Cool and calculating
4.5
Tender price inflation in 2007 as predicted by Mace’s cost consultancy arm Sense. It forecasts that tender prices will rise steadily until 2010: 4.75% in 2008, 5.5% in 2009 and 5.75% in 2010.
Mace’s contractors were more bullish in their combined predictions, due to the strength of their order books and confidence in the economy and the sector. Their combined price predictions produced inflation increases of 5.21% in 2007, 4.78% in 2008, 6.36% in 2009 and 7.42% in 2010. Some contractors said clients were asking for quotes much earlier than usual to mitigate price hikes.
The 10 trades forecasting the highest tender price inflation are atrium walls, brickwork and blockwork, demolition, drylining, ductwork, flooring, internal stone finishes, joiners, raised floors, and roof finishes.
1000
The number of complaints received by Ascot about its new £185m racecourse building.
The main problems were down to the Royal Enclosure lawn sloping too gently to allow viewing of part of the racetrack.
Last month Ascot confirmed a four-and-a-half month project to rectify the situation, which will cost around £10m and is due to be complete at the end of April. Works will comprise increasing the gradient of lawns to improve viewing, a temporary 2000-seat stand, an extra club, restaurant and bar and a permanent raised bandstand next to the Parade Ring.
Stanhope director Peter Rogers was called in to help find a solution. HOK Sport is the architect and the structural engineer is Buro Happold.
Ascot had brought in Arup and High-Point Rendel to assist the original team, although High-Point Rendel later withdrew.
90m
The writedown, in pounds, made by Amec as it announced that its construction business was up for sale last month. Amec’s new chief executive, Samir Brikho, said the firm would concentrate on the energy sector, turning its back on construction after 100 years.
Rivals suggested that the only possible buyers would have to come from outside the UK.
Last year Amec’s construction businesses turned over £1.3bn and made a profit of £14m.
• Also in December Skanska acquired utilities company McNicholas for £30m. David Fison, Skanska’s chief executive, said the move came as a result of the company’s plans to extend its utilities work. The new business, Skanska McNicolas, will have a combined turnover of more than £300m. At the moment McNicholas turns over £180m and Skanska’s utlilites operation turns over £100m.
3.3bn
The cost, in pounds, of the Olympics, according to culture secretary Tessa Jowell, who announced at the end of December that this had risen from the original estimate of £2.4bn. Jowell’s Department for Culture, Media and Sport denied claims from Jack Lemley, who had resigned as chairman of the Olympic Delivery Authority in May, that his warnings of spriralling budgets had been ignored by Jowell and London mayor Ken Livingstone.
Meanwhile, architects Richard Rogers and Jack Pringle warned against design and build as a procurement route, claiming that contractor-led design would not produce great stadia.
And a new militant workers’ group, the UK Rank & File Building Workers Committee, has been threatening to disrupt work on the Olympics. They are calling for £20 an hour and a 35-hour week.
4.6 trillion
Estimated global construction output in 2006 in dollars, according to a report by US construction academic Harvey Bernstein, published by McGraw Hill Construction. This is up from £4.2 trillion in 2005, and equates to around 10% of the world’s GDP.
In Key Trends in the Construction Industry – 2006, Bernstein warns that small firms should look for global opportunities, or risk going out of business. He highlights the effects of globalisation, including:
- foreign firms underbidding and even buying work to get a foothold in another country;
- using well-trained people in other countries at a fraction of the cost;
- electronic communication increasing global competition.
Source
Construction Manager
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