(Birmingham Airport runway extension and re -route of the A45 dual carriageway – Colas VolkerFitzpatrick JV Project)

CECA (SOUTHERN) LTD ANNUAL REPORT FOR THE ADMINISTRATIVE YEAR 2014 - 2015

www.ceca.co.uk

The Civil Engineering Contractors Association (Southern) Ltd

ANNUAL REPORT FOR THE ADMINISTRATIVE YEAR 2014-15

CHAIRMAN Lee Rushbrooke (Mar 2014-Mar 2016) Colas Ltd

VICE CHAIRMAN Simon Ohlenschlager Ltd

DIRECTORS John Breheny J Breheny Contractors Ltd

Keith Broughton (representing South West) HOCHTIEF (UK) Construction Ltd

Michael Conway F M Conway Ltd

Brian Crofton Jackson Civil Engineering Group Ltd

Trevor Dodds Skanska

Robert G Dyer Dyer & Butler Ltd

Seamus Keogh Clancy Docwra Ltd

Richard King Osborne

Jeff Niehorster (resigned 30/06/14) VolkerFitzpatrick

James O’Callaghan J Murphy & Sons Ltd

Paul Williams Costain Ltd

EXECUTIVE DIRECTOR Alan Taylor

OFFICE Metro House Tel: 01243 538863 Northgate Fax: 01243 538790 Chichester Email: [email protected] West Sussex PO19 1BE Web: www.ceca.co.uk

CONTENTS:-

Page 3 CECA (Southern) Chairman’s Statement

Page 4 CECA (Southern) / CECA (South West) Membership

CECA (Southern) Ltd Finance and Subscriptions

Page 5 Member Services o Construction Law and Commercial Helpline

CECA (Southern) Liaison with Clients and Other Bodies

Page 6 CECA (Southern) Events o Members’ Meetings o Annual Dinner

Page 7 Training o Training Awards Page 8 o Contractual Seminars o Other Training o Training Advice

Page 9 2015 Action Plan for CECA (Southern)

Page 10 CECA (South West) Chairman’s Statement

Page 11 CECA (South West) Liaison with Clients and Other Bodies

Liaison with the University of Plymouth o Headstart o Industrial Placement Awards

Page 12 CECA (South West) Events o Annual Lunch o Members’ Meetings o Training Awards

Page 13 2015 Action Plan for CECA (South West)

Page 14 Appendix o List of Member Companies Page 15 o CECA Map – Regional Boundaries

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CECA (SOUTHERN)

CHAIRMAN’S STATEMENT

As I commence my second year as Chairman of CECA (Southern), I can look forward to a year of increasing optimism, tempered however by concerns about the continuing pressure on government spending and rising resource costs. Whatever the outcome of the forthcoming General Election, there are still some tough times ahead.

Across all the sectors in which CECA members operate, the requirement to deliver more for less is a common, incessant theme. Nowhere is this more evident than in the revenue budgets of loca l authorities’ highways maintenance departments, where under investment has become the norm, and future workload is increasingly difficult to predict.

By contrast, the strategic highway network sees the Highways Agency in transition to Government Owned Company status. This promises greater spend certainty, similar to that enjoyed in the rail and water sectors. While the demands are no less onerous, longer term visibility allows contractors and suppliers to invest in people, plant and innovative techniques with a greater degree of confidence.

The overwhelming case for investment in infrastructure appears to have general cross party support. Fair payment and more effective supplier engagement are but two issues which will become increasingly high profile in the coming year, raising even more challenges for CECA and its broad membership.

Our Chief Executive, Alasdair Reisner, and his team in CECA National are playing an increasingly pivotal role in shaping the debate on these, and many other critical issues. It is important that CECA (Southern) members continue to support Alasdair in raising the profile of our industry.

Membership of CECA (Southern) is growing impressively. The wide range of contractors and specialist organisations currently seeking and gaining membership augers well for the future, and provides evidence of CECA’s relevance to contractors large and small.

Finally, on behalf of the Board of CECA (Southern), I would like to thank our outgoing Vice Chairman, Simon Ohlenschlager, for his significant contribution to CECA over many years, and I wish him well in his retirement.

Lee Rushbrooke Chairman CECA (Southern)

3 CECA (SOUTHERN) / CECA (SOUTH WEST) MEMBERSHIP

CECA (Southern) / (South West) currently has 74 members and is pleased to welcome the following new members who have joined during 2014/15:- Z Bouygues Travaux Publics (UK) Z Ferrovial Agroman (UK) Ltd Z Land and Water Services Ltd Z Sian Formwork & CCS Scaffolding Ltd Z Thorntask Ltd Z Toppesfield Ltd

We are also pleased to welcome the following new associate member:- Z Stema Shipping (UK)

Associate membership is a new category of membership for companies working in civil engineering, but who do not fall within the definition of a civil engineering contractor. This new member grade allows appropriate companies to work more closely with CECA members and exchange specialist knowledge and expertise.

A full list of member companies is included in the Appendix to this Report.

Acquisitions, mergers and restructuring of UK national companies all have the potential to impact on existing membership numbers. However, we continue to attract new members as our profile and range of support services grow, so we look to 2015 and beyond with optimism.

During the course of the year our Executive Director, Alan Taylor, has visited new and existing members and will continue to do so throughout the coming year. If any member would like to arrange a visit by Alan please let us know.

CECA (SOUTHERN) LTD FINANCE AND SUBSCRIPTIONS

Whilst services in CECA National, CECA (Southern) and CECA (South West) continue to be developed, subscriptions have been kept for another year at 2008 levels with a minimum subscription of £1,200 (+ VAT) and a maximum subscription of £30,000 (+ VAT). The subscription model is based on a multiplier of 0.045% of civil engineering turnover.

The current subscriptions model remains under close scrutiny by the Chairmen’s Strategic Forum and the Executive Management Board.

We continue to explore alternative funding and appropriate sponsorship opportunities.

The finances of CECA (Southern) Ltd have been carefully managed, with quarterly reporting to the Board. A copy of the audited Annual Accounts for the year to 31 December 2014 has been sent to all member companies.

CORPORATE SPONSORSHIP CECA (Southern) Ltd supports The Lighthouse Club with corporate sponsorship to aid those in need within the Construction Industry.

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MEMBER SERVICES

CONSTRUCTION LAW AND COMMERCIAL HELPLINE This Helpline provides contract law and commercial advice and is available to members of CECA (Southern) and CECA (South West). The free of charge telephone service is provided by Bezzant Ltd and provides members with an opportunity to speak directly to experts, thereby obtaining clear and practical advice based on their extensive experience.

CECA (SOUTHERN) LIAISON WITH CLIENTS AND OTHER BODIES

CLIENT LIAISON MEETINGS CECA (Southern) continued its regular programme of liaison meetings with Network Rail IP Southern.

CAMBRIDGESHIRE COUNTY COUNCIL CECA (Southern) assisted Cambridgeshire CC in helping them to determine their preferred Highway Service solution for when their current arrangement finishes in 2016. They will shortly be disseminating their preferred solution to the sector after it has been through their required democratic process.

EAST OF ENGLAND INFRASTRUCTURE SUPPLIER CONFERENCE In excess of 50 people attended the Infrastructure Supplier Conference in Cambridge on 3 February 2015. Senior representatives from supply chain members were invited to hear presentations from the region’s leading customers and stakeholder groups, while networking with some of the country’s major contractors. The networking was on the basis of a ‘meet the buyer’ approach, providing suppliers from the region with a chance to discuss potential work opportunities. Client presentations included:-  Highways Agency  New Anglia Local Enterprise Partnership  Eastern Highways Alliance  Cambridgeshire County Council  Anglian Water

JOINT CECA/ICE SERVICE STRIKE MOCK TRIAL CECA (Southern) co-sponsored the Service Strike Mock Trial event held at the ICE on 17 February 2015. Other sponsors included CECA (National) and Transport for London. Over 180 delegates attended the event, including clients, contractors and consultants. Delegates attending formed the jury and the event provided delegates with an insight into the mechanics of a trial and saw experienced advocates ‘in action’.

LOCAL ENTERPRISE PARTNERSHIPS (LEP) CECA (Southern) has also maintained selective contact with the LEPs, pending identification of those most likely to become conduits for workload. Currently, the Executive Director attends the Forum of the Coast to Capital LEP, Enterprise M3 and various South East LEP events. In 2014 CECA (Southern) also met with the New Anglia LEP to discuss their strategic direction going forward and how CECA might work with them in prioritising and progressing shared key strategic infrastructure objectives.

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CECA (SOUTHERN) EVENTS

MEMBERS’ MEETINGS These meetings are held on a quarterly basis in London and provide an ideal networking opportunity to meet fellow members. CECA (Southern) arranges guest speakers to update members on current industry issues. Speakers in 2014 included:- o Alasdair Reisner, Chief Executive, CECA o Huw Bement, Sales Director, Firefly Solar Generators Ltd o Bob Cummins, Sodak (behavioural science for safety) o Yvonne A Bennett, Head Performance & Development, J Murphy & Sons – Culture Development Programme o Dawlish: The Inside Story – AMCO, BAM Nuttall and Dyer & Butler o Nicola Gotzheim, Learning & Development Manager, Kier Construction - Supervisors Development Programme o Roger Bailey, Head of Asset Delivery, Thames Tideway Tunnel

ANNUAL DINNER The CECA (Southern) Annual Dinner is a major occasion in our industry’s calendar and took place at the Lancaster London on 5 November 2014. In excess of 400 people attended, with CECA (Southern) entertaining over 50 key representatives from industry and associated bodies. We were also delighted to have the Chelsea In-Pensioners in attendance.

From Left to Right: Kyran Bracken; Madani Sow (Bouygues UK); Chris Newsome (Anglian Water); James Wates (Wates); Graham Wren (CSCS); Alan Taylor (CECA Southern); Lee Rushbrooke (Colas Ltd & Chairman CECA Southern); Beth West (HS2); Martin Baggs (Thames Water); Frederic Roussel (Colas SA); Andy Mitchell (Thames Tideway Tunnel); Martin Arter (Network Rail)

6 TRAINING

TRAINING AWARDS For the eleventh year running, CECA (Southern) made awards to recognise exceptionally talented new entrants to our industry. In 2014 a new category of ‘Outstanding Contribution/Lifetime Achievement Award’ was introduced to recognise those individuals demonstrating exceptional levels of sustained service, perhaps with limited formal recognition to date. Winners receive an engraved cup, certificate and cheque for £500. The 2014 awards were presented at the Annual Dinner in London on 5 November by CECA (Southern) Chairman, Lee Rushbrooke. The winners were:- 5 Most Promising Apprentice 2014 – Ryan Hill (Skanska) 5 Most Promising Trainee Quantity Surveyor 2014 – Jaak Van Der Werff (Skanska) 5 Most Promising Trainee Civil Engineer 2014 – Mohammed Halli (Colas) 5 Outstanding Contribution/Lifetime Achievement Award 2014 – William O’Brien (VolkerFitzpatrick)

From Left to Right: Jaak Van Der Werff; Ryan Hill; Lee Rushbrooke; Mohammed Halli; William O’Brien

CECA (Southern) also made awards to the runners up in each category to recognise the high quality of applicants. Awards were made to each second placed entrant at ceremonies in their workplace, as follows:- 5 Highly Commended Apprentice 2014 – Dylan Hawthorne (Costain) 5 Highly Commended Trainee Quantity Surveyor 2014 – Sean Oldbury (Skanska) 5 Highly Commended Trainee Civil Engineer 2014 – Adam McCormick (Colas)

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CONTRACTUAL SEMINARS We continued our very successful programme of contractual seminars, free to members of both CECA (Southern) and (South West), during 2014 as follows: Programmes under the NEC3 Engineering and Construction Contract (Third Edition) Defined Cost under the NEC3 Engineering and Construction Contract (Third Edition) Compensation event procedure and assessments under the NEC3 Engineering and Construction Contract (Third Edition) Compensation events under the NEC3 Engineering and Construction Contract (Third Edition) Formation and Administration of the NEC3 Engineering and Construction Subcontract (Third Edition) NEC3 Engineering and Construction Contract ADVANCED

The training was provided by Mark Bezzant, Director, Bezzant Ltd. Bezzant Ltd specializes in construction law and commercial matters and Mark is highly respected in the industry for his vast experience and specialist knowledge. These seminars were held at venues in both London and Bristol and comprehensive notes for each seminar were distributed to delegates. The notes are available to members upon request. The programme has been reviewed and updated for 2015 with a total of 14 seminars to be held.

OTHER TRAINING CECA (Southern) and (South West) ran the following additional training events for members during 2014:- Management of Sub-contractors course Senior Commercial Directors/Managers Forum o Joint Ventures Workshop o Design risks and responsibilities of main contractors and subcontractors BIM Workshop Management Development Programme (NVQ L6/7)

In excess of 1,000 member delegates attended our training events in 2014.

TRAINING ADVICE CECA (Southern) Head of Training and Development, Briony Wickenden, is available to visit/speak to members on any training related matter.

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2015 ACTION PLAN FOR CECA (SOUTHERN)

Overview CECA (Southern) will continue to support members of all sizes, providing unique access to clients, LEPs and local government. We will also ensure that Southern members have the opportunity to influence CECA's national stance on a number of key issues including:-

 fair payment  efficient procurement practices  better supplier engagement  holiday pay  more effective recruitment of resources at all levels

Our programme of training courses has been broadened to include a wider range of topics of interest to senior managers and directors. Our current programme of high-quality contractual seminars has been extended for 2015.

ACTION PLAN FOR 2015 Membership  increase full membership by 10% compared with 2014 levels  increase associate membership by 20% compared with 2014 levels

Supplier Engagement  host at least one further regional client/supplier/supply chain engagement event  arrange client liaison meetings in transport, energy and utilities sectors in line with member demand  maintain/develop direct contacts with local authorities and utility companies  maintain/develop current links with region's major projects (TTT & HS2)

LEP Engagement  maintain/develop existing link with Coast to Capital LEP  maintain/develop links with New Anglia LEP  identify/engage with two other LEPs in Southern region

Schools Engagement  facilitate 'best practice' member working group and disseminate findings  establish links with at least one educational establishment  work to inspire more apprentices and school leavers into civil engineering contracting

Communication with Members  maintain timely flow of Market Intelligence bulletins

Training and Personal Development  actively promote the case for more appropriate funding of CECA by CITB  encourage member support for effective equality and diversity programmes  continue management & development (NVQ) courses  identify appropriate sources of sponsorship

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CECA (SOUTH WEST)

CHAIRMAN’S STATEMENT

As I look back on my second year as Chairman, it’s pleasing to report significant progress in a number of areas of importance to our members here in the South West. Indeed, the cautious optimism I expressed last year seems to have translated into reality, with CECA members generally reporting increased order books, with the opportunity for more selective bidding making a welcome return after some years of absence. However cash and margins are tightening throughout the supply chains, and fair payment issues are very much in the spotlight.

The case put forward by CECA and others for investment in the infrastructure of the South West has at long last been recognised. More importantly, political rhetoric has been backed up by widely announced commitments. It is incumbent on CECA and all stakeholders to ensure those commitments are honoured by the new government, whatever its composition.

Inevitably, the upturn brings its own challenges for CECA members. The ability of our industry to deliver will be tested as never before, and any pleas of insufficient skilled resources will not be an acceptable excuse for any failure to deliver as promised. Although final investment decisions continue to suffer frustrating delay, the impact that Hinckley C power station will have on the local and national economy will be profound, not least in terms of increased pressure on the supply and cost of resources and specialist services.

All the above issues – certainty of workload, payment and sufficiency of skilled resources - have been on the agenda of CECA (South West) for quite some time. We have started to engage more visibly with other regional organisations, including the LEPs, and I would urge members to support your incoming Chairman, Peter Marsh, by attending and supporting our various meetings and events.

I have thoroughly enjoyed my time as Chairman of CECA (South West), and it has been a privilege to represent members during the past two years. I plan to continue my wider involvement with CECA, so will be on hand to provide whatever support Peter may require in the coming months.

Finally, on behalf of all members, may I wish Peter every success in his role as Chairman.

Andy Pritchard Chairman CECA (South West)

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CECA (SOUTH WEST) LIAISON WITH CLIENTS AND OTHER BODIES

CLIENT LIAISON MEETINGS CECA (South West) continued its programme of liaison meetings and met with the following clients during 2014:-

Z North Somerset Council Z Wessex Water Z Network Rail Infrastructure Projects Wales & Western

Minutes of these meetings have been circulated to members by way of Market Intelligence Reports.

LOCAL ENTERPRISE PARTNERSHIPS (LEP) CECA (South West) has maintained contact with the newly formed LEPs, in particular the Heart of the SW LEP and the West of England LEP.

LIAISON WITH THE UNIVERSITY OF PLYMOUTH We continue to have strong ties with the University of Plymouth, and Dr Martin Borthwick, Associate Head for Civil Engineering, is our main contact. In addition, there are a number of member representatives who sit on the University of Plymouth Industrial Advisory Committee.

HEADSTART For the sixth year running, CECA (South West) supported the University of Plymouth’s ‘Headstart’ event, which took place on 9 July 2014 . Headstart is backed by the Royal Academy of Engineering and is aimed at Year 12 students showing exceptional ability in mathematics and science, and an interest in and aptitude for engineering. They spend 5 days in residence at the University, when they are exposed to various branches of engineering, including civil engineering.

CECA (South West) and members supported the event by holding an evening session with presentations by two young engineers employed by member contractors (Dyer & Butler and Interserve). An informal session followed where the Headstart students discussed career opportunities with members and what it is like to study and work in the profession. The event was a joint one with presentations also from two consulting engineers.

INDUSTRIAL PLACEMENT AWARDS 2013/14 – UNIVERSITY OF PLYMOUTH 2014 saw the ninth set of awards presented to a student who has completed their industrial placement with a member contractor. Plymouth University student, Jayson Cleverley, received the award for his outstanding performance during a placement year with Dyer & Butler as part of his MEng (Hons) course in Civil and Coastal Engineering. Jayson was presented with his award, which consisted of an engraved cup, a certificate and a cheque for £500, at the CECA (South West) Lunch in Torquay.

11 CECA (SOUTH WEST) EVENTS

CECA (SOUTH WEST) ANNUAL LUNCH South West members enjoyed their eleventh Annual Lunch at The Grand Hotel, Torquay on Friday 3 October 2014, with a record 150 attendees consisting of members, their guests and guests of CECA (South West).

Prior to the Lunch, Alan Taylor (Executive Director) and Andy Pritchard (Chairman), along with a number of member companies, had an informal discussion with individuals from the Heart of the South West LEP, Cornwall Council, EEF and South West to discuss how the industry can promote a more forceful, integrated case for strategic investment in the South West’s infrastructure.

MEMBERS’ MEETINGS Members meet on a quarterly basis in Exeter, which gives them an opportunity to network, and regularly feature industry guest speakers. The industry speakers arranged for these meetings have given members an opportunity to input directly into key industry issues. Speakers in 2014 were:-  Steve Cole, Somerset Safety Ltd  Joint member presentation from Carlow Precast, Interserve and Kier on the Restormel Water Treatment site  Dawlish: The Inside Story – AMCO, BAM Nuttall and Dyer & Butler  Scan:Med – Jeremy Whitticase, Quick Response Products Ltd  Huw Bement, Sales Director, Firefly Solar Generators Ltd  Ian Yelf, – Kingskerswell By-Pass  Liz Bridge, secretary to the Joint Taxation Committee

TRAINING AWARDS For the eleventh year running, CECA (South West) made awards to employees of member companies in recognition of their achievements in the industry. The awards were presented to the winners at the Annual Lunch in Torquay on 3 October and the winners received an engraved cup, certificate and cheque for £500. The winners were:-

5 Most Promising Apprentice 2014 – John Bawdon (Dyer & Butler Ltd) 5 Most Promising Trainee Civil Engineer 2014 – Josh Kilbride (Dawnus Construction Holdings Ltd) 5 Most Promising Trainee Quantity Surveyor 2014 – Rachael Speight (Dawnus Construction Holdings Ltd) 5 Outstanding Contribution/Lifetime Achievement Award 2014 – Lenny Wilkinson (BAM Nuttall Ltd)

From Left to Right: Andy Pritchard; Jayson Cleverley; Lenny Wilkinson; Josh Kilbride; Rachael Speight; John Bawdon

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2015 ACTION PLAN FOR CECA (SOUTH WEST)

Overview Over the next few years the South West will experience unprecedented investment in the region's infrastructure, notably in transport, energy and flood/coastal engineering. Members must be in a position to capitalise fully on these opportunities, ensuring the region's long term growth in terms of enhanced skills and sustained employment opportunities.

CECA (South West) will develop its presence and influence, and the service it provides to members.

ACTION PLAN FOR 2015 Membership  increase full membership by 10% compared with 2014 levels  increase associate membership by 10% compared with 2014 levels  improve member participation in quarterly meetings and events by 20%

Supplier Engagement  host at least one regional client/supplier/supply chain engagement event  maintain/develop current links with major projects in the region

Collective Voice for the South West  aim to become the focal point for collective SW representation on infrastructure investment

LEP Engagement  Strengthen current links with Heart of the South West LEP  Establish functional links with two other LEPs

Client Engagement  arrange client liaison meetings to identify work opportunities for members

Communication with Members  maintain timely flow of Market Intelligence bulletins

Training and Development  continue management & development (NVQ) courses  maintain member support service via Head of Training & Development

CECA Internal Structure  work to establish CECA (South West)'s status as a full regional member of CECA  review CECA (South West)'s representation on CECA Boards

13 APPENDIX

LIST OF MEMBERS COMPANIES

CECA (SOUTHERN) Osborne UK Ltd C J Pryor (Contracts) Ltd Amalgamated Construction Ltd R&D Construction Ltd Ashridge Construction Ltd J B Riney & Co Ltd Avon Construction Ltd SB Civil Engineering Ltd Construction Services UK SIAC Construction Ltd BAM Nuttall Ltd Sian Formwork & CCS Scaffolding Ltd Barhale Construction Plc Sir Robert McAlpine Ltd Black & Veatch Ltd John Sisk & Son Ltd C A Blackwell (Contracts) Ltd Skanska Bouygues Travaux Publics (UK) Southern Construction & Surfacing J Breheny Contractors Ltd Spence Ltd Britannia Construction Ltd TAG Construction Ltd Raymond Brown Construction Ltd (Vinci) J Browne Construction Ltd Thorntask Ltd Buckingham Group Contracting Ltd Toppesfield Ltd Civil Engineering VolkerWessels Clancy Docwra Ltd Cleshar Contract Services Ltd Associate Members Cliffe Contractors Ltd Carlow Precast Coffey Construction Ltd Onwave UK Colas Ltd Colas Rail CECA (SOUTH WEST) Commercial Marine & Piling Ltd Aggregate Industries UK Ltd Concrete Repairs Ltd BAM Nuttall Ltd F M Conway Ltd C A Blackwell (Contracts) Ltd Costain Ltd Bridge Civil Engineering Dyer & Butler Ltd Raymond Brown Construction Ltd Erith Contractors Ltd Carillion Civil Engineering Ferrovial Agroman (UK) Ltd Clancy Docwra Ltd Forest Traffic Services Ltd Concrete Repairs Ltd Fox (Owmby) Ltd Dawnus Construction Holdings Ltd Galliford Try Infrastructure Dyer & Butler Ltd GRAHAM E & J W Glendinning Ltd Contracting Alun Griffiths (Contractors) Ltd Interserve Construction Ltd Hanson Contracting Jackson Civil Engineering Group Ltd HOCHTIEF (UK) Construction Ltd John Paul Construction Interserve Construction Ltd Kier Infrastructure and Overseas Ltd JSS Rail Ltd t/a Sisk Rail Lafarge Lafarge Tarmac Lagan Construction Ltd Langley Civil Engineering Land and Water Services Ltd Lewis Civil Engineering McCODA Ltd Ryearch Ltd B & M McHugh Ltd Sir Robert McAlpine Ltd Mace Ltd South West Highways Ltd Mackley Suttle Projects Ltd Morgan Sindall Plc V.S. Rail Ltd J Murphy and Sons Ltd A H Nicholls Ltd Associate Members O'Rourke Contracting Plc Drainology Ltd Omnis Construction Ltd Hydrock

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