ISSUE 09 | April 2015

INTERVIEW Davendra Dabasia of Mace talks leadership page 26 ANALYSIS ACE NEWS Crunch carbon Danny Alexander cut costs on infrastructure page 16 beyond the election page 28

Produced for the industry by the Association for Consultancy and Engineering And we’re off! Highways England’s £11bn five year plan page 12 MESSAGE FROM THE EDITOR News roundup With the UK’s most unpredictable General Election in decades almost upon us, the question remains whether or not the increasingly rosy infrastructure and support infrastructure sector should start to worry? BUSINESS research and the development For on the one hand we continue to see unprecedented levels of of new manufacturing cross party support for the £466bn National Infrastructure Plan, major Austerity is set to end facilities and training. schemes such as HS2 and for devolved powers to drive investment into in 2019, a year earlier areas such as the “Northern Powerhouse”. than originally planned, Chief construction adviser And we see long term spending plans being rolled out across the Chancellor George Osborne Peter Hansford has called highways sector, the rail industry, power, water and communications as promised in his 2105 Budget for evidence on how to the clear link between investment and economic growth is driven home. speech. Infrastructure didn’t unlock demand, improve Yet on the other hand there is no question in anyone’s minds that get a big build up in Osborne’s affordability and increase the post-Election economy will be tough and getting tougher. Not least Commons speech which attractiveness of solid focused on economic successes wall insulation. The Green across the public sector where the scale of cuts will be harsh. and commitment to pay down Construction Board has Add to that the very real possibility that we will not emerge on 8 May the deficit. But he did commit commissioned Hansford to with a single party government and instead see weeks of protracted to investment in the Northern conduct an informal review horse-trading over power and the future does look somewhat uncertain. Powerhouse. Also highlighted into the use and demand for Faced with these prospects, the only real option for the infrastructure was investment in transport A Hybrid Bill to allow delivery of HS2 to Crewe faster the technique in UK buildings. Produced for the industry by the Association sector is to build on the last five years’ success and focus on delivery. and regeneration in London, than planned will be laid before Parliament in the next Written evidence is invited to be for Consultancy and Engineering Looking back, one of the greatest changes - even successes perhaps a renewed commitment to session, Government announced at the launch of the new sent to jane.chelliah-manning@ - seen over this recent period is the shift towards whole life thinking “opening negotiations” on northern transport strategy. The move followed the strong bis.gsi.gov.uk and should be Infrastructure Intelligence around the UK infrastructure needs. the Swansea Bay Barrage recommendation by HS2 chief executive Sir David Higgins in clearly marked ‘Evidence to SWI 12 Caxton St, London SW1H 0QL As we explain in Infrastructure Intelligence this month, there is a and to boosting skills and his Rebalancing Britain report in October last year that the Commission’. Written evidence T: 020 7222 6557 revolution going on in strategic roads, in the way that cities such as productivity. link to Crewe be accelerated to 2027 instead of 2033 “so that must be received by Friday 24 www.infrastructure-intelligence.com the north and Scotland begin to feel the benefit of HS2 as April. London are attempting to break down silo thinking to find investable Balfour Beatty has agreed early as possible”. Government will also look at the case for Editor: Antony Oliver, solutions and in the way the public and private sectors are cooperating. 07710 341082, with the company’s pension accelerating construction of the route upgrade between Leeds [email protected] All good news but there is much to do. Key schemes such as HS2, fund trustees to delay an and Sheffield proposed in the northern transport strategy and TRANSPORT Thames Tideway and the long-awaited A303 Stonehenge tunnel will £85M payment into the allowing it to be used for fast regional train services. HS2 will Associate editor: Jackie Whitelaw, require discussion with the voting public to a level rarely seen before. 07740 740202, scheme which it had agreed also be asked to take forward new line options to Liverpool A David Higgins style [email protected] And with next winter identified as the most critical for the power to do when it sold Parsons and across the Pennines. Government has committeed £6.4M leader is required to head generation sector in terms of keeping the lights on, infrastructure may Brinckerhoff last year. The for studies and another £6.1M in the Highways England roads a new company to build Designer: Aoife O’Connell, not yet be a doorstep issue but certainly looks set to command political new arrangement allows it investment plan. new Thames crossings MPs 07450 415050, to pay the money into the have said. Higgins is chief oconnellaoife.com attention. pension fund over eight years, executive of HS2. Lack of Commercial director: Sally Devine, Antony Oliver, with the first payment of MWH director Andrew with 30-day payment terms, political leadership has led 07963 934892, editor, Infrastructure Intelligence £4M going in next year. In Cowell and URS director including suppliers and sub- to ducking of decisions on [email protected] the interim, the pension fund Richard Coackley will co- contractors. where to build necessary new Other material contributed by: will participate in a Scottish chair the BIM for the water Thames river crossings in Bernadette Ballantyne Limited Partnership into industry conference on 29 Publicly-funded East London according to the which Balfour will transfer PFI April at Aston Villa Football infrastructure projects are Transport Select Committee. Produced by Victoria Street Capital on assets worth £85m. The deal Club in Birmingham. to be branded with a Union Government and the Greater behalf of the Association for Consultancy & Contents Engineering, 12 Caxton St, London SW1H 0QL. is the latest move in new CEO Speakers will include head Jack plaque to recognise London Authority should News roundup 5 This month’s top infrastructure stories Leo Quinn’s recovery plan for of BIM implementation at taxpayers key contribution in establish a special purpose The views expressed in Infrastructure the business. the Cabinet Office Professor funding vital projects. company “with the sole Opinion 6 Comment from Sadie Morgan, Mark Whitby, Isabel Intelligence are not necessarily those of the David Philp, Anglian Water’s objective to deliver a package Dedring, Miles Ashley, Christine Townley, Gerry O’Brien, Association for Consultancy & Engineering. The public must be given a @oneAlliance director Dale of crossings east of Tower Jeannie Edwards and Darryl Murphy. Printer: CPG, 9-10 Orchard Business Centre, louder voice when it comes Evans, John Pride and Derek HOUSING Bridge,” it said in its report on Sanderson Way, Tonbridge, Kent TN9 1QG. to decisions over nationally Bourne of Gee & Company Strategic River Crossings. Online 10 Five of the latest best read stories online T 01732 366666, [email protected] significant infrastructure, and a technology expert view The UK’s challenge to 2015 Subscription rates: £80 a year. Analysis 12 Highways England – modernising the motorways according to a new report by from Tony Andrews – solutions increase the number The UK’s aspiration to create environmental lobby group executive, asset management of new and affordable Europe’s first commercial Infrastructure Intelligence produces a free Briefing 16 Crunch carbon: cut cost the Green Alliance. A new for Bentley Systems UK. homes built each year spaceport took a step newsletter three times a week. Sign up at the independent so-called Citizen has received a boost with forward this week after the website: Briefing 18 Anglian Water on carbon reduction Voice was, it said, vital to Companies paying suppliers the award of a £22.1M Civil Aviation Authority www.infrastructure-intelligence.com Event 20 ACE International Conference coming soon ensure a “rich debate” over later than 60 days after government grant to a Laing (CAA) shortlisted six possible Follow us on twitter @infra_intel infrastructure need and to invoice without being O’Rourke led consortium locations. Shortlisted sites Join the Infrastructure Intelligence group Interview 26 Davendra Dabasia of Mace provide “a well resourced able to prove exceptional to boost investment on to be taken forward include on Linkedin source of engagement circumstances are to be off-site manufacturing. The Campbeltown, Glasgow Planning 22 London in 2050 expertise”. The Green blackballed from the Department for Business Prestwick and Stornoway Careers 24 Insight from the Careers Hub Alliance report “Opening up Prompt Payment Code. The Innovation and Skills grant in Scotland, plus Newquay infrastructure planning” also move follows legislation for is part of its Advanced in England and Llanbedr ACE 28 Danny Alexander at the National Conference, the future called for the creation of a the new Public Contracts Manufacturing Supply Chain in Wales. In addition RAF NIPSEF and new ACE Northern Region new “civic society advisory Regulations which came into Initiative and will help to Leuchars near Fife, on the EIC 31 Housing land is a core priority council” to provide a more force in March requiring fund a £104M project for the east coast of Scotland, was evidence based assessment of every business in the public advanced manufacturing also confirmed as a potential needs. sector supply chain to comply of homes, buildings and temporary facility, however,

