Construction magazine January/February 2016

CONSTRUCTION the official magazine of the construction industry federation

january/february 2016

New Era for Contractors

M&ECA welcome amended Public Works Contracts

January/February 2015 CONSTRUCTION 22

EDITORIAL A

This month’s cover was taken

by Bryan Brophy at Construction House, Dublin, Thursday 28th January 2016. In the image are (L-R) Michael Kennedy, Ger O’Leary, Sean Downey, Sean McElligott and Niall Bourke.

n impending General Election is the perfect opportunity to ask the respective parties about their attitude to the construction sector - how they plan to boost housing numbers, increase apprenticeships and invest more in infrastructure are just some of the questions they need to answer.

In this issue of Construction we’ve put these questions and more to all the main political parties and most have given use detailed replies (page 13). To be fair, they all acknowledge the crucial role construction plays in the economy. How that attitude will translate into policy is impossible to guess at this stage.

It would be somewhat foolhardy to second guess the electorate, but whoever forms the next Government needs to put construction at the heart

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Construction Industry Federation

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Construction House, 8 Montpellier Terrace, The Crescent, Galway.

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Construction House, Canal Road, Dublin 6.

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Construction House, 4 Eastgate Avenue, Little Island, Cork.

Tel: 021 4351410 Fax: 021 4351416 Email: cifcork@cif.ie PRESIDENT: Michael Stone Director General: Tom Parlon Chief Operations Officer: George Hennessy

of it’s economic plans.

One thing is for sure, housing will continue to dominate the headlines will into the life of the new administration. Our special report starting on page 28 looks at various issues surrounding housing, from development funding through to the Irish Strategic Investment Fund to interviews with developers and analysis of how the market is performing.

That housing completions will probably fall in 2016 is salutary news and proof the market finds its level.

No matter what the perception is, the truth of the matter is that while the gap between high development costs and strict lending rules remains, we will continue building too few houses and apartments.

Decisive action is called for.

Perhaps the momentum a new Government creates will help. C

MAIN CONTRACTING: Martin Lang, Alison Irving SPECIALIST CONTRACTING: Sean Downey, Gillian Ross INDUSTRIAL RELATIONS & EMPLOYMENT SERVICES: Jean Winters, Cheryl Treanor EASTERN REGION: Hubert Fitzpatrick, Noel O’Connor SOUTHERN REGION: Conor O’Connell WESTERN / MIDLAND REGION: Justin Molloy SAFETY & MANPOWER SERVICES: Dermot Carey LEARNING & DEVELOPMENT: Robert Butler, Laura Dennison MEMBERSHIP: Renee McManus FINANCE / ACCOUNTS: Gabriel MacGrath COMMUNICATIONS & MARKETING: Shane Dempsey, Rosalind Travers

CIRI CIRI OFFICE: Jeanette Mair CIRI CPD OFFICE: Robert Butler affinity schemes Safe T Cert Dermot Carey Affinity Cover Conor O’Connell, Justin Molloy, Gillian Heffernan CQAI Robert Butler Register of Heritage Contractors Jeanette Mair Imagine Renee McManus CERS: Frances McNally Tel: 01- 407 1434 Email: info@cers.ie MILESTONE ADVISORY: Susan O’Mara Tel: 01- 406 8021 Email: info@milestoneadvisory.ie CWPS: Brigid Finn Tel: 01- 406 8025 Email: info@cwps.ie

DIRECTOR / EXECUTIVE TEAM HOUSING & PLANNING: Hubert Fitzpatrick, Noel O’Connor, Jeanette Mair

January/February 2016 CONSTRUCTION 01

05

CIF NEWS

CONSTRUCTION

CONTENTS

5 CIF NEWS

43 FINANCE BILL UPDATE

Latest Federation updates

Gabriel MacGrath on hidden elements of the Bill

13 ELECTION FOCUS Questions & answers with political parties

45 PENSIONS UPDATE

january/february 2016

37

Susan O’Mara with insight and advice

18 COVER STORY Amendments to public works contracts

47 PETER MCVERRY PROJECT Wrap up from pre-Christmas

23 M&ECA AGM News from specialist contractors

48 CWHT Health is your wealth!

28 HOUSING

50 CONSUMER PROTECTION

What can we expect in 2016?

Dealing with debt

37 SKILLSNET

54 CIS REPORT

51 SKILLS AWARDS

New programme from CIF

What’s happening in the market

Photos from recent National Skills

38 AECOM REPORT

53 FACILITIES MANAGEMENT

Predictions for 2016

Show set for Dublin

41 FUTURE FOR WASTE

55 TRAINING All the CIF courses

57 INDUSTRY NEWS Stories from wider construction sector

As landfills close where next?

63 DIARY

18 28

51 January/February 2016 CONSTRUCTION 03

CIF NEWS

Election 16: an opportunity to address housing and skills shortages

T

he next Government must do better to address the housing crisis, the growing skills shortages and infrastructural bottlenecks throughout the country if Ireland is to maintain its position as the fastest growing economy in the EU, according to the CIF. To do this, the Federation want to see a new Cabinet Minister for Infrastructure and Construction.

Launching the CIF Election Manifesto for 2016- 2020, which will be sent to all Election candidates, Director General of the CIF Tom Parlon emphasised the commitment of the construction industry to partnering with the new Government to meet the challenges facing them in the coming years.

He stated: “Our vision is for a sustainable construction industry in Ireland that can help meet the demands placed upon the new Government in seven key priority areas that we have identified. These are: economic growth, job creation, investment in infrastructure, supporting FDI, solving the housing crisis, increasing office space and career opportunities.

“With the right policy and legislative framework in place, CIF believe that the industry can grow and create further opportunities for economic development and investment in Ireland. The construction industry accounts for approximately 7% of GNP. It is likely to generate a turnover of €15 billion in 2016. This excludes smaller schemes and self-build/residential extensions, which could account for a further €3 billion. The industry employs almost 130,000 people, and economic commentators agree that the sector needs to almost double in size to sustain the economic recovery, and provide the homes, offices, hospitals, schools, roads and bridges the country needs in the coming years.

“We are asking all election candidates to really understand the crucial importance of the construction industry in delivering the economic growth they are all talking about and planning for. We are calling on the members of the next Government to do better on issues like housing, job creation and investment in infrastructure. We have

Pointing the way forward?

An Taoiseach Enda Kenny TD

a unique challenge in Ireland. We have the fastest growing economy in Europe, but we have the second lowest level of investment in infrastructure. The scale of the opportunity for this country is huge, and the ambition of the next Government must match that.”

Speaking in respect of the current Governments’ term in office, Mr. Parlon stated: “Our experience in recent years is that there is a lack of joined up thinking in relation to issues surrounding construction.

Issues like housing, planning, procurement, transport, communications, flooding, and ensuring sufficient skills to protect the recovery are scattered across at least six different Ministries. We are calling for a seat in Cabinet for a Minister for Infrastructure and Construction. We believe that there is a growing need for action from Government to ensure all agencies and departments coordinate to sustain a thriving construction sector.”

However, the call for a new minister has been rejected by most political parties, with only Fianna Fail saying it would keep the proposal “under review”.

The need for a construction minister was one of a series of questions put to the main political parties by Construction.

In answering the question Fianna Fail stated: “We believe that the core issue

exacerbating the supply crisis has been the absence of policy direction from the Department of Environment and from the Minister; it has not been due to a lack of powers for implementing policy. We therefore have no proposals to set up a new Minister for Construction post, but intend to keep the idea under review.”

Fine Gael declined to comment about a construction minister but in relation to housing said: “Fine Gael will increase annual housing output to a sustainable level of 25,000 units per annum.

“We will implement a series of measures over the next term of government to achieve this goal, streamlining the local planning process and introducing measures such as a vacant site levy to prevent the hoarding of land and ‘use it or lose it’ planning permissions.

“We will provide 35,000 new social housing units with a €3.8 billion budget up to 2020. It’s not acceptable to have families living in emergency accommodation in 2016. We will introduce a series of measures to boost affordable housing supply.”

To read how the main political parties view the construction sector in the run-up to General Election 2016 turn to page 13

January/February 2016 CONSTRUCTION 05

CIF calls for increased investment to meet Dublin targets

The CIF has called for more investment in skills and infrastructure in the sector, so that the projects outlined by the Government in the Dublin Regional Action Plan for Jobs announcement, can be realised.

The construction industry has the

potential to be a key partner for Government in their aim to deliver 10-15% employment growth in the capital over the coming years, if the right policy framework is put in place that enables growth and output in the industry.

Attending the Government’s

announcement, Hubert Fitzpatrick, Director of Housing, Planning and Development, welcomed the particular acknowledgement by Government of the construction sectors expertise in the domestic built environment, which has in turn provided a strong basis for international expansion of construction activities.

He stated: “The Action Plan acknowledges that the construction sector is critical to the competitiveness factor underpinning enterprise investment and growth within the economy. The Plan clearly sets out the requirements for continuous investment in infrastructure projects, including, the DART underground, the Metro Link, the Dublin airport rail link, as well as continued investment in education, healthcare, and housing. Investments such as these are essential to our ability to attract and retain top-level FDI companies to our shores.

However, the skills shortage emerging in construction will be a factor that requires immediate attention to ensure the right resources are in place to get these projects off the ground.”

“During the implementation phase of the Action Plan for Jobs, continued interaction with the construction industry will be critical in supporting the Department of Jobs to identify critical issues arising within the construction sector which can assist in the delivery of the Action Plan’s objectives.”

Alison Irving has been appointed secretary of the Civil Engineering Contractors Association. She is pictured here with CECA President Pat Lucey and CIF Director Main Contracting Martin Lang

06 CONSTRUCTION January/February 2016

CIF Southern Region holds breakfast briefing on BeSmart.ie On the 3rd of December, the CIF Southern Region office held a Breakfast Briefing on BeSMART.ie.

BeSMART.ie is a free online tool, developed by the Health and Safety Authority (HSA), that lets companies prepare their own safety statement and risk assessments. Brian Molloy, Inspector with the Health and Safety Authority gave an informative presentation to the packed meeting room in the CIF offices in Little Island, Cork. Brian has overseen and managed the development of the website BeSMART.ie and he informed attendees on how the online tool can be used to help develop site specific safety statements and risk assessments

for construction projects. The breakfast briefing was timely as construction related accidents and fatalities have started to rise. The presentation was well received by members who attended.

The BeSMART.ie Breakfast briefing

was only one of a series of Breakfast Briefings that the CIF Sothern Region have held this year. The CIF Southern Region Looks forward to welcoming our members to the future Events we are lining up for 2016.

Need for refocusing on safety as 11 deaths announced The news that 11 people died in construction related accidents has prompted the CIF to call for a renewed focus on site safety.

Tom Parlon, CIF Director General stated: “construction work is hazardous, and tragically 11 people lost their lives in construction-related activities last year.

This number requires us all to refocus on

the importance of safety on our building sites. The majority of these accidents took place on smaller building sites and the statistics indicate that the greatest proportion of these took place on domestic sites. It is important that we all start 2016 with a renewed determination to keep our workers safe.”

Speaking in respect of the Industry’s

Pictured at a recent CIF breakfast briefing “Ten worst mistakes in tendering and procurement” were (L-R) Fergal Ruane, senior associate with Maples and Calder, Barbara Linehan, consultant at Maples & Calder, Alison Irving, CIF Executive Main Contracting and Martin Lang, CIF Director Main Contracting

08 CONSTRUCTION January/February 2016

responsibility to maintain the highest safety standards on-site, Tom Parlon stated: “The construction industry is committed to ensuring the highest safety standards are maintained on sites, and we are proud that over 90,000 people completed Safe Pass training in 2015 alone and similar number in 2014. This represents and investment of €27 million each year in this one programme alone.”

“The CIF is committed to continuing our work with the Health and Safety Authority, the Department of Environment and a range of stakeholders to professionalise the industry and to raise standards in all areas of the sector – from quality to compliance with standards and safety.”

In this regard, Tom Parlon stated: “The Building Control (Amendment) Regulations 2014 (BCAR) was the single biggest move made to professionalise the Construction Industry in a generation. It brought about a tough and rigorous regime of inspections on all construction projects. It established for the first time a Register of competent contractors (CIRI) with the intention that this Register would become compulsory. With strong support from stakeholders through the Industry, including the HSA who sit on the Board of CIRI, there are now over 1,000 contractors on that Register, and a strong culture of safety and standards has become firmly established in the Industry.

We are now calling on the Government to put this Register of competent builders (CIRI) on a statutory footing.”

CIF calls for use of emergency flooding laws The CIF has called for the Government to use emergency EU legislation to repair flooding damage and restore access to homes and businesses.

“The appalling flooding that has struck the country over recent weeks has destroyed homes, businesses and infrastructure,” stated CIF Director General Tom Parlon. ” The number of roads and transport links which were, and in many cases, still are affected, is very high. The fact that today dozens of school buses have been cancelled and others are diverted in areas worst affected, as well as the many homes destroyed, and businesses that cannot reopen, is testament to the lasting impact these floods will have.”

Speaking in respect of the Cabinet’s package of measures to address the crisis, he added: “Investment in flood defence measures, dredging and other innovative engineering solutions to respond to these floods is essential. We know that December 2015 was the wettest on record with over twice the average rainfall. Many of the experts are now saying that global warming is likely to bring further instances of such rainfall to bear, so we must up a gear in our approach to tackling this issue. There is an engineering solution to all of these issues. The construction industry is committed to playing its part to assist in the sustainable recovery from these floods, and in the planning for and delivery of the measures

which will protect towns and villages in the future.”

The CIF highlights the EU legislative powers available which could be employed to immediately respond to the crisis in certain locations. A range of EU Directives allow the Government to rapidly procure works necessary to alleviate dangerous circumstances, and these Directives explicitly apply to instances where flooding arises. The Government can therefore rapidly appoint a contractor to repair roads, railways, homes and businesses where there is a geographic or emergency risk. A geographic risk would include instances of instability of buildings or structures, and an

CIF to launch apprentices.ie The CIF will launch a new website (www. apprentices.ie) at the end of February 2016. The initiative is designed to promote the opportunities available to young people who take up apprenticeships and the careers that are available in the construction sector.

As well as explaining the apprenticeship process and the types apprenticeships available, the website will offer employers the opportunity to advertise apprenticeship vacancies to potential candidates.

For the first time in Ireland the new platform

emergency risk could include risk to human life and livestock.

In this regard, Tom Parlon stated: “Access by ambulances and fire services for example would be incredibly difficult, very much delayed, and in some instances impossible without the help of the army, in many locations across the country at the moment. These Directives have been used in Germany, Denmark and other locations hit by flooding across Europe in the past. We need to see these types of measures being immediately employed by Government, and the CIF and our members are ready and willing to act quickly to assist in this crisis.” will also allow young people who have an interest in apprenticeships, to upload their personal profiles for potential employers to view identify suitable candidates for interview.

If your company is interested in advertising apprenticeship vacancies (at no cost), please contact the undersigned for further information

January/February 2016 CONSTRUCTION 09

Promoting Construction Careers

(L to R): Conor O’Connell, Regional Director CIF, Darragh Nunan, student LIT, Dr Maria Hinfelaar, President LIT and Niall Greene, Chairman, Governing Body LIT Darragh Nunan was recently presented with the CIF Silver Medal for his final year dissertation in Construction Management Studies at the Limerick Institute of Technology.

Darragh’s dissertation entitled “The influences of Building Information Modelling (BIM) in Main Contracting” for his final year studies in Construction Management earned him the Award. For his year’s work experience Darragh secured a placement with Sisk.

