December 2015 Newsletter


“December has arrived and it has brought some festive cheer as there is continued positive news throughout all sectors of the construction industry. We hope you can enjoy a relaxing break as it looks to be a busy New Year period & beyond.”
Brighton Hospital Rebuild Finally Gets Approval

A £480m hospital rebuild project in Brighton has finally been given approval by the Treasury nearly 18 months after it was given the go-ahead by Chancellor George Osborne.

The treasury has set aside £484.7m for the Brighton and Sussex University Hospitals Trust, who will refurbish and rebuild its hospital buildings, which are some of the oldest in the NHS.

In the trust’s board papers for September, chief executive Matthew Kershaw stated, if final approval was not given by mid-October then capital costs could increase.

Approval for the full business case was given shortly after the trust estimated delays would start to ramp up the cost of the ‘3Ts’ redevelopment project.

It was originally hoping for final approval for the building work in March of this year, however, work will now begin in January 2016 for the first of the two new buildings.

The project will cover just under 25% of the hospital site. All clinical services will be on site throughout the redevelopment and some will be moved to temporary accommodation.

All emergency and cranial neurosurgery work has already moved from the Princess Royal Hospital to Royal Sussex County Hospital in June in preparation for the building work.

Mr Kershaw said, “This redevelopment is a once-in-a-generation opportunity to build on the excellent care we currently provide to our patients and truly improve acute healthcare for patients in Brighton and Hove and across the region.

“Today’s announcement marks a genuine turning point: the 3Ts redevelopment is no longer an ambitious plan; it is the future of this hospital.

“A great deal of work has gone into bringing us to this point and there is still much more to be done.

“The result though, having a better hospital for all our patients and staff in the years to come, is worth all this effort and more.”

The hospital rebuild is due to be completed in 2024.



Stephenson Street Development, West Ham Awarded To Berkeley Homes

The mayor of London has selected Berkeley Homes to deliver a 3,500-home development in West Ham, east London.

The Stephenson Street scheme will involve the transformation of a disused Parcelforce depot, spanning 10 ha.

The homes include shared ownership and purpose-built affordable private rented homes. The project will also include 30,000 sq ft of retail space and a new school.

London Mayor, Boris Johnson said, “This huge chunk of disused land will be put to the best possible use, creating a whole new neighbourhood including 3,500 much-needed new homes, a new school and a park.

“This ambitious development will help to further the continuing transformation of east London as part of our Olympic legacy.”

The development of the Stephenson Street site is part of the mayor’s pledge to release all City Hall-owned land for development by the end of his term in 2016.



Mace Lands New Spurs Football Stadium Construction Contract

Mace has been appointed as the preferred construction partner for Tottenham Hotspur’s new £400m stadium, beating Brookfield Multiplex and Sir Robert McAlpine,

Mace will forward detailed preconstruction plans and programmes for the scheme, as well as working closely with the club to procure specialist subcontract tenders for the new stadium works.

Mark Reynolds, Mace chief executive said, “We are privileged and thrilled to join the team to take the new stadium to its next stage of development.

“We look forward to working with the club and its consultants to make sure the project is a success.

“It is of critical importance, as it is the flagship development that will act as a catalyst for the regeneration of this area.”

Daniel Levy, Tottenham chairman said, “This is another step towards the delivery of one of the best stadiums in the world. We are delighted to have Mace on board.

“They bring a wealth of experience and I know they share our commitment to ensuring that the development will be first class in every aspect.”


London Mayor approves replacement Pinnacle tower

London Mayor Boris Johnson has waved through plans to build a 62-storey building on the site of the abandoned Pinnacle project at 22 Bishopsgate in the City of London.

His decision clears the way for Brookfield Multiplex to start the £450m construction job at the end of March.

Rising to 295m it will be the tallest building in the Square Mile filling an obvious gap at the center of the City’s cluster of tall buildings.

Its time as tallest building in the city may be limited as plans are being drawn up for a 73-storey skyscraper at nearby 1 Undershaft that would rise to 309.6m putting it level with the Shard’s tallest steelwork point in London Bridge.

The City of London gave planning permission for 22 Bishopsgate last month and after a detailed assessment, City Hall has given its approval for the development, which is due for completion in 2019.

During the planning process, the Mayor also successfully sought to secure free public access to a viewing gallery.

