reviewAECOM Ireland Annual Review 2017 North South Interconnector, CoverAECOM photo: services: Overhead line routing, consultations, Dropbox,environmental impact assessment, expert witness for Oneoral hearingPark Place, and Hatch public Street inquiry. Upper, Dublin 2. AECOM services: Project management, cost management. Image courtesy of Donal Murphy Photography

Current projects include:

A6 Randalstown to Castledawson, Northern Ireland Department of Justice, Value for Money Review of Prisoner Transport Athy Distributor Road, Co. Kildare Dublin Airport Authority runway works BBC, Northern Ireland Dublin Airport capacity development Beaumont Hospital, Dublin Dublin Airport masterplan Belfast City Council, Leisure transformation programme Dublin City Council Ballymun boilerhouse, Dublin Belfast City Council Office Dún Laoghaire Shopping Centre, Dublin Bon Secours Hospital North Block Extension, Cork D7 Educate Together primary school, Grangegorman campus Brown Thomas, Dublin & Cork Endoscopy, Physical Medicine and Oncology, Capital Dock, Dublin Naas General Hospital, Co. Kildare Castlebar Hospice, Mayo ESB, Project Fitzwilliam fit out, Dublin Castletownbere Transport Study EY Offices, Dublin, Limerick and Belfast Cath lab and theatre, Our Lady’s Children’s Hospital Crumlin, Failte Ireland capital programme Dublin Foynes–Limerick improvement scheme, Limerick Central Bank headquarters, Dublin Frascati Shopping Centre, Dublin Churchfield Housing Phase 1, Southill, Limerick Grangegorman Development Agency, primary care centre, Citi North Wall Quay amenities, Dublin Dublin Clancy Quay residential scheme, Dublin Grangegorman Development Agency transport planning Clare Cultural Centre, Ennis, Co. Clare advisory services, Dublin Coláiste Chiaráin, Limerick Hynes Building, Galway Connemara Visitors Centre, Galway Irish Glass Bottle site, Dublin Cork City North West Primary Care Centre IT Tallaght campus, Dublin Cork-Limerick Strategic Corridor Assessment JP Morgan, Dublin Courts bundle PPP, Ireland Liffey Valley Shopping Centre, West Dublin Curragh Racecourse, Co. Kildare Limerick City & County Council, Opera site DCU Block F teaching block LinkedIn Headquarters, Dublin

2 AECOM Contents

Introduction 3

Industry review: Republic of Ireland 5

2016 performance and medium term outlook 6 Sector performance 8 Construction costs and tender prices 11

Industry review: Northern Ireland 13

Business intelligence 17 Angela McGowan, Regional Director, CBI Northern Ireland 18 Danny McCoy, CEO, Irish Business and Employers’ Confederation (Ibec) 20

AECOM in Ireland: profi le

Geographies 23 Ireland 24 European construction activity trends 28

Thought leadership 31

Event venues: a catalyst for regeneration 32 Empty building syndrome 34 AECOM 2017 Review Survey results 36 Indicative building costs 38

AECOM in Ireland news 39

AECOM 1 AECOMRoscommon Ireland County Annual Council Review Civic 2017 Offices, Roscommon. AECOM services: Cost management. Image courtesy of Christian Richters Photographer Introduction 2017 – Ireland needs significant infrastructure and residential spend to sustain economic growth

At the Dublin launch of AECOM’s development in central Belfast also continued growth in construction 2016 Ireland Review, economist, Jim increased, with office rents at about output forecast across the Island, Power, warned that the biggest risks half central Dublin levels. Similarly the opportunities remain strong. to continued economic growth across rent across the residential sector also As we previously noted, skills the Island were uncertainties in the shows a disparity, with typical rent in shortages and cost competitiveness national and international economic Belfast around 35 per cent cheaper are the principle risks. On a macro and political arenas. Twelve months compared to the equivalent in Dublin. level, the risks are likely to be the on, we have a minority government in same uncertainties that Jim Power the Republic of Ireland and political AECOM analysis 2014 (see page previously identified, such as Brexit, uncertainty in Northern Ireland, the 6), suggests that if the ROI’s coupled with increasing political UK has voted to leave the EU and construction industry had progressed unease across Europe and the Donald Trump is the president-elect at the recognised ‘normal’ level of potential for rising international of the United States. 12 per cent of GNP from 2009 to energy costs to hit growth. 2016 inclusive, there would have Despite these upheavals, economic been €63 billion more spent on This review looks at these output in the Republic of Ireland (ROI) construction compared to actual opportunities and risks, and includes continues to rise, with the Economic spend in the same period. This is interviews with Irish Business and and Social Research Institute (ESRI) an oversimplification, but it is clear Employers’ Confederation (Ibec) estimating GDP growth of 4.2 per that years of under investment by CEO, Danny McCoy, and the Regional cent in 2016; the fourth year of strong the private and public sectors in Director of the Confederation of growth. Construction output has also physical and social infrastructure British Industry (CBI) Northern Ireland, continued to grow at pace, with an will diminish the attractiveness of Angela McGowan, who share their estimated 15 per cent increase in the the Island as an investment location thoughts on the uncertainties of value of output during the year. While if spending is not accelerated. For Brexit and a Trump presidency. there has been significant growth our 2017 Annual Review, we have across all sectors and the ROI regions, carried out a survey of approximately It also contains thought leadership the central Dublin commercial sector 4000 people from across the Island’s articles and detailed AECOM 2017 is booming. Other sectors, such property and construction sectors. Review Survey findings. as retail and residential, must While the results of our 2017 Review perform better in 2017 and beyond Survey suggest the general sentiment We hope you enjoy the read and look to catch up. is very positive, a key finding forward to delivering more exciting indicates that skills shortages, cost projects with you in 2017. Meanwhile, Northern Ireland’s competitiveness and deficiencies economy continued to grow at a in physical infrastructure have modest level in 2016. Construction presented challenges in attracting John O’Regan output in the 12 months to mid 2016 foreign direct investment. Programme, Cost, Consultancy Lead, was up 8 per cent compared to the Ireland previous 12 months, with continuing So, what are 2017’s potential growth anticipated. Commercial office opportunities and risks? With john.o’[email protected]

AECOM 3 AECOM Ireland Annual Review 2017

It is essential that we attract back our skilled resources, maintain competitiveness and work to a cohesive plan to address the significant deficits from seven years of under investment.

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4 AECOM Industry review: Republic of Ireland

AECOM 5 AECOM Ireland Annual Review 2017

2016 Performance and to the right. Here we are stuck in the recruitment being seen as the biggest medium-term outlook middle”, on social media. The truth is, challenges to business; it is clear By any measure, 2016 has been no one really knows how these events that the drive to attract experienced another good year for the construction will impact the economy generally, let craftsmen and industry professionals industry. Employment has continued alone the construction sector. to the sector will move into full swing in to grow, with the number employed in 2017 as more projects begin. the sector up over 9,000 in Q3 2016, When asked specifically about the compared to the same period in 2015, impact of the UK leaving the EU, Domestically, businesses involved while planning permissions granted for respondents to the AECOM 2017 in public sector schemes will be non-residential floor space were up 70 Review Survey were largely pessimistic, required to adopt the interim public per cent in the 12 months to July 2016, with 49 per cent believing Brexit will works contract measures, which creating a positive outlook for 2017 have a somewhat or very negative become mandatory in 2017. While and beyond. With 2016 construction impact on their businesses over 2017- the nine-month transitionary period output sitting at around €14.5 billion 2018, followed by 34 per cent who has been beneficial for the industry, it in 2016, this represents a 15 per cent were neutral and 17 per cent who feel is still early days. Only in 2017 will we increase on 2015, largely driven by somewhat or very positive. have a better understanding of how the commercial boom and to a lesser the measures are being applied and extent by the residential market which Nevertheless, respondents had an received by the industry. Certainly the is starting to increase output, albeit overall positive outlook for 2017, with measures are being seen as a positive much slower than required. It is also 69 per cent expecting business to move; however, there are concerns worth noting that construction activity grow, with those who proffered an regarding the complexity of the started to pick up in the regions in estimated percentage of this growth process; the additional time needed the second half of 2016, but remains averaging 21 per cent. We expect for tender evaluation and award; the sluggish compared to the greater the value of construction output risk that projects will stall; and potential Dublin area. to increase by around 20 per cent procurement process challenges. in 2017. It is no surprise then that Challenges and risks undoubtedly respondents identified resources In the medium-term, and to fully lay ahead, both domestically and and tender inflation as the biggest understand our position in the current internationally. In the aftermath of the challenges to domestic construction industry cycle, it is important to reflect US presidential election, many people projects in 2017, which aligns with on where we have come from. quoted “Trump to the left of us, Brexit controlling costs, staff retention and

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6 AECOM Key statistics at a glance

Construction output breakdown 2016 Non-residential planning permission granted Aecom estimates (€m) July 2015–June 2016 (‘000sq m)

6,000 Other buildings for social use 90 5,000 Commercial buildings Govt., Health 889 and Education 4,000 419

3,000

2,000

Industrial 1,000 buildings U.S. Army Base Camp Carroll 411 0 Social Private Private

Residential Buildings for agriculture

Infrastructure 1054 Non-residential Civil Engineering

Source: Central Statistics Office

Employment in construction sector Construction enterprises, personnel and turnover (‘000)

200,000 70,000

300 180,000 63,000

260.3 160,000 56,000 250 140,000 49,000

200 120,000 42,000

100,000 35,000 150 128.2 80,000 28,000 100 60,000 21,000 14,000 50 40,000

13.6 8.7 Male 20,000 7,000 0 Female 0 0 2007 (Q2) 2016 (Q2) 2008 2009 2010 2011 2012 2013 2014

