ISSUE 14 | October 2015
TECHNOLOGY People powered future p18 PROJECT CAREERS Birmingham’s Temple Group’s New Street Charlene Baker station p35 p13
Produced for the industry by the Association for Consultancy and Engineering
Armitt on infrastructure As the Tories embrace his National Infrastructure Commission idea, Sir John Armitt assesses the challenge ahead page 10 MESSAGE FROM THE EDITOR News roundup As Sir John Armitt explains in this month’s Infrastructure Intelligence, for once the two main political parties agree that an independent long term assessment of the UK’s infrastructure needs is worth having. BUSINESS ENERGY Regardless of who spawned the idea of a National Infrastructure Commission the reality is that few in the infrastructure sector disagree - KPMG analysis of the Plans to start building the have ever disagreed – that it is a great idea. national infrastructure £1bn Swansea Bay Tidal Of course, the critical question is how Lord Adonis will run his pipeline has highlighted Lagoon next spring have Commission, and more importantly who he will choose to assist him. a 28% drop in the number been delayed by a year. The Where will he find his “independent body of people, able to make of projects in the pipeline, start date has been moved to intelligent assessment but not be conflicted or disappear into the weeds.” from 3,148 in December 2014 March 2017 because of delays There can be no doubting the scale of his challenge when attempting to 2,262 in August 2015. The in agreeing a strike price with to assess the nation’s infrastructure needs and place them into a total value in the pipeline Government. The promoter, has also fallen, from nearly Tidal Lagoon Power, is asking logical hierarchy amid increasing clamour for attention. And with the £128bn to just under £119bn for a rate higher than wind, Chancellor keen to get a pre-Budget steer on spending priorities for in the same period. solar and nuclear power. critical schemes such as HS3 and the Northern Powerhouse, Crossrail 2 Birmingham New Street’s stunning new look station was and London’s transport needs plus the tricky issues surrounding energy Ninety percent of firms completed with the opening of the Grand Central shopping The Chancellor George supplies and the grid, Adonis has little time to hang around. prefer international complex, a project cited by the Chancellor as an example of Osborne revealed loan Produced for the industry by the Association The task is less about delivery, more about the analysis of need and arbitration to resolve cross how infrastructure can help reshape local economies. Opening guarantees worth £2bn for for Consultancy and Engineering making the case for infrastructure investment. It is about removing the border disputes according of the shopping complex came after client Network Rail the UK’s first new nuclear Infrastructure Intelligence political “see-saw” inherent in past pet-project-decision-making and to a new study published unveiled an iconic new atrium over a huge passenger concourse power plant in 20 years 12 Caxton St, London SW1H 0QL getting to the nub of what will really drive our nation’s economy and by Queen Mary University - five times the size of London Euston’s. The station has been while he was on a tour of T: 020 7222 6557 boost the standard of lives across the UK. And that is hard stuff. of London in partnership rebuilt while trains continued to run as normal for the 170,000 China. The support will be www.infrastructure-intelligence.com But it is a great aspiration and very similar in ambition to that of the with global law firm White passengers a day who use it. Find out about the project and provided by Infrastructure UK & Case. This is an increase the people involved in the Birmingham New Street – How to and is intended to pave the Editor: Antony Oliver, Davies Aviation Commission set up in 2012 by the Coalition government on the last survey in 2006 rebuild a station hub on www.infrastructure-intelligence.com way for a final investment 07710 341082, to cut through the endless indecision over airport expansion. Yet as we [email protected] when the figure was 73%. decision by energy company also read this month, a recommendation doesn’t necessarily guarantee a London and Paris continue to EDF, supported by China Associate editor: Jackie Whitelaw, simple decision. The debate is set to continue for some time yet. be the preferred venues for China Railway Construction leadership for its UK team”. General Nuclear Corporation 07740 740202, So without question all infrastructure eyes will be on the government [email protected] international arbitration. Corporation (CRCC) and The move comes after half and China National Nuclear as it prepares to make its promised post Davies recommendation Mott MacDonald have year results to June 2015 Corporation, later this year. Designer: Aoife O’Connell, decision. Not least as getting this decision right could well set the tone Pell Frischmann, one of signed a Memorandum showed the firm’s pre-tax 07450 415050, for the way future Adonis Commission independent recommendations the largest privately owned of Understanding and are profits fall by 18%, and margin Rolls-Royce has won £100M [email protected] are received down the line. engineering firms, has done seeking major international drop to 3.5% from 4.1%, worth of contracts to supply Commercial director: Sally Devine, a deal with RAG-Siftung construction projects to despite group revenue growth the new nuclear power 07963 934892, Antony Oliver, (Foundation) Investment pursue together. News of the in the same period of 30%. plant at Hinkley Point. [email protected] editor, Infrastructure Intelligence Company which has bought collaboration came while EDF has selected the firm to Other material contributed by: a majority stake in the the Chancellor identified UK Kier Group has reported supply heat exchangers worth Bernadette Ballantyne consultancy. Existing senior projects, including £11.8bn of strong results with revenue £25M. And in partnership management team members HS2 contracts, which would for the year ending 30th with Nuvia, Rolls-Royce will Produced by Victoria Street Capital on Tushar Prabhu and Richard be “opened up” to bidders June 2015 up 14% from the also supply systems to treat behalf of the Association for Consultancy & Barrett will become co-CEOs. including those from China. previous year at £3.4bn. nuclear waste in a contract Engineering, 12 Caxton St, London SW1H 0QL. Contents Dr Wilem Frischmann is Profit increased 19% to £104m. worth £75M. The views expressed in Infrastructure News Roundup 3 This month’s top infrastructure stories stepping down as chairman Dutch design and Acquisition of consultant Intelligence are not necessarily those of the and will take on a new role consultancy business Mouchel which completed on The Department for Energy Airports debate 6 Heathrow’s Andrew McMillan and Gatwick’s Alastair Association for Consultancy & Engineering. as the strategic advisor to the Arcadis has consolidated 8 June has pushed the firm’s and Climate Change has McDermid discuss the post Davies issues Printer: CPG, 9-10 Orchard Business Centre, board. The managing director its global business portfolio construction and services refused Development Sanderson Way, Tonbridge, Kent TN9 1QG. Opinion 8 Comment from Mark Bew, Beth West, Christine of RAG-Stiftung Investment under the single brand order book up to £9.3bn from Consent for the Navitus T 01732 366666, [email protected] Townley and Stephen Hamil Company, Jürgen Wild, will name. The Arcadis name will £6.2bn in 2014. Bay Wind Park close to the 2015 Subscription rates: £80 a year. join the Pell Frischmann replace both the EC Harris Jurassic Coast natural world Cover story 10 Sir John Armitt on infrastructure’s ascendency board as chairman. and Hyder Consulting brands UK contractors are lagging heritage site. The decision Infrastructure Intelligence produces a weekly as the two UK businesses are behind in terms of size and supports the recommendation free newsletter. Sign up at the website: Project Update 13 Birmingham’s New Street station Wates Group has closed completely absorbed into the capability and must focus on made by the Planning www.infrastructure-intelligence.com the deal to buy Shepherd parent company following generating profits to reinvest Inspectorate. The 970MW Technology 18 BST Global Forum: People Power Follow us on twitter @infra_intel Engineering Services (SES) takeovers in 2011 and 2014. in skills and innovation, project was proposed to be Join the Infrastructure Intelligence group EIC Conference 22 Zac Goldsmith and Sadiq Khan head the programme and Shepherd FM including according to Medani Sow, built 13.4 miles off the coast on Linkedin for the EIC Conference on 19 November a number of contracts and Danish engineering UK chief executive and from Bournemouth and 10.9 Risk Management 24 Griffiths & Armour round table finds consultants’ strategic frameworks from consulting business Ramboll chairman of French contractor miles from the western tip approach to risk is now maturing well Shepherd Construction. Wates has appointed Robert Arpe, Bouygues. Speaking at of the Isle of Wight. It would acquires 1200 Shepherd staff have powered 700,000 homes ACE News 28 Advise on business in the Middle East; CEO Awards managing director of its the Construction Industry shortlist revealed; FIDIC Conference update with turnover of around Denmark business to replace Summit, Sow, who joined a year. £300M. Shepherd Group will Steve Canadine as head of the Government’s revamped EIC 31 Matthew Farrow on the green cities agenda retain the reputable Shepherd its UK business. The firm has Construction Leadership Online 32 Best read at www.infrastructure-intelligence.com Construction name and focus given no detailed explanation Council in July, said that CITIES on the remaining parts of for the leadership reshuffle improving their cash position Careers 35 Charlene Baker of Temple Group the business, including the stating simply that it had was “paramount” to UK Sheffield City Region has Portakabin Group. “announced a change of contractors’ future success. agreed a devolution deal
2 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 3 News roundup with Government that will of carbon emissions from a predicts. The 2014 investment construction work. see it vote for a directly new coal fired power station of £14.11bn is predicted to INTERVIEW: Malcolm Walter, COO Bentley Systems elected mayor in 2017. The and safely store them beneath increase to £23.86bn. Rail interconnections. Crossrail region is one of 38 places the North Sea. infrastructure and airports STRUCTURES went as far as to mandate the which submitted proposals to investment will almost tools and while it was great Westminster to take control double by 2025, with growth A landmark new bridge for us it cannot be the norm. of how public money is spent ENVIRONMENT rates of over 6% per annum opened in Reading will [Professionals] will never stop in their area. The Mayor will respectively. create an accessible route using other tools so we had oversee a range of powers High commissioner to India into the town centre for better embrace them. devolved from government Sir James Bevan is taking thousands of pedestrians Software specialist Bentley including responsibility on the job of CEO at the ROADS and cyclists. The 123m cable Systems holds its annual Year You have just launched the over transport budgets and Environment Agency on stay Reading Pedestrian and in Infrastructure conference CONNECT Edition. How strategic planning. 30 November. He is taking Transport Scotland has Cycle Bridge is the result in November having just will this help the market? over from Paul Leinster who announced its preferred of collaboration between launched its new CONNECT The underpinnings of the Plans for a National Infrastructure Commission chaired left the organisation on 25 route option for improving engineers from Peter Brett Edition software suite which CONNECT Edition are that PEOPLE AND CAREERS by former Labour minister Lord Adonis and underpinned September after 17 years. the A82 trunk road between Associates and Design Engine it believes will help move the we should have a common by £26bn of local spending devolved for local councils to Tarbet and Inverarnan Architects. industry beyond BIM. modelling environment. EY has appointed Amanda invest in infrastructure were unveiled by Chancellor George Businesses and governments alongside Loch Lomond Everybody knows the pain Clack as the head of Osborne at the Tory conference. He also promised to “sweep need to plan for catastrophic following extensive surveys Are you seeing a cultural of not having one. But we infrastructure at its advisory away planning rules” to allow more homes to be built. “We are weather events as climate and design development work DIGITAL shift towards BIM? also now have a common practice for UK & Ireland. the builders,” he declared in a triumphant post general election change worsens, UK Energy carried out by the CH2M INFRASTRUCTURE BIM is taking information performance environment She joins EY from PwC, victory speech. Plans for the new National Infrastructure & Climate Change Secretary Fairhurst Joint Venture. The and making it useful in the - and it is becoming clear where she was a partner for Commission are seen as key to driving forward investment in Amber Rudd has warned. preferred route will closely Outgoing Cisco CEO John operation and maintenance that we really need that. over nine years leading the critical national infrastructure. The commission – originally Rudd delivered her message follow the existing road. Next Chambers has said more of the asset – that is where The largest engineering firm’s south east consultancy proposed by Adonis and Sir John Armitt for the Labour Party at the launch of a report stage of design, costing over than one-third of businesses the money will be made firms used to have a fiercely business. EY’s Infrastructure would be “set up in law, free from party arguments, which ‘Climate Change: A Risk £8M is now underway, with today will not survive the and saved so if we can do decentralised model – acquire practice plans to double its works out calmly and dispassionately what the country needs Assessment’ in Beijing, which publication of draft Orders for next 10 years. The only ones that well it is the holy grail businesses and let them get size over the next five years. to build for its future, and holds any Government’s feet to the argues that climate risks must the scheme in 2017. that will survive will turn for me. If we can convince on with it believing that the fire if it fails to deliver,” Osborne said. be assessed alongside risks to their companies into digital, an owner that engineering local market knows best. Professional services firm national security, with a focus WSP Parsons Brinckerhoff techie versions of themselves, content matters to them But the ability to act globally Deloitte has changed on ‘worst case scenarios’. and Arup have picked up and many will fail trying, then we will be selected. But has changed that. It doesn’t its selection process so Dame Zaha Hadid has by the Institution of Civil two transport studies in the he said. “40% of businesses just competing at the tool matter where you are in the recruiters do not know become the first sole female Engineers (ICE) and the China north worth over £1.5M to in this room, unfortunately, level – my structural analysis world any more so you have where candidates went to recipient of the RIBA Royal International Contractors RAIL address some of the biggest will not exist in a meaningful tool versus yours – is a hard to be fiercely centralised school or university in a bid Gold Medal for architecture. Association (CHINCA). road challenges in the North way in 10 years,” he told the fought race. to prevent “unconscious bias” Work to electrify of England. They have been 25,000 attendees at the Cisco Is it a catch up or leap and access more diverse talent. The infrastructure sector Construction skills charity