The CIF and LIT have a long-term relationship going back many years and the CIF have sponsored the Silver Medal Award for the final year studies in the construction management programme for several years now.

The award is in recognisation of excellence in Construction Management and Regional Director of CIF, Conor O’Connell, stated that “it was encouraging news for the industry that student enrolments in construction courses generally in LIT have increased in 2015. At the awards ceremony, in contrast to previous years, it was heartening to see so many of the students in construction studies courses being present to collect their diplomas, degrees and certificates. This was in contrast to previous years where many students were ‘in absentia’ as they had emigrated.

“We are very proud in the Mid West Branch of our long association with LIT, our ongoing sponsorship of the Silver Medal Award for the final year dissertation in Construction Studies course and our ongoing liaison with LIT to help students secure placements with member firms in the Region.”

(L-R) CIF President Michael Stone, Tom O’Connell, Fleetwood Paints, Mark Dilloughrey, MPDI President, Gillian Ross, CIF Executive Specialist Contracting and Sean Downey, CIF Director Specialist Contracting

Fleetwood and painters thanked for Peter McVerry support CIF President Michael Stone recently met with the President of the Master Painters & Decorators of Ireland Mark Dilloughrey and Tom O’Connell from Fleetwood Paints.

Michael expressed his sincere thanks to both Fleetwood for their donation of materials for the Peter McVerry project and to the following MPDI members for their support: · Thomas O’Malley - Thomas O’Malley Painting Contractor · Mark Dilloughrey – Roger Cooney Ltd. · Pat McGovern - Brightlight Decor · Jennifer Thompson - Kelly & Thompson · Damian Duff - Seamus Duff & Sons Ireland Ltd · Sean Doyle Construction Services Ltd · Ian O’Halloran - M V O’Halloran Ltd · Fergal Feehely - Liam Feehely Ltd · John McNulty – J W McNulty Ltd

Commercial Vehicle Roadworthiness Testing - CVRT The Road Safety Authority Commercial Vehicle Roadworthiness Act 2012 created a new framework for testing and maintenance of commercial vehicles.

Under these regulations, commercial vehicle owners (including jeeps and light vans), are required to put in place a system of regular checks and maintenance for these vehicles and keep records.

The Road Safety Authority (RSA), carry out regular inspections and are authorised to issue directions and take prosecutions for non-compliance.

What do construction companies have to do to ensure the compliance of their fleet?

CIF, in conjunction with the RSA will hold a breakfast briefing on CVRT as follows; Venue: Hodson Bay Hotel, Athlone Date: Thursday 18th February Programme 8.00 am – 8.30am - Registration, Networking and Refreshments 8.30am - 9:30am - Presentation 9:30pm - 10:00qm - Q&A Speaker: Kathleen Callanan, CVRT Manager, RSA Authority

Reserve a place To reserve a place please contact; Mandy McElkearney: mmcelkearney @cif.ie or call 01-4066019

January/February 2016 CONSTRUCTION 11

Dial before you dig!

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Email - dig@gasnetworks.ie or visit www.gasnetworks.ie/dial

In an emergency call

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17/07/2015 14:41

election focus

On the eve of Election 2016 Construction asked all the main parties a series of questions about the construction sector and it’s role in the economic recovery.

Martin Foran reports on what they had to say.

Election 2016: What the parties are saying about construction How important is the construction sector to Ireland’s economy?

Fianna Fail

For a strong balanced recovery, Ireland needs a strong construction sector. The continuing slow growth of the construction industry is a key risk factor endangering economic recovery and increasing living costs for families.

To take one example, the main reason rents are so high around the country is due to the record low levels of rental unit supply. This supply problem is the result of the historically low construction activity in the housing market, which was created by this government due to their introduction of ill-thought out regulatory changes since 2012, under which the cost of building housing no longer bears any relation to supply and demand in the real economy.

These changes have increased the regulatory cost of building a home by €38,000 per unit or a staggering €60,000 for a one off build, before any actual construction gets underway.

Labour

While not mean a return to boom-

time levels of development, Labour in Government believes that, in comparison with other countries – and taking on board long-term trends for Ireland – an economy of our size is capable of sustaining a construction industry equivalent to around 12% of GNP.

Renua

Construction is not just critical to the economy. It also plays a key role in the state of society.

Sinn Fein

The construction sector is crucial part of Ireland’s economy employing many skilled and semi skilled workers year round. It is also crucial to have such skills in order to develop adequate housing, commercial and public spaces as well as developing and maintaining quality infrastructure.

People Before Profit

Housing and construction is a very complex and emotional issue and cannot be tackled in isolation. The construction industry has a responsible part to play whether they like it or not. It is way too important to left in the hands of dodgy developers and estate agents

and should come under tighter government control.

fine gael

Declined to comment.

Greens

The construction sector has an important role to play not only in the Irish economy, but Irish society. It will play a vital role in future-proofing Ireland, by building the affordable, comfortable housing our citizens need, by insulating and retrofitting our buildings to save homeowners money, save energy, and reduce Ireland’s emissions.

The construction industry will be vital in building the roads, public transport infrastructure, housing, schools and hospitals that Ireland needs to thrive for the next 100 years.

If elected to Government what steps will your party take to ensure future growth in the construction sector?

Fianna Fail Fianna Fáil’s policy blueprint ‘The National Housing Road Map‘ sets out a series of policy proposals to stimulate the

January/February 2016 CONSTRUCTION 13

election focus significant boost to the construction industry.

The Green Party would also divert the €120 million currently being used to subsidise peat fired power plants to a home retrofitting scheme. This would create 3,000 jobs in the construction sector, retrofitting 5,000 homes per year.

Fine Gael

construction of 150,000 new affordable, quality homes in the private market, help revitalise the construction industry with 80,000 jobs, support elderly people living independently in their own homes and broaden social and affordable housing provision with 45,000 new units.

Labour

Labour in Government is already working hard with the CIF to boost employment in the construction sector, particularly through measures introduced in the Tánaiste’s Department of Social Protection.

Under the Tánaiste’s leadership, the Department now provides a range of supports to connect employers with skilled workers. And through the JobsPlus subsidy to companies, the Government provides

Do you think there should be a Minister for Construction?

Fianna Fail: We have no proposals to set up a new Minister for Construction post, but intend to keep the idea under review.

Sinn Fein: We would not have a specific Ministerial post for construction.

Renua: No; but we believe that construction, in terms of needs, regulation and strategy should be focused far more closely upon by central government.

Greens: We don’t believe there should be a dedicated Minister for Construction.

People Before Profit: There should not be an construction minister no more should there be and hotels minister.

Labour: Labour will prioritise the supply of housing in the next Govt and Departments and the allocation of Ministries will be looked at in the context of a Programme for Government.

Fine Gael: Question not answered.

14 CONSTRUCTION January/February 2016

help with wage costs, an invaluable support for companies. We are also piloting social clauses in major public contracts, to ensure that when such a project gets under way, unemployed construction workers living in the locality are hired. The very significant Grangegorman PPP is an example in that regard.

Renua

We will prioritize a major new Public Private Partnership driven programme of social and community housing, prioritizing the needs of working couples, which we expect will generate private sector investment of two billion euros per annum.

Sinn Fein

Sinn Féin have committed to a major investment in social and affordable housing which will require huge input from the construction industry and employ thousands of workers at all levels for a period of 15 years when we plan to build 100,000 social and affordable housing units. Additional plans to invest in health, education and public infrastructure will be a major boost to construction. We also would implement and stronger vacant site levy to discourage speculation and increase viable land for construction projects both public and private.

People Before Profit

The future growth of construction lies in the next government declaring a housing crisis and calling for a housing programme to build directly housing for the nation, which the nation’s builders can be employed in the construction through local authorities and other vested community groups who want to achieve quality housing for future generations across the country.

Greens

The Green Party proposes an ambitious state backed building programme, using NAMA to coordinate, and using state owned lands. This would provide a

Fine Gael will increase annual housing output to a sustainable level of 25,000 units per annum. We will implement a series of measures over the next term of government to achieve this goal, streamlining the local planning process and introducing measures such as a vacant site levy to prevent the hoarding of land and ‘use it or lose it’ planning permissions.

In recognition of the 31 different local authorities’ approaches to apartment standards, new national design standards for apartments have been published to streamline the approach and are designed to increase the supply of new apartment developments.

We will introduce a number of reforms for renters, recognising the changing patterns of the housing market.

We will provide 35,000 new social housing units with a €3.8 billion budget up to 2020.

It’s not acceptable to have families living in emergency accommodation in 2016. We will introduce a series of measures to boost affordable housing supply.

More detail will be available in the Fine Gael manifesto.

The construction sector faces a significant skills shortage, both for apprenticeships and construction professionals? How will your party in government tackle this issue?

Fianna Fail The dramatic decrease in construction activity has decimated apprenticeship numbers. Skilled labour is vital to the future of the construction industry and a reliable employment source for young people across the country. We believe that the government has not shown enough ambition in expanding both the scope of new apprenticeships as well as the increasing the number of traditional apprentices being trained.

Fianna Fáil aim to significantly accelerate the number of apprentices coming through the system by 20% (over 10,000 places), via the provision of an additional investment fund of €7 which will be used to remove some of the blockages in the apprenticeship and training system at present, such as the moratorium imposed on ETBs in securing additional trainers.

Labour

Labour has ambitious plans to enhance the

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election focus

skills base of Ireland’s workforce. The National Skills Strategy, which we launched as a Government this week, will pave the way to provide 50,000 apprenticeships and traineeships by 2020, which Labour regards as a crucial element in the range of career options for our young people.

The Strategy outlines how we can develop a well-skilled, adaptable workforce that contributes to, shares in and benefits from opportunities of economic expansion.

Renua

RENUA wants to 1 – Reconfigure Solas to ensure it prioritizes creating apprenticeships in the trades 2 – Redevelop the Leaving Certificate so as to increase its focus on Applied (trade) centred learning as us the case in other European countries such as Germany.

Sinn Fein

Sinn Féin would focus on providing quality apprenticeships which support apprentices through their training. Including tailored internships by sector, in full co-operation with trade unions and education and training boards, to ensure the best outcomes for employers and employees.

Sinn Fein would also lift the education fees on apprentices.

Greens

The OECD 2013 “Education at a Glance” report highlights the relationship between low youth unemployment in countries that adopt youth education within workplacebased formal apprenticeship training.

We will roll out more extensive use of apprenticeship based training approaches for 15-20 year olds such as that adopted in Germany. However, compared to other countries, we have less experience of such an apprenticeship based training culture

in Ireland. Accordingly, we will pilot investment in training programmes for workplace trainers, led by practitioners from companies with strong experience in this area.

What measures should the new government take to stimulate housing development?

Fianna Fail

One of our headline measures for stimulating private construction is to use the Strategic Banking Corporation as a new Home Development Bank, with the specific remit of financing developers In order to further address the credit crunch that is limiting the capacity of developers, the bank would be empowered to issue bonds which are then used to finance private developers with viable projects. The record low borrowing rates enjoyed by the state should be maximised to issue debt which can then be channelled into home building. Profits yielded from this may be used to help finance social housing projects. This additional competition will help re-invigorate the banking system and inject badly needed funds into development projects.

Labour

Labour has already introduced a number reforms to help kickstart house building, including revisions to Part V of the Planning and Development Acts to increase the supply of social housing; the retrospective application of reduced development contributions; and the introduction of a vacant site levy. In addition we have introduced a new one stage approval process for projects up to €2m in value and up to 15 new housing units.

We have standarised apartment planning guidelines across the country to improve

affordability of apartments which will also boost supply of housing and construction activity. We have also paved the way for the Ireland Strategic Investment Fund to invest substantially in enabling infrastructure which is needed for housing construction to commence in many areas across the country.

Through the Social Housing Strategy 2020 we have set out measurable actions and targets primarily to increase the supply of social housing to meet the housing needs of all households on the social housing list. In total, the Strategy targets the delivery of 110,000 new social housing units through current and capital funding streams. €52 million has been invested on the refurbishment and upgrading of 4,700 local authority units to bring them back into use.

Sinn Fein

Major public investment through the local authorities to construct social and affordable housing across the state amounting to about 14.8 billion euros over the next 15 years. We would also improve support for community land development and cooperative housing as well as fast tracking NAMA housing.

People Before Profit

The industry should be taken into state control and the next government should declare a crisis in housing and draw down emergency funding from Europe and petition companies across Europe and Ireland with requests to build immediately and invest in Irish Construction and build the homes needed by the people of this state. C

How many new housing units are required each year for the next decade?

Fianna Fail: targeting 30,000 new units per annum which would create 80,000 jobs a year.

Sinn Fein: 25,000 per year. Over the next 15 years Sinn Féin plan to build 100,000 social and affordable housing units.

Renua: 25,000 per year.

Greens: There is an urgent need for tens of thousands of homes to be delivered as soon as practically possible.

People Before Profit: 10,000 to 15,000 new housing units are required at a minimum for ever year over the next decade.

Labour: 25,000 per year.

Fine Gael: 25,000 per year.

January/February 2016 CONSTRUCTION 17

Changes to public contracts hailed as “hugely significant”

Pictured at a recent seminar outlining changes to public works contracts were (L-R) Philip Crampton, Martin Lang CIF Director Main Contracting, Sean Downey, Director Specialist Contracting and Tom Parlon, CIF Director General

After a lengthy process and lobbying effort from CIF and its members, amendments to public works contracts are now live. Brian Foley reports.

C

IF President Michael Stone calls it the “greatest achievement” in his time on the Executive Council, while CIF Director General Tom Parlon says it’s a “significant positive move forward”.

They are talking about the recent introduction of amendments to public works contracts that remove some onerous conditions contained in the previous contracts that came into force in 2007.

“The changes are hugely significant,” says Michael Stone.

“The old contracts led to a situation where companies opted out of tendering for public works. The risk was too high, which led to a situation where are best and most innovative companies weren’t involved.

“With the introduction of these amendments these companies will come back into the fold and tender for public work,” he says.

“This will bring value for money to the taxpayer in terms of better

18 CONSTRUCTION January/February 2016

value for money and quality through increased competition.”

The CIF President also said that “great credit” is due to Philip Crampton, “he did a superb job”.

According to Tom Parlon the CIF belives this “first step will bring some long awaited relief to our members and will benefit the state, the overall economy and stakeholders throughout the procurement process.

“The amendments should also help in securing more cost certainty and efficiency in the delivery of sustainable quality outcomes across a broad range of public procurement. Greater certainty in dealing with the selection and procurement of specialist contractors is also very welcome,” he said.

The amendments have the potential to reduce the amount of management time and expense currently involved in dealing with costly disputes, a feature that is particularly welcomed by all.

“The CIF will continue to regularly liaise with the

cover story Steve Roswell at the 2013 Public Procurement Conference

The four interim recommendations are: • Make the bill of quantities the primary reference document for the pricing of public works tenders for projects designed by the contracting authority.

• Introduce a separate tender and subcontract for specialist works contractors.

• Require all projects with a value in excess of €2m to be awarded on the basis of Most Economically Advantageous Tender (MEAT) with a significant weighting for quality (this amendment will now be included in the medium term strategy) • Overhaul the dispute resolution procedures for all public works contracts.

Department, the Office of Government Procurement and the Government Construction Contracts Committee regarding this issue,” said Director General.

“Our in-depth knowledge and experience on offer through our organisation and membership The Department of Public Expenditure and Reform have agreed the implementation of the Interim Measures amending the Public Sector Contracts, as outlined in the Review of the Performance of the Public Works Contracts 2014

Paul Morrell, UK Government Chief Construction Advisor OBE 2009 to 2012, speaking at the 2013 Public Procurement Conference organised by the CIF. Philip Crampton believes this event helped moved the process forward.

has had, and will continue to have, a valuable contribution to this on-going process.

