SPVs – What are they and why do developers use them?
For some time, Real Estate development in the UK has been perceived as risky business for individuals or companies looking to cash in on lucrative opportunities within the built asset sector. This assertion is somewhat validated given that two-thirds of construction and infrastructure projects do no...
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Commercial Management
Posted by Karen Toms
Critical Path Analysis
Critical Path Analysis (CPA), also known as the Critical Path Method (CPM), is a powerful project management tool which has been used extensively for decades in the construction industry.
CPA assists you in defining and planning all of the tasks which are required in your project and how dependen...
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Contracts & Disputes
Posted by Dean Suttling
What is Culpable Delay?
If a project falls behind programme, proving or disproving liability for delay can be a complex and contentious subject for the contracting parties to resolve. Most construction contracts contain provisions for how completion dates can be extended if entitlement can be proven by the contractor. Subs...
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Procurement
Posted by Kate Kilborn
Building Regulations: a changing landscape
“Building standards are not sufficiently ambitious; they are overly complex and compliance is poor.” The 2018 Hackitt Review of Building Regulations and Fire Safety identified worrying deficiencies in the current system of building regulation. While clearly well-intentioned, the regulations can ...
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Procurement
Posted by James Finnie
How do I employ an architect?
As a developer running an SME property development business, where to start with employing an architect?
The guidelines set out in this article should help you choose the right architect.
How and where to start
The most obvious place would be to seek advice from others in your company, like par...
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Commercial Management
Posted by Callum Brown
Mock-ups and samples: How to assess construction details and finishes on your next project
“Failing to prepare, is preparing to fail” – it’s something we’ve all heard many times before, especially working in the construction industry. It comes across as a throw away phrase used as a rebuttal when people have left things until the last minute and invariably come asking you for he...
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Procurement
Posted by Sophie Parry
What should a lighting specification look like in 2020?
Lighting is becoming an increasingly complex part of building services and project delivery. The reason for this increase is due to several factors:
The development of LED lighting technology
Methods of controlling the lighting
Energy efficiency
Circular economy considerations
Emerg...
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Commercial Management
Posted by Nikhil Patel
The Five-Year Problem for Developers
In the world of construction and property development, we cannot escape the realities that have come about from the Brexit crisis. The sphere of build costs and development appraisals have been hit by the uncertainty that has materialised from the way in which the situation has been handled. Despite...
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Procurement
Posted by Dean Suttling
Packaging of Works – What is the Best Way to Split out a Project?
The packaging of works by contractors to subcontractors and subcontractors to SMEs is widespread in construction dependent on the scope and nature of projects undertaken. How to package up works and what influences the decision as to how small to break the packages down is generally driven by the ri...
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Procurement
Posted by Dean Suttling
Special Purpose Vehicles and Construction Management
If you were to contact Companies House and ask them how many Special Purpose Vehicles or ‘SPVs’ are currently operating, they wouldn’t be able to tell you as they are not legal entities. SPV’s, or as they are also known ‘Special Purpose Entities’, are usually a limited company but could ...
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Contracts & Disputes
Posted by Dean Suttling
NEC3 vs NEC4
Whilst NEC has been in operation since 1993, it was in 1995 after the publication of Sir Michael Latham’s report, which describes the use of NEC as “extremely attractive”, that it became what is now the go to contract for major infrastructure contracts in the UK.
NEC 3 was published in 2005...
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Contracts & Disputes
Posted by Dean Suttling
Adjudication vs Arbitration
The resolution of disputes in the construction industry is usually achieved through a tiered system of escalation, starting with mediation followed by adjudication, arbitration, and litigation. However, this is mostly driven by behaviours and established working relationships as, according to the Co...
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Contracts & Disputes
Posted by Dean Suttling
The Housing, Grants, Construction and Regeneration Act (HGCRA) and the Scheme for Construction Contracts
In the 1980s, construction was considered to offer low value for money due to the adversarial nature of contract terms leading to high volume of disputes, coupled with a drive to award contracts on the lowest possible tender price. This created a race to the bottom whereby unsustainable contract pri...
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Contracts & Disputes
Posted by Dean Suttling
Latent vs Patent Defects and How to Manage them
The occurrence of defects is an unfortunate part of construction activities, but with nearly all standard forms of contract containing clauses to deal with them, managing one should it arise can not be too difficult, can it?
Administering contractual provisions works best when all parties accept ...
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Procurement
Posted by Dean Suttling
Principle of Entitlement
Unless amended, all construction contracts contain the provision for changes to be made. This could be from the developer instructing them or by the contractor claiming that a relevant event, compensation event, variation etc has occurred. If it is the latter, and as a developer you’re receiving n...
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Procurement
Posted by Dean Suttling
Groundworks, Archaeology and Minimising Risk in Procurement
If you’re a Developer and you intend to proceed on a construction management basis then you’ll be procuring individual packages of works including groundworks and archaeology. Understanding the risk of excavating in the ground, what you can do to mitigate it, your own risk profile, and how to pa...
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Commercial Management
Posted by Dean Suttling
Minimising Variations
If you’re a developer with a finite amount of funding then one main priority will be to minimise variations, or at the very least ensure you’re aware of the potential for variations before they occur and that you have made adequate allowance for them through contingency.
The Oxford dictionary...
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Contracts & Disputes
Posted by Dean Suttling
Payment Mechanisms – What are your legal requirements as a client or developer?
Payment in the construction industry is always a hot topic. The government’s recent drive to restrict bidders for government contracts based on their payment practices is very telling. This, coupled with the fact that some major contractors been recently been placed into administration by their fi...
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Commercial Management
Posted by Dean Suttling
Development Briefs
The development management process for pre-construction can be broken down into five different phases, from an initial concept all the way through to full planning permission. A development brief is required for the early pre-construction phases as the development evolves through these stages.
If...
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Commercial Management
Posted by Dean Suttling
Cost Planning in Construction
Cost Plans – why are they needed?
As a developer, you have criteria that inform what you want your project to deliver. These are called Employer’s requirements and outline the performance specification, which is used to inform the supply chain that any design or product must deliver on the stat...
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Commercial Management
Posted by Dean Suttling
Contractor Insolvency – What do you do when it affects your project?
What is the difference between liquidation, administration and insolvency?