TransPennine and Midland appointed to investigate the customer conference, adding What is driving ahead? must recruit and train some the Construction Youth Mainline railways will options to improve east-west that 70% of companies will infrastructure towards this In our space [this common Government has upped its 100,000 new apprentices Trust has launched a new resume but with the bulk of links between the M6 in “attempt” to go digital, but digitally enabled future? modelling and performance pitch to grab maths and and graduates across all campaign which it hopes will work pushed back to post Cumbria and the A1(M) in only 30% of those that try it The fundamental shift for me environment] is very new physics students as teachers sectors of the industry if the boost the number of young 2019 under plans announced the North East; and major “will be successful.” was when the UK mandated but we are not inventing with top graduates being UK is to meet the challenge of people seeking careers in as part of Sir Peter Hendy’s transport improvements the use of BIM. That made it something new. In car offered up to £30,000 tax free delivering its vital multibillion the built environment. The work to reset Network to alleviate congestion on a global conversation. That manufacturing the idea of to train to teach the subjects. pound infrastructure campaign #notjustforboys Rail’s upgrade programme. the M60 and M62 between WORLD RECORDS was the number one game integrated project teams was investment pipeline, aims, in particular, to Transport Secretary Patrick Trafford and Bury – one of the changer. And then Crossrail solved decades ago. But we A new study released by according to Treasury. In its challenge the misconception McLoughlin paused the busiest stretches of motorway Students from Queen’s said that it was going to have held on to the notion EDF Energy, to mark the new National Infrastructure that construction careers are schemes in June, brought in the country. University Belfast have set build a physical and a virtual that an built asset requires a launch of its #PrettyCurious Plan for Skills report Treasury aimed only at men and will try Hendy in as Network Rail a new world record for railway - no one had ever unique project, in a unique campaign, has found that a also highlighted the need to help more young women chairman and asked him Balfour Beatty Carillion the largest ever Meccano said that before. We built the place with a unique team. third (32%) of girls in the UK for industry to retrain and identify careers options within to review the whole CP5 jv has been announced structure, building a 100ft Crossrail Academy and took aged 11 to 16 don’t think up-skill around 250,000 of its the breadth of the industry. programme after concerns as the third construction bridge over the Clarendon the supply chain through So your challenge is to they are smart enough to existing workforce over the about cost and deliverability. contractor to build the A14 Dock in Belfast. The 600kg it and between us we have help owners care about become a scientist. That’s next decade if it is to meet the Cambridge to Huntingdon structure involved 11000 pieces taught them what it means. assets management? despite science being one of investment challenge. LOW CARBON project after the project of Meccano and was built with That is exactly the the subjects they enjoyed most TRANSPORT was rebid by Highways the support of local contractor Will other owners follow conversation. The degree of (28%) and performed best in Leading engineering bodies Drax has announced it plans England “to get the most McLaughlin and Harvey. Crossrail’s example and receptivity is related to the at school (38%) over the past from China and the UK have to end further investment Global transport from its collaborative delivery work closely with a firm sophistication of the users academic year. signed a deal which will see in the £1bn White Rose infrastructure investment is framework”. The work covers Qatar Railways Company has like Bentley? and what is going on in their employees from Chinese and Carbon Capture & Storage projected to increase at an widening the existing A14 been officially recognised by If you are going to be surrounding environment. FM Conway has appointed UK companies take part in project after completion average annual rate of about from Swavesey to Milton. Guinness World Records for the purveyor of content In the UK it is comparatively former Miller chief executive a special exchange scheme, of current work because of 5% between 2014 and 2025, The initial award is for the the largest number of tunnel management it has to be an easy as it is in much of Chris Webster as a non- to develop new skills and the government’s decision according to analysis released pre-construction phase at a boring machines operating accepted fact that data will the developed world. But executive director. Prior to insight into each country’s to reduce subsidies for by PwC, with the bulk of value of £461,359. Subject to simultaneously in a single come from everywhere. elsewhere we are often his appointment at Miller in infrastructure development. renewable energy. The two spending in rail and airports. the scheme being given the go project. There are 21 at work Our job is to manage that speaking a different language 2010, Webster spent nearly The Employee Exchange year project is looking at the Roads and ports spending ahead the joint venture will on Doha Metro. data well and manage those – it is missionary work. twenty years at Amey. Scheme agreement was signed potential to capture up to 90% will remain static, the firm ultimately deliver £292M of
4 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 5 Opinion Heathrow or Gatwick – the decision draws nearer The assertion that you need four, five, to be environmental and community Heathrow and Gatwick, the range of development at Gatwick? six runways is a bit of a myth. There are constraints. They are not show stoppers. destinations served, and the economic That is a tail wagging the dog argument. plenty of hub airports out there with benefits are to all intents and purposes Transfer passengers today account empty runways and plenty of airports When do you expect a decision? the same. for about 14% of the total and on the with lots of runways that aren’t hubs. When do you need a decision? Commission’s numbers that will drop What you need for a hub airport is a The prime minister said before the end You say you have a better and to 10% or less. Surely your primary series of airlines to fly there and you of the year and that would be good. cheaper option – why? objective should be to make a decision need a demand. With three runways A clear decision would make a big It costs less than half the price of the based on 90% of the market. Logically at Heathrow you get 740,000 flights – difference and then we could get on Heathrow option and for airlines the they should conclude that we both enough to get to 90% of the world’s GDP with it. It is time for us to get on with cost is important. It is better across serve the market but the environmental with a direct flight and that will keep us it. If we get that decision by the end of the whole spectrum that Government impacts are much less severe at Gatwick going for a long while. the year we can have the runway open has had to take into account – serving and we could provide our capacity five by 2025. the market, economic benefits and years earlier. Andrew McMillan, Heathrow Davies says this solution will meet environmental factors. Strategy Director demand to 2040. Do you need a If you don’t get a decision, what The world is watching. Does vision beyond 2040? happens? Could David Cameron realistically this constant debate risk no one Why is expansion at Heathrow the I think we need to have a vision for the Any delay causes more knock on ignore this recommendation? stepping up? best solution to the UK’s aviation next generation to make this stack up. We delay. The problems is that it adds He cannot ignore it and we would I think there is a good chance that they capacity problem? have delayed this for a very long time and to our problem of connectivity – our not want him to. Could government will step up and make a decision. The Top: Gatwick airport The opportunity for us is about plugging this is about getting a great hub airport competitors getting ahead of us – that go against it – yes. But would they go reason we haven’t had a decision is that Bottom: Heathrow airport us into the world economy. London has for the 21st century that will keep us is costing us in the order of £17bn a against it in one fell swoop - maybe Heathrow is just too difficult. been the world’s leading port for 300 going for at least the next generation. year in lost trade so it has that affect. not. Because the Government is open I think the most likely outcome years and we lost that position last year But Howard Davies also talked about to legal challenge in the way that the is that Government will make a he London airport capacity to Dubai – that is a pretty significant Having Davies’ support is one opposition being the irresistible force Commission was not, they have to make decision but there is a chance that problem has perplexed shift. What Davies said was that the thing. Do you think it is going to be that keeps bringing us back to the same sure that their decision is robust and the government will choose, for good T governments for over fifty years. Heathrow option was the best way to politically deliverable? question – that question is still how do evidence based. There will of course be reasons, to play it longer. But even if However, last July the independent plug Britain into that global economy Yes. There is a very wide basis of support we connect London to the world? legal challenges either way on this and the decision is in favour of Heathrow it Airports Commission recommended and that it is worth £200bn in economic and a sense of momentum. Certainly so the question is which legal challenges doesn’t mean that it is going to happen that Heathrow’s north west runway value and 180,000 jobs. But he also there are many powerful people who would be successful. I would argue that because the obstacles remain. option should be built to provide said it was possible to deal with the oppose Heathrow expansion but there legal challenges against a Heathrow additional capacity for the south east by economic and community issues that are also many powerful people that option are more likely to be successful. Does it matter who wins the Mayoral 2030. development brings – with less noise support it. It is very clear that the election in May? In making its recommendation, the and within carbon limits and within air majority of people in the constituencies Could we have development at both Not greatly – they are all against commission said that the Heathrow quality limits. So as long as it is done around Heathrow support expansion – Heathrow and Gatwick? Heathrow. But there is something option selected would give greater right this is a really good option. that is why 100,000 people signed up to The Commission’s position is that there odd about a Government forcing on economic benefit with less local impact support the proposal. is only room to have one and so we Londoners something that Londoners and that Gatwick, while a credible You have the support from the argue that on that basis it should be don’t want. But they have still got to get alternative, would provide extra inter Davies Commission. Is that enough? Government hasn’t yet committed at Gatwick. Could there be a solution through the planning process and tackle Europe connectivity, mainly for holiday The proposal now has very broad based to take action and the London Mayor where for the foreseeable future you air quality, pollution and surface access - flights, and so offer far less benefit to support – there aren’t many things you is against it. Will it go back into the have development at each with neither these are all real world issues. the UK economy. can get CBI and TUC on the same side too difficult basket? providing the full capacity - well it’s As Davies points out in his report, of. There aren’t many things that you Big infrastructure delivery is always open to the Government to decide. So would a Gatwick decision no new full-length runway has been can get chambers of commerce from difficult in a country with a democracy. actually provide extra capacity laid down in the South East of England Lands End to the North of Scotland It takes time to get proposals right and Alastair McDermid, Gatwick Why do we need either? Should we slower because of the inevitable since the 1940s. Other developed and supporting. There aren’t many things to develop a degree of support. But Airport’s Commission Director build in, say, the Midlands instead? planning and legal disputes that developing countries have tackled this that you can get the majority of people when that proposal has been developed We need extra capacity. Why not in the would follow? problem and built infrastructure to who live around the airport to support. we get on with it very well. This is You say Government should Midlands or elsewhere? Well simply No. Not at all. We expect construction keep pace with the growing demands That gives us a moment to do something. more than a London debate – it is about ignore the Davies Commission because the critical mass of demand to start within five years of getting of an expanding aviation market. the UK position in the world. What recommendation and back Gatwick is in the South East. It makes no sense permission. Over the last two and a half years Why do we need another hub? this process has done is to get us to development. Why is Davies wrong? to put the development where there is the evidence was reviewed and the We already have a hub – that is what change our proposals to get them into a This is a debate about what things less demand. Every option has planning So when do you think a Gatwick Airport Commission’s final report was provides the long haul connectivity. But position where the Prime Minister can you attach most importance to and difficulties. It is not easy to deliver a second runway could be open? published with the anticipation that we are slipping behind. We have been back them and take the tough decisions. my reading of the Commission’s final runway anywhere. But it is infinitely 2025 is the shortest time but it could Government would make a decision spoilt for a long time But if that business report is that they have attached no more difficult to deliver a runway at be a year or two after that. But even if a rapidly after. However, for all the clarity goes to Schipol or to Frankfurt or Paris Howard Davies has put some pretty importance to environmental issues. Heathrow –to the point, in my personal third runway at Heathrow is deliverable in the Commission report, it is clear that is their advantage and we will see tough constraints in place not least And those issues that they have attached opinion, where it will never happen. it is not deliverable before about 2030. the debate rages on – and will continue investment and export going with it. a curfew on flights between 11.30 importance to, like the economic And if it is later it could be five or six to do so long after Government makes and 6am. Will your business suffer? benefits, when you look into the The Commission says that there years not one or two years. So there its final decision. Heathrow’s Andrew Davies has ruled out a fourth runway There will still be a business. Davies’ analysis, the conclusions are not borne is still point-to-point capacity is still a five year or more difference McMillan and Gatwick’s Alastair at Heathrow – does that damage approach quite rightly is that you out by their own facts. The volume left in the south east. Does that between the two. That should be McDermid set out their cases. your business model? cannot develop at any price – there has of UK traffic is the same between not undermine that case for important to policy makers.
