Laing O’ Rourke became the first winner of the North West Construction Hub (NWCH) framework tendering process securing the £90m Manchester Central Library and Town Hall redevelopment.

The project which has been designed by architect Vincent Harris includes the restoration of Manchester’s Grade II- listed Central Library and Town Hall as well as redevelopment of St Peters Square. The project is due to be delivered by 2013.

Andrew Jackson, leader of Laing O’Rourke’s Construction North division, said: “Securing this exciting and unique project will enable Laing O’Rourke to build on our solid reputation for delivering landmark projects. It is a complex and challenging project, and one of huge value architecturally, culturally and civically. We look forward to partnering once again with Manchester council.”

This is the first of a number of tenders which will be done through the North West Construction Hub which divides work into three separate frameworks dependent upon project value. The High Value Framework tenders for jobs over £10m and is competed between a total of five organisations, the others being Bovis Lend Lease, Kier, Morgan Sindall and Wates.

The Framework has been developed as a method to ensure that local council can work in partnership with public sector construction in order to ensure that the delivery is efficient and on time. It also shares knowledge and experience as well as creating an emphasis on improved quality and sustainability.

(Source: Building.co.uk)

Thanks to our colleagues over at BuilderBusiness for this article. 

As the economy starts to show tentative signs of recovery, many involved in the industry will be wondering how they are going to get an edge over their competitors throughout 2010.

Keeping a focus on the job in hand is quite rightly the number one priority however it doesn’t mean the other elements of running a successful business can be let to slip. So builders wanting to make the most of 2010 will be interested to hear of a new club that will provide them direct and easy access to a whole host of services, information and advice.

Called Builderbusiness Club, those who sign up online at builderbusiness.co.uk will automatically become part of the UK’s biggest buying group with members also getting free access to a range of building support services.

The brainchild of builder Adrian Wild, who, with over 25 years experience of running a design and build company is all too familiar with the frustrations and pitfalls of the construction industry and knows how important it is to have the right suppliers, support, tools and finance in place at the right price.

Being first to enquire on a new planning application, finding the best van insurance, getting advice on how to improve your image, getting help on securing finance or making sure your VAT payments are up to scratch are all areas this new club will benefit builders.

Club Helps Builders Keep On Top Of New VAT Rules

An example of how the club is already helping builders is with the new rules on VAT that are being introduced by HM Revenue & Custom (HMRC) from 1 April 2010.

The new legislation means that from the new financial year, some businesses will have to file their VAT returns online and pay any VAT due electronically.

The new rules will apply firstly to businesses that are VAT registered and have a turnover of more than £100,000 and secondly to all businesses that are newly registering for VAT, whatever their turnover.

It means any builders that fall into these categories will have to make sure they fully understand how to comply with the new legislation.

Fortunately Builderbusiness Club members can get hold of what has been labelled as the best accounting software package on the market for builders with added benefits exclusive to the club.

Called Construction Industry Accounts (CIA) it’s an accounting software package designed to handle the new 2007 CIS Scheme, Invoices & Job Costing, Retentions, Applications (Stage Payments) and Certifications

It also helps builders file their VAT returns quickly and makes electronic payments by using the VAT Online service.

Developed specifically for the building industry this fully integrated software package means that only one entry is needed to update all relevant areas. So when it comes to submitting VAT returns or paying VAT, because everything is available at the click of a button it will make the process infinitely easier.

Adrian added: “Construction Industry Accounts is an absolute godsend for those who are looking to keep a close grip on their accounts, want to know how much they are going to make on a job and want to keep up-to-date on their VAT.

“Anyone wanting to make their lives easier in April need to start planning now how they are going to ensure they don’t give HMRC a reason to come knocking. It also links directly to HBXL’s EstimatorXpress estimating software so once an estimate has been produced the revenue and profit generated is automatically updated onto CIA.

“To be able to offer this through Builderbusiness Club is just one example of how it is going to help members mange their business more effectively, generate more profits and ultimately come out of the recession stronger.

“Our mission is to provide a dependable and trusted resource for both builders’ projects and business. Working with the FMB and many other trusted names, we think Builderbusiness Club is great news the building industry.”

Builderbusiness Club member offer – when you buy CIA accounting software £1950 ex VAT, members will also get a FREE copy for their accountant plus four hours online training (worth £220 ex VAT)!

In addition, as well as a free copy and training members will also get a free PAYE payment model worth £699 and is available until February 2010.

CIA is available through HBXL which acts as a re-seller of the software.

