Craft is something that is absolutely about skills; it’s more about working with your hands, but it is a skill.”

The other issue is the timescale for the changes. If the leaked plans become a reality, Britain would end the free movement of labour immediately following its exit from the EU. There is, however, mention in the document of a phased implementation, which would give some breathing space.

Ultimately, the government appears set on the idea that this is an opportunity for British firms to employ more native workers, is this really achievable? Personally I am not so sure.

Report on Jobs May 2017

As we approach the third quarter of 2017 I would like to share some recent findings from June’s edition of the report on Jobs, produced by IHS Markit and the Recruitment Employment Confederation.

At Intersect Global 2017 has so far been a good year for both permanent and contractor placements we have seen a greater demand for staff that the first six months of 2016 across the civil engineering and infrastructure sectors in which we operate.
We have seen increased demand at the more senior management level than in 2016.

The main challenge we face is sadly still very much the same as it has been since I started in this sector 18 years ago; skill shortages right across the board and for both permanent and contract jobs.

The REC’s report seems to mirror our own findings:

Growth for both permanent placement and temp billings across recruitment firms accelerated in May
Demand for staff has reached a 21 month peak
Sharpest drop in permanent candidate numbers since 2015

Commenting on the latest survey results the REC’s Director of Policy says:

“The challenges facing the next government are stark. Demand for staff is the strongest in almost two years, but the number of people available to take those jobs has plummeted
Official data shows unemployment has dropped to the lowest level since 1975 and EU Citizens are leaving the UK in droves. Employers seeking to fill vacancies are running out of options.

Skill shortages are causing headaches in many sectors, The NHS for example is becoming increasingly reliant t on short-term cover to fill gaps on hospital rotas. Meanwhile the shortage of people with cyber security skills is a particular concern in many businesses in the wake of the recent high-profile WannaCry attacks.

Whichever party forms the next government must focus on improving the employability of our young and boosting inclusion for underrepresented groups. Alongside this these figures clearly show that in many sectors we need more not fewer people so that our businesses can grow and public services continue to deliver”

Intersect Global spend most of our week searching for the skills sets our sector so desperately need. I am pleased to say that in recent months we have successfully placed commercial and operational staff with experience outside of traditional civil engineering main contracting with key tier one main contractors.
As an industry we all need to be a little more open minded to what skills sets can cross over to help fill the ever growing gap.

As ever we have a range of live permanent and contract vacancies across the rail,water, highways and infrastructure sectors on our web-site.
Many of the exclusive roles we are working on are not listed therefore if you do not see anything of interest to you please give us a call on 020 76820668 to discuss how we may be able to help you in your next career move.

In the meantime, enjoy the sunny weather this weekend and take care.

Employers using Contractors to Plug Skills Gap

As we approach half way mark of 2017 I thought it would worth sharing some statistics from this month’s JobsOutlook Survey. I hope you find it of interest.

This information is gathered from employers across every sector, what is interesting is that the construction and technical sector continues to rank amongst the highest in terms of skill shortages.

Here are some of the key findings:
89 per cent of employers will increase or maintain their temporary workforce in the next three months.

This is a rise of nine percentage points compared to findings reported in March (80 per cent), suggesting that businesses may become increasingly reliant on temporary workers.

The survey of 606 employers also reveals:   
33 per cent report having no spare workforce capacity within their organisation
46 per cent anticipate a shortage of candidates to fill permanent roles in the next year, with construction, engineering & technical, and health & social care highlighted as particular areas of concern 
In the three months to April, one third (34%) of employers felt that UK economic conditions
were improving. This is compared to 27% of employers who thought the economy was worsening. However, marginally more large employers (250+ employees) felt the economy was worsening (29%) than improving (28%). Large employers were also the least content about making hiring and investment decisions as a consequence.

The UK workforce increased by 122,000 in January–March 2017 compared to October–December 2016. Self-employment decreased by 13,000, with a 14,000 decrease in self-employed part-timers and a 1,000 increase in self-employed full time workers. Temporary employment fell by 31,000 whereas permanent employment rose by 167,000. The UK workforce was 381,000 higher than the same period in the previous year. Year-on-year, permanent employment increased by 350,000, self-employment increased by 82,000, and temporary employment fell by 68,000.

Intersect Global have a range of permanent and contract vacancies, many are listed on our website but not all are.
Please get in touch if you would like us to help you with your next career move or contract assignment. You can call us on 020 76820688 or email your details to info@intersectglobal.co.uk
In the mean time I hope you are enjoying this good weather and make the most of the Bank Holiday weekend when it comes.