6 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 7 Opinion
to meet their BIM Level 2 requirement by driverless cars decrease the amount of Mark Bew, UK government Whether you describe it as a mandate or Beth West, commercial Given the quality and robustness of simply a direction of travel, the intention the April 2016 target. data on supply and demand across UK motorway traffic or increase it or see BIM Task Group chair director, HS2 over the last few years has been to And because we have met the April infrastructure, it should be relatively the use of video conferencing impact embed BIM and digital technology into date we now want to continue to drive straight forward to navigate the politics the amount we travel for business? On central government spend so as to lever the quality of data up. It is all very well of prioritisation, shouldn’t it? the supply side, could micro power the market towards behaviour change. pushing data at each other but if that Well, probably not. Although the generation reduce the need for large Life beyond BIM Success is helping the market to do data is rubbish then what is the point? Can a National methodology for developing forecasts scale generating plants or extensive things in consistent ways and using the So the next step must be a data is well understood, accuracy will distribution networks? Level 2 digital economy to transact. BIM Level 2 validation strategy and our new stretch Infrastructure usually be based on asset life remaining All interesting questions to ponder is a stepping stone along the path. target will ensure all departments have relatively static and assuming that but in reality these issues are likely to By helping the client to pull effectively that capability by October 2016. It isn’t Commission behaviours don’t change. be manageable through good scenario through common data procurement really new - we already have plans for This has been one of the major analysis to ensure the robustness methods – and we have put a number of validation and checking of data and in really navigate challenges that we’ve had in modelling of our infrastructure development standards in place to help enable that – the recent release of the BIM Toolkit the ‘too difficult’ the HS2 benefits – our models assume prioritisation is properly tested. then the supply chain would get better at there is a mass of tools to help. behaviours don’t change but we all The biggest question for me is pushing against that common consistent What is new is the realisation basket? intuitively know that they do. more about what the new National procurement ask. just how important this issue is for So that begs the question as to what Infrastructure Commission will And that is what we are starting to the delivery of efficiencies, trust and could change to alter our approach to actually do with this data. And see, the supply base has worked with collaborative behaviours. infrastructure planning? with approximately 75% of the software vendors and we now see The fact is that these tools are now Demand management is one change. country’s infrastructure outside of clients receiving data, using data servers available so we need to develop the Smart metering, for example, could government control, what levers will and enabling services, insights and techniques and pass them down into the see us reducing our electricity or water the Commission have to influence the efficiencies that were impossible even a supply chain. If we don’t start to validate consumption and revenue management regulated utilities to bring forward or few years ago. then we don’t get trust into our data. could also smooth rail demand - delay programmes? The reality is that this mandate has By embracing the BIM level 2 April depending, of course, on the difference We are already seeing skills shortage got people talking about BIM and data. 2016 mandate the UK has taken a leap offered in the fare. While these are risks caused by so many infrastructure We are starting to reduce Capex but forward globally in digital construction unlikely to create massive changes in projects in the pipeline at the same more important we are now having a and data enabled infrastructure. This our consumption, they could be enough time. Smoothing the delivery of these conversation around operational costs. new stretch target will keep us driving to impact prioritisation and timing of projects can only be good for the cost of We didn’t set out on this journey to forward, ahead of every nation facing the infrastructure development. the projects and for employment. not succeed. And I am pleased to say that same challenges of increasing demand New technology is another change The real issue is how to influence all “in-scope” public sector clients are on public infrastructure services and impacting infrastructure, not least investment decisions. In particular, for now green on the HMG register and set reducing budgets. as it prompts behaviour change. Will projects not funded by Government.
With the Government’s deadline for the teams to assemble a team with clearly low expectations to achieve. We’ve Dr Stephen Hamil, director Christine Townley, chief It’s really vital that we encourage use of Level 2 BIM on centrally-funded assigned roles and responsibilities to and recognise young talent coming seen women who have battled against of design & innovation, executive, Construction projects rapidly approaching, those work collaboratively on their Level 2 into the industry, especially those discrimination in the industry and those RIBA Enterprises Youth Trust involved in the design and delivery of BIM projects. who have struggled to get where they who have suffered from many health infrastructure projects find themselves User testing and feedback has been have. It is this talent which is the or family setbacks in their young lives. NBS BIM Toolkit at the ‘sharp end’ of the Building absolutely crucial to the development of The importance future of construction and we have But the one thing they have in common Information Modelling revolution. the Toolkit. In July 2015, a major series a responsibility to ensure that they is resilience and a clear vision of where revealed As the Level 2 package nears of improvements was made, including of celebrating are mentored and developed – as the they want to be in life. It is this which completion, we have moved the NBS updates to the Uniclass 2015 tables and success of the industry depends on it. drives them forward and enables them BIM Toolkit out of its Beta phase to updates to the Level of Information (LOI) construction’s The construction industry’s charity, to make great career progress, which we give a clear signal that it is now fully and Level of Detail (LOD) templates for Construction Youth Trust, has launched celebrate through our awards. operational and ready for use on construction objects. These now number young talent its 5th annual awards this month. The The judges and I are always so projects. Since its launch in April 2015, almost 6,000 spanning the systems Duke of Gloucester’s Young Achievers impressed every year with what these more than 3,000 projects have been and products that concern disciplines Scheme 2016 celebrates this young young people have achieved. Many created using the Toolkit and we’re now ranging from architecture, engineering, talent and offers the winners mentoring have spent time already giving back expecting that number to grow rapidly, building services to landscape design. from industry leaders to enable them to the industry and community by particularly amongst those working on Other new features added included to make an even greater impact in the encouraging other young people to infrastructure projects. the ability to define specific Employer’s years to come. consider a career in construction. These Following the brief from Innovate UK Information Requirements (EIRs) at each We look for exceptional young inspiring young people are the best and the BIM Task Group, we have created stage of a project and refer these back to professionals under 30 working in ambassadors we have and will do more an easy-to-use and free tool that helps the original ‘plain language questions’. construction and the built environment to encourage other new talent into the clients and managers of infrastructure We also incorporated the single most whose achievements should be industry than the traditional careers and built assets comprehensively define requested change, the ability to invite celebrated. But we particularly look services can. information requirements to ensure other members of the project team to for those who have overcome barriers This year we are encouraging their needs are met and better project access the project on the BIM Toolkit. For further information on the of race, gender, social and educational colleagues in the industry to nominate outcomes are guaranteed. The development and improvement awards and how to apply please disadvantage and reward their young people in their companies. By combining a standardised and of the BIM Toolkit is an on-going visit www.constructionyouth.org. determination to succeed. Those interested in applying or digitally-enable classification system process. It has the potential to uk/awards. The winners will be We’ve had some incredibly inspiring nominating someone for The Duke of with a level–of-definition reference transform procurement of buildings and announced at a gala dinner in Spring past winners including young people Gloucester’s Young Achievers Scheme library and digital plan of work tool, the infrastructure by defining who is doing 2016. who have lifted their way out of gangs have until the 6th November 2015 to Toolkit enables design and construction what and when at each stage of projects. and environments where there was apply for these prestigious awards.