“We look forward to the development and implementation of the elements of the Medium Term Strategy set out in the Review Document published in 2014, and will continue our efforts in making a positive contribution in this area.

“This marks the first step in the overall review, we look forward to seeing the implementation of these interim measures in the weeks and months to come.” C

“This is a good news story” For Philip Crampton the introduction of the amendments to the Public Works Contracts is the culmination of work that began over ten years ago.

“The problem actually started during Budget 2003 when Minister for Finance Charlie McCreevy said he was planning to make changes to government contracts,” he remembers.

“When the first draft of those changes arrived in 2005 there was complete shock,” he says. “There had been no consultation but over the next couple of years we managed to get it watered down somewhat, so even though we never accepted the 2007 version it could have been a lot worse.”

Philip says work commenced to have the contracts amended almost immediately after their introduction - “everyone knew, apart from the GCCC, they would be an unmitigated disaster”.

He cites the Public Procurement Conference organised by the CIF in 2013 as a turning point. “We had experts like Steve Roswell and Paul Morell over from the UK. “The new GCCC Chairman, David O’Brien, not only attended but also gave a speech. Trust was being developed. After that, and combined with Martin Lang’s constant efforts, we felt if we played our cards right that progress would be made.”

A submission was prepared by the PT&C committee so when the review was eventually announced in January 2014 the CIF was ready.

“The actual results of the review were announced in December 2014 but its taken over 12 months to get the implementation,” says Philip. “We’re encouraging all public bodies to begin using the new contracts as soon as possible. There’s nothing stopping them using the contracts now.”

As previously stated, this is not the end of the review process.

Although the review is complete new amendments will be introduced in the ‘medium term strategy’.

“We’re expecting issues like risk management and performance evaluation will be addressed,” says Philip.

Of note in the current amendments, says Philip, is the separate tender for specialist contractors. “This is going back to close to what we used to consider was nomination.”

He mentions the GCCC will use the CIF internal sub contracts as the official contract for reserved specialists – “that’s big for us as we have control over those contracts”.

“This is a good news story,” he adds “and only the first step in an on-going process.”

Public Works Contracts training courses will be rolled out over the coming months. Full details will be published shortly. C

January/February 2016 CONSTRUCTION 19

cover story

Public Contracts Q&A with Ger O’Leary

What do the amendments to public works contracts mean for specialist contractors? Ger O’Leary gives his response.

Ger O’Leary, outgoing President ECA and outgoing M&ECA Chairman

transition to the new contract conditions easier to mange. Many of the smaller and medium sized M&E companies would traditionally not have employed quantity surveyors or dedicated project cost management staff. I expect to see a continued trend towards more quantity surveyors and dedicated cost management staff in M&E companies in the future.

Do you think members will now become more active in seeking public works contracts?

Yes, I think this will definitely make public procurement projects a viable option for all our members and I would expect to see far wider engagement in public procurement project by our members in the years ahead.

Do your members currently tender for public works contracts?

The reality is that many of our members and particularly the larger ones have opted out of public procurement almost entirely.

What have been the main issues affecting participation in public works contracting?

There has been three main areas of risk and uncertainty. The first was the process of selection of specialists which meant that at times 40 or 50 companies were being asked to bid for packages to main contractors and this was only the first round. That was completely unsustainable.

The second was the inherent uncertainty within the sub-contract payment process.

Specialists were often left in a monthly position of not knowing how much they were going to get or when they were going to get it. The third was payment security in terms of an overall lack of confidence in the solvency of companies operating in construction.

What do you feel will be the biggest changes for M&ECA members?

The direct selection process will give our members confidence that they have a reasonable chance of securing a project and at a sustainable price. The revised conditions of contract greatly improve transparency and security in the payment process.

Why do you think the GCCC have introduced the changes to selection of specialists?

There have been significant issues around the procurement and management of specialist works for the past 10 years under the public works contracts. Secondly the GCCC recognise that the M&E specialist works packages alone can constitute up to 40% of the contract sum and they want to have certainty of delivery on that element.

Do you think the change to the status in the Bill of Quantities will make a difference?

It will most likely make the cost management of specialists contacts more detailed and time consuming but at the same time it should also make the process of identifying and getting approval for changes to the scope more straightforward.

The notification process for changes to the scope does not change with the introduction of the Bill of Quantities but it should make it easier to identify changes and it should make it easier to reach agreement.

Will members need to consider developing new expertise in their companies in relation to cost management?

The M&E companies working for pharmaceutical and ICT clients, particularly the larger ones, would probably have better cost management systems and quantity surveying expertise that should make the

What do you believe the challenges will be for members who are now going to seek public works contracts?

Initially familiarisation with the new contract and all the training of personnel that this involves. The CIF has plans in place to roll out training beginning quarter 1 2016 and it very important that all members avail of the training and seek to ensure their commercial staff are as knowledgeable as possible.

What other policy area will M&ECA members seek to pursue in 2016 that could affect their business?

There are many important areas that members will be hoping to see movement in in 2016. The Government Contract Act has still not been given a commencement date and this is essential to reduce risk within the entire construction supply chain.

The GCCC has said that it wishes to trial project bank accounts in Ireland and we would hope to see the selection of a Project for the 1st trail at some stage in 2016. Certainty and stability are needed in Industrial Relations and we would hope to see Sectorial Employment Orders in place in both the Mechanical and electrical Sectors. We also need to see continued focus on selling of our industry to both school leavers and parents and to try to develop a much more positive story about the industry and the longer term opportunities that it offers. C

January/February 2016 CONSTRUCTION 21

M&ECA

(L-R) Michael Kennedy, President ECA, Ger O’Leary, outgoing President ECA and outgoing M&ECA Chairman, Sean Downey, Director Specialist Contracting & Secretary M&ECA, Sean McElligott, Vice President MEBSCA and Niall Bourke, President MEBSCA and M&ECA Chairman

M&ECA AGM hails successful contract changes

A

ccording to Ger O’Leary “public procurement contracts have been very difficult over the last eight years so much so that many members have opted out of them almost entirely.

“Over the past number of years our aim as an association has been to address the exceptional risk and uncertainty in public sector projects. The three policy areas that had been identified were: • The procurement process and selection of specialists • Visibility in the payment process (in terms of certs and time-frames) • And Certainty in the payment process (in terms of payment security)

At the recent M&ECA AGM a number of important issues were discussed that have a direct impact on the sector. Both outgoing ECA President Ger O’Leary and MEBSCA President Niall Bourke addressed the meeting.

“In April 2015 interim measures to amend the Public Works Contracts which were published. There were four main headline changes.

• Introduction of effectively re-measurable contracts and the use of Bills of Quantities • Direct Tendering of Specialists • Dispute Resolution and Dispute Avoidance measures • Strengthening the use of MEAT (Most Economically Advantageous Tender) in the selection of Contractors.

On the 18th January the revision to contract conditions was announced and these will take effect from the 4 April 2016.

The term Reserved Specialist is being used and these packages will be tendered separately. Specialists will be provided with the identity and programme of the successful main contractor in advance of submitting their tender.

Under the contract condition, specialists will receive a copy of the main contractor’s payment claim notice showing the amount applied for on behalf of the specialist. They will also receive a copy of the certificate

January/February 2016 CONSTRUCTION 23

M&ECA Pat King, King & Moffatt, John Fletcher, Fletcher Engineering

work. A large number of members have contributed hugely through their efforts in the PT&C committee and executive body and I think its worth noting the consistent commitment of Sean Greally and Terry Tierney in all matters contractual.

Finally on Contract matters, Project Bank Accounts remains a live policy objective for the M&ECA and the CIF and we would expect that as the GCCC changes are progressed and the CCA is implemented that we can then bring that policy initiative forward.”

Apprenticeships

Niall Bourke, MEBSCA President and M&ECA Chairman, addressed the AGM about apprenticeships issue.

“Phase 1 registrations in M&E and associated supply chain trades have continued to show growth in 2015,” he said.

Leonard Cooper, Cobec, Joe Delaney, Tritech and Jean Winters, CIF Director Industrial Relations showing the amount certified for the specialist. As detailed in the sub-contract conditions the amount for the specialist will be held in trust by the main contractor until it is passed onto the specialist.

The dispute resolution clauses have been overhauled to introduce greater speed and flexibility in dispute avoidance and resolution. These clauses will need some further amending to cater for adjudication, if and when the Government Contracts Act is commenced.

These revisions are undoubtedly good for both main contractors and specialist contractors, and will hopefully lead to wider changes in public procurement. They also should lead to better relationships between specialist and main contractors and far wider engagement in public procurement by our members.

“There is no doubt that this is a great success for our associations and without the huge work of many members at these association meetings, at PT&C meetings,

the CIF Executive Body meetings, and other various sub-committee and sub-group meetings we would not be in a position to report such substantive progress,” said Ger O’Leary.

“If ever there was proof that strong collective representation works then this is it.

“At this stage I think it is very important to recognize the tireless and hugely effective work that Sean Downey has done since the day he joined the CIF in helping to bring these changes to fruition. I think it is also important to recognize the huge work done by Tom Parlon as Director General and off course Michael Stone as President of the CIF in bringing about these positive developments.

“The Contracts Review Committee, consisting of 10 M&ECA member representatives has helped to guide procurement and tendering policy, it was a very helpful soundboard and I would like to thank those representatives for their

Michael Kennedy, incoming ECA President

Tim Ferris, incoming vice-President ECA

January/February 2016 CONSTRUCTION 25

M&ECA “Pipefitting has made a recovery and possibly some choosing it rather than plumbing. Electrical apprenticeships registrations has continued to grow and is heading to the 1000 per year mark.

E&I apprenticeships continue to be the preference over Instrumentation which shows just eight in 2015.

“The focus on apprenticeships has been to sell our industry again to both candidates and their parents and to drive greater demand for the technical trades that our companies will need in the coming years.

“It is critical that we step forward as the biggest employers in the industry and try to develop a much more positive story about the industry and the longer term opportunities it offers,” he added.

Training and development

In Q1 2016, the CIF will be sending out a training needs survey to all members to ascertain where the skills gaps are and what programmes would best address those gaps. It is important that members respond to highlight where our organisations will require support in 2016 and beyond.

CIRI registration entails CPD requirements for all workers and it is important that in 2016 & beyond, the CIF actively supports organisations in a way that ensures organisations are strategic in their training delivery, not training for the sake of training and that they can expect to get an adequate return on the considerable investment that is needed in Training all employees.

The revised public sector forms of contract will be the main focus for awareness and training of our members in early 2016.

The Engineers Ireland Fast Track programme is still being successfully delivered in conjunction with M&ECA. It is designed for post-apprenticeship tradespeople and over a number of successful modules has contributed to the development of over 60 of current and future management staff for our organisations.

Eddie Walsh STS, Frank Matthews, Mercury Engineering and Terry Tierney, Jones Engineering Sean Downey has also delivered presentations directly to interested members on the new BCAR / Assigned Certifier regulations and on the Construction Contracts Act. This opportunity is still open to any member organisation who has not availed of it and would like to do so.

LEAN Construction

M&E organisations play an active role in the leadership and direction of the Lean Construction Institute in Ireland.

In 2015 we initiated an Introduction to a Lean programme for members who previously had no exposure to the concept but wished to become involved.

The CIF has also developed an advanced site management programme for site management staff which is being delivered by 6ix consulting and extensively uses the Lean tools to develop better management techniques and resource output.

With the formation of the Construction Client Group for Lean there are now more and more of our clients switched onto Lean and it is important that our members, at the very least, have a good basic understanding of the principles.

ECA Conference

The annual, ECA Ireland Conference was hosted in 2015 by our branch in Tavira, Portugal. Thirteen delegates attended what was a very enjoyable event.

In 2016 the Belfast branch will be hosting the event and the location is expected to be in Ireland. In future years it

may be prudent to review the location to determine the best option that will attract a greater participation and make the event more appealing to greater numbers.

Sector outlook

“I think it is fair to say that the overall outlook for our sector is continuing on an upward curve all be it with a pronounced regional disparity,” said Ger O’Leary.

“On the private front the FDI pharmaceutical and ICT clients continue to invest in large projects with a significant number already underway and positive signs that there are others in the pipeline for 2016 and beyond.

“The year ahead is significant in that we will have the implementation of the new rules for the public works procurement and forms of contract and hopefully this will also contribute to increased opportunities for members for the years ahead.

“The results from active participation and representation by our members is obvious to see.

“Finally I would like to wish Michael Kennedy all the best in the role of ECA president, I have absolutely no doubt that we are in very safe hands.

“I would like to Thank Orla Brady and Gillian Heffernan for all their work, assistance and patience over the last few years.

“I would also like to thank Tom, Jean and of course Sean for all their work and for the help and guidance they have given me during the past two years.” C

January/February 2016 CONSTRUCTION 27

Fairhaven at the Phoenix Park Racecourse, Flynn & O’Flaherty Construction Ltd.

Housing numbers failing to add up on all fronts

W

hen examining all the factors at play in the Irish housing sector the overwhelming sense is inertia.

Momentum is in short supply and the news that as a country we will build less houses in 2016 than in the previous year, after all the publicity about the lack of housing, really underlines how difficult easy solutions are to find.

In 2015 there were 8,093 commencements. Over 3,200 of these were ‘one-off ’ houses so the real figure for development housing started last year was less than 5,000 units. When the average annual requirement for housing over the next ten years is 25,000 units.

Completion figures for 2016 could be as low as 11,000 says CIF Director Housing Hubert Fitzpatrick.

The chronic housing shortage in the capital continues, as Dublin experienced a significant drop in the number of new housing units built last year.

Only 2,891 residential housing units were completed, compared to 3,268 units in 2014.

Worryingly, the number of residential units commenced nationally in 2015 increased by a mere 4.9% from 7,717 units in 2014. The only counties to

28 CONSTRUCTION January/February 2016

If the housing sector is made up of many moving parts, most of them appear to be broken. Brian Foley and Martin Foran report on housing’s current state of play.

experience any increase in residential commencement activity are Dublin (+24.2%), Louth (+35.7%), Kildare (+30.3%), Wicklow (32.1%), Laois (43.2%), Kilkenny (20.7%), Cork (+15%), and Cavan (+15.5%), while all other counties saw reductions in commencement of new residential units.

According to Hubert Fitzpatrick, “builders want to build, but they are being held back by a variety of factors, including the high cost of building which, incredibly, is higher than the market value of a new house in many parts of the country. How can a builder be expected to incur this loss?

“Only approximately half of the sale price of a house is the cost of building, the rest is made up of a combination of regulatory compliance and VAT. New homes in the UK have a 0% rate of VAT, while in Ireland a 13.5% rate applies. This is too high and is making house-building almost unviable in many parts of Ireland.”

One of the answers to increasing supply of new homes lies in ensuring the availability of mortgages for purchasers of new homes. “We urge the Central Bank to reconsider its macro

housing Builders are looking for more certainty in the market. Even those developers working in Dublin are refusing to commence new phases until completed phases are sold out. The Central Bank’s review of mortgage lending rules, due later this year, can’t come fast enough for a sector that wants to know if it’s potential customers can secure a mortgage. prudential policy for residential mortgage lending. In particular we believe that a mortgage applicant’s ability to make regular repayments in the way of regular rent- which in many cases is higher than the repayments they would expect to pay on a mortgage- should be taken into consideration.”

The CIF Director also says the lending caps need to be re-examined, that €220,000 as the limit at which first time buyers have to provide only 10% of the cost price as a deposit (buyers have to provide 20% deposit on any figure over the €220k limit).