Issues regarding liquidity are sadly commonplace in the construction industry for companies of all sizes. Small margins and drawn out payment processes can put a real strain on a company’s cashflow. If projects do not proc...
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Commercial Management
Posted by Dean Suttling
Risk Management in Construction
Why is risk management important?
If a project is at the very earliest stage of inception, there will likely be a high amount of uncertainty compared to when the project is close to completion. It’s good project management to acknowledge these risks and proactively manage them. This starts by ide...
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Commercial Management
Posted by Paul Heming
Delay Analysis
We put forward the following scenario to Jason Farnell, Adjudicator and CEDR Accredited Mediator:
"We’re a Property Developer who typically acts as a Main Contractor on projects. During a recent project we experienced programme issues relating to the design team and suffered delays that extended...
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Contracts & Disputes
Posted by Paul Heming
RFIs and Design Management
We put forward the following scenario to Jason Farnell, Adjudicator and CEDR Accredited Mediator:
"I'm a Property Developer who typically acts as a Main Contractor on projects. I’m interested in understanding more about how the Design Management process is best managed – with a particular emph...
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Commercial Management
Posted by Dean Suttling
Joint Venture Property Development
What is joint venture property development?
According to the Oxford dictionary, a joint venture is “a commercial enterprise undertaken jointly by two or more parties which otherwise retain their distinct identities.” In property development this extends to an arrangement between two or more par...
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Contracts & Disputes
Posted by Dean Suttling
Prime Cost Sums
During preparation of the design, the developer, usually via a directly commissioned Architect, will seek specialist advice about certain types of finish to a building, for example a certain type of cladding. The design and specification for the project may then be predicated on the use of this type...
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Contracts & Disputes
Posted by Manny Singh
Letter of Intent – What’s it for and should I start works upon receipt?
As a Quantity Surveyor working for a small main contractor, you’ve been issued a Letter of Intent (LOI) by your client whilst the contract is finalised. Although having not commercially managed a project pre-contract before, you have some queries as to what a Letter of Intent is and its parameters...
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Commercial Management
Posted by Dean Suttling
Preliminaries in Construction
If the direct or permanent construction works’ bill of quantities or work schedule is prepared using the design and specification, then general project ‘overheads’ such as time related elements (e.g. project management and general supervision), plus individual items such as approvals and testi...
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Contracts & Disputes
Posted by Dean Suttling
LADs in Construction
Construction contracts place emphasis on the insertion of clear dates for starting works, when the works must be completed by, and the provision for inserting dates that sections of the works must be completed by. Commercial factors drive this necessity for clarity on the timing of the works. The Co...
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Commercial Management
Posted by Dean Suttling
Schedule of Works
What is a Schedule of Works?
A Schedule of Works is a contract document that lists the works required on a project. The Schedule references the requirements included in the specifications and contract drawings plus any additional ‘builders work’ or ‘fixing schedule’ type items, this is comm...
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Procurement
Posted by Jon Williams
Construction Partnering
What is Construction Partnering?
Construction partnering originated in the United States during the early 1980s. It was developed in connection with procurement as a technique for reducing the cost of contract disputes through improved communications, processes and relationships across the project ...
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Commercial Management
Posted by Dean Suttling
Construction Phase Plan
What is a Construction Phase Plan (CPP)?
If you have worked in the construction industry then you are likely to have heard reference made to the Construction Design Management Regulations or CDM.
The CDM Regulations were first introduced in 1994 following a European Directive (92/57/EEC) concern...
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Contracts & Disputes
Posted by Jon Williams
Practical Completion – When is it achieved and how is it managed?
Practical Completion, often referred to as “PC”, is considered to mean the building is finished to a state where it can be put to its intended use, but small or minor defects may still be present.
Practical Completion is not expressly defined within the JCT suite of Contracts, but it may be d...
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Contracts & Disputes
Posted by Dean Suttling
Dispute Resolution in Construction – An Overview
Disputes are unfortunately common in the construction industry due to several factors, most of which can be traced back to issues concerning payment or workmanship.
One example area would be a difference in assessment of a change in scope or, before even getting to the assessment, disputes can ar...
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Procurement
Posted by Jon Williams
Contract Sum Analysis
What exactly is a Contract Sum Analysis?
A Contract Sum Analysis (CSA) is an alternative pricing document to a Schedule of Works (SoW) / Bill of Quantities (BoQ). It’s often prepared in a standard format by the Employers Agent to support the tender returns review. The Employers Agent requests tha...
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Contracts & Disputes
Posted by Dean Suttling
Performance Bonds in Construction
You’re about to enter into a contract as a developer placing a contract. You have concerns about the credit of the organisation you are about to enter into contract with or simply want surety concerning the contractor’s performance to protect your investment. Rather than seek alternative supplie...
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Contracts & Disputes
Posted by Dean Suttling
Provisional Sum
Provisional Sum - When and how should you use it?
Provisional sums are perceived as difficult to manage, to understand and to execute. Should you only include them in the overall price as a last resort?
Whilst they are appealing as lump sum items, Provisional Sums are in effect risk items where ...
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Contracts & Disputes
Posted by Jon Williams
Bill of Quantities
Your essential guide to producing a Bill of Quantities
A Bill of Quantities (BoQ / BQ) is a document prepared to allow the quantification and costing of construction works and may be prepared during several stages on a project for all of the works or a sample of the works.
Typically, BoQs are pr...
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Commercial Management
Posted by Paul Heming
Defects Liability Period
What is the Defects Liability Period and how is it relevant to Subcontracts I place?
We put forward the following scenario to Jason Farnell, Adjudicator and CEDR Accredited Mediator:
I'm a Property Developer who typically acts as a Main Contractor on projects and I’m interested in understanding...
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Contracts & Disputes
Posted by Jon Williams
JCT Insurance: A Breakdown
Construction can be a highly complex and dangerous activity. Each construction project will have its own complex risks inherited from its design and surroundings. These risks may be to persons, being site operatives, visitors to site or members of the public, or risks to the actual construction work...
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Contracts & Disputes
Posted by Jon Williams
JCT Payment Terms
In the latest iteration of the JCT suite of contracts (JCT16), there were three key changes from (JCT11). These changes were:
The introduction of a Common Valuation Date or “IVD” Interim Valuation Date, which intends to align the cashflow throughout a project.
The frequency of applicatio...
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Procurement
Posted by Paul Heming
Collateral Warranties in Construction
What are collateral warranties and do I need them on my project?
We put forward the following scenario to Jason Farnell, Adjudicator and CEDR Accredited Mediator:
I'm a Property Developer working on projects across London and the South East and I’m interested in understanding more about Collate...
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Contracts & Disputes
Posted by Yashwant Tohooloo
JCT vs NEC: Which is best for your project?
JCT and NEC contracts are standard form of contracts. Both contracts provide a variety of options that suit the needs and requirements of clients (employers). However, you do need to understand project requirements and the level of control required by the client when selecting a contract form and a ...
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Commercial Management
Posted by Paul Heming
Construction Management Procurement
An Introduction to Construction Management
Construction Management is a totally unique procurement route. Using this method, the developer directly employs multiple subcontractors (referred to as Trade Contractors) instead of employing a single Main Contractor. The single feature that makes Constru...
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Procurement
Posted by Paul Heming
Design and Build Contracting for Developers
The Scenario
We put forward the following scenario to Jason Farnell, Adjudicator and CEDR Accredited Mediator.
I'm a Developer with a number of secured sites across the UK. Our business has historically taken the Traditional, Architect-led approach to procurement but as we look to expand and grow...
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Contracts & Disputes
Posted by Paul Heming
Contract Acceptance by Commencement
The Scenario
We put forward the following scenario to Jason Farnell, Adjudicator and CEDR Accredited Mediator.
I'm a Main Contractor working on a JCT Standard Building Contract (2016).
I've agreed a price and programme with a Subcontractor following receipt of their quotation and having held a...
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Contracts & Disputes
Posted by Paul Heming
Management Contracting Procurement
Management Contracting is a form of construction procurement where the Client for a project employs different Subcontractors directly. The Client has a Main Contractor in place that is responsible for managing the Subcontractors, but is not in contract with them in the same way as with traditional p...
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Contracts & Disputes
Posted by Paul Heming
The JCT and Pay Less Notice
Payment in the construction industry has been a hot-topic for many years. Whether it’s payment between Employer and Main Contractor, or among Main Contractors and Subcontractors, the chance of a dispute remains higher in construction than it does in most industries.
In response to this, the UK ...
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Contracts & Disputes
Posted by Paul Heming
Two Stage Tendering
Two stage tendering, sometimes referred to as “negotiated tendering” or “two stage selective tendering”, is a unique construction procurement method because it takes place in two separate and clearly defined stages.
In two stage tendering, the Contractor is involved to enhance buildabilit...
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Contracts & Disputes
Posted by Paul Heming
Loss and Expense and LADs in JCT Contracts
The Scenario
We put forward the following scenario to Jason Farnell, Adjudicator and CEDR Accredited Mediator.
"I'm a Main Contractor working on an unamended JCT Design and Build Contract (2016). The project has achieved Practical Completion 8-weeks late owing to a variety of delays by various Su...
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Procurement
Posted by Paul Heming
Construction Procurement
Procurement methods in the UK construction market work with an Employer issuing a Main Contract to one Main Contractor and thereafter, the Main Contractor issues multiple Subcontracts to various Subcontractors. [1]
Projects in the £25 million range can involve a main contractor with approximatel...
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Contracts & Disputes
Posted by Paul Heming
The JCT and Extensions of Time
Most construction contracts will suffer some form of delay during its lifecycle. In all Joint Contracts Tribunal (JCT) form of contracts, a delay event is called a “Relevant Event” and the extension of time is defined as an “Adjustment of the Completion Date”.
Whether during the design, t...
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Contracts & Disputes
Posted by Paul Heming
The JCT and Relevant Events
The construction industry is full of jargon and it can be difficult to understand all the acronyms and terms used. It’s even more difficult when it comes to construction contracts. We’ve written this article to provide clarity on the term “Relevant Events” and what it means in Joint Contract...
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Contracts & Disputes
Posted by Paul Heming
Dealing with Errors, Divergencies and Discrepancies in Variations
The scenario
We put forward the following scenario to Jason Farnell, Adjudicator and CEDR Accredited Mediator.
"I'm working on an amended JCT D & B Subcontract where we're contracted to clad the entire building envelope from Ground to Roof.
An area of our scope had an inconsistency - part ...
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Sales & Marketing
Posted by Paul Heming
London Development Specification – 2. Entry Level
This first part to our London Development Specification series looks at Entry-Level specification.
As mentioned in our introduction we won't be assigning these to price points as location plays a far too significant role in pricing. What we will look at is seeing what the general offering is for ...
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Sales & Marketing
Posted by Paul Heming
London Development Specification – 1. An Introduction
We have recently received a significant amount of enquiries regarding the specification levels of new projects in London.
What to offer, why, what is the competition doing. We wanted to be able to give some clarity on what is happening in the marketplace so that developers can understand what the...
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Contracts & Disputes
Posted by Paul Heming
NEC Contracts and Cash Flow Management
"I'm a Main Contractor Tendering for a project where the Contract will be an NEC Option A Contract.
We want to understand what the potential impacts of this Contract Type are in terms of Cash Flow and, the best management practices generally."
That’s the scenario that we put forward to Jason ...
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Contracts & Disputes
Posted by Paul Heming
Design and Build Contracts – Increase your profit
A Design and Build Contract is a contract where the Main Contractor offers to design and build a project for a price that includes both the design and construction.
What I found striking throughout my career is the lack of contractual knowledge of even some of the most highly-skilled construction...
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Contracts & Disputes
Posted by Paul Heming
Can I claim for loss of profit in variations?
The scenario:
I’m working on an unamended JCT 2016 Building Contract with a £3m lump sum Contract Sum. The Employer is looking to amend an element of the works and has issued an instruction to omit a relatively large portion (approximately 10% in financial terms) of our scope of works.
These ...
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Contracts & Disputes
Posted by Paul Heming
The client is late issuing their Notice to Commence works on site – what should I do?
Ever wondered the best way to respond when your client is late issuing their Notice to Commence works on site?
We’ve put together a real-life scenario where this happened and asked Jason Farnell, Adjudicator and CEDR Accredited Mediator, to provide actionable guidance on how you can best manage...
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Contracts & Disputes
Posted by Paul Heming
What happens when you are late issuing a Payment Notice?
We've all felt that pang of dread when you realise you're late to issue a payment notice on time, and it's on a questionable subcontractor valuation that you need to issue a Pay Less notice. What are your options when that happens?
Well, we put the following scenario to the experts at Commercial ...
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Commercial Management
Posted by Paul Heming
Giving Notice – Project Lifecycle 13
On almost every project, whether you’re a Main or Subcontractor, you’ll have experienced a delay to your works due to a lack of access on site. The Contract states you’ll be granted unrestricted access in an area but that isn’t the case - you’re sharing the area, or the conditions in the a...
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Contracts & Disputes
Posted by Paul Heming
Notices to Commence – Project Lifecycle 12
A Notice to Commence (NTC) is a formal communication from the Client to the Contractor stating the date the Contractor can begin work.
The reason NTC’s are so important is they confirm the date when the contract performance starts and therefore, they're used to calculate the completion date and...
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Contracts & Disputes
Posted by Paul Heming
PCSA Agreements – Project Lifecycle 11
Pre-Construction Services Agreements (PCSAs) are used to appoint design and build Subcontractors to carry out services before entering into contract and tend to be used as part of a strategy to remove risk.
PCSAs are generally advantageous as the early involvement of ‘Specialists’ can lead to...
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Commercial Management
Posted by Paul Heming
Project Reviews – Project Lifecycle 10
For whatever reason, there is a whole list of names given for Project Review meetings in Construction. Depending on where you’ve worked, you’ve likely heard them referred to as ‘Project Reviews’, ‘Cost to Completes’, ‘MPR’s’, ‘CVR’s – the list goes on.
What shouldn’t cha...
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We’ve discussed cash-flow and its importance to running a project. Good cash-flow gives you flexibility and control during Sub-Contract procurement.
How often have you been offered a discount in trade for reduced payment terms by a Subcontractor? If your project is cash positive and you could a...
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Commercial Management
Posted by Paul Heming
Cash is your best friend – Project Lifecycle 8
Cash is your best mate…
In all lines of business ‘Cash is King’, but in construction, it’s more critical than most. There are so many reasons why cash in your bank rather than in your clients is important – whether it’s to buy equipment, employ and pay subcontractors, or simply to imp...
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Commercial Management
Posted by Paul Heming
Risks and Opportunities – Project Lifecycle 7
In any industry, for a project to be a success, a defined project strategy is critical - Construction is no different.
So, what’s the strategy on your project? How are you interacting with your client? Are there Value Engineering opportunities and key risks you need to focus on? Are there speci...
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Contracts & Disputes
Posted by Christopher Barber
Stealth CDP
The design element of a contract represents one of the best opportunities for a contractor to increase margins on a project. It also represents one of the riskiest areas where you can lose margin. Ever been hit by a Stealth CDP (Contractor’s Design Portion)? If you have, there’s a good chance yo...
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Contracts & Disputes
Posted by Paul Heming
Design Delay Claims – Project Lifecycle 6
Last week we discussed the various tools to use to make sure you can claim for time lost during the design period.
I’m a firm believer that when you suffer delays in construction, the priority is to get an Extension of Time and following that, to recover the money associated. The question is - ...
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Commercial Management
Posted by Paul Heming
Design Delays – Project Lifecycle 5
I’ve already mentioned that where Construction Contracts include design, my experience is that the success or failure of the programme, typically hinges on the success of the design period.
If like me, you’ve worked on contracts where your company had major design responsibility, design delay...
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Contracts & Disputes
Posted by Paul Heming
Understanding the contract – Project lifecycle 4
Understanding the contract is of absolute importance to the success of your project. Do you know how many days you have to give notice of a variation? What do you do when there is a delay event – are there particular rules on this?
Projects are not simple. Knowing how to act in difficult situat...
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Commercial Management
Posted by Paul Heming
Design Management Process – Project Lifecycle 3
Where Construction Contracts include design, my experience is that the success or failure of the project typically hinges on the success of the design period.
At tender stage, understanding, and successfully negotiating a favourable Design Management Process will help you to plan and deliver the ...
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Contracts & Disputes
Posted by Paul Heming
Programme Negotiations – Project Lifecycle 2
Contract negotiation almost always involves compromise to achieve a document that is acceptable to all parties. Projects may succeed or fail as a direct result of the terms and conditions in the contract and the quality of the programme is no different.
Successfully negotiating a favourable progr...
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Procurement
Posted by Christopher Barber
Variations – The Elephant in the Room
I’ve got breaking news for you, and you heard it here first: A lot of people in the construction industry don’t like Quantity Surveyors. In fact, you could probably split the industry into three groups. A third of the industry don’t like what we do; a third of the industry don’t know what we...
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Contracts & Disputes
Posted by Paul Heming
Order of Precedence – Project Lifecycle 1
What is Order of Precedence in Contracts?
Construction Contracts are often very large and include lots of different Numbered Documents like the drawings, scope of works etc. To give these documents meaning and to rank their importance, many contracts include an ‘Order of Precedence’ Clause whic...
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Commercial Management
Posted by Christopher Barber
Maximising your Tender Handover
One of the most important meetings in a project is the tender handover meeting from estimating to QS. I’ve been in hundreds of these meetings and they’re a hot spot for waffle! So much is discussed that is completely unimportant and irrelevant, particularly at this stage of the project.
Some pr...
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Procurement
Posted by Christopher Barber
Undervalued CPD – improving your Construction Knowledge via Specialist Subcontractors
In my experience, when I think about the best QS’ that I’ve come into contact with, they all share one thing in common. Not only do they have the pre-requisite contractual knowledge to do the job, but they also have a really sound practical understanding of construction. By best I mean the QS wh...
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Procurement
Posted by Christopher Barber
Eggs in one basket – weighing up the risk of multi-letting packages to one subcontractor
I was letting a ventilation package to a subcontractor and there was a big AHU (air handling unit) partially connected to the package. With the AHU, my initial thoughts were to buy the unit and have the ventilation subcontractor install it. Although this was my planned method to proceed, at tender, ...
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Procurement
Posted by Christopher Barber
Bringing your construction team into the procurement process
It’s difficult not to feel isolated as a QS. Everyone working around you on a project tends to work within a team, whereas the QS tends to work as the sole lead on the commercial aspects of the project. Where you fit into the dynamics of the project is integral, but to make sure you’re really ef...
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Procurement
Posted by Christopher Barber
Understanding where materials are sourced
A few years ago, I was trying to source a carpet that had been specified by the architect. I knew a little about carpets and competitive rates, and the specified product was double the rate of similar products I’d seen in the past. I approached my flooring contractor to ask if there was an alterna...
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Procurement
Posted by Christopher Barber
Making the most of equal approved
When you’re handed a job as a QS, you want to find the potential financial gains that you can make based on what you’ve allowed versus the scope, and if there is an equal approved opportunity. Getting a good understanding of this upfront is one of the most effective and simplest ways of internal...
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Procurement
Posted by Christopher Barber
Squeezing every penny – Is it really worth it?
Knowing when to stop squeezing your supply chain is an important intuition that you develop with time. Most people involved in procurement see their main objective as buying at the lowest price possible. But is the lowest price the lowest cost?
As a QS, I have felt that other people within the bu...
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Procurement
Posted by Christopher Barber
Spec and Drawings – Minimising your risk and reducing cost
Procurement is one of the most time-consuming tasks for a QS and when I've tendered packages in the past, I normally chose the spec and drawings approach. But, from my experiences as a subcontractor from the other side of the table, I’ve also seen it used as an opportunity for the main contractor ...
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Procurement
Posted by Christopher Barber
C-Link Upgrade!
We’ve just undergone some product upgrades at C-Link. We're really happy with the changes and think they'll have a big impact in helping our connect professionals with specialist contractors, and improve the procurement process all round.
Supply Chains
With C-Link, Pros can now host their en...
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Contracts & Disputes
Posted by Paul Heming
Payment Provisions: JCT Design & Build
As is usual in JCT contracts there are two methods for determining payments, termed ‘stage’ and ‘periodic’ payments; both of which provide for monthly payments, the difference being in the method of determining what is to be paid. The Contract Particulars giving the option for which paymen...
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Commercial Management
Posted by Paul Heming
Contractor Insurance Types
The complexities of insurance can be intimidating for many in the construction industry and it's easy to see why.
As legal documents, it's necessary for insurance contracts to be packed full of dense legal terminology – leading many to dismiss it as simply another regulatory hurdle to be overcome...
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Contracts & Disputes
Posted by Paul Heming
Payment Provisions – JCT Subcontracts
The sub-contract is drafted with the intention that valuations regime under the sub-contract should be linked to the Main Contract application dates, commencing with the Interim Valuation Date immediately following the commencement of a sub-contractor’s work on site. The due date for payment is 12...
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Commercial Management
Posted by Paul Heming
Costs increase with tender prices static – feeling the squeeze?
With many manufacturers reporting further rises in raw material prices in the third quarter of 2017 and only a small proportion of Main Contractors increasing tender prices to compensate, many are anticipating a squeeze on construction margins in the coming months.
The Construction Products Assoc...
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Contracts & Disputes
Posted by Paul Heming
Sectional Contracts – Reading between the lines!
CREDIT: Jason Farnell, Commercial Risk Management
In the recent judgement in Vinci Construction UK Limited and Beumer Group UK Limited it was argued, under a contract which had been divided into sections, that the delay damages were ‘uncertain, inoperable and unenforceable’ and that therefore t...
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Commercial Management
Posted by Paul Heming
Five trends shaping the future UK housing market
Changing demographics and evolution in technology are having a significant impact on the future of UK housing. Many are hoping that the nation’s housing crisis will be alleviated thanks to technological innovation. But five trends are on the rise and can’t be ignored. Combined, these five trends...
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Commercial Management
Posted by Paul Heming
When a Health and Safety Inspector Calls
The Health and Safety Executive (HSE) have been tasked with keeping people safe and healthy while at work since 1975. They are the body responsible for the encouragement, regulation and enforcement of workplace health, safety and welfare, and for research into occupational risks in Great Britain.
T...
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Contracts & Disputes
Posted by Paul Heming
Design and Build – ‘He who decides, designs!’
CREDIT: Jason Farnell, Commercial Risk Management
In an un-amended JCT design and build contract, the Contractor’s obligation in respect of design is to ‘complete the design’, meaning that the Client will have prepared initial designs for the project which need to be finalised by the Contract...
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Commercial Management
Posted by Paul Heming
UK Property Shortage – Practical Solutions
The UK’s property shortage: what practical solutions are being taken to tackle it?
“The housing market in this country is broken, and the cause is very simple: for too long, we haven’t built enough homes.”
With this powerful statement starts Fixing our broken housing market, the Housing Wh...
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Contracts & Disputes
Posted by Paul Heming
Design and Build – You’re the specialist!
CREDIT: Jason Farnell, Commercial Risk Management
In an un-amended JCT design and build sub-contract, the specialist Contractor’s obligation in respect of design is to ‘complete the design’ for the sub-contract works, including the selection of the specification of materials if not described ...
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Procurement
Posted by Paul Heming
Choosing The Best Cladding For Your Residential Build Project
If you’re managing a residential build project and you’re looking for exterior cladding contractors, there are many factors to consider. Not only do main construction contractors need to assess the reputation and experience of the cladding specialists, but they also need to consider what type of...
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Procurement
Posted by Paul Heming
Working With Piling Contractors For Your Project
If you require piling contractors for your next project, there is a lot that will need to be taken into consideration. Not only do you need to find the best contractors for the job, but you also must work together to determine the best approach. With that in mind, read on to discover how to successf...
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Contracts & Disputes
Posted by Paul Heming
Demolition Health And Safety Requirements
When working with demolition contractors, health and safety always takes paramount importance. Of course, this is the case when it comes to all types of construction, but there are specific requirements for demolition. The law states that structural alteration, dismantling, and demolition must be ca...
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Procurement
Posted by Paul Heming
Building Contractors London – Components Of A Good Procurement Strategy
Building contractors London wide need to have an expert procurement strategy in place if they are to run every project efficiently and keep their costs down. The process of developing a procurement strategy can be broken into three steps: gathering and analysing project data, determining the preferr...
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Contracts & Disputes
Posted by Paul Heming
Deeds of Variation (DoV)
CREDIT: Jason Farnell, Commercial Risk Management
Those who can do, and those who can’t … compromise?
Perhaps it is a feature of the London developer-led construction & property market, but it does seem to me to be prevalent - I am of course referring to the practice of entering into Deeds...
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Commercial Management
Posted by Paul Heming
The construction industry of the future
Over the last decade, the world has seen a surge in new technologies that has transformed many industries. Company owners and employers of all labour sectors were encouraged to adapt their knowledge to these fast-moving changes that are deeply impacting our lives.
Even though innovation has been sl...
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Commercial Management
Posted by Paul Heming
Managing Work at Height Effectively
The Work at Height Regulations place duties on employers to ensure that work at height is properly planned, appropriately supervised and carried out in a manner that is, so far as is reasonably practicable, safe.
To achieve this, it will involve ensuring that those involved in work at height are co...
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Procurement
Posted by Paul Heming
Construction E-procurement!
Paul Heming, founder of procurement platform C-Link discusses the benefits of E-procurement.
The term 'E-procurement' refers to tendering processes carried out online and through information and networking systems, and may include; E-tendering, E-auctioning, E-invoicing, E-payment and so on.
The...
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Commercial Management
Posted by Paul Heming
Margin delivery strategy – Project Control
CREDIT: Jason Farnell, Commercial Risk Management
With ‘best in class’ margins for general contractors being measured in single digit percentages, the need to secure the tendered margin is paramount for continued trading let alone growth. And let’s be careful here… margin is not profit ...
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Contracts & Disputes
Posted by Paul Heming
Redefining jurisdiction – don’t procrastinate
CREDIT: Jason Farnell, Commercial Risk Management
The recent High Court appeal judgement handed down by the Hon. Mr Justice Coulson in Mailbox (Birmingham) Ltd and Galliford Try Building Limited ([2017] EWHC1405) serves as a reminder about the structure and purpose of certain contract clauses; a wa...
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Commercial Management
Posted by Paul Heming
Fork Lift Refresher Training
Fork Lift operators, even those who are trained and experienced, need to be routinely monitored in the workplace and, where necessary, retested or refresher trained to make sure they continue to operate lift trucks safely.
The Fork Lift Truck Association (FLTA) believes that regular refresher tra...
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Contracts & Disputes
Posted by Paul Heming
Principal Designer Roles with respect to Temporary Works.
The Construction Design and Management Regulations (CDM) are the primary regulations for managing the health, safety and welfare of construction projects.
CDM applies to all building and construction work and includes new build, demolition, refurbishment, extensions, conversions, repair, decorati...
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Contracts & Disputes
Posted by Paul Heming
Extensions of Time – Nobody told me!
At the beginning of a contract, when relationships are being formed and the excitement of a brand new project is enthusiastically being embraced by everyone involved, human nature will usually preclude any action that might otherwise disturb the bonhomie. This might be understandable, but it is ce...
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Commercial Management
Posted by Paul Heming
Fire Safety Training
All employees should undergo some form of basic Fire Safety training when they join a company, complemented by refresher courses on a regular basis. By doing this, staff will be prepared in the event of a fire, ensuring their own safety and the safety of other people on the premises.
It is vitally ...
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Commercial Management
Posted by Paul Heming
Planning and Programming!
“I didn’t realise the time…..”
A frequent response from my teenage sons when we are late setting off for rugby training…. Nothing that a second grilling for lateness from the Head Coach can’t deal with!
Sadly performing to time is perhaps the single biggest universal failing in the con...
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Procurement
Posted by Paul Heming
C-Link Partner Harris Calnan Scoops RIBA Award!
A sublime project, constructed by builder Harris Calnan for photographer Juergen Teller, has recently been crowned RIBA London’s Building of the Year.
The brief was to utilise over 500m² of space to create a bright, flexible and welcoming set of areas; with a natural flow and sociability in add...
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Commercial Management
Posted by Paul Heming
Cash is still king!
Cash is still king – applying, agreeing and collecting.
Whatever the size and profitability of a business, getting paid is essential and everyone in that business should treat cash collection as the single most important priority.
The reasons why businesses do not collect in the cash that is du...
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Commercial Management
Posted by Paul Heming
Training and Development
Training and Development of Your Employees
Employers have a general duty to provide information, instruction and training to all their employees (see Section 2(2)(c) of the Health and Safety at Work etc Act 1974). This requirement is subject to the ‘so far as is reasonably practicable’ provis...
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Commercial Management
Posted by Paul Heming
£70m Rochdale Riverside Redevelopment
An exciting new scheme is just around the corner in Rochdale. The development known as Rochdale Riverside is a joint venture between Genr8 Developments and Kajima who are working closely in partnership with Rochdale Borough Council.
The exciting redevelopment had its planning application approved o...
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Commercial Management
Posted by Paul Heming
Compliance when working with Asbestos
Recent prosecutions by the HSE have shown that there are still companies who are not following appropriate procedures to ensure that asbestos is located and managed, or remediated, correctly during building refurbishments.
In December 2014 two Northamptonshire firms pleaded guilty to a total of fou...
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Procurement
Posted by Paul Heming
Best Procurement Practices!
The effectiveness of a contractual relationship will usually be dictated by how well the initial procurement process has been done and whether the contract fully reflects the intentions of the contracting parties.
Relationships and behaviour are strong influences for achieving successful outcomes....
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Contracts & Disputes
Posted by Paul Heming
Retention… your money!
It is quite extraordinary to think that despite the apparently universal disdain for it, the antiquated and out-moded practice of deduction of retention is still prevalent and endorsed by industry standard forms of contract. In other words part of the value of the output of almost every company in...
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Procurement
Posted by Paul Heming
HS2: Full Speed Ahead
High Speed 2 (HS2), Britain’s single biggest infrastructure project of this millennium, cleared its final hurdle last week construction works will now begin in Spring.
The project received Royal Assent on 23 February and this Act of Parliament means the nine-year programme of works will start o...
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Contracts & Disputes
Posted by Paul Heming
Changes to JCT Design and Build
JCT Design and Build Contract 2016 – What is new and how does it affect you?
Plus ca change, plus ca la meme chose! What has changed, nothing much! The apportionment of risk between the Employer and the Contractor remains unchanged in the unamended, standard document and as always the imposi...
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Commercial Management
Posted by Paul Heming
Environmental Management Systems
Environmental issues have come to the forefront in recent years with greater awareness amongst legislators, insurers, financiers, shareholders, customers, employees and neighbours. Concern for the environment has forced the international community to look at ways of reducing the impact on the enviro...
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Procurement
Posted by Paul Heming
£400m City Skyscraper
Yet another skyscraper has this week been approved for development in the City of London with Brookfield Developments and Make joining forces to deliver '1 Leadenhall Street', a 36-storey tower adjacent to Richie Rogers, Cheesegrater.
Comprising 538,000 sq ft of high specification office space, ...
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Procurement
Posted by Paul Heming
Infinity Project Liverpool
Plans for a £250m project to extend Liverpool’s business district further north have been submitted for approval. Dubbed the ‘triple towers’ project, the scheme - by developer Elliot Group - includes three towers ranging in height from 27 to 39 storeys. The development will formally be referr...
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Contracts & Disputes
Posted by Paul Heming
Manual Handling Update
The HSE has revised guidance and produced a new toolkit to help organisations manage and mitigate against the risks associated with manual handling activities.
Manual handling injuries are part of a wider group of musculoskeletal disorders (MSD’s) which covers injury, damage or disorder of the ...
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Contracts & Disputes
Posted by Paul Heming
Record Keeping – Who needs to? You do!
In the competitive construction and property market only the best managed and administered companies will perform at the top end of the range of achievable margins: record keeping is a huge part of this.
An industry-wide shortcoming is the maintenance of adequate records, despite the widespread a...
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Procurement
Posted by Paul Heming
Quantity Surveyors expecting difficult 2017
2016 closed with positive news for Construction in the UK as we enjoyed our largest growth in new orders according to an industry survey by the Chartered Institute of Procurement and Supply (CIPS).
The survey concluded that improving order intake and a rebound in business conditions generally had...
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Contracts & Disputes
Posted by Paul Heming
Payment terms – A Call to Action
Good cash flow management is critical to the success of companies in every industry. In construction, where payment is typically received long after costs are incurred however, it is vital.
Poor payment practices by larger construction firms can cause real damage to those further down the supply ...
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Commercial Management
Posted by Paul Heming
HSE New Strategy – Helping Britain Work Well
Great Britain’s health and safety record is the envy of much of the world and 4see believe we should all be proud of this. Central to this effort is the focus we all place on protecting people by managing risk in a proportionate and effective way, supporting innovation and increasing productivity....
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Procurement
Posted by Paul Heming
Procurement problems ahead for Contractors
UK construction companies are reporting difficulties in procurement as a result of the steepest rise in prices during the last decade.
In what comes as the latest sign that the pound’s sharp fall since the referendum in June is raising import costs for UK businesses, the Chartered Institute of ...
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Procurement
Posted by Paul Heming
Google’s Groundscaper
Google has confirmed plans to build a massive new UK headquarters in London which is seen by political commentators as a huge vote of confidence in post-Brexit Britain.
Google already has another two buildings under development at King’s Cross but this new 650,000 square foot complex will ma...
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Procurement
Posted by Paul Heming
London’s second tallest skyscraper
The tower known as ‘1 Undershaft’ will add to the City of London’s swelling sky-line and become the Square Mile’s tallest skyscraper if approved. Rising 73 storeys, the development is proposed to include London’s highest viewing gallery and restaurant as well as educational space, for whic...
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Procurement
Posted by Paul Heming
Twickenham Redevelopment
In late 2015, the Rugby Football Union (RFU) drew up redevelopment plans to invest in excess of £50 million towards the revamp of the East Stand at Twickenham. The plans are part of a genuine attempt to enhance the corporate hospitality offering at Twickenham with Premier League grounds such as A...
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Procurement
Posted by Paul Heming
Regeneration in Liverpool
An innovative construction scheme is set to breathe new life into an area of Liverpool long overdue for regeneration that will help to reinvigorate the region and potentially boost its economic standing within the city.
Sigma, which is a private rented sector Construction specialist, has secured ...
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Procurement
Posted by Paul Heming
Bidding on Civil Engineering project in Worcestershire begins!
The bidding and Procurement process has begun for the final phase of a Civil Engineering Project on the A4440 Worcester Southern Link Road and Specialist Contractors with relevant expertise are being encouraged to tender for the project, which is valued at £70 million.
Worcestershire City Counci...
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Procurement
Posted by Paul Heming
£60million project kicks off in Coventry
C-Link is pleased to announce that work on a £60 million construction project that intends to develop student accommodation and shopping facilities in Bishop Gate in Coventry has begun. The work will be completed on the site of the former Royal Mail building, with mechanical diggers having recentl...
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Procurement
Posted by Paul Heming
Construction at the University of Hull!
University Partnerships Programme (UPP), a PFI scheme between the various Universities and Jarvis plc to build and maintain student accommodation, has announced that it is set to deliver a new construction scheme for the University of Hull that is valued at £130 million.
The organisation i...
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Commercial Management
Posted by Paul Heming
House Building Contractors…
...Confront “Flawed” Completion Stats
The recent housing completion figures released by the government have stirred up controversy amongst house building contractors, many of whom have taken umbrage as they believe the figures to be a “flawed” representation of what the sector is actually...
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Procurement
Posted by Paul Heming
Midlands Construction Amongst The Most Stable in the UK
Despite recent reports that construction in the Midlands, specifically the East Midlands, has been struggling in recent months, recent research has demonstrated that Specialist Contractors in the area are actually at the least risk of insolvency in the UK. An insolvency trade body named R3 surveyed ...
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Procurement
Posted by Paul Heming
Construction Industry Shows Signs of Recovery
There was a lot made about the potential contraction of the Construction industry in recent months, with a number of surveys and statistics showing that the industry has been struggling somewhat in the wake of the EU referendum. However, in line with the latest Economic figures from the Government, ...
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Commercial Management
Posted by Paul Heming
Scottish Construction Calls for Tech Revolution
Stephen Good, who is the Chief Executive of the Construction Scotland Innovation Centre (CSIC), which is a support group that encourages those in Construction to collaborate with academics with the aim of creating new technology that will benefit the industry as a whole, has stated that Scotland req...