8 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 9 Cover Story
strong argument for a politician to be the chair because at the end of the day Interview: Sir John Armitt – this is a political matter. Somebody who is respected and knows his way around the corridors of Parliament must be infrastructure in ascendency good. He is interim because until you have the bill you can only have the Commission in shadow form. So it’s an Sir John Armitt takes over as the 151st President of the Institution of Civil interim Commission with an interim chairman until the bill goes through – it Engineers in November. As the architect of the Labour inspired, now Tory then becomes a proper commission. delivered National Infrastructure Commission, he is upbeat about the on-going What are Lord Adonis’ first drive for UK investment in infrastructure. challenges? First we just sit and wait and see who Andrew is going to appoint [to the aving masterminded the “Having made a Osborne’s decision to support the commission]. But he has to do it quickly successful delivery of the 2012 recommendation after idea of a commission? because he has to complete three short H London Olympics infrastructure, The [Conservatives] never actually term pieces of work to give guidance Sir John Armitt was asked by the Labour three years of reflecting objected to it, but they didn’t [initially] to the chancellor when he is allocating Party in October 2012 to review long on the data that Heathrow come out and support it. However, in resources next March. That is around term infrastructure planning in the UK. the background once or twice ministers HS3 – what do we mean by HS3 and A key recommendation in his report was the better choice, told me that they thought it was a the options to improve connectivity in was the idea of an independent National then clearly what I reasonable idea – a bit clunky perhaps the North; on Crossrail 2 which again Infrastructure Commission to look in structural terms [they said] and so he must decide if it is right and how 25-30 years ahead at the UK’s future would hope is that you could argue that what they have much support Government gives to needs across all significant national ministers will accept the seems to have taken out what they this scheme – because it can’t happen infrastructure and set clear priorities. thought were those “clunky” bits. without central Government support Having initially kept this Labour recommendation.” financially; and the really challenging backed idea at arms’ length, the new You take over as the 151st President decision around energy storage and Tory government has now embraced Sir John Armitt of the Institution of Civil Engineers making the grid more efficient. the concept and placed former Labour in November. Has your involvement minister Lord Andrew Adonis in charge with the ICE helped influence this What do you see as Adonis’ greatest of driving the Commission forward. decision? challenges? As Armitt prepares to take over as It must help I think. There is a pretty I think we always felt that the President of the ICE, Infrastructure regular dialogue between the ICE and fundamental challenge for a Intelligence spoke to him about plans [the Treasury’s] Infrastructure UK. commission was not about deciding for the new Commission, the impending the right projects. It is about getting post Davies commission government So are you going to be on the the political leaders and the public to decision on where to build a new Commission? understand the challenges ahead and runway in the South East and about his that the Commission’s report would I don’t know. Andrew Adonis has got the options and choices of how you can forthcoming year in office at the ICE. be put to Parliament so we need to see to put together his Commission and meet those challenges and start to put Interview by Antony Oliver. the detail to understand exactly what the challenge as always is conflict those into some kind of affordability they mean by that. But to be honest, of interest – which we had on the context – because probably you can’t there was more detail in the initial Airport Commission. The result is that have everything. It is giving the priority The National Infrastructure announcement than I thought there the Commission almost can’t have and a rational menu - one that has not Commission would be. the people that you really want or been dreamt up in a darkened room but might automatically think would be one which has been exposed to a lot of Chancellor George Osborne has Did the Government consult you on it because, whoever they are, they comments rather in the way that the backed your idea for a National prior to the decision? might end up having to give evidence Airports Commission sought views and Infrastructure Commission. Is it No – but they rang me up to let me [to the Commission]. It has to be an opinions. Actually some things which what you hoped for? know it was going to be published. independent body of people who at people oppose they are more likely to It is very good news and seems to be The fact is that we had one political least have sufficient in their background support if they feel they have a bit more 85% of what was in our [draft] bill. We party proposing an independent and knowledge to be able to make control and is actually something which are, of course, yet to see what goes into infrastructure commission which some intelligent assessment but not be is related to them, that it is being done the actual bill – and it will have to have industry supported, and then the other conflicted or disappear into the weeds with them and on their behalf. one as a statutory body. It seems that party said yes we are going to have a either. the primary difference is the nature commission. Well the headline is that of Parliament’s engagement with the for once we have got the main two Would you have picked Andrew The Davies Airports Commission’s report and in the second political parties agreeing that there Adonis to run your commission? Commission phase of the sector infrastructure is merit in having an independent I can’t think of a better person to plans. I was going to run these through long term assessment of the country’s chair it. We used to discuss this in You served on the Davies Airport Parliament but at the moment, it infrastructure needs. the margins – we didn’t really bother Commission which this summer doesn’t appear to be the case. That said, ourselves with who might be on the recommended expansion at Sir John Armitt: ICE’s new President is up beat on infrastructure prospects the statement [by Treasury] did say What do you think promoted commission – but there seems to be a Heathrow. With hindsight was this
10 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 11 Cover Story Project update: Birmingham New Street
commission the right approach? and I will continue to do that. We have responsibility is primarily teaching In the absence of anything else it was also been trying to get an understanding at school through to 18 and ensuring absolutely the right thing to do – what across the Institution that we need to that those young people are able to else could you have done? Ministers broaden the membership and again have access to as good career guidance could have just made a decision but I don’t disagree – it is essential that as is possible - starting at about age 8 then someone would accuse them of the ICE recognises that engineers by to 10 years old. Clearly then stability just making a decision without a full themselves are not the only players that of markets enables employers to have analysis of all the data and information. create these major projects. Particularly confidence to invest in not only training What the Government was asking is at the beginning of projects, economists but in research and development and in can they look at this body of work and planners are potentially more developing new ideas. and be reasonably comforted and important so they need to be brought in. assured that it was about as good in the circumstances as could have been What is the ICE’s role in driving the A great time to be in done? And if it was done over again that future delivery of infrastructure? infrastructure they would be unlikely to get anything The ICE’s role is the same as it has better? You might get a different answer always been. It is an organisation that What are the challenges ahead for but in terms of analysis [they sought] a has an enormous amount of knowledge infrastructure? thorough piece of work by a respected and experience within its members. At the moment Geoffrey Spence (chief group of individuals and so something So it has a responsibility to society to executive of Infrastructure UK) would to make a decision on. It has certainly try to ensure that that knowledge and say there is a £400bn pipeline that they got people thinking about deliverability information is used in a constructive have put into the national infrastructure and about the issues. way – in an essentially factual way – like plan. The bulk is either in energy or Station creation: building a the Commission will use its members transport and the projects in energy A decision is promised by and channels of communication to help are largely reliant on private financing. Government by the end of the inform the public about the challenges So the key to whether those £400bn better Birmingham New Street year. Will they choose Gatwick or and choices around infrastructure and of projects happen is going to be Heathrow? generally help everyone understand consistent energy policy that generates The redevelopment of Birmingham’s New Street station to create a bigger, Having made a recommendation what infrastructure does and the issues the confidence that the private sector after three years of reflecting on the that surround it. can invest. That is one of the biggest brighter gateway to the city demonstrates the power of infrastructure as a data that Heathrow was the better challenges we face. catalyst for growth. choice, then clearly what I would hope is that ministers will accept the Training the next generation Can the new Infrastructure recommendation. Commission play a role in tackling rom the innovative bubble railway was a huge challenge. “It has internal structures which demanded a You are also chairman of the this challenge? shaped atrium that floods the been an incredibly complex build comprehensive programme of surveys Is it more likely that Government training organisation City and I see no reason why the Commission F new station with light, to the whilst keeping the station open and the be commissioned. Asbestos surveys will opt to make no decision on this Guilds. Training the next generation should be fronting up these issues futuristic stainless steel building 170,000 passengers safe who use it every were carried out on a phased basis once controversial project? remains a big issue across and be part of the analysis. I think façade and improved vertical access to day,” says Network Rail project director live services could be fully isolated and I think it would be a tragedy if there infrastructure – are we getting there the Commission should be able to the platforms from 36 new escalators Chris Montgomery. “We built the first access permitted. The surveys identified was no decision. Tragedy might be a bit in terms of tackling skills shortages? comment and bring forward analysis Birmingham New Street station is part of the project in the adjacent car significant quantities of asbestos that strong, but we do not do ourselves any There are a lot of challenges. If you and advise on those issues. Remember everything that a modern city centre park where we removed a whole floor had to be removed prior to commencing good whatsoever as a modern nation if look at the number of graduates it that my original commission was never transport gateway should be. The new to create part of the new station. This demolition works taking a total of we cannot make a decision about where has significantly improved in terms of a delivery proposal – it was an analysis hub is the product of a technically meant taking out tonnes of concrete 60,000 hours. Another technically to put an extra runway – it beggars the number coming out of university and recommendation proposal and complex seven year project by Network over a live railway.” challenging aspect of the second phase belief really. with civil engineering degrees. But you Andrew’s will be the same. There are Rail and its delivery partner and This work had to be meticulously of the project was transferring the equally need to recognise that we have a others who say it should be a delivery principal contractor Mace. “The scale of sequenced to ensure that the station 200 tonne load from the steel framed And so it should be possible to open group of people in responsible positions commission but I have never felt that the works that we have undertaken at remained operational and posed ethylene tetrafluoroethylene (EFTE) a new runway by 2026? that essentially were born between 1946 was appropriate – for a start two thirds New Street is epic and all while keeping no health and safety risk. For the atrium roof onto the existing concrete It should be and it needs to be – and it and 1960 – people who are coming to of our infrastructure is delivered by the station operational,” says Mace demolition of 7500t of concrete Mace station structure. can be achieved if we get a decision in the ends of their careers. So you have the private sector which is going to project director Martyn Woodhouse. implemented an innovative ‘track and The project site ran for 24 hours a the next two or three months. a peak which is going to be retiring be driven by regulators and private “We have faced many challenges along hoyer’ system – a two stage cut-and-lift day 7 days a week and saw up to 3,000 in the next ten years and so there is a sector investment profiles which the way from there being no plans in process involving crane rails, which ran workers on site at peak and included the continuous need to be filling up the aren’t necessarily coincident with existence of the old station to finding the length of the building as the ‘track’ training of 100 apprentices. Phase two President of the Institution of pipeline. Particularly in the south east what Government wants. By and large large quantities of asbestos that needed and a gantry crane acting as the ‘hoyer’. was completed in September 2015. Civil Engineers people talk about a shortage of skills Government can’t make anything to be removed. I am very proud of all our “Once the concrete was safely removed and a significant increase in the cost of happen unless it pays for it –what team and subcontractors involved and the we began to construct the new concourse You take over as ICE President in those skills. business wants is a stable environment way that everyone has worked together to and in April 2013 we closed the old Client: Network Rail November – will you have core [in which to operate]. produce a spectacular station.” station and passengers moved into the Funders: Network Rail, Birmingham themes? So what is the solution? Central to the £750M scheme was new station the next morning,” says City Council, Department for No because the presidential team is I don’t think enough training is So would another, say, 15 years of the creation of a new concourse that is Montgomery. “We then began phase two Business Innovation and Skills, working to three year plans to have taking place in the industry. I accept Tory administration provide that five times the size of the original station which was the really tough part.” Centro and the Department for continuity of objectives, not different that it is perhaps difficult for some consistency? and will enable 300,000 passengers per The demolition of the east station Transport ones for each president. So David others to agree with but I believe The purpose of the commission day, or 52 million passengers per year concourse was challenging due to Main contractor: Mace Balmforth in the last year has been very that fundamentally the responsibility is to ensure that there is 15 years to use the facility. But achieving this the age and condition of the existing Engineer: Atkins focused on the whole innovation debate for training lies with employers and of consistent infrastructure policy as well as the delivery of the Grand 1960s building and the accuracy of ‘as Architects: AZPML and raising the profile of engineering not Government. The Government’s regardless of who is in power. Central retail development over a live built’ drawings for the live services and
12 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 13 Project update: Birmingham New Street Timeline - 7 years of construction The construction team faced a multitude of major challenges when it came to rebuilding the station, but with the use of innovative technology, close collaboration with the supply chain and extensive planning, the complex multi-phased programme was successfully delivered during a seven year transformation programme.
2009 2010 2011 2012
2015
After years of detailed John Lewis was announced as The 22-storey Stephenson Façade construction began on planning, work to transform anchor tenant for the Grand Tower was dismantled the north side of the station. the 1960s station got started. Central shopping centre, and systematically by 1,000 More than two thirds of the Phase One of the project a programme developed to workers over six months to 5,000 panels are unique in kicked off with work to the refurbish all 12 platforms make way for the new John size and have been carefully Demolition works beneath the atrium took just six months. It In September 2015 the station opened creating a new futuristic west side of the station to without reducing any rail Lewis building. arranged to avoid reflecting was originally planned to take a full year, but detailed planning transport hub for Birmingham with a passenger capacity of carve out the new Western services. 10,000 hours of work sunlight at train drivers or and 3D modelling cut this in half. The project really ramped 300,000 per day. New vertical access to the 12 low level platforms concourse, while passengers was taken off site by building obscure signalling. up in the final few months as the retail fit out increased the including 36 new escalators makes the whole station more continued to use the old a new system for power and The new Lamp Block office number of workers on site to 3,000 from its typical level of accessible. The 10,500m2 concourse is five times the size of the station facilities. utilities in modules and building became the first around 1,000 throughout the rest of the programme, with original and the 152,400m2 of new retail space at Grand Central is installing them overnight. BREEAM Excellent building everyone focused on completing the project safely, on time, expected to attract 50 million visitors per annum. on the rail network. and to an exceptional quality.