Source: Central Statistics Office Source: Central Statistics Office

Enterprises (number right axis) Person engaged (number left axis) Turnover (€ million right axis)

AECOM 7 AECOM Ireland Annual Review 2017

Figure 1 tracks actual/projected In conclusion, the horizon is bright for the coveted equilibrium of continuous construction output across a 20 year the construction sector. However, to modest growth, as we mentioned period versus a targeted output of 12 maximise the benefi ts for the industry previously. While severely constrained per cent of GNP, clearly illustrating the and wider economy, it is essential that since the crash of 2008, public scale of the construction industry’s we attract back our skilled resources, sector capital investment has been collapse and, more interestingly, the maintain competitiveness and work signifi cantly less volatile than private journey left to return to that target to a cohesive plan to address the sector investment. measure of 12 per cent GNP which the signifi cant defi cits from seven years of chart shows in 2022 when the lines underinvestment. Ireland’s Budget 2017 sets out the next intersect again after 2009. It is government’s multi-annual capital worth us asking: what will the economy Sector performance investment plan through to 2019. have foregone in this 13 year period A signifi cant feature of the construction Table 1 overleaf sets out the through this lack of capital investment? industry is that it crosses all business government departmental split for the and consumer sectors. In theory, this same period, and their projected out- There are many possible answers should be a good thing, and protect the turn spend for same in 2016. to this question including that we industry from a cyclical workload and exceeded the 12 per cent of GNP output in Euro terms; when one sector As indicated in the table, the spend during the Celtic Tiger, which in the economy performs poorly, others government’s capital investment plan is correct, and this is a necessary may be booming, balancing things is providing for growth in spending of correction, however in a fast-growing out. Unfortunately, in a small, open 8.8 per cent, 16.7 per cent and 14.7 economy that is not unexpected and economy, such as Ireland, this coveted per cent from 2017 through to 2019. unfortunately signifi cant elements equilibrium is diffi cult to achieve, thus This equates to around €16 billion — a of the spend in that period were our construction industry historically 15.2 per cent increase on the provision not wisely invested. Since 2010 the tends to be very cyclical. for the same three years in the shortfall has been €63 billion and a previous year’s multi-annual plan. As further €26 billion shortfall is projected On the following pages, we look at such, the capital plan through to 2019 by 2022 unless corrective action is emerging trends across key sectors represents a signifi cant improvement taken. The collective private and public in 2016, how they could fare in 2017, on that which is included in Budget sector underinvestment of potentially and the implications for Ireland’s 2016. However, it should be noted that €89 billion is a signifi cant infrastructure construction industry. these are value increases, and that defi cit and it is critical that we tender price rises need to be taken into accelerate rectifying the infrastructure Public sector account when assessing the potential defi cit through a planned and managed The public sector plays a big part in the volume increases and knock-on investment programme. strength of the construction industry. benefi ts in terms of employment. The Capital investment is often considered bulk of the increased expenditure is a key tool in helping governments fi nd going towards housing in response to

Figure 1 Actual/potential construction output* How long would it take to reach optimum output Optimum construction output based on 12% of GNP

45,000

40,000

35,000

260k 30,000 245k

25,000 215k

20,000 185k

15,000 150k Employment (ROI)

10,000 0

5,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2018 2019 2020 2021 2022 2023 2024 2025 2017(f) 2016 (e)

*Pre – 2012 output based on “The Irish Construction Industry 2012” SCSI/DKM. 2013 – 2018 AECOM estimates. Post – 2018 based on hypothetical 10 per cent per annum growth

8 AECOM Table 1: Multi-annual capital investment allocations

Department 2016 2017 2018 2019 2017 - 19 €m Agriculture, Food & the Marine 217 238 238 238 714 Arts, Heritage, Regional, Rural & Gaeltacht Affairs* 136 119 115 118 352 Communications, Climate Action & Environment 121 171 201 256 628 Defence 68 74 74 85 233 Education & Skills 595 690 714 745 2,149 Health* 414 454 473 550 1,477 Housing, Planning & Local Government 473 702 788 764 2,254 Jobs, Enterprise & Innovation 503 555 520 530 1,605 Justice & Equality* 157 180 141 173 494 Public Expenditure & Reform* 141 152 176 178 506 Other departments 67 70 70 70 210 Office of Public Works Incl Incl Incl Incl Incl Transport, Tourism & Sport* 1,075 1,129 1,281 1,328 3,738 Contingency 200 500 1,034 1,534

Total Gross Capital Expenditure Ceilings* 4,167 4,534 5,291 6,069 15,894 *Rounding affects totals Annual Percentage Increase 8.8% 16.7% 14.7% Percentage Increase on provision in previous budget 14% 25% 8%

Source: Budget 2017, Department of Finance.

the current housing crisis. Meanwhile, in July 2016, €5.35 billion has been authority house completions coming the bulk of increased expenditure earmarked by the government to build to a virtual standstill in 2015, at only for subsequent years is being held 47,000 units by the end of 2021. This 75 units. Generally, there is a one-year in contingency provisions, such as is a very welcome and a much needed lag between commencement trends €1,034 million in 2019. investment. However, it won’t solve becoming completion trends. Thus, the supply problem on its own, and the recent upsurge in housing projects Residential we will need significant private sector across the ROI should see completed The residential sector crisis has been residential developments to see real housing units increase by double digit many years in the making, and will take change in the market. percentage growth in 2017, from many years for the government and the low baseline however of around country as a whole to fully address. Figure 2 below clearly illustrates the 14,000 units. Since the crash in 2008, the drop in scale of the housing decline, with local the construction of private and public residential units has precipitated the Figure 2 crisis to a point where rents are soaring. House commencements and completions In Ireland’s main urban centres, there Source: Department of Housing, Planning, Community and Local Government are thousands of homeless (persons with no accommodation in which 100,000 5,000 they can reasonably occupy/remain in occupation) in hotels and similar 90,000 4,500 accommodation. The lack of supply 80,000 4,000 is also starting to hit Dublin’s ability 70,000 3,500 to attract international investment, as 60,000 3,000 companies are concerned their staff 50,000 2,500 will have inadequate housing. 40,000 2,000 The launch of Rebuilding Ireland 30,000 1,500 – Action Plan for Housing and 20,000 1,000

Homelessness saw concrete measures 10,000 500 being put in place to rectify some of 0 0 ROI’s housing problems. Launched 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

House House Local authority house completions completions commencments (Right axis)

AECOM 9 AECOM Ireland Annual Review 2017

The recent minor changes to ROI’s companies are increasingly looking will likely lead to further investment and central bank rules for mortgage lending to invest further afield. While we are expansion. These developments, along will help the first-time buyer market. beginning to see some commercial with centres such as Kildare Village and However, it is too early to say whether activity outside of Dublin, the problems others in regional urban centres with rent cap measures introduced in experienced in Dublin in 2014-2015 expansion and refurbishment plans will December 2016 will result in further are being felt in other cities, such as see a return to capital expenditure in a landlords exiting the market or Galway, where the shortage of supply is sector which has been sluggish discourage others from building new proving a real constraint on attracting to recover. accommodation. In our Review 2017 new foreign direct investment survey, respondents ranked significant companies of scale. The changing trends in retail, such as increase in government house building increased online shopping, click and programme, PPP house building Industrial collect services and the option to watch programmes and further tax incentives/ With the upturn in the economy, a movie, or eat out as part of the more changes for private housing (in that demand for space has been good. traditional shopping experience, will order) as the three most significant However, the level of surplus stock undoubtedly impact on investment actions the government could take from the pre-crash era and normal decisions and are likely to lead to a to address the current housing crisis transactions in the market mean there focus on spend in these areas. – action in this regard needs to be has been no real significant speculative accelerated as a priority. new builds; construction has largely Tourism, sport and culture been related to existing occupiers The tourism sector had another good Commercial market expanding or re-purposing existing year in 2016, with overseas visitors to Following significant concerns operations. the ROI up 11 per cent in the first 10 since 2014 around the shortage months of the year, compared to the of office space in Dublin, and the IDA Ireland has been developing same period in 2015, and up 37 per cent city’s inability to meet the needs of a number of advance-technology compared to the same period in 2013. foreign direct investment, we have buildings in regional locations, including Similarly to previous years, transactions seen significant change in 2016 with two currently nearing completion continued across the sector, with hotel a number of schemes delivered and in Castlebar and Sligo. These types groups acquiring leaseholds on existing under construction for completion of initiatives are very positive and, hotels a notable trend. With a number of in 2017 and 2018. Despite these coupled with strong marketing to schemes obtaining planning permission improvements, it is anticipated that the publicise them, have been successfully for Dublin city centre, transactions, continuing strong demand for offices attracting significant investment expansion plans and general strong will see the commercial office sector and providing welcome activity in performance will see continued boom continue across the Dublin the sector. construction activity across the sector market, particularly in the city’s centre, in 2017. where the commercial market’s Retail many tower cranes are visible across There have been a number of Fáilte Ireland, the National Tourism the skyline. significant sale transactions in the Development Authority, continues to Dublin retail shopping centre sector invest in strong tourism initiatives. With With high commercial rents in Dublin in 2016, such as Blanchardstown and the huge success of the Wild Atlantic and related housing shortages, Dundrum shopping centres, and these Way launched in 2014, and Ireland’s

Daughters of Charity St Vincent’s Centre, Navan Road, Dublin 7. AECOM services: Cost management. Image courtesy of Stephen Farrell Photography.