The mayor said: “After lying abandoned for four years, 22 Bishopsgate will now get off the ground, providing much needed office space for thousands of city workers and a positive addition to the world-class architecture of the capital’s skyline.

“There will be more than 800,000 new jobs created in London over the next 20 years and there is no doubt that tall buildings that are sensitively managed, well designed and in the right place will continue to create the new office space the city needs to retain its place as one of the business capitals of the world.”

Developer, Sir Stuart Lipton of Lipton Rogers, said: “The Mayor has recognized 22 Bishopsgate as a major contribution to the on-going vitality of the City of London with a distinguished and interesting building that includes a number of new innovations designed to put the health and wellness of people first and which aims to be the first building in London to adopt the new Delos WELL building standard.”

Anne Kavanagh, of real estate partners, Global Head of Asset Management at AXA Investment Managers – Real Assets, said: “The Mayor of London’s endorsement and approval of our plans represent another significant step forward for 22 Bishopsgate and keeps us on track to commence construction of this new London landmark in the first quarter of next year.”


Carillion And Partners Set To Take Over Network Rail Electrification Contract

Carillion and partners VolkerRail have been selected to take over the £75m North-west electrification contract, which was previously awarded to Balfour Beatty.

The news comes four months after it was announced that Balfour Beatty had agreed by mutual consent to leave the partnership with Network Rail after completing just two of the scheme’s seven phases.

Carillion will deliver four of the remaining five phases of work through its electrification arm Carillion Powerlines, with VolkerRail taking on the fifth phase.

The remaining work includes phase three from Preston to Blackpool, phase five from Manchester to Stalybridge, phase six from Windemere to Oxenholme, and phase seven from Lostock to Wigan.

The contract would also see one of the firms take on phase four from Manchester to Preston, which had been started by Balfour Beatty but not completed.

Carillion-Powerlines is a joint venture between Carillion and Austrian-based company SPL Powerlines.


Two New Stations For Watford As Part Of £280m Metropolitan Line Extension

Plans to extend the Metropolitan line north of London and build two new stations by 2020 has been outlined London Underground.

London Underground confirmed that a funding package for the extension had now been agreed between the Department for Transport, Hertfordshire County Council and Transport for London.

The company announced today that plans were in place to start construction on the £280m extension of the line through to Watford Junction next year.

The two new planned stations will be at Cassiobridge and Watford Vicarage Road, near Watford FC’s ground.

London Underground MD Nick Brown said, “By 2020 we will have built a 400 m viaduct, two completely new stations and numerous new and reconstructed bridges along the route, transforming transport links in Watford.”

He added, “With the funding package complete we’re now turning all our attention to appointing contractors, finalising designs and beginning construction in 2016.”



Braeburn Estates’ Shell Centre Sub And Superstructure Contract For Laing O’Rourke

Contractor Laing O’Rourke and its specialist business, Expanded Group, has bagged a major project on Braeburn Estates’ £1.3bn Shell Centre project on London’s South Bank.

The High Court dismissed a legal challenge to the project in February 2015 and finally dismissed an appeal in June.

A spokeswoman for Braeburn Estates said at the time of the dismissal, “We are pleased that the appeal against our proposed redevelopment of the Shell Centre has been dismissed.

“It had already been through an exhaustive planning process and we now look forward to commencing works on site in the near future and, in so doing, to bringing many benefits and much regeneration to this important part of London.”

The redevelopment of the 27-storey Shell Centre tower will see the construction of eight new buildings, varying from five to 37 storeys, and include 580,000 sq ft of office and retail space, as well as 820,000 sq ft of residential space.



Construction Growth Looks Set To Be Driven By Offices And Housing

New data from construction intelligence group Glenigan, suggests a 6% increase in total project starts comprising mainly of offices and housing in 2016.

Private housing is forecast to see starts increase by 11 per cent.

Other areas forecast to see robust growth in 2016 include community & amenity 10%, and health at 6%, with the latter recovering from a low base, having contracted by 21 per cent in 2015.

Retail and civil engineering is likely to account for modest growth at 5% with hotel & leisure at 3%.

The industrial sector is nevertheless declining from a high base, with starts having grown 49 per cent in 2014, and a further 10 per cent rise expected in 2015.

However, next year’s predicted fall in social housing represents the third consecutive decline in the sector, following a 1% fall in starts in both 2014 and 2015.

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