Completion of the first phase of the station redevelopment, culminating in the transition to the new western concourse. BIRMINGHAM NEW STREET IN NUMBERS 2013 Over 200 volunteers helped guide passengers and help staff adjust to the new areas, including representatives from organisations such as Deaf UK and Age UK. 3,000 418 52 m 13,500t 60,000hrs 24,000m2 construction staff (at peak) sub-programmes produced passengers per year, concrete demolished spent removing asbestos bright new concourse (one master programme) new station capacity 23,000m2 John Lewis store The 100th Birmingham New Street apprentice was taken on within two years of the scheme making a pledge to recruit + 2 5,000 more than 100 apprentices. Installation of the covering for the 100 200 t 152,400m apprentices taken on steel in atrium roof stainless steel panels 2014 new roof began along with the demolition of the two concrete transferred to existing structure make up the new... slabs to create the atrium below using the custom-built “mega- muncher”. New retail space 16,000m2 façade
14 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 15 Project update: Birmingham New Street
Mace senior project manager Paul Dalton on delivering Birmingham New Street station Infrastructure Intelligence asked as senior project manager for the new station Paul Dalton about the challenges and achievements for the construction team.
How complex was it to rebuild the What were the most interesting and station and keep it operational? challenging achievements from a New Street is a highly complex project construction perspective? due to its pivotal location in the UK’s rail zzTransferring 200 tonnes of steel onto network plus the fact that the station the existing concrete structure to had to remain operational throughout form the new roof. the works. New Street handles 150,000 zzDemolishing over 13,500 tonnes of passengers per day and on one day last concrete. Most has been reused. year 200,000 passengers used the station. zz60,000 hours spent removing asbestos Our construction site ran 24 hours a day 7 safely. days a week and saw up to 3,000 workers zzUsing prefabricated elements to on site at peak. There were limited plans speed up construction. Using lean in existence of the old station which construction and BIM make us more posed a significant challenge and there efficient and minimise site time. were issues including large levels of Paul Dalton, Mace Achievements include shortening asbestos in the existing structure. demolition works from 12 to 6 months. Talk us through the key milestones building. By 2012 the construction of zzCommissioning ‘the mega muncher’ on the scheme. the facade had began on the north to crush concrete. After two years of planning we arrived side of the station using 5000 stainless on site in 2009 and began by carving steel panels which have been carefully What are the biggest lessons for the out a new western concourse while arranged to avoid reflecting sunlight at future of this kind of scheme from a passengers continued to use the existing train drivers or obscuring signalling. In Mace perspective? station facilities. The following year April 2013 the new western concourse Plan for a comprehensive programme of John Lewis was announced as the was completed and we started on phase surveys and secure access to areas at the anchor tenant for the Grand Central 2, which we delivered in September. earliest possible time. Design against retail complex and we developed a plan the phasing strategy and create the to refurbish all 12 platforms without How many companies and people environment for collaborative working reducing rail services. did you have to coordinate on this? with the station operational team and During 2011 the 22 storey There were over 60 sub-contractor train operator representatives from the Stephenson Tower was demolished by a suppliers and more than 10,000 workers outset. team of 1000 workers over six months for the duration of the project with up to make way for the new John Lewis to 3000 construction staff at peak.
Birmingham’s new station makes the right impression The multitude of benefits expected to everyone who has helped build this construction jobs created, including emerge from the development project fantastic new station of which they, and over 115 apprenticeships.” have prompted a massive response at all of Birmingham, can be very proud What is more, local property both local and national scales. “The indeed,” he said. experts said that the new station was improvements made at this important At a local level the leader of underpinning commercial property transport hub have made it into a truly Birmingham City Council, Sir Albert investment. “We know from our own impressive building that passengers Bore, said that the scheme was a key conversations with both investors and and the people of Birmingham can use project for the city stimulating growth office occupiers that the infrastructure and enjoy,” said Patrick McLoughlin, and regeneration which with the added improvements, and in particular the secretary of state for transport. creation of Grand Central, has provided investment in New Street station, Chief executive of Network Rail Mark one of the best-connected retail spaces have played a part in their decision Carne summarised the achievement. in the country. making,” said Martin Guest, managing “Rebuilding one of the busiest stations “This is sure to have a catalytic director of the Birmingham office of in the country without impacting on effect on further regeneration of the global property consultants CBRE as he passengers’ journeys has been a major city centre and attracting businesses revealed that the firm expected a record challenge, but I’m extremely proud to to Birmingham,” he said. “The £1bn in commercial property to change say that Network Rail and our partners development has also provided a hands by the end of 2015: “The level of on this project have done just that. gateway to opportunities for many investment activity in Birmingham this That’s a significant achievement for Birmingham people, with over 3,000 year is unprecedented.”
16 Infrastructure Intelligence | October 2015 Technology: BST Global Forum
we’ll lose them to those firms because analysis and communication, and the of the excitement that the virtual design ability to be part of a team. We need all world brings. Our challenge is to ensure of those aspects, people who can talk that civil and structural engineering to clients but people who also want to design is exciting and attractive.” do design as they can apply technology Harbinder Birdi: “Ben’s right. It’s not skills as they develop.” the software, it’s the people. I go into Neil Stirling: “We are always looking schools and talk about our work on for creative, intelligent, engaging Crossrail stations because my fear is people. And it is critical that they can that in 20 years there will be a serious work in a team. Architectural training shortage of architects and engineers doesn’t necessarily lend itself to that want to be involved in major working as a team however. When you infrastructure. You have to remember are learning you are expected to work it can cost £100,000 to qualify as an on your own. But when you step into architect but the starting salary is just practice, you are immediately part of a £28,000. The banking sector and tech team, and that team is part of a bigger companies are industries that pay more team. We want people who can make are and becoming more attractive. the transition.” Headphones off: Interpersonal skills are necessary for building links And London’s too expensive for young people to live. We’ve set up a studio in What is the challenge of technology Manchester, in part because we expect and the tech generation? a brain drain north. Birmingham and All: Headphones! Bristol are likely to find the same Ben Freedman: “We need people to People power effect.” have interpersonal skills. A challenge Michael Walters: “I think it’s running we face is that technology may soon before we can walk. There are so many become a barrier, where graduates leave The craik may be all about the newest technology and the tech generation but new ways to do things that you struggle university understanding technology at the latest BST forum, our group of architects and engineers argued that it is to embed them in the workflow and but not with the interpersonal skills then the technology changes. We necessary to build social links.” human creativity and ability to communicate with clients and the public that haven’t got one thing sorted before Harbinder Birdi: “I tell all my graduates we invest in the next thing. It is very wearing headphones that 90% of what will be the differentiating factor for business. frustrating.” you learn you hear from what’s going on around you! Take them off!” What will business life be like with ourselves as consultants if we are as in be better off with a smaller firm and a Are people with technology skills Michael Walters: “There is a lot the tech generation? control of the data as we need to be. closer relationship.” top of your list to recruit? of emphasis on shared space and Eduardo Niebles: “Whoever owns At Foster, all disciplines work together Eduardo Niebles: “I’d agree. We see a Linda Taylor: “Infrastructure employers collaboration. But you also need the data is going to own the future. in a shared model space, and there is a lot of consolidation in the market but if are going to want to recruit staff who space to think. The challenge too Whether it is contractors, architects significant benefit to our coordination you are a medium sized firm, there is a can use data to help them communicate. is to understand what you do with Top to bottom: Linda Taylor; Steve or engineering consultants, owning as a result.” lot of business going forward. If you are Our job is taking amazing concepts and technology, when you do it and how you Shepard; Ben Freedman; Roger Ridsdill the data – on what was built, how it is Neil Stirling: “I had personal good and niche, the clients will come to translating them into what it actually use it to be more efficient and effective; Smith performing in use for instance - means experience of how advanced contractors you. Just own that data.” means for the people who should be and not try and apply it in the wrong you can drive knowledge and be the are during phase three of Laing benefitting from them. Data captures context.” trusted adviser. There are general O’Rourke’s new headquarters building. Are we ready to deliver in a what people think and gives architects, Henry Pipe: “You can’t assume that consulting firms in the market looking That was transformative for us as a technical world? engineers and clients instant feedback desire to use technology is driven by a The panel to build their market in infrastructure business, being able to see how the Ben Freedman: “If you are all working from the public in response to their desire for efficiency. People are keen and acquire engineering firms and that contractor used data, interpreted it and on one virtual model in the same office, proposals. Being able to understand how to play with 3D printing for instance Mike Walters, managing director, AHR is the proof to me that they understand applied it to projects.” using the same server, then yes. If not, to use technology to enable more people not because it takes a percentage off Ben Freedman, director, MLM Group that data is key.” it’s difficult particularly as the models to participate and how you handle that the bottom line but because it’s a new Linda Taylor, director, Copper Roger Ridsdill Smith: “As construction Is technology driving consolidation get bigger and bigger. Computers interaction will be very important.” tool for creative purposes. This is to be Consultancy professionals we need to control and collaboration? constantly need updating to be fast Roger Ridsdill Smith: “At Foster, encouraged but it has to be managed.” Harbinder Birdi, senior partner, the data across a wide spectrum of Michael Walters: “The trend would enough and fibre connections between engineers contribute to the design Hawkins Brown disciplines and through a series of seem to be towards bringing everything offices are a restriction too. We’ve been process from the very beginning of the How do medium sized businesses Suraj Rana, director, IMC Worldwide design and construction stages. We work together, businesses getting bigger and working in a very collaborative way on project conception. In order to be able handle a future of ever changing Henry Pipe, senior partner, Max in an industry with a lot of separate consolidating so they can offer every projects for years so we are quite nimble to do this, we look for a high level of technology? Fordham consultants and disciplines who all service from design, to building, to and agile with regards to being able technical expertise in the people that Steve Shepard: “A lot of medium sized Neil Stirling, director, 3D Reid interact for just a short time frame on asset management. But it still seems to talk to one another. But the virtual join us. We need to be on the forefront businesses take on technology and the Roger Ridsdill Smith, director, Foster each project compared to other sectors to us that architects remain a trusted world of the model is not working yet.” of our technology and we need to be associated skills and realise they can’t & Partners such as manufacturing. This means the adviser, spending our time building able to deliver the designs that we maintain them. We are seeing more Eduardo Niebles, managing director, data is dispersed, and that is combined relationships to understand what What is the main risk ahead with conceive. I am of the view that the businesses that want to collaborate with international business, BST Global with less investment in data in our is required and present a brief that technology? profession of engineering needs no technology companies rather than have Steve Shepard, project head, BST industry than in others. Right now, my responds. For some bigger projects it Ben Freedman: “The risk is losing embellishment to justify it. we don’t the skills in house. If you only have a Global impression is that contractors are much might be a good thing for clients to go the best people to technology giants need to be called design engineers, or team of a few technology experts, the Antony Oliver, editor, Infrastructure more engaged than a lot of consultants to the one size fits all, we do everything and other engineering sectors such use another profession in our name - risk of one leaving is big for an SME. So Intelligence about having to control data because camp. But if you are not in that space in as software and app developers. just be an engineer, it’s a difficult job to taking away the risk by working with a Jackie Whitelaw, associate editor, it is so essential for them with regards terms of project size, then that may not Technology giants want graduates with do well and it’s fascinating.” technology company can be a benefit for Infrastructure Intelligence to efficiency on site. We have to ask be what you need as a client; you would the same skills as we do. And potentially Ben Freedman: “I look for a skill set of the long term.”