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Procurement
Posted by Paul Heming
East Midlands Skills Shortage Causing Issues
As an industry it is becoming more and more evident to all in Construction that we are struggling to attract talented young professionals. There are numerous reports that go into detail on how the industry needs to step up its game in terms of attracting A-Level students and many claim that Construc...
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Procurement
Posted by Paul Heming
New Tech – Bendable Concrete Could Become a Reality
Construction has always thrived on the introduction of new technologies that Specialist Contractors can use to provide innovative solutions. We are delighted to read about a brand new form of concrete that is currently being developed that has the capacity to bend. Scientists from Nanyang Technologi...
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Procurement
Posted by Paul Heming
Construction Workforce Increasing
There has been a lot made of the skills gap in Construction in recent months, particularly in regards to how the industry needs to do more to attract A-Level students and other youngsters towards the industry by highlighting how their talents can be applied to various aspects of Construction.
Whi...
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Commercial Management
Posted by Paul Heming
Crossrail 2 Briefing Day To Be Held in London
Transport for London has announced that it is planning a special briefing day in mid-September that will allow the Construction industry to find out more details regarding Crossrail 2 and potential contracts related to the development. Crossrail 2 will serve both London and the wider South East area...
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Commercial Management
Posted by Paul Heming
Gilbert-Ash Sees Turnover Increase
Will all of the industry speculation that still surrounds the prospect of a Brexit it is refreshing to see that there are a number of companies that seem to be running counter to the assertions from some Professionals that Construction is set to enter into recession.Belfast-based Gilbert-Ash is one ...
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Commercial Management
Posted by Paul Heming
Slow Investment Leads to Faltering Construction Growth
Despite a number of positive signs that Construction is set to rebound from the issues caused by Brexit, in the short-term it appears that hesitance on the part of investors is leading to faltering growth in the sector. The Royal Institution of Chartered Surveyors (RICS) conducted a survey for the t...
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Commercial Management
Posted by Paul Heming
Saint-Gobain Outlines Positive Brexit Outlook
One of the biggest issues that surrounds the success of the Leave campaign in the EU referendum, at least when it comes to Construction, is the effect that the decision may have on domestic companies and their relationships with those in Europe. Some believe that Britain’s exit from the EU could r...
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Commercial Management
Posted by Paul Heming
Post-Brexit Construction Boom Predicted
By now we have all heard about the rather notable slump that Construction has undergone as a result of the uncertainty surrounding the Brexit referendum, with statistics showing that the industry experienced a downturn during June 2016. Most alarmingly, the period running up to the referendum saw th...
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Commercial Management
Posted by Paul Heming
PLanBEE Furthers Its Ambitions
A skills and careers program in the North East has joined forces with Gateshead College with the aim of developing its program further and offering more opportunities for youngsters who are looking to enter the Construction sector.
PlanBEE, which was launched by Ryder Architecture in 2013, with t...
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Procurement
Posted by Paul Heming
University Construction Increases
Recently reported figures suggest British universities are investing in construction more than ever before. With universities aiming to make use of new technologies and interesting architecture to lure top students to their institutions, investment is up over 43% during the last few months. The High...
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Commercial Management
Posted by Paul Heming
Gatwick Bosses Confirm £200 Million in Construction Investment for The Airport
Since Gatwick Airport came under new ownership in 2009, there has been an increasing commitment to improving its infrastructure and investing in construction. Bosses at the airport are apparently committed to investing £2.5 billion into various projects up until 2021, with £1.2 billion having alre...
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Commercial Management
Posted by Paul Heming
Morrisoe Doubles Profit
Morrisoe, which is one of the leading Construction groups in the UK, specialising in groundworks and reinforced concrete frame construction, has delivered more positive news to the industry with the announcement that it has almost doubled profits based on the improving performance of the commercial ...
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Procurement
Posted by Paul Heming
London Enjoys High Levels of Construction Orders
Construction appears to be on the upswing in London and other areas of the UK, if recent figures released by the Office of National Statistics are accurate. London continues to dominate the sector, having seen an increase in new orders to the tune of 30% year on year, which is a remarkable growth co...
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Procurement
Posted by Paul Heming
Construction Industry Questions
Latest Office of National Statistics Figures
The Office of National Statistics (ONS) recently released figures suggesting the Construction industry has seen a downturn during the first quarter of 2016, with their research apparently demonstrating a 1.1% drop in the amount of work completed, with th...
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Commercial Management
Posted by Paul Heming
Housebuilding Sector Possibly Affected by EU Uncertainty
We have already spoken at length about how the possibility of a Brexit appears to be affecting the Construction industry, with uncertainty relating to the UK’s position in the European Union (EU) possibly leading to the growth of the industry being tempered during the first and second quarters of ...
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Procurement
Posted by Paul Heming
Construction Industry Growth Tempered By EU Uncertainty
We spoke last week about how a Brexit could affect the Construction industry, with one of the primary issues raised being the level of uncertainty that surrounds Britain’s European Union (EU) status and how it is causing issues for the industry in the present day, as well as potentially leading to...
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Procurement
Posted by Paul Heming
C-Link is the Key to reducing Procurement Periods in 2016
In our previous blogs we have touched on the major issues surrounding construction procurement activities including, but not limited to, tight programmes and the fact that many Professionals lose precious time scouring the market for the most appropriate Specialists for their project. With order boo...
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Procurement
Posted by Paul Heming
How a Brexit may Affect the Construction Industry?
The hot-button political issue at the moment is Britain’s status as a member of the European Union. The possibility of a Brexit is very real and it is important that all of us, including construction professionals, consider what might happen if Britain does leave the EU.
Current industry opinio...
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Procurement
Posted by Paul Heming
Short Programmes and the effect on Professionals and Specialists
Achieving efficiency in the procurement process has long been a problem in the construction industry with many Professionals finding it difficult to source the right Specialist for their project within the timeframe allocated. As we know all too well, a lack of time is inherent to most construction ...
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Procurement
Posted by Paul Heming
Are you ready for the future?
Construction 2025 Report
The UK Government published its Construction 2025 Report in order to outline the steps that will be taken to deliver continued growth in the industry, such as reforming the existing planning system and funding for key infrastructure projects.
The Government worked al...
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Contract & Disputes
Procurement
Commercial Management