The CIF says the limit should be raised to over €280,000.

The current loan to income multiple of 3.5 needs to be increased to 4.5, says the CIF Director.

“Future housing supply will be a major issue for the new Government to grapple with, as the current impasse in relation to the level of new build must be resolved. If we are to maintain the country’s competitiveness in attracting and maintaining new jobs, then we must ensure that we have a viable supply of residential units available for purchase or to rent in the areas where they are most needed.”

Help to Buy scheme

Similar to the scheme in the UK, the CIF supports calls for the introduction of a Help to Buy Scheme in Ireland. The basic plan is that Government takes an equity stake in a first time buyer’s home, which is purchased back from the State at an agreed time in the future.

“This sort of scheme would help reduce social housing waiting lists as people who in the past would have purchased a home are now on housing waiting lists. This scheme would encourage more private ownership.”

Commenting on Minister Kelly’s reference to developers lowering their expectations for massive profits, Hubert Fitzpatrick stated that housing developers want to build houses to meet the growing demand, but can only do so when it makes economic sense.

The market price of many homes

throughout the country is still well below the all-in construction cost. In a report commissioned by the IHBA from Walsh Associates, Construction Cost Consultants in 2014, the construction cost of a three bedroomed semi-detached house of 110 sqm is calculated at €225,961, in addition to site costs plus VAT at 13.5%. According to the Daft House Price Report 2015 published in early January, the average asking price for houses in Carlow is €140,536, in Offaly it’s €138,247, while in Westmeath the average asking price is €145,804. Clearly, as long as sales prices for these houses are below replacement cost, the market will not support increases in the construction of new homes. As long as this situation prevails, little to no new housing will be built in these areas.

While the Minister has sought a different type of developer, “one that is willing to invest in social and affordable rental housing”, he fails to recognise the enormous difficulties with securing finance to deliver such long term initiatives.

Reasonable return

Leaving Dublin and neighbouring counties aside, estate agent Keith Lowe states: “The long and the short of it is that it is not economically viable to construct houses outside of Cork City, Galway City and a few other places, possibly including Kilkenny.

“In most other areas it is not viable to construct a three bedroom house as the prices are not high enough to cover your build and associated costs.

“As for apartments it will be years before they will be built outside the Capital.

Again, prices will have to rise to a level that makes this economically viable.”

Demand and supply

One of the central messages to emerge has concerned the matching of demand and supply.

This has long been an issue. TCD’s Ronan Lyons has pointed out that roughly

50,000 new households were formed in Dublin in the period 2010-2015 while fewer than 10,000 new dwellings were built in the same period.

Construction 2020 with its emphasis on strategic and measured approaches stated: “There has been little connection between the construction and supply of houses and any measured, sustainable level of demand.”

The National Statement of Housing Supply and Demand 2014 and Outlook for 2015-17 told us: “Over the period 2015-2017, an average of 21,000 units are required per year to meet minimum demand requirements.”

Key findings and analysis from the National Statement included interesting observations on changing demographics: “The population of the Irish State, at almost 4.6 million, is at its highest for 150 years. It increased by 30% in the last 20 years alone and is predicted to grow to 5.2 million by 2031.

“Projections undertaken for the Housing Agency indicate that the national population will increase by over 170,000 between 2011 and 2018 and that the average household size will decrease from an average of 3.04 persons in 2002 to 2.67 in 2018.”

We can therefore take it that an increasing population and a declining household size will both increase demand for housing units and demand for smaller units. C The Urban Regeneration and Housing Act 2015 amended the Part V provision and is now in force. All developments greater than nine units must supply 10% of units to social housing. “We will work with the Department of the Environment to ensure meaningful guidelines are issued to local authorities for effective roll out of Part V,” says Hubert Fitzpatrick.

Woodbank at Shankill, Dublin, is currently being developed

by Ravenshall Developments

January/February 2016 CONSTRUCTION 29

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housing the estate agent: Keith Lowe

(L-R) Fergal McAleavey, Head of Private Equity, Ireland Strategic Investment Fund (ISIF), Frank Dowling, Head of Real Estate Investments, ISIF, Eugene O’Callaghan, Director, ISIF, Dominic Doheny, Senior Vice President CIF, Hubert Fitzpatrick, CIF Director Housing and Martin Whelan, Head of Corporate Affairs, NAMA

ISIF – “We’re very keen to engage with you” In late January CIF members attended a special briefing given by members of the Ireland Strategic Investment Fund. Access to affordable finance was the main theme of the meeting, as Brian Foley reports.

“We’re open for business’ was the message from the Ireland Strategic Investment Fund (ISIF) when it met with CIF members in a Tullamore hotel in late January. The business is developer finance and ISIF says it has over €7.8bn to invest in a range of projects including private and social housing.

Eugene O’Callaghan, Director, ISIF, told his audience that the fund’s “pot” of money was originally the national pension reserve fund. It sits within the National Treasury Management Agency.

According to the ISIF Director over €2.2bn from the fund has been committed while there is a discretionary portfolio of €7.8bn to invest.

“The fund’s mandate is to invest on a commercial basis to support economic activity and employment in Ireland,” said Eugene.

“We seek out spaces and opportunities where our investment can make a difference, there’s no point investing in projects others want to invest in,” he said.

Throughout the presentation the ISIF team stressed there was no set template for applications to the fund – each application would be judged on its own merits.

As to the cost of finance a “safe” investment could be as low as two to three percent while a high risk project could be as high as 15%.

“We’re looking for a mix of high, medium and low risk investments,” said Eugene. “We have a 4% target return across the spectrum of projects.”

Eugene stressed that “today we are beginning to build on relationships with

CIF members”.

Fergal McAleavey, Head of Private Equity with ISIF outlined some of the investments made by the fund, including Irish Water (€150m) and student accommodation (€54m).

He said investments up until 30th June 2015 has resulted in the creation of 12,190 jobs, while there was an even spread of investments between Dubin and the rest of the country.

Activate Capital

Of most interest to developers will be Activate Capital, the residential development investment vehicle that sits within ISIF. The fund has €500m to invest.

Activate was established in September 2015 and according to the ISIF team the first project is “nearly over the line” worth “between €20m and €30m”.

Typically Activate will offer finance at 10% but will allow interest to role up if a project is still in the planning stages.

Activate is an “eight to ten year fund”. In 2016 it plans to invest €150m in housing projects.

The ISIF team acknowledged the importance of enabling infrastructure – “this is big for 2016” – as it will open potentially thousands of residential units.

After the presentation was complete there was numerous questions from the floor, mainly about the cost of financing.

CIF President Michael Stone urged ISIF to bring case studies before members to they could better understand how funding could work for their projects.

“10% finance won’t work,” he said.

“In 2013 Dublin prices went up by 18%, the following year it was by 23%,” says Keith Lowe, CEO of estate agents Douglas Newman Good (DNG). “Those sorts of rises weren’t sustainable.”

And so it was that last year prices in Dublin more or less flat lined. However, if you look outside Dublin, most large urban areas with good employment had double digit price growth.

“What is happening is that outside of Dublin is playing catch up,” says Lowe. “There was a ripple effect.

“Galway went next, then Cork and the environs outside of those areas, which had shown virtually no growth, are starting to rise and that is very welcome.

“Areas like Limerick are showing increases in value for last year which is good.”

Overall, Keith Lowe expects that this pattern will continue in 2016. “Outside Dublin I think you will see a lot of capital growth again in those main urban areas,” he says.

“It sounds very good,” he adds.

“But it’s coming from a very low base.”

Back in Dublin Lowe predicts that prices this year will rise somewhere up to around five per cent and outside Dublin – the main urban hubs – will probably see double digit growth.

But there is one risk which could affect certain areas notes, Lowe.

“The Funds who have bought a lot of property – high volumes – some are starting to offload some of their housing stock.

“If they do that in certain areas it could affect recovery in some small places but overall the market will be robust and solid.” C

When asked about developers who don’t have equity ISIF said they were “looking at people who are at the lower level. People do need to have some skin in the game, they have to partner us with an equal share of pain. There can’t be 100% finance,” said Fergal McAleavey.

“There is no solution for smaller developers as yet but we are looking.

Activate does require some form of equity.”

CIF members did express concerns about the loss of construction talent if solutions are not found for developers without equity. One man said: “Until you get people like ourselves building nothing is going to happen”. C

January/February 2016 CONSTRUCTION 31

housing the developer: Matt Gallagher Woodbank at Shankill, County Dublin is currently being developed by Ravenshall Developments which is run by Matt Gallagher, Eoin Gallagher and Frank Gunning.

The scheme consists of 40 houses and 18 apartments and duplexes – all fitted out to the highest specifications.

Weather permitting they are looking at a late April launch.

There is a strong demand out there, says Matt, particularly in Dublin where prices are obviously more expensive but there are challenges too, he adds.

The first of these that Matt mentions is in relation to the Central Bank mortgage lending criteria.

It makes it quite hard in Dublin he says. “Take someone buying a house at €300,000, they have to find a €38,000 deposit.

“Add to that the fact that first-time buyers are often in rented accommodation – they are trying to save for this deposit and pay rent at the same time.

“You might ask how it affects the markets. Well, the ‘traderuppers’ are generally moving out of say, a three-bedroom house in an older estate coming onto the market at maybe €350,000 to €400,000.

“If the first-time buyer cannot afford that house then those people cannot move up to a new house which might cost in the region of €500,000. The whole chain is affected.

“Sales are falling through because the chain is being broken.

“It is a double-whammy as you also have the limit of threeand-a-half times the salary. To be honest,” says Matt “I don’t think that is reasonable.

“I think the banks had a better system before the Central Bank stepped in – having been bitten before they came in with very strict guidelines.

“They were looking at spending habits and checking people’s ability to pay.”

The other issue that is affecting the whole business is building costs, says Matt. It has become very expensive to build.

“All during the recession there were increases in the building regulations requirements,” points out Matt.

“You had the BC(A)R regulations brought in – for very good reasons. But in my opinion they went over the top.

“They brought in a system that is so complex. We had to employ an extra person to deal with the paperwork. That is a fact.”

There have been some welcome attempts by the Department of the Environment to deal with some of the cost issues, says

Matt, particularly with regards to apartments.

Here Matt is referring to recently introduced design standards for new apartments.

There has been a bit of controversy, he acknowledges.

“But,” he says, “no developer I know will build anything down to the absolute minimum.

“He might do it once but if he can’t sell them he’ll never do it again.”

What’s being missed in Matt’s opinion is the fact that, as he says, “what these regulations have done is to bring flexibility into the equation again”.

“You can have a 75sq. m or 80sq. m apartment if you want, or a smaller one – but realistically, for most people, they want to have a range of sizes – not a one-size-fits-all.

“What they have done is to introduce a bit of flexibility. That is going to be helpful.

“These things are evolving and if it is demonstrated that there are anomalies then I am quite sure they will look at them and the thing is they can look at them now and can introduce them.

“They have the power to do it now with the new guidelines.”

Looking forward, Matt says the demand is there but there are a lot of issues that have to be dealt with.

“We are in an awkward situation,” he says. “Rents are sky high. That means people’s ability to save is limited.

“There are new people coming onto the market all the time and if this goes on we are going to have a real crisis on our hands in my opinion.

“I know the Government are making serious efforts to deal with social housing.

“They have to get production moving again in the normal housing market for home buyers – and rents need to become more affordable in the private rented sector so that people who would prefer to be renting on their own or buying can find a place at a reasonable cost.

“I think one of the things they should be looking at is the cost of money and availability of finance.

“The government should look at a scheme where they make a certain amount of money available for ordinary builders/small builders who can’t get money anywhere else to go and borrow at reasonable rates.” C

Projected demand

The Dublin area was further analysed in Housing Supply Capacity in Dublin’s Urban Settlements 2014-2018. (Society of Chartered Surveyors Ireland).

This looked at demographic changes as well as supply side issues. The minimum housing unit requirements up to 2018 in the various local authorities is:

Taking account of levels of existing housing stock and historic trends in housing supply, the National Statement of Housing Supply and Demand 2014 and Outlook for 2015-2017 published by the Housing Agency in July 2015, outlined that approximately 80,000 residential units would be required to meet expected population growth to 2018 in our main urban centres.

The Greater Dublin Area, regions of Dublin and the Mid-East account for almost half of the units of identified demand.

The total number of additional units required between 2014 and 2018 is 80,368 (Source: Future Analytics Consultants as quoted by Housing Agency.)

32 CONSTRUCTION January/February 2016

Dublin City Council 13,751 Fingal County Council 9,617 Dun Laoghaire Rathdown 3,299 South Dublin 8,766 Total 35,433 (Source: Society of Chartered Surveyors Ireland 2014.) C

housing Speaking to The Irish Times on the same day as the CIF breakfast briefing, well-known Cork developer Michael O’Flynn criticised the mortgage lending caps.

Frank Ryan, Director with DTZ Sherry Fitzgerald and CIF Director General Tom Parlon after the breakfast briefing

Housing crisis across all sectors in Cork At a recent breakfast briefing in Cork organised by CIF Southern Region, Frank Ryan, Director with DTZ Sherry Fitzgerald, gave a presentation about the viability of new residential construction in Cork.

He set out his stall by saying the sales price for a new three-bed semi in Cork is €250 per sq ft. “Anything below that means you’re a busy fool,” he told the large gathering of CIF members and industry professionals.

He said the equivalent price for an apartment is €300 per sq ft, “which doesn’t include cost of underground car parking”.

Having worked in Cork for over 30 years, Frank said he had never seen anything like the current situation.

“We have companies like Apple phoning us, a commercial real estate office, complaining about the lack of housing for its staff.”

The issue is not zoning, it’s planning, he told the briefing. “There’s no joined up approach. Plus, the customer has changed,

they demand quality without compromise.

“Compliance is the issue that will haunt this room,” he added.

Sales price

Drilling down to price, Frank said the minimum selling price for a typical threebed semi-d (1,100sq ft) is €270,000. This includes VAT, price of land and profit.

According to the ESRI figures, Cork requires 2,500 new residential units every year. Last year just 1,100 were constructed, sais Frank. “In my opinion we need more than 2,500 per year.”

One-off houses account for 60% of that figure, which means that what Frank refers to as ‘production housing’ is at critically low level. Research shows that 70% of potential purchasers want a three-bed semi.

CIF Director for Housing, Hubert Fitzpatrick chats with Tim Lucey, Chief Executive, Cork County Council

He said that the cap “make no sense” in Dublin, where house prices are higher than the national average. “It needs to be €300,000 in Dublin,” he said. At present first time buyers have to save 10% of a mortgage up to €220,000, with many in the industry, like O’Flynn, saying this is unrealistic.

The income cap also came in for criticism. “In the UK the multiplier is 4½ times– why should it be 3½ in Ireland? In the UK they don’t have VAT, while we have 13.5 per cent. We have to look at the cost side and the time it takes to get planning.”

“It’s depressing how badly our sector was thought of and wrongly blamed for. I’ve fought for the industry because I believe in it. We have an enormous contribution to make but there’s almost a view that we shouldn’t be in the room to discuss the recovery strategies. There will no be recovery without developers.” C

“The market is not working,” he said.

“Site cost is what I call an uncertain cost variable,” he added. “Any movement in that will have averse effect. If price goes above €300k the first time market is priced out.”

The key to selling houses is to enhance value, said Frank. “You need a quality finish, excellent marketing and correct compliance. You also need to build a showhouse.”

Removing customers’ nervousness about housing is the main aim.

Frank went on to say infrastructural deficits is a huge issue. “Councils need ot remove uncertainty. “We need a timeline for infrastructure projects that developers can work from.”