18 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 19
EIC Annual Conference Zac Goldsmith joins Sadiq Khan at EIC conference in November to set out London’s environmental challenge Two leading London Mayoral candidates will debate the environmental way forward for the capital at next month’s Environmental Industries Commission annual conference. utspoken Tory MP and Mayoral Other highlights at this critical post- candidate Zac Goldsmith election forum to discuss the expanding O has joined the line up at environmental agenda include: next month’s annual gathering of zzA keynote presentation about what to environmental industry, politicians and expect from the Paris climate talks, by experts to lead debate on the “Next Five Michael Jacobs, former chief energy Years for the Environmental Industry”. and environment adviser to Gordon Goldsmith joins Sadiq Khan, Labour’s Brown and an adviser to the French newly announced candidate for the May Government on the Paris climate 2016 London mayoral election, for the summit; Sadiq Khan Environmental Industries Commission zzCase studies on innovation and annual conference on 19th November technology in the environmental to kick off the critical debate over how sector to be presented and discussed London can balance vast population – by UK Flood Barriers, Pavegen, Bio growth with its ambitions to be the Bean and Minus7 greenest global city. zz A presentation and panel discussion Goldsmith, who has vowed to stand on greening the infrastructure boom, down as an MP if David Cameron gives a to be led by Matthew Bell, Chief green light for expansion at Heathrow, Executive for the Committee on will address the conference by video. Climate Change Goldsmith will tackle the critical issue Zac Goldsmith of aviation but also explain his views The full conference agenda can be viewed at and potential policies on air quality, www.eic-conference.co.uk. housing, energy and transport issues as the capital manages growth toward 11M Other confirmed speakers and panellists Date: 19 November 2015 population by 2035. include: Venue: The Willis Building, London As Member of Parliament for Tooting Lord Deben, Chair for the Committee on To book: www.eic-conference.co.uk in south London and former shadow Climate Change; spokesman for London, Khan last month Mike Putnam, chief executive, Skanska Event sponsors: defeated Tessa Jowell, former Olympics UK and chair of the Green Construction zzWillis minister and Labour front bencher for Board; zzBeale and Company the party’s candidacy. Laura Sandys, Chair of European zzTarmac He also recently claimed he would be Movement, UK; zzACO Technologies the ‘greenest Mayor’ ever if elected, and Rhian Kelly, Director for Business zzLancaster University is expected to highlight the challenges Environment, CBI; facing the capital and set out his Julia Groves, Director, Trillion Fund; aspirations, as the Labour Party mayoral Harvey Bradshaw, Head of Environment candidate, for greening London’s and Business, Environment Agency; Book your ticket now: economy, creating green jobs and Matthew Spencer, Director, Green EIC Members: 180 + VAT – Book Now tackling air pollution. Alliance Non-Members: £360 + VAT– Book Now He joins an influential gathering of key note speakers at the EIC annual For further details of the event and to register To book contact conference on 19 November including your interest in attending please visit www. Sarah Bassett Rory Stewart, MP for Environment eic-conference.com. Tel: +44 (0)1689 853 867 who is expected to clarify the new Tory [email protected] Government’s post coalition policy www.eic-conference.com. changes.
22 Infrastructure Intelligence | October 2015 Risk management Maturing nicely The business market is much improved, as is the SME consultant’s approach to risk, the latest Infrastructure Intelligence/Griffiths & Armour round table group agreed when it met at its regular haunt, London’s Gherkin building. But they warned that the new culture might only be skin deep. Jackie Whitelaw reports.
Challenges of a growing market For our panel, the answer to the question what is the biggest challenge in a growing market, was saying no to new work. That could be finding the confidence to turn work away or finding a way to do it without offending clients that you want to provide services for at another point when you have the spare capacity. Max Fordham senior partner Henry Pipe summed up the situation. “The challenge is in trying to stave off work to another time. We are keen to retain relationships with people who are very generously offering work that we would love to take on. And we can stretch to a point – an anticipated immediate start often gets delayed for three or four months down the line which gives us time to manage resources. But sometimes you have to say no. It is naïve to think we can keep taking on work and maintain relationships if we don’t have the resources to deliver.” For Alan Baxter managing director Michael Coombs, the market is not so buoyant that workload is unmanageable; rather it is the level of risk firms are being asked to take on that is a concern. “There was a time when the market turned that we were very worried about being totally swamped,” he said. “But I don’t think workload has actually held up at such a high level. What we won’t do is take on jobs where the risks are completely unacceptable. Some clients and project managers seem to think that consultants are there to take on risk and don’t understand the risk-reward equation. But that has to be correct and fair.” Being selective on which projects you choose is the way forward for CampbellReith, according to its senior partner Michael Lawson. “We have moved more into civils rather than pure buildings and structures because we have far The Gherkin played host to the latest G&A round table discussion on risk management greater control over the work and the design. The clients tend to be public
24 Infrastructure Intelligence | October 2015 Risk management
sector, and we are lead consultant. On agree alternative terms as a way round make certain commercial decisions building structures we are tier two or the problem,” he said. without the benefit of an informed three. Design and build contractors in risk perspective but that does not then particular are trying to force far greater Terms and conditions automatically make the contractual risk risk on us and we are trying to avoid it – The consultants all reported themselves equitable or acceptable for others.” especially novation.” much more aware of the potential The private sector is proving more impact on their businesses of onerous Within this environment, can attractive than the public sector for conditions and were more proactive in companies push fees up? BWB chief executive Steve Wooler. “We making sure they were not over exposed “You certainly can price accordingly,” are increasingly going back to working in a growing market when deals done in said Pipe “and start to undo the squeeze. for more private sector developers in the sun could come back to haunt them We have seen fees starting to drift back this market,” he said. “The public sector in a future downturn. Gateway processes up. It’s a very positive move.” work we had was mostly sourced via and review committees were common “But it’s still very difficult, even in contractor frameworks which can be an to all. And when in doubt, they checked this climate and it is not happening very aggressive environment – ‘though not with a lawyer which meant most were much,” Wood responded. “One of the always. Often it’s difficult to get paid, spending more on legal fees. problems is that costs are going up and some demand unreasonable terms, Lawyer Ruth Lawrence, head of contractors prices are coming in way and many are difficult to negotiate insurance at Hill Dickinson, confirmed higher than they were supposed to be with, meaning sometimes you have to the trend. on the cost plan. That can stall the job think carefully whether to take on a “We are getting more queries, so you find yourself hanging around project. As the market has become more whether through Griffiths & Armour waiting to decide on progress. There’s buoyant we have started turning work or directly regarding standard terms no benefit there.” away if the terms are unreasonable. and conditions. The feedback I have is Lawrence sounded a warning that “Most private sector clients are that people have a lot of work but are although the people round the table commercially savvy and we can have looking at T&Cs and are prepared to may have a more mature attitude to grown up conversations on what risk challenge them to make sure the jobs risk and opportunity, drill deep and it we will accept, sensible payment terms are set up correctly,” she said. may not have reached other members and, if appropriate, risk sharing – we Griffiths & Armour’s Berg concurred. of staff. “We work for the full range are often willing to speculate effort in “The number of agreements we review of consultants and big or small, the return for an enhanced fee” in a month has gone up from 500 to reasons why they claim on their PI The overwhelming impression from Top to bottom: Michael Lawson, Michael 650 at the last count,” he said. “They are are the same. People take a chance on the conversation was that firms were Coombs and Paul Wood all bespoke and the vast, vast majority something outside their expertise, or being very careful with what work they contain no limitations on the extent of for the person dealing with the job, it’s took on as industry picks up, something liability. The level of knowledge of risk outside their expertise; or people don’t confirmed by the indemnity insurance “Things go in cycles so is far greater than it was but successful have time; or they accept unreasonable experts at Griffiths & Armour. “People consultants will base decisions on demands from the client. So far I are looking at projects and making ‘go’ we look after our clients informed risk advice.” haven’t seen a change to that.” or ‘no go’ decisions,” said director Paul who would be there for Berg. “There is a definite assessment us in another downturn. How was everyone dealing with the process and our team is working demands? By pushing back was the The panel Left to right: Ruth Lawrence and Simon Seaton-Smith increasingly with firms on particular But sometimes we general answer. aspects of contract terms as well.” can’t deliver or act for “We negotiate fair and reasonable Michael Coombs, managing director, Couch Perry Wilkes director Simon arrangements,” said Alan Baxter’s Alan Baxter them due to unrealistic Coombs. “Sometimes it takes a bit of Seaton-Smith agreed that there was Steve Wooler, managing director, BWB Key to collaboration more method than madness in this timescales or excessive time and if we can’t, we walk away.” Paul Wood, partner, Elliott Wood recovery compared to the past. His M&E If you find yourself in a standoff Partnership Government and private sector clients to insure the project and all its parties consultancy does 60% of its work in risk and would rather say during a contract there is benefit in Simon Seaton-Smith, director, Couch are signed up to the idea that better to encourage resolution to problems the health and education sectors and no than let them down.” toughing it out, said BWB’s Wooler. Perry Wilkes collaboration in the industry will rather than litigation. It is one of manages the blend of activity to dilute “If you stand your ground and invoke Michael Lawson, senior partner, increase productivity and save money. the Cabinet Office trial schemes to the risk. “Things go in cycles so we look the contractual terms, that gains you CampbellReith The challenge of course is to change improve efficiency in construction. after our clients who would be there for Simon Seaton-Smith respect from the contractor,” he said. Ruth Lawrence, head of insurance, the culture of an industry that has “It is clients who have to decide us in another downturn. But sometimes “And that invariably improves working Hill Dickinson evolved on an adversarial model. if they truly want to collaborate,” we can’t deliver or act for them due relationships.” Henry Pipe, senior partner, Max “You can’t change attitudes when said Griffiths & Armour managing to unrealistic timescales or excessive at his firm was to try to get fees up, “I agree entirely,” said Wood. Fordham you get to the point of dealing with director Carl Evans. “The problem at risk and would rather say no than let which was having the additional effect “It all comes down to the original Simon Offredy, director, Sweett Group what is wrong,” said Hill Dickinson this point in time is clients want to them down. One recently offered a large of helping to control workload. “We appointment. You have to say exactly Paul Berg, director, Griffiths & Armour head of insurance Ruth Lawrence. but they (or their advisors) are not project but it needed us to have £20M are trying to get our fees up,” he said, what you will do, and for everything Carl Evans, director, Griffiths & “We have to change things at the prepared to amend the contractual of professional indemnity insurance “and when we are competing that very else you charge. We keep sending vague Armour beginning. But even so, things will agreements to reflect that. That is and we couldn’t do that. We keep often means we lose the job anyway. So appointment terms back.” Peter Campbell, senior policy go awry and people will still look where IPI can contribute to a more our contractor workload balanced at you could say we have our own way of Firms can be put under pressure by manager, ACE for someone to blame, so we need balanced future as it fundamentally around 20% of our turnover, deliberately turning work away!” the client or contractor saying “well Antony Oliver, editor, Infrastructure something like Integrated Project changes the concept of how project because we like to maintain very close Sweett Group director Simon Offredy everyone else has signed”. But as G&A Intelligence Insurance to deal with that.” risk is insured; in the meantime, the and direct contact with end users.” said his company also found itself managing director Carl Evans said: Jackie Whitelaw, associate editor, Integrated Project Insurance has need for effective, robust and proven Paul Wood, director at Elliott Wood offered onerous conditions. “We will “None of us believe that, do we? Of Infrastructure Intelligence been invented by Griffiths & Armour PI solutions are greater than ever.” Partnership, explained that the strategy spend time with receptive clients to course, there are also consultants who