2 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 3 News roundup two other RAF stations in written response to a question programme of improvement Large firms will have to Scotland at Lossiemouth and by Beaconsfield MP Dominic and investment works. The reveal differences between Kinloss were ruled out for Grieve. It was expected that decision followed criticism average pay for male and operational reasons. a final decision over this link of the Christmas engineering female workers under a would be held until after the work overruns when Carne change to a law passing Davies Airport Commission remained at home in through Parliament. INTERNATIONAL reported. However, Cornwall as passenger chaos Firms with more than 250 McLoughlin said: “I would gripped major London employees that don›t comply Restrictions on the practice now like to make clear that terminals at Kings Cross with the new rules could face of foreign engineers in we do not intend to build the and Paddington. This Easter fines of up to £5,000. Malaysia have been relaxed spur as part of Phase 1 or 2 of both he and Paonessa were following lobbying from the the HS2 scheme.” due to remain in and around British High Commission London to oversee activities ROADS and other business groups. Stuart Westgate has been when 14,000 workers were Amendments to the appointed programme scheduled to carry out Government is providing Registration of Engineers Act Publicly funded infrastructure plans will survive the election development director upgrades. Three consortia of contractors who will be constructing £350,000 of funding to are due to come into force in chief secretary to the Treasury Danny Alexander said at (internal sponsor) for HS2. the 25km Thames Tideway Tunnel have been named as the Greater Manchester June this year and for the first the ACE National Conference. Publicly funded investment Reporting directly to CEO, Orders have gone in for the preferred bidders. Final contracts cannot be awarded until Combined Authority for a time will allow professional in the latest National Infrastructure Plan should be seen as a Simon Kirby, he will lead two tunnel boring machines the summer when investors who will finance and deliver the study into a new Stockport or graduate engineers of any firm commitment and will happen, he told the audience. “It development of the new for the £1bn Northern project are announced. The tunnel winners are: BMB JV (Joint bypass. This funding is nationality to register with the is fundamental that long term decisions have to go beyond north-south rail line and Line extension. London Venture of BAM Nuttall Ltd, Morgan Sindall Plc and Balfour the latest stage of the Malaysian Board of Engineers political cycles. So if something in the NIP is publicly funded provide an important link Underground has picked Beatty Group Limited) for the West contract, from Acton implementation of the South and set up a local engineering then it is a firm commitment and will happen, all the way up between HS2 and other French firm NFM technologies Storm Tanks to Carnwarth Road largely in London Clay: FLO East Manchester Multi Modal consultancy business. The to 2021, and not just by the next government but the one after” transport bodies. Westgate to supply the machines to JV (Joint Venture of Ferrovial Agroman UK Ltd, Laing O’Rourke Strategy. change comes after several he said. Alexander highlighted five key priorities for the next joins HS2 from KPMG where the Ferrovial Agroman Laing Construction) for the Central contract from Carnwath Road to years of pressure by UK phase of infrastructure investment which included focusing on he spent four years as director O’Rourke joint venture by Blackfriars Bridge in Thanet Sands and other groups; and CVB Latest ‘Road Traffic Forecasts businesses and efforts by the environment, skills, devolution, and the much longer term. He of major projects advisory. summer 2016. JV (Joint Venture of Costain, Vinci Construction Grands Projects, 2015’ predict that levels ACE’s International Business was also adamant that the UK should remain within Europe and HS2 has also appointed former Bachy Soletanche) for the East contract from Blackfriars Bridge of traffic will increase on Group (IBG) to help firms take guide infrastructure investment across the European Community Civil Aviation chair and Crossrail’s 1000t tunnel to Beckton in chalk. motorways and major advantage of the growing (see story page p28). Housing Finance Corporation machine Victoria has broken roads by up to 60% in 2040 opportunities in the Malaysian chair Roger Mountford as a into Liverpool Street station compared with 2010 levels. infrastructure market. non executive director. marking construction AIRPORTS expand Gatwick would require For principal roads the will be the second power plant 10 years of the scheme. The of 40km of the project’s the airport’s debt levels to increase from 2010 to 2040 of its type and we think this delivery partner will take 42km of train tunnel which Arguments that rise ten-fold and see user could be as high as 51% and ENERGY new deal signals an industry on the management and RAIL finishes this spring. Victoria construction of new runway charges double, the ITC said, for minor roads the prediction shift towards similar types of coordination of engineering now has under 750m to bore capacity at Heathrow or adding that while maintaining is up to 54%. Car ownership is Hinkley C nuclear power projects moving forward,” said and environmental design Investing in a world leading before arriving at Farringdon. Gatwick to increase hub the business under these predicted to increase from 25 station in Somerset is MWH operations director Ian development by separate digital railway holds Ahead of Victoria, her sister airport capacity will benefit conditions is achievable, million in 2010 to 35 million the subject of a new legal Miller. The project has been design organisations, and the key tackling the UK machine, Elizabeth has the whole UK economy, are it would bring significant in 2040, an increase of 42%. challenge. A German energy developed by Cogen (formerly support the management of rail network’s on-going already started her final dependent on sufficient slots market uncertainty compared co-operative founded by Carbonarius) and Balfour the programme of ECI delivery congestion, reliability, journey from Liverpool Street for flights to and from smaller to investment at Heathrow. The new headquarters of environmental lobby group Beatty, with investment contracts. The promoter is also safety and escalating cost to Farringdon and her arrival airports, the Commons Highways England - the Greenpeace is to launch legal partners Noy Infrastructure looking for enabling works problems, according to will link the Crossrail tunnels Transport Committee said in company that will run action against the European & Energy Investment Fund contractors for £900M of work Network Rail chief executive for the first time. its report on Smaller Airports. PEOPLE AND CAREERS motorways and major A Commission saying it should and Equitix MA Infrastructure spread over three lots along Mark Carne. Using digital roads – has been opened in not have given approval to the Fund who will each invest the route. in-cab signalling technology Also at Crossrail Liverpool PwC has been appointed to Employers are to develop Guildford, Surrey by Transport strike price deal which could £17.2M. could, he said, see capacity in Street, archaeologists have review the process so far on an apprenticeship for civil Secretary Patrick McLoughlin. be seen as a subsidy. Austria - Atkins has won a four year urban areas instantly boosted begun excavating around decisions about the future of engineering technicians The new company replaced which opposes nuclear power Tidal Lagoon Power – contract to provide Building by up to 40%, signals passed 3000 skeletons from the Manston Airport, Transport following government the Highways Agency on 1 - also signalled it will launch promoter of Swansea Information Modelling at danger cut by 80%, signal Bedlam burial ground used Minister John Hayes confirmation that the skill April and will be its own legal challenge against scheme, has confirmed (BIM) technical services failures cut by 30%, trains during the period of the announced. The appointment set would be part of the responsible for delivering the project, arguing that that early feasibility and to HS2. The contract will running faster and more Great Plague in 1665. Tests of PwC is part of the Trailblazer programme. At the more than £15 billion of subsidies should be restricted engagement work is underway include professional support efficiently while passengers on excavated plague victims government’s commitment same time approval was given investment by 2021. to renewable energy sources. relating to the delivery of including BIM educational benefit from enhanced will further understanding of to support Thanet District to the transport planning four other full-scale UK tidal and assessment tools for the ticketing, information systems the evolution of the plague Council in its efforts to secure technician standard. Highways England MWH Treatment has lagoons at Newport, West supply chain, and working to and service reliability. bacteria strain. The skeletons Manston’s future. announced that it will secured its second Cumbria, Colwyn Bay and help drive long-term efficiency will be excavated, after Construction consultant take more direct control gasification EPC contract Bridgwater Bay. and durability into asset Network Rail chief executive which archaeologists will The cost of expanding Sweett Group has appointed of contracts and separate for an innovative £51.6 M management. Mark Carne and managing dig through medieval marsh runway capacity at Gatwick former Atkins director the way it runs design, waste wood gasification director for infrastructure deposits and Roman remains. could put its business Douglas McCormick as its routine maintenance in project, Welland Bio Power HS2 Construction of a £1.4bn projects Francis Paonessa A Roman road runs under model based around low new chief executive officer. construction. At the moment Plant, Northamptonshire. Heathrow spur link for were due to be on site and the site, which has already cost airline traffic at risk, John Dodds, who has been all activities are bundled into The plant will provide the HS2 is tendering for a HS2 has been ruled out by highly visible as Infrastructure yielded several interesting according to research by standing in as CEO since the single deals with contractor/ equivalent of 17,000 homes delivery partner in a deal transport secretary Patrick Intelligence went to press Roman artefacts such as the Independent Transport departure of Dean Webster in designer teams. The new with electricity from waste worth between £250M and McLoughlin. McLoughlin this Easter, as the network horseshoes and cremation Commission (ITC). The scale October will revert to being system is to be introduced first wood by March 2017. “This £350M, to last for the first confirmed the decision in a operator carried out a £100M urns. of investment needed to non executive chairman. in East Midlands Area 7.

4 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 5 Opinion

seamlessly enjoyable experience of complex and very time consuming. Sadie Morgan, Chair, HS2 High Speed 2 is the most exciting The government has taken the initiative infrastructure project of my lifetime. travel requires many aspects of design Jeannie Edwards, HR to auto enrol employees into a pension For large companies with in house Design Panel I’m delighted to have the opportunity to to be right: from website and ticketing Director, MWH scheme with their employer and from pension managers and structured be involved. to trains, tracks, landscape and stations. past experience I would say that this is a administration the added activities of The Design Panel will have a crucial Successful design is self evident in very sound move. auto enrolment can be absorbed. Design vision for role in supporting and challenging use and there are many UK exemplars The Complete Many people don’t enrol in a pension Yet for smaller companies - which the design process, at every level from which to learn, from the GWR to through either lethargy, ignorance or makes up the majority of the UK HS2 and covering the whole of the HS2 Crossrail. Pensions Trust misinformation. engineering and consultancy sector experience. A successful HS2 will engender The government has built a structure - this additional administration and In parallel with my appointment as national pride matched by a sense of around this auto enrolment to give legislation is a burden. Design Panel Chair, HS2 has published local ownership. flexibility to companies with regard to For this reason, the Association its Design Vision. This document will Business and cultural heritage is their start date (staging date) and then for Consultancy and Engineering and form the basis of any contract involving framed by infrastructure projects; the postponement dates to allow those Charles Stanley Financial Services design, ensuring that good design is project elements must be fit for purpose companies with several small pensions have collaborated to bring a very cost an integral part of the planning and and sensitive to environmental contexts. to bring them together in one date. effective solution for SMEs known as the procurement process, from start to Most importantly, given the scale and The Government has also allowed ACE Complete Pensions Trust. finish. timing of the project, HS2 should be for people to consciously opt out of For a comparatively very small fee With a core team of circa 20 -25 designed to last. the pension scheme initiative, but has companies can utilise the pension people, the Panel with cover a broad That means designing to a clear brief wisely made it an opt out mechanism solution and leave the burden of range of industry sectors, drawing upon now which can serve the needs of the that ensures that if someone makes that the legislation, administration and a wide range of skills. future. choice they really mean to opt out and communication to the pension solution Under my direction the Panel will isn’t opting out through carelessness or provider. assure the DfT and the public that “A successful HS2 will Take a look to see if the ACE lack of information. The government’s initiative is design decisions deliver against the Complete Pensions Trust can help However, the unintended excellent and this solution, provided by Design Vision, consider all needs, and engender national pride consequence of a pension structure the ACE for not only its own members your business. Details can be found are robust and transparent. matched by a sense of with so many elements to accommodate but for any interested company, is as at www.acenet.co.uk/pensions First we need to understand what local ownership.” such flexibility is that the application much of a problem solver as it is a ‘successful design looks like’. A and administration of auto enrolment is support to the Government’s initiative.

With an ageing workforce the sector is industry needs to collaborate and sell 2014 will be remembered as the year market failure in terms of availability Christine Townley, Chief Darryl Murphy, Partner, losing skilled workers at an alarming construction into schools. Many firms that the infrastructure debt markets of long term infrastructure debt. The Executive, Construction KPMG rate. This is at a time when significant do great work in schools that’s for sure. fully recovered. There is now ample market has now significantly improved, Youth Trust projects like Thames Tideway Tunnel, But it still is not joined up enough. liquidity from banks with repaired so many may think the case for UKGS Crossrail, Hs2 and the Swansea Tidal Working in partnership to deliver balance sheets and institutional has become weaker. The UK is waking barrage are either in the pipeline or careers advice is essential; and Post-Election investors with proven ability to provide However, there is an argument that already being delivered and the industry delivering advice to young people in competitive long term capital. the UKGS perhaps needs to expand and up to what should attract the best and brightest. a way that they can relate to means outlook for There was also much activity in 2014 develop further products. Alongside There is a quick fix, I suggest, for they just might think a career in with some £16bn of debt financing the Green Investment Bank, it has a big construction has helping stem those shortages. There construction be for them. infrastructure in the UK for greenfield projects and part to play in attracting wider capital are up to 50,000 young people who We at Construction Youth Trust and refinancing of acquisition assets. into complex energy projects through known for some have already shown an interest in our industry supporters are helping to financing and However, you may be forgiven for the use of credit guarantees, mezzanine construction and are on full time raise awareness of the opportunities investment - thinking the Government has fallen debt, specific risk mitigation and time ….a skills built environment courses in further among young men and women. We do out of love with private finance for particularly equity. education colleges. What they don’t this by running free courses through wrong capital for infrastructure. PF2 as the successor to There is an increasing concern shortage. have is an employer. our Budding Builders and Budding PPP has hardly been used and this may that the provision of equity is too The sector must rally to give a Brunels programmes and by making the the right projects? not change significantly post-Election. challenging for complex greenfield helping hand to those students to give links between the industry and schools. The National Infrastructure Plan projects. European utility balance sheets them a job and a meaningful career. Our Budding Brunels programme set out £79bn of project finance are constrained and despite an increase Not enough young people see works with young people in Years opportunities - £44bn relating to in Asian strategic capital, it is finite. construction as for them. The reasons 12 and 13 to help them understand nuclear. Aside from Thames Tideway Complex construction risk is not are moribund but obvious. Young people the wonderful opportunities within Tunnel, all is required for energy. something that infrastructure, pension lack the knowledge, the skills and the professions in construction. 30% There is no plan to utilise private funds and Sovereign Wealth Funds have the experience to identify and access of the students who join our Brunels finance in transport other than localised found attractive to date. opportunities. courses are girls who have self-selected schemes such as Silvertown Tunnel or An alternative strategy might The industry still has a poor themselves onto the programme. roads under the Scottish and Welsh be to use the deeper pool of capital reputation for image and diversity and It’s really important that we Non Profit Distribution programmes. available in the market to finance the young people are influenced by peers encourage more girls to see STEM Even more striking is that projects in less challenging projects in road, rail and parents over careers choices. professions as for them - not helped by need of financing are generally complex and schools for example and focus But most alarmingly it is the schools the fact that only half of state schools “You may be forgiven for projects such as nuclear, carbon capture Government financing to the more and colleges which lack the knowledge have girls studying physics A level. thinking the Government and storage, offshore wind or merchant challenging energy projects. to offer careers advice and deliver a So my rallying cry is for a joined energy from waste projects. Of course, that would require us to curriculum that reflects real labour up approach to careers advice to has fallen out of love Hence, is there a danger we have the fall back in love with PPP. Details can be found at market need. help young people see the wealth of with private finance for wrong capital for the right projects? Perhaps we can learn from Scotland www.constructionyouth.org.uk Teachers can’t be expected to be opportunity construction offers now and infrastructure.” The UK Guarantee Scheme (UKGS) and the political success of the NPD experts on every sector which is why the in the future. Help us to help them! was set up primarily to respond to a programme?