To sign up to Builderbusiness Club visit www.builderbusiness.co.uk

To find out more about CIA visit www.hbxl.co.uk/accounts

Interbuild 2009 is only a few short weeks away!  The construction exhibition is a great chance for us to meet people from all walks of the construction industry; including home builders, builders and contractors, architects, students and self builders, and talk to them about our ideas of reuse and passing on surplus building supplies. 
The BuilderScrap stand will be located in Hall 5, stand nmber E2.  Make sure to come and say hello!  People registering during the show will get the chance to enter a fantastic competition – visit stand E2 to find out more!
Interbuild runs from October 18th – 21st in the Birmingham NEC.

Today’s BuilderScrap blog post is from a guest blogger.  Paul Martin is Health and Safety Manager for The Trustland Group, an industrial and commercial contractor based in the North West of England.  Paul writes this month about The Ladder Exchange Initiative, which all builders and contractor should be aware of.

 The HSE run an annual ladder exchange. This year the Ladder Exchange Initiative will run from 1st September until 31st December 2009.

The Ladder Exchange Initiative is simple; if you have a ladder which is bent, broken or battered you can part exchange it for a new one at any one of the HSE’s partner outlets who are offering discounts on the sales of all ladders at very competitive rates. It also provides dutyholders with an opportunity to review pre-use checks, training, supervision and other arrangements for ladder work.
Over the last two years HSE has worked collaboratively with Local Authorities, and several partner outlets, to remove over 5,500 ‘dodgy’ ladders from the workplace. As a result of these successes, Ladder Exchange will now be an annual initiative.

During 2007/2008 58 workers died and 3623 suffered a serious injury as a result of a fall from height. Ladders remain the most common agent involved and account for more than a quarter of all reported falls from height incidents.

There are a few simple checks you can make as a user.

Every time you use a ladder you should do a pre-use check beforehand to make sure that it is safe for use.

A pre use check should be carried out by the user:

• At the beginning of the working day; and
• After something has changed i.e. ladder dropped or moved from a dirty area to a clean area

The benefit of conducting daily pre-use checks is that they provide the opportunity to pick up any immediate/serious defects before they cause an accident.

Leaning Ladder checks:

• Check the stiles; do not use the ladder if they are bent or damaged – the ladder could buckle or collapse.
 
• Check the feet; do not use the ladder if they are missing or worn or damaged – the ladder could slip.

• Check the rungs; do not use the ladder if they are bent, missing or loose – the ladder could become unstable.

Step Ladder checks:

• Check the locking bars; do not use the ladder if they are bent or the fixings are worn or damaged – the ladder could collapse.

• Check the feet; do not use the ladder if they are missing or worn or damaged – the ladder could slip.
 
• Check the stepladder platform; do not use the ladder if it is split or buckled – the ladder could become unstable or collapse.

• Check the steps or treads; do not use the ladder if they are contaminated – they could be slippery.

• Check the steps; do not use the ladder if the fixings are loose – they could collapse.

• Check the stiles; do not use the ladder if they are bent or damaged – the ladder could buckle or collapse.

Following these simple rules may save your life. For more information on the HSE’s shattered lives campaign visit their website.

Here at BuilderScrap we understand the increased pressures being placed on the construction industry to up their ‘enviornmental game’.  This article we have come across in Contract Journal discusses this in relation to London 2012.

Green technology and sustainability will be the big driver for construction in the next decade of the 21st Century.
Certainly there is a growing consensus of opinion that in the near future developers will have to parade their sustainability credentials and jump through hoops to win planning and financial backing.
And naturally contractors able to prove they can meet more stringent construction demands will win the big prizes when the recovery finally takes hold.
In a sense this is not particularly new thinking.
Perhaps a more pertinent question to ask: is how committed are we as an industry to creating a more sustainable built environment?  If it comes at a high upfront cost do clients really have an appetite among clients to pay for it?
The dilemma is partly exemplified by the 2012 Olympics. Targets to recycle 90% of all demolition arisings on the huge site looked ambitious to say the leased when first published. In fact the builders and contractors and engineers rose to the challenge and managed to deliver a gold medal winning performance of 98% reuse.
Likewise the job to wash and clean millions of cu m of heavily contaminated earth should be up there on the podium of excellence for generations to benchmark against.
An outstanding performance all round, but what of the Olympic Delivery Authority’s target to use 70 per cent recycled aggregates over primary aggregates.
This appears to be left behind in the starting blocks.
The background to this underlines some of the problems the industry faces. In fact supplier Aggregates Industries tempted the ODA into raising the target from 25 per cent, saying it could supply the sufficient quantities of recycled aggregates to deliver 70% use.
In practice this proved too ambitious for several reasons. One unforeseen complication was the delayed opening of Prescott Lock. This impacted badly on plans to ship aggregates by water.
More importantly contractors are understandably loath to use recycled aggregates because design risks magnify and ultimately the cost of concrete rises because more cement is required.
On paper reducing primary aggregate use to 30% looked an achievable target, in practice real cost implications and a performance concerns put it beyond reach.
The unfortunate outcome is that it appears the ODA and construction industry failed to hit a green target. In truth a lack of practical thought in the rush to deliver world-beating statistics created a problem that didn’t need to exist in the first place.
There is only one failure in this story and that was not getting everybody from the supply chain around the table in the first place to agree an achievable but challenging target.