26 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 27 ACE news ‘Be Aware’ is the current guidance Who are the industry’s top for consultant engineers in the bosses? ACE European CEO Middle East Awards shortlist announced Finalists for the 2015 European CEO of the Year The Middle East is full of opportunity, says Nelson Ogunshakin, but there are Awards have been revealed by ACE. Now in its fifth pitfalls for the unwary. ACE is there to offer advice and support. year, the awards recognise and celebrate the efforts fter two weeks touring the controlled investments in social and of industry executives who have demonstrated Middle Eastern region, I have economic infrastructure projects outstanding leadership and business best-practice in A seen first hand the commitment present opportunities for business of professional consultancy firms to the growth. pan-European engineering and consultancy firms. positive development of much needed It is often the young consultants infrastructure projects, and witnessed and engineers that embark from the resulting potential for large scale the UK in great number to work on The names in the frame for top awards this year, a fantastic combination business growth. The international Middle East projects. Because of the to be handed out on 12 November are: of individuals from small and large collaborations that ensure local needs unique challenges of the region and organisations who demonstrate the are met are inspiring. While I see the the prevalence of young professionals, zzJesper Nybo Andersen – Orbicon, best and brightest that European benefits for members engaging with ACE is establishing a regional Progress Denmark senior executives have to offer. Being projects in the region, I must also urge Network Group (PNG). The formation zzPablo Bueno – TYPSA, Spain shortlisted for a European CEO of the companies to be aware of circumstances of the regional PNG is designed to help zzNeil Cooper – MLM, UK Year Award is a testament to having before choosing to engage. people under 35 meet others in the zzDominik Courtin – Basler Hofman, achieved something outstanding in their ACE’s Middle East Group (MEG) region and cultivate positive relations. Switzerland career and I congratulate them all. continues to provide the industry with It will be launched in November this zzGavin English – IMC Worldwide, UK “As chair of judges it will be a very guidance on regional involvement, year. This will, we hope, aid in creating zzGlyn Evans – Geo-Environmental tough task for Flemming Pedersen with the companies involved holding an attractive working environment in Service Ltd, UK the first winner of the European CEO a strong and collaborative role in the the Middle East for young professionals zzKimmo Fischer – SITO Ltd, Finland Award in 2011 and current chairman development of regional infrastructure. “While I see the benefits where they can network, share zzGeoff French – AECOM, UK of the Ramboll Foundation, and his Overall the Middle East market within for members engaging professional knowledge and provide zzSimon Innes – Goodson Associates, UK fellow judges representing organisations our sector is stable, and growing in opportunity to debate business issues zzGeoff Morrow – StructureMode Ltd, UK from across Europe to select the overall a sustainable way. Yet there are still with projects in the affecting the area through series of zzGraham Nicholson – Tony Gee & winners.” hurdles for business. region, I must also urge evening meetings with guest speakers Partners, UK The awards are sponsored by Deltek, The region is still plagued by the from ACE member and non member zzBernard Obika – Roughton Group, UK Coubari, WSP Parsons Brinckerhoff, challenges that have been seen by companies to be aware firms zzNeil Sandberg – Sandberg, UK Matchtech and FIDIC. London’s Deputy established professional consultancy of circumstances before Because of the unique challenges zzPierre Verzat – Systra, France Mayor for Transport Isabel Dedring will firms for years. These include late facing UK based professional consulting zzSteve Wooler – BWB, UK give the keynote speech at the award payments, difficulty managing client choosing to engage” and engineering firms in the Middle event. expectations, contractual labyrinths and East, ACE encourages knowledge (Nominees are pictured far right in order left The awards ceremony is taking the general lack of institutional capacity ACE chief executive Dr Nelson sharing to raise awareness of the to right) place during the European CEO to deliver. Ogunshakin, OBE businesss difficulties. To help members conference “Looking beyond our While these issues may occasionally understand their clients and to be able “Following one of its strongest ever industry for inspiration” where keynote be faced domestically as well, in the to benchmark their own performance years, the European engineering speakers and panellists will include Middle East issues such as late payments in the region, ACE MEG will be running consultancy sector is undergoing a business leaders such as Paul Simpson, stretch far beyond what is seen in other two surveys which will result in paradigm shift in terms of technological Rothschild; Madani Sow – chairman regions. Some see payment delays guidance on regional client relations advancement, customer centricity and and CEO of Bouygues UK; Fidel Saenz greater than 200 days for large scale as well as a regional benchmarking. client expectation,” said ACE chief de Ormijana, chief technical officer, projects, which means consultancy ACE will use such tools to continue to executive Nelson Ogunshakin. Ferrovial Agroman; and Neil MacArthur firms require significant amounts of address challenges and aid members “The construction and economic & – CEO of the Arcadis Group. working capital. This puts a significant sector still contemplating involvement working within the Middle East. social infrastructure service providers strain on companies that are counting in the Middle East or for those just There are exciting opportunities are looking to the future to determine on regular payments to provide for commencing regional involvement, ahead for working in the Middle East which projects are most significant, expenses. these challenges can be a major with EXPO 2020 in Dubai in five years, what investments must be made and The majority of UK based professional inhibitor to business success, and a and the World Cup in Qatar in 2022. But which companies can meet these For details on how to attend the consulting and engineering firms potential deal breaker for those firms I feel it is incumbent on me to continue challenges and deliver exemplary skills conference or the awards ceremony currently working on projects within without sufficient internal resources to to protect as well as advocate for the and expertise where success will be being held on Thursday 12th and the Middle East have learned through make accommodations. interests of the UK based professional largely dependent on how these firms Friday 13th November, please contact experience the best business tactics For those prepared for the potential consulting and engineering firms are managed by their leaders.” Naomi Bari on [email protected] to handle these financial challenges. hurdles of business in the Middle East working in the region, offering current He continued: “A wide variety of or call 020 7222 6557 However for those UK companies in the region, the realignment and better and future support. candidates have made the shortlist
28 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 29 ACE news EIC news
FIDIC – taking the Merit Awards. Philip Jenkins of Atkins was honoured with a prestigious special Wales must agree ACE works hard for SME firms; Cities can lead the green lead in positive FIDIC Award for his contribution to the here are its top 10 activities that industry. infrastructure vision make a difference. agenda change Founded in 1913, the same year as 1. SME Benchmarking – Optimise Nelson Ogunshakin reports ACE, the International Federation of The country needs your business performance City devolution can be a platform for Consulting Engineering known as FIDIC a clear plan that 2. SME Forum & Events – Network & on the FIDIC 2015 has a membership composed of national learn with your peers promoting environmental protection, writes associations of consulting engineers, can be developed in 3. Publications – Valuable business Matthew Farrow conference in Dubai and currently covers 97 countries and industry intelligence around the world. With the mission ‘to collaboration with the 4. Legal Agreements – Ensuring your For those of us interested in rates and poor air quality in city centres. work closely with our stakeholders to business and clients are protected environmental protection there was The biggest boost though to the improve the business climate in which whole community, says 5. Adjudication Services – Expert not a great deal to hold our interest at green city agenda will be the London we operate and enable our members to ACE Wales chair Geoff advice when needed most this week’s Conservative Conference Mayoral election. While Boris Johnson contribute to making the world a better 6. Free Find a Consultant Listing – in Manchester. Liz Truss has clearly has only very belatedly woken up place to live in, now and in the future’, Ogden. The definitive “Who’s Who” for decided that her personal political to the need to be proactive on the FIDIC sets many global standards for Wales will struggle to meet future consultancy and engineering interests are best served by focusing on environment (in his early years at City industry business practices. efficiency targets such as those set out 7. Regional/ Local Authority – Have the farming and rural economy side of Hall implementation of schemes such As such it is vital that FIDIC, as a in the Construction 2025 strategy and your voice heard locally Defra’s activities. However much this as the Low Emission Zone became global voice of engineering consulting, respond to future Welsh needs without 8. Legal Resources – Mitigate may frustrate me it’s a logical enough laxer), Zac Goldsmith starts his mayoral is fully representative of the industry a long term vision set by effective business risk at every step political judgement. campaign on the back of a career within the composition of the board collaboration between business, 9. Complete Pension Trust – And while Transport Secretary campaigning for the environment. and governance structure. This year’s government and civil society, ACE Wales Competitively priced employee Patrick McLoughlin did make a passing In turn Sadiq Khan has responded by FIDIC elections were a step forward chair Geoff Ogden said. benefit package reference to the fall out from the announcing his determination to be the in this regard, with the first Asian With the move towards more 10. Business Helpline – Support Volkswagen emissions scandal, there ‘greenest mayor’ ever if elected. Sadiq President, together with the first Vice devolution, the construction industry’s available at your fingertips wasn’t much either in the fringe events has agreed to speak at the EIC Annual FIDIC President Jae Wan Lee President from the African continent. role as the ‘bellwether’ of the economy or from the platform on issues such as Conference on 19 November (www. New FIDIC President Jae Wan Lee has deep implications for Wales, he water quality, recycling, the broader air eic-conference.co.uk), where he will no from South Korea called for a change said. And during times of economic Get behind Northern quality debate, chemicals policy and the doubt aim to take on Goldsmith at his The 2015 FIDIC conference may years in the FIDIC governance structure to strength Wales needs to focus not only like. own game. With either Goldsmith or from now represent a turning point in reflect the diversity within the industry. on infrastructure and construction Powerhouse but Likewise in the broader media, Khan highly likely to be the next mayor, the organisation’s history, a point of It is hoped that within this revision today, but also upon the future vision while Volkswagen’s woes have given City Hall officials are conscious that modern reflection of the industry as of governance structure it is not only for Welsh infrastructure. beware coming a welcome boost to the air pollution their next boss will enter office having well as strengthen the integrity and regional or gender representation that Ogden was delivering a keynote challenges debate, the prospects for Paris and the made a strong environmental campaign sustainability of the FIDIC brand. The will be discussed. speech at the ‘Policy Forum for Wales: decimation of the renewables support pitch and are no doubt already working conference renewed aspirations and Representation issues are also Infrastructure in Wales – progress, As George Osborne held meetings in structure have attracted most attention. on plans for new green initiatives and hope for the high potential of FIDIC, as key - members of FIDIC are national priorities, and next steps for policy’ China to reveal £24bn in investment What was very prominent in polices which the next incumbent can a chief driver for positive change within associations, yet there is a lack of event in Cardiff. opportunities in the north of England, Manchester though was the city pick up. the industry. national association representatation on “Effective collaboration between ACE members met in Leeds to discuss devolution agenda. This was evident not As always though the environmental The FIDIC 2015 conference took place the FIDIC board which is composed of business, government and civil society is the Northern Powerhouse agenda. just in speeches by cabinet ministers, agenda, especially beyond low-carbon, in Dubai, which is itself not without individuals from companies. a necessary prerequisite if reforms and Chief Executive Nelson Ogunshakin but in the number of fringe events needs constant highlighting by all of significance. Dubai has in the past seven Another main point within the investment are to raise productivity and urged firms to seize opportunities and about city-level policy making. My us if it is to get consistent political and years adopted a cautious and pragmatic new president’s speech was the desire competitiveness,” he said. “This calls for engage with key figures. “We must feeling is that the city agenda can be a media attention. And then who knows development programme, which is to promote the FIDIC brand as being strong public and private leadership, a provide the intellectual thinking to platform to promote the importance of – we might have a party conference principally driven by the needs of Expo representative of best practice, integrity clear vision and effective and ongoing create deliverable plans and bankable environmental protection. This will not season where ministers are queuing up 2020. and sustainability. With the increased communication to build trust between projects,” Ogunshakin said. happen though by default. to talk about the green economy. With projects such as its metro level of international collaboration all parties. It is therefore crucial to “Osborne has made the north his At the EIC our work on smart system extensions, completion of on projects, it is increasingly create mechanisms and fora to promote powerhouse and he says he will make it cities found that only a minority of Matthew Farrow is director general of the master plans for various end user cities, important to ensure that best practice dialogue,” he said. work. We can either criticise him or get smart city initiatives focus on tackling Environmental Industries Commission, the as well as an extended investment in the standards are maintained, and the on side and make things work,” he said. environmental issues. One of our aims leading trade body for environmental firms. World Trade Centre’s recurrent income integrity of contracts or other official Challenges remain, explained Ed in this area is to encourage city leaders generated asset base, the projects representations of FIDIC standards are Cox, director at leading think tank IPPR and smart technology suppliers to www.eic.co.uk under development for Expo 2020 are properly assured around the world. North. “The government has not got the recognise that the smart city agenda can estimated to comprise approximately 30 The 2015 FIDIC elections and the capacity to deal with the demands being provide a new way to tackle entrenched This article first appeared on Business Green billion USD worth of investments made resulting efforts of those elected made of it from combined authorities,” problems such as low urban recycling over the next five years. It is pleasing regarding the revision of the governance he said, noting that 38 submissions that for such projects, there are many structure will be an essential factor devolution had been made to UK based professional consultancy and as to whether FIDIC will truly be the Government in September ahead of the Hear London mayoral candidate Sadiq Khan explain how he plans to be engineering firms involved. representative global voice of the Cities & Local Government Devolution ‘the greenest mayor ever’ at the Enviromental Industries Commission Association for Consultancy & engineering and consultancy industry Bill, which will be read in the House of annual conference. Engineering was represented at the in the future. The potential of FIDIC’s ACE Wales chair Geoff Ogden Commons next month. Date: 19 November 2015-10-11 conference by myself as ACE CEO, influence, if the governance is adjusted zzEd Cox and Nelson Ogunshakin were Venue: The Willis Building, London. Vice-Chair Gavin English, and past appropriately, is immense. As such speaking at the ACE Northern Region To book: www.eic-conference.co.uk chair Geoff French. Among the FIDIC FIDIC is likely to remain one of the key event organised by regional chair Event sponsors: Willis, Beale and Company, Lafarge Tarmac, ACO Technologies, award winners were Arup and IMC drivers for positive change within global Marc Davies of WYG. Lancaster University Worldwide both winning FIDIC project industry standards.