For apartments Frank says the sales price for 800sq ft unit is €230,000 with a net sale of €200,000. “There is a new market for single owners of an apartment block,” he said.

In wrapping up he said Cork needed 10,000 social housing units while development land has experienced a 20% price increase over the past year.

“Why is that?” he asked. “The market is clearly expecting something to happen.” C

skillnet

CIF launches Construction SME Skillnet

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he roll out of these new training programmes will initially be in the areas of health and safety, building regulations, and lean construction techniques.

Speaking at the launch of the Construction SME Skillnet, Tom Parlon, CIF Director General acknowledged the gap in skills that is felt across the industry presently.

“As our industry grows, it is important that our workers are trained to the highest of global safety and quality standards,” he said. “The Construction SME Skillnet is all about engaging with employers, particularly smaller businesses, and encouraging investment in training for their employees, because without investment in skills, the gap will continue to increase in the long term. As the network progresses, we aim to provide a wider array of training options that will

As the skills shortage within the construction industry increases, the CIF and Skillnets – a Department of Education initiative – have joined forces to develop a programme aimed specifically at SMEs, that will deliver more industry focused training where the need is greatest, writes Robert Butler, CIF Head of Training. help SMEs to upskill their workers, and ultimately expand their businesses.”

The Construction SME Skillnet secured its funding in September of last year and is now in its first year of operation. By working in partnership, the CIF and Skillnets can provide significant opportunities to CIF members.

Tracey Donnery, Senior Programme Manager with Skillnets said: “Skillnets is delighted to work with the CIF in supporting the development of the Construction Skillnet, which will enable employers within this sector to access

Tracey Donnery, Skillnet Ireland, George Hennessy Chief Operation Officer CIF (Skillnet Board Member) and Noreen Fitzpatrick, Skillnet Ireland

relevant and quality training. Investing in skills development for current and future skills needs is critical for businesses to grow and expand. Today’s launch provides a great example of how the network model can deliver enterprise-led skills solutions to grow Ireland’s economic recovery into the future”.

The Construction Skillnet is funded by member companies and the Training Networks Programme, an initiative of Skillnets funded from the National Training Fund through the Department of Education and Skills. C

Robert Butler, Head of Learning & Development CIF (Skillnet Manager) and Philip Doyle, Director, Denphi Construction Ltd.

John Hilliard (CSME Skillnet Chairperson), Director, Fealesol Ltd. And Jay Sheahan, Managing Director, Substruck Ltd.

Robert Doyle, Director, Robert Doyle Eco Build Ltd with Tara Flynn, Director, Paul Flynn Construction Ltd. And Tom Parlon, CIF Director General

Tom Parlon, Tracey Donnery, Skillnet Ireland and Noreen Fitzpatrick, Skillnet Ireland with Robert Butler

January/February 2016 CONSTRUCTION 35

AECOM predicts bullish double-digit growth for construction sector in 2016

The AECOM Annual Review of the Construction Industry is predicting that Irish construction will grow by double digits again in 2016. John O’Regan, AECOM’s Head of Programme, Cost and Consultancy, Island of Ireland says that construction industry activity grew by 14% in 2015.

38 CONSTRUCTION January/February 2016

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‘‘W

aecom e saw the construction industry gradually return to growth in 2014 after the dramatic drop between 20072011 and this growth pattern has continued in 2015. We would estimate the value of construction output to have been circa €12.25 billion in 2015, a 14% rise on 2014, and we anticipate double-digit growth this year.”

John O’Regan says that confidence has returned to the construction sector.

“However, we are continuing to issue a note of caution that the upturn has been concentrated in the greater Dublin area. Notwithstanding this, we have seen the beginnings of the recovery in the regions with an increase in the number of enquiries, along with previously shelved projects being revisited.”

Turning to the issue of tender prices, he says AECOM are predicting a 6% construction price rise nationally.

“2015 saw tender price increases of circa 5% which – if exceeded or repeated over a number of years – would reduce the competitive advantage that Irish construction has enjoyed over recent years. Looking forward to 2016, we anticipate that tender price inflation will continue at an average of circa 6%. The regions should have inflation of circa 5% whereas the greater Dublin area will experience tender prices rises of the order of 6%-8%.”

AECOM has started to see some stress fractures appear in segments of the construction industry during the second half of 2015 that will continue into 2016. In particular a number of capacity concerns have arisen in the Dublin market which in turn can have knock-on effect nationally.

“In Dublin and across the island those looking at procuring projects in 2016 can anticipate major shortages of resources in certain areas as well as rising tender prices.

Many specialist contractors in areas such as facades, steel and concrete already have their order books full well into 2016 arising from the increase in commercial and large FDI schemes.

“We would also have capacity concerns heading into 2016 in respect of main contracting– and specifically in respect of high-value fast-track projects generally and highly serviced €100 million+ projects. The primary reason for this concern would be the limited number of entities considered capable of delivering on projects of this nature. During the downturn a considerable number of the larger organisations went out of business and others scaled back considerably, thus the willingness and ability to ramp up will undoubtedly be a factor in the coming years.

“For the survivors of the worst recession in living memory, the appetite for renewed growth is certainly present but the approach to risk will be different. The capacity of tier one Irish contractors to deliver the likely number of large projects is going to be limited.

It is unlikely that large international contractors will be attracted to the Irish market, particularly with the vibrancy of the London market.

“The short term solution to capacity issues will be dependent on returning emigrants, a new wave of European emigrants and tier two Irish contractors increasing their resources and output. Successful Northern Ireland contractors who have expanded into Scotland and the rest of the UK may also consider redirecting some of their efforts back to Ireland.”

John O‘Regan concluded by explaining that there

is a variation in the performance of the different construction sectors as well as in the regions: ·

·

·

·

·

The residential sector would still appear to be in a dysfunctional state with the number of 2015 completions estimated to be circa 12,000 units.

This was adversely affected by the uncertainty of the second half of the year and we expect the recent policy measures to partially address this issue and provide a kick start to some residential development. However, given the current Central Bank restrictions, the bulk of residential development will in the starter home market.

In the commercial sector, there is a considerable degree of construction activity in the Dublin office market – city centre Grade A accommodation remains in short supply. Outside of Dublin, new build activity is sluggish although a gradual take-up of existing stock will lead to development over time.

With exports continuing to grow strongly and a steady stream of new announcements from IDA Ireland, the prospects for construction activity in the industrial sector are strong.

Notwithstanding the improved consumer confidence, the challenging financial environment makes capital investment decisions more difficult.

Thus, while we would expect further growth in retail in 2016, it will remain considerably less than a decade ago.

In relation to tourism, sport and culture, Dublin features strongly with hotel room rates increasing as the bed shortage intensifies. As such there will be an appetite to build hotels or extensions in the Dublin market. Regionally, the focus is more likely to continue to be transactional.

‘‘

In Dublin and across the island those looking at procuring projects in 2016 can anticipate major shortages of resources in certain areas as well as rising tender prices.

’’

January/February 2016 CONSTRUCTION 39

construction waste Pictured at the CDW Breakfast Briefing are (back row l-r): Una Fitzgerald, Associate in the Waste and Resource Management Sector of RPS, Olivier Gaillot, Chartered Waste Manager and Technical Director with RPS and Warren Phelan,Technical Director and Chartered Waste Manager with RPS. Pictured sitting between CIF Director General Tom Parlon and CIF Director Main Contracting Martin Lang is RPS Director PJ Rudden

As landfills close where now for construction demolition waste?

A recent CIF breakfast briefing heard that disposing of construction demolition waste (CDW) will become a huge issue for the construction sector over the coming years.

Brian Foley reports.

A

landfill sites in the country to just five.” s the construction sector ramps After 2017, when the Poolbeg Incinerator up production there will be a is built, lack of landfill sites in the capital consequent increase in waste won’t be a major cause for concern as the material produced. Back in new facility will be able to cope.

2007, at the peak of the last However, it’s clear that landfill as a waste construction boom, over 18m solution is on the way out. For the regions, tonnes of construction waste the remaining landfill sites was produced. To put that are far from major centres in context every house and The Construction of population and trade. So business in Ireland produced Demolition Waste what’s the solution? just 2m tonnes of waste that Council established With major infrastructure year. by the CIF over ten projects over the next five Consultants RPS argue the years ago needs to be to ten years set to create construction sector is facing a revisited and it terms huge volumes of waste – very different waste landscape of reference enhanced, Children’s Hospital, Metro as it heads into a growth says PJ. He also cites North, Grangegorman, road phase. the recent publication upgrades – the construction Speaking to Construction of three regional waste sector needs to find RPS Director PJ Rudden says management plans as alternatives. there is a dramatic difference the precursor to making As expected, our European between then and now. reusing CDW a priority neighbours have been “Ten years ago we had no for local authorities. reusing construction waste shortage of landfill sites for CDW Council – set up by for over 20 years. According disposal of CDW,” he says.

CIF needs to be revisited to PJ Denmark recycles most “But with a change in policy and strengthened in of its construction waste, we’ve gone from a total of 30 what they do

The Poolbeg Incinerator will provide heat for 80,000 homes electricity for 50,000 houses

selling it on. “Even the dust,” he says.

“We need to develop a CDW circular economy,” he explains. “The industry faces a huge challenge but with challenges comes opportunity.

PJ says over 98% of CDW can be recycled: “why not heat hospitals in Dublin instead of Stockhom,” he asks, referring to Ireland’s current model of exporting waste.

Europeans are making a business from CDW and it’s possible for the Irish construction sector to so something similar.

“There are solutions, the construction sector could reinvent itself in terms of sustainability,” he says. “Larger contractors could come together to form an ancillary operation, which would improve their green building credentials at the same time.”

With district heating installed from The Point to Heuston Station the momentum is towards a greener Dublin. Taking advantage of CDW would play into that new scenario.

“This can be a good news story provided the industry sets itself up to deal with it.

It’s an opportunity to reinvent ourselves,” concludes PJ. C

January/February 2016 CONSTRUCTION 41

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tax

Government choices – are they fair and taxing the wealthy?

The 2015 Finance Bill was signed on 9 December 2015, and the main changes were noticed in January pay packets. Gabriel MacGrath, Head of Finance with the CIF, outlines some other issues contained within the Bill.

I

n all budgets, what is not announced is also important, as it leaves prior increases or decisions to carry into the next year.

Capital Gains Tax (CGT)

Making gains on assets like shares has a capital gains tax rate of 33% (in 2008: 20%). The rate has suffered an increase of 65% since 2008. The Government claim they wish to tax the wealthy by this increase. There was no increase in the personal exemption (remains at €1,270 and not transferable between spouses) to give some break for the regular tax payer who might make a chargeable gain of say €5,000 and thus focus more on large gains made by the wealthy. Ironically the very wealthy typically change their residence status and pay no capital gains tax. As it stands now the 65% increase in the rate just taxes everybody, small and large gains. The Government could have easily increased the personal exemption as an alternative measure to exclude smaller gains. A useful strategy is to hold any shareholding in joint names with your spouse, to avail of two exemptions limits on disposal. This can make a difference on small disposals.

Another subtle change happened in 2002 when after 28 years, indexation for CGT purposes ceased. By abolishing this multiplier, the inflation factor is ignored and you pay more tax. This is an indirect way of increasing the tax take without hitting the headlines.

Inheritance Tax or Capital Acquisition Tax (CAT)

This tax is payable if you receive an inheritance. The rules have changed a lot over the years and the categorisation of the inheritances also had various amendments, in addition to mixing the aggregation rules. Keeping it simple, you get a tax free limit (also called the threshold limit) when you receive an inheritance from your parents, your uncle / aunt or a 3rd party. There is no tax payable on inheritances between spouses.

What is interesting is that the threshold limit of group A was increased in the last budget by €55,000 to €280,000 for inheritances from parents. A welcome change on the face

of it, but in my opinion, this is another indirect tax, as the Government falls well short of current market conditions.

The Government gave back €55,000 from the €318,000 taken away in prior years. Looking at market prices today, a typical house continues to be subject to CAT, where previously they were tax free. The threshold should be €477,000[1] (currently €280,000) to keep in line with market pricing.

In 2009 the threshold was €543,000 and amounts received after this level would be taxed at 22%. The argument of location of your house (urban versus rural) will be argued again on who pays CAT. This misses the point completely.

Inheriting the family house should not have a tax bill.

Inheriting a house of say €350,000 in 2009 resulted in paying no CAT. Today even with the favourable budget adjustment, you pay CAT of €23,100 [(€350k-€280k) x 33%].

This is a significant tax to pay and if I recall there was no protest in Kildare Street. There were big protests and antiGovernment protests for the €100 household charge or local property tax (LPT), running at about €650 p.a.

Employee allowance

PAYE employees have limited expenses which can be deductible of their income tax. Being self-employed expenses can be claimed under the rule “wholly and exclusively”.

Expenses for employees must also be “necessary”, which increases the limitation.

Well the good news and perhaps it’s not widely known, is that the Revenue have allowed expenses against employment income of up to €127 (100 punts). While not a large amount, it does add up over time. A couple with two salary incomes save income tax and PRSI of up to €111.76 p.a. Ironically this saving is more than the €100 household charge. Remember you can claim the last 4 years. Now that’s worth thinking about! C This article is of an editorial nature and should not be construed as tax advice. It is recommended you take the appropriate professional advice on financial matters.

[1] Based on the November 2015 CSO National Property Price Index

January/February 2016 CONSTRUCTION 43

pensions

Are you protected against Illness?

When I talk to people about pensions, I often talk about longevity - the fact that people are living longer and the increased need for income in retirement, writes Susan O’Mara.

F

rom age 65, men can expect to live an average of 23.8 years, while women can look forward to an average of 25.3 years.

While this has an impact on saving for your retirement, it also means that during your working life, being diagnosed with a serious illness is a greater risk to you than death. The life assurance industry claims experience tells us that you are likelier to suffer from cancer, a heart attack or a stroke before you retire than you are to die before age 65.

While most people have some form of life cover in place, through mortgage protection and as members of company life assurance schemes most are unfortunately lacking in financial protection in the event of a serious illness. There are protection options available to you. One is income protection, a policy that will pay out a portion of your salary while you are sick. Another solution is serious illness cover, also known as specified illness cover.

‘‘

You should establish what exactly you would do if you were hit by illness

’’

Why consider serious illness cover?

It pays out a cash lump sum if you are diagnosed with an illness from one of the many serious illnesses covered by the plan – illnesses such as cancer, a heart attack, or a stroke (subject to policy terms and conditions). This cash lump sum would help remove some of the financial and emotional stress associated with a serious illness, affording you the opportunity to take the time off work, to help pay for specialist medical treatment or even to help cover day to-day household bills such as childcare. It

may also be used to pay off debts while you are recovering. If you are diagnosed with a serious illness, you have enough to worry about. Making ends meet should be the least of your concerns.

What should you do?

You should establish what exactly you would do if you were hit by illness – Do you have some sort of cover already in place and is it appropriate? Talk to your financial advisor if you are not sure what you have.

If you don’t have any cover in place, what level of savings do you have in place and how long would these savings last if you were unable to work?

If you aren’t happy with the answer to these questions then Serious Illness cover may be a suitable option for you. The cost of this cover varies by provider and by your age, but you should be able to find a level of cover that suits your needs. Talk to you financial advisor today. C For further information regarding saving for your retirement please contact Susan O’Mara at: susan@milestoneadvisory.ie Phone: 014068020 Milestone Advisory Limited t/a Milestone Advisory is regulated by the Central Bank of Ireland.