BuilderScrap.com believes in making construction as sustainable as possible.  This article from the Building website looks at the government commitment to making new homes zero carbon after 2016. But, as the article discusses, a lot depends on how you define zero.

01 / redefining zero-carbon homes
You might think that it would be relatively straightforward to define a zero-carbon home, but the construction industry has spent the past 18 months tying itself in knots over the issue. The government’s recent consultation provides an insight into where the debate is going; this article provides an overview of some of the key issues.
• The current position: The government is committed to reducing UK CO2 emissions 80% by 2050. With housing representing about a quarter of those emissions and with 35% of our 2050 housing likely to be built after 2008, it is understandable that much policy emphasis has been placed on low and zero-carbon buildings.
It was back in December 2006, that the government made the first proposals that all new homes would be “zero carbon” after 2016. At the time, zero-carbon status required that over the course of a year, a development would emit no CO2 from its heating, hot water, lighting and appliances. All of the carbon reductions had to be achieved using local “off-site” technologies connected to the development by a direct physical connection (e.g. a private wire arrangement).
Analysis was undertaken to determine the costs of delivering this policy.  As might be expected, costs and benefits vary depending on the scale and location of development and the mix of housetypes. Analyses highlighted concerns regarding the deliverability of zero carbon using exclusively on-site solutions. These include:
• The impact on capital cost and project viability
• The technical feasibility of delivery
• The over-reliance on specific technologies, notably biomass and biomass combined heat and power.
In addition, recent proposals to revise the SAP assessment method by which domestic CO2 emissions are modelled (specifically, revisions of the emission factor for electrical generation on site) would reduce the amount of carbon reduction achieved through on-site generation by about 25%, further exacerbating concerns over deliverability and cost.
Consequently, the government recently consulted on alternative definitions of a zero-carbon home. These comprise minimum standards of energy efficiency, a defined level of carbon savings to be achieved on site and the reduction of residual emissions through a range of potential “allowable solutions”.

BuilderScrap allows builders and contractors to source and dispose of building materials in a more sustainable manner, and we believe that this could be of great benefit to the future of zero carbon home.

Here at the BuilderScrap office, we recently came across this interesting article on the HGTV Pro website.  This article explains how it is easier to cut costs to increase your margin than to raise prices in a sluggish market. 

With housing starts in the doldrums in some markets, home builders need to make every dollar count to remain cost-competitive while still providing top value. Builders can cut their construction costs in myriad ways, says Charles C. Shinn Jr., president of the Lee Evans Group/Shinn Consulting in Littleton, Colo., and all will pay off.

“If you can reduce construction costs by only $10 per cost code, you will significantly increase your profits,” he stresses. There typically are about 100 cost codes per house, creating $1,000 of increased profit per house. Even better, there are many ways to find that $10.
Cutting direct construction costs provides the most effective way to boost profits, he notes. Land costs and operating expenses are generally fixed, and it’s difficult to raise prices in a tight market. “You have the most control over these costs, and you need to attack them on all fronts to control and reduce them.” He points to at least 20 areas where costs can be cut:

1. Create target construction-cost budgets.
Develop a preliminary direct-construction cost budget for each cost code and design, and then estimate and specify to maintain that cost and profits. “Direct costs are the only variable in the pricing formula,” he says.
2. Improve your working drawings.
By making all drawings uniform and detailed, you avoid missing details and create consistency that ensures no change orders or lost productivity by crews.
3. Design and specify homes for your customers.
Survey customers to learn what they like (and don’t like) and what they are willing to pay for. Then tailor the homes to those preferences. “Fall out of love with your homes,” Shinn suggests, and give homebuyers what they want, not what you want to give them.
4. Analyze standard specifications.
Ensure they truly are standard and put an emphasis on the areas that customers perceive to create high value. Conduct a cost/benefit analysis to cut back where possible, and offer alternatives as options and upgrades. 5. Don’t overdo standard specifications.
“Extra amounts of standard features have diminishing value and eliminate potential areas for upgrades,” Shinn warns.
6. Change the level of specification between floors.
Create a more sumptuous look for the public first floor and cut back where possible on moldings, trim, door heights and other areas on upper levels.
7. Analyze low gross-profit plans.
Determine where the plans have excess specifications, and work to reduce those cost areas wherever possible.
8. Create a true purchase-order system to control all charges.
“Do not accept invoices, and pay only the purchase-order amounts you approved,” he says.
9. Issue complete construction-start packages prior to start.
Completeness ensures no change orders or redundancies in finishing each stage. However, this approach does require customers to make all selections before the project starts.
10. Improve estimating and purchasing.
Conduct your own in-house detailed quantity take-offs. “Don’t leave this to your trades and vendors,” Shinn warns. All agreements also should be documented, and they should be based on unit pricing instead of lump-sum bids.
11. Value-engineer your plans to ensure they are still efficient.
Consider new and alternative materials that may have been introduced and proven since the plans were drawn up.
12. Work with trades to eliminate inefficiencies.
Treat them well so they will help you maintain schedules, manage their work better and clean up and organize the site.
13. Conduct “As-Built Audits.
” These investigations allow the superintendent and estimator to ensure materials are being used correctly and the proper amounts are specified.
14. Gain control of construction-cost variances.
“These can equal or exceed profits,” Shinn warns. Using a purchase-order system will help document where variances occur. Analyze them to find why they arise.
15. Don’t get wed too closely to your trade contractors.
“Sacred cows cost a lot,” he says. Always obtain at least three competitive bids always, and be willing to release a job to a new trade contractor if he meets your criteria.
16. Question the engineers.
Evaluate the design of the structural system, trusses, floors and HVAC to ensure they continue to be the most efficient approaches.
17. Improve negotiating techniques with your vendors.
Do your homework and focus on the most important areas, Shinn says. These include payment and volume discounts, displays, sales training, collateral, delivery arrangements, backorder penalties, rebates and a host of other options.
18. Break up turnkey trades.
You can save as much as 15 to 25 percent if you buy materials and labor separately, he estimates. It creates more challenges for the superintendent, but it unbundles processes and drives out hidden costs.
19. Improve material inventory and control.
Create a system to protect delicate and fragile products, including entry doors, countertops and tubs, so damage doesn’t eat into profits. Monitor your Dumpster to ensure waste is not growing, and keep a close eye out for diverted materials. Be sure to return unused or damaged materials for credit rather than throwing it away.
20. Standardize your construction processes everywhere.
“Be consistent and reliable, efficient and effective,” he stresses. “Establish a culture of discipline.”

Controlling direct construction costs is critical, Shinn says. “In today’s housing slump, with the need to reduce sales prices to maintain volume, it is extremely important to reduce direct costs to maintain profit and become a superior profit builder.”

We thought this article was really interesting as now is a crucial time for everyone within the construction industry to manage their costs.  BuilderScrap can help cut construction costs, by lowering the amount of waste sent to landfill, as well as providing a source for low cost building materials.

BuilderScrap.com is trying to support building contractors around Merseyside and found this five step guide to helping small building contractors .The phone is ringing off the hook, you’re keeping twice as many subs and employees busy as last year, and you’re booked for the next nine months. So why aren’t you making any money? The answer may be simpler than you think. Here is the first of five common reasons contractors big and small find their companies in the red.

1) Bad Math

A surprisingly large number of re-modelers lose money because they miscalculate their selling price. They assume that their gross profit percentage is also their mark-up multiplier. It’s not. To see what I mean, imagine a job where direct costs — materials and labour — are, say, £1,200.

Let’s also assume that you need to earn a gross profit of 33%. To find the selling price, many re-modelers incorrectly multiply £1,200 by 1.33, and sell the job at £1,596. Unfortunately, that’s £195 shy of what the job ought to be sold for. Not much on this little job, but over the course of a year, it adds up. On a total sales volume of £250,000, for example, you’re cheating yourself out of more than £40,000. There are two simple solutions to this problem. You can use a “Markup Multiplier” chart (see Figure 1), or you can abandon multiplication and use division instead. Divide estimated costs by the inverse of your gross profit percentage. In the example, divide £1,200 by .67 (1 – .33) and sell the job for £1,791.

fig 1

Markup Multiplier

To earn this multiply direct costs gross profit by this number

20% 1.25

25% 1.33

30% 1.43

35% 1.54

40% 1.66

45% 1.82

For other gross profit percentages, use this formula:

1 ÷ (1 – Gross Profit) = Markup Multiplier

Example:

Gross Profit: 33%

Multiplier: 1 ÷ (1 – .33) = 1.49

Hope this helps…. hang in there and read our next helpful post