30 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 31 Best read online
Adonis to chair National Infrastructure Commission, Ramboll leadership reshuffle, sustainability needs a reboot and New Treasury skills report All articles can be read in full at www.infrastructure-intelligence.com
TOP STORY: Former Labour transport New NIC seeks CEO Ramboll reshuffle Sustainability NIP delivery needs minister Andrew Adonis to head National needs stirring up more skills Infrastructure Commission
Recruitment of NIC Robert Arpe to lead UK Sustainability rhetoric Delivering the NIP chief executive to start business as Ramboll has become boring and pipeline is only possible immediately. completes reshuffle. we need to stir things up with major recruitment Following the announcement of the The Danish engineering consulting Sustainability has lost some of its and training creation of the National Infrastructure business has appointed Robert Arpe, popularity and fallen down the media The infrastructure sector must recruit Commission chaired by Lord Adonis, managing director of its Denmark agenda and as professionals some of and train some 100,000 new apprentices government published details of the business to replace Steve Canadine as this could be our fault said Mandhy and graduates across all sectors of Andrew Adonis will head a new National Infrastructure Commission remit of the organisation including the head of it UK business. Canadine is Senewiratne, lead sustainability the industry if the UK is to meet the need for a CEO. The commission’s role understood to have left Ramboll last consultant at MWH. We need to challenge of delivering its vital £411bn is to establish a long-term plan and week. The firm has given no detailed revisit how we promote and develop investment pipeline, according to the The announcement from Chancellor with the elected government the NIC assessment of national infrastructure explanation for the leadership reshuffle sustainability. Having attended many Treasury. George Osborne that Lord Adonis is expected to take the politics out of needs early in each parliament, stating simply this week that it had sustainability events it regularly feels In its new National Infrastructure would lead a newly created National infrastructure planning by providing reporting every five years on what a “announced a change of leadership for like each is a repeat of the last. Most Plan for Skills report published this Infrastructure Commission was the talk an independent view on the delivery government is expected to do during its UK team”. have the same strap lines, rhetoric week, Treasury also highlighted the of the Conservative Party Conference of key transport, aviation, housing and this period and updating the reports on “Robert Arpe, managing director and frequently the same outcomes. need for industry to retrain and up-skill and the most read story online this energy generation and supply. a rolling basis. of Ramboll Denmark, will assume the Audiences are often not being inspired around 250,000 of its existing workforce month. In a surprise political shift The concept of a national The NIC will be made up of around position of acting managing director for or challenged and so are seldom over the next decade if it is to meet the Adonis will give up the Labour Whip infrastructure commission was first 25-30 permanent staff, but will have Ramboll UK, replacing Steve Canadine, ‘stirred’, if ever, ‘shaken’ into action. investment challenge. to drive forward the Commission – an floated by incoming ICE president statutory powers to allow it to draw who will be leaving Ramboll,” said the Of course, challenges to conventional “We face challenges to ensure that idea that was originally devised and and architect of the 2012 Olympics’ on the expertise of sectoral regulators, statement. thinking rarely happen if everyone we can build a skilled and productive championed by Sir John Armitt for the infrastructure Sir John Armitt in his and key national delivery bodies such “During his time with Ramboll, Steve agrees with each other. We need to workforce to deliver these plans,” said Labour Party – to identify and speed up independent review for the Labour as Network Rail and Highways England. Canadine has significantly developed invite devil’s advocates, doubters, Jim O’Neill, Commercial Secretary to the delivery of critical transport, energy Party. The idea was a key part of the It will be overseen by a small board, our position in the UK and played an unbelievers and the as yet unconverted Treasury in his foreword to the report. and housing projects. Labour manifesto for the 2015 general appointed by the Chancellor, and able important role in building the design into our discussions. To embed “And it’s not just more skilled people we Osborne also promised to spend a election. to commission research and call for and technical excellence for which sustainability into our DNA, we must need, it’s also a different blend of skills.” further £5bn on infrastructure projects Industry immediately backed evidence from public sector bodies and Ramboll in the UK is renowned,” it challenge mindsets with alternative The National Infrastructure Plan, over the next five years, paid for from the announcement with ACE Chief private sector experts. added. “We thank Steve and wish him ways of thinking and practical examples published in July 2015, contains the sale of “buildings and land that Executive Nelson Ogunshakin The NIC will initially focus on: all the best in the future.” of innovation. details of a £411bn investment across the government doesn’t need now” to saying that the NIC had long been zzplans to transform the connectivity The move comes after half year results For example, in the water sector we 564 projects and programmes from build for the future. “This is all about needed. “The underlying principle of the Northern cities, including high to June 2015 which showed the firm’s have new low-carbon materials like 2015/16 onwards. However, to deliver Britain taking the bold decisions to of non-politicised discussions and speed rail (HS3) first half pre-tax profits fall by 18%, and cement-free concrete, construction this investment, explains the report, provide security and jobs for the next cross-party national consensus will zzpriorities for future large-scale margin drop to 3.5% from 4.1%, despite techniques like virtual trial-holing, low the infrastructure sector will need over generation, to make sure that we have effectively support the completion of investment in London’s public group revenue growth in the same period energy treatment approaches including 250,000 construction and over 150,000 the railways and the roads and the infrastructure projects, vital to the UK’s transport infrastructure of 30%. Problems in the UK business, reed beds for phosphorus removal and engineering workers by 2020. runways that are going to power our economic and social prosperity. The zzhow to ensure investment in energy including a major write down linked pyrolysis for advanced sludge treatment. This, says the report, means investing economy going forward,” said Osborne selection of Lord Adonis as head of the infrastructure can meet future to a Middle East contract, plus tough There is also real time energy in new apprentices, technicians and pointing out that it would be “a National Infrastructure Commission demand in the most efficient way conditions in the oil & gas market were management and radical ideas such as graduates and attracting skilled workers disaster for the country if we stopped is a show of this Government’s The Commission will publish advice highlighted in the firm’s half year results. heat recovery from sewers and using from other industries. The report also building now”. commitment to put the contentions of to the government on these issues Arpe is described by Ramboll as one zebra mussels removed from outfalls points out that a lack of detail on The commission will start political parties aside and allow those before next year’s Budget. It will also of its “most experienced leaders” having as a fuel source for CHP engines. These demand and supply makes it harder for immediately said Osborne and while best suited to drive UK infrastructure begin work on a national infrastructure and been a member of the executive real world innovations need to be workers to move easily between sectors the actual decision-making will remain forward,” he said. assessment, looking ahead to management team of Ramboll Denmark highlighted to keep the arguments and projects, adding to skills shortages requirements for the next 30 years. since 2006. fresh. on key projects and programmes.
32 Infrastructure Intelligence | October 2015 October 2015 | Infrastructure Intelligence 33 Careers
Career path: Charlene Baker, Temple Group A trip to New Zealand introduced planner Charlene Baker to large infrastructure projects, which have formed the focus of her work since she returned to the UK.
Tell us about your job consultancies. I moved to Temple Group My job involves managing and four years ago. coordinating large infrastructure and property projects, focusing on What is special about where you are environment and planning issues. and why did you stay? Using project management skills I aim Temple Group offers me the blend of to deliver projects that are technically large and interesting projects within a robust and satisfy the client in terms of small company setting. This allows me cost, quality and programme. I am also to continue strengthening my project the people manager for the planning skills and provides me an opportunity and sustainability team. to develop other business skills. The year in the University of Illinois, USA. people are great as well! Why did you decide to go into I always enjoyed geography at school engineering/infrastructure? but I wanted to do something that was What keeps you interested? I had been working in a local authority more practical and more orientated to a I really enjoy variety. I can go from as a planning officer and decided to career path at university, and the Urban detailed contract management issues, to take a year off and travel. I went to Studies and Planning course offered that. reviewing reports about noise impacts New Zealand with a work permit and or protected ecological species. Large secured a job with a large engineering Who was your first employer and projects provide different challenges firm working on infrastructure projects. why? and new people to work with. During that time I really enjoyed South Gloucestershire Council as a working on large infrastructure schemes planning officer. Following my first What advice would you give your and have continued to do so since then. job I moved to New Zealand and younger self? spent nearly a year working for an Just keep learning as you go, and not What did you study? engineering consultancy. Since then I to worry about mistakes, they are a I studied Urban Studies and Planning have been in London for seven years, learning opportunity. at Sheffield University, with my second and have worked at two environmental
October 2015 | Infrastructure Intelligence 35