10 AECOM Ancient East, which really took off In addition, the Pound recovered continued strong growth in industry in 2016, is set to capture people’s somewhat against the Euro in late output as highlighted earlier, would imagination and lengthen the tourist 2016. Thus, we expect construction point to 2017 seeing a continued trend season. cost inflation to remain modest in in tender price inflation increasing. That 2017. However, allowing for further said, it is important that this gap is not The re-development of Pairc Ui volatility in the market, and some seen like the speed limits on our roads, Chaoimh, which got under way in 2016, modest labour cost increases a target to aim for, instead it should represents significant investment in the in certain trades, we anticipate be a maximum limit and we should country’s south west. Meanwhile, at the construction costs to increase by take our time getting there because opposite end of the Island, the Windsor around 2.5 per cent in 2017. maintaining competitiveness is critical Park re-development was completed in to the economy and in terms of Belfast. We all await the decision at the Tender prices competing on the international stage in end of 2017 on the Rugby World Cup Tender prices have come under attracting inward investment. 2023 bid. increasing focus in 2016 as the squeeze on available resources In the AECOM 2017 Review Survey. Construction costs and becomes more acute and the conducted as part of the research for tender prices inevitable acceleration in tender price our 2017 Annual Review, we sought Competitiveness continues to be increases. It is useful to look at tender opinions from respondents on their an important growth driver in the price movements, given that they expectations in respect of tender economy, with construction playing peaked at the end of 2006-beginning price movements in 2017. Based on a part in keeping costs down. Tender of 2007, to see where we stand relative this feedback and our own analysis price increases have, however, been to that time. Figure 3 below illustrates of the above factors we anticipate increasing year on year, at levels over 5 the significant falls in tender prices in that 2017 tender price inflation will be per cent since 2014, raising concerns the years immediately following the approximately 6 per cent in the regions that this will lead to an erosion of financial crash and tracks the recovery and approximately 8.5 per cent in the competitiveness. We review 2016 since then. greater Dublin area. As always, these trends and look ahead to anticipated are averages and variances will be price movements in 2017 below. It is noticeable that despite the high experienced across regions, projects levels of tender inflation increases scales and sectors. Specialist trades, Construction costs since 2014 there still remains a where resources are constrained, Inflation across the economy has noticeable gap to the equivalent may experience higher tender remained at historically low levels cumulative construction cost index price increases. with the Consumer Price Index (CPI) tracker. This gap and the likely at well below 1 per cent per annum increases. Similarly, construction cost Figure 3 increases have been very constrained AECOM and SCSI tender indices and SCSI construction cost index over the same period. The Society of (Cumulative %, 2006 – 2017) Chartered Surveyors Ireland (SCSI) construction cost index has recorded Source: AECOM and Society of Chartered Surveyors Ireland (SCSI) an 11.5 per cent increase in costs from September 2006 to September 10% 2016. There is undoubtedly a range of factors for this similar to the rest of the economy, including constrained 0% labour rates, international construction material costs and for periods, the -10% strength of the Euro against the Pound. Given the international uncertainty arising from Brexit and Trump’s -20% presidency, it is difficult to assess likely cost trends, as markets can react suddenly to policy statements -30% from any of the major economies. We have seen energy costs increase in late 2016 as The Organization of the -40% Petroleum Exporting Countries (OPEC) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017(f) announced the first cut in production in 2016 (p) eight years at the end of November. SCSI Cost index SCSI Tender index AECOM Tender index

AECOM 11 AECOM Ireland Annual Review 2017

The disadvantages of leaving the EU, and potentially the single market, have been well documented; however, we should be focusing on the potential advantages. Could NI become a natural gateway between the EU and the UK financial services sector?

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12 AECOM Industry review: Northern Ireland

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Key statistics at a glance

NI overall construction output (£m) Construction output value change; H1 2016 ‘V’ H1 2015

4,000

20% 3,000 15%

2,000 10% 5%

1,000 0% -5%

0 -10%

2007 2009 2011 2013 2015

£3,424m £2,952m £2,295m £2,142m £2,573m Housing Other public Other private Infrasturcture

NI construction output: new work 2015 (£m) Overall construction output H1 2016, broken down into new work and repair and maintenance

Miscellaneous £137 Repair and maintenance (24.9%) Offices/retail £70 Industrial £85

Entertainment Housing £147 £642

Education £145

Health Infrastructure £198 £470 New work (75.1%)

Source: Department of Enterprise, Trade & Investment, Construction Output Statistics

14 AECOM Northern Ireland

In Northern Ireland (NI), Brexit is first six months of 2016 increased by £105 million leisure transformation a big topic of conversation, with 4.5 per cent compared to the same programme and the executive are much debate around the potential period in 2015. The shortage of releasing a fresh tranche of school consequences for the economy. It Grade A commercial accommodation replacement projects. is important that we plan for how we in Belfast that we reported on in see NI fitting into whatever economic 2016 is still a problem, and possibly We are hopeful that the recently model comes out of Brexit. But, as worsening in the short-term. However, mooted ‘golden age’ of infrastructure, most commentators are now saying, it councils, landowners and developers which the Westminster government is is too early to know how NI’s economy have started a number of schemes promoting, will bring benefits to NI in and political institutions will manage to throughout Belfast. Many of these are the long run. make due to become available at the end of Brexit work. 2017 or 2018 and will go some way to Across NI, plans for a third runway alleviate the shortfall. at Heathrow are seen as a welcome The disadvantages of leaving the EU, development. NI will need to become and potentially the single market, have There are also a number of hotel and more outward looking if it wishes been well documented; however, we student accommodation projects well to grow, with strong connectivity to should be focusing on the potential underway, with a significant number Heathrow — one of the world’s major advantages. Could NI become a natural of additional developments in the hub airports — essential. The NI gateway between the EU and the UK planning process. government has realised this, and has financial services sector? provided financial assistance to retain 2016 was the first full year of the key routes in and out of NI. The Irish government has been quick planning process being devolved to point out the virtues of Dublin from a centralised agency to the local Despite the ongoing economic and becoming a partner to the UK financial authorities and, anecdotally, decisions political uncertainty, the outlook for sector and there are many practical are being made in a timelier manner. the construction industry for 2017 advantages of doing so, such as The new councils have bedded in and is continued, modest growth. Tender ease of travel, shared time zone and their infrastructure plans are beginning price inflation of around four per cent is language, and cultural similarities. This to move. Notably, Belfast City Council anticipated as the labour market shows leaves NI in a unique position, with a has commenced investment in their signs of shortages in key trades, with lower cost-base, an exceptional talent the reduced value of sterling possibly pool and the highest satisfaction rating leading to inflationary pressures. within the UK for residents, to attract and build a financial services industry, bridging the two economic zones. The only certainty, however, is that Brexit has created uncertainty at a time when NI is just getting back on its feet.

The construction industry has had a relatively stable year and some modest growth with the value of output in the

Northern Ireland Water Resevoirs, Middle South Woodburn, Carrickfergus, Co. Antrim. AECOM services: Reservoir safety advice, site inspections, refurbishment design, procurement, NEC project management, supervision, planning and environmental approvals.

AECOM 15 AECOM Ireland Annual Review 2017

“Even when the UK government finally triggers Article 50, we will still not know for a couple of years how those negotiations will play out. This creates uncertainty, which isn’t good for business.”

Angela McGowan, Regional Director, CBI NI

“The biggest challenge facing Irish business is lack of investment, particularly public infrastructure investment. It is clear that Ireland is now experiencing what the economist Galbraith described as “private affluence and public squalor.”

Danny McCoy, CEO, Ibec

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16 AECOM Business intelligence To assist in understanding the wider economic and political context in which the construction industry sits, and to picture some of the diff erent perspectives, we have spoken to key industry leaders for their thoughts on major questions.

AECOM 17 AECOM Ireland Annual Review 2017

Angela McGowan Regional Director, Confederation of British Industry (CBI) NI

You’ve just taken up the post of don’t realise that most of the funding How does CBI NI see Brexit regional director with CBI NI. towards the National Health Service impacting the NI economy generally What attracted you to the role and and the education sector comes from — and more specifically — on the what is it that you hope to achieve business taxation. I am hoping to raise property and construction industry? in Northern Ireland (NI) in the that awareness going forward. foreseeable future? Even when the UK government What does CBI see as the biggest finally triggers Article 50, we will still I previously worked in Danske bank challenges facing NI businesses as not know for a couple of years how as Chief Economist for the last eight we head into 2017? those negotiations will play out. This years and have well over 20 years’ creates uncertainty, which isn’t good economics experience, so I think Obviously, the biggest challenge is for business. Therefore, it is really hard economic policy is now in my DNA. the uncertainty stemming from having to say how this will go and how it will As the UK embarks on leaving the to redefine our role in Europe. In this affect each sector: no one really knows EU, this is arguably one of the most region, we need to make sure our how it will pan out. We do expect that vulnerable times for the local economy voice is heard loud and clear because to impact upon business investment so I am more than happy to take we have very unique circumstances levels. For property and construction the lead in terms of ensuring policy in terms of our land border and our though, there is a positive, as we are makers are aware of the challenges extensive trade with the ROI. expecting the Autumn Statement to for local business. I am keen to recognise the need for fiscal stimulus ensure that innovative solutions to Not everything is Brexit related in terms in this uncertain time. Admittedly, our challenges can be found. I am of challenges to industry in 2017. The even before the EU referendum, the absolutely committed to getting the apprenticeship levy is a big one: it is not UK government was starting to put best economic outcome for the people really suited to many local companies infrastructure at the heart of its policy of NI and I will work continuously and and as yet there is little clarity around and recognising that they need to tirelessly towards that goal. how it will work. A number of local firms invest. Indeed, there is no better time will be making large payments with this to invest with interest rates so low. The When I was considering the Regional levy and they want to ensure that in impact on property is hard to call as Director post last summer, I remember return they will receive adequate funds there are so many variables influencing that the more I explored the CBI as an for appropriate in-house training and this market – supply of housing, credit organisation, the more I liked it. There is skill development. Also, we always have availability, sentiment and the jobs a huge volume of work that goes on in ambitions to make NI a knowledge- market. Currently, the housing supply the background in the CBI that I think is driven economy, and that requires in NI is still not matching demand; an untold story in NI. This organisation research and development (R&D) however, the supply problem here is is committed to raising prosperity and innovation. Although the existing mild compared to Great Britain and living standards across all UK R&D tax system has been improved or Dublin. regions. One particular CBI campaign, in recent years, it does not fully ‘The Great Business Debate’, is all cover pre-commercialisation activity, How do you feel Brexit will impact about raising the awareness of the such as clinical trials or other pre- the relationship — economic or contribution that business makes to production development activity. The otherwise — between NI and the country’s living standards. Our CBI has therefore been pushing for a the ROI? overall prosperity is linked to business ‘supercharged’ use of R&D tax credit to success but many people do not incentivise that pre-commercialisation The ROI is our biggest trading even consider that. Indeed, people activity that takes place across the UK. partner. Thirty-eight per cent of our

18 AECOM manufacturing exports, around €1.8 billion, go to the ROI while we import around €1.2 billion from the ROI. Many of our members see themselves as all-island businesses and are deeply imbedded in the all-island market in terms of supply chain and distribution. If you talk to sectors about this (for example the agri-food sector) it is so important for them that these trading links are maintained, so that is what we will be working towards.

The two economies on this island have worked very closely, increasing the economic returns for everyone. Therefore, it doesn’t make any sense to alter that. I do believe that for businesses and energy markets, we will need some form of flexible arrangements that allow for continued collaboration across the island.

How important is Foreign Direct Investment (FDI) to the NI economy, and how can we attract more?

FDI is critical, but I always say that we small-firm dominant economy. FDI are opportunities through technology. should try and grow the private sector firms tend to be the most successful I firmly believe that technological with a three-pronged approach. In and therefore bring with them better connectivity is an opportunity which the first instance you need strong management skills, higher productivity will allow a small region like ours, which levels of entrepreneurship for new levels and technology transfer. They is geographically quite isolated, to sell firm formation. Secondly, scaling up also have a multiplier impact on the ourselves and be relevant on the global indigenous companies is crucial: we economy by using local supply chains stage. Infrastructure and connectivity have a small firm-based economy so their importance should never be go hand in hand. When we are well in NI so businesses need help with underestimated. connected through roads, rail, airports exporting, raising innovation levels, and broadband, NI has a much higher brand development and protection of In terms of what more NI can do, you chance of being an economically intellectual property. The third prong just need to look at what investors successful region! for growth is of course FDI, which want: they want high levels of skills, has always been seen as key to job good infrastructure, access to creation. In particular, for NI, it is about markets etc., so we need to make bringing in firms of scale because, sure that we have these things. NI is a as mentioned previously, we are a peripheral region no doubt but there

AECOM 19 AECOM Ireland Annual Review 2017

Danny McCoy CEO, Irish Business and Employers’ Confederation (Ibec)

What does Ibec see as the biggest controlled migration to bring and Ireland are actually two hubs of challenges facing Irish businesses that about. globalisation, a phenomenon which I as we head into 2017? think will continue to be a trend through The November 2016 High Court ruling, 2017 and 2018 regardless of how The biggest challenge facing Irish currently under appeal, does give Brexit and the EU relationship goes. business is lack of investment, Theresa May options. If she didn’t want While that seems to be a ludicrous particularly public infrastructure to be stuck in the hard Brexit option idea now, given that we haven’t even investment. It is clear that Ireland and was doing it for tactical reasons, completed our motorway system, it is is now experiencing what the it does give her some room. However, important to have ambition. economist Galbraith described as one way or another, the UK will be “private affluence and public squalor”. leaving the EU as it exists today. The When we look across the regions, Squalor may be too strong a word question is: can the EU adapt to be the issue of the orbital network does for Ireland right now but it’s a danger inclusive of the UK in the future? That is come back to bear. We seem to be unless we ramp up investment. the absolutely crucial piece for Ireland. lacking ambition to connect up our There is a strong surge in disposable An EU without the UK in a hard Brexit two biggest cities outside of Dublin; income growth, companies are also scenario is a disaster for Ireland and Limerick and Cork. There is an attitude investing significantly in machinery anything brought forward as a positive that the population is not in the west, and equipment, while building and is merely mitigating some losses. it is in the east, so why would you build construction investment is a bit But, we don’t need to be completely infrastructure over there? Clearly, the lagged but it is coming through. negative about it - there will be a future. infrastructure deficits are manifest in Where we have pinch points in public Having 95 per cent of what you had more than just in roads but these are infrastructure, it is not because of last year always feels bad but when you actually population-related deficits. the want of money, it is for the want are wealthy, 95 per cent of a wealthy of ambition, in terms of using public position is quite a strong one. The increasing public sector private partnerships to get around the industrial unease in 2016 could lead EU fiscal rules constraints. One of the positive legacies of the to industrial action in 2017. How Celtic Tiger was the improvement can businesses balance the need How does Ibec see Brexit impacting in the motorway network. Are to maintain the competitiveness on the Irish economy generally there still significant infrastructure that was gained through necessity — and more specifically — on the deficits? during the downturn, and still fairly property and construction industry? reward employees? One of the things Ibec champions is Clearly, the Brexit issue is going to a connected island of Ireland with 10 Clearly, our competitiveness will be massive for Ireland as the “hard million people, within a generation, and decline over the next number of Brexit” position from the British Prime the completion of the orbital motorway years because we have been super Minister suggests controlled migration system would be a very significant competitive as a result of the crisis. is the primary objective and the boost to connectivity. We had a huge swing towards subordinate ambition is for EU single productivity and cost maintenance market access. We would have wanted I also think we should have an ambition and that will have inevitably started to it the other way round and would have to build a tunnel between the two unfold. The difficulty is now to ensure supported Britain getting maximum islands of Ireland and Britain. This this unfolding is done smoothly, single market access, and we might would be significant and achievable particularly in the public sector. There have had to countenance some for both countries, because Britain is an understandable expectation from

20 AECOM public sector workers to try to restore their pay because the recession is over. There will be a need for a new public sector pay agreement as the Lansdowne Road Agreement is unlikely to last. The question is: can we absorb the costs in line with the same trend in which our productivity is increasing?

Are there any initiatives which the government could explore on the property/capex side which would encourage Irish companies to invest and expand existing operations?

On the property/capex side, I think the government could use more private initiatives. In fact, Ibec has been pushing an SSIA-type scheme relating to recur. That is a lot of money from our to property and infrastructure, which business model which is not getting is a mechanism to allow the private recycled back in because we only put sector instead of just getting tax cuts an extra billion in the budget. for possibly conspicuous consumption to actually use that money to the Finally, how do you see the American benefit of people, by bonds related to presidential election result infrastructural projects etc. impacting Ireland?

The difficultly is getting the cash flows I think it could have very significant out of the construction projects, problems because the thing that I think there are ways around this makes me confident about Ireland is challenge with some initiatives. I think globalisation, and globalisation is what the government has lacked ambition has made the UK and Ireland two great in trying to find innovative ways around economies in the last generation. I confronting our problems. For instance, fear a Trump presidency may reverse a lot of people say the GDP figures those positive forces of globalisation, of 2015 are just a mirage. One could as they benefit us. My fear is not that argue they involve intangible assets, Capitol Hill will suddenly become which by their nature, may be mirage- very effective at corporate taxation like, but there is clearly a reality that decisions, but the whole tenor of the corporate tax revenue in 2015 was momentum on globalisation turning expected to be €4.3 billion and came in back into a nationalistic approach must at €6.8 billion. That is €2.5 billion extra, be the greatest fear for a small, open and is recurring; at least it is predicted economy.

AECOM 21 AECOM Ireland Annual Review 2017

AECOM in Ireland: profile

22 AECOM Dropbox, One Park Place, Hatch Street Upper, Dublin 2. AECOM services: Project management, cost management. Image courtesy of Donal Murphy Photography

Geographies

AECOM 23 AECOM Ireland Annual Review 2017

Ireland Construction activity in the ROI and significant new developments may be required in partnership with outside of Dublin has been strong by Clarendon, currently at feasibility the Institute of Technology Tralee. It is throughout 2016, but growth has stage, including CIE’s Horgan’s Quay anticipated that the HSE will continue been slower overall compared to land and Wilton Shopping Centre. to develop the Irish Blood Transfusion the capital. A combination of public Meanwhile, O’Callaghan Developments Services building and Paediatric sector capital spending and foreign has secured planning permission Inpatient Accommodation on the Cork direct investment is, however, for a significant office development University Hospital site. Significant providing a solid workload, and there on Albert Quay. The pharma sector, Office of Public Works expenditure on is potential for increased activity too, is expected to grow in 2017, with flood protection measures is planned in the private sector with greater reinvestment on existing campuses along the River Lee corridor in the city demand and funding availability for such as Eli Lilly, Johnson & Johnson, centre and west of the city. constructionU.S. Army Base projects. Camp Carroll Bio Marin and General Electric’s new campus development. With traffic in In 2017, Cork City Council looks set to Cork and the southern region and out of Ringaskiddy beginning to develop a new Local Area Plan (LAP) Construction activity in Cork has reach breaking point, calls to upgrade and development strategy for the definitely turned a corner: we may look the N28 road to Ringaskiddy and South Docks, with plans to redevelop back at 2016 as being a pivotal year for Dunkettle interchange have come to the Tivoli Docks. In 2016, Cork reached growth in Cork’s construction sector. the fore — we all want to be on the an important milestone with the Tower cranes returned to the city, with road to recovery, but don’t want to sit in publication of a Cycle Network Plan. many large projects commencing, traffic while trying to get there. Building on the success of the public including the Court House; Capitol bike hire scheme, the LAP will guide Cinema; Pairc Ui Caoimh; Cork City Throughout 2017, we expect public the future development of the cycling North West Primary Care Centre in St capital expenditure to form the network within the metropolitan area Mary’s Health Campus; Bon Secours foundations for further growth in the to encourage people to cycle to work Hospital North Block; UCC’s Student construction industry. Going forward, and school, and for general recreation Hub; and various school projects. University College Cork has bold and leisure. On the residential front, plans, including the development of it is positive to see that planning Looking ahead, Cork’s commercial the Cork Science and Innovation Park, permission has been granted for development is set to grow even a new sports centre, student hub and around 300 houses in Carrigaline, more, with John Cleary Developments planned student accommodation. Cork with further applications expected in continuing to take a lead role in the Institute of Technology may seek to Monkstown and Passage West. city’s growth through plans for a refurbish their strategic building on 46 mixed-use development in Mahon, Grand Parade and new developments

Hollyhill Library, Cork. AECOM services: Cost management, PSDP.