January/February 2016 CONSTRUCTION 45

peter mcverry trust LEFT: The CIF Pension Administration Service CPAS hosted a ‘Thank You’ event on Wednesday 16th December for everyone who worked and contributed to the project.

Pictured is CIF Director General Tom Parlon and site foreman Gary Elliott

CIF members complete housing project in record time The CIF Hogan Court Project for Peter McVerry Trust was completed and handed over to the charity on Friday 18th December.

T

he idea for the project originated with CIF President Michael Stone, who felt it was important the construction industry “gave something back” to the community.

With the help of CIF Director Sean Downey, CIF member firms signed up for the challenge – to have the 12 flats ready in time for Christmas.

The flats were in a terrible state of disrepair, some had been set on fire and all were uninhabitable.

Gary Elliott from Walls Construction was appointed site foreman. Site clearance commenced on 5th October with actual construction starting one week later.

Everything from mechanical and electrical works, plumbing, painting, carpentry, tiling , landscaping, paving, supply furniture and white goods was either provided or sourced by CIF members and supporters.

Over 10,500 man hours were logged during the project by 67 CIF member forms and supporting companies.

“It was a project completed by multiple trades working together to have people in new homes by Christmas,” says Sean Downey.

“Hogan Court was completed on time and to the highest standards, which is testament to our members’ commitment.”

Full list of CIF members and supporting companies: Walls Construction Ltd Ecomod (site huts) Greywood Joinery (Hoarding installation) J W Hire (Teleporter) About Safety Ltd. MCR Stewart Noonan Mercury eTAG Barnmore Demolition Leo Lynch Clancy Construction Shay Murtagh Kilsaran Anthony Neville Lawlor Landscapes Clonmel Enterprises Roadstone

Highway Markings Dunwoody and Dobson Leo Lynch BAM Contractors MKN Property Group Munster Joinery Essexford Joinery John Paul Imtech Suir Designer Group Dornan Core drilling services Shay O’Neill Parkwest fireproofing Grafton Group Winthrop Engineering Ltd Kellihers Davenham Schneider King & Moffatt Patrick Lynch Electrical C J Ryder Lawlor Sean Ahern Electrical Kedington Jones Engineering Castle Ceilings Saint Gobain (Gyproc and Isover) ABM Construction Baker Insulations ABM Construction Kingdom Ceilings SF Plastering

Carnehill Contracting Crean Mosaics BTW Tilestyle PFL DD O’Brien John Sisk & Son (Holdings)Ltd. QK kitchens Castlethorn Developments SIAC STS Group MPDI Members Thomas O’Malley Mark Dilloughery (Cooney Decorating) Pat McGovern Damien Duff Kelly & Thompson Fleetwood BRFS Noonan Services Flynn Management Contractors Gas Networks Ireland PrePayPower.ie ACOL CPAS Keymore Construction BRFS Custom Crew ACOL GPT Hire

January/February 2016 CONSTRUCTION 47

Practical health screening in your workplace

2015 marked another challenging year for the Construction Workers Health Trust. Despite a further reduction in income the Trust still provided screening to just under 5,000 workers on site throughout the country.

F

or those of you who don’t know much about us, the Trust is a registered charity managed by a board of Trustees drawn from the various trade unions. That said, there is no industrial relations at work here, this is simply about good health.

Traditionally workers who were members of the pension scheme were also enrolled in the Trust and our funding rose and fell with the fortunes of the industry. However all that has now changed. Of the approx. 20,000 workers currently paying into the Pension scheme (CWPS), roughly half are also contributing to the Health Trust. This leaves a shortfall in funding that the Trust is currently meeting from its accumulated reserves; a situation which is unsustainable.

Employers may recall the confusion some years back when invoices from the Pension Scheme separated the constituent parts of the weekly contribution and pointed out that while the pension

48 CONSTRUCTION January/February 2016

and sick pay elements were at that time mandatory, other parts of the payment including Health Trust and Benevolent Fund were in fact voluntary. This resulted in some firms reducing their weekly payment to pension only, although the additional components were actually worker only deductions with no employer contribution.

The striking down of the Registered Employment Agreement by the Supreme Court has further exacerbated matters to the point where the future of the Health Trust may now be in jeopardy.

Despite this the Board remains committed to its remaining membership and this year we plan to launch an online nutritional advisory service. Members will soon have the facility of contacting our own online nutritionist who will advise on matters such as food supplements and the dietary requirements best suited to people managing with diabetes, celiac disease,

CWHT

asthma, weight management and a wide range of everyday conditions.

This service is not subsidized by any product manufacturer and can therefore give honest and impartial advice to those who wish to avail of it.

For 2016 all workers visiting our on-site nurses will continue to receive a thorough medical which includes tests for blood pressure, cholesterol, BMI, diabetes and lung function.

The diabetes test is particularly important. Diabetes and obesity are the two biggest problems facing the population at present and construction workers are a particularly vulnerable group. It is estimated that as many as 250,000 Irish people may have undiagnosed diabetes, and will only become aware of it when they present to their doctors with some other complaint.

Firms who wish to avail of our services can enroll their workers directly with us without the need to enroll with the Pension Scheme. The cost is a very modest €75 per worker per year and companies can decide themselves how to apportion the cost.

In return your employees will be entitled to a comprehensive medical carried out in the workplace every 2 years, at a time of your choosing, and will also have online access to our nutritional advisory service.

To get the ball rolling simply contact our office for an on-line application form and we’ll do the rest.

When you consider how much your company spends on Health & Safety, what with hard hats and high-visibility jackets, shouldn’t you be spending some of it on your own health?

Construction Workers Health Trust 130/132 Francis Street, Dublin 8 Tel: +353-1-7093070 Fax: +353-1-4544937 Email: info@cwht.ie Web: www.cwht.ie

January/February 2016 CONSTRUCTION 49

advice

Tackling debt the sensible way

When struggling with debt it can feel like there is no escape. The Competition and Consumer Protection Commission (CCPC) has put together some steps to help you get a clear picture of your finances and tackle the issue.

Face up to debt

List all of the debt you have in order of priority. For instance, start with your mortgage or rent, any ongoing medical costs or utility bills you have. It is important to pay these off first as you could be at risk of losing your home, being disconnected from your electricity or gas etc if these are not paid.

Next look at other debts you have such as credit card debt, overdrafts and personal loans. These debts should be listed in order of the highest annual percentage rates (APR).

The APR is the annual rate of interest you will be charged on a loan. The highest APR loans should be paid after your mortgage or rent, utility bills and medical costs. If you’re unsure of the figures look back at your bank statements, credit card statement, bills and receipts.

If you are clearing credit card debt, use our online calculator (www.consumerhelp.ie) to see how increasing your monthly repayments will help pay off the debt faster.

Set out a budget

This involves looking at the money you have coming in and going out across a period of time. This can be over the course of an entire year, a month or a week, whichever is easier for you. Taking a little time to look at how and when you spend your money and where you can possibly make changes will put you in a good position to manage your money on a weekly or monthly basis. Use the CCPC’s spending diary and budget planner on www.consumerhelp. ie to help you get started.

Write down all the money you have coming in over your chosen time period. Make sure you are aware of all your entitlements. Depending on your income, circumstances and mortgage you may be eligible for tax relief etc. Check out the websites of Revenue, Department of Family and Social Affairs and Citizens Information.

Then take a look at your outgoings. After reviewing your financial situation you should be in a position to see what money you have leftover. Consider putting this money towards your repayments, starting with the higher-interest loans first.

Debt Advice

If you are considering using a commercial debt management company to negotiate with your lenders make sure you know in advance what, if anything, you will be charged for the service. Any additional fees and interest rates may not

50 CONSTRUCTION January/February 2016

make things better for you.

All debt management companies are required to be regulated by the Central Bank of Ireland and must have a complaints handling procedure. Unresolved complaints may be referred by you to the Financial Services Ombudsman.

Remember you can get free, independent and confidential advice from the Money Advice and Budgeting Service (MABS).

Your Credit Rating

Remember that getting into debt and missing repayments can effect your credit rating.

Most lenders use a credit reference agency, the Irish Credit Bureau (ICB), to check your credit history and see your track record in repaying loans.

What to do if you have serious debt problems?

The most important thing to remember is that there is help available to you.

Do not ignore the problem. The first thing you should do is talk to your lender or financial provider and explain your situation. They may be able to put a plan in place that will make your repayments more manageable.

If you are really struggling to repay your debts and cannot see yourself being able to in the next few years you can contact the Insolvency Service of Ireland (ISI). The ISI is an independent state body and they aim to help sort out personal debt problems and restore people from insolvency to solvency in a fair, transparent and equitable way. Their website, www.backontrack.ie, has information to help you get back on track financially, including information on qualified financial advisors who can help protect you from your creditors as well as tailored information for your personal situation. You can telephone the ISI helpline on 0761 06 4200.

As mentioned you can also contact the Money Advice and Budgeting Service (MABS) which is funded by the Citizens Information Board and is a free, confidential and independent service for people in debt or in danger of getting into debt.

To get more advice on managing your money check out the Competition and Consumer Protection’s website www. consumerhelp.ie.

national skills awards

Recognising construction talent at National Skills

F

or over 60 years the National Skills Competition has tested every aspect of the skills and workmanship of apprentices, in a high-pressure environment. The winners have the honour of representing Ireland and their respective trades in what has been dubbed ‘Olympics for tradespeople’ - the

prestigious WorldSkills.

The National Skills Competition is organised and coordinated by IrelandSkills on behalf of the Department of the Education and Skills. The 43rd WorldSkills competition was held in Sao Paulo, Brazil from 12th15th August 2015.

Team Ireland won two gold medals and eight medallions for

excellence and the team finished in 11th position out of 59 countries. In 2017, the 44th WorldSkills competition will be held in Abu Dhabi, UAE, and competitors will be selected from the 2016 and 2017 National Skills competition.

At recent award ceremonies in Dublin and Cork the best of Irish apprentices celebrated their awards.

Ray English, IrelandSkills, National Coordination Group presenting the Silver Medal Award 2014/2015 to Shane Rogers from Naul Co Dublin for his skill in Carpentry

Ray English, IrelandSkills, National Coordination Group presenting the Silver Medal Award 2014/2015 to Keith Ryan from Kilmallock Co Limerick for his skill in Electrical Installations.

Ray English, IrelandSkills, National Coordination Group presenting the Silver Medal Award 2014/2015 to Tomas Feeley from Rockfield Co Roscommon for his skill in Painting and Decorating.

(L-R) Daniel Murphy, Carpentry Joint Winner, Bryan Wyer second place, Joinery, Dave Tracey, Cian Mulligan, Joinery winner, Edmond O’Sullivan Doherty, Carpentry joint winner at the Ireland Skills National Competition 2016 award ceremony in CIT Cork Sisk Training Manager Dave Tracey with Bryan Wyer at the Cork National Skills event

Minister for Education and Skills Jan O’Sullivan TD presenting the Silver Medal Award 2014/2015 at the Gresham Hotel, Dublin to Jonathan Flynn from Ballina Co Mayo for his skill in Plumbing

Ray English, IrelandSkills, National Coordination Group presenting the Silver Medal Award 2014/2015 to Ciaran Tyrell from Blessington Co Wicklow for his skill in Bricklaying

facilities management

There’s always a better way - FM Ireland Product/ People/Practices Facilities Management Ireland (FM Ireland) is back again, at the RDS, Dublin on the 8-9th March. It is a unique opportunity for all those involved and responsible for creating and maintaining retail, industrial, commercial, government buildings and facilities, to see the latest products, services and solution providers that can be of direct assistance and benefit to achieving these aims.

• Herbert Mulligan, Editor, Health & Safety Review • Brian Bourke, Institution of Fire Engineers • David O’Reilly, Association of Specialist Fire Prevention, Ireland

The conference- Because knowledge is king

The conference programme benefits from the active involvement of the FM Ireland’s supporting organisations that are providing industry experts who will deliver papers and case studies of direct relevance to attendees.

Building off the success of last years event, visitors will have access to leading suppliers and service providers showcasing the latest in new ideas, new technologies and new solutions that can improve productivity and increase your return on investment.

Whether you are looking for engineering services to comply with the new regulations on refrigerants, the latest in energy management and energy solutions, cleaning technology, asset management, security or outsourcing solutions for parts or all of your infrastructural needs FM Ireland, which incorporates Health & Safety and Fire Safety Ireland is the event for you.

Maintaining the infrastructure of a business is estimated as the second highest cost for any organisation and with profit margins still being squeezed a euro saved is more valuable than ever. The challenge is how best to achieve this for your organisation.

Knowing which specialists to call in, which products to use, who to take on as a partner or contractor is key. Whilst you may not be getting hands-on yourself, understanding what’s involved so you can make informed judgements on quality, service and costeffectiveness. Whether you are looking to improve your aspects linked to health & safety, fire safety, best practice in fall and arrest procedure or sourcing new suppliers or new products, at FM Ireland, you can see everyone and everything you need to put your strategies into effect and make the decisions that lead to greater efficiency, return on investment and value for money.

FM Ireland exhibitionmaking things better

The largest of its kind in Ireland, the FREE exhibition brings together suppliers, consultants and service providers. It’s your chance to research products and services, make contacts and find solutions to practical management problems. You know things can always be done better: here’s where you’ll find the people, products and practices to make it happen.

You need to know….

Facilities Management Ireland, 8th and 9th March 2016, RDS, Dublin To view the full conference programme visit: www.fmireland.com assist. Don’t Miss out! Free to attend. Register now at www.fmireland.com

Areas addressed will include: • • • • • • • • • • •

Outsourcing Maintenance Fire Safety Building Services Security Energy and Sustainability Health & Safety Property Management Soft FM Hard FM Occupational Health

Confirmed Speakers Include:

Benefits of attending

Now more than ever, you need to be sure you’re getting the maximum return from every euro and minute available to you. By putting all the products, people and knowledge you need in one place, FM Ireland offers you the best possible return on your investment. So if you only have the time and budget to attend one event this year, make it this one.

Don’t Miss out! Register Now!

• Niav O’Higgins, Partner, Arthur Cox Solicitors • Paul Foran, MD, OSHH

Whilst attendance to FM Ireland (Inc. Health and Safety Ireland and Fire and Safety Ireland) is free, we recommend that you register online.

Visit www.fmireland.com where you can see the latest information.

Alternatively you can contact the organisers on +44 1892 518877 or email fmireland@stepex.com. C

January/February 2016 CONSTRUCTION 53

CIS

Construction activity signals strong 2016

Construction activity has kicked off to a strong start in January with a high volume of planning applications and project stage movement across the sectors. As highlighted in our CIS Construction Opportunities 2016 Report, the commercial sector continues to be the most active sector in the construction industry with a large volume of projects commencing on-site.

T BAM Iridium has been awarded the contract for the €230m N25 New Ross Bypass PPP

he Capital Cinema Site in Cork city has commenced demolition works to allow for the construction of a €50m mixed-use commercial scheme. Work is also expected to commence in Q1 2016 on a new €53m events centre at Cork’s Brewery Quarter. Construction has recently started on an €18m office development at the former Exchange facility at the IFSC. Plans have also been recently lodged by IPUT for a €24 million office scheme at Wilton Terrace in Dublin 2. South of Dublin city, in Sandyford, plans were approved for a €37m Office Development at the South County Business Park. There are also plans in the pipeline for a €29m office development at Innovation House beside Microsoft’s current HQ in this area.

The residential sector has entered 2016 with some promising developments planned over the next 12 months. The €85m Charlemont Regeneration Development went on-site, and was the only PPP housing scheme to survive the economic downturn.

Plans were recently submitted for a €26m residential development in Saggart, Co. Dublin.