6 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 7 Opinion

integrated, devolved decision making is repeated throughout the next decade Isabel Dedring, London London is home to more people than Mark Whitby, Engineer There was a great meeting recently at at any time since 1939. This story of needed if we are to unlock the economic the Royal Academy of Engineering (RAE) and influence our whole energy policy. Deputy Mayor for and Past President, ICE success means its current population of growth, jobs and housing London needs. where a nuclear expert promoted the However, Siemens subsequently Transport 8.6M is set to grow to over 11M by 2050. In response we have created the concept of nuclear batteries - known as bought themselves out of the JV and, Modern integrated infrastructure is London Infrastructure Delivery Board the U-battery to use industry jargon. with costs now at over £6.5bn, Areva London’s holistic vital if we are to safeguard the quality of (LIDB) to help identify and maximise the Calculating It is a lovely idea where we may be has recently posted a £3.5bn loss. life for Londoners and will require much opportunities. Working with the London able to scale down a nuclear power Mindful of these realities our approach greater spending than ever seen before. 2050 Infrastructure Plan we will start the real cost of plant to the size of a couple of squash government has set a price of 9.25p/ The latest London 2050 Infrastructure to move towards our vision for effective courts for a smart city or even smaller kWhr for our new nuclear, four times to a 2050 Plan – the first of its kind for the capital infrastructure delivery in London. nuclear for a remote off grid application. the estimate made in 2004. - is our attempt to identify the need but We will initially be focused on so- The idea is not altogether new, small But this is not all the story as more infrastructure also to steer a path towards creating called Opportunity Areas for large-scale nuclear thermal electric batteries have recent research has now begun to the business plans that will ensure development. The LIDB will take an been developed for lighthouses with seriously question the ‘low carbon’ vision aspiration can be funded and financed active role in Old Oak Common, the some success, most notably during the claims for nuclear. Published in the over the next decades and beyond. Upper Lee Valley and North Bexley as Soviet era along their Arctic coast line. Ecologist, this maintains that, much like Central to our goal is to ensure three case studies. Following glasnost, the security the ‘RAE cost estimate’, there has been a infrastructure is prioritised so that all More will follow as we develop a around these ice stations became a tendency for experts to cite as evidence Londoners benefit from access to green programme across key sites and major problem and whilst the Americans and ‘sources’ with the same common space, good transport connections, pan-London projects - and a new digital Norwegians attempted to aid salvage, it unsubstantiated source. Each serves to decent homes sustainably supplied mapping system - to look at each would appear it is not only the copper support the others without justification. with energy and water – and that all are Opportunity Area to create a long-term and lead that is unaccounted for. Worse, the Ecologist calculates that included in the digital revolution. overview of infrastructure need. Of course we will manage the process our planned new nuclear doesn’t even To achieve this, innovative models The regulatory system in place to better. But we should remember these meet the Climate Change Committee’s of planning, delivery, funding and support infrastructure is key and we will tales when imagining solutions to the definition of low carbon generation of financing will be critical so that major work with Ofgem, Ofwat and Ofcom as “Mindful of realities our world’s power supplies. less than 50g per kWhr. “The reality is that the investment decisions are shaped by a part of the LIDB to challenge regulations Back in 2004 the RAE published Perhaps this won’t matter for Hinkley holistic view of the city’s needs with that restrict optimal investment. government has set a a paper on the cost of generating Point. But with decreasing grades of current centralised greater accountability at local levels. This work marks the beginning of price of 9.25p/kWhr for electricity that put the cost of the next ores from which the uranium is mined. decision-making system The reality is that the current a much longer-term process. It is an generation of nuclear power at 2.26p/ the suggestion is that by the end of centralised decision-making system for evolving tool and our work to prioritise our new nuclear, four kWhr. This was possibly why Areva and its life such a plant would be totally for funding is no longer funding is no longer fit for purpose. A London’s infrastructure requirements times the estimate made Siemens had just signed a £2.2bn JV unsustainable. fit for purpose” new approach to long-term strategic and reshape the institutions for delivery contract for a new reactor in Finland. It would help if the experts could at planning and funding with more will be ongoing, in 2004.” The report’s conclusions were to be least do a definitive calculation.

There is passionate agreement. We such transactional behaviour is intended commute but by comparisn my present Miles Ashley, Director Gerry O’Brien, Partner, It is of course fantastic news to hear the know we need to work differently, we to drive certainty then witness the Government’s commitment to investing 5 mile Battersea to Farringdon commute of Crossrail & Stations, AKTII know we can, and we know that when increase in contract costs to outturn, in rail infrastructure in the North. takes around an hour most days. London Underground we do we will get much better outcomes often for similar operational outcomes. Its aim is to reduce journey times I revisited this idea recently when we for UK infrastructure. Low prices are an illusion, and they between Metropolitan areas which were asked to look at a site a few miles We need more At industry events heads nod as destroy focus on value. If we want better Domestic flights collectively constitute a population of a from Edinburgh Airport. I thought I we discuss the need for collaborative value from our infrastructure, more similar size to London. should be able to shoot up to examine infrastructure behaviours, investment in capability operational performance per pound, we surely don’t have History often has a way of repeating the site and get back to London within and training young entrants, building need a more sophisticated question. itself and it would be wonderful to see a working day. But in reality this was for every pound offsite, aligning rewards with client For tier 1 suppliers to prosper they to be so difficult? re-empowerment of these areas some much more difficult than I had hoped. outcomes, integrated design, carbon will need to provide real long term of which were the powerhouses behind Yet surely with smartphones, we spend; cost is efficiency, engaged workforces and value for operators and change their the industrial revolution and the bubble biometric recognition etc, it must surely innovative technology. One wonders own commercial models. Integrated of economic comfort that we have be possible to simply board a plane King why we just don’t get on with it. design will necessitate a different benefitted from for centuries. much as a National Express coach. Whilst there are great examples quality of engagement from both the But perhaps rail is not the only The faffing around at either end of a of achieving these aspirations, our supply chain and design community. option that we have to facilitate a domestic UK flight sucks the life out introspection continues and such Other industries have already prospered, speedy and substantive link to this of what could be a real opportunity by exemplars remain exceptional. from such change, benefitting from a Northern resource. For many years now adding hours to any plans. In the majority of cases we continue fearless response to intransigence. I have wondered that no entrepreneurial But if we could simplify this interface to procure by project. A clear price for When we do see these new soul had managed to invent an and improve city centre connections a fixed scope and service, enshrined in configurations develop, and there are effectively “turn up and go” air link; a from the nation’s many small airports, a compliant bid. It feels safe to do so, it examples, they are self evidently a service that takes all of the time and the UK could at a step become a much “If we want better value fits the governance and expectations. better way of working, with motivated hassle out of catching a domestic flight. more accessible place. With frequent But history is clear, it fails to people simply doing what we all went This thought first entered my small planes we could quickly link into from our infrastructure, incentivise the market to innovate into this industry to do; produce great “The faffing around mind around 15 years ago when I was our northern centres of excellence. more operational and it fails to engage that market in infrastructure. What a prospect. at either end of a courting my now wife. She was in Whilst clearly I oversimplify the value of outcomes. Such short We should have low expectations of Glasgow and I in London. Every other a complex issue, there are surely performance per term transactions fail to incentivise transactional arrangements to deliver domestic UK flight sucks weekend I would fly to Scotland, have many creative minds who could find pound, we need a more investment in skills, or indeed anything complex infrastructure, and we should the life out of a real a wonderful weekend then catch the opportunity in this sort of scheme. Can else. If the supply chain can only develop a low opinion of those that 6am Monday plane and be at my desk we make it work? The gauntlet has been sophisticated question.” compete on price, then it will, and if continue to promote them. opportunity.” between 8 and 8.30am. Not a short thrown down.

8 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 9 Best read online Crisis management, the global BIM arms race and the innovation challenge: Most popular stories All articles can be read in full at www.infrastructure-intelligence.com

TOP STORY: Crisis management: prepare for the worst Mark Naysmith, WSP Chris Patey, crisis Digital Built Swansea Lagoon Simon Murray, Acumen 7 manager at Mott Britain strategy to WSP PB leadership Swansea team UK construction MacDonald gave advice keep UK ahead restructure plans Cardiff tidal has innovation on planning for a crisis, Details revealed on Failure to embrace lagoon problem and became a top read digital technology and leadership team for newly combined WSP Tidal Lagoon Power has Simon Murray, director story this month. BIM level 3 will leave Engineers are increasingly asked to UK at risk from global Parsons Brinckerhoff taken a significant step at the Acumen 7 Although the media can give us a provide some level of risk or crisis towards the delivery of network asked “why do hysterical impression of the calamities management consultancy, Chris Patey, competiveness wrote business facing the world, it merely amplifies crisis manager, Mott MacDonald Mark Naysmith has been announced full-scale tidal lagoon so many clever people the unexpected situations that can Antony Oliver as UK chief operating officer for the strike anywhere and can cause serious This month saw the launch of the newly combined WSP and Parsons infrastructure in the UK have so few game problems for the unprepared. So far assets or systems government’s new Digital Built Brinkerhoff company formed following An Environmental Impact Assessment changing ideas?” 2015 has seen the TransAsia plane While crisis management strategies Britain strategy, which builds on the last October’s £820M take-over deal. scoping report for a tidal lagoon crash in Taiwan; financial instability will vary, there are four key principles standards and savings delivered by the The senior UK leadership between Cardiff and Newport has been The UK construction industry has a caused by the wrangling between that should be kept in mind: Building Information Modelling (BIM) reorganisation also sees Ian Maclean, submitted advancing Tidal Lagoon problem with innovation. If the keys to Greece and the rest of the Eurozone; 1. Leadership comes from the top Level 2 initiative to drive the basic former managing director of Parsons Power’s plans for the UK’s first full scale innovation are diverse knowledge and terrorist incidents in Paris and 2. Communicate effectively use of technology and data into the Brinckerhoff Africa, become UK tidal power scheme. This follows plans connectivity, where is the construction Copenhagen; and the ongoing chaos in 3. Consistent preparation construction industry. managing director for energy for the pioneering, but smaller scale, industry going wrong? The answer trouble spots such as Nigeria, Ukraine, 4. Review regularly “We have seen the global reaction and industry in a role that brings Swansea Bay Tidal Lagoon which is due might be found at the core of the the Middle East and Libya. A crisis is defined as ‘an abnormal to our Level 2 BIM programme’s together the former WSP industrial to receive planning decision in June. industry’s culture and structure and Direct threats; such as climate and unstable situation that threatens successful delivery and significant cost engineering discipline as well as Parsons The new project will have an in particular in our reliance on the change, terrorism, transport accidents the organisation’s strategic objectives, savings which have greatly assisted the Brinckerhoff’s power and energy arm. installed capacity, dependent on final established professions and on the and natural disasters can cause reputation or viability’. They are construction costs savings of £840M Steve Reffitt, former chief operating design, of between 1,800MW and doctrine of project management. Are substantial harm to built assets and difficult to mitigate against and in 2013/4, with several major EU officer of Parsons Brinckerhoff Europe, 2,800MW, giving a reliable annual these the problems we have to fix if we their inhabitants, while indirect the outcome is never guaranteed. nations including France and Germany is appointed as integration director for output of 4 TWh to 6 TWh, enough low want to become more innovative? threats, such as negative PR, especially But a strong and embedded crisis announcing similar BIM programmes,” the businesses in the UK, the Middle carbon electricity to power every home The evolution of the construction in this age of social media, can cause management capability gives an said Vince Cable, Secretary of State for East and Africa. in Wales throughout its 120 year life, professions has produced many skilled huge reputational problems before organisation the necessary tools to Business, Innovation and Skills. No new name has yet been agreed the promoter said. and motivated people, but it has also facts are even established. reduce exposure to risk and to respond The goal of the strategy is to make for the combined WSP and Parsons Site selection and feasibility studies developed specialists in narrow fields Given this, it is no wonder that competently. fully computerized construction the Brinckerhoff which is based in more for the project began in 2011, with a with limited relationships beyond fellow engineers are increasingly asked to Social and physical infrastructure norm and ensure that the benefits of than 500 offices across 39 countries dedicated engagement team established professionals and clients. They are open provide some level of risk or crisis systems are increasingly these technologies are felt across the globally. in 2013. to new ideas within their own fields but management consultancy alongside interdependent and are coming under UK. The next step is to sell this UK “We have a very exciting future Feasibility and engagement work is often fail to spot new ideas outside their their usual design services, and this is a ever greater strain. At the same time, expertise globally and “seize a share ahead, with huge potential for growth underway relating to four other full- fields that connected together could trend that is likely to continue. we inhabit a world facing a new range of the $15trillion global construction in our markets and services as well as scale UK tidal lagoons at Newport, West lead to new ways of doing things. New regulations, such as BS of natural and man-made threats. market forecast by 2025”. for our people,” said Naysmith. “We Cumbria, Colwyn Bay and Bridgwater The time has surely come to ask 11200:2014 and other associated ISO Preparation and implementation of a With work to bring the UK supply are already seeing some of the benefits Bay. Together, the national fleet of six ourselves whether we want the standards for IT Security and Business crisis management plan may not avert chain up to level 2 standard of BIM of our new status in the industry,” he lagoons could meet 8% of the UK’s total construction industry to be innovative Continuity are coupled with Business unforeseen events, but will help owners implementation – and to meet the added. “It is a truly complementary electricity requirement for 120 years. and competitive or are content with Continuity Institute good practice and operators to deal with them when 2016 mandate for all public projects merger of minds and talent, at a very Plans for Tidal Lagoon Cardiff include the status quo. If we are serious about to provide guidance on the strategic they occur. to embrace the use of BIM level 2 – the busy time and in a rising economy.” up to 90 turbines set within a 22km innovation and improving performance advice needed. Clear strategies are Whether existing assets or a new new strategy defines a route toward the Naysmith joined WSP 26 years breakwater that will enclose an area we have to find ways of organising our pivotal in enabling clients to manage dream project, it helps to think the next level 3 programme and the cross ago following the acquisition of of around 70km2 with an average tidal people and processes that maximises risk associated with infrastructure worst. industry partnerships needed to achieve Kenchington Little & Partners in the range of 9.21m. The lagoon could be our connectivity and makes best use of it. early 90s. powered on in 2022. our diverse knowledge.

10 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 11 Roads Industry’s biggest challenge for 50 years, says roads minister

Launch of Highways England and “If drivers think they’ve legislative commitment to a long got a bad deal today, it we term road strategy thanks to the Infrastructure Act mean “the greatest don’t act, it’s only going to change the supply chain has faced for get worse” 50 years,” according to roads minister John Hayes. John Hayes The digital revolution and the internet of things which will allow roads and vehicles to become interconnected Hayes said. “But it’s far cheaper to invest are one part of the puzzle facing in rearing home-grown, British expertise suppliers, he said; the other is training now than wait and outsource work to and developing the estimated extra 30% expensive international consultants or 10,000 people need to deliver the later.” £3bn of work a year in the first Road Hayes announced that the Investment Strategy to 2021 and for recruitment and training of the roads those beyond. workforce will be devolved to the “The Road Investment Strategy is regions and said that government has Highways England – “the the greatest change the supply chain opened discussions with the Association has faced for perhaps 50 years,” Hayes of Colleges about establishing regional said in a speech to a ResPublica event roads academies across England. Siting in London. “If the heyday of the road and establishment of the academies building industry was the years between will be one of Highways England’s early end of the beginning” the 1930s and 1960s, then most of the priorities after its creation on 1 April, 30,000 people working in the industry Hayes said. today will have developed their careers Hayes pointed out that the skills Antony Oliver talks to Department for Transport strategic roads director in the relatively lean years since the required would be the traditional 1970s. engineering and construction ones John Dowie on the launch of Highways England and the biggest “The road building industry of today but also in telecommunications, will hold almost no corporate memory IT, nanotechnology and robotics. investment in highways for a generation. of the skills required to carry out a far- “Retraining current staff and bringing reaching, decades-long, road investment in new experts will take far-sightedness, ranting of Royal Assent for “This is not just a could sit down with a single A3 programme of this kind. So now is the ingenuity and innovation, he said. “It the Infrastructure Act on 12 framework for a road spreadsheet of paper and completely time for the infrastructure supply chain will mean encouraging a more diverse G February gave a full green light recast the roads programme,” he to start assembling the resources, to intake.” for the creation of Highways England, building government. explains, drawing on the painful bode really well for the future of the invest in new techniques and equipment He underlined that the Infrastructure the new government company charged It could just as equally experiences of this happening in the trunk road network.” and to recruit and train staff with the Act holds future governments to a with overseeing the investment in the past. He adds: “Different configurations of ambition to get the job done. That’s no standard of long term thinking – the Strategic Road Network. be a framework for a “In the future government will government will have different views small challenge. road strategy can be varied or replaced For Department of Transport (DfT) sustainable transport need to set out its objectives and on the precise outcomes and there may “Our estimate is that, even with “but that there is such a strategy is now director John Dowie it is a significant Highways England will need to set out be a debate about the scale. But the new working practices and more upheld in law,” he said. “It is a profound moment but very much the start of a driven government,” the evidence and a consultation [will] fundamental point that trunk roads efficient delivery, the workforce will change which requires rethinking how journey to demonstrate to government happen – that is light years away from will be getting a substantial boost in need to grow significantly - this could future road investment is managed.” that its planned investment of £15bn in what we did have.” investment is now beyond doubt.” be up to a third,” Hayes said. And To do nothing, he said, is not an the highways network over the next six John Dowie DfT However he also points out that the Highways England contracts will include option. Britain’s roads are ranked 28th years is set to be money well spent. framework and strategy still gives future Capability challenge requirements for training the future in the world by the World Economic “I have no illusions that there is ministers flexibility to follow their Engaging the supply chain in the new workforce. Forum. And between 2000 and 2009 a lot to do – this is the end of the administration. chosen policies. world of longer term strategic highways “Where Highways England identifies the UK opened just 46 miles of new beginning,” he says, borrowing a line Dowie is confident that it will – or This is not just a framework funding will be critical as delivery is that specific skills are needed, those motorway compared to 225 miles in the from Churchill. at least that a structure and Road for a road building government. It how Highways England and DfT wil skills will be mandated in contracts Netherlands, 680 in Germany and 850 “But don’t underestimate how far Investment Strategy has been created could just as equally be a framework be judged. “The supply chain has to with suppliers. But contracts won’t in France. Research on future UK driver along the journey we have already got,” thus making it harder for investment for a sustainable transport driven demonstrate that it is focused and just consider the job in hand, they will numbers and behaviour has found that, he adds. “Highways England is up and plans to be changed at a stroke. government,” he says. “At the end of engaged on this agenda and taking take account of future need. So when to quote Hayes, “if drivers think they’ve running and underpinned by legislation “It is entirely for any new the day it is about the government action – collectively that they are doing suppliers bid for work, they will need to got a bad deal today, it we don’t act, so that is a big success.” government to decide the level and the articulating its objectives - about a road things together, because they have to commit to providing apprenticeships. it’s only going to get worse. By 2040 The question of course is whether or purpose for which to spend funds on sector led by Highways England.” convince politicians they are serious,” And to implementing skills-plans to congestion will have reached such a not all this work to create focus on long the trunk road network,” he says. “There is a very strong, once in a Dowie says. equip their workforce for the long-term. level that a quarter of all travel time will term public funding for the strategic “That is clear and a political reality generation, sense that infrastructure “Of course, these contractual be spent sitting motionless in traffic. road network will survive the General - they could change the plan. But the is now a crucial part of economic More from John Dowie on www.infrastructure- requirements will be reflected in the That is a loss to our economy equivalent Election and the needs of an incoming difference is that in the past ministers prosperity for UK and England. That will intelligence.com price that Highways England will pay,” to 100 million working days every year.”

12 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 13 Roads Highways England - “We are modernising the motorway network” 112 schemes will transform England’s strategic road network over the next five years and the £11bn investment will, it is claimed, lift the spirits of drivers and performance of the economy. Jackie Whitelaw reports

Highways England has taken its first reduce delays. who will monitor the performance and bow with the launch of a detailed zzorganise improvement and efficiency of the company and Transport five year Delivery Plan. maintenance work so it minimises Focus who will act as the watchdog for The plan explains how Highways disruption and keeps, on average, at road users. England will spend the £11bn of least 97% of the road network open the £15bn roads settlement to 2021 zzwork with industry on emerging currently allocated to improving and vehicle technology and cultivate upgrading the strategic road network. a new and more mature safety Sample schemes to “We are modernising the motorway culture that encourages good driver be in feasibility, under network,” said chief executive Graham behaviour resulting in safer roads, construction or completed Dalton. “We are fully funded for all the vehicles and people. by 2020 capital investment schemes and for the zztake a comprehensive approach to first time we have a five year plan and the environment: investing £225M on • A tunnel at Stonehenge to allow A303 can build new but can also go back and flood resilience schemes, encouraging to be dualled improve what we have already got.” biodiversity by protecting and • A303/A358 to provide an enhanced Highways England’s five year restoring nature areas and resurfacing Expressway corridor to Exeter Delivery Plan to 2020 sits besides that tackles noise pollution using low- • Motorway from Newcastle to London Department for Transport’s Roads noise surfacing at 1,150 locations complete by 2017 Investment Strategy. The RIS lasts for six zztrial innovative technology on the • Smart motorways across the Pennines years until 2021. HE will spend £11bn network, such as wireless power on M62 linking Leeds to Manchester over the five year plan but government transfer to electric/hybrid vehicles, with four lanes, Leeds to Sheffield and signed up for a six year investment wireless internet on roads in the Sheffield to London. via the RIS to create a “rollover year” south east and acoustic incident • Strategic study into a multi-billion and iron out any peaks and troughs in detection systems to improve tunnel pound Trans-Pennine tunnel spending between delivery plan periods safety even further. • Four lane motorway from Manchester so the supply chain could plan for a Dalton said: The launch of Highways to Leeds smooth investment curve. England is an incredibly significant • Smart spine along the M6 and M1 Over the first five years of operation, moment for those who rely on • Smart motorway to connect Highways England’s intention is to England’s motorways and A roads. Worcester to the Birmingham Box and invest in 112 major improvements, “As well as delivering the biggest between Nottingham and Sheffield including 15 smart motorway projects investment in major roads since the and to the north to connect Stoke, providing 280 miles of capacity and 1970s, there will be fundamental and on to Manchester, and south to resurfacing the majority of the network. changes to the way motorways and Milton Keynes New cycle ways and facilities – over major A roads are maintained and • Completion of the London to 200 of them – are part of the work operated. We will be focusing on Yorkshire Smart Motorway. programme along with safety schemes customers, providing better travel • Major upgrade of the region’s A road to cut road deaths and injuries by 40% information before and during journeys, network compared to 2010. improving safety and reducing the • Dualling the Cambridge to Milton Investment rises from £1.782bn impact of roadworks.” Keynes link in 2015/16 to £1.8267bn, £2.241bn, Dalton is leaving the organisation in • Strategic study into a Cambridge, 2.527bn, £2.974bn and £3.658bn over the summer and the search is on for a Milton Keynes to Oxford Expressway the five years. Renewals spend as part new chief executive. to enhance the existing A421 and of that total starts at £718M and rises to Highways England will be responsible A428 £744M by 2019/20. for 4,300 miles of network. The Delivery • Smart motorway introduced to tA1(M) The plan describes how Highways Plan is the detailed response to the around Stevenage England will: Government’s Road Investment Strategy, • Smart motorways will be introduced zzdevelop a new expressway standard a long-term approach to improving to M27 around Southampton and for the busiest A roads to provide England’s major roads. The claim is that Portsmouth a similar standard of journey as for every £1 spent there will be £4 in • Junction upgrades on M25 at junction expected on motorways with wider benefits to the economy. 30 to assist access to London improved, grade separated junctions, Oversight of Highways England will Gateway Port, on the M20 at Dover emergency refuge bays and come from the Office of Rail and Road, and the M271 for improve access to technology to keep traffic moving and formerly Office of Rail Regulation, Southampton Docks.

14 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 15 Briefing

Covenham-Boston pipeline, UK. Maximising the use of existing assets helped reduce the amount of new build required, saving 25% cost and 57% embodied carbon compared to Anlian Water’s business plan Crunch carbon: cut costs How cutting carbon is good for your business – Mike Haigh, Mott MacDonald managing director for Europe and Africa, sets out the issues.

ott MacDonald recently hosted zzCulture encompassing behaviour, two ‘low carbon master classes’ communication and skills M featuring Anglian Water’s zzMetrics encompassing baseline pioneering work reducing carbon as a measurement, targets, tools and means of cutting cost. We are sharing, governance in this Infrastructure Intelligence zzInnovation and standards briefing, the lessons learned about how zzCommercial solutions encompassing to cut carbon, and how it is good for procurement, reward and supply your business. chain integration In November 2013 the government Anglian Water has been at the cutting published a report, the Infrastructure edge of the low carbon agenda for more Carbon Review (ICR), which asserted that than five years. One of the key points of “The master classes the UK economy would benefit by £1.5bn the ICR is that carbon best practice and if everyone involved in the infrastructure innovation aren’t sector-specific. Much supported the Green industry could achieve the same levels of of Anglian Water’s experience can be Construction Board’s carbon-efficiency as the industry leaders. adopted or adapted in the transport, The master classes supported the communications, waste and energy ongoing work to raise Green Construction Board’s ongoing sectors. awareness of the ICR, work to raise awareness of the ICR, and We all need to look outside our they set out to provide practical advice traditional spheres, and share ideas and they set out to and evidence of the business benefits and information between them. As an provide practical advice of cutting carbon, to give others the environmental, social and economic impetus and confidence to pursue their threat, carbon transcends any one and evidence of the own carbon and cost-saving programmes. organisation or business sector. And the business benefits of The ICR set out a small number of same is true of carbon reduction: there is big issues that low carbon leaders have scope for innovation that can save money cutting carbon” tackled to gain their commercial edge: and value for companies across all parts zzLeadership encompassing vision, of the infrastructure industry. Mike Haigh, Mott MacDonald values and policy

16 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 17 Briefing

Internal master classes for staff, and external workshops across the supply chain, were held to build understanding and to stimulate thinking about carbon reduction, getting current leaders up to speed and incubate low carbon leadership among staff and delivery partners.

5. Empower early adopters Turn people who are passionate about carbon into champions for the cause. People who are enthusiastic naturally lead by example, inspiring the ‘early followers’ around them to replicate their efforts to reduce carbon. Eventually, everyone will get the A 63% embodied carbon saving and 23% capital cost saving was achieved on Anglian message. Water’s 20Ml/d Hall Water Treatment Works 6. Communicate your aims and give permission Seven steps to make a difference Innovation within the supply chain needs to be invited and rewarded. It is David Riley, carbon manager, Anglian Water and member of not obvious to everyone that innovation the Green Construction Board’s Infrastructure Working Group is welcome – an issue highlighted in the ICR, with suppliers saying they don’t offers advice based on his experience. know how to put innovations forward higher up to the food chain, or feeling nglian Water’s carbon reduction carbon by 10% or 20% does not create that suggestions will be rebuffed. initiative has its origins in a significant movement away from Opportunities to create change must be A board-level decision, but it has ‘business as usual’ – real step change clearly communicated by clients to their been spread across the business and requires disruptive targets. Striving for service and product suppliers, and from turned into a success by tapping into carbon reductions of 50% or 60% can be senior to junior staff. the leadership potential of our staff daunting, but the challenge of meeting and suppliers. Carbon reduction is these intimidating goals is what forces 7. Challenge your specifications now embedded in all of Anglian Water real innovation to happen. If you’re inviting innovation it is projects. important that suppliers are able In 2006 our then CEO identified 2. Reward carbon-cutting to challenge your specifications. climate change and population growth behaviours Specifications exist to assure as the most pressing issues Anglian Anglian Water took steps to reward the compliance, but they can act as Water would face over the coming 25 behaviours it wanted to see from its constraints as well as safeguards. years. Against a backdrop of increasing own staff, for example by establishing water scarcity, global demand for fresh awards schemes which recognised water was predicted to grow 30% by achievements in carbon reduction. Measure, manage and 2030. We needed strategies to meet Although many companies have internal those challenges in an affordable way. award schemes, few have seized their reduce As a result, in 2010 we launched a set of potential to formally acknowledge and Carbon modelling has been invaluable 10 ambitious targets to transform our incentivise carbon-cutting behaviours. for informing our reduction plans and business into a water company for the tracking progress. Operational carbon 21st century. 3. Lead through project governance modelling is common, but leading Two of these targets related directly Carbon reduction has been incorporated organisations also measure capital to carbon: To reduce our operational into project governance structures: (also known as embodied) carbon. carbon emissions by 10% in real terms Engineers are forced to address carbon This can be more complex, but the and our capital carbon by 50% by 2015, as projects must hit defined targets additional value gained makes it well measured against a 2010 baseline. Our in order to pass certain gateways. worth pursuing. For example, prior to target for the next five years is to cut Governance processes have been modelling capital carbon, we would capital carbon by 60%, measured against imposed from above, but they also have assumed that greatest impact on the 2010 baseline. give engineers the opportunity and the capital carbon footprint of a water Seven steps for fostering carbon the permission to provide ‘bottom-up’ main was the choice of materials used leadership leadership by putting forward their for the pipeline. However, our carbon innovative ideas. models revealed that only up to 11% of 1. Set targets worthy of an industry capital carbon was in a pipeline itself, leader 4. Develop essential expertise and while 89% was associated with the Establishing truly ambitious goals was skills excavation, laying and backfill activities Anglian Water’s first act of carbon Leaders have to understand carbon – during installation. reduction leadership. Aiming to reduce and help others to understand it too.

18 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 19 International conference Global infrastructure leaders gather to set out route for business success overseas “Maximising global infrastructure opportunities” – keynote speakers from McKinsey, Accenture, UKTI and HSBC join line up of global experts – book now to secure your place.

lobal infrastructure leaders Other speakers and panellists from from across engineering and across the global industry will bring G consultancy will set out unique delegates from the unique insight on perspectives on the opportunities for UK current and future global business businesses and professionals at the ACE opportunities, post-recession drivers International Conference on 20 May. of change, investment strategies and McKinsey principal Julian Mills, successful approaches to navigating Accenture Strategy managing director market entry risks and barriers. Ogan Kose and HSBC head of economics The conference is supported by the Mark Beresford-Smith lead the keynote ACE’s International Business Group with speaker line-up of high level strategy the goal of helping the UK market to specialists to set out the challenges and understand how they can capitalise on opportunities for UK businesses around the significant global opportunities. global infrastructure projects. “The quality of the high profile Mills’ delivery will set the scene speakers and discussions planned for the conference and draw on his on the growing global infrastructure experience of leading thinking as opportunities this year is tremendous”, co-founder and chief executive of the said Gavin English, managing director Global Infrastructure Initiative – a of IMC Worldwide and chair of ACE group which marshals the world’s 150 International Business Group. Dr Uwe Krueger, CEO, Atkins will give a most influential infrastructure leaders Delegates from across the range global perspective controlling much of the $20tr that the of businesses across the sector will world will spend on infrastructure over be given insight into how to take the next decade. advantage of the growing global Other speakers Meanwhile Kose will explain and infrastructure opportunities available to confirmed include: discuss what constitutes a quality UK infrastructure professionals. investable project and explain the Other topics to be covered include Mike Haigh, UK MD, Mott MacDonald emerging financial mechanisms being managing the risk of overseas business Philippe Valahu, chief executive, PMU used to bring projects to life across opportunities, the international role John Horgan, AECOM, managing the world and how infrastructure for small and medium sized businesses, director, EMEA and India professionals can influence overcoming barriers to market entry, Andrew Ivison, partner, CMS Cameron deliverability. understanding the global infrastructure McKenna UKTI Senior International Advisor growth hot spots, UK global success Baroness Linda Chalker, chair, Africa Malcolm Cohen has also joined stories and learning from mistakes Matters the programme to highlight the made in the past. Malcolm Bairstow, senior partner, EY significant business opportunities – and In particular the conference will Gavin English, MD IMC Worldwide, chair government assistance - now available also be a critical event to help young ACE International business group to small and medium sized enterprises professionals to understand the complex Bernard Obika, MD, Roughton Group in the global market. and exciting career opportunities on Mathew Riley, Arcadis EC Harris Mark Beresford-Smith, senior offer around the world of infrastructure. Mark Whitby, Whitby Mulhair economist from HSBC joins the Concessionary pricing is offered to ACE Henry Kerali, World Ban conference to set out and explore the Progress Network members. Peter Chamley, director, Arup pitfalls of working globally and identify Julia Prescot, chief strategy officer, strategies to properly managing the Meridiam risks. The session will provide facts Maximising Global Infrastructure Ben Mellors, partner, Beale & Company and experience needed to manage the Opportunities” will be held on 20 May 2015 at Ailie MacAdam, senior vice president, critical issues which can often turn a the Westminster Conference Centre. Infrastructure, Bechtel good business opportunity into a high Paul Westbury, group technical risk, low return or even business failure. For details of the conference, programme and director, Laing O’Rourke The day will conclude with a unique speakers and to book your place at the event, Geoff Mills, Sino Infrastructure perspective on the market by Atkins visit the International Conference website at Partnership group chief executive Uwe Krueger, www.ace-international-conference.co.uk drawing on his experience and recent work with the Global Infrastructure Initiative and at influential panels at the World Economic Forum.

20 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 21 Planning

are congested parts of the network and forward, she said, on a piecemeal case- Infrastructure summit this week, Sir where people are not able to get onto by-case basis as GLA sought a more “Clearly those projects Edward Lister, London’s deputy Mayor platforms,” explained London deputy effective mechanism to tackle the which are likely to for Planning explained that it was vital mayor for transport Isabel Dedring. complex issues of multiple stakeholder for the UK that London continued to “So, of course, as a transport engagement. generate the greatest invest in its infrastructure. agency you would always look at those The focus centres on, for example, value for money will “If London catches a cold then so [congested] areas,” she added. “But if case studies at development projects need to be prioritised. does the rest of the country and we you have a business case for a scheme at Old Oak Common and Park Royal cannot afford to let that happen,” he that is about regeneration or unlocking alongside Crossrail and HS2, Upper Lee However, we believe that said. housing growth that business case will Valley and North Bexley plus continued the way business cases “We have a population growth of 80- struggle to get through the internal work at Vauxhall Nine Elms Battersea 100,000 a year and that kind of growth processes of a transport oriented agency and on programmes such as the £400M are currently prepared is rate will be with us for the next few – rightly at one level.” plan to target investment in 20 housing much too narrow.” years,” he added. “We are beginning Dedring was speaking at the launch zones. to get the right funding methods. This of the new London 2050 Infrastructure A new interactive map is being plan is not a shopping list it is a series of Plan during London First’s annual launched in June by GLA to help the London 2050 Infrastructure Plan programmed parts and we have to make Infrastructure Summit which also developers, stakeholders and the each part stack up financially – there highlighted a £1.9tr economic benefit public better understand the plans and has to be a really solid business case for should London properly embrace the potential of current and planned it – Treasury will expect that from us.” investment in infrastructure. infrastructure projects as a first step Infrastructure delivery areas include The Plan is clear about the need Overcoming this mis-alignment toward reorganising the GLA structure transport, green infrastructure, digital to move away from the existing silo of business case priorities to find the to embrace this new holistic planning connectivity, energy, circular economy, business case models towards a new era nirvana of holistic planning, taking into ambition. water, housing and social infrastructure of “holistic” planning to ensure that account the needs of all stakeholders, “It is an overcomable problem as a “It should not be seen as a final better cases can be made for both the she said, had prompted the creation of practical matter but the issue is that if report, nor as an attempt to summarise public and private sector to invest in a number of cross GLA working groups you are trying to do that in 30, 40, 50 London’s total infrastructure infrastructure but also that local and with developers and with Boroughs to locations across the city there simply requirements over the next 35 years. In business communities are brought into try to “stitch together all the different isn’t that resource within the [GLA] reality it merely marks the beginning of the planning process. funding sources”. organisation,” she said pointing out that a much longer-term process,” explains “It is vital that infrastructure is “Clearly those projects which are the complex nature of these deals mean the plan. prioritised and delivered in an inclusive likely to generate the greatest value that they needed a lot of senior time to The updated report confirms way, with all Londoners benefiting for money will need to be prioritised. negotiate. the aspiration set out in the July from access to high-quality green However, we believe that the way “So we need to come up with a consultation report, which highlights space, good transport connections to business cases are currently prepared slightly more institutional solution that by 2050 London’s infrastructure work and leisure activities, and decent is much too narrow. This is particularly to the problem that is still a practical will include: homes sustainably supplied with energy true for the very large strategic solution to the problem,” she explained. zz1.5M new homes; and water - and that all Londoners are schemes, such as Crossrail 2,” the report “There is an institutional question about zzA 50% increase in public transport included in the digital revolution,” says adds. how we engage and pull together so that capacity, through Tube upgrades the report “The current centralised decision- we can deliver the kind of integrated and extensions, Crossrail 2, road According to a new report by making system for funding was business cases that we are describing.” tunnels and river crossings, and business lobby group London First, developed in an era in which only a comprehensive rail network a £1.9 trillion prize awaits should modest national budgets were available The London 2050 Infrastructure Plan across London with substantial the capital opt to properly fund and for managing what was felt to be the On 30 July 2014, the Mayor published improvements to services in South prioritise vital investment in transport, inevitable decline of cities. This is no the London Infrastructure Plan 2050 (LIP London; communications, housing, water and London 2050 Infrastructure longer fit for purpose in today’s more 2050), a consultation on the future of zzOver 600 schools and colleges; power with the UK also benefitting from expansionary city-focused climate, the city’s growth. zz9,000 additional hectares of accessible significant returns to the Treasury. and the appraisal system currently The updated plan published this green space; However, with London’s population Plan to embrace “holistic” used by the Government stands out as week set out the issues raised by the zzA new ‘strategic’ water resource; set to grow from the current 8.2M to particularly ill-suited to the kinds of consultation but then also tackles zzA sustainable drainage network to beyind 10M in 20 years, failure to invest, large projects that will fundamentally delivery across a range of sectors, how complement the current drains and warns the report, will see the capital business case planning transform the way the economy we might pay for the plans how to sewers; become less attractive as a place to functions.” progress towards reality. zzHigh-speed digital connectivity; visit, live or work, public dissatisfaction Programmes not projects hold key to delivering the vital The Northern Line Extension and In his foreword to the report Mayor zzAround 40 facilities for reuse, increase and international infrastructure business cases needed to drive the capital forward its impact on the London Riverside Boris Johnson sets out his ambition: “We remanufacturing, recycling and waste competitiveness is hit. development was highlighted as an know that well planned infrastructure management. “Fulfilling London’s growth potential example of the GLA working to bring and housing are innately linked. People Better use of existing assets is also would bring significant benefits to London’s new 2050 Infrastructure business cases that are “comprehensive together funding and needs from a must live in areas with running water, at the heart of the Plan, with measures London and the UK,” says the report. Plan will drive a shift in the capital and compelling” to reflect the multitude of different parties to “stitch energy supply and flood protection. such as greater use of tunnelling for “Illustrative modelling undertaken by away from planning in silos across range of benefits associated with together” the holistic business case and He added: “Beyond such basics, roads – including the possibility of KPMG suggests that if infrastructure transport, housing, energy, water and unlocking the full regeneration and make the investment possible. they also need excellent transport and dual use for storm sewers – extending investment enabled an increase in communication toward a new “holistic” economic potential of investment in However, Dedring accepted that digital links to connect them to the the use of green roofs, sustainable London’s GVA growth rate from the model that better serves the needs of infrastructure. the challenge today is finding the way rest of the city and the world, and good urban drainage schemes and a raft of historic trend of 2.5% to 3.5%, this would the growing capital. “Right now regeneration areas are within the existing GLA organisation quality of life. That means investing technological solutions to ensure that yield an additional £1.9 trillion to the The new plan, published in March absolutely at the bottom of the list in structure and resources to embrace the in the benefits of green infrastructure London infrastructure maintenance and economy in present value terms. Of this, by the Greater London Authority, terms of priorities for transport because new challenge. and reducing demand on our finite operation is future proofed. around £650 billion would be raised in calls for the creation of infrastructure you prioritise investment where there Initially the plan would be taken resources.” Also speaking at the London First additional taxation alone.”

22 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 23 Careers

The Infrastructure Intelligence Careers Hub gives the insight and information to build your career in infrastructure plus unique access to the best employers and greatest opportunities around. Read more at www.infrastructure-intelligence.com/careers Chartered status Employers begin work on civil in six years with engineering technician apprenticeship new degree Employers are to start developing an apprenticeship for civil engineering technician following government confirmation apprenticeships that the skill set would be part of the Trailblazer New higher and programme. degree level apprenticeships The employer working group for the has the strong support of the Institution civils technicial apprenticeship, chaired of Civil Engineers. TAC is also helping in five disciplines by Arup’s Kim Blackmore, is looking to develop apprenticeships in railway offer students a build on the already successful advanced engineering design and transport technician apprenticeship for civil planning technician. chance to gain professional engineering technicians. Approval was given this week for status in just six years. It will be the third Apprenticeship the employer produced standard for Trailblazer to benefit companies the transport planning technician Balfour Beatty is leading the which are members of the Technician apprenticeship developed by an construction Trailblazer Employers’ Apprenticeship Consortium. Companies employer working group led by Atkins’ Consortium which have developed the represented on the Employer Working Christine Crossley. courses and qualificaitons, working with Group are Arup, BWB Consulting, Over the last five years TAC BAM Construct, Carillion, Galliford Try, CH2M Hill, EM Highways, Highways membership has risen from six to over Lend Lease and Willmott Dixon. Agency, Mott MacDonald, Mouchel, 50 and the number of apprentices from “We will be starting at least 35 MWH Global, Peter Brett Associates, 8 to over 300. Since its inception in 2010 people on the course this year at Balfour Scott White and Hookins LLP, Tata Steel, over 700 apprentices have been offered Beatty and overall there should be at Tideway Tunnels, Tony Gee and Partners an alternative route into the industry. least 80 Trailblazer apprentices on the LLP, and Waterman Group. The group consortium’s books,” said Balfour Beatty emerging talent development manager Tony Ellender. Support needed to help SMEs tackle “It’s small beginnings but we are expecting the scheme to grow rapidly as “experience gap” people see it as an alternative route to Support to help small and medium sized professional qualification.” The new higher and degree businesses provide career paths for apprentices apprenticeships will be offered in civil and technicians is crucial to ensure skills are engineering, construction management, building services engineering, design co- available across the infrastructure supply chain, ordination and quantity surveying. says Crossrail technical director Chris Sexton New entrants will gain an HNC and Associate or Technician professional Speaking at the launch of EngTechNow’s “This is not helped in the status in three years, followed by a full new report “The experience gap’ - a construction industry by the fact that honours degree and Incorporated or gap which reportedly threatens the UK in many cases the major contractors Chartered status in a further three years engineering professions’ future and subcontract many of the work packages (providing they pass their professional with it the nations’ growth potential, so they are detached from the workforce examinations). Sexton warned that helping smaller that is carrying out their work,” he The new higher and degree companies to invest was a key issue to added. apprenticeships start in September tackle. “The approach to the skills gap up and were developed with the support “At Crossrail we have the benefit of until now has largely been to hope for of the Chartered Institute of Building, looking across a very wide supply chain the best and in my view that will no Institution of Civil Engineers, Royal and people are worried both in the tier longer do. Companies have to invest in Institution of Chartered Surveyors, one contractors but also the SMEs about their engineering teams and this means Chartered Institution of Building whether they have the skills base to apprentice programmes and early Services Engineers and Chartered fulfil the contracts that they have and professional recognition as engineering Institute of Architectural Technologists. for the one that they might get in the technicians.” future,” said Sexton.

24 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 25 Interview

“In construction we can packed a great deal into his career already since graduating with a building tend to make things too Keeping it simple to surveying degree from Westminster complicated. I like to University and an MSc in construction economics and management from UCL. simplify programmes into His career started on a graduate smaller bite sized chunks. programme with Costain and he then spent four years on what he describes as My role is to support drive delivery his “most difficult job”, refurbishing the and help the team to see Royal Festival Hall in London with Bovis Lend Lease consulting. It was a great things like that.” opportunity and he rose up the ranks quickly to project manager. Like many young professionals in the Davendra Dabasia industry he then decided that he had to work on the London 2012 Olympic and Paralympic Games and was quickly embraced by Mace to run the Velodrome project in 2007. However at this point in the project, the Joint Delivery Partnership and my he explains, relationships were still instruction since has been to see how forming and with the various parties we can grow this business,” he explains. trying to position themselves, there “I am not going to pretend that I’m a wasn’t immediately a proper role. rail expert,” he adds. “But we have great Unprepared to “sit around” waiting teams running Birmingham New Street for the project to get going he sought a and another running the Great Western more hands on role and created what he Electrification programme. We are also describes as the “watershed moment” looking at other opportunities with both for his career working with the senior Network Rail and Transport for London.” 2012 team assembling the £9.3bn so- Achieving Mace’s stated aim of called “Yellow Book” baseline report to developing the business to a £2bn define the programme for government turnover in the next five years is to support and fund. important he says but more important He then went on to manage the is getting the right people on board to Whether he is directing work to deliver London’s 2012 Olympic legacy, driving Velodrome project and several others sustain that growth and increase the including the Basketball Arena, and the margins. residential development deals or building Mace’s growing rail portfolio, Eton Manor complex. That means bringing in new skills director Davendra Dabasia’s strategy is clear – don’t make it too complicated. Following Mace’s successful work at graduate level but also developing to help deliver the London 2012 existing staff and turning assistant infrastructure as part of the CLM project managers into effective project eing based in the London Legacy “In 2020 Mace will have I will try to be there every day or two to consortium, the firm now has been managers. Development Corporation (LLDC) been associated with the work out how we can drive performance given sole responsibility for the on- The business, he says, needs a range B offices in Stratford, just off Queen and improve things. And on the rail going programme management (with of skills, some technical and some not Elizabeth Olympic Park, underlines the Queen Elizabeth Olympic side I was with the client recently Davendra at the helm since 2013) to The Olympicopolis is the largest so. The key, Davendra says, is having key role that Mace’s Davendra Dabasia Park for 15 years having really mapping out how to improve the support London Legacy Development development on Queen Elizabeth the skills, knowledge and experience in plays as project director for the Park planned bridge replacement work.” Company as it develops Queen Olympic Park and is intended to be the team to be able to make the right Legacy Team. helped contribute to its Davendra points out that, regardless Elizabeth Olympic Park. developed as a university and cultural decisions based on the information And having worked on the Olympics very important legacy.” of the sector, key to his role is Today Davendra’s business unit is district – anchor tenants include UCL, available. and Paralympic project since 2007, managing logistics and analysing the expected to turn over £8M in fees a the V&A, University of Arts London “Success for me on the Queen first with the team that set the £9.2bn various constraints of the programme year with a team of over 100 people and Sadlers Wells – there is a housing Elizabeth Olympic Park is to work budget and programme and then Davendra Dabasia to see how to deliver the design and spread across the Olympics work, sports development to help fund it and the in partnership with London Legacy leading delivery of key venues including construction more efficiently. facilities and the rail sector. Smithsonian is currently working on Development Corporation to assist the Velodrome, the Basketball Arena, “It is about simplifying – in Essentially Queen Elizabeth Olympic plans to open its first permanent space them in delivering the Olympicopolis and the Eton Manor complex, Davendra management work for LLDC, he also construction we can tend to make Park work involves the conversion outside the US as part of this exciting projects,” he says. “In 2020 Mace will is clearly the go-to man when it comes runs a number of smaller housing things too complicated,” he says. “I like of the stadium into a key venue for development. have been associated with the Queen to knowledge of Queen Elizabeth development projects, the sports and to simplify programmes into smaller the Rugby World Cup in October But it is in the rail business that Elizabeth Olympic Park for 15 years Olympic Park. events division and the rail business. bite sized chunks. My role is to support 2015, then to the new home of West Davendra sees the greatest challenge having helped contribute to its very However, this is just one of the many “I do enjoy driving delivery and that and help the team to see things like Ham Football Club and the national and scope for growth based on the important legacy and been part of such hats that he wears as a key part of the is really what I have grown up with,” he that. competition centre for UK Athletics by successful work already underway for an incredible achievement. For the rail Mace leadership team and a business explains, highlighting that from a very “But of course my other role is to 2016. Meanwhile construction of the Network Rail redeveloping Birmingham business it is about bringing that name unit leader. early age he was exposed to building grow the business – in particular the rail so-called Olympicopolis cultural and New Street Station and the Great and legacy into this sector. The range of activities in Davendra’s projects and construction sites via his business – so I spend a lot of time with education quarter in the park continues, Western Electrification programme plus business unit is particularly diverse – parents’ family construction business. clients, contractors and consultants along with build out of residential work on the Joint Delivery Partnership Interested in joining Mace? Send your CV in addition to overseeing Mace’s post “I try to get good teams around me,” understanding opportunities,” he adds. developments needed to support and with London Underground. with a covering letter to: infrastructure@ Olympics and Paralympic construction he adds. “On a project like the stadium At just 35 years old, Davendra has finance the project. “Last year I started to get involved in macegroup.com

26 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 27 ACE news Publicly funded infrastructure The future of NIPSEF: plans will survive election, three things to consider ACE’s chief executive Nelson Ogunshakin is Alexander tells ACE joint chair with Danny Alexander of the National National Infrastructure Plan is a firm commitment to 2021 and a NIP for Infrastructure Plan Strategic Engagement Forum – skills is on the way chief secretary to Treasury reveals. set up to help deliver the National Infrastructure

projects like high speed rail, but Plan. Here he considers its future. the future will be about the regions taking control of opportunity When the National Infrastructure Plan 3. There must be cross-party political to unlock local growth through (NIP) was established in 2010 it was a support for NIPSEF and its impact infrastructure development, he said. bipartisan effort created by the coalition on NIP 4. “Work within the EU. “EU President government. However, in its infancy, Juncker plans to use infrastructure Audience participation and interest in NIP was in essence a shopping list and What is important is we have to drive growth – I wonder where speakers like Vicky Pryce was high not a strategic document, a criticism engaged the various political parties to he got that idea?” Alexander said. that was levelled at it from the start. raise awareness of NIPSEF. I sense the “I know we can work together. We There was, therefore, an obvious political establishment understands need to be leading in Europe not What is NIPSEF need for government and industry to the rationale for it and appreciates talking about leaving Europe.” ACE played the leading role within the transform NIP into what I would call that NIPSEF is an enabler between 5. “Planning for the next 20, 30, 50 Infrastructure Alliance (ACE, CECA, an ‘investment pitch’. That is why government and industry. Already years. I’m relaxed about the format,” CPA and ICE) in creating NIPSEF in we have the National Infrastructure issues to do with planning, the demand Alexander said, referring to debates collaboration with the Treasury. The Plan Strategic Engagement Forum for resources, and supply chains have about the Armitt commission and organisation was championed and is (NIPSEF). Through NIPSEF industry and been addressed by NIPSEF. Treasury has an Infrastructure Department. “The co-chaired by chief secretary to the government collaborated to facilitate opened up to industry to inject ideas politics needs to be taken out of it … Treasury Danny Alexander and ACE the delivery of infrastructure. and suggestions into their own thought ACE chief exective Nelson Ogunshakin, chief secretary to the Treasury Danny Alexander, but I don’t like creating quangos.” chief executive Nelson Ogunshakin I think over the last three or four processes, creating solutions and ACE chairman John Turzynski at the ACE National Conference on behalf of Government and industry years significant progress has been allowing them to act quicker. made on NIP. We are getting closer to I am therefore confident there is a “We want a rebalanced respectively. In total 60 CEOs and business leaders from the infrastructure what it should be, namely a roadmap strong awareness within government nfrastructure will be a key plank of themselves. “Every £1 of infrastructure economy and to see supply chain, asset owners, financiers for future investment in the UK. It now of what we have been doing. As a result the next government’s economic investment there is £2.84 of economic and business end user organisations addresses issues to do with planning, I believe whoever comes into power in growth plans whoever is elected, impact. Every £1bn spent is 5000 jobs in growth in every part of financing, stakeholder engagement, May will look at the success story that I like the CBI sit on NIPSEF. Each group chief secretary to the Treasury Danny construction alone.” country” meets separately and issues raised are and supply chains. In short, NIP has has been achieved. Alexander indicated to the sector’s But that return has to be shared taken to meetings with Alexander and become a vehicle to make investment in However, like every initiative business leaders at the ACE National around the whole country. “We want a commercial secretary to the Treasury the UK a more attractive proposition to nothing lasts forever. NIPSEF has to Conference in March. rebalanced economy and to see growth Danny Alexander, chief secretary to the Lord Paul Deighton. The group has been investors. build on what it has been doing, it Publicly funded investment in the in every part of country,” he said. Treasury instrumental in reshaping the National So what does the future hold for must continue to be relevant and add latest National Infrastructure Plan Infrastructure Plan (NIP), for instance NIPSEF? Well before we look to the value. The current government has been should be seen as a firm commitment The five priorities were, he said: lobbying for the inclusion of financing future, we need to recognise where we supportive in encouraging engagement and will happen, he said. 1. “Think Green. It is not just The chief secretary also thanked ACE options for the projects pipeline in the are now. The general election is fast between stakeholders and industry. “It is fundamental that long term environmentally friendly but a real chief executive Nelson Ogunshakin and annual document. In addition, the feeling approaching and from the end of March, The next government would be wise to decisions have to go beyond political driver of growth.” He highlighted the organisation for the “dedication was that the NIP should be a “Pitch every system, every structure that is take a leaf out of that book. It will also cycles. So if something in the NIP the development of the Green and passion shown in the cause of Book” for potential investors in the UK, already in place closed. Crucially when need to feed off the confidence of the is publicly funded then it is a firm Investment Bank - the first bank for infrastructure”. something the current NIP 2014 is widely the dust settles after the election, it is industry. For projects like HS2, Hinkley, commitment and will happen, all the the green economy and its £2bn of “We are also grateful to ACE and the accepted to be on the path towards. up to whoever is elected to decide what Thames Tideway, continued stakeholder way up to 2021, and not just by the next investment so far. And he pointed National Infrastructure Plan Strategic HM Treasury has also committed to continues and what is cast aside, and engagement is vital, and must continue. government but the one after” he said. to the announcement of plans for Engagement Forum for helping us develop a complementary “NIP for what new ideas are implemented. At times, government has criticised Alexander highlighted five key a series of tidal lagoons around the improve the NIP and focus on the issues Skills “ to support the delivery of the Regardless of what is decided it is the industry for lacking unity. I think priorities for the next phase of country. that help industry and get long term NIP project pipeline on the advice of vital NIPSEF does three things: NIPSEF has been able to harness the infrastructure investment which 2. “Create the right skills”. Government pipeline right,” he said. In the future those attending NIPSEF. Furthermore, voices of the supply chain, the financial included focusing on environment, has announced that it would create industry needed to help fire up the particularly important issues have been 1. Make sure our work does not institutions, the asset owners, and the skills, devolution, and the much longer the first-ever National Infrastructure public about infrastructure and generate taken by Ogunshakin and the NIPSEF interfere with the political parties end user into one. To curtail NIPSEF term. He was also adamant that the UK Plan for Skills to ensure that excitement about how it can change chairs to the Government’s Economic and the government departments, would simply set the industry back should remain within Europe and guide the UK has the skills it needs to lives, he said. Affairs (Infrastructure) Cabinet Sub- specifically, Infrastructure UK (IUK) five years and hurt the country. So I infrastructure investment across the maintain and deliver world-class “We need to make infrastructure Committee, chaired by Alexander and and Treasury would advise the next government European Community. infrastructure. exciting again. As much as getting long Oliver Letwin MP, and Secretaries of to look carefully at what NIPSEF has Alexander highlighted that 3. “Empower local communities” term plans in place are important, firing State of all departments which spend on 2. We must ensure the NIP is built accomplished, take advantage of the economic return figures for which means greater devolution. up the country about infrastructure infrastructure. upon and taken to the next level that and the industry will be there to infrastructure investment speak for There will always be major national really matters too.” support it.

28 Infrastructure Intelligence | April 2015 April 2015 | Infrastructure Intelligence 29 ACE news EIC news

Engineering Professional of the explained ACE chief operating officer ACE Engineering Year - Sponsored by Mott MacDonald Anil Iyer. This could then be used to WYG director Housing land is a core priority highlight future opportunities from the Excellence Awards NIP to SMEs in the sector. to lead new ACE The next Government should extend SMEs at the conference welcomed 2015 - shortlist the comments and highlighted several group in the North Land Remediation Tax Relief to get more zzBrian Brett, Hurley Palmer Flatt key issues currently affecting smaller brownfield sites into use for new homes, announced zzMatthew Browell- Hook, Atkins consultancy businesses. At the top of Marc Davies, head of the agenda were concerns that SMEs geo-environment and says Matthew Farrow ACE’s Engineering Excellence Awards Project Award Design (up to 250 would be under utilised in the major waste resources at multi- celebrate the best performances of the employees) infrastructure investments planned for disciplinary professional After several barren years since the at extending Land Remediation Tax year from across the UK consultancy zzBWB Consulting the UK. “The potential is huge but the services consultancy, coalition government axed targets for Relief. and engineering community. zzSkelly & Couch problems of getting involved are of a WYG, has been selected the proportion of homes to be built on This relief was earmarked for Now in their eighth year, the awards similar magnitude,” said Steve Wooler, to chair the new Association for previously developed land, ‘brownfield abolition by HM Treasury a few years continue to be a fantastic opportunity Research, Studies and Consulting managing director of BWB Consulting. Consultancy and Engineering (ACE) first’ is back in vogue. ago, and abolition was only averted by for the ACE member firms of all Advisory Award “The SME community has a massive Northern Region Group. A combination of a cross-party an award-winning lobbying campaign size and discipline to showcase their zzAECOM role to play in social infrastructure and The group, which officially launched acceptance that more homes must be carried out by the Environmental talents and successes. Winners will zzIMC Worldwide buildings. Most SMEs work for private in March, has been established to give built (the Association for Consultancy Industries Commission in close be announced on Wednesday 20 May zzJacobs clients where they have to deliver value regional consultancy and engineering and Engineering reckons 880,000 new conjunction with our member for 2015 at the Grand Connaught Rooms, zzRoughton and innovation, always trying to be business a voice, including in the homes will be needed over the next few AECOM. London. Details at www.acenet.co.uk. ahead of the curve. Those skills can be planning and development of major years) and the strength of lobby groups Utility Infrastructure Award transferred to public clients,” he said. infrastructure projects, such as roads such as the CPRE has meant that George zzGHA Livigunn However Wooler said that and high speed rail. Osborne and Boris Johnson to name but Prioritise brownfield Engineering Excellence Awards zzPell Frischmann procurement bureaucracy prevents A launch event, hosted by Pinsent two political heavyweights have been But LRTR is not as widely use as it could Shortlist 2015: zzRoyal HaskoningDHV SMEs from getting involved with Masons in Leeds, saw the group meet arguing for a push to build homes on be on brownfield sites, in part because zzWaterman public sector clients on both social and for the first time to set out its vision brownfield sites. its eligibility is quite restrictive and economic projects. “It is a great shame and objectives. Leeds City Council chief The 2015 Budget included new was made more so through changes Building Services (over 250 Transport Infrastructure Award because the SME community has got executive, Tom Riordon presented to the brownfield initiatives in the South made in 2009. In addition, the steady employees) zzAECOM massive potential to bring to public group meeting which was attended by West and in London while Labour has lowering of corporation tax in recent Sponsored by Beale & Company and zzCapita sector procurement and to ensure that ACE chief executive Nelson Ogunsakin. also announced it will pursue a pro- years has also reduced its incentive Griffiths & Armour zzMott MacDonald the tax pound is spent in the most In his role as chair, Davies will brownfield policy if elected. value. Increasing the rate of the relief, efficient way.” oversee the group’s development The UK should be well-placed to or extending its coverage to demolition Progress Network Award - Evidence of this is clear, said Wooler, as it works to drive the collective step up a gear in its efforts to get more or soil stabilisation costs incurred on Engineer of the Future as Tier 1 contractors on major public improvement of areas such as previously developed land reused for a brownfield site, could make a real zzChris Walker, Flint & Neill frameworks were bringing designs housing, education, employment, and homes. While the land remediation difference. zzAECOM zzDivindy Grant, Mott MacDonald to SMEs and asking them to find infrastructure across the region. A industry was hit very hard by the There is also more to be done to zzHoare Lea zzKarole McCusker, AECOM alternative, better value solutions. “And parallel priority of the group will be 2008 economic crash with many firms reduce the complexity of brownfield zzRamboll zzMichelle Hicks, WSP we do, and they keep coming back to us to support the education and career downsizing, the sector has been slowly regulations. Like all areas, brownfield zzVictoria Sutherland, Mott so the expertise does exist and is being development of graduates and young recovering, and my experience is that has its own jargon: ‘Part 2A’, ‘Category Building Services (up to 250 MacDonald utilised by contractors.” engineers in the sector. countries such as China look to the UK 4 Screening Levels’ and so on. As employees) Taking a peer review type role “The concept of the Northern as a centre of expertise in contaminated development control and land use are zzBWB Consulting working directly with clients was Powerhouse could play a vital role in the land remediation (across consultancy, local authority matters, regulatory zzClancy Consulting another area of opportunity for SMEs infrastructural and economic future for onsite treatment and laboratory soil approaches can vary across the country. zzHurley Palmer Flatt said Wooler, if the procurement hurdles the North of England,” said Marc Davies. analysis) – a consequence of the scale Attempts by Defra to develop more zzSkelly & Couch Treasury could be overcome. “However, in order for this vision to of our historical industrial base and our consistent definitions of contamination ACE North West regional chair Mike become a reality, we need economic retrenchment from it. levels have not found universal Building Structures (over 250 welcomes ACE Barber issued advice for SMEs seeking devolution to happen and businesses favour and the split in government employees) to be involved in large infrastructure across the region to work with each responsibilities for brownfield policy Change needed Sponsored by Beale & Company and input on social projects starting with being realistic other properly and fully, which will be between Defra and DCLG does not help Griffiths & Armour about the services that SMEs can my key focus as chair.” But getting brownfield developments either. infrastructure bring to both clients and projects. The group was established just as up and running takes more than some The old adage is that ‘land is the one “Demonstrate an absolute ability to Transport for the North’s first strategy welcome speeches from political heavy thing they’re not making any more Chief Secretary to the Treasury deliver,” he said noting that delivering was published which included options hitters. Developers usually prefer of’. A Cambridge University study has Danny Alexander told ACE at the specialist services, having a regional for billions of pounds of investment in greenfield sites for the simple reasons estimated that the UK needs to find an zzBDP National Conference that he would presence or existing relationships with rail and road connectivity in the region. that they are cheaper, less complex additional seven million hectares of zzCapita Property and Infrastructure welcome more discussion with the the client or the Tier 1 contractors could “The new Northern Transport and quicker to build on, so we need to useable land to ensure the housing and zzPell Frischmann organisation on the impact of the all be advantages that win work for Strategy is welcome and, with its address this differential if we are going food needs of our rising population are zzRamboll National Infrastructure Plan on social smaller firms. pan-regional and long term approach, to reverse the greenfield trend of recent met by 2030. The next Government will infrastructure and potential benefits of He also advised SMEs not to agree seems to be going down the right path. years. need to make facilitating brownfield Building Structures (up to 250 this to SMEs. to ‘pay when paid’ clauses from Better linkages between the economic So while the budget announcements development a core priority. employees) “The knock on effect from economic Tier 1 companies. “Or forever be centres of the North with go a long way were welcome as far as they go, I think zzBWB Consulting to social infrastructure is not captured compromised,” he warned. He also to creating the Northern Powerhouse.” a more fundamental change to the tax Matthew Farrow is director general of the zzClancy Consulting in the National Infrastructure Plan, so encouraged SMEs to aim high, consider Davies said. treatment of brownfield development is Environmental Industries Commission, the zzEngineers for Overseas what he is asking us to come up with joining forces with other SMEs where Does the Northern Powerhouse need also needed. A new government looking leading trade body for environmental firms. Development is a mechanism by which we can see there might be opportunities, and never more steam? Read Marc Davies on www. to improve the economics of brownfield what that knock on benefit will be,” ignore the client. infrastructure-intelligence.com development could do worse than look www.eic-uk.co.uk

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