24 AECOM Mid Western Hospital Critical Care Unit, Limerick. AECOM services: Cost management, employers representative Image courtesy of Ros Kavanagh Photography.

Limerick and the mid-west region To borrow the words of 2016 Nobel Laureate, Bob Dylan, recovery in the ROI’s mid-west is ‘like a slow train coming’, with construction activity across the region showing discernible improvement throughout 2016, generating considerable optimism that workloads will increase in 2017.

Development of the region’s technology parks continues with the construction of new office spaces and industrial facilities, notably at the Regeneron facility at Raheen Business Park. Other major projects of note under way at the end of 2016 included the new courthouse, major refurbishment of the Adare Manor and the continued Northern Trust development: there are a lot of reasons to be positive about the future. The education sector is a major 2030 masterplan, is in design stage. contributor to construction activity Looking to the healthcare sector, the In autumn 2016, Limerick City in the mid-west, with work ongoing next big developments include a new Council launched the Limerick 2030 at a number of schools, including St ward block and maternity hospital at Designated Activity Company (DAC), Paul’s in Limerick and Ennistymon Limerick University Hospital which is tasked, in the first instance, Community School in Clare. Three with delivering over €500 million large new secondary schools at The private sector is also showing of transformational investment Clare Street, Mungret and Castletroy increasing signs of activity, with plans infrastructure across four strategic in Limerick, are at various stages of lodged to build a €40 million, 15-storey sites in Limerick City. Enabling works planning and design, as are a number building on the riverside at Howley’s on one of these projects, the Hanging of primary schools. In the third level Quay. The scheme currently includes Gardens site on Henry Street, was education sector, University of Limerick 150,000 square feet of office space, already under way at the end of 2016, continues a strong programme of 45 luxury apartments and commercial with the Opera Site Masterplan set capital works with their pool and arena space. In the retail sector, the for planning submission in 2017. Both nearing completion at the end of 2016, Crescent Shopping Centre is currently developments will provide much- with the university’s library expansion undergoing a major expansion and needed large scale modern office underway and new student centre and facelift, adding 3,384 square metres space in the city. Limerick City and pitches development entering design of floor area. The LIDL Childers County Council is also delivering stage. Meanwhile, refurbishment of Road store is also set for €4 million three housing projects: Churchfield Mary Immaculate College’s Mount redevelopment. in Southill, Lord Edward Street and St. Vincent building is ongoing and Hyde Road. Meanwhile, the private their new library at design stage at While these developments are good residential market is gradually the end of 2016. Limerick Institute news, should construction continue recovering; many of the developments of Technology’s Coonagh Cross to grow, anecdotal evidence suggests that stalled during the financial crash development is in planning stage the industry is facing a skills shortage, are being completed, with small, new and the Community Engagement which could pose a threat to meeting developments coming on stream. Gateway project, part of LIT’s Campus future demand.

AECOM 25 AECOM Ireland Annual Review 2017

Galway and the western region However, a number of judicial reviews project in 2018 providing improved The construction industry in Galway have since been granted by the connectivity. Other PPP projects active and Ireland’s western region has been High Court in respect of the An Bord in the region will see six primary care restricted by a certain inelasticity of Pleanala grant of permission, which are centres — Tuam, Westport, Ballinrobe, supply across the development sector due to heard in the Commercial Court Claremorris, Ballymote and Boyle, since the downturn in 2008. A number in early 2017. and a new courthouse —Letterkenny, of factors are constraining the supply- completed in the second half of 2017. side from responding to potential and In the housing sector, the lack of real demand, with the most significant new-build stock is a concern and, in While we have seen a number of factors likely to be the availability of common with other urban centres, hotel transactions across the region’s funding with achievable terms, and the Galway has seen double digit rent hospitality sector since 2011, there has availability of suitable development increases in 2016, undoubtedly been very little additional capacity. With sites and investors. driven by a lack of supply. Of course, the continuing success of Ireland’s there is a range of sub-sectors in the Wild Atlantic Way tourism trail, backed Galway city has developed a strong residential accommodation market by significant investment from Fáilte foreign direct investment presence and, in this regard, the proposed start Ireland, and with Galway being voted over many years and indeed these of the National University of Ireland Ireland’s European Capital of Culture companies are continuing to re-invest Galway’s on-campus, 429-bed student 2020, we expect further growth in the in their facilities. However, Galway’s accommodation scheme in early 2017 sector. Across healthcare in 2017, commercial sector continues to have will be a very welcome development. we expect to see the Bon Secours a low vacancy rate and, as a result, it is The public sector continues to be the complete their €6 million investment in likely that it has lost new investment to backbone of construction spend in new cardiac catheterisation laboratory other regions. the region, with the school building (cath lab) facilities in Galway as part of programme an important component. their 2020 plan. Similarly, the region’s The proposed Apple development in HSE has a programme of projects Athenry is the single biggest planned As highlighted elsewhere in this in the pipeline, including cath labs in investment in the region, and has the review, the provision of physical University Hospital Galway, Galway city potential to significantly boost local infrastructure is vital to development ambulance base in Merlin Park and construction employment. Apple and growth within any region, with the a 90-bed community nursing unit in obtained planning permission for completion of the M17/M18 Gort to Carrick-on-Shannon. the €850 million data centre in 2016. Tuam private-public partnership (PPP)

Left: NUI Galway Lambe Insitute for Translational Research HRB Clinical Research Facility, Galway. AECOM services: Project management, cost management and employers representative. Image courtesy of Neil Warner Photography.

Right: UCD Ashfield Student Residence, Dublin 4. AECOM services: Cost management Image courtesy of Donal Murphy Photography.

26 AECOM AECOM 27 AECOM Ireland Annual Review 2017

European construction activity trends

After a sustained period of typically Since then, price levels across the EU related to the differing narratives of rising construction prices through the have seen steadier increases. ‘new Europe’ as well as those countries 2000s, price trends reversed after Whilst general price trends have bordering the EU. 2008. Although most EU member followed a similar path over recent states experienced moderate years, there are variations across EU Construction activity across nearly corrections in price trends, some member states and indeed beyond, all EU member states fell significantly countries recorded larger falls as a which reflect the different stages of due to the global financial crisis. result of the financial crisis. Broadly, economic recovery, development Periods of political turbulence and three years of decreases and and market maturity. Moreover, the economic instability in the EU in stagnation followed 2008, before variances also represent the extent to subsequent years only exacerbated construction prices generally returned which each country was affected by these trends. Some non-EU States to their pre-crisis peak in late 2011. the financial crisis, along with issues were affected comparatively more during these periods due to exchange Figure 4 rate weaknesses or adverse foreign EU28 production in construction annually exchange movements.

130 Volume index of production 2008 financial crisis Regarding the EU, available data 120 highlights a north-south divide as the 110 construction industries of EU member

100 states were affected to varying degrees since 2007. Construction output in 90 a number of southern EU member 80 states experienced contraction of 70 approximately 50 per cent, whereas 60 some northern EU member states saw output expand over the same period. 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 It was Poland, though, which recorded some of the largest overall increases Buildings Construction Civil engineering Construction cost index* in output since 2007, a trend founded on a buoyant commercial, residential Source: Eurostat, *based on new residential buildings and infrastructure market that is set to continue, though this is subject to political and, to some extent, exchange rate stability.

All construction sectors followed a similar trend to a low in early 2013, with building construction work generally down by over 25 per cent from peak output recorded in 2008.

LinkedIn, Munich, Germany. AECOM services: Integrated multidisciplinary services.

28 AECOM Confidence and construction activity positive actions such as the EU’s Library of Birmingham, Birmingham, United Kingdom. began to pick-up from mid-2013 and Juncker Infrastructure Investment Plan into 2014. But output generally did not worth in excess of €300 billion, and AECOM services: Specification consulting. make further notable gains into 2015, continuing investment volumes from with a broadly stable trend in output European and US-based funds, that observed across the EU member should enable construction output states in particular. stability in the EU. Only time will tell whether governments will begin to Exchange rate fluctuations do, focus on stimulating construction however, continue to have a significant and infrastructure investment as a impact on the overall cost of delivery, way to further boost economies, especially in those markets bordering particularly with the backdrop of ultra- the eastern fringes of the Eurozone low interest rates and the longer-term which continue to import considerable effectiveness of quantitative easing quantities of finished materials. now under scrutiny.

With external economic turbulence Michael Hubbard is a specialist cost appearing over the horizon, it will be researcher and associate at AECOM, London.

AECOM 29 AECOM Ireland Annual Review 2017

The 81st Euroconstruct Conference hosted by DKM Economic Consultants in Dublin in June 2016, provided real insight into construction trends across Europe. The table and map on this page set out Euroconstruct’s projected construction market growth rates to 2018 across 19 European countries, including Ireland. Above 10% 5% to10% Figure 5 3% to 4% 2015–2018 Growth prospects 2% to less than 3% (Annual average percentage growth) Source: Euroconstruct, DKM Economic Consultants 0% to less than 2% SLOVAK REPUBLIC

AUSTRIA

2015–2018 Euroconstruct Construction economy market

Overall % 1.9% 2.6% average pa

Cumulative 5.7% 7.9% growth %

Table 2 2015–2018 Growth prospects

(Annual average percentage growth) Source: Euroconstruct, DKM Economic Consultants

Percentage Country Annual percentage growth AA&G Comment 2016 2017 2018 2015 — 2018 >10% Ireland 14.4 16.0 7.4 12.5 Playing catch-up after a dearth of building activity for six years until 2014. Significant volume of projects in the pipeline if certain conditions can be met, such as access to finance and financial viability.

5% to 10% Poland 5.8 7.2 8.7 7.2 Relatively robust economic growth prospects Hungary 1.1 7.0 6.9 5.0 plus ramping up of 2014 – 2020 EU funding round is expected to impact in 2017 and 2018.

3% to 4% Netherlands 3.6 4.0 4.1 3.9 Most countries in this group, with the exception Spain 3.7 4.0 3.5 3.7 of Norway, have begun to recover after several Norway 4.1 2.2 3.9 3.4 years of recession. Budget consolidation Portugal 2.5 3.0 4.5 3.3 measures continue to have an impact in Spain, France 2.5 3.9 3.1 3.2 Portugal and France, yet their recovering economies are boosting corporate profits and non-residential investment.

2% to <3% Denmark 1.8 2.7 3.2 2.6 Three of the Nordic countries are expected to United Kingdom 2.1 2.9 2.6 2.5 recover modest growth, despite concerns in Czech Republic 1.9 2.4 3.3 2.5 Sweden about skills shortages and increasing Finland 5.3 1.1 0.6 2.3 building costs. In Italy, a relaunch of the construction Sweden 4.5 1.8 0.2 2.2 sector, combined with increased spending on Italy 1.8 2.1 2.0 2.0 infrastructure and renovation, generate a stable growth path. Denmark benefits from increased spending on refugees and a large hospital building programme, yet growth is modest. A rescheduling of major civils projects and slower than anticipated growth in house building generate an equally modest performance in the UK.

0% to <2% Belguim 1.0 2.0 2.2 1.8 The economies in this group are relatively weak Austria 0.8 1.3 1.9 1.3 while public budgets in Austria continue to be tight Switzerland 1.2 0.5 1.7 1.1 and Switzerland struggles with a difficult business Germany 2.2 1.0 0.1 1.1 climate for investment. Germany’s weak prospects Slovak Republic 2.0 1.3 -1.5 0.6 are down to a cautious corporate sector and financially constrained municipalities, despite housing benefiting from increased investment for refugees.

30 AECOM lder Hey Research and Education Facility, Liverpool, United Kingdom. AECOM services: Acoustics, building structures, cost management, fi re engineering, mechanical, electrical and plumbing, sustainability. Image courtesy of Richard Brine

Above 10% 5% to10% 3% to 4% 2% to less than 3% 0% to less than 2%

Thought leadership

AECOM 31 AECOM Ireland Annual Review 2017

Event venues: a catalyst for regeneration

Along with delivering all the fun world are expected to descend upon to the future — was embedded in and emotion of staging great major the town of Portrush. the design process. In Brazil, the sporting events, venues, stadiums masterplanning process always and arenas create the opportunity Targeted investment drives a included a legacy plan with the goal of for broader positive change. There positive legacy ensuring that the transportation, utility is a responsibility associated with The approach to securing a and social infrastructure as well as the financial investment, energy and positive legacy for major events is open space provision were sized goodwill necessary to deliver venues to ensure that a significant portion for the future creation of a new that spread far beyond the stands to of the spending is linked directly sustainable neighbourhood. provide a catalyst for regeneration. to a permanent investment in the local community. In AECOM’s A crucial component in securing Many studies have confirmed the masterplanning for the London 2012 the future is community goodwill positive effects of hosting major Olympic and Paralympic games for and support. Local residents need sporting events for the local and example, 70 per cent of all costs were to be involved early in discussions, regional economy. One only has to look invested in public transport, road to understand the challenges and to the positive outcomes following on network, utilities infrastructure, land opportunities, to be part of the from the London 2012 Olympic and and waterways remediation and the decision making process and ultimately Paralympic games to see the benefits provision of public open space, homes, to become project ambassadors. to local communities. It’s difficult to key buildings including the stadium, The power of community champions guess how long the regeneration of the aquatics centre, footpaths, cycleways cannot be overstated in helping to Stratford area of London would have and more. A global event such as the deliver a positive outcome. taken without the games, but another Olympic and Paralympic games has a decade could easily have elapsed. fixed deadline for delivery combined Knowing that the legacy planning is with dedicated funding and the working is about much more than The 2019 British Open at Royal concerted political economic success and seeing Portrush is expected to be the will to make it happen. This is an land prices rising, it’s about the biggest sporting event ever held in ideal condition for delivering bigger picture, about the creation of NI, generating more than £70 million regeneration projects. well-served, safe and sought after in terms of economic impact and communities where people will want destination marketing benefit. With For the Rio 2016 Olympic and to stay, put down roots and bring up the 148th Open being staged outside Paralympic Games, AECOM’s families. of Scotland and England for only fundamental approach to the the second time, sports fans from masterplanning — creating a great Design for a state of awe and throughout Ireland and around the event and venues, but always looking excitement How do you design a stadium to compete with the benefits that televised sports offer — replays, interviews and exhaustive data about every score, goal and participant? For most fans, the love of sport is a shared experience: the pull of the crowd, the drama of a stadium. As specialist sports designers, AECOM

Curragh Racecourse, Curragh, Co. Kildare. AECOM services: Civil & structural engineering, cost management, mechancial and electrical engineering, fire safety consultancy, project supervisor design process, facade and assigned certifier role.

32 AECOM is constantly redefining what it means transportation networks. It also enables redevelopment of the facilities, with a to exceed fans’ expectations, deliver developers and operators to consider construction programme developed innovative stadium experiences and the option of a wider cultural and around both European Championship create well-used, popular destinations. leisure development — a footfall which Qualifiers and Irish League fixtures. Trends in stadium design have connects to a wider audience. Making Three new stands and a refurbished reflected the need for a more these sporting destinations an integral fourth now provide new changing, interactive experience for fans, part of the urban fabric, used by elite training, hospitality, media, office and expanding premium seating, better athletes and owned by the community storage facilities and increase the accommodation for players, a higher as a whole, will inherently create ground’s capacity level of family entertainment and everyday destinations that take on a to 18,600. increased technology. Every venue life of their own and that are loved by should strive to leave visitors with a the community, city and beyond. Seize the Opportunity state of awe and excitement. The opportunity to maximise spectator As Ireland prepares to bid for the experience isn’t just something that Rugby World Cup in 2023, there are As symbols of the sport itself and also applies to new build stadiums in lessons to be learned from the bidding, often of the town, city or country within new locations. Existing venues can planning and hosting of major sporting which it is located, stadiums and arenas increase attendance and improve events across the globe. Bidding for have a responsibility to be distinct, the experience through careful major sporting events can catalyse memorable and beautiful. These often consideration of the needs and wants regeneration and help cities figure out intangible qualities are only achieved of their users as well as reflecting on their long term futures. through vision, investigation, creativity the amenities that might be needed and innovation. to enhance the day or night outing. Sam McDowell, For example, upgrades to corporate Director, Building Engineering Location, Location, Location hospitality areas, bars, food kiosks and Not surprisingly, the location of family friendly entertainment outside of stadiums and arenas takes a central the main event. role in their success. Despite the often higher land values, a city centre Another option is the complete Rio Olympics Stadium, location means greater attendance redevelopment of existing facilities, Rio de Janeiro, Brazil. from the local community as well as as at the recently opened NI National AECOM services: Mechanical and electrical national and international fans with Football Stadium at Windsor Park in consultancy, masterplanning, landscape the benefit of access to existing Belfast. This project saw the complete architecture, civil and structural engineering.

AECOM 33 AECOM Ireland Annual Review 2017

Empty building syndrome

Organisations use office space far are consistent: workspace is grossly a range of different work settings for less than they realise. AECOM’s under-utilised. This level of occupancy different tasks; empowering people Time Utilisation Survey (TUS), which would not be accepted in other to exercise autonomy over when and our Strategy Plus team created for spheres. where they work; providing better IBM in the early 1990s, tracks how spatial support for collaboration and office space is used over time. We’ve The role of the office building is communication; and supporting culture been tracking global office space changing change programmes. data through the survey for more While facilities or property teams than a decade, with the latest figures in many major organisations have One way of achieving each of these showing that organisations are still been attempting to increase the is through agile working — breaking failing to intensification of space use to reduce the connection between one person reap the benefits of their investment real-estate costs, there has been a and one desk. The productivity in ‘place’. countervailing trend for work to leave gain from providing a range of the building: increasingly, work is work settings, where you align the Today, our TUS is a tablet-based tool, becoming something we do, wherever workspace with how people actually which we use to observe spaces and we are, rather than a place we go, nine- work, can far exceed the initial costs how people use them, typically making to-five. of implementation. It would seem and tracking observations every hour, that low building occupancy ought to usually from 8am-6pm, for two weeks. Added to this, how people work is constitute a ‘low-hanging fruit’ for many But this can vary, depending on the changing. When people do spend time organisations in terms of opportunities client. in the office, they often no longer sit for getting more from existing at the same desk all day. People need resources. Yet, although people already The data we collect goes into our to talk, collaborate, come up with new work across a wide range of spaces, global TUS database, which crosses ideas, concentrate and think: people many organisations still only provide sectors and geographies. We have need to be able to move quickly and basic, open-plan solutions. interrogated this powerful resource, easily between types of work and types which covers nearly 400 buildings in of spaces. Investing in long-term change 27 countries and 8.9 million individual Why is this so? One problem for observations of space use over a Both these trends — work moving out organisations is a lack of boardroom decade. The outcomes are compelling, of the office and the changing nature support for the kind of comprehensive showing a consistent under-utilisation of work — mean that the role of the change that the working environment of office space. office building is changing too, and this can bring. A new environment by itself change is one that organisations can is not enough: significant cultural Gross under-use exploit creatively. change is needed to help people Our database reveals (Figure 6, work differently and thereby achieve rightmost bar) that workspaces (desks, Using space more creatively to the productivity gains possible from offices and other types of workspace) unlock innovation aligning the office workplace to how are occupied on average 42 per cent The ‘spare’ capacity in our office people actually work. In reality, the of the time, and that people spend buildings, evident in the graphs challenge is about changing mind-sets time elsewhere in the building, away from our TUS database, brings —not just of staff, but of the people from their desks, a further 18 per cent opportunities for organisations to who run organisations. They need to of the time. Therefore, on average, achieve considerable benefits. These see office space as an asset that can 40 per cent — well over one third benefits are far wider in scope than be used creatively to bring about real — of workspaces are empty at any simple real-estate cost savings: cultural change for the business. Too point during core working, and yet using existing office space more often, though, conversations about organisations are paying for this empty creatively can potentially unlock the synergy between the working space. considerable increases in innovation environment and cultural change get and productivity. stifled by concentrating on short-term While there is some variation across space gains rather than long-term sectors (Figure 7) and geographies What do we mean by ‘using space value. (Figure 6), the general occupancy levels more creatively’? It’s about providing

34 AECOM The future of work occupiers should focus on the gap integrating people, human resources, Thus, the construction industry and between how people use the space information technology, brand, facilities occupier organisations need to go and how they could use it to the best management and buildings. beyond implementing desk-sharing potential of the organisation — the strategies and ask more fundamental behavioural and cultural gap. We Nicola Gillen, questions about how much work has also need to challenge traditional Global Strategy Plus Lead changed and about the changing role construction industry thinking, and of the office in the future. Instead of its focus on discrete, stand-alone Carolyn Whitehead, focusing on the gap between actual projects, instead encouraging a focus Senior Data Specialist, London and potential space occupancy, on longer-term real estate programmes

Figure 6 Occupancy of workspaces, by region (data spanning period 2004-2014)

100% All workspaces % empty 80% All workspaces 60% % temp unoccupied

40% All workspaces 20% % occupied

0% Source: AECOM TUS database Africa Europe Europe Central Central regions Average Average America across all across and Sout h and Sout Middle East Asia-Pacific (excluding UK) (excluding North America United Kingdom United

Figure 7 Occupancy of workspaces, by sector (data spanning period 2004-2014)

100% All workspaces % empty 80%

All workspaces 60% % temp unoccupied

40%

All workspaces 20% % occupied

0% Source: AECOM TUS database Media Utilities Finance Telecoms Insurance Healthcare Technology Engineering Manufacturing Petrochemicals Pharmaceuticals Retail and banking Retail Local government Local Government agency Government Business consultancy Government departmentGovernment Banking/financial servicesBanking/financial Built environment specialists Built environment Professional organisation/union Professional Public infrastructure management Public infrastructure

AECOM 35 AECOM Ireland Annual Review 2017

AECOM Review 2017 survey

As part of our market research, A number of survey respondents “Banking and funding availability is a we surveyed clients, consultants included very interesting contributions significant issue in relation to private and contractors across Ireland’s in the comments section and we have housing supply. We are engaged in construction industry, asking them included a sample of these here: a number of residential projects in 10 questions about the construction which either funding, infrastructure industry and their businesses “From a private construction company — or both, are inhibitors and delay to find out their opinions on the with a long proven track record it progress.” opportunities, challenges and overall would seem to us that access to prospects for 2017 and beyond. finance on an equal footing is required “ Delays to fire certificates are a for the construction sector. The large threat, taking upwards of six-12 Through the results, it is clear that domestic financial institutions have months, but they should only take 12 Britain’s 2016 Brexit vote decision the doors open but the vaults closed weeks maximum, otherwise you can’t has inevitably impacted on people’s even with high levels of security plan for the often onerous conditions thoughts about the future of in place”. that can arise.” Ireland’s construction industry; notwithstanding this, the majority “The key challenge as an architect is “Government takes a big bite out of of respondents feel positive about the poorly defined role of assigned the cost of a house; eliminate VAT on 2017, with 69 per cent anticipating an certifier/designer and the liabilities houses for two years. Introduce a tax increase in business. and undercutting involved, and the on zoned unused sites immediately. extremely questionable service Ask the people who produce houses Overall, the results also show that provision by other consultants.” what to do, not economists and respondents are most concerned academics.” about resource shortages and controlling costs impacting on their businesses in 2017, on the industry as a whole, and on Ireland’s ability to attract future foreign direct investment.

Question 1 Question 2 Indicate in order of difficulty, the key challenges facing your business How would you best describe the likely impact of Brexit on your operations in 2017? business over the next two years?

Very positive Very negative

Controling costs Somewhat positive Staff retention/recruitment

Winning new business Somewhat negative Profit/loss levels

Others

Neutral Least Difficulty Most

36 AECOM Question 3 Question 4 Do you anticipate your level of business Post March 2019 (anticipated formal UK Exit date), do you anticipate your to increase/decrease in 2017? level of business to increase/decrease as a result of Brexit?

No change No change Increase

Increase

Decrease

Decrease

Question 5 Question 6 Indicate in order of influence the key factors likely to drive construction Indicate in order of significance the sectors presenting the best industry growth in 2017? opportunities for construction growth in 2017?

Government Private sector building capital spending

International investment Housing

Domestic private Public sector building investment

Consumer spending Civil infrastructure

Other International

Least Influence Most Least Significance Most

Question 7 Question 8 Indicate in order of significance the sub-sectors within private sector Indicate in order of significance the factors most likely to present building, presenting the best opportunities for construction growth challenges in attracting Foreign Direct Investment (FDI) to your in 2017? region in 2017?

Commercial Skills shortage Cost competitiveness Industrial Deficiencies in infrastructure Retail Housing accommodation for employees Construction industry Agriculture/food capacity International competition Other Statutory approvals processes Least Significance Most Fall-out from Brexit

Other

Least Significance Most

Question 9 Question 10 Indicate in order of significance the most effective actions the Indicate in order of significance which factors present the biggest Government could initiate to address the current housing crisis? challenges to construction projects in 2017?

Significant increase in Government house building Resources PPP house building programmes Tender inflation Further tax incentives/ change for private building Statutory consents/BCAR Government purchase of surplus stock GCCC interim measures

Increase rent supplement Lead times on material supply

Other Contractual disputes

Least Significance Most Quality control

Least Significance Most

AECOM 37 AECOM Ireland Annual Review 2017

Indicative building costs

Indicative building costs Republic of Ireland Northern Ireland € per square metre Stg £ per square metre Healthcare Hospitals 2,300–3,700 1,850–3,600 Primary care centres 1,800–2,250 1,250–1,850 Nursing homes 1,800–2,350 1,150–1,850

Education Primary schools 1,210–1,500 1,150–1,250 Secondary schools 1,210–1,500 1,150–1,300 Third level 1,800–2,850 1,250–2,200

Commercial offi ces Shell & core (landlord fi t-out) 1,700–2,600 1,150–1,700 Owner occupier 1,950–3,100 1,450–2,600 Offi ces fi t-out Basic 400–750 225–475 Medium 750–1,100 475–825 High 1,100–1,350 825–1,050 Top 1,350–2,100 1,050–1,950

Shopping centres Shell & core 900–1,400 625–1,250 Mall 1,750–3,000 1,300–1,550 Fit-out 1.050–1,800 625–1,650

Residential Apartments 1,500–1,900 925–1,550 Apartments (12–16 storey) 2,000–2,650 1,500–1,950 Social housing 1,200–1,700 775–1,100 Sheltered housing 1,200–1,800 825–1,100 Housing (suburban housing) 1,050–1,450 725–1,150

Industrial Warehouse/factory shell 700–950 575–825 Factory (basic) 850–1,250 625–1,250 High spec factory Shell & core 1,100–1,500 725–1,150 Fit-out 800–1,350 525–925

Leisure Hotels 3 to 4 star 1,750–2,500 1,450–1,950 5 star 2,500–3,700 2,250–3,600 Swimming pools 60% wet/40% dry 2,100–2,600 1,850–2,250

Car parks Multi-storey 450–800 375–675 Single basement 625–1,050 475–825 Double basement 850–1,350 625–1,050

The fi gures quoted are for mid-range buildings in the Dublin and Belfast When considering building costs, you should check if areas at January 2017 prices. It is possible that tenders will be received costs include: outside these ranges dependent on a range of factors including scale, complexity and specifi cation. Professional advice should be sought for – value added tax (at the applicable rate in each jurisdiction) specifi c projects. – professional fees – infl ation The AECOM indicative building costs should NOT be used for fi re – fi t-out insurance valuations or for residual valuations for funding purposes. – landlord fi t-out/landlord credits – furniture If you require a valuation for fi re insurance or more specifi c information, – planning levies, fees and charges please contact AECOM. – demolition and disposal of any deleterious materials – abnormal ground conditions

38 AECOM AECOM in Ireland news

AECOM 39 AECOM Ireland Annual Review 2017

AECOM Ireland gender The presentations were followed by approaches, as well as mentoring, diversity event round-table discussion groups on: could be implemented in most Gender diversity, inclusion and women – hiring the best people for the job organisations which, over time, would in leadership are becoming increasingly – glass ceilings have a real impact on the industry. important focuses for many – leading the way businesses. The issues and challenges – attracting females into male- It is clear that there is no single action associated with gender diversity in dominated industries or series of actions that will change construction were considered at a – changing the face of the the industry overnight. However, it is recent AECOM workshop in Dublin. The construction industry equally clear that there are a series workshop was attended by industry – female leadership traits of simple actions that individuals and leaders and representatives from – pay gap monitoring organisations can take that will, over various professional and contracting – role of mentoring programmes/ time, help influence gender diversity bodies and included presentations role models across the industry. from AECOM’s Global Strategy Plus Lead, Nicola Gillen; Head of Property There was a high level of engagement The industry is once again in a position at U.S.Friends Army First Base and Camp President Carroll of from the group in attendance. where skills shortages are having an the Society of Chartered Surveyors While a range of challenges were impact, particularly in Dublin. In the Ireland, Claire Solon; and Liz O’Donnell, identified, the consensus was battle for the best talent, organisations columnist, diversity advocate and that initiatives, including improved that can demonstrate they have a former Minister of State (pictured employment conditions and flexibility, positive, fair and flexible working below left to right). measured recruitment and promotion environment will be the winners.

40 AECOM Future development of Belfast and themes of ‘thinking big’ and “a joined where our civil infrastructure teams Northern Ireland up spatial vision” and the lessons support the NI Work+ initiative, a Around 80 people attended an learnt from carrying out this exercise local apprenticeship scheme in civil AECOM client dinner at Titanic Belfast in London. Guests were encouraged engineering officially launched by the Visitor Centre in June 2016, to share to consider how these themes might Institution of Civil Engineers and the expertise and ideas on Belfast and NI’s be applied to Belfast and NI to ensure Department for the Economy in June future growth, with guests including growth going forward. 2016. the Minister for the Economy, Simon Hamilton, and representatives from Apprenticeships In support of these schemes, AECOM various government departments, AECOM is fully committed to is promoting civil engineering as a financial institutions and developers. apprenticeship programmes and long-term career option among young employed over 100 apprentices and people, while potentially highlighting Andrew Jones, AECOM’s managing trainees in the UK and Ireland in 2016. an alternative route into the industry director of planning, design and Through our successful programme, where our apprentices develop along development, spoke at the event, 80 apprentices and trainees a path to higher levels of qualification drawingU.S. Armyon AECOM’s Base Camp work Carroll on the Big completing courses in 2016, of which and invaluable industry experience Bold Global Connected — London 40 per cent achieved distinction or first within the region. 2065 manifesto. Andrew discussed class results. the tough challenges around office accommodation, housing, employment At the end of 2016, we had nine and delivery of infrastructure within the apprentices employed across Belfast,

Members of the AECOM EMIA leadership team Pictured left to right: met First Minister of Northern Ireland, Rt Hon. Pat Flaherty, AECOM Chief Executive, UK & Ireland. Arlene Foster, MLA, at Stormont, NI, while in First Minister of Northern Ireland, Rt Hon. Arlene Belfast to attend AECOM’s Future Development Foster, MLA. Steve Morris, AECOM Chief Executive of Belfast & Northern Ireland event. EMIA, Peter Thompson, AECOM Business Development Director

AECOM 41 AECOM Ireland Annual Review 2017

Project Awards Dropbox A number of projects delivered with – Fit-Out Project of the Year 2016 the help of AECOM received awards in 2016. Roscommon County Council Lagan Weir Footbridge Civic Offices The Lagan Weir Footbridge project, – 2016 RIAI Best Public Building which featured on the cover of last – 2016 RIAI Best Sustainable year’s AECOM Annual Review, Building has won a range of awards in 2016 including; NUI Galway Biosciences Research Building – The Institution of Structural – The American Institute of Engineers: Northern Ireland Architects Committee Structural Engineering Awards: on The Environment (COTE) Medium project of the year Top Ten Award. This is a design award for sustainability by the – Royal Society of Ulster American Institute of Architects Architects (RSUA): Best Public (AIA) — the only award outside the Space Award 2016 United States of America.

– Royal Institution of Chartered Surveyors (RICS): Infrastructure Award 2016

Left: Lagan Weir Footbridge, Donegall Quay, Belfast.

Bottom left: NUI Galway Bio Medical Science Building, Galway.

Below: Dropbox, I Park Place, Hatch Street Upper, Dublin 2.

Opposite page: Roscommon County Council Civic Offices, Roscommon. Image courtesy of Christian Richters Photographer

42 AECOM AECOM 43 North South Interconnector, AECOM services: Overhead line routing, consultations, environmental impact assessment, expert witness for oral hearing and public inquiry.

Current projects include:

A6 Randalstown to Castledawson, Northern Ireland Department of Justice, Value for Money Review of Prisoner Transport Athy Distributor Road, Co. Kildare Dublin Airport Authority runway works BBC, Northern Ireland Dublin Airport capacity development Beaumont Hospital, Dublin Dublin Airport masterplan Belfast City Council, Leisure transformation programme Dublin City Council Ballymun boilerhouse, Dublin Belfast City Council Office Dún Laoghaire Shopping Centre, Dublin Bon Secours Hospital North Block Extension, Cork D7 Educate Together primary school, Grangegorman campus Brown Thomas, Dublin & Cork Endoscopy, Physical Medicine and Oncology, Capital Dock, Dublin Naas General Hospital, Co. Kildare Castlebar Hospice, Mayo ESB, Project Fitzwilliam fit out, Dublin Castletownbere Transport Study EY Offices, Dublin, Limerick and Belfast Cath lab and theatre, Our Lady’s Children’s Hospital Crumlin, Failte Ireland capital programme Dublin Foynes–Limerick improvement scheme, Limerick Central Bank headquarters, Dublin Frascati Shopping Centre, Dublin Churchfield Housing Phase 1, Southill, Limerick Grangegorman Development Agency, primary care centre, Citi North Wall Quay amenities, Dublin Dublin Clancy Quay residential scheme, Dublin Grangegorman Development Agency transport planning Clare Cultural Centre, Ennis, Co. Clare advisory services, Dublin Coláiste Chiaráin, Limerick Hynes Building, Galway Connemara Visitors Centre, Galway Irish Glass Bottle site, Dublin Cork City North West Primary Care Centre IT Tallaght campus, Dublin Cork-Limerick Strategic Corridor Assessment JP Morgan, Dublin Courts bundle PPP, Ireland Liffey Valley Shopping Centre, West Dublin Curragh Racecourse, Co. Kildare Limerick City & County Council, Opera site DCU Block F teaching block LinkedIn Headquarters, Dublin

44 AECOM LIT campus, Limerick Royal College of Surgeons, Dublin Mary Immaculate College, Limerick Sligo Hospital surgical block, Sligo Maynooth College masterplan Smarter Travel Areas evaluation Monaghan Town Traffic Management Strategy St. James’s Hospital H&H vertical extension, Dublin Motorway service areas PPP co. representative St. John’s Nursing Home, Dublin M50 variable speed limits business case, Dublin St Patrick’s Hospital, Dublin National Centre for Hereditary Coagulation Disorders St. Patrick’s School, Shannon, Co. Clare outpatient clinic (NCHCD), St. James’s Hospital, Dublin Strangford and New Bridge Integrated College’s, Co Down National Forensic Mental Health Services, Portrane, Co. Dublin TII - Transport planning advisory services for road and light rail National Gallery of Ireland, Dublin Trinity College Dublin medium voltage works New Maternity Hospital, Royal Victoria Hospital, Belfast University College Cork (UCC) Student Hub, UCC campus, Novosco, Belfast College road, Cork National Transport Authority framework for economic advice UCC Innovation Building, Cork Science and Innovation Park, on public transport Cork New student accommodation, National University of Ireland, University College Dublin, Newman House, Dublin Galway University of Limerick library, Limerick Omagh Integrated Primary School, Co. Tyrone University of Limerick pool & arena, Limerick Palm Court, Limerick University of Ulster Magee College teaching block, Parkmore Traffic Management Plan, Galway Derry-Londonderry Players Square residential scheme, Dublin Various data centres, Dublin Primary Care Centres PPP Woodvale and Shankill Housing, Belfast Prometric, Dublin Workday offices, Dublin Public Realm schemes, Portrush and Warrenpoint York Street interchange, Belfast Royal Belfast Hospital for Sick Children, Royal Victoria ZELTIQ, Galway Hospital, Belfast About AECOM

AECOM is built to deliver a better world. We design, build, finance and operate infrastructure assets for governments, businesses and organizations in more than 150 countries. As a fully integrated firm, we connect knowledge and experience across our global network of experts to help clients solve their most complex challenges. From high- performance buildings and infrastructure, to resilient communities and environments, to stable and secure nations, our work is transformative, differentiated and vital. A Fortune 500 firm, AECOM had revenue of approximately US$17.4 billion during fiscal year 2016. See how we deliver what others can only imagine at aecom.com and @AECOM.

See the AECOM Ireland profile fold-out in the centre of this document for full contact details of our management team and the office locations on the Island of Ireland.