Construction activity in the education and medical sectors will continued to grow in 2016. January saw the commencement of a €7m extension and refurbishment to Ballyhaunis School in Mayo and a €6m school for Scoil Bhride National School in Laois.

Enabling works have also commenced on two school projects contained in the Schools Bundle 5 Programme, Loreto Secondary School, Wexford and the new educational campus in Mortarstown, Carlow. Construction costs for this Bundle are estimated in the region of €55m. Moving to Dublin, the enabling contractor has been appointed to allow for the construction of the €70m Business School for Trinity College Dublin. Enabling works are hoped to commence in February 2016.

In the medical sector, Work has commenced on the €6m psychiatric unit fit-out and link bridge at Beaumont Hospital and preliminary site works are underway on a €5.7m nursing home extension at Tivoli Terrace East, Dublin.

Looking to the civil sector, BAM has commenced work on

54 CONSTRUCTION January/February 2016

the €135m PPP Court Schemes. This will see new courthouse buildings in Drogheda, Letterkenny, Limerick and Wexford and refurbishment and extension works carried out to existing courthouses in Cork, Mullingar and Waterford. All are due for completion by December 2017.

The consortium BAM Iridium has been awarded the contract for the €230m N25 New Ross Bypass PPP. When completed, this three tower extradosed bridge will be the longest of its kind in the world. It’s hopeful that the bypass will be open to vehicles in quarter four of 2018. In January, The Irish Government also announced its €298m national investment programme for 2016 for the maintenance of regional and local roads.

In the utilities sector, Irish Water has invested significent capital in Donegal’s water infrastructure. This includes the €22m upgrade of the Letterkenny Regional Water Supply Scheme. This scheme is currently being tendered for.

Construction is scheduled to begin in Q1 2017 and completed by the end of 2018. Veolia Water Ireland has recently been awarded the main contract for the €18.4m Donegal Sewerages Schemes. This scheme consists of the construction of new waste water treatment plants at Killybegs, Bundoran and Glencolumbkille and the upgrade/extension of the existing waste water treatment facility at Convoy. It’s hopeful that work will commence in spring 2016.

January saw a major announcement in the Industrial sector with confirmation that Facebook’s €200 million data centre in Clonee, Co. Meath has commenced on-site. Mace Group UK will act as the main contractor to deliver this project.

Microsoft is set to spend in excess of €280m on two new data centres at Grange Castle Business Park in Clondalkin, West Dublin, where it opened its first data centre in 2009. South Dublin County Council has recently approved the planning application for this development. Work commenced in January on phase two of the €40m production facility development for Combilift Limited in Tullyhirm, Co. Monaghan. Work also commenced on a €12m distillery and visitor’s centre at Slane Castle, Co. Meath.

Access full details on these and thousands of other key and major construction projects on our online database. Sign up to our recently launched CIS FREE subscription services, CIS FREE where you can login to view 5 projects every week, for as long as you like! C *Note* This CIS data was accurate on 29th January 2016.

Visit www.cisireland.com for the latest project updates on these schemes

CIF training and education programmes for February to April 2016

CIF Training & Development

Course Title/Venue Course Code

Start Date

End Date

Course times

CIF QQI Project Supervisor Construction Stage PSCS 11th February 25th February Radisson Hotel 2712 Athlone

CIF IOSH Project Supervisor Design Process PSDP 18th February 19th February CIF Construction House, 2716 Canal Road, Dublin 6

CIF Core Safety Management Programme Renewal/CPD CSMP 12th February 12th February 2787 Half day Roscommon

CIF Core Safety Management Programme Renewal/CPD CSMP 19th February 19th February CIF Construction House 2717 Half day Dublin 6

CIF QQI Building Control Course BCC 3rd March 20th May CIF Construction House, 2738 Little Island Cork

08.30am – 17.00pm

CSMP 25th February 25th February CIF Core Safety Management Programme Renewal/CPD Radisson Blu 2741 Half day Limerick

CIF Core Safety Management Programme Renewal/CPD CSMP 26th February 26th February 2720 Half day CIF Construction Hse Little Island Cork

CIF IOSH Managing Safety in Construction MSIC 1st March 5th April 2721 Construction House, Little Island Cork

CIF QQI Project Supervisor Construction Stage, PSCS 2nd March 16th March CIF Construction House, 2723 Canal Road, Dublin 6

Administration of Safety & Health at Work ASH 3rd March 10th March CIF Construction House, 2724 Canal Road, Dublin 6

CIF Core Safety Management Programme Renewal/CPD CSMP 4th March 4th March Castlebar Regional Training Centre 2788

CIF Core Safety Management Programme Renewal/CPD CSMP 11th March 11th March Castlebar Regional Training Centre 2789

CIF Core Safety Management Programme Renewal/CPD CSMP 11th March 11th March Clayton Hotel 2727 Galway

CIF IOSH Managing Safety in Construction MSIC 23rd March 27th April CIF Construction House, 2728 Canal Road, Dublin 6

8.30am to 13.00pm

08.30am – 17.00pm

08.30am – 13.00pm 08.30am – 12.00pm

9.30am to 4.30pm

8.30am to 13.00pm

9.30am to 4.30pm

8.30am to 17.00pm

9.30am to 16.30pm

8.30am to 13.00 8.30am to 12.30pm 8.30am to 12.30pm

9.30am to 16.30pm

January/February 2016 CONSTRUCTION 55

Be part of the register – Join CIRI today

CIRI is an official online register, supported

by Government, of competent builders, contractors, specialist sub-contractors and tradespersons who undertake to carry out construction works. Its objective is to be recognised as the primary online resource used by consumers in the public and private procurement of construction services.

To apply for registration and for further information, go to:

www.ciri.ie

INDUSTRY NEWS Minister Donohoe announces €298 million for regional and local roads Minister for Transport, Tourism and Sport, Paschal Donohoe TD, has announced details of the €298 million investment programme for 2016 for regional and local roads.

“I am announcing the 2016 general grant allocations for regional and local roads which will allow Local Authorities to plan ahead and decide their annual work programmes. In recognition of the recent flood and storm damage to regional and local roads, I will make an announcement shortly in respect of funding to help Local Authorities deal with those repairs,” said Minister Donohoe.

The Minister added that the priority in 2016 continues to be the maintenance of our existing road network and that the allocations for the key road maintenance and strengthening programmes for the Local Authorities are on a par with last year. The funding package will allow approximately 2,000 kilometres of regional and local roads to be maintained and close to 2,000 kilometres strengthened this year.

“As well as expenditure on maintenance and strengthening the 2016 investment programme also allows for a number of improvement projects to progress, including: • Improvement work on the Nangor and Adamstown roads to facilitate significant industries at Grange Castle Business Park; • Replacement of Cockhill Bridge, Buncrana in Co. Donegal; • The continuing rehabilitation of Clontarf Bridge, which is on a vital route in Cork City; • Improvement works on the Cong Road, Co. Mayo; • Cappahard Roundabout, Tulla Road, Ennis; • Float Bridge, Ballaghaderreen.

Capital Plan 2016-2021 “The transport element of the Government’s Capital Plan provides for the gradual build-up in capital funding for the road network towards the levels needed to support maintenance and improvement works. While the main focus in the initial years will be on maintenance, provision has also been made for some investment in targeted improvement schemes. In 2016, work on the planning of a number of the schemes outlined in the Capital Plan will be progressed.

“These are the Bettystown to Laytown Link Road, the Sallins Bypass and Osberstown Interchange, the Portlaoise Southern Relief Road together with the Dingle Relief road.

“There is also provision for 192 bridge rehabilitation schemes and 178 safety improvement projects to be carried out. The

main focus of the safety improvements scheme is to improve safety at locations where collisions have taken place.

“The main features of the investment programme include: • €148m for maintenance, improvement and strengthening works; • €41m for surface dressing; • €63m for maintenance and strengthening works for which Local Authorities have discretion in the selection of roads; • €10.1m for Specific and Strategic Regional and Local Roads Projects; • €7.8m for bridge rehabilitation works; • €5.9m for Safety Improvement Works; • €18.1m of miscellaneous grants including, bridge inspections, training, maproad and road safety measures.

January/February 2016 CONSTRUCTION 57

ASMS restore coastal gun

Pictured presenting the accreditation certificate to David Neary (R) of ASMS is Conor O’Connell, CIF Director Southern Region It is a testimony to the many areas of work that CIF members area involved in that one member company recently secured the difficult task of restoring an Elswick 4.7” Coastal Gun. Architectural Steel and Mechanical Services Ltd. (ASMS) were awarded the contract by the Spike Island Development Company to restore the Elswick 4.7” Coastal Gun to public display standard.

The gun was built in 1910 and four examples were located in Ireland in the early part of the last century.

This gun is one of only two surviving, the second one is in Fort Dunree in Co. Donegal.

Even worldwide these guns are extremely rare.

This particular gun was in external storage in the Curragh Camp in Co. Kildare. The Defence Forces presented it to the Spike Island

Development Project two years ago.

The restoration of the Coastal Gun was an extremely painstaking and onerous project to undertake.

It remained in several components and exposed to the elements for a number of Decades.

All the components had to be catalogued and individually researched before the restoration process could commence.

Individual sections had to be dismantled, degreased and prepared for Sand Blasting.

The Brass components had to be polished and restored so all visible dates and references were clearly identifiable.

The dates and identifying markings on the components from Foundry to Regiments are of extreme interest to the Military enthusiast.

All steel components were primed and finished in a Battleship Gray colour.

When all the separate components were primed, painted and polished the assembly process could commence.

The restoration team have restored several iconic pieces in the past but this restoration involved a long learning curve.

As the restoration progressed the technicians and engineers became increasingly familiar and competent with assembling the relevant components.

The components were assembled section by section in our workshop by our experienced team to a magnificent feature display.

Work began recently on a €5m development project to make the island even more attractive for visitors.

Pictured are Mary Quille, Make A Wish and Sean Segments Downey, of this development is the converting and roofing of Jones Engineering one of the former prison exercise yards into a gun yard.

Some of the rarer guns will be displayed within the gun park.

The refurbished Coastal Gun will feature prominently within the display in its newly refurbished glory.

ASMS is a Cork based contractor that that recently gained accreditation from BM TRADA through a rigorous auditing process form procurement, traceability, calibration and welding procedures.

PM Group appoints non-Executive Director Fred Barry has been appointed as a NonExecutive Director of Project Management Holdings (PM Group), the Irish headquartered international project delivery specialists.

Fred has over 30 years’ experience in senior leadership positions in the public and private sectors. He is the former Chief Executive of the National Roads Authority (NRA) in Ireland and a former Group Managing Director for the UK and Ireland with the international engineering firm, Jacobs. Fred is also a former Chairman of the Conference of European Road Directors, and Director of the National Development Finance Agency (NDFA).

During his career, Fred has worked on major infrastructural and industrial projects in Africa,

58 CONSTRUCTION January/February 2016

the Middle East, Canada and the USA. He has also published extensively on the topic.

Announcing the appointment, PM Group Chairman Dan Flinter said, “I am very pleased to welcome Fred to the PM Group board. Fred is another high calibre addition to our board bringing deep sectorial and international experience, which I am confident will be invaluable in supporting the Groups’ future development especially in international markets”.

Fred is a Chartered Engineer and a Fellow of Engineers Ireland and of the Irish Academy of Engineering. He is also a Member of the Institute of Arbitrators, has qualified as a Barrister and is an IPMA ‘A’ Project Director.

industry news

Actavo | Hire & Sales to expand Dublin presence in 2016

A

ctavo | Hire & Sales Solutions has announced that it is set to expand its presence across Ireland and the UK, with the formal opening of a new depot in North Dublin in the coming months. The news comes following a successful and eventful 2015 for the building equipment supply specialists.

Formerly Siteserv Access & Formwork, the business – together with Siteserv, Sierra Support Services, Deborah Services, RoanKabin, Roan Building Solutions and EventServ – underwent a transformative rebrand to Actavo in November 2015.

According to the company, the rebrand to Actavo has presented one clear, progressive corporate offering across six integrated Actavo solutions – Hire & Sales, Buildings, Events, Networks, In-Home and Industrial. Customers now have a single point of focus for a more extensive and versatile range of capabilities throughout the business. Actavo now has a combined workforce of over 4,500 operating in over 100 locations globally.

Graham Henderson, Regional Manager at Actavo | Hire & Sales, revealed that the new depot on Dublin’s northside, would be the company’s 30th depot in the UK and Ireland, and said that this expansion was evidence of a buoyant industry.

He commented: “In the last six months, in particular, there has been a notable upswing in trade across our network. This increased demand for our goods and services points to a resurgence in building and DIY projects, and greater confidence among customers about an economy recovery. Our business is about delivering competitively-priced, quality products with total customer convenience and satisfaction. We’re looking forward

to extending our footprint in Dublin and creating additional employment in the region. This growth will enable us to provide more customers with scaffolding, light access, temporary roofing and fencing for hire and sale.”

Henderson highlighted that, in addition to being agents for Peri Formwork and Combisafe Edge Protection Systems, Actavo | Hire & Sales has a strategic partnership with major national construction service providers and also offers a professional Formwork and Falsework design service through its dedicated Design Engineer Team.

SAVE THE DATE

Galway Mayo Institute of Technology Annual International Construction Management Day Conference The Galway Mayo Institute of Technology (GMIT) will be hosting their sixth annual “International Construction Management Day” in the college on Tuesday, 8th March 2016.

The event will be an all-day event with a variety of speakers from all sectors of the industry. The audience will be made up of students, contractors, consultants and a number of academics.

As per previous conferences the GMIT will give CIF member firms the opportunity to erect promotional material in the college on the day.

January/February 2016 CONSTRUCTION 59

New appointment at Ecocem John Reddy has been appointed as Technical Development Manager of Ecocem Ireland Ltd, having joined Ecocem in 2004.

In his new position, John will manage various areas of the business including specification and technical & quality functions.

John will also manage a budget of over €300,000 to bring new state of the art technological and environmentally friendly advancements to the construction market, in Ireland and Europe. John will oversee a team of five.

He holds an MSc (Distinction) in Advanced Concrete Technology from Queen’s University Belfast and is a Chartered Engineer with Engineers Ireland (having graduated from DIT Bolton St). He is also one of a select few Irish Corporate Members of the Institute of Concrete Technology (UK).

John is one of the longest serving members of the Ecocem Team

John Reddy, Ecocem’s new Technical Development Manager

Merger of Chartered Building Surveyors Pat McGovern & Val O’Brien

McGovern O’Brien are delighted to announce this merger, which they believe will further widen and improve the range of services available to their client base. It comes as they see a positive upturn in

60 CONSTRUCTION January/February 2016

the Irish property market reflected by the increasing demand for professional building surveying services. The move will strengthen their market share in Ireland, particularly in the Dublin area. The

combined firm will have two offices (Dublin & Navan) and employ 21 staff of which seven are Chartered Building Surveyors. It means they are set to become one of the leading independent firms of chartered building surveyors in Ireland.

The two companies have been operating complimentary services for some time.

By joining forces McGovern O’Brien will continue to grow their business and strengthen their team and established network which will ensure they are in a prime position to maximise opportunities and to continue to deliver a quality service to clients. McGovern O’Brien offer a full range of property surveying services, including residential and commercial property due diligence building surveys.

Its main client base is comprised of architects, solicitors, general practice surveyors, estate agents, banks, investors and property managers.

“This merger is a milestone in the history of both companies and will allow us to move forward together to an exciting future,” says the company.

For further information, please visit www. mcgovernobrien.ie;

Left (l-r): Austin Sammon, Letterkenny IT, Sean Downey, CIF, Anne Boner, Letterkenny IT, Justin Molloy, CIF, Dermot Gildea, CIF Donegal Branch Chairman & MBC Building Contractors, Paul McGee, Bennett Construction, Paul Hannigan, Letterkenny IT, Antoin MacGabhann, Letterkenny IT & MacGabhann Architects Bottom (l-r): Anne Boner, Letterkenny IT, Justin Molloy, CIF, Rory McShane, Letterkenny IT, Dermot Gildea, CIF Donegal Branch Chairman & MBC Building Contractors

Letterkenny Construction Industry Day bringing industry and graduates together The Department of Civil Engineering and Construction at Letterkenny IT opened it’s doors to construction professionals, employers, graduates and students at a recent ‘Construction Industry Day’.

Anne Boner, Head of Department of Civil Engineering & Construction, provided the welcome and introductions to a packed auditorium of students, graduates and leading employers from the construction and engineering industry. There was also participation by second-level students and career guidance counsellors with small interested groups being catered for; all in all, a ringing endorsement in the level of interest in this industry in the Northwest.

Introducing the proceedings, Anne outlined that “the aim of

the event was to bring employers, graduates and students together, to discuss work placement opportunities, highlight opportunities and challenges within the industry and to raise the profile of the construction professions”.The seminars had three themes: The Department’s connection with industry, enabling construction careers and work placement roll-out; BIM (Building Information Modelling) in a changing technical environment; and the role of professional body members in building regulations compliance. Breakout rooms were provided for employers to make presentations and network with final year students as well as those seeking work placements.

The companies availing of the opportunity who all employ LYIT graduates included Fire Safety

Engineering consultants (London based) – Hoare Lea, Chapman BDSP and H & H Fire; Contractors Bennett (Construction) Ltd., BAM Ireland and RPS Consulting Engineers.

The speakers included LYIT graduate Kelly Treanor, BSc in Quantity Surveying (2011), who eloquently defined her subsequent career path and route to impending professional membership of the SCSI (Society of Chartered Surveyors Ireland); and also Darragh Beggan, BSc in Architectural Technology (2013) who lead an animated discussion on 3D modelling, outlining his current role with 3D Design Bureau, Dublin.

Liam Innes, Chartered Architectural Technologist (CIAT) and RIAI (Royal Institute of Architects Ireland) Council member presented the issues around recognition of the Architectural Technologist as a co professional with the competencies to carry out the duties of Design / Assigned Certifier as laid down in the BC(A)R (Building Control (Amendment) Regulation) 2014. His presentation was followed by a succinct overview of Building Control legislation

by Ardal McDermott, Donegal County Council’s Building Control Officer.

Continuous Professional Development (CPD) points were available to attendees, with professional bodies being well represented. Involved in the event, in particular were the CIF (Construction Industry Federation), with keynote speaker Seán Downey, Director of Specialist Contracting CIF, taking to the floor to discuss challenges and opportunities facing the construction industry in 2015, ending the day on a very positive and up-beat note.

The CIOB (Chartered Institute of Building) had a display stand on the main concourse, giving professional information, as did FP McCann (Building and Civil Engineering) Magherafelt, Northern Ireland.

The event was sponsored by Maurice Johnson & Partners, Fire Safety Engineering Consultants, Engineer Ireland Donegal Branch, and Letterkenny Institute of Technology.

The Department was overwhelmed by the support and interest around this event and plans are already afoot for Construction Day 2016.

January/February 2016 CONSTRUCTION 61

Linham Construction introduces Geocell foam glass Linham Construction has just announced the introduction of Geocell foam glass gravel insulation into Ireland.

This is a replacement for the traditional gravel (SR 21 or hardcore) and board insulation giving you highly insulated light-weight aggregate for general purpose use. Other uses are given below.

Applications:

Chris Chambers (L) from Clancy Construction presents David Mitchell from Pieta House (centre) with a cheque for the mental awareness charity. Also present is Alan Darmody from Clancy Construction.

• Period Home Foundation Renovation • Underground Pipework Insulation • Pyrite Infill Material Replacement • Landscaping – Gabions, Roof Gardens, Mounds & Berms • Lightweight bridge Material • Water Tanking Material • Lightweight Rail Applications • Passive House Foundations At 150 Kg/m3, the product is extremely light and has impressive compressive strength (28 tonnes/m2).

It is breadthable, is Pyrite-free, uses neither hydrocarbons or petrochemicals and is made from 100% recycled material.

“Since the introduction of Geocell

Irish expertise delivering world class projects

(L-R) Henri van Drunen (Janssen Biologics), Bernard O’Brien, Hans Peeters, An Taoiseach, Enda Kenny T.D., Julie Sinnamon (Enterprise Ireland) and Irish Ambassador John Neary International project delivery specialists, PM Group provided a range of services to Janssen (a J&J company) on their state of the art €80m, disposable bulk vaccines facility in Leiden, Netherlands, which was visited recently by An Taoiseach, Enda Kenny, TD, as part of the Enterprise Ireland Trade and Investment Mission to the Netherlands and Germany.

PM Group were chosen to provide services from the initial feasibility study through to detailed design. PM Group also provided construction management and commissioning & qualification services for the project in collaboration with two other well renowned Irish companies, Sisk and

62 CONSTRUCTION January/February 2016

products, we have been approached in relation to a wide array of applications, from roof-gardens to railways,” say Linham. “However our main focus for Geocell aggregate is as a replacement for insulation board and stone fill – SR21” Linham say the product removes the need for strip foundations and rising walls, which gives the added advantage of a reduced depth of dig, as well as reduced insulation wastage and damage during installation. Due to its weight and size, it can be easily be manipulated around obstacles and pipework, which means that the concrete floor can be laid on the same day, saving time and expense.

Linham add: “Being quicker to install than conventional methods not only saves time, it can reduce the quantity of concrete needed to safely transpose the loads of a house to the ground because of the impressive load capacity of the material.”

Geocell foam glass aggregate, available in Ireland via Linham Construction.

Dornan Engineering. PM Group had a team of over 50 people involved in the project which was delivered from their centre of pharmaceutical excellence in Cork and supported extensively by their Benelux business unit based in Brussels.

Speaking from Leiden, the Taoiseach said: “This is a great example of collaboration between quality Irish businesses with a well-earned international reputation. The traditional perception that Irish exports involve agricultural and manufactured goods does not cover the full picture. In this case internationally renowned Irish businesses, like PM Group, are producing services and expertise that are in great demand overseas.

“Our work with Janssen in the Netherlands is a result of the excellent long-term relationships built up with many of the J&J companies including Vistakon and DePuy Synthes. The deep understanding we have of their businesses and our ability to support their investments through our international office network means we can quickly provide the right services and critically, expertise, anywhere it is needed.” Bernard O’Brien, Associate Director, PM Group.

PM Group has delivered a range of major projects in Benelux and other European locations in the Pharmaceutical, Food, Med Tech and Advanced Manufacturing Technology sectors for companies such as Genzyme-Sanofi, GSK, Sanofi, J&J, Dell and Danone.

Julie Sinnamon, CEO, Enterprise Ireland said: “We have worked closely with PM Group to help drive their international expansion and now close to 50% of their turnover is gained in export markets. This project, which was delivered from PM Group’s centre of excellence in Cork, is an excellent example of international expansion from a regional location, directly impacting on employment and prosperity in the region.”

for your diary Thursday 18th February

CIF Western & Midland Region CIRI Induction Training Radisson Hotel, Athlone, 10am Contact: Brid Cody 021 435 1410 Tuesday 19th February

Mid West Branch meeting

Castletroy Park Hotel, Limerick, 4.30pm Contact: Brid Cody 021 435 1410 Tuesday 23rd February

Executive Body meeting

Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016 Thursday 25th February

CIF Western & Midland Region CIRI Induction Training Radisson Hotel, Sligo, 10am Contact: Brid Cody 021 435 1410 Monday 7th March

Cork Branch Executive Body meeting

Radisson Hotel, Little Island (AGM to follow) 5pm Contact: Brid Cody 021 435 1410 Monday 14th March

Galway Branch meeting

Ardilaun House Hotel, Galway, 6pm Contact: Brid Cody 021 435 1410 Tuesday 15th March

Midland Branch meeting

Bloomfield House Hotel, Mullingar, 8pm Contact: Brid Cody 021 435 1410 Tuesday 12th April

Executive Body meeting

Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016 Wednesday 13th April

South East Branch meeting

Brandon House Hotel, New Ross, 7pm Contact: Brid Cody 021 435 1410 Monday 18th April

Cork Branch Executive Body meeting

Construction House, Little Island, 4pm Contact: Brid Cody 021 435 1410 Tuesday 19th April

Mid West Branch meeting

Castletroy Park Hotel, Limerick, 4.30pm Contact: Brid Cody 021 435 1410

Maldron Hotel, Galway, 9.30am Contact: Brid Cody 021 435 1410 Thursday 16th June

CIF Western & Midland Region CIRI Induction Training

Wednesday 20th April

Radisson Hotel, Athlone, 10am Contact: Brid Cody 021 435 1410

Mount Errigal Hotel, Letterkenny, 8pm Contact: Brid Cody 021 435 1410

Monday 20th June

Monday 25th April

Construction House, Little Island, 4pm Contact: Brid Cody 021 435 1410

Construction House, Little Island, 4pm Contact: Brid Cody 021 435 1410

Thursday 23rd June

Thursday 28th April

Radisson Hotel, Sligo, 10am Contact: Brid Cody 021 435 1410

Donegal Branch meeting

Cork Branch IHBA meeting

North West Branch meeting

Breaffy House Hotel, Castlebar, 8pm Contact: Brid Cody 021 435 1410 Monday 9th May

Galway Branch meeting

Ardilaun House Hotel, Galway, 6pm Contact: Brid Cody 021 435 1410 Tuesday 10th May

Midland Branch meeting

Tullamore Court Hotel, Tullamore, 8pm Contact: Brid Cody 021 435 1410 Tuesday 24th May

Executive Body meeting

Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016 Wednesday 1st June

South East Branch meeting Marina Hotel, Waterford, 7pm Contact: Brid Cody 021 435 1410 Wednesday 1st June

Donegal Branch meeting

Mount Errigal Hotel, Letterkenny, 8pm Contact: Brid Cody 021 435 1410 Thursday 9th June

North West Branch meeting Sligo Park Hotel, Sligo, 8pm Contact: Brid Cody 021 435 1410 Monday 13th June

Cork Branch Executive Body meeting

Construction House, Little Island, 4pm Contact: Brid Cody 021 435 1410 Tuesday 14th June

Mid West Branch meeting

Castletroy Park Hotel, Limerick, 4.30pm Contact: Brid Cody 021 435 1410 Tuesday 14th June

CIF Western & Midland Region CIRI Induction Training

Cork Branch IHBA meeting

CIF Western & Midland Region CIRI Induction Training

Monday 27th June

Galway Branch meeting

Ardilaun House Hotel, Galway, 6pm Contact: Brid Cody 021 435 1410 Tuesday 28th June

Midland Branch meeting

Hodson Bay Hotel, Athlone, 8pm Contact: Brid Cody 021 435 1410 Tuesday 5th July

Executive Body meeting

Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016 Monday 22nd August

Cork Branch Executive Body meeting

Construction House, Little Island, 4pm Contact: Brid Cody 021 435 1410 Tuesday 23rd August

Mid West Branch meeting

Castletroy Park Hotel, Limerick, 4.30pm Contact: Brid Cody 021 435 1410 Monday 29th August

Cork Branch IHBA meeting

Construction House, Little Island, 4pm Contact: Brid Cody 021 435 1410 Tuesday 30th August

Executive Body meeting

Construction House, Dublin, 11am Contact: Gillian Heffernan 01 406 6016 Monday 5th September

Galway Branch meeting

Ardilaun House Hotel, Galway, 6pm Contact: Brid Cody 021 435 1410 Tuesday 6th September

Midland Branch meeting

Bloomfield House Hotel, Mullingar, 8pm Contact: Brid Cody 021 435 1410

January/February 2016 CONSTRUCTION 63

last fix

Safe-T first at Cleary Doyle!

Making safety fun with a special guest Pupils joined Ivor to watch a video about the Nice idea from UK construction firm dangers of active building sites and why you Morganstone. Like many Irish construction should not play on one. Morganstone chose companies it visits school to teach pupils about to speak with pupils at Model Primary School construction site safety. because it has an ongoing development nearby, While accidents involving children entering just off Heol Dyfnallt, Carmarthen which they construction sites are thankfully rare, accidents are building on behalf of Grwp Gwalia. do happen in the UK every year. As such, As the school is a large primary school, Morganstone runs a continuous education programme at schools near its construction sites Morganstone carried out two presentations and launched two competitions to accommodate all to make sure children understand the risks, stay of the pupils. away and stay safe.

Morganstone’s community engagement In January the company visited Model Primary School in Carmarthen and ran a poster manager, Antonia John, said: “We run an ongoing education programme competition designed to highlight the dangers making sure we visit the schools closest to of construction sites. our building sites and engage with the pupils Antonia John, the company’s community to make sure they are aware of the very real engagement manager, was joined by special dangers of playing on a construction guest Ivor Goodsite at the school, site. site manager Ceri Hughes and “Ivor brings an element of Grwp Gwalia’s community fun to the presentation but development officer Vicky there is a very serious Watts. Ivor is a costumed Stat of the month message with everything character developed by the Britain needs 1 that we talk about. We Considerate Constructors get a great response from Scheme who is regularly million construction children regarding the used by Morganstone to workers by 2020 video, and we will be engage with school pupils back later on in the year to to encourage safety on and for house-building announce the winners.” around construction sites.

needs

What’s trending?

A quick glance at Google Trends (a useful tool that shows what people are searching for online) tells us that construction is going through a bit of resurgence. Well, online at any rate.

When analysing the search term ‘construction’ in Ireland the graph tracks a downward spiral from 2007 to 2011, similar to the economic collapse. It makes sense, as the sector contracted less people were searching for construction-related topics. From 2011 to 2015 the number of construction searches remained static only for things to change in January 2016 with a near vertical climb into February. What it all means is impossible to say but interest in the Irish construction has gone through the (online) roof.

64 CONSTRUCTION January/February 2016

The commitment to health and safety at Cleary Doyle Construction was recently underlined by the attainment of Safe-T-Cert certification.

The Safe-T-Cert scheme has been designed to certify the Safety Management Systems of contractors working in the construction industry.

The Scheme’s objective is to improve health and safety management by providing objective standards and certifying those contractors whose safety management systems have been assessed.

Requirements for contractors include implementing an occupational health and safety management system “which meets the requirements of the organisation – incorporating continual improvement”.

They must also address relevant national legislation and demonstrate “commitment at all levels within the organisation”.

Certification follows a strict audit, points out John Doyle, director of Cleary Doyle Construction which is involved in a range of projects including the recently finished conference centre at Kildangan Stud in county Kildare and major refurbishment and fit out at the Callan building at NUI Maynooth.

“Construction by its nature is a high risk profession,” stresses John.

“As directors and employers we have an obligation to ensure that everyone can make it home safely at the end of the day.

“We saw this as an opportunity to upskill all our employees. It also gives the company a boost when it comes to things like ‘pre-qual’.”

The journey towards Safe-T-Cert status began with the implementation of a brand new system that was more user-friendly and up-to-date than the one previously in place at Cleary Doyle.

This was achieved with the help of an outside consultant and the audit for Safe-T-Cert status took place in early January.

“The beauty of the system we have now is that it is very user-friendly,” says John. ‘I think that is the key to getting buy-in from our staff and subcontractors.”