Construction and property News

Volume 36 | Number 8 July 2010

19

24

28

36u suppliers need protection

from non-payment, says irish Concrete

Federation

uthe latest construction

equipment news and

product launches

The decline in Irish construc-tion activity continued during the month of June but at the weakest rate in almost three years.

The Ulster Bank Construc-tion Purchasing Managers’ Index for June points to a marked slowdown in the pace of deterioration of operating conditions in Irish construc-tion. This was indicated by a marked easing in the pace of decline in activity, while new orders, employment and purchasing activity all fell at slower rates.

The seasonal ly adjusted index rose to 44.9 in June, from 40.0 in the previous month. Although the reading still sig-nalled a marked contraction in activity, it was the slowest since July 2007.

‘Having hit a record low at the beginning of 2009, the overall PMI index is now at its highest level since July 2007 pointing to the slowest pace of contraction in almost three years,’ says Simon Barry, chief economist Republic of Ireland at Ulster Bank. ‘Also, the June survey confirmed that opti-mism about the future within the sector remains upbeat, with the expectations index above its historic average for the third month in a row. The rise in the June reading was reflective of corresponding increases in the

sub-indices for housing and commercial. While activity continues to decline in both areas, the latest trends are moving in the r ight direc-tion, with the pace of decline

at mult i-year lows in each case . The same cannot be said of the June reading of the civil engineering index which bucked the more posi-tive trends elsewhere in the report by showing a decline last month – a reflection per-

haps of the sharp pull-back in exchequer capital spend-ing.’

However, Irish constructors surveyed in the Ulster Bank C o n s t r u c t i o n P u r c h a s i n g

Managers survey remained strongly optimistic regard-ing the prospects for future activity in June. Respondents to the index ant ic ipate an increase in new business over the coming year as wider eco-nomic conditions improve.

Rate of Construction Decline Slows Down

The Construction Industry Federation recently held a site visit to the €40m Kilronan Harbour Development Project on Inis Mór, which is due to be com-pleted before the end of the year. Pictured during the visit are, back row (l-r): Joe Murphy of PUNCH Consulting, the engineering consultants on the project; Brendan Reynolds, chairman, Galway CIF and Pat McAndrew, BAM Contractors, the contractors on the harbour development. Front Row (l-r): Cathy Ní Ghóill, manager, Comharchumann Forbartha Árann; Tom Par-lon, director general, CIF; Matt Cremin, project resident engineer, Galway Co Council and Pat Nestor, regional director, BAM Contractors.

The government is under-spending by 25% on construction projects and this may harm economic recovery, says Davis Langdon PKS.

Launching its Summer Review 2010 of the construction industry, Davis Langdon PKS say that, according to the exchequer figures to June 2010, capi-tal spend is 25% behind the profiled expenditure at the budget stage. With the Public Capital Programme (PCP) consisting of over half of the esti-mated construction output for 2010, at €6.5bn, this is of grave concern for the industry and for the 150,000 people directly employed in it.

The latest Exchequer figure returns for the end of June indicate that capital spending is well behind the profiled expenditure at budget stage: education is -35.8%; environment is -32.3%; health -25.5%; transport is - 29.1%; other is -12.7%, giving a total of -24.8%.

‘Davis Langdon PKS predicted in January that the overall construc-tion output for 2010 would be €12bn, which is down 37% on 2009, but the signs are that this figure may actually be worse if the capital programme is not implemented in full,’ says Norman Craig, Davis Langdon PKS’s managing director. ‘Private capital expenditure is also likely to be behind arising from the restricted availability of finance and a general lack of confidence in the industry, and this again is a major worry... We understand that the gov-ernment’s review of the Capital Invest-ment Programme for 2010 – 2016 is at an advanced stage and will be target-ing areas that will assist in lifting the economy out of the downturn and driving it forward when the upturn takes hold…we would urge its imme-diate publication and implementation in order to ensure the PCP is delivered in the next five years, in particular the next two years.’

Investment Critical to Industry’s Survival

uDon O’sullivan talks about the CiF’s proposed

Construction Act

uOur new energy Focus section kicks

off with an update on wind

farm projects

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Sod Turned on New Tesco Store The sod was turned recently at the site of Tes-co’s new Tesco Extra store in Craigavon to mark the beginning of the construction contract. The 42-week project will provide employment for around 150 construction workers.

Craigavon’s newly elected Mayor, Alderman Stephen Moutray MLA, joined representatives from Tesco, local building contractor, Turking-ton Holdings and invited guests for the formal sod-cutting ceremony at Highfield. The new store, which is being built on the vacant site adjacent to B&Q, will include an 80,000 square foot sales area and will be the fifth Tesco Extra store in Northern Ireland.

‘The relationship between ourselves and Tesco goes back several years and we are committed to delivering a first class build on time and within budget,’ says Trevor Turkington, chief execu-tive of Portadown-based Turkington Holdings, who are developing the store in partnership with Tesco. ‘All told this important project will require around 150 construction workers. There is no doubt this is good news for the area in these challenging economic times.’

As part of Tesco’s commitment to becom-ing a zero carbon business by 2050, this store

will incorporate a number of environmentally-friendly initiatives. For example, the display cabinets have been redesigned to be more energy efficient and the in-store ovens will only use half the energy for baking bread than older models. Rainwater is also collected or ‘harvested’ and

is then used to flush the toilets in the staff and customer areas. The store will be timber clad, there will be enhanced glazing to make use of more natural light, and roof lights to allow more light in and reduce power consumption, as well as small wind turbines and LED lighting.

Craigavon Mayor, Alderman Stephen Moutray MLA, cuts the first sod for Craigavon’s new Tesco Extra store at Marlborough Retail Park. Joining the Mayor is Trevor Turkington, chief executive of Turkington Holdings, and Bernard Owens, senior store development manager, Tesco NI.

Acheson & Glover has been commended for its approach to meeting the needs of tomorrow’s workforce and the way it manages talent within the company.

Presented with two ‘highly commended’ awards at the recent Irish News Workplace & Employment Awards in Belfast, Acheson & Glover, along with other high-profile organisations, was congratulated by Department of Employment & Learning Minister Sir Reg Empey for its success in placing a firm emphasis on individuals and its positive contribution to the Northern Ireland workplace. The prestigious event was hosted by award-winning BBC journalist Karen Patterson.

Acheson & Glover won its first accolade in the Managing Talent Award, (medium/large organisation category), which is given to organisations that demonstrate an innovative and effective approach to managing fresh and experienced talent. The company was also highly commended in the Inno-vative Employer of the Year category (medium/large organisation) aimed at organisations that demonstrate innovative approaches to meeting the needs of tomorrow’s workforce within their organisation.

Acheson & Glover Scores at Workplace AwardsAshleigh Acton, HR manager, Acheson & Glover, accepts a ‘highly commended’ certificate awarded to the company in the managing talent (medium/large organi-sation) category of the Irish News Workplace & Employment Awards from sponsor Kathleen Blaney, Royal Mail.

An Bord Pleanála has given the thumbs up to plans to develop a private hospital of nearly 200 rooms in the grounds of St James’s Hos-pital in Dublin. The new hospital is expected to employ 400 people during construction.

The Synchrony consortium behind the project had previously said it hoped to be on site before the end of the year for the develop-ment. Seven appeals had been made against the decision to grant planning permission for

the development, including one by Synchrony itself because it was unhappy with some of the conditions attached by the local authority. An Bord Pleanála approved it subject to 25 condi-tions.

Green Light for Co-Located Hospital

Construction & Property News July 2010 News �

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Glasgiven Contracts Ltd has just completed the ‘design and build’ of the new mountain centre in Tollymore, Bryansford in Co Down and they have achieved a BREEAM rating of excellent for their efforts.

The project, which was only started last year, has created a mountaineering and canoeing centre with overnight accommodation, con-ference rooms and a rolling pool for canoe-ists, all located within Tollymore Forest Park. ‘Tollymore National Outdoor Centre is one of the first projects in Northern Ireland to be com-pleted under the new NEC 3 form of contract with the optimum result being achieved for the client, Sport NI,’ says Liam Murphy, a director of Glasgiven Contracts. ‘It was completed on time, within budget and to a very high standard. It is also a flagship building for sustainability, which exceeds current statutory requirements. Energy saving and renewable energy technolo-gies have been key ingredients to this build and there will be cost efficiencies and savings in the long term.’

The structure is a Glulam timber structure which is a natural alternative to steel and con-crete. ‘It is a low energy material and the use of

timber frame designs also enables super insula-tion, basically, it is environmental, economical, strong and good to look at,’ says Liam. ‘The timber was sustainably sourced and is forestry stewardship certified.’

Other sustainable features include a biomass boiler, which uses wood pellets, solar panels, an energy management system, rainwater har-vesting, larch cladding and the use of natural material and natural daylight.

Co Down Contractors Achieve Highest Building Status

(l-r): Gerard McClelland, contracts manager and William Smith, a director of Glasgiven Con-tracts, outside the Tollymore National Outdoor Centre which achieved the highest building status prior to its official opening on 16 June

First Time Buyer Demand on the IncreaseA new survey by nationwide property con-sultants Real Estate Alliance agents reports signs of increased demand for properties from the first-time buyers’ market in recent weeks.

While the group agrees that prices achieved are down by an average of 50% from early 2007, they predict that prices are levelling off and expect very little decrease in prices for the remainder of 2010 as there are signs of stability in certain sectors of the property market.

Real Estate Alliance sale agreed over 600 properties in first six months of 2010 with levels tailing off slightly in the month of April after an encouraging first three months of the year. In recent weeks, levels of activity have increased again and members are reporting over 150 sales agreed for the month of May and approximately 115 for the month of June.

According to Michael Boyd, chairman of Real Estate Alliance, ‘with bank lending par-ticularly focused on the first time buyer sector, the sales reported by Real Estate Alliance proves that mortgages are being approved for first-time buyers and the market is active’.

Michael Boyd, chairman of Real Estate Alliance

Gormley Opens New Wexford OfficeEnvironment Minister John Gormley recently opened his department’s new office on the Newtown Road in Wexford.

The building of six and a half thousand square metres is situated overlooking the Slaney estuary on the outskirts of Wexford town. The building was commissioned by the Office of Public Works and was designed by Scott Tallon Walker Architects and built by Pierse Construction Ltd.

The building is designed and built to be a sustain-able building for the 21st century. It incorporates many environmentally friendly features. It has high levels of natural daylight and natural ventilation. Its high performance glazing helps to retain heat in the winter and reduce solar gain in summer. Other environmental measures include intelligent lighting systems to reduce energy wastage, high insulation standards, water conservation measures including reducing rainfall runoff with a sedum roof and rein-forced grass car parking.

Construction & Property News July 2010� News

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Ian Williams Carpentry Ltd recently scooped a Gold Award for Regional Contractor of the Year from BAM Construction Ltd.

Ian Williams Carpentry achieved first position in the UK’s Western Supply Chain Awards and came sixth nationally from over 4,500 subcontractors that BAM Con-struction utilises. The Royal BAM Group operates on a global arena with the World Cup’s ‘Soccer City Stadium’ in Johannesburg being just one of their many sites across the world utilising thousands of subcontractors at any one time. In the UK, BAM monitor perform-ance of these subcontractors using a sophisticated database detailed with information from BAM site project teams. These sites include a number of hospitals in South Wales, including Ysbyty Ystrad Fawr at Ystrad Mynach, a local general hospital of approximately 29,000 square metres over two sto-reys, with 276 single bed rooms, where IWC is currently working on a £1.5m package.

The award ceremony, held in Bristol, identified major industry recognition for best practice in quality, health and safety, supervi-sion, environment and manage-ment and is based on monthly site audits by BAM Construction.

Established in 1990, IWC has built upon a reputation for being a substantial carpentry contractor in supply and fix or labour only con-tracts and has a growing portfolio of major clients. With a specialist and qualified workforce of over 100 subcontract carpenters, IWC has recently been awarded major development contracts.

Royal BAM Group’s three sub-sidiary companies in the UK, BAM Nuttall, BAM Construct UK and BAM PPP, deliver a combined turnover of £1.8bn per annum. This positions BAM in the top tier of the construction services sector in the UK. BAM has a strong regional presence with over 30 offices and plant depots throughout the UK ensuring both a local and a national service to its customers.

Carpentry Contractor Wins Gold in ‘BAM’ Awards

Steve Tapson, BAM, presents Ian Williams, IWC, with gold.

Building Begins on Airport Car ParkThe Dublin Airport Authority has begun construction of a €14m short-term car park beside the new Terminal 2 (T2) building. The car park will comprise 1,000 spaces for users of Dublin Airport and 350 for car hire.

However, the DAA has postponed plans to build a 400-bed, four star hotel in top of this car park until there is a recovery in the economy and a rise in visitor numbers. The DAA’s original 10-year planning permission also allowed for an additional 1,200 car park spaces but these have been put on hold given the economic climate.

Bowen is the main contractor on site and it has already worked on site clearance and foundations piling for the three-storey car park. About 50 people are employed on site at present but this will rise to 100 later this month as the building frame is installed.

Almost all of the precast concrete is being prefabricated off site by CRH subsidiary Ergon at facilities in Tallaght and Bunclody, Co Wexford. The car park will be linked by a bridge across the pick-up and set-down kerbs to T2. This bridge is already in place. There will be a separate access for motorists to each terminal building and to their specific car parks when T2 becomes operational in November.

The new car park spaces will replace surface parking and car hire facilities removed during T2’s construction.

T2 recently won a construction award in Britain. It was one of four structures to win an award at the 2010 Structural Steel Awards ceremony in London earlier this month.


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Award-Winning Wetland DesignBalloo Wetland Nature Reserve in Bangor, designed and project managed through con-struction by WYG Ireland, has been highly commended in the prestigious Chartered Insti-tution of Water and Environmental Manage-ment (CIWEM) Living Wetland Awards.

The wetland, managed by the Ulster Wildlife Trust in partnership with North Down Borough Council, was established in 2008 from an area of derelict wet grassland. Although still very much in its infancy, it has become a haven for local wildlife and people. A team of environmental, engineering, and health & safety consultants from WYG joined forces with North Down Borough Council and the Ulster Wildlife Trust to develop the new community wetland park.

The award, announced at the recent CIWEM Annual Dinner in London, recognises multi-functional projects that demonstrate sustainable use of wetland habitats. WYG’s groundwater specialists carried out a preliminary hydro-geological and hydrological investigation to establish the feasibility of creating a series of interconnected ponds and islands. The design was developed by WYG’s civil engineers who also provided procurement and construction supervision services, with support from their ecology team who offered expertise to increase

the design’s ecological benefits. WYG’s health and safety consultants were also on hand to pro-vide CDM coordinator services.

The finished design incorporates two large ponds, fitted with pond dipping platforms, cen-tral islands and a shallow wetland scrape pond to maximise the habitats available to resident

and migratory species. These are now home to a variety of water loving creatures. The nature reserve has received strong support from mem-bers of the local community with both the Rath-gill and Bloomfield Residents Associations being involved in every stage of the process.

New ITFMA MemberManley Timber Frame of Duleek, Co Meath is the latest timber frame manu-

facturer to join the Irish Timber Frame Manufacturers Association (ITFMA).

Philip Mahony (pictured left), ITFMA manager, presents the company’s

membership certificate to company director Damien Manley. ‘In spite of the

current downturn timber frame’s role in helping to achieve the governments’

energy efficiency and Co2 reduction targets has grown in importance,’ says

Damien Manley. ‘Our aim is to supply our customers with the most energy

efficient homes possible and our ITFMA membership gives us access to the

necessary knowledge and training to make this happen.’

Dublin Architects to Represent Ireland at Venice BiennaleIreland is to be represented at the world’s larg-est architecture event this year, the Venice Biennale, by the award-winning Dublin archi-tects, deBlacam and Meagher.

The official launch of their participation in the 12th international architecture exhibition in Venice during the autumn took place this month in the Atrium of Trinity College’s Din-ing Hall.

Established in 1976, the practice’s best-

known works in Ireland include Cork Institute of Technology, the Chapel of Reconciliation in Knock, the Samuel Beckett Theatre in Trinity College and the Wooden Building in Temple Bar.

The exhibition, which is being curated by architects Tom de Paor, Peter Maybury, Alice Casey and Cian Deegan, will feature deBlacam and Meagher’s built and unbuilt portfolio of the last 33 years, which will then be donated in

its entirety to the Irish Architectural Archive. De Paor Architects, headed by Tom de Paor, will also be showing a folly at the exhibition.

The exhibition is sponsored by the Royal Institute of the Architects of Ireland, the Department of the Environment and the Irish Embassy in Rome. It will run until Novem-ber 21st and is expected to attract more than 130,000 visitors from around the world.


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Knight Frank Ireland has appointed Andrew Watt as its new head of profess ional serv ices, i ts f i rst recruitment of additional personnel

in some time. A chartered surveyor, Andrew Watt MRICS BSC (hons) joins Knight Frank Ireland from commercial property agents Finnegan Menton, where he was a company director. He had been with them for the past 11 years and prior to that had worked with commercial property consultancies in the UK for 12 years. ‘We are delighted to be announcing such an important new appointment, which will contribute to the rebuilding of the business after a couple of difficult years,’ says Paul McDowell, managing director of Knight Frank Ireland.Turner & Townsend plc has appointed Paul Grace as General Director of Turner & Townsend Russia and the CIS. Turner & Townsend have been active in the Russian market since 2004. Paul

Grace has extensive experience in the Russian development and project management market, having spent nearly 10 years in Russia over the past two decades and the last five years with Ruperti Project Services International, where, until recently, he was a partner and specialised in advising clients in project development strategy, financial services, due diligence and PPP. Paul will be based in Moscow and lead a team of 17 professional staff members including project managers, cost managers and engineers. Turner & Townsend plans to expand the team further during the course of this year to meet the demand for consultancy services in the rapidly evolving Russian construction sector, especially in large-scale commercial and infrastructure projects.

n appointments

Andrew Watt

Fingal Co Council Approves Swords LAPFingal Co Council has approved a local area plan for 270 acres along the link road between Swords and Ashbourne. The site is four kilo-metres (2.4 miles) from Swords and will eventually have a popula-tion of about 10,000.

Members of Fingal Co Council decided by 17 votes to six to accept the local area plan for Oldtown/Mooretown area, which will open the way for the development of 3,400 family homes, a local shop-ping centre, a regional park and other infrastructural facilities. The enclave will also have three or four primary schools as well as a sec-ondary school.

The decision to proceed with the development has been welcomed by Gannon Developments, which has owned most of the land for 12 to 14 years. Architects Conroy Crowe Kelly are to lodge a plan-ning application in October or November for the first phase of the housing scheme. Approval of the local area plan will allow Gerry Gannon to develop 2,800 family homes as well as a 2,500 square metre (26, 910 square foot) shop-ping complex.

Gerry Gannon is planning to provide a wide mix of house sizes to accommodate people at all stages of their lives, with the emphasis on the provision of two-, three- and four-bedroom family-oriented homes. The development company is handing over 75 acres for a regional park planned for the northwest corner of Oldtown.

Pay Cuts Recommended for Construction WorkersThe Labour Court has recom-mended a pay cut of 7.5% for con-struction workers. This follows an application from the Construction industry Federation seeking pay cuts of up to 20%.

Construction employers had argued that they could not afford to pay legally binding wage rates negotiated between employers and unions under the Registered Employment Agreement for the sector. They told the Labour Court that cutting labour costs would improve competitiveness, encourage private investment in construction and create jobs. However, unions argued that a pay cut would result in severe

financial hardship for the few building workers still in employ-ment and would not create any jobs in the industry.

The Labour Court justified the pay cut on the basis of de facto previous linkages between pay for construction workers in the pri-vate sector and those in the local authorities. Following the Gov-ernment pay cuts imposed on State employees, including construc-tion workers in local authorities, the court recommended similar adjustments downwards should be made in the rates prescribed by the legally binding registered employment agreement for the construction sector. Accordingly,

the Labour Court recommended that the basic rate of craft workers and general operatives should be cut by 7.5%. The reduction would also apply to pay-related allow-ances. However, the court says that the cuts should be regarded as a temporary measure or dero-gation from the current REA rates – and should be reviewed in Janu-ary 2010 and in each subsequent year. Those reviews should have regard to the prevailing circum-stances in the construction indus-try and any adjustments in the pay of corresponding public sector grades covered by the Croke Park pay and reform agreement.

Property prices fell 3.4% in the second quarter, bringing the fall for the year to date to seven per cent, according to the latest property barometer issued by property website, MyHome.ie.

The latest fall – the 14th consecutive declin-ing quarter – brings the total decline from the peak in Q4 2006 to almost 30%.

However, the survey shows that there are some signs that the three-bed market in Dub-lin is stabilising. An analysis of newly added stock in Dublin shows that the asking price for three-bed terraced houses has increased by four per cent while the asking price for newly listed three-bed semis has increased by half a

percentage point.The average asking price for a home nation-

ally is now €291,278 compared to €301,449 three months ago and €337,600 12 months ago.

Angela Keegan, managing director of MyHome.ie, said the findings re-enforced her belief that the Dublin three-bedroom house market is likely to be the first to show signs of ‘bottoming out’ in terms of asking prices.

Asking Prices Continue to Decline


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Portakabin Achieves Modular First with CE MarkPortakabin has become the first modular manufacturer to achieve CE Approval, the European prod-uct mark.

The Portakabin Ultima, Titan and Solus buildings have all gained European Technical Approval (ETA) following a series of rigorous tests and now carry the CE mark – the first modular build-ings in Europe to be awarded this independent verification.

CE marking is now manda-tory in continental Europe and is a declaration by the manufacturer that its products comply with all the production standards, safety requirements and provisions of the Construction Products Direc-tive 89/106/EEC and European Technical Approval Guideline 023 (ETAG 023).

The tests on the Portakabin buildings were carried out under strictly controlled conditions, and were independently verified by the British Board of Agrément (BBA). The Portakabin modu-lar buildings satisfied the essen-tial requirements of ETAG 023 for Mechanical Resistance and Stability; Hygiene, Health and

Environment; Safety in Use; Pro-tection against Noise; and Energy, Economy and Heat Retention.

Portakabin’s steel-framed mod-ular buildings range includes Ulti-ma Vision, a fully glazed modular

building available for hire, and Titan, the largest single modular building in Europe.

Retail Planning Guidelines May Restrict CompetitionPlanning consultant Tom Phillips has called for greater flexibility for retailers and more guidance for local authorities during the ongoing review of the Retail Planning Guidelines.

‘There seems to be an assumption that out of town retail develop-ments are always detrimental to town centre development but this is not necessarily the case,’ says Tom Phillips, managing director of Tom Phillips & Associates. ‘I believe there is too much emphasis placed on assessing the potential impacts on existing retail outlets and this can restrict balanced development.’

Mr Phillips also contends that the current cap on individual retail warehousing floor space of 6,000 square metres should be reconsidered. ‘In 2005 an exception was made for the development of IKEA, where the floor space was 30,500 square metres. As a specialist large retail warehouse within a sizeable population catchment area, this project has been very successful and has not had the adverse impact feared by some. This cap is restricting significant further inward investment into Ireland and depriving consumers of a truly competitive retail market.

There may well be more instances where the floor space cap can be lifted for appropriate development such as discount stores which are now established as a key component of the overall retail market.’

As part of the review of retail planning guidelines, the issue of car parking charges will be considered. Tom Phillips does not believe that edge of town retail parks should be compelled to charge for parking. Commenting on the increasing number of clothing stores in retail parks he notes that ‘many clothing stores are being forced to out of town locations due to the lack of suitable locations in town centre areas. The Guidelines should include clear provisions for local authorities to encourage them to make available for development underutilised or derelict town centre and edge of centre locations.’

The review process for the Retail Planning Guidelines 2005 is cur-rently underway following the publication of the Issues Paper by the Minister for the Environment, Heritage and Local Government, John Gormley, TD. Submissions from interested parties are invited by the closing date of 30 July 2010.


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Belfast Arts Centre Re-opens

Construction & Property News July 201010 News

Mike and Pat Glennon of timber processing firm, Glennon Brothers, are among the 24 shortlisted finalists for the coveted 2010 Ernst & Young Entrepreneur of the Year award.

The Irish programme, now in its 13th year, has been identified as one of the strongest world-wide and received over 120 nominations.

Glennon Brothers was founded in 1913 by William Glennon and his brother James. Wil-liam ran the business until 1943 when he was succeeded by his son Paddy - Pat and Mike Glennon’s father. Paddy was responsible for the growth and development of the business over the next 40 years. He was supported on the technological and engineering side of the busi-ness by his brother Mick. In the early 1990s Pat and Mike succeeded their father as joint man-aging directors and have since grown the busi-ness from €8m to an impressive €70m today. With facilities in Longford, Fermoy, Co Cork,

Arklow, Co Wicklow and Scotland, The Glen-non Brothers Group employs over 340 people directly and another 170 people indirectly in the areas of harvesting and haulage.

Chaired by previous award winner, Padraig Ó Céidigh, chairman of Aer Arann, the 11-strong panel of judges have chosen eight companies in each of three categories – international, indus-try and emerging. Glennon Brothers has been selected in the industry category. An immediate benefit to each finalist is a gateway to over 200 of Ireland’s leading entrepreneurs through the network the Ernst & Young Entrepreneur of the Year Programme provides. This year’s Entre-preneur of the Year CEO Retreat will facilitate a trade mission to the Shanghai World Expo. Accompanied by over 20 past finalists, the group of 50 entrepreneurs will also participate in leadership strategy sessions and be given the opportunity to engage in a series of one-to-one

meetings with Chinese business leaders. The 24 finalists will feature in a three-part series to appear on RTE in October, and the overall win-ner will be announced at a televised awards cer-emony on 21 October.

Through its plants in Ireland and Scotland, Glennon Brothers offers a one-stop-shop solu-tion, supplying both the Irish and UK markets with products for the construction, pallet wood and fencing industries. The Glennon Brothers Group is also a leading provider of timber frame homes and engineered roof trusses in the UK and Ireland through Alexander Timber Design based in Troon and Dempsey Timber Engineer-ing (DTE) based in Arklow.

The Group is committed to reducing its impact on the environment and has gained Forest Stew-ardship Council (FSC) certification for its prod-ucts across all timber processing sites that they are sourced from sustainably managed forests.

Glennon Brothers on Entrepreneur of the Year Shortlist

The historic Crescent Arts Centre building in Belfast has recently re-opened following an 18-month, £7.2m refurbishment and exten-sion programme.

International consultancy, WYG was appointed to the design team to provide civil and structural engineering consultancy services to the project. It involved refur-bishment of the existing Grade B1 listed building to provide office space, workshops, galleries, dance studios, and construction of a new multipurpose performance space with high levels of acoustic separation.

The construction of the new per-formance space entailed the design of a three-storey steel framed structure on piled foundations with high levels of acoustic sepa-ration. This required the installa-tion of specialist anti-vibration bearings between the pile caps and reinforced concrete ground beams to mitigate the vibrations from the adjacent railway line. Specialist acoustic hollow block was also used in the construction of the walls to achieve the acous-tic requirements.

As part of the refurbishment,

WYG specialist consultants con-ducted a detailed inspection of the existing unique timber elements

in conjunction with Trada Tech-nology. Several innovative timber repair techniques were adopted,

including traditional carpentry-based methods and resin-bonded repairs.

CPN July 2010.indd 10 22/07/2010 15:20:23

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39% of Company Failures in ConstructionA total of 360 or 39% of all com-pany failures occurred in the construction sector, according to recent figures released by FGS. This compares with 41% in 2008 and 35% in 2009.

To put these figures into con-text, there were nearly as many failures recorded within the sec-tor in the first six months of 2010 than were recorded in the previous two years combined. The failures in the construction sector are no longer restricted to medium-sized developers and/or subcontractors. 2010 continues to see a number of high profile collapses within the sector. The ongoing reduction in house prices, significant oversup-ply of units, the unavailability of credit for developers and purchas-ers all indicate that much uncer-

tainty is likely to prevail in the short term.

The number of Creditors’ Vol-untary Liquidations, High Court liquidations, receiverships and examinerships in the six months ended 30 June 2010 has increased by 25% on the same period in 2009. Figures compiled by FGS show that 912 companies were placed in liquidation, receiver-ship or examinership in the first six months of 2010, representing an increase (25%) on the 733 fail-ures for the same period in 2009. However, the acceleration in the number of failures in late 2009 and early 2010 has not continued in the 2010 half year figures. In fact, the number of failures in the second quarter in 2010 was 443 compared with 469 for the first

three months of the year. FGS say that it is probable that 1,850 to 1,900 failures will be recorded for the full year which compares with 1,570 failures in 2009.

A significant increase in the number of receiverships was recorded in the first six months of 2010 when compared with the same period in 2009. Between January and June 2010 finan-cial institutions/debenture hold-ers appointed receivers to 162 businesses as opposed to 79 in the same period in 2009. This represents a significant 105% increase. Furthermore, these fig-ures do not take account of cir-cumstances where receivers were appointed in respect of personal borrowings as opposed to loans and advances to limited liability

companies. A more realistic figure for total receiverships in the first six months of 2010 is likely to be closer to 200.

The utilisation of the examin-ership process has decreased sig-nificantly in 2010. A total of 21 companies had examiners appoint-ed to them in the first half of 2010 as opposed to 58 in the first six months of 2009. This represents a decrease of 64%. The number of High Court liquidations in the first half of 2010 was relatively static on the previous year with 57 official liquidators as opposed to 48 in the same period in 2009. Creditors’ Voluntary Liquidation continue to be the most common form of formal insolvency process accounting for 74% of all failures in the first half of 2010.

Construction & Property News July 2010 News 11

CPN July 2010.indd 11 22/07/2010 15:20:24

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The emerging evidence of a recovery in the office market in quarter one has been further underwritten by the perform-ance of the market during the second quarter of the year, according to the lat-est report by DTZ Sherry FitzGerald. Take up activity in quarter two at almost double that achieved in quarter one is very positive news for the overall office market.‘The uplift in enquiry levels from the closing quarter of 2009 has translated into an uplift in occupation levels in quarter two 2010,’ says Marian Finnegan, chief economist, DTZ Sherry FitzGerald. ‘This is best illustrated by the transition of net absorption from negative levels since quarter one 2009 to a positive net take up recorded during quarter two 2010. As such we would be cautiously optimistic that the worst is over for the Dublin office market.’ On a further posi-tive note the report comments that the quantity of space available in the Dublin office market fell during the second quar-ter of the year to stand at 743,300 square metres at the end of June. Although this

only represents a modest fall, it marks the first reduction in the quantity of avail-able space in over eighteen months.‘The decrease in overall availability for the first time in 18 months is testament to the improving market and shows that the pick-up in sentiment we have witnessed on the street over the past nine months is transferring into deals now,’ says Ronan Corbett, associate director, DTZ Sherry FitzGerald. ‘Furthermore the signifi-cant increase in the amount of reserved space and quantity of deals highlights the improving market. This trend is set to continue as the overall economy improves.’

Finally, the report notes the tightening of future supply with only 28,400 square metres under construction, all of which is due to be delivered in 2010. This is the lowest level ever recorded and it comprises speculative development in the prime central business district. Given the existing quantity of stock available in the market, DTZ are not anticipating signifi-cant new construction until 2012.

Office Market Uplift Reported

Construction & Property News July 201012 News

Booze Threatens ‘Stressed’ BuildersConstruction and property workers are more likely than any other profession to turn to drink as a way of coping with work stress, a new survey by UK health-care cash plan provider, Medicash, has shown.

The survey of 3000 people revealed that 47% of those in the industry, five times more than most other indus-tries, admitted to being so strung out at the end of the day that they needed a beer to help them to relax. The construction industry is also revealed as suffering from the highest rate of sickness absence with almost half of those surveyed saying that they had called in sick twice during the last month.

A total of 17% of those in the industry admitted to feeling stressed all the time and more than 50% admit-ted to getting drunk as a way of escaping work pressure. The situation is even worse for SMEs with those work-ing in small businesses twice as likely as employees in larger companies to turn to drink due to work-related stress

‘The survey results indicate a worrying reliance on alcohol to help cope with stress for many in the con-struction industry,’ says Sue Weir, chief executive of Medicash. ‘This, coupled with the fact that many in the industry operate outdoors in physically demanding roles, could go some way to explaining the high rate of sickness absence.’

CPN July 2010.indd 12 22/07/2010 15:20:25

n Profit and LossCRH expects to almost break even for the first half of this year, as a fall in its sales continued to ease. In a trading update earlier this month, CRH said it expected underly-ing sales for the first half to show a 10% drop com-pared with the same period last year, better than the 14% drop reported in early May. The company said it expected operating profit for the first six months to be around €240m, around half the figure in the same period last year. But it said pre-tax profit would be close to break-even, compared with a profit of €108m at the same time last year. The financial per-formance has been helped by cost-cutt ing, lower restructuring charges and a €10m boost from curren-cy movements. CRH also said it expected earnings before interest, tax depre-ciation and amortisation (EBITDA) in the second half of this year would be ahead of the previous year. But it warned that, although sales declines were eas-ing, the full-year fall would be ‘somewhat greater than previously anticipated’. CRH said it spent €133m on

13 acquisitions in the first half of 2010 and is invest-ing €19m in Yatal Cement as its share of funding for two projects in north-east China.Profits at Grafton rebound-ed in the second quarter after a poor performance in the opening three months of the year, the group said in a trading update this month. The harsh winter hit Grafton in the first few weeks of 2010. As a result, the group lost €25m in sales in January and €22m in the first quarter as a whole. In a trading update for the first six months of the year, Grafton estimated that turnover for the peri-od was €980m, only mar-ginally behind the €990m the group reported for the same period in 2009. ‘Prof-its recovered strongly in the second quarter relative to the first quarter of 2010 and the corresponding quarter in 2009,’ Grafton’s statement said. All the growth came from its builders’ merchants busi-nesses in Britain, which account for over half of its overall operations. Improving conditions in the new housing market there helped to drive that

growth, the company said. Sales in the builders’ mer-chants division in Ireland were down 22% in the first quarter of the year and 10% in the second. Over-all, group revenues grew one per cent in the second quarter after a fall of seven per cent in the first three months. In Britain, sales increased by four per cent in the second quarter fol-lowing a two per cent fall in the first quarter. At its annual general meeting in May, Grafton executives blamed the harsh winter for the poor performance in the first quarter and said trade had improved consid-erably since then. Grafton is in talks to refinance part of its €322m debt. The group has signalled that a refinancing deal will be concluded some time over the next three months. ‘The group’s f inancial position continues to be strong, with good liquidity and substantial cash flow from operations,’ its state-ment said. ‘The refinancing of the group’s debt is pro-gressing satisfactorily and on schedule. It is anticipat-ed that new arrangements will come into effect in the third quarter.’

Construction & Property News July 2010 News 1�

Sean Dunne Submits Revised Plans for JBC SiteSean Dunne’s Mountbrook Group has submitted revised plans for the redevelopment of the former Jurys/Berke-ley Court site at Ballsbridge in Dublin.

He has reduced the size of the planned hotel but made it taller, reduced the number of apartments proposed to 535, and improved the public and private open spaces proposed as part of the development. Mountbrook’s con-sultants, Tom Philips + Associates, said they had consid-ered ‘concerns’ raised by third parties before submitting the modified design. Billionarie businessman Dermot Desmond had dubbed the initial application ‘bland’ and ‘uninteresting’ while Dublin City Council said the hotel’s location would result in ‘serious overshadowing of the open space’.

If planning is granted construction cannot commence until 2012 at the earliest as the Mountbook Group is com-mitted to operating the D4 hotels until the end of 2011. Granting a 10-year planning permission would mini-mise ‘the transition period where the site would remain vacant’, the submission stated. However, it said it would be willing to accept an eight-year planning window to complete the proposed development as it will take five years to construct.

The first phase would develop 80% of the total base-ment area as part of the redevelopment of the former Berkeley Court and adjoining apartments. The second phase involves the redevelopment of the D4 Inn and D4 Towers and the remainder of the basement.

Netwatch will create 50 new jobs in operations and R&D over the next 18 months following the opening of its new corporate headquarters and command centre in Carlow.

The new HQ and command cen-tre is located in a former Irish Sugar premises and represents an invest-ment of more than €5m by the company. Netwatch provides real time remote security monitoring to businesses and private residences in Ireland and internationally.

David Walsh, managing director of Netwatch, said that the company is currently in advanced negotia-tions with the London Olympics to provide protection for critical com-munications infrastructure at the 2012 Olympic Games. ‘We have developed a unique wireless pro-

tection product for remote commu-nication masts which is currently being trialled at several locations,’ he said. ‘Securing contracts such as

these is what will ultimately make Ireland’s vision of being an inno-vation-led economy a reality.’

Established in 2003 by David

Walsh, managing director and Niall Kelly, director of technol-ogy, Netwatch currently employs 70 staff.

Netwatch Creates 50 Jobs in Carlow

Niall Kelly, founder and David Walsh, founder and managing director of Netwatch, at the opening of the cor-porate headquarters and command centre of Netwatch in Carlow

CPN July 2010.indd 13 22/07/2010 15:20:29

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For the last three consecutive years, Portakabin has successfully delivered approximately 40,000 square metres of modular accom-modation across the UK, includ-ing 110 education projects, in just eight weeks over the peak period for school building work.

Portakabin has provided interim buildings for a number of Build-ing Schools for the Future projects including schemes at Lea Manor School in Luton working with Wates Construction, as well as projects in Harrow, Haringey and Brixton. Portakabin also complet-ed two challenging projects after schools were devastated by fire. In just 10 weeks, Portakabin built an entire 6,000 square metre interim school for 800 pupils and staff at Campsmount School in Doncas-ter.

Pupils at Carleton Commu-nity High School in Pontefract achieved record GCSE exam results studying in a new interim school supplied by Portakabin. Here, 23 school buildings total-ling 4,000 square metres were sourced, fully fitted out, installed and occupied only six weeks from receipt of order, despite difficult site conditions and while meeting the school’s stringent design and logistics requirements.

Portakabin education build-ings for hire can be fitted out to accommodate a wide variety of applications, such as science labo-ratories, art rooms, dance studios, food technology rooms, IT suites, general classrooms, school or col-lege receptions, kitchen and din-ing facilities, and administrative offices.

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The level of lettings in the Dublin office market is encouraging but the medium to longer term out-look remains uncertain.

That’s according to CBRE’s second quarter Dublin Office Market View publication, which identifies and analyses trends in the Dublin office sector from April 2010 to June 2010.

According to the publication, €60m of office investments were sold in Dublin during Q2 2010, while prime office yields remain stable at approximately 7.5%. A healthy level of office take-up was achieved in Dublin in Q2 2010, bringing total take-up in the city in the first half of the year to almost 50,000 square metres.

The publication says that occu-piers remain extremely cost-con-scious, are focused on turnkey solutions and are showing a pref-erence for fully fitted accommo-

dation. Despite the fact that there is a large amount of vacant office accommodation in the capital, with the overall vacancy rate at 23.5% as of the end of Q2, much of this comprises floors in otherwise occupied buildings as opposed to empty buildings. There are no new office developments to come on stream in Dublin after the end of 2010. According to CBRE, 79% of current demand is focussed on city centre properties.

‘There has been an encourag-ing level of letting activity in the Dublin office market in recent months and we are on target to beat last year’s take-up level of 78,500 square metres,’ says Wil-lie Dowling, executive director at CB Richard Ellis. ‘However, despite the fact that transactional activity in the Dublin office mar-ket has been holding up well over recent quarters and there is a good

level of active requirements, the medium to longer term outlook still remains uncertain. Further consolidation in the financial services sector is a real threat while additional Government austerity measures are concern-ing. The three vital ingredients for a properly functioning office market - meaningful job creation, rental growth and the availabil-ity of funding - are all unlikely to materialise for some time. In the interim, the office sector will remain primarily reliant on com-pany expansions and relocations and with little net absorption occurring, vacancy rates will remain high.’

The combination of an uncertain economic outlook, high vacancy rates and constrained access to development finance mean that the start of the next development cycle in Dublin is still some con-

siderable way off, according to CB Richard Ellis. The property consultants say that even though prime rents are stabilising and the economy is showing some signs of improvement, it will take some time for speculative development to resume, even if the availability of development finance improves. If developers (and those funding them) remain cautious and refuse to develop new schemes without first securing pre-lettings, this will ultimately have implications for occupiers.

In addition to good levels of letting activity in the office sec-tor, the property consultants point to good demand for prime office investment properties in the capi-tal and report that €84m in invest-ment deals were signed in Q2, which brings total investment spend in the first six months of 2010 to €103m.

Letting Levels Encouraging, Says CBRE

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kom_fastdelivery_297x210en_McