ISSUE 07 | January 2015

FEATURE Contractors top the risk register page 24 PROFILE INTERVIEW Mace at 25 – ACE’s new what’s next? chairman John page 18 Turzynski page 32

Produced for the industry by the Association for Consultancy and Engineering Thames Tideway Tunnel The capital’s next big adventure page 10 MESSAGE FROM THE EDITOR News roundup As described in the pages of Infrastructure Intelligence this month, the prospects for a busy 2015 across the built environment are looking very at Sellafield and put the good indeed. RAIL Nuclear Decommissioning Despite the obvious political uncertainty thrown up by a General Authority in direct charge Election, continued investment in infrastructure is clearly locked into all Failure of new but untested was the result of “technical major party plans as a robust strategy for vital economic growth. plant and equipment uncertainties that made the Yet as we look forward to projects such as Thames Tideway Tunnel, used by and transfer of responsibility 2, and new airport capacity making headway in contractor Amey Rail during unsuitable”. The move follows 2015, it remains impossible to ignore the constant challenge to progress renewal work at Holloway intense criticism of the private that still besets the UK infrastructure planning system. Junction north of King’s sector arrangement with NMP Certainly the system has moved forward in the 20 years since a four Cross Station has been which is made up of AECOM, year public inquiry scarred Heathrow Terminal 5. But a quick look at identified as a central cause AMEC and Areva by the Public of rail chaos witnessed in Accounts Committee (PAC) the work currently underway to winapproval for HS2, is still going on the capital over Christmas. and the National Audit Office. to clear Thames Tideway Tunnels for a start and that is about to start on Network Rail’s report into and you clearly see that the UK is far from an easy place to the reasons why hundreds A joint venture of Atkins, invest in infrastructure . of thousands of passengers Mace and Areva has And let’s not get started on the Davies Commission, and its ability to were left stranded on 27 Michele Dix becomes Transport for ’s project chief formally signed the £1.72bn Produced for the industry by the Association finally decide where to build new runways in the south east. December has also identified executive for Crossrail 2 in February. She was formerly contract for the silos direct for Consultancy and Engineering It is, of course, unlikely that solutions to our planning problems will insufficient contingency in managing director for planning and was awarded CBE in the encapsulation plant project feature as politicians jostle for votes in the four months leading to the the project plan for this work Queen’s New Year honours for services to the industry. Four at Sellafield. The AMA joint Infrastructure Intelligence Election. However, giventhat infrastructure is critical to all party plans, and insufficient planning to design teams have also been appointed to make the case for venture was selected as 12 Caxton St, London SW1H 0QL it must remain central to thinking as a new government is formed. ensure that alternative routes project funding. The winning bidders and project areas are: preferred bidder in April 2014. T: 020 7222 6557 Labour’s Armitt Review has already proposed an infrastructure for passengers could cope. ARCADIS Hyder (in partnership with Weston Williamson, The silos direct encapsulation www.infrastructure-intelligence.com Problems at Paddington were Vinci Construction, Interfleet and First Class Partnerships and plant project involves planning commission to embed long term thinking into the short blamed on the Balfour Beatty/ Dr Sauer & Partners) – engineering/technical aspects; CH2M processing intermediate level Editor: Antony Oliver, term political cycle. Now writing in this month’s magazine, former 07710 341082, Alstom Signalling Solutions Hill/Atkins (CAST) – strategic modelling, route development, waste recovered from one [email protected] Tory minister Stephen Hammond sets out plans for a Department for joint venture. It took ten planning, appraisal and evaluation; MTEW (Mott MacDonald of the oldest nuclear waste Infrastructure to provide similar long term investment focus. hours to complete the planned Ltd, Temple Group Ltd, ERM, and WSP Ltd) – environment and silos on the Sellafield site, the Associate editor: Jackie Whitelaw, And there are certainly many alternative ideas out there. two hour safety validation, Magnox Swarf storage silo, 07740 740202, sustainability; AECOM, Weston Williamson and Turkington [email protected] The good news is that the momentum behind investing in testing and sign off as testing Martin – town planning, economic development, socio- then packaging it for long- infrastructurecontinues. The challenge, if this is to continue, must work had to be redone or economic and urban design (See opinion p7). term storage. Designer: Kieran McCann, now be to find a system which allows sensible decisions to be made in rechecked. 0779 000 3972, [email protected] sensible timeframes. Seeking a solution must be a task for 2015. Proposals for HS3 have Potentially a fleet of battery ENERGY POLITICS Commercial director: Sally Devine, Antony Oliver, undermined confidence trains could run on lines 07963 934892, editor, Infrastructure Intelligence in planning for HS2 the too difficult or expensive to Longbay Seapower has A potential block [email protected] Public Accounts Committee electrify and help Network notified the Planning on progress of the Other material contributed by: has suggested in its report Rail cut its carbon emissions. Inspectorate of its intention Infrastructure Bill into law Bernadette Ballantyne on “Lessons from major rail to submit a planning was overcome as government infrastructure programmes”. ’s application to construct a has agreed to exclude Scotland Produced by Victoria Street Capital on It questioned why there had proposals to extend London 21km tidal lagoon covering from laws making it easier behalf of the Association for Consultancy & Contents Engineering, 12 Caxton St, London SW1H 0QL. been no assessment before the Overground services to 72 square kilometres off for fracking firms to drill for News roundup 5 This month’s top infrastructure stories go ahead of HS2 as to whether Barking Riverside received the coast of West Somerset shale gas. Fracking is part of The views expressed in Infrastructure Opinion 6 Comment from Uwe Kruger, Michele Dix, Nick Baveystock, Paul Sheffield, better rail services in the overwhelming support in the in the Bristol Channel in the bill which also includes Intelligence are not necessarily those of the Ailie MacAdam, Nelson Ogunshakin, Steve Fox and Graham Watts North were a greater priority. recent public consultation with 2018. The lagoon, which will legislation to create Highways Association for Consultancy & Engineering. The PAC also queried whether 90 per cent of respondents be a Nationally Significant England. The Scottish Interview 10 Thames Tideway Tunnel CEO Andy Mitchell explains the £4.1bn project Printer: CPG, 9-10 Orchard Business Centre, in favour of the extension. Infrastructure Project government, the Scottish Sanderson Way, Tonbridge, Kent TN9 1QG. Crossrail 14 Tunnelling is finishing; time to think about the railway. has in place a proper strategy The Barking Riverside (NSIP), involves building a Labour Party and the Scottish T 01732 366666, [email protected] for major rail project development is the largest continuous breakwater wall Green Party had opposed the Politics 17 Stephen Hammond on the need for a Department for Infrastructure. 2015 Subscription rates: £80 a year. development. housing development site in spanning from Culvercliff bill but with the fracking Company profile 18 Jason Millett of Mace on building his infrastructure business. east London with planning in Minehead to Lilstock exclusion the Scotland Infrastructure Intelligence produces a weekly The first battery-powered consent for up to 10,800 homes (approximately 21 km long) Office said “the opposition free newsletter. Sign up at the website: Business 20 SMEs get to grips with outsourcing and tech investment. train to run on Britain’s but development can only be to create a tidal lagoon was content to withdraw its www.infrastructure-intelligence.com rail network in more than realised if the railway line is and associated electricity amendments”. Management 22 AECOM’s Richard Marwood shares tips on creating a successful alliance. Follow us on twitter @infra_intel half a century carried built. generating infrastructure with Join the Infrastructure Intelligence group Risk management 24 Contractors top the risk register, our breakfast meeting revealed. its first passengers in a generating capacity of circa on Linkedin January. The Bombardier A Costain and Skanska 2.8GW per annum. REGIONS Policy 28 More support needed in public procurement to hit SME targets. Class 379 Electrostar joint venture has won the Rail 29 Gerard Fitzpatrick of Sweett Group on developing a rail business. battery powered train also last Crossrail tunnelling The Nuclear First meeting of Transport known as an Independently contract, worth £40M, to Decommissioning Authority for the North took place in Careers 31 Matchtech’s Grahame Carter on securing talent for 2015 Powered Electric Multiple build the Paddington Link is to take direct control Leeds on 12 January, chaired ACE 32 John Turzynski takes over as chair, Danny Alexander to headline Unit (IPEMU) – is running Tunnel between the Bakerloo of Sellafield. Government by leader of Manchester City conference, pension help for SMEs and time to enter the Engineering during weekday timetable Line Underground platforms has said that its decision to Council Sir Richard Leese Excellence Awards. service for five weeks between and the new Crossrail station terminate a £9bn deal with and with Transport Secretary Harwich International and at the London main line Nuclear Management Partners Patrick McLoughlin in EIC 35 Matthew Farrow on disappointing decisions at the EU. Manningtree stations in Essex. terminus. to deliver decommissioning attendance. The meeting was

2 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 3 News roundup the first step on the way to elements of the pricing of the ARCADIS’ International Costain chief executive drawing up a comprehensive bids that in the view of the Construction Costs report, Andrew Wyllie, BAM Nuttall INTERVIEW: Don Ward is chief executive of transport strategy for the Agency will not support the which benchmarks relative chief executive Steve Fox, and Constructing Excellence, working to drive industry North covering rail, roads, delivery of the contract over building costs in 43 countries former Kier chief executive improvement in 2015. Interview by Antony Oliver ports and airports. TfN is the next five years.” Existing across the globe over the Paul Sheffield who is now led by the city regions that incumbents Balfour Beatty/ past 12 months, has found managing director of Laing too readily reverts to old made up One North: Greater Mott MacDonald on Area 4 that the UK is now the eighth O’Rourke’s European Hub. behaviours. Manchester, Liverpool, Leeds, and Aone+ on area 12 will most expensive country Sustainable design guru Jane Sheffield and Newcastle, have their managing agent for building in the world. Wernick, the engineer behind Does the economic upturn together with Hull and contracts extended for 18 Construction costs in Central iconic structures such as make CE’s work easier or the Humber, working in months while the ASC bids are London are currently higher the Kew Treetop Walk and Construction Excellence more difficult? collaboration with other resolved. than Switzerland, the most Rainham Trackway was also exists to “drive the change Easier in the sense of the northern authorities, the expensive country in the awarded a CBE. agenda in construction”. ability of people to engage Department for Transport, Highways England, the world for building. How does it do that? with us, both financially Highways Agency, Network Government-owned Attracting new talent into We bring together clients and and in terms of time. It also Rail, and HS2 Ltd. A joint The Science Museum exhibition “Engineering your future” company which will replace Measures to support engineering jobs across the supply chain to: results in a turn back towards interim report will be has now opened. The show is designed to persuade 11-15 year the Highways Agency from housing, shale gas, small the sector will generate - define excellence and collaboration strategies as produced in March 2015. olds to become engineers of tomorrow. The exhibition includes next April, has set out its businesses, training and an additional £27bn a exceptional performance and suppliers find they hold more a game to design a Mars rover, Futureville (above) a 3D printed first ever five year plan to research and development, year for the UK economy set the standard, of the bargaining power city onto which a game is projected and there are challenges to modernise, maintain and alongside the £15bn roads from 2022, according to the - set a routemap for industry, throughout the supply chain. ROADS deliver luggage in an airport and run trains on time. Videos and operate England’s 6900km programme were revealed latest State of Engineering - facilitate alliances and information cards help to explain the exhibition, with advice network of motorways and in the Autumn Statement in report from EngineeringUK. across the sector Is it time for another The Development Consent also available about how to pursue a career in engineering or major A roads. The plan puts December and were broadly However, solving the - measure performance and Latham Review to focus the Order for the A14 take up further studies. Objects on display include a model of puts at its core improved welcomed by industry. But current skills shortage and evidence the benefits, industry? Cambridge to Huntingdon an Americas Cup yacht, a bionic hand and a tsunami simulator. customer service, better concerns about a hiatus in filling the demand for new - act as the voice for the No, we had one of those improvement scheme has Mott MacDonald is one of nine organisations supporting the planning and stronger investment created by the engineering jobs means leading edge of the sector with the Construction 2025 been submitted. The project, exhibition which runs for three years. relationships across the supply forthcoming General Election finding 182,000 people a year who drive change faster. strategy in 2013. This at the valued at approximately chain. and lack of enough real with engineering skills in the centre of our strategy, allied £1.5billion, is the largest meat around the Northern decade to 2022. What areas does to a vision that leading edge road improvement project in chairman Colin Matthews an announcement suggesting Plans for the road tunnel Powerhouse concept for performance still need to players need to be able to Britain and will address the will oversee the proposals. A that £6bn was being set aside under Stonehenge have been growth in England’s northern Melanie Dawes has been improve? achieve those standards problems of congestion and tunnel, according to initial to fill potholes, Government slammed by archaeologists cities tempered enthusiasm. appointed as the new This needs to be the era of sooner, say by 2020, to delay on the 40km stretch government initial figures, did in fact reveal the local who fear it could damage permanent secretary value through lean delivery. meet their own and clients’ of trunk road between could cut journey times across government capital road the oldest encampment According to the National for the Department for Success starts from focus business needs. The message Cambridge and Huntingdon. the Pennines by up to 30 maintenance budget and yet discovered near the Infrastructure Plan 2014, Communities and Local on value for clients and remains that collaboration is Construction is expected to minutes. unusually laid it out for the monument. Charcoal, flints released in December, 60% Government replacing Sir will be built on foundations fundamental to change – step start in 2016. six year period to allow road and animal bones dug up from of projects and programmes Bob Kerslake who retires at of respect for people, change in delivery is needed. Edinburgh is to be engineers to plan proper the Mesolithic encampment in the pipeline are now in the end of February. Dawes collaborative working and AECOM has been appointed Scotland’s first 20mph city. maintenance regimes. For at Blick Mead in the world construction or part of an is currently the head of the BIM and offsite solutions. Is the industry still too by Transport for London Over 80% of Edinburgh’s the next three years it has heritage site, 2.5km from the active programme compared economic and domestic focussed on short term to take the Fleet Operator roads, including the city confirmed that the budget will stones, has been tested and with 45% in 2013. Overall secretariat in Cabinet Office. Are there any quick wins? delivery? Recognition Scheme (FORS) centre, will be included in the be £976M a year compared to dated to around 4,000 BC, the infrastructure pipeline is Many larger infrastructure Yes, as are clients, but the national. The contract has council backed scheme. around £720M in 2014-15 and archaeologists said. worth an estimated £466bn New appointments at HS2 clients have recognised they industry needs to work an initial term of five years £840M in 2010-11 which was with £277bn of projects Ltd include former Lend cannot achieve their business harder to articulate the with the option to extend by According to the the the most generous allocation currently under construction Lease procurement and goals through traditional problems with this. We a further two years. FORS is Highways Agency, 85% of of this Parliament. And for BUSINESS and a further £189bn of future supply chain chief Nigel ways and have adopted don’t have the business or an accreditation scheme that drivers using the Dartford the three years from 2018 the investment proposed. Energy McKay as new head of collaborative working procurement models which delivers safety, environmental Crossing have paid the budget is indicative “to allow New draft regulations for projects make up almost construction procurement. strategies with their supply give enough of the supply and efficiency benefits for remote toll, introduced for changes in circumstances”, the third update in the half of the investment for Jonathan Crone will join chains. CE is the home for chain skin in the game to be fleet operators by encouraging in November. But 15% or a DfT spokesman said. CDM regulations have been 2015/16 at £25.7bn, followed from Foster Wheeler Energy those who want to pursue commercially aligned and the adoption of best 300,000 journeys did not pay published by the Health by transport (£17.7bn), as director of the programme such strategies and we need incentivised to deliver value practice industry standards the toll before the deadline A consortium of Balfour & Safety Executive. The communications (£5.4bn), management office and Colin to reach out, embrace them for the long-term. including air quality and of midnight the day after Beatty, Carillion and Approved Code of Practice water (£4.7bn), waste (£0.7bn), Morris will join as programme and provide the platform for safety. Chartered Institute of crossing. The Agency is giving Galliford Try, known as has been simplified; the science and research (£0.5bn) delivery strategy director from sharing and learning. CE’s new chairman is Logistics and Transport (CILT) each driver contacted for the Connect Roads, has reached CDM Co-ordinator role is and flooding (£0.4bn). EC Harris. Murray Rowden of Turner and specialist fleet services first time an extra 14 days to financial close on the £550M being replaced with principal What has the construction and Townsend. How can support organisation Fleet pay for trips made without Aberdeen Western bypass designer; written health Engineering will find itself industry learned about major businesses like this Source are also involved in the penalty. – one of Scotland’s biggest and safety plans for all PEOPLE AND CAREERS competing with government delivery in the 20 years influence the change? deal. transport infrastructure construction phase projects to recruit numerate school since the Latham Review? They are major advisers English Councils are to investments. will be required, but projects Transport for London leavers and graduates. This Collaborative working works. to many of the top clients. Plans for a trans-Pennine have around £250M a year lasting less than 30 days and managing director for follows an announcement But sustainable change Not only is their advice road tunnel along with an more money for capital The Highways Agency has with less than 20 workers at planning Michele Dix was by Prime Minister David is difficult, collaborative heeded but they are in a upgrade in east-west road investment in local roads decided to rebid Asset any one time will not need awarded a CBE in the New Cameron that he is backing working even more so, in a great position to help share links are to be drawn up as from April 2015 to March Support Contract deals to notify HSE. The updated Year Honours list. Also a push to find 17,500 more sector which is so vulnerable learning between such part of the strategy to develop 2021, Department for for Areas 4 and 12 because regulations come into force in honoured with a CBE were maths and physics teachers to downturns AND which clients. the North. Highways Agency Transport has said. Cloaked in of “concern arising from April. three contracting bosses; with a £67M bursary fund.

4 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 5 Opinion

My input to the debate at this consultants, suppliers, specialists and Uwe Krueger, chief Infrastructure funding and development Paul Sheffield, managing I think everyone involved in designing has been a central theme at the World year’s Davos meeting focused on some and building infrastructure projects in the main contractors. So, wo-betide those executive, Atkins director, European Hub, Economic Forum’s annual Davos key points. Firstly, that the investor UK has been growing in optimism over who abused the trust of their supply Laing O’Rourke meeting since 2011, under the umbrella perception of the infrastructure sector is the last 2 years. But the memories of the captain in the difficult years. of the Strategic Infrastructure Initiative, key. Therefore a more clearly articulated devastating effects of the credit crunch There is little doubt in my mind Closing the and for a very good reason. WEF has argument for the benefits is needed. Technology holds in 2008 are never far away and there are that the biggest challenge facing our described global infrastructure as “the It is recognised that infrastructure constant reminders in the press of the industry in the next few years is a lack of infrastructure engine of the world’s productivity”. represents an investment asset class. the key reducing things that could trip up the economic skilled resources to be able to deliver the National governments across the The attraction of matching stable recovery that we are all enjoying. programme of work we see ahead of us. funding gap globe are facing mounting challenges dividend streams from long-term risk and boosting Whether it is the looming election In the frantic years leading up to to create and modernise infrastructure, projects to the long-term horizons and the uncertainty that brings, or the the credit crunch in 2008, we saw the yet the estimated shortfall in global of pension funds is very apparent to efficiency renewed threat of “Grexit” from the same issues and a number of businesses infrastructure debt and equity institutional investors and, potentially, a Euro, or the instability brought about by were starting to research and invest in investment is at least US$1tr a year. huge source of capital. the fall in the oil price and trouble in the technology and modern methods of As population grows at around key To attract this funding a proactive Ukraine, there are plenty of reasons to construction (aka – off site manufacture) urban centres so the pressure to provide approach is needed to inform investors. remain cautious. but the crash came and in most cases the infrastructure to boost economic We need to consider how companies However, I think I can honestly say investment dried up overnight – growth and social wellbeing increases. like Atkins can influence the “supply” that I haven’t seen as much opportunity hastened by the near 50% fall in the cost These pressures are, of course, keenly side to overcome the barriers to in the UK marketplace at any time in the of skilled labour on our projects. felt in poorer countries. Here the influx investment. How can engineers help 32 years I have been in the industry. We are now seeing strong growth in of private capital is critical. Back in governmental organisations to prioritise The fact that all the major political construction GDP with an even smaller 2012, Meles Zenawi, Prime Minister their needs and strategise on the way parties are united in their support for pool of skilled people who are now of Ethiopia noted that “Without the their projects are delivered? infrastructure spending as an imperative costing more than ever. private sector, there is no development.” Domain knowledge is key. Ultimately for economic growth is a real bonus and We have to find ways of doing more Yet this issue also exists in wealthy more interaction between engineers the low interest rate environment that with less and for those of us who have “Investor perception nations. Recently US current affairs and the financial community will “There is little doubt in we have enjoyed (?) for a number of years continued to invest in technology such of the infrastructure TV show 60 Minutes noted that the US help stimulate investment. We can my mind that the biggest is now encouraging the private sector to as BIM to design more efficiently, and had fallen to 16th in WEF’s league and add the greatest value by providing a play catch up with the plans they have to build off site in factory controlled sector is key. Therefore a needed some $3.6tr to fix the problem. ‘client friend’ role to recipient national challenge facing our been holding back. conditions, we are starting to see that more clearly articulated How to close this infrastructure governments, building capacity and industry in the next few The result is that for the first time in it de-risks our projects and we are funding gap is a complex problem but ensuring an integrated approach to many years we have choices about who (hopefully) seeing discerning customers argument for the the WEF’s Infrastructure Investment strategy development is followed years is a lack of skilled we want to work for and what terms we prepared to pay for quality and certainty benefits is needed.” Policy Blueprint gives us a way forward. through in project implementation. resources ” will accept – and this applies equally to of delivery.

Just under 200 years ago, when ICE now is the time for concerted political the public over any concerns of local Nick Baveystock, Michele Dix, managing Despite huge investment in recent was first founded, public and political commitment on infrastructure. Without years there is a strong case for more. As impacts. director general, ICE director, planning, TfL hostility to large scale infrastructure greater political consensus on the UK’s such, Crossrail 2 is vital if London is to Given the competing demands for was often so great that one MP declared infrastructure needs, better public continue to succeed as a global city. funds and the criticism that London has during a debate he “would rather meet engagement on major projects and The project will address the transport had its fare share of investment we also Take the 5 Step a highwayman, or see a burglar on his less bureaucratic inertia, there is a A business and housing challenges generated need to find ways to fund the scheme. premises, than an engineer.” risk that the socio-economic benefits by London’s rising population. It will Public transport users, businesses, and Infrastructure Today, more politicians of all parties infrastructure brings will be unrealised. case for growth unlock sites for up to 200,000 new land owners whose assets will increase are making the case for infrastructure. It The UK still languishes at 27th in the homes, support employment, and in value will all benefit, as will the Challenge has occupied a reasonably high position World Economic Forum’s infrastructure and jobs address severe congestion on the tube Exchequer from the resulting uplift in on the Westminster agenda in recent quality ranking. and networks. the economy. years, and this increased interest has led Whoever holds power next May, Significant transport benefits will be An independent study by PWC has to a range schemes and initiatives on all will have to deal with a severely felt across key rail corridors across the shown that, on cautious assumptions, both sides of the house. constrained public purse for years south east region,with a very positive over half the cost can be met through Its revival has of course been helped to come and maintain some degree benefits to cost ratio (2.1 to 2.6). local London sources. Our task is to seek by the need to stimulate economic of commitment to deficit reduction. Getting Crossrail 2 off the ground to increase this further. growth: infrastructure projects create However, by making infrastructure a has its challenges, as does any major Right now we must learning lessons jobs, equip future generations with central plank of any plan to improve infrastructure scheme from others about getting the design skills and regenerate communities. economic growth and social well-being, Yet the Crossrail 2 business case is right to provide a safe, reliable, high It also shapes decisions about where politicians can build on the foundation clear. With so many jobs and homes also frequency railway service but that we live, work and invest, improves laid over the past 5 years and fully supported by Crossrail 2 beyond London also enables the economic potential of connectivity and provides access to realise the UK’s infrastructure potential. its positive impact on GDP will be key Crossrail 2 to be realised. ICE is encouraging all political parties to show healthcare and education. It is much Political courage will be key over the to the case for its inclusion in the next We also need to ensure we can commitment to infrastructure through its new more than an economic multiplier. next 6 months and beyond. The road comprehensive spending review readily build the scheme in the 5 Step Infrastructure Challenge and join Despite improvements, progress has ahead is challenging, with some prickly Crossrail 2 already has cross party minimum time and with minimum the infrastructure debate on Twitter using been gradual and not as “turbo charged” issues to tackle and tough decisions to political support in London and there construction impacts. Many lessons #Commit2Infrastructure. as many would hope – perhaps due to make – on aviation policy, the driving has been overwhelming public support. from other major schemes – Crossrail 1, the notion that spending on needs such forward of major projects, managing As we get into more detail design this HS2, the Extension – will ICE’s Manifesto for Infrastructure will be as health and social care reap electoral cost, and on the resilience of our year to decide where the tunnel portals, be applied to ensure we can meet our published at the start of February setting out rewards more quickly. networks. But I believe there are also stations, ventilation shafts, worksites challenges and get to a single preferred policy recommendations on all sectors. As we approach the General Election, opportunities at every turn. etc will go, we need to fully engage with scheme design by 2016!

6 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 7 Opinion

remain an industry that doesn’t train production becomes more feasible. Graham Watts, chief I joined the construction sector in 1979 Nelson Ogunshakin, As I look forward to 2015, my big – I know, I don’t look old enough! But a in sufficient numbers, has an appalling hope for the industry this year is the The pressure points of production executive, CIC chief executive, ACE 36-year perspective on construction has record on diversity, requires a convoluted global market is managed carefully and cost in Asia and challenging working been one series of very long loops. supply chain and doesn’t pass on the becomes more predictable. While the conditions in the Middle East makes On the one hand, there has been the payments fairly to the people who global market is challenging, it’s not too Africa the last frontier for foreign Construction’s continual drive to improve efficiency actually turn up to do the work. Uncertain times challenging for the industry to navigate investment. If you look at countries with strategic reports coming along at an Then there’s eternal cycle of boom However, uncertainty in the like Ghana, Nigeria, and Uganda there slipper still ever-increasing frequency. Introducing and bust. We go from throwing ahead but global market will likely affect the corporate are numerous activities taking place his ‘Constructing The Team’ report in good people onto the scrapheap to world as there’ll be a lot of changes in the infrastructure development, doesn’t fit 1994, Sir Michael Latham, remarked that bemoaning skills shortages. The short- opportunities internationally. manufacturing, oil and gas industries. it had been 15 years since the Banwell termism of the industry never ceases to Further consolidations of the market So what does that mean for UK Report and hoped the next report on amaze me as companies’ breeze through await is expected across the international plc? Increased activity in Africa, the construction would not be needed for the good times without bothering much frontier. We already know the Middle East and Asia will lead to global another 15 years. to prepare for the day recession comes. political landscape will likely change, demands for consultancy services. Yet by 2010, there had been four Now we are obsessed with pipelines particularly in the UK with the General This is something the UK should take more major overhaul reviews (2 x Egan, of work. It seems like a great idea – Election fast approaching. advantage of and is strategically well Wolstenholme and Morrell)! spreading the workload evenly like So the impact of these on the placed to do so. The current iteration of all this marmite on a piece of toast. But perhaps industry is something we need to As for ACE I hope we stay focused motherhood and apple pie is the not always great for the industry. prepare for. on our core strategy and continue to Industrial Strategy, which merits some The problem now comes with the Despite the implications the election stay relevant. We need to support our higher level of consideration it does at industry believing that the pipeline will have on the industry in the UK, how members, both small, medium and large least, place construction alongside the is there for its own sake, to provide a things will unfold on the international at the appropriate level. As devolution other major industrial sectors of the UK steady and unencumbered forward flow stage is more of a concern for me. If you beckons, we continue to strengthen our economy. of work. “Give us certainty of work and “Increased activity in study the GDP of the world’s emerging regional activities. The “Cinderella” industry has at last we can invest in the people we need”, is economies, the biggest growth is in With the National Conference in “The biggest single found a Prince Charming in business the sort of plea I hear often. Africa, the Middle East Africa, the Middle East and Asia. March, followed closely by the election, thought, garnered from secretary Vince Cable, who recognises Frankly, it’s a cop-out. No other and Asia will lead to global So what sort of impact will that this event will provide the perfect forum that the UK economy cannot function economic sector has certainty of growth have on the market oil price? for debate on infrastructure policy. my 36 years’ experience, without an effective construction demand. The biggest single thought, demands for consultancy If you are a country exporting All in all, we are ready for 2015, is the certainty that this industry (and he can dance, too). garnered from my 36 years’ experience, services. This is something oil the lower its value becomes, the and I’m confident ACE will be a strong But to carry this “Into the Woods” is the certainty that this industry needs less disposable income you have advocate for the UK engineering and industry needs an entirely analogy a step further, the slipper still an entirely new business model. And the UK should take towards infrastructure. However, if construction sector helping it become new business model.” doesn’t fit. Despite all the reports, we time is running out. advantage of.” you are importing oil then the cost of the leader, if not the best in the world.

At we are committed to a framework, with appropriate tools, improve the public perception of the Ailie MacAdam, managing Steve Fox, chief executive, The New Year brings new challenges, fostering a diverse and inclusive training, processes and tracking metrics. in particular the general election construction industry. director rail (global) at BAM Nuttall environment where people of all More specifically with respect to in May. I remain optimistic, as all The Crossrail films and “Engineering Bechtel backgrounds have the opportunity to gender equality, we are engaged with major political players appear to have Happiness” were all very positively advance and thrive. It is critical to the a number of initiatives to encourage embraced the importance of investing received and we must build on this. Diversity must long term success of any business. women to take up engineering. A year of in infrastructure, and we have seen a Improving health and safety is still One area of particular importance We have signed up to the commitment to longer-term workload. a big challenge. While there have strengthen our is combatting unconscious bias, an Government’s “Your Life” Government optimism – The establishment of Highways been significant, positive changes in instinctive tendency to favour familiar campaign, which aims to increase the England in April 2015 has been a approach, standards and openness, industry kinds of people, rather than objectively numbers of women in engineering by and plenty of positive step on this journey, and going the industry continues to suffer life judging an individual’s capabilities. focusing on the numbers of girls taking forward, it would be good to see the changing injuries, and worse. In response we have been rolling out maths and physics ‘A’ levels. challenges Environment Agency also remove its In recent years, employers have unconscious bias training across our Our “women@bechtel” network is current annualised spending. focussed on influencing individuals’ sites and offices around the world. The a collaborative forum for both men The industry has an important role to behaviours, yet it is apparent that programme aims to help people at all and women to share perspectives and play in helping the Government ensure all contractors have different rules levels to reflect on their existing biases. experiences, and learn about tools for we remain part of the European Union. and procedures, and clients’ safety Biases can be applied to people of success. Each “women@bechtel” chapter Construction relies on the transient performance and programme scoring all backgrounds – gender, nationality, is empowered to set its own agenda. European workforce, and it is essential varies. My challenge to all of us in religion etc – and can relate to any The Middle East chapter recently that this continues, to retain the 2015 is that the industry unites, and number of differences – even accents, took the lead in us signing up to the Abu benefits of skills and knowledge transfer promotes a consistent safety message tastes and interests – idiosyncrasies that Dhabi American Chamber of Commerce across boundaries. and approach, for the entire industry make us individuals. The aim is to equip ‘Women Achieve’ initiative to promote Key challenge to government: However, we must also increase our workforce. people to avoid unfairly prejudging the professional advancement of women – Maintain current infrastructure plans – British workforce, by working more The need to further reduce waste, colleagues or potential new recruits. in the region. no major reviews closely with schools and influencing and therefore cost, continues. We suffer We are also forming an international I believe that we should all feel a – Raise the profile of the chief construction young people to join our industry by from relentless ‘reinvention of the group for diversity and inclusivity made personal responsibility to address this advisor promoting the broad spectrum of career wheel’ in contract form, procurement up of various minority backgrounds and challenge. I am sure that many other – Create independence for IUK to help opportunities and various entry routes. and design in the name of innovation. groups, reflecting the markets we serve. companies are also implementing great determine future infrastructure The construction industry is a great My challenge to the industry in The goal is an environment where all plans to strengthen diversity, and if not, – Resolve the air capacity debate place to work, and we need to get this 2015 is to standardise processes and employees can reach their potential. they should be! Our industry will only – Set green energy tariffs to encourage message across. allow innovation to flourish in the final This includes the development of benefit as a result. private sector commitment. Additionally, we must continue to solution.

8 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 9 Interview

y the end of February the team on the £4.2bn Thames Tideway BTunnel will have presented their project to investors looking to help create Britain’s first sewage only utility. They should also have selected three contracting teams for the main civils works on the 25km long, 7.2m diameter tunnel. At the same time, the Tideway’s Government is defending its decision to issue planning consent to the project against four objectors who have applied for a judicial review. But the view has already been taken that the project is the best long-term solution for managing sewage waste in a capital that is about to hit its highest population ever and is expected to grow another 25% after that. time Here’s chief executive Andy Mitchell 2015 is due to be a big year for Thames Tideway Tunnel. Its chief executive Andy on a busy few months ahead for the project to build a sewage interception, Mitchell talks about pitching to investors, choosing contractors and how the project storage and transfer tunnel running “The good thing about regular contact with the Government from Acton in West London along the and have had assurances from the Labour can change London’s relationship with its river. Interview by Jackie Whitelaw. line of the river through the centre of the timescale is that opposition team that they are keen to see the city to Abbey Mills in the east. tunnelling in London is the project proceed without delay and want to be kept up to speed on anything Finance well understood and we we can share to make the process easier. Around £1.4 billion of the Thames have contractors with We take this as very supportive. Tideway Tunnel’s construction cost access to a workforce with With the financing in place we can will be financed by Thames Water formally create the new company, for and £2.8 billion by a new company current knowledge and the moment known as Thames Tideway currently being created. The financing Tunnel Ltd, whose first job is to build skills” structure for the new company will be the asset which it will then own and determined by the winning bidder. Andy Mitchell, chief executive, Thames maintain in perpetuity. The revenues Thames Water is running the sale Tideway Tunnel for the project will be collected from process and early February will be Thames Water’s entire customer base the first time I and my management in the usual way. The quoted increase team present to the investors. They are in customer bills of up to an average buying into us and it is our chance to maximum of £80 per year is very much convince them that they can trust us to a worse-case scenario, and we are deliver the project whose construction confident it will be lower than that. they are funding without heartache. Investors’ money will be used to pay Contractors for construction of the tunnel and they The good thing about the timescale need to know we can deliver. Crossrail is that tunnelling in London is well (where Mitchell was programme director understood and we have contractors until July 2014) finishes its 42km of with access to a workforce with tunnelling work at about the same time current knowledge and skills thanks to as we make our presentation and the Crossrail, Lee Tunnel and others. timing is not lost on me or anyone else, The contractors can have their pick and that’s entirely right. The tunnelling of the experienced and the best and on Crossrail has been very successful. that is reflected in the bidding which is This is an opportunity to take the big competitive. That competitiveness also learning and huge comfort from Crossrail reflects the contractors’ belief that this along with the success of Thames Water’s job is eminently do-able with typical Lee Tunnel project and the National Grid views on production rates coming out tunnelling work and bring it all to bear on on the high side. the next major investment in London in a I’m chair of the infrastructure harmonious way. client group of Infrastructure UK and The Thames Tideway Tunnel is the third part of the London Tideway improvements which also includes work being carried out by The intention is that the tendering the big thrust there is that as clients Thames Water to construct the 7km Lee Tunnel which completes this year and upgrades to five major sewage treatment works. process with investors comes to a we continue to give government and Tunnelling contracts for the Tideway Tunnel are divided as follows: conclusion in the summer, so it will be a the public confidence in investment - Western contract is from Acton Storm Tanks to Carnwath Road (1 – 7 on the map) largely in London Clay post-election decision. I’m not concerned in infrastructure. It’s not just about - Central contract is from Carnwath Road to Blackfriars Bridge (7-15) in Thanet Sands and other groups about the election. There is cross party continuing to deliver the programme, - Eastern contract is from Blackfriars Bridge to Beckton (15-24) in chalk support for the scheme – we stay in it’s about real incremental cost

10 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 11 Interview efficiency. It should no longer be a surprise that we can build it at cost. What is important is for everyone in the infrastructure sector to demonstrate improvement. And that’s the thrust of the contracting approach on Tideway. We have opted for only three tunnelling contracts divided by the different ground conditions to be encountered (see map). That is significantly less interfaces than on Crossrail and will be more efficient. When we tendered Crossrail there wasn’t an appetite among contractors for big packages, now there is and with the consortia presenting these are about the right size. What we will see is pure incremental tunnelling figures better than ever before even though our diameters are bigger and we will be working at depths (up to 65m) where we need to keep the aquifer out of the tunnel. We will also be running an alliance arrangement with pain and gain triggers for the whole alliance which includes us, Thames Water, the three main contractors and the SCADA systems integrator. For the winning contractors, what that means is that there will be opportunity in the six month optimised contractor involvement period after award of contracts to work out how we could do things better by changing One of the shafts for the Lee Tunnel (top) giving an idea of the scale of Thames Tideway elements of the design and by using the Tunnel; the project will stop current outfalls pouring sewage overflows into the river alliance framework. (left); site investigation underway along the Thames (right). For instance, all the contractors are looking at marine shipment of Need and opportunities which will capture a large portion tunnelling segments and muck away. What is disappointing is that the of London sewage), there will still be Does that mean we require three discussion about London’s waste water 20m tonnes a year hitting the river separate logistics management plans on has become polarised between tunnel or before you take account of a growing the river? That can’t make sense. blue/green options like sustainable urban population. That can’t be acceptable. Many of our sites are waterfronted drainage. It shouldn’t be an either or. With the Tideway scheme there will be and my ambition is that the vast Tideway is necessary – we are just three or four spills of the most dilute majority of our deliveries and muck currently having to pour first flush sewage a year. Three months after we aways travel by water. sewage into the river fifty or sixty times a press the button on the completed project You could say the same about the year because the current sewage system the Thames will be effectively sewage free design detailing for the shafts. They all is at capacity and it is that first flush that for the first time in generations. It will have to achieve the same dissipation so does the real damage. It takes up to three change London’s relationship with its do we need three different designs? We months for each of those highly polluted river. There are opportunities to use the can’t do. flushes to make their way down river and river as an amenity in ways we haven’t This is not for us to impose but there out to sea. That can happen with as little done for centuries. must be synergies. It is going to be as 2mm of rain because there are just Retrofitting for blue/green solutions interesting to see them develop. more people in the city. is not practical in the city now – it My chief operating officer Mark The role of blue/green options is to doesn’t make sense to rip up hard Sneesby, who was latterly Thames complement the tunnel. Alone, these standing and you can’t dig a hole (for Water’s programme director on the options can’t deliver the scale of what underground storage tanks) without Lee Tunnel, will oversee the monthly is required or fast enough. Meanwhile encountering lots of underground alliance board and there will be a London would watch the rate of sewage in utilities. But I do believe that we need quarterly CEO alliance board. What the Thames increase. It can’t be acceptable. to change the planning rules so future we have to do is make sure every level Overall, on an average year, 39M development has greater blue/green is living and breathing the alliance. tonnes of sewage and sewage polluted elements and we need to campaign for And if any party isn’t playing its part it rainwater gets into the Thames and that. We have to see different planning is up to the boards to manage, and I even with the Lee tunnel (currently regulations such that our successors am sure there will be some fairly under construction between Abbey Mills are not going to have to build another straight words. and Beckton sewage treatment works tunnel.

12 Infrastructure Intelligence | January 2015 Crossrail

over stopping services from Abellio Greater Anglia. Initially these will operate with the current rolling stock but will be gradually replaced in 2017 by the new Crossrail trains. Testing of the new Crossrail trains will begin in June 2016 ahead of the phase one opening in May 2017 to put this new rolling stock onto the Great Eastern Line out of Liverpool Street. Phased openings will follow in 2018 and 2019 ahead of full opening in December 2019. “By May we have to notify our sponsors DfT and TfL that we are ready to go [with testing] and we have to give them a detailed plan and share our findings with ORR so that two years ahead of that date the whole of the industry gets mobilised,” he explains. “Agreeing this now means that two years ahead the whole industry knows what your game plan is and so what to expect.” Bharma also points out the initiatives such as making the test track available as early as possible along with investment to construct a new station operations Chris Sexton, technical director (left) and Siv Bharma, rail system and commissioning room jointly with director (right) are masterminding the complex task of creating an operational railway at Blackfriars – to be ready to start testing with a brand new fleet of trains from a series of completed tunnels and station caverns. systems in the Spring this year – will be important in meeting the programme. “The strategy that sits “One of the challenges for us is that Changing tack “The best thing that the senior as we change over the contractors there management at Crossrail did here was above everything here is to are new people doing different things, London’ £15bn Crossrail project reaches a milestone in May as civils contractors to mobilise the operator and maintainer not leave all the big risks organised in different way,” explain very early on – it is very unusual to Sexton. “We have done a huge amount of start to hand over tunnels and stations to mechanical and electrical fit-out and mobilise them seven of eight years ahead to the end.” work with our supply chain in terms of of opening,” says Bharma. “MTRC’s moving the industry’s safety behaviour systems crews. Antony Oliver discusses the critical plans ahead with technical engagement here is a plus – they have Chris Sexton, Crossrail technical director forward and we are now going to have director Chris Sexton and rail system and commissioning director Siv Bharma. the competences in house to help us to start this again with new contractors. decide whether the solutions that we Particular in the MEP area, the question very major project learns lessons the decisions that you make during the operator and maintainer, gives Crossrail are proposing are the best ones and best three year old technology in the is how do we drive in the safety culture from those that go before it. installation of the systems themselves,” a major advantage. the ability to be able to question and world – something that somebody else into a supply chain that is much more ECrossrail, Europe’s biggest explains project technical director “Our systems specification was challenge.” has already tried,” he adds. “The software fragmented.” construction project, is certainly no Chris Sexton, underlining the reality written very early which meant we Also available in Spring will be the that we will use here is just being So Sexton’s first challenge is to exception, not least as it begins the that as any project nears completion were able to reach out to the supply so-called “Train zero” – a computer commissioned in Copenhagen so there complete tunnelling and that is by no complex process of turning tunnels into the challenge of managing the risks chain early,” Bharma explains. That version of the train on which to test all will be the opportunity to actually go means a simple task given that much of an operating railway. escalates. means being able to tap into the ideas systems and scenarios. The project is also and see that software in operation. That the final work is under central London. It is a critical moment. Speak to “So the strategy that sits above of experienced systems and mechanical investing in a purpose built integration means we are less likely to have grief.” Second is for “the tunnelling anyone involved in a recent major rail everything here is to not leave all those & electrical (MEP) contractors including facility – a detailed lab in which all the So an enormous amount of thinking community to clear off in a timely project and they talk about the biggest big risks to the end,” he adds. “So we Costain, Alstom, Knorr-Bremse, supplier software is brought together is already going on to prepare and plan manner’ as he puts it, leaving the work risks to meeting the opening schedule as do everything we possibly can to pull Westinghouse, Siemens and train to be tested and electronically simulate for these critical operations at the back areas clear for the MEP and systems being centred around getting the track, the mitigation as far forward in the manufacturer Bombardier. how real trains will operate. end of the programme. However, Sexton contractors to access. power signalling and communications programme as possible.” “We have been working to get the Bharma has learnt many lessons along points out that, while these testing The third on-going challenge, he says, systems properly integrated, tested and And that, he says, means ensuring test strategies earlier from the supply the way throughout his career, not least strategies are of course crucial, there is is to continually manage the integration commissioned on time. everybody on the project really chain – getting them to mobilise their from time spent on challenging projects also the small matter of having to first between the civils, MEP and systems For recent examples, think signalling understands what has to be done now in key thinking people sooner rather than such at the Extension project construct everything. designs, each of which was necessarily on the Jubilee Line Extension; think 2015 to ensure that they are completely later,” he adds in the 1990s. And that means as the tunnelling carried out separately in phases and now baggage handling at Terminal Five. ready for handover and first trains The first trains come off Bombardier’s “The lessons there were that firstly winds down, from May and June must be knitted together. Hence the priority right now, three running from May 2018. Derby production line in February next the level of complexity specified [to use 2015 onwards the MEP and systems “The lesson from other projects is that years ahead of the first train service, to At the sharp end of this work is rail year and before that date Crossrail has to a moving block system] was way ahead contractors must start to mobilise to fit getting those interfaces roughly right is ensure that the strategy for testing and system and commissioning director get its testing specification coordinated of its time, and second the level of out the stations and install the track, not good enough. They have to be exactly commissioning the entire railway ahead Siv Bharma, a veteran of many major and approved to enable it to book the systems integration specified was highly , ventilation, signalling, right. Here the digital model is a huge of handover to the operator is absolutely rail projects in the capital and beyond. vital test track in Melton by March. advanced – all you needed was one or power and communication kit. help,” he says. “On any project the nearer worked out and agreed. And having the whole systems supply In fact, MTRC will start running two suppliers not really getting it for In fact the first of these contractors, that you get to the end the risk tends to “The way in which you do the testing, chain on board already, he says, plus services from 31 May 2015 between problems to occur,” he explains. Siemens, starts in the Canary Wharf go up – so whatever you can do to pull commission and handover will drive MTR Corporation (MTRC) the ultimate Liverpool Street and Shenfield, taking “For signalling you should use the station in February. those risks back is important.”

14 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 15 Crossrail Politics

experience – it needs 850 new staff new transport services. A consolidated including over 400 drivers, which is a department would bring a more focused Planning for the big task. At every step in the phased Who’s for a Department and co-ordinated approach to policy opening we’ll be taking over the areas which are currently diffuse or stations, then we’ll introduce the trains, for Infrastructure? subject to competing departments. A new train service run the trains in service as live tests, more aligned and coherent approach then bring them through the tunnels. will eliminate confusion and allow Former transport minister and ACE advisory board member Stephen stronger leadership on key policy issues Crossrail’s Howard Smith on moving from project delivery to What is the most important target for Hammond makes the case for a single department to manage major and objectives. railway operation. Interview by Jackie Whitelaw. Crossrail and MTR when it opens? infrastructure development. A new department would determine The starting point has to be what the key sectors and allow for greater do passengers want from Crossrail. project prioritisation, overcoming real n just over four months time at Safety, obviously is the number one he quality of a nation’s concerns about whether just having 40 the end of May Crossrail starts its thing they expect. Beyond that, two infrastructure is a critical or 50 key projects is the right approach. I first train service. It won’t be called thirds of customer satisfaction marks T determinant of its economic It would quickly become a centre for Crossrail and there won’t be any of the are on reliability and expectations are development. The urgent need to expertise and skills, improving both as 65 new Bombardier Class 345 trains rising. What was acceptable five years invest in critical maintenance and well as the quality of decision-making in running on the tracks. But Transport for ago is unacceptable now, and what enhancement of our infrastructure policy development and project selection. London and Crossrail operator MTR will people demand now would have been networks has now sparked a debate in That government is weak in project be taking over the eastern part of the superlative 10 years ago. So the headline the UK; do we have the institutional management and procurement skills Crossrail route and operating services target is 95% reliability in terms of the framework that allows longevity in is widely recognised. Project oversight from Shenfield to Liverpool Street. national performance measure. investment to be enshrined? has all too often been characterised by And that section will be the first to Politicians talking about institutions indecision and delay, with continual appear on the London Tube map – a Is reliability a measure of running on and the need for change are invariably a redesign leading to cost increases and major milestone in the story of the time, or meeting headway targets? public turnoff. In some cases, however, delay rather than “on time and on project. It is the first stage of a phased Both, that’s the big challenge. We institutional reform could drive a step budget”, for example. A new department opening of London’s revolutionary new need to measure performance against change, either in policy or delivery. will allow for better procurement railway from Reading in the west to a timetable when we run on Network In the UK, the extent of government and potential savings through the Shenfield and Abbey Wood in the east Rail lines and on headways when we are involvement in infrastructure varies outsourcing of programme management right through the heart of the capital. underground and are effectively a Tube. significantly, depending upon whether that would benefit from central Crossrail operations director Howard In the Tube section the trains could all it is power, transport, housing, or management. Equally, if government Smith has the job of managing the Crossrail operations director Howard be 10 minutes late but as long as the broadband. In some sectors, the Stephen Hammond has a direct role in delivery, project transition from Crossrail the project Smith. “It’s going to be dramatic.” headways are maintained people would government’s role is limited to policy management would be improved for to Crossrail the operating railway. He be happy. But we have to operate on a and regulatory framework design and exactly the same reason. explains what is happening and why. 500 seats. It’s going to be dramatic. timetable for Network Rail who have implementation, while in others it all other Whitehall departments with It could better assess the impact zzMay 2018 – TfL and MTR take over the given us train paths and we have to is to direct financial investment and respect to infrastructure, namely DfT, of likely technological advances on What is the plan for opening services that run stick to those. Crossrail needs to meet project manage. Whatever the level of DECC, DEFRA, HMT, DCLG, and BIS. infrastructure projects, provide a single Crossrail? into Paddington. This will be the first all those expectations. involvement, however, there remains Therefore the new department would point of guidance on legal matters and There are six stages to watch out for. appearance of the new Crossrail trains a concern that strategic infrastructure not be established for administrative stimulate a better consultation and zzMay 2015 – Transport for London and west of London. What impact will Crossrail have on decision-making is too often short- convenience but would ensure engagement process with the public. Crossrail’s operating concession MTR zzDecember 2018 – the tunnel section London and its transport operation? sighted, uncoordinated and lacking coherence and excellence in a key It could set and have oversight for the take on the line between Shenfield opens and we start operating trains It creates a 10% increase in capacity, expertise. The same concerns remain government objective. strategic decision-making authority for and Liverpool St from Abellio Greater from Abbey Wood in the east to though that’s likely to fill up pretty throughout the process, as policy moves To those who might say the last thing national infrastructure decisions. Anglia. We’ll be running 30 year Paddington in the west. quickly. It will provide faster journeys into the project delivery phase and Whitehall needs is more government There would also be a substantial cost old trains from existing stations zzMay 2019 – we feed the trains from and one-seat options removing the future regulatory oversight is needed. departments, I say “hear hear”. I also say saving through eliminating duplicate so it won’t be called Crossrail but Shenfield into the tunnels. neeed to change trains. People’s This Government has taken two there are, of course, two obvious solutions. roles and reducing the need for space TfL Rail as we don’t want people to zzDecember 2019 – we’ll be operating personal geography is based on how positive steps, namely developing a Firstly, as the devolved nations get more within central government. There misunderstand the Crossrail brand. all the way to Reading and feeding long it takes to get somewhere, not how National Infrastructure Plan (NIP) which powers there will be no need for separate might even be limited revenue-raising But from day one, as we did on trains from there though the tunnels, far is it. Crossrail will change the map of sets out an infrastructure pipeline, and departments for Scotland, Wales, and opportunities through the selling off of Overground (Which TfL took over and the end state of Crossrail as currently London. setting up Infrastructure UK, a unit Northern Ireland, and a single Ministry for surplus buildings. expanded between 2007-12) we will be planned. within Treasury that provides advice the Devolved Nations could be instituted. The idea of a combined Department staffing stations all hours that trains HS2 is about to start procurement. on the UK’s long term infrastructure Additionally, much of the work done for Infrastructure is one that, in my run and cleaning and refurbishing the What is the thinking behind the What are the key lessons for them needs. There is still, however, by DECC, DEFRA, and DCLG could be opinion, must be discussed, and the trains and the stations. phased opening? from Crossrail in terms of the little concentration of expertise; combined into a reconstituted Department political parties should consider making zzMay 2017 – we introduce the first of There is great merit in having a link between construction and departmental divisions still exist; and for Environment with a revised brief. a firm manifesto commitment to look at the new trains between Shenfield progressive programme of bringing operations? innovative financing solutions have not A Department for Infrastructure establishing it. and Liverpool St and that will be the elements into service. It’s common HS2 have links with Crossrail and it’s been developed. Moreover, there is the would become responsible for any more high profile and will begin to sense but sometimes there is pressure self evident really. The earlier you think inevitable impression that Treasury has further NIPs and the advantages of Coming soon: demonstrate what’s coming with to have a big iconic day. With Shenfield about operations the better and Crossrail a final veto in any case. this are numerous. For instance, the ACE is working with Stephen Crossrail. That’s when people will to Liverpool St for instance we’ll have has had a big input from the operations Now is the time for radical interlinking nature of transport, Hammond MP on a paper start to understand how different hundreds of thousands of in service team as it’s developed. Progressive change. A unified Department for housing, power, and broadband could outlining how a Department for Crossrail is – these trains are miles with the new stock to learn opening makes sense. And whilst Infrastructure could overcome past be taken into greater account when Infrastructure would work, expected 200m long, walk-through with air from before we ramp up for the full technology is moving at such a speed you policy failures and bring coherence making decisions. The faster roll-out of to be launched on 26 February. For conditioning and up to the minute tunnel service. And it gives MTR a need to be clear and consistant in how and skill to project implementation faster internet connections, for instance, information please contact ACE passenger information systems. And more progressive timescale to hire and often you want trains to run and how and management. This Department might alter priorities in regards to the policy manager Peter Campbell at they can take 1500 people with nearly train new personnel and give them many people you want them to carry. would assume the responsibilities of siting of housing development and [email protected].

16 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 17 Company profile Preparing for a bright future International consultancy and construction company Mace has big plans to continue growing. Antony Oliver speaks to chief operating officer, major programmes and infrastructure, Jason Millett about the opportunities and challenges ahead. Top: Birmingham New Street station redevelopment was a landmark scheme wenty five years ago five along the way as staff leave to hit the involving Mace. Bottom left: Mace is professionals set up a new project firms’ planned growth to 7000 staff. expanding from iconic buildings to T management business with the Meeting this considerable challenge, he track related work. Bottom right: The goal finding “a better way to deliver for explains, means doing things differently. development consent order application clients”. For a start, Millett points out, that it will for the A14 project was submitted in Back then Mace was all about making mean changing the perception of the December an impact in the commercial building firm as an employer and appealing to market with lean teams driving value people who perhaps would not otherwise through collaboration and thinking consider a career in the construction harder about the questions that really industry or a role at Mace. mattered to clients to get the right That starts, he says, by attracting a “Branching out into nuclear and cost work and starting to broaden our alongside Network Rail on the Great outcomes. more diverse workforce and ensuring transport is about securing bigger risk profile, bringing with it a greater Western Mainline. A quarter of a century later the that the firm is somewhere that all programmes of work over longer reward,” explains Millett. “We would “Rail is an exciting market for us business, now with different but equally people want to work. periods,” he says. “Clients want rather work with the client to develop and we think that there are some independent management, is bigger “The emphasis is to bring more men something different because they are not a better service than just continue to really big opportunities for us around and broader with a recent portfolio and women into the business but with always getting what they need from their provide staff and resource to meet the the HS2 project,” he explains. “HS2 including eye-catching projects such more balance in gender,” he explains. existing supply chain. But it is also easier client’s existing needs.” is a game changer for the economy as the London 2012 Olympic and “Not by positively discriminating but by to articulate to people why it is worth It is a similar situation in transport but also for the industry. It is a long Paralympic Games, the Shard and making the business more attractive to their while joining a firm like Mace.” where Mace is targeting both the rail term commitment with a focus on Ashghal in Qatar. “Clients want something all – doing it for all the right business “We are trying to create career paths and road sectors for potential growth. regeneration that gives really long term Today the business encompass a different because they reasons.” to show people how they might progress “We are very privileged to have benefits to the nation. We are talking global portfolio of programme and Across the board Mace is looking at within the company. This, combined been working on some of the nation’s about a catalyst for 20 to 30 years of project management, cost consultancy, are not always getting its policies and procedures to ensure with enhancing the performance flagship highways projects such as the development.” construction delivery, facilities what they need from their it is both family and lifestyle friendly appraisal process, instils us with A14 and the Highways Agency’s smart Millett has recently been involved management and most recently a more so that having attracted the right staff, confidence that we will yield positive motorway delivery programme. It has in the steering committee for the diverse portfolio of infrastructure existing supply chain.” they stay. Additionally they are looking results,” he explains. allowed us to build our credibility with Infrastructure Plan for London helping projects. for people who themselves would not Project management skills he says the Highways Agency and built up our to shape the capital’s development over “We want to continue to build the Jason Millett have previously considered a career in are transferrable and that gives the skills base,” he explains. the next 30 years so is well aware of the size of our infrastructure business infrastructure. opportunity to build on those skills and “But we have also been able to impact that investment can make on and we need to really grow it over the “At a graduate level we are now gain specialist experiences. transfer skills and learning from other the local and national economies. next five years,” explains Jason Millett, taking on people with arts degrees and For example, this month, working sectors – the lessons learnt from the But equally he understands that Mace chief operating officer for major the same when it comes to recruitment. geography degrees,” say Millett. “We are in joint venture with Atkins and French Development Consent Order (DCO) the substantial forward pipeline of programmes and infrastructure. “Whichever way you look at it we fortunate that as we have a consultancy nuclear specialist Areva, Mace won planning application work in the energy infrastructure project work that the “It is a great market at the moment have a perfect storm around staff and and contracting business it is easier to £1.72bn contract to design and construct sector were passed into the work we did UK is now blessed with is also in but we really cannot be complacent resourcing,” explains Millett, reflecting look at broader skills.” the so-called “silos direct encapsulation on DCO for the A14, for example.” many ways the root cause of the skills as we are competing with firms from on recent reports that an additional In addition Mace’s international plant project” at Sellafield. But it is the rail sector that offers shortage. The clear problem, says Millett all over the world and, with massive 500,000 people or more will be needed footprint means that it can transfer This complex project involves perhaps the greatest long term is the government’s consistent failure consolidation going on there are now to deliver the UK’s current pipeline of skills in and out of territories – filling processing intermediate level waste transport opportunities. over the last decades to build skills in some very big players out there.” infrastructure work. short term requirements but also recovered from one of the oldest nuclear Work on high profile rail stations preparation for the projects. The plan for growth will see the firm “But our 2020 ambition is to get to proving staff with valuable experience waste silos on the Sellafield site and such as the Birmingham New Street “The government is right that it is for expand over the next five years from £2bn turnover and to achieve this goal outside their home markets. then packaging it for long-term storage. transformation have given Mace a the industry to build up its own skills,” around 4500 staff to a whopping 7000. means we need more people. So you have Entering new sectors is another way This work sits alongside Mace’s credible CV in the industry. But it is also he says. “But it needs to continue to It is a bold ambition and one that, given to look at new pools of labour,” he adds. that Mace is attempting to broaden its existing nuclear new build and now branching out from the buildings build the pipeline of work across the the current pressure on available talent And despite having “a respectable talent pool and in particular the firm decommissioning portfolio across sites dominated work and has already gained built environment so that the market in the market, Millett is clear it will churn rate” as Millett puts it, the reality is targeting the burgeoning energy and across the UK. a strong foothold in new areas such has the confidence to recruit and invest require more than simply doing more of is that gaps will also have to be filled transport sectors. “At Sellafield we are looking at target as the electrification market working in training apprentices and other staff.”

18 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 19 Business

Firms were unanimous in their view with industry it helps them to attract that the market was growing and that Participants: students,” said Liz Brown, partner at ensuring that this growth is profitable is CampbellReith. a challenge considering the rising costs zzSteve Wooler, managing director, At Tony Gee and Partners, Nicholson from existing staff salaries to resourcing BWB Consulting said that the firm sponsors 40 students Enabling new projects. This means that the tide zzDavid Dryden, managing partner, through University which has been is slowly turning from a buyer’s to a Cundall “enormously successful” with an 88% seller’s market for consultancy services. zzNeil Smith, senior partner, Max retention rate. It is also one of only “There is more work and then you need Fordham a few SME consultants to take on more staff and it costs a lot and then zzAndrew Almond, partner, Pick apprentices through the Technician margins fall as fees are still low and Everard Apprenticeship Consortium. “If we take payments are sometimes late – so it zzElizabeth Brown, partner, on an apprentice between 16 and 18 it profitablehas to be really good work or we may CampbellReith gives them the opportunity to get on say no,” said Paul Menzies, executive zzGraham Nicholson, executive to the ladder that can take them all the director at structural consultant Curtins. managing director, Tony Gee and way to Chartership,” he said. Others agreed that the industry is Partners LLP Another area where SME firms are currently in a transition phase. “We zzPaul Menzies, executive director, recruiting is in absorbing some of the are certainly seeing a shift change. We Curtins staff that leave companies that are growth are finding that clients are open to the zzMark Ingram, managing director, in the midst of takeovers or mergers. opportunity to get better value and for GHA Livigunn Others such as NG Bailey said that they that they will pay a fair price,” said Neil zzPaul Jackson, director, NG Bailey were successfully re-hiring some of the From the rising cost of growth to outsourcing models and Smith, senior partner at Max Fordham. zzTushar Prabhu, director, Pell staff that had to be let go during the However on the flip side some Frischmann Consulting Engineers recession. technology investment, small and medium sized business companies said that many clients were zzNeil Sandberg, managing partner, A lesson that some firms have discussed today’s pressing issues with Infrastructure still in recession mode making decisions Sandberg Consulting Engineers learned from the recession is to be on the basis of lowest price. “Aspirations zzFergus Gilmore, managing director, more commercial regarding cashflow. Intelligence supported by Deltek. don’t always match reality; companies Deltek In November the ACE revealed statistics may say they seek value, but when it zzChris Duddridge, senior business from its latest SME Benchmarking study comes down to it the guys running director, Deltek which highlighted that the average the project still appoint on the basis of payment term was 81.5 days and 50 cheapest price,” said Wooler Top: David Dryden, Cundall; Neil Sandberg, % of these payments were beyond the Ensuring a fair price is paid, and we see in BIM is people thinking outside Sandberg Consulting Engineers; Tushar contract terms. Some firms said this profit is made also means that some the box. We come up against barriers Prabhu, Pell Frischmann. was actually higher and said that they firms are renegotiating contract terms where people say ‘this is not part of my Middle: Paul Jackson, NG Bailey; Paul were working to bring this down, but with their clients, and in some cases job’. It may not have been 2 years ago Menzies, Curtins. some felt that 30 days was an unrealistic walking away, as well as taking a closer but, actually, it is now and that is driving Bottom: Graham Nicholson, Tony Gee expectation. However others pointed look at their costs. “It is all about some real excitement as it is making and Partners; Elizabeth Brown, Campbell to exemplar clients that pay within 21 profitable growth, organisations are people’s roles more dynamic,” said Reith; Neil Sandberg, Sandberg Consulting days. “We have benefitted tremendously taking an almost forensic approach to Andrew Almond, partner at Pick Everard. Engineers. from that, and it is the sort of regime their cost base to be as competitive as For internal management firms that we expect,” said Paul Jackson, possible and also to make acceptable debated the use of ERP systems and from the 100 days that a bespoke director at NG Bailey. margins at the same time. Rather admitted that the cost was a deterrent. ERP model would have required in From the discussion it was clear than just look at the overall project, “We looked at business management the past. However Gilmore warned that the variety of clients have many people are breaking down the various systems and we have really been put off that investing in technology alone is payment terms from banks that demand elements to ensure that each part of by the cost, which can reach 6 figures. I not enough to derive the potential discounts for payments within 60 it is profitable,” said Fergus Gilmore, almost think we need a “light” version benefits. “Technology without a change days “Why should I fund a bank?” said managing director, Deltek. to cater for the SME industry,” said management strategy is a waste of Dryden; to some that offer large advance Investing in new technology to Neil Sandberg, managing partner at money. It is really important that anyone payments and monthly income. Firms mall and medium sized consultants on income, ensuring mutual support support this and stay ahead of the Sandberg Consulting Engineers. looking at an investment in technology have responded to this in a number of are responding to today’s buoyant throughout the firm. “We have a single curve when it comes to industry Interestingly Deltek agreed and said considers the change aspects to make ways. “On our oversees projects we are Smarket in a variety of ways, outlined bottom line and there is no infighting, development was also outlined as a key that in the past it had not been able to sure the investment is very successful.” trying to negotiate away from milestone attendees at the Infrastructure Intelligence this makes a huge difference.” issue for firms. BIM for example has provide a solution tailored to smaller Beyond the technology firms are payments to giving a discount if people and Deltek round table in December. Other firms agreed that moving now been widely adopted but there companies, however recently this has also investing in people, particularly pay monthly. You can offer a discount Challenges and opportunities are being the work to the appropriate cost base, remain teething troubles. “My difficulty changed. “The truth is that 2 years ago graduates and in some cases because you are de-risking the project met with innovative solutions and whether in the UK or overseas, was with BIM is that it is supposed to be our solution was not tailored to meet apprentices. “We cultivate relationships for yourself,” said Smith. interesting strategies from “northshoring” key element of ensuring sustainable a consistent, collaborative system for the needs of a small business. We have with our local universities and try and Against a backdrop of growth in work out of London to “mainlining” growth. “We set up our London office working but there are so many different now invested thousands of hours of identify students and get them in for revenue and staffing levels reducing graduates from key university courses. with the intent to undertake the bulk of clients out there with many different research finding out the relative needs the summer and if we like them we payment delay is even more important. “We couldn’t do some of the work detailed design work from our ‘engine ways of working, and different demands of small to medium engineering firms will sponsor them for the rest of their Planning for growth is indeed at we do without northshoring, delivering room’ in our Midlands heartland on how BIM is presented to them, that to create a best practice standardised degree,” said Mark Ingram, managing the forefront of the collective minds of work from Newcastle, Birmingham and where employment costs are much we have to invest in all the systems model which can be fitted to your director at GHA Livigunn. SMEs and is a nice challenge to have Manchester to the London office,” said lower. Although that’s still a lot more and the cost is quite phenomenal,” said company at a cost suited to SMEs and in Other firms too said that they have compared to the bust years. Enabled David Dryden, chairman of Cundall. He expensive than, off-shoring to Asia it’s Graham Nicholson, executive managing a much shorter time frame,” explained built links with Universities, in some by smart graduates, new technologies, explained that unlike some of the bigger much easier to manage delivery and director at Tony Gee and Partners LLP. Deltek senior business director Chris cases by giving lectures and tutorials. passionate engineers and forward consultants the company’s regional quality,” said Steve Wooler, managing The advantages of BIM however are Duddridge. “There is a symbiosis here because thinking clients, SMEs are set to reap offices do not compete with each other director at BWB. being realised. “One of biggest benefits This is a significant acceleration if Universities can show that link the benefits of their own innovation.

20 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 21 Management

own skill set to champion a particular 6. Drive innovation back into the liability and “events based’ professional key result area (KRA). KRAs may include participant organisations. indemnity insurances. ‘safety’, ‘value for money”, ‘waste Often the fertile environment of the elimination’ or ‘systems integration’. integrated team will develop new ways 9. Monitor performance in terms of of doing things (for example, better project outcomes and culture achieved Creating a 3. Ensure legal and commercial integration of BIM, new safety protocols, Don’t leave alliance culture to chance. frameworks support the level of better training tools, new understandings When you think about it, you want to integration needed. of subcontractors business models rapidly develop an integrated culture Clarity of outcome desired by the owner and skill sets). Look for opportunities that feels like it’s been operating that and aligning the legal and commercial for these to be taken back into other way for years. We will often institute a models with this outcome are vital. forms of contract within the participant The Eastern Busway project. A dedicated high performance management plan successful There’s not much point in having a organisations. Then careers get enhanced, busway in Brisbane, Australia, delivered by that includes strategies, processes, tools participant distracted from the client’s competitive edges honed and others the Eastern Busway Alliance comprising and techniques aimed at building and purpose through having to protect their wonder at the innovation of the team. AECOM, SKM, Leighton Contractors and accelerating positive team processes, own interest first in a complex project Queensland Department of Transport and behaviours and outcomes that will amplify situation. In Australia, most alliances 7. Capture innovation and lessons Main Roads. the project’s results across the board. Many have had a ‘no blame’ clause which forces learnt and demonstration of value alliances will have an “alliance culture” alliance integrated behaviours to resolve issues. Alliancing/collaborative contracting is KRA with several measures that monitor This has been picked up in the four-level relatively new (again). There’s real benefit 8. Balance risk and insurance the success of the plan. As collaboration becomes a hot topic for 2015 integrated project delivery (IPD) structure in capturing innovation and lessons learnt Risks tend to end up in a bucket of in the USA, but is often the hurdle that in order to demonstrate the value in the managed and unknown risks with 10. Have fun. AECOM’s Richard Morwood gives his top 10 tips for lawyers struggle with. In the USA I saw model. As alliances matured in Australia, contingency allocated, or a bucket called Complete focus on the project getting the best out of project alliances an article that proclaimed that ‘no blame’ demonstrating value became mandated insurable risk with potential deductibles outcome in a fully integrated team can clauses weren’t necessarily effective as a progressive process throughout the and premiums to pay. All actually sometimes lead to an intense work because they hadn’t been tested in the life of the alliance. Reporting using a come at a cost and the best strategy is environment that leads to some people uilding on 10 years of alliancing courts! On the commercial side equity and tool like an innovation register at board obviously to manage, design out or avoid working to an unsustainable level. Be lessons learned in Australia, simplicity are key. Any time spreadsheets level is a vital part of this development. the risk whether insured or not. Consider aware of this and use circuit breakers BRichard Morwood, industry are required to explain a simple model, Typical elements can fall under three them all in the same bucket and look at (small or large) to relieve the load on director for integrated project delivery it can’t be simple and it won’t drive the categories: cost elements whether project, how the management processes can be individuals or teams. The benefits at AECOM, and his colleagues decided behaviours you want. external or lifetime; hard elements such matched to the type of insurance being get paid back many times over. Plus to write ‘Alliancing – A Participants as functionality, quality, timeliness or used. For example, contemplate how infrastructure projects and technical Guide’. The 2008 book was a response 4. Role clarity and accountability soft elements including sustainability, you can get access to LEG3 extended careers are seen to be desirable places to what Moorwood describes as a are required to ensure efficiency of community and stakeholder relations. contract works, design write back public to work! vacuum of alliancing practice earthed delivery in real life case studies. Here he gives One of our major program collaborative Infrastructure Intelligence his top 10 contracts for a $1bn flood reconstruction tips for creating successful alliances. program almost ground to a halt because everybody was trying too hard to do 1. Get the governance structure right everything. Board members were micro- Making sure the right parties are at the managing, managers were directing ‘top table’ is fundamental. Consider policy, and deliverers were confused which parties are able to contribute about direction. Thankfully we realised intellectual property in managing there was an issue and rectified the towards excellent outcomes and situation for a much better outcome. constraining risk. For infrastructure Once role clarity is provided in an projects this will typically involve the integrated team, accountability for owners, designers and lead constructors, performance is much easier to manage, but might also include a key supplier or “There’s real benefit in wasted effort and rework eliminated, and even a lead insurer depending on the capturing innovation innovation can flourish. nature of the complexity. Whilst my preference is for ‘boards’ no larger than and lessons in order to 5. Keep the drivers and messaging 8 to 10 people that limits the number of demonstrate the value in simple. organisations present, other mechanisms People can’t respond to too many such as sub-alliances with representation the model.” messages and drivers at once. Three at board level can also be used. is usually optimal. Where a client Richard Morwood introduces 12 KRAs, a good question to 2. Ensure that leaders lead. ask is: ‘What is particularly important In an alliance, a board isn’t just there for this project?’ After some serious to ensure governance and compliance contemplation often this can be whittled procedures are effective. The participants down to three that get incentivised, must lead. Not only must they set another three that are reported to the an example in putting the interests board, and others that are set at a sub- of the alliance ahead of their own project or team level. The real point of organisations’ (in these frameworks these is to drive behavioural change. ‘best for project’ is how an organisation There’s little benefit if KRAs overload or benefits anyway), but they must use their confuse people.

22 Infrastructure Intelligence | January 2015 Risk management

ontractors, the election and “That said, though, in this recovery fragmentation of major claims so far have not quite followed the Election and EU referendum Cprogrammes by clients resulting pattern of earlier post recession activity. in little visibility of future workload After the recession of the early 90s the Consultants do not like uncertainty are all causing consultants concern in courts were rammed with claims in the and there is nothing more uncertain terms of managing risk as the industry mid years of the decade. It’s not the than a general election and indeed recovers from recession, the latest same now. Things are resolved quicker the possibility of a referendum on Contractors Griffiths & Armour/Infrastructure and there are less disputes.” Britain’s membership of the EU Intelligence breakfast debate revealed. Most of the consultants were shortly afterwards. “The private And the greatest concern is resigned to the inevitable. “There is no sector doesn’t like uncertainty contractors. Industry has been awash doubt that if a contract is losing money either,” said BDP director Peter with stories of the companies who put we are going to feel some pain too,” Drummond and in terms of in cut price bids in recession to hang said regional and divisional managing commercial investment if it hasn’t on to cash flow that are now finding director for Buro Happold Neil Squibbs. started by the end of 2016, it won’t.” themselves in all sorts of trouble as an “It’s all down to our record keeping; According to Waterman chief top the risk unexpectedly quick recovery leaves them that’s the only thing that can help us.” executive Nick Taylor: “I am locked into fixed priced deals just as “What we are tending to see concerned that there could be a slow costs of materials and labour are rising. when companies do a lot of work for down in 2017 resulting from the One remedy now being seen is to put contractors is that the claims come to proposed European referendum. If a in claims to replenish that lost cash, them more quickly than if they are referendum occurs, the uncertainty said our group of consulting bosses. And working directly for a client. We have may reduce property development consultants are a particular target as also seen an increase in the quantity of and investment and companies will they are at the front end of recovery and claims, a lot of them spurious, during not recruit staff.” register contractors can see them doing well and the recovery in the last two years,” said earning increasing margins. Tony Gee director Richard Prosser. “When the cost of a brickie has Not all businesses had the same What are the risks concerning consultants in the current market? doubled on jobs bid 18 months ago, what experience. According to Pell Project fragmentation was a marginal cost has gone through Frischmann company secretary Linda And how do you help alleviate them. The latest Griffiths & Armour/ the roof. At the same time consultancy is Roberts: “When the recession started, There is a perceived lack of doing well even though it is stretching at from 2008 onwards, there was a spate confidence within clients – both Infrastructure Intelligence meeting found out. Jackie Whitelaw reports. the seams. We expect more claims,” said of notifications led by contractors who public and private sector – which BLM partner Keith Lonsdale. “And we are had priced at the margins. There is less means they are not prepared to noticing that there is a long lead time. appetite now.” commit to a whole project but Issues from 2009/10 are just coming to For Arup director Alison Norrish want instead to build it in stages. light now and from even earlier. this was all to be expected from the Not efficient, and not good for risk current procurement cycle where the management said the consultants. popularity of design and build in various “If we want to manage risk Participants: guises, which she understands, means we need to commit to solve all jobs are mostly contractor led and will the problem not put together a zzAlison Norrish, director, Arup be going forward – from Crossrail to jigsaw one piece at a time which is zzKeith Lonsdale, partner, BLM HS2 and Thames Tideway Tunnel. “For expensive and difficult to manage,” zzNeil Squibbs, regional and consultants that’s high risk territory said Royal HaskoningDHV director divisional MD, Buro Happold and likely to be a bigger challenge than Steven Trewhella. zzDenise Bower, chief executive, anything else.” “Things are a little clunky, you Major Projects Association The remedies need to include a focus can’t really plan. With frameworks zzLinda Roberts, company secretary, on risk management even when you there is often that euphoria when you Pell Frischmann are stretched because there is suddenly win it, but that soon dissipates when zzChris Rhodes, head of project so much work, said Griffiths & Armour reality set in and a year later you management, Ramboll chief executive Stephen Bamforth. realize that despite your best efforts zzSteven Trewhella, director, Royal “There is now money available so you you have still had only limited work HaskoningDHV will start to see claims coming back to from it. Was the work ever really zzRichard Prosser, director, Tony Gee life. And you have to make the effort there? You would be brave to recruit & Partners to protect yourselves now because by solely on the back of a recently won zzScot Parkhurst, managing director, the time the claims come through the framework.” said Ramboll’s Rhodes. Tyréns insurance market will have hardened zzNick Taylor, chief executive, and will likely coincide with the next Waterman recession which would be a double process and we are prepared to tell a zzGareth Arber, head of legal, WYG whammy for consultants.” director that perhaps this isn’t the client zzSteve Bamforth, chief executive, Businesses admitted to becoming for us when this is perhaps the third Griffiths & Armour more hard nosed and more selective job on which we’ve worked with that zzAntony Oliver, editor, about who they worked for. “It’s my job company and we’ve lost money.” Infrastructure Intelligence to get a grip on our projects and ensure There is also an issue with time taken zzJackie Whitelaw, associate editor, our teams become more cogniscent by contractors to resolve claims from Infrastructure Intelligence of risks,” said Ramboll head of project consultants. “Working with contractors management Chris Rhodes. “We are is challenging,” said Tyréns managing focused on a stringent decision gate director Scot Parkhurst. “Their

24 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 25 Risk management

What is integrated project insurance?

IPI is an innovative form of insurance costs and procurement times can be that insures project risks rather than achieved in practice and to encourage liabilities. It operates on a blame-free the insurance market to create a basis and insures outcomes rather than commercially viable product that can causes; all members of the project are be made available to both the public covered – including the client – and all and private sectors. rights of subrogation are waived. IPI IPI insures the integrated supports collaborative working and the project team’s performance against use of truly integrated teams, helping specification, time and cost. Liabilities “Our experience is “There is no doubt if a “All consultants should “If we want to manage to drive out waste, deliver innovation to third parties arising during the that integrated project contract is losing money shoulder the responsibility risk we need to commit to and provide better, more cost effective construction process are covered. solutions to meet the needs of clients. There are no internal liabilities to insurance enables true we are going to feel some of training engineers for solve all the problem not It is the only insurance product consider and the project team operates project collaboration and pain too” the future” put together a jigsaw one capable of supporting BIM Level 3, on a completely blame-free basis. according to Griffiths & Armour chief Managing it all would be a project has the potential to be a Neil Squibbs, Buro Happold Nick Taylor, Waterman piece at a time” executive Stephen Bamforth. board which includes the client. There game changer” Government is convinced of its would be a light touch audit of designs Steven Trewhella, Royal HaskoningDHV value and has committed to trialling by an independent party. Fees earned Gareth Arber, WYG IPI as part of its Construction on IPI projects would not need to be Procurement Strategy by supporting declared under consultants’ annual PI demonstration projects to show covers. There will be no duplication of resources are stretched and if you put industry we need to recognise this accounts and an informed client. And it continued and increased throughout that hoped-for savings in capital insurance costs. in a claim for compensation their QS and get into the client side so the needs integrated project insurance.” the project. Our experience is that team are juggling a lot of stuff and are BIM strategy is set from the outset IPI underwrites, encourages and not interested and want to deal with it and the CIC protocol is recognised in Integrated project insurance enables true collaboration and has the down the line, at the end of the job. But the contract.” Issues ahead included IPI is an innovative form of insurance potential to be a game changer for the What is the CIC BIM Protocol you need it dealt with or the issues will having enough people trained to that insures project risks rather than construction industry” just build up.” implement BIM. “In terms of risk, liabilities. It operates on a blame-free basis G&A has been working with This is a supplementary legal zzThe protocol should detail all Bamforth said that the lessons to we need to make sure that our staff and insures outcomes rather than causes; government through the Cabinet Office agreement that is incorporated into Building Information Models that be learned are the same ones that are appropriately trained otherwise all members of the project are covered on developing IPI. “There is very strong professional services appointments are going to be produced by all have been there for years – get the risks will increase” said Waterman’s – including the client – and all rights of buy-in from there. It can see that the and construction contracts by means parties contracted to the employer documentation right and keep it up Nick Taylor. “BIM requires senior subrogation are waived (see fact box). difference with IPI is that it drives of a simple amendment. The protocol on the project to date; understand the contract and engineers and technicians who have “It is designed to encourage collaboration even when things go creates additional obligations and rights zzThe appendices have to be work to it; and don’t cut corners with extensive experience so that they collaboration,” Bamforth explained to an wrong,” Bamforth said. for the employer and the contracted completed with project specific insufficient resources. can review the output from the audience who grew more enthusiastic This also means that the biggest party party. The protocol is based on the direct information for all projects. This computers. During the recession we the more they understood the process with the deepest pockets no longer contractual relationship between the should be available from pre- BIM continued to invest in training and of IPI. “The client pays for the insurance assumed to be the right organisation to employer and the supplier. It does not appointment documentation such No meeting of consultants can not this has given us an advantage over as part of the project cost plan and will lead the project. “It could be a designer create additional rights or liabilities as the Employer’s Information mention BIM these days and the G&A our competitors. Waterman in the past claim on the insurance if there is an who leads the team, it doesn’t have to between different suppliers. Requirements. breakfast was no exception. There was has recruited apprentices direct from issue. All parties to the project take the be the contractor. But what will happen The CIC BIM Protocol has been zzChanges to the protocol and its concern that consultants were not in schools as we have found that they degree of pain proportionate to their is that good, collaborative teams will designed to be used by construction appendices should be treated as the driving seat on BIM implementation tend to be more loyal in the long term ability to pay. It means the team can’t become high value assets attracting clients and contractor clients. It is variations to the contract as they did not have the funds to invest than university graduates. However, all ignore problems and have to work lower premiums. Bad teams will be possible that consultants and contractors that it was perceived contractors did consultants shoulder the responsibility together to sort it out.” costed out of the market,” Bamforth said. will use a version of the protocol to The CIC BIM Protocol Appendices are have. But on a positive note there was of training engineers for the future. WYG’s Arber has experience of manage the work of sub-consultants and the only documents which need to be general agreement that the CIC BIM We are all going to find ourselves working with IPI on one of the trials sub-contractors. completed with specific project details. protocol was building up a head of competing for the same resource.” being supported by the government on Risk and insurance hub The key principles are: zzAppendix 1 – Model production steam and helping to level the playing Royal HaskoningDHV’s Steven a public sector job. Infrastructure Intelligence is working zzAll parties that are responsible for the and delivery table. This must field. “What I have started to see Trewhella agreed but questioned how “Some of the seasoned team were with Griffith & Armour to help share production of Building Information include references to all Building encouragingly is the specification of the consultants could externalise the impact sceptical at first but were quickly best practice across the industry as Models on behalf of the employer Information Models that are CIC BIM protocol and it prevents one of overheads particularly when projects won over by the experience,” he said. a fundamental step in helping raise should have the protocol incorporated required by the employer at each party disproportionately floating the were being worked on in phases with no “Getting the right team together for an the industry’s performance when it into their contract/appointment. project stage. risk,” said Tony Gee’s Prosser. guarantee that the next phase would go IPI project is very important and there comes to managing risk. A number zzThe same version of the protocol and zzAppendix 2 – Information Clients need to be helped to ahead. “Only through collaboration can were workshops to get that established. If of important case studies have been appendices should be incorporated requirements. This details the understand the implications of BIM we afford it,” he said. people are adversarial, as some traditional brought together on-line at www. into each contract. information management standards more and to understand the protocols In terms of Professional Indemnity forms of contract require, they need to infrastructure-intelligence.com to zzThe wording of the CIC BIM Protocol that will be adopted on a project. for sharing risk, it was agreed. “We Insurance, the insurers are pretty be re-educated or they are not the right highlight lessons to be learned when should not be amended found in a recent review that our staff comfortable with BIM, G&A’s Bamforth people for a collaborative job. avoiding contractual liability claims. are prepared for BIM, but some of our said. “We worked with Beale & Co on “At the project start, all the usual This work will be expanded over clients didn’t understand what it was the CIC Protocol so we are relaxed about barriers to collaboration are broken 2015 to assemble a comprehensive and not all projects were ready for it,” where we are now. But the next stage down so a true team is formed and information resource to help guide said WYG legal director Gareth Arber. to BIM 3 is different. That is where BIM rather than some contracts, where professionals towards a lower claim, “Where we are finding lack of becomes a tool for collaboration and it collaboration is mentioned at the start lower cost future. knowledge is with the clients. As an requires integrated teams, open book and is then forgotten, collaboration

26 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 27 Policy

value can be better matched to those tendering. It will take a major change New policies needed at government procurement level to bar companies of a given size from accessing opportunities, but it should in public procurement lead to a fairer contest,” said Mark Ingram, managing director at GHA Livigunn, which employs around 155 if UK is to meet SME people. Firms pointed to a number of barriers preventing SME inclusion on target warn firms public projects including high bid and compliance costs; unreasonable risk transfer; poor payment schedules; Small and mid sized consultants say government policy contract documents that require means it is missing out on best value. unlimited liability and bespoke legal terms that absorb high costs. Furthermore firms say that it is rofessional services firms are common for large consultants to urging government to implement erroneously count contract staff from Pnew policies to ensure that small agencies as SME content. and medium sized design consultants Figures from the Cabinet Office show are involved in public projects and that in 2012/2013 SME direct spend frameworks. They say that government was £4.58bn or 10.5% of all investment, clients are missing out on the value that a marginal increase on the £4.44bn small firms can bring to public works procured with SMEs in 2011/2012. The by including contract terms, liabilities government estimates that indirect and legal requirements that only major spending through the supply chain to consultants can comply with. SMEs accounted for around £4bn or 9.4% In a round table discussion hosted of spending bringing total procurement by Infrastructure Intelligence and to around 20% of total. Its target is 25% software firm Deltek consultants said by 2015. that changes must be made if the UK Some said that they believe that is to meet its target to devolve 25% of mandating involvement was not the public procurement spend to SMEs by best approach. “I think it is wrong 2015. And at the same time deliver on to force anyone to take on SME’s as its ambition promote the growth of a quota,” said Graham Nicholson, middle sized companies, emulating executive managing partner at Tony Gee the economic success of this sector in & Partners, which has 325 employees. Germany, known as the Mittelstand. “The fundamental problem as I see it is ​“The UK wants middle-sized firms to that the SME value is not being properly drive growth in the UK economy – in recognised. It is as much for us to show fact, a recent Cabinet Office study found that as it is for others to see it.” that SMEs were disproportionately Firms pointed to a number of responsible for creating stable jobs in advantages of using SMEs. “SMEs should the UK. The way to achieve this is for be considered where they have local Clients to force the very large firms or other specialised knowledge. They to bring SMEs formally into their tend to have lower overheads and often supply chains and then monitor that with direct owner involvement where work really does get subcontracted,” rapid decisions can be made,” said Steve said Tushar Prabhu, director at Pell Capel-Davies, partner at Peter Brett Frischmann Consulting Engineers, Top: Tushar Prabhu, Pell Frischmann Associates, which has 474 staff. which employs around 900 staff. Consulting Engineers. To date government has made He says that a key reason that public Middle: Mark Ingram, GHA Livigunn changes to its processes to encourage contracts often fail to bring in SMEs Bottom: Graham Nicholson, Tony Gee and more SME content on public projects is because even when this is agreed at Partners including eliminating the need for procurement stage it is not enforced prequalification questionnaires on and large consultants are unwilling to goods and services under £100,000; bring in sub consultants. providing more visibility of business Other firms say that a direct opportunities and reducing the procurement route where layers of procurement timeline. contracts are specifically allocated to SMEs would be a better approach. Infrastructure Intelligence is working with “Segmenting the public sector market SMEs on a procurement position paper. would provide a more level playing To contribute please contact bernadette. field. The types of contracts and their [email protected]

28 Infrastructure Intelligence | January 2015 Rail Employment

joined in 1995 as a principal quantity suffering from growing skills shortages. surveyor. My major projects experience There is recognition among includes being the commercial Securing talent politicians that action has to be taken The Sweett way manager on the NLRIP; working as a to build and maintain the STEM major change procurement manager skills base in the UK, more recently Gerard Fitzpatrick heads up rail, the fastest growing sector team for the ; commercial seen in Ed Miliband’s statement that manager to close out to deliver in 2015 a Labour government will seek to at independent commercial consultant Sweett Group. He tells redevelopment with Network Rail; and create an extra 400,000 engineers by 13 years on major UK track renewal 2020 by encouraging young people to Bernadette Ballantyne about “getting things done” in the growing programmes. Employers must think big and be creative in their study STEM subjects and expanding infrastructure market. resource planning says Matchtech operations apprenticeship schemes. Where did you get started? However, while useful, solutions such My career started as a trainee quantity director Grahame Carter. as this risk being too long term in scope With 1575 employees in 18 countries surveyor working for a formwork and and need to be coupled with incentives the business has grown hugely since concrete subcontractor, CJ O’Shea & Co s the fastest growing economy the UK’s infrastructure network must that encourage graduates and qualified its founding in 1928. Which parts are Ltd. I learned from the sharp end of the in the G7 the past year has be improved to support economic engineers to choose a career in the growing today and why? importance of cash flow management A seen growing optimism about growth. As a result, demand for sector now and stay committed to it. The infrastructure sector is anticipated and the intricacies of getting paid by the strength of the UK’s recovery. The experienced engineers is expected to Attracting new people into the industry to have the biggest growth over the main contractors in the 1980s. I then Organisation for Economic Co-operation continue to grow, regardless of where is not beneficial if you continue to lose next five years, particularly energy and moved into general construction as a and Development predicts that this the investment comes from. And more experienced staff. transport. Major growth was initially senior quantity surveyor. I was lucky will continue forecasting GDP growth herein lies the rub. While the sector For those currently working in triggered through successfully securing enough to achieve my MRICS status of 2.7% in 2015 and 2.5% in 2016. is experiencing strong growth, it has a engineering, there is likely to be a rich a major framework with Transport through day release and this type Significant public sector investment on dwindling pool of engineering talent choice of jobs in the infrastructure for London. This, coupled with our of learning approach is something projects, notably infrastructure, is also to draw on to build the infrastructure sector in 2015. While employers will continued work for Network Rail I am really happy to help the next providing a driver for growth. being commissioned. reap the rewards of the much needed and commercial services delivery at generation of people with, who will In his Autumn Statement, the In Matchtech’s latest Confidence investment, they will also be feeling Heathrow and Gatwick airports, have steer construction forward into the Chancellor announced £466bn in spending Index, we surveyed more than 500 anxious about delivering what they seen the transport sector in particular digital era. as part of the National Infrastructure engineers in the infrastructure sector need to when there is such fierce go from strength to strength. Plan. This includes £15bn for the asking what policy initiatives they competition for experienced engineers. Rail is the fastest growing sector team How are you supporting the next strategic road network, £5.8bn for local would like to see in the political parties’ This is where resource planning will in Sweett Group with 75 individuals Gerard Fitzpatrick – “I am a firm believer generation of people into the road maintenance and £2.3bn for flood manifestos to help drive growth. Two form an integral part of their success in working on rail related projects in the UK. in allowing people to do the type of work company? defences. This, in addition to projects such fifths (39%) said increasing the level 2015. Employers must think ‘big’ when they enjoy doing” One of the key achievements this year as Crossrail and HS2, amounts to a sizable of infrastructure investment as a addressing their future recruitment Which current projects best represent is the implementation of the Sweett investment in the UK’s infrastructure. foundation for future economic growth needs, looking to engineers from other your division in Sweett Group? Group Apprenticeship scheme. This While on the surface this is a reason was the number one priority initiative, sectors and thinking about how their Over the last 20 years we have helped scheme is designed to attract school for the infrastructure sector to feel followed by greater investment in STEM skills can be transferred and utilised. our clients deliver over £30bn worth leavers to a career in our industry, above confident in the future, the upcoming (Science, Technology, Engineering, and Flexibility on the part of employers of complex, challenging rail and other professions. The apprenticeship General Election on 7th May 2015 does Mathematics) apprenticeship schemes, would also help to reduce the skills infrastructure projects in the UK and program provides a career path for bring with it considerable uncertainty. also chosen by 39%, and a clear strategy shortage. Greater efforts to accommodate overseas. Three current commissions these school leavers, with a 2 year NVQ Few projects are completely safe from for future investment in UK energy working parents, and help long-distance that stand out are London Bridge Level 3, followed by the organisation a change in governing party. HS2 has infrastructure and clarity on the energy commuters to maintain a better work-life which is going to make a significant supporting the transition into a HNC cross-party buy-in, but more recent mix chosen by 36%. balance (such as home working) would difference to people’s journeys, as well and degree program. Ultimately it is a announcements, such as the £15bn road Engineers want to see investment enable more engineers to provide a wider as reaping regeneration benefits; London career path towards Chartership. plan, may not get off the ground at all. in infrastructure continue but also range of roles. Overground where we are sole provider This uncertainty makes planning recognise they have to see a parallel Providing a working environment of cost management on Transport for Looking to the future what sort of difficult for many businesses in the investment in skills and training if the that helps those approaching retirement London’s £330m capacity improvement people will find a happy home at sector, but regardless of what happens UK is to build and maintain the talent it or recently retired is also essential. programme; and our recent involvement Sweett Group? in May, there is wide recognition that needs. Many current projects are already These experienced workers provide an at Blackfriars redevelopment project. I don’t think there is a typical “Sweett” invaluable source of information that person but I am a firm believer in can be drawn upon to help train less What are your biggest challenges / allowing people to do the type of experienced engineers, in preparation opportunities at the moment? work that they enjoy doing, as this for the workload ahead. There are some major opportunities Sweett Group has helped clients deliver results in a better product. Our culture By thinking creatively, solutions can coming to the market in the next few £30bn in projects over 20 years. is strongly focused on enabling our be found to the recruitment pressures years and we have been really pleased people to develop by pursuing further that employers face this year, and when with our growth in the transport team With over 20 years experience in qualifications and attending external they meet those needs they will succeed, regionally. Historically, our focus was multidisciplinary high value rail seminars. At present, 20% of our staff in what is a very exciting time for the on London but we have seen continued projects you have built a reputation are studying for qualifications. infrastructure sector. expansion in our teams in the north and for “getting things done”, tell us more In November, we were delighted south west on projects such as Bristol about your career. to get a 100% success rate for those Rapid Transit, Halton Sidings and a Prior to joining Sweett Group I was completing their APC programme, Want advice? major park and ride scheme in York. We at Mott MacDonald where I was becoming members of RICS. I am proud see this expansion progressing and are project director leading commercial that my team consists of many skilled You can contact Grahame at pleased to have recently been successful management activity for rail projects professionals, 70% are fully chartered [email protected] on the Network Rail Scotland Framework in the south of the UK. Before this professionals. This is an excellent or on where we are one of two key providers. I was at Balfour Beatty Rail which I advertisement for my people.

30 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 31 ACE news

whoever emerges with influence will be are really large corporations and so vital, he adds. the things that affect them are often Arup’s John Turzynski “We would clearly like to ensure that significantly different from the issues it is business as usual in the relationship affecting smaller businesses,” he says. takes over as ACE chair and that means working closely Turzynski’s own career has seen with the civil servants to ensure that him spend the last three decades at transitions are as smooth as possible,” Arup working as a civil and structural Turzynski says. “And of course ACE has engineer managing major global to remain apolitical.” projects and as a senior director of the Meanwhile there is still much work firm driving the business forward. So to do with the ACE business to continue while he appreciates the challenges the process of change championed last faced by small companies he accepts year by then-chairman Chris Cole. he has limited experience of their Development of the Environmental challenges day to day. Industries Commission plus the launch “Having worked for a large company of the new Victoria Street Capital all of my career I need to educate publishing business is, he says, a first myself. But ACE has a number of step towards reshaping the ACE to be services that it can provide smaller ready for the future. companies and can also help them win Danny Alexander is to headline at the ACE conference on 4 March “My feeling is that this is a year of work, overcome barriers and attract building on these initiatives and getting people with the right skills.” be well placed to share observations on power to areas across the UK means them into a strong position – and And as the infrastructure and built the impact infrastructure investment more delivery of infrastructure on with what we have already achieved environment market grows the ACE’s has made to economic growth and a core city-region basis. Panellists the future does look good,” he says potential workload will grow with it. comment on how the consultancy sector will discuss the merits of increased highlighting that continue consolidation However, Turzynski is clear that there is can capitalise on regional devolution engagement between core cities and in the market inevitably means ACE only so much that the ACE can do in a being hotly debated in the wake of the how the consultancy sector can take has to look elsewhere to replace falling year so focus will be important. Scottish independence referendum. advantage of devolution. subscription revenues. It also means working in partnership At this year’s conference, zzhow can the engineering sector Interview by Antony Oliver “Success is that our membership across the industry to provide a united Alexander, who jointly chairs the continue to demonstrate the “The priority must be to overall maintains numbers, the value of voice that maximises impact. National Infrastructure Plan Strategic economic benefits of infrastructure With workload continuing to build across make sure all the parties membership is thoroughly recognised He points to the Infrastructure Alliance Engagement Forum with ACE chief development. With the UK economy all sectors of infrastructure and the built continue to recognise the and that Victoria Street Capital and the between the ACE, Institution of Civil executive Nelson Ogunshakin, on an upward trajectory, continued environment 2015 looks set to be a busy EIC move forward with their business Engineers, Civil Engineering Contractors promises to bring an expert opinion investment in infrastructure remains year for the ACE as it works to prepare value of infrastructure to plans,“ he says. Association and Construction Products on all matters concerning the planning critical to growth. members for the challenges ahead. the British economy” However, engaging members more Association as a great example of now funding and delivery of infrastructure. Alongside Alexander, well-known Not least when you add into the mix effectively is also a key priority, not least the collective voice can change the The National Conference is themed economist Vicky Pryce will speak at this a hugely unpredictable General Election John Turzynski the large number of firms based across conversation with government. around ‘Engineering Growth’ and takes year’s conference. in May. the UK regions outside London. “Being a trusted friend means being place on Wednesday 4 March at the As chief economic adviser at the As new ACE chairman John Turzynski And while ACE is, he says, making constructively critical,” he says. “But Westminster Conference Centre in Centre for Economics and Business points out, it is a year for the ACE to ground in a number of UK regions there ACE ought also to be able to challenge Victoria Street, Westminster, London. Research, former joint head of the UK’s continue its drive, as set out in the is still much work to be done to avoid the industry. It is all very well talking The one day event, now in its eight Government Economic Service and recent three year plan, to help members being London-centric – not least as the about the problems but we are part of it. year, will bring together the industry director general of economics at the capitalise on the opportunities and “Inevitably the election changes the cross-party drive for devolution sees We have the collective ability to help say to discuss and debate a range of issues Department of Business, Innovation and to keep up the momentum that has dynamic of the year because soon we wealth spread outwards from the capital how things can move forward.” including: Skills, she will be well placed to judge been built around the way it influences will be in purdah and decision making and as projects like HS2 act as catalyst zzthe political risk involved with the and explain the value of investment in government. will slow down,” he explains. “But the for regeneration in the regions. delivery of large-scale infrastructure infrastructure. “It is about giving members the priority must be to make sure all the “The skills that we have in the ACE are projects. Leading industry experts Other confirmed speakers include support and information about what parties continue to recognise the value of exactly what central and local government Danny Alexander to will be on hand to discuss how best Darryl Murphy, partner at KPMG clients and customers want,” he says, infrastructure to the British economy both need as they plan their strategies. We really to combat the threat of simmering Corporate Finance and Richard Abel, describing the ACE’s task as “joining up at home and overseas. So we can’t take our are in a fantastic position,” he explains. open ACE National tensions as projects kick off. managing director at Macquarie the dots” to create an integrated service. foot off the pedal in terms of ensuring that “London remains the political centre and zzthe funding mechanisms that can Infrastructure and Real Assets. “We need to help our members to politicians still get this story.” the financial capital of the country but it is Conference in March make or break a project. The debate For further information and to have the right skills in place to address Post-election, of course, a range of important for me to visit members around Chief Secretary to the Treasury Danny continues to rage over how best to register to attend the ACE National their clients’ needs – regardless of their new opportunities will appear with new the country to make sure that we truly Alexander will deliver the keynote fund infrastructure and experts will Conference, visit www.acenet.co.uk size. And we have to provide the right ministers in departments needing help represent the whole industry across the address at the ACE’s National Conference be on hand to set out the options. Every ACE member firm can claim support and back up so that they don’t to get up to speed quickly. country.” in March and kick off an event which zzthe role that SMEs can play on large two free places at the conference. spend time worrying about the routine “Politicians hunger for knowledge Communicating that message is vital will explore the challenges facing the infrastructure projects. While it side of running a business but can and advice,” he explains. “It’s a well- and, as Turzynski points out, the key industry as it heads towards the General appears SMEs are often unable to focus on being creative, inventive and used phrase but I would like to continue is making it meaningful to members Election, writes Henry Kerali. access work on large-scale projects, Book your place intelligent for their clients.” the work to ensure that the ACE is regardless of their size, sector and Having spent the last five years at for the UK to achieve its objectives An election year clearly makes a the trusted friend of government with location. And necessarily the needs of the heart of decision making in the in the near future and beyond, this Book your place at the ACE National huge impact on the work ACE does an independent voice, enabling our SME businesses will be different from Coalition, Alexander has first-hand perception must change. Conference now – Wednesday 4 to influence government, but with members to give their advice.” that of larger firms. experience of the way the industry can zzthe challenge of regional delivery. March. Every ACE member firm has all the main parties still committed Maintaining the momentum built “It is always going to be difficult influence the cross party political debate With the Scottish Referendum two free places reserved to be claimed. to investment in infrastructure, the up over the last five years of Coalition to serve both the big companies and surrounding infrastructure investment. now firmly in the rear view mirror, www.acenet.co.uk/conference challenge is made slightly easier. government after the election with smaller ones. Big consultancies today His experience means he will also devolution and decentralisation of

32 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 33 ACE news EIC news Enter the ACE Updated ICC: EU puts green agenda on hold Engineering Designed for Excellence Awards collaboration and Circular economy and air quality legislation pay the price as commission tries to demonstrate its pro-growth cost certainty credentials, says EIC executive director Matthew Farrow. A “radical” revision of the Infrastructure Conditions of It used to be the case that the European issue to put to a vote. Contract has been launched Commission was seen as a shining The result is that a large chunk of the by ACE and CECA, says ACE light for those who wanted tougher EU green agenda is effectively ‘on hold’ Pension auto enrolment: Are you contracts adviser Rosemary Beales. environmental regulation. But times for 2015 and it is unclear how quickly Improved market conditions for the The ICC with Quantities Version is are changing, and the few days before it will be restarted and whether future aware of your employer obligations? engineering and consultancy sector sets an up to date contract for infrastructure Christmas saw the new commission proposals on recycling and air quality the scene for the 2015 awards. It’s time projects designed to incorporate attract the dismay of the European will be watered down or not. Three ACE has advice on an issue that will changes and what their obligations are. to highlight success. current best practice and provides a environmental movement. things strike me about this episode. affect all companies and particularly Even if a member is currently The call for entries for the 2015 fair and flexible basis for clients and The provisional Commission First, it’s a reminder that while those SMEs from April. And it is offering a providing pension benefits to your ACE Engineering Excellence Awards contractors to work together. And its Workplan for 2015 had included of us working in the sustainability field pension solution. employees, there are a series of rules that is now open to provide businesses simple structure and provisions for proposals for new legislation in two are very focused on these sorts of EU Automatic enrolment legislation will determine whether your scheme and individuals in the UK consultancy collaborative working offer an attractive environmental areas – air quality and policy issues, most politicians and voters affects all UK employers. Pension is a qualifying scheme for automatic and engineering community a perfect alternative to existing forms of contract. waste management/recycling. The across the EU are far more concerned provision in the UK was reviewed by enrolment purposes. Auto enrolment opportunity to celebrate some Professor John Uff QC, who chaired ‘air quality package’ as it is known, about the basic economic situation, and the Pension Commission to create an is a complicated area and you may still extraordinary performances. the ICC Restructuring Group said: “It is contained plans to tighten EU air quality with the Eurozone recently slipping employer responsibility to automatically benefit from additional support. The outstanding achievements of the most radical revision of the Form limits to take account of more recent back into recession even EU politicians enrol jobholders into a pension scheme. the last year will be rewarded and of Contract since it was originally scientific evidence of the health impacts steeped in the federalist agenda such as The legislation requires substantial The ACE Pension Solution celebrated at a special gala dinner at the published. The new contract cuts out of polluted air, while the ‘circular Juncker and Timmermans are looking changes in the way employers operate. From as little as £390 per annum (for Grand Connaught Rooms, London on a large amount of redundant and economy package’ would put in place for ways to be pro-business. Of course, Penalties for non-compliance can be employers with up to five workers), the Wednesday 20 May 2015 outdated wording, particularly relating 70% recycling targets to be met by 2030 there is a good deal of evidence that severe and could range from £50 to ACE Complete Pension Trust provides: An expert panel of judges has to the resolution of those disputes along with new policies such as landfill if implemented sensibly progressive £10,000 per day depending on the size zzA scheme delivered through been assembled for this year’s awards which cannot be avoided where now bans for some materials. environmental policies can support of the organisation. established and proven market leaders. including London Underground director the Engineer has a pre-adjudication role But when the new set of economic growth, but that argument The date the legislation affects you zzA low annual management charge David Waboso, chief executive of which either party may choose to use commissioners took up their posts has still not been won in mainstream will depend on the size of your business. (paid by employees) of 0.48% per Balfour Beatty Construction Services at no cost. The contract is also much in November 2014, there were political/media circles. Larger firms with more than 50 annum, which is both competitive UK Nick Pollard and senior partner and clearer with its provisions contained in strong rumours that President Second, it was noticeable how British employees will have needed to complete and well below the Government’s group chief executive of Griffiths & just 20 clauses in logical order, retaining Juncker’s deputy, the grandly titled ministers seemed to have nothing to say auto enrolment by April 2015 – with charge cap of 0.75% per annum. Armour Stephen Bamforth. much familiar wording which will assist First Vice President of the European as the arguments raged about whether firms with 49 employees and less being zzAccess to a well governed range of Performance will be judged on current users to relate to its content.” Commission, a Dutch politician called or not the packages should be ditched. the focus from August 2015. The time investment options. examples of work carried out since John Banyard, who chaired the ICC Frans Timmermans, was looking I think this shows how toxic EU issues for SMEs to act is NOW! zzGuaranteed acceptance to a qualifying January 2014. Submissions can be made Development Forum, explained: “This for regulatory proposals to ditch to have become in UK politics, especially pension scheme including smaller for projects in the UK or for international contract has been drafted with the aim demonstrate the pro-jobs, pro-growth for Conservative Ministers. Number of employees Staging date members. projects that utilise UK based staff. of providing greater certainty of outturn credentials of the new commission. Third, with the prospect of an EU Over 250 October 2012 to zzAccess to and use of our state of the cost. To do that the concept of fixed There followed several weeks of referendum in 2017 casting doubt over February 2014 art online compliance system with quantities has been adopted and the role intense lobbying, with traditional whether any EU legislation will be 250 to 50 April 2014 to April full video support. Visit www.acenet.co.uk/EEA2015 for and authority of the Engineer are closely industrial bodies such as Business relevant to the UK in a few years’ time, 2015 zzA safe and secure, easy to administer further information and to enter. defined. Risk is clearly allocated between Europe encouraging the axing of the it’s worth remembering that there is pension solution, which helps you Entries must be received by Friday 13 the parties within a single clause which proposals and a coalition of green nothing to stop UK policy makers and 49 to 30 August 2015 to October 2015 plan ahead and keeps you on top of February 2015 ensures that risks are carried by the NGOs (and environmental business politicians putting new air quality Under 30 June 2015 to April your on-going responsibilities with party best able to manage them.” associations such as my own) warning and recycling targets and policies into 2017 a robust and repeatable automatic Categories for entry are as follows; There are clear provisions for such a move would be a grave mistake. British law anyway. I often think green enrolment process. zzBuilding Services Award (companies ensuring collaborative working and as On December 16th, Timmerman’s NGOs are too quick to look to the EU Automatic enrolment requires zzA trust based arrangement with the with up to 250 employees & with a part of this is the requirement for the announced that the Circular Economy to deliver policies for which they have considerable planning. There are over trustees acting in the members’ best more than 250 employees ) early warning of matters that may affect package would indeed be dropped not secured support among UK policy 100 checks that should be performed interests and ACE representation at zzBuilding Structures Award the contractual process. from the 2015 Commission Workplan, makers. for each of your workers requiring a trustee meetings. (companies with up to 250 ACE chief executive Nelson although to appease the green Overall, it’s clear that uncertainty specialist system in place to perform zzNo restrictions or penalties on transfer employees & with more than 250 Ogunshakin said: “We are delighted movement he added that it would be over the direction of environmental these checks. Majority of UK employers of funds in and out of the scheme. employees) at how the updated contract has revised ‘to improve it’ and reintroduced policy is very high both at the EU level have not done any cost modelling to zzTelephone support to members who zzUtility Infrastructure Award been restructured to meet industry in 2016, while the air quality proposals and here in the UK. That’s bad news ascertain what the costs of automatic may elect to buy additional telephone zzTransport Infrastructure Award requirements and the government’s would be revived in different format in both for firms in sectors such as waste enrolment might be for their business. based support as and when required. zzProject Design Award (companies focus on best practice. This is a timely the future. management or air pollution control The good news is that ACE, working zzEmployee access to an exclusive with up to 250 employees) refresh.” On January 15 this year the European trying to set investment strategies and with its specialist partner, Charles online shopping platform. zzResearch, Studies and Consulting Parliament debated the Workplan, but for all of us who care about the quality Stanley Financial Solutions, has put Advisory Award ICC Quantities Version costs £30 a copy despite much unease among MEPs about of the air we breathe and the amount of in place a state of the art dedicated For further information on the ACE Complete zzEngineering Professional of the Year and associated Guidance Notes are £20 a the dropping of the two packages the virgin resources society consumes. solution to help its members through Pension Trust, please visit www.acenet.co.uk/ zzProgress Network Award – copy. www.acenet.co.uk/publications two main political groups, the right of the automatic enrolment maze, to pensions or telephone ACE on 020 7222 6557 Consultant of the Future centre EPP and the left wing S&D could EIC is the leading trade body for ensure that members understand the not agree on a joint resolution on the environmental firms. www.eic-uk.co.uk

34 Infrastructure Intelligence | January 2015 January 2015 | Infrastructure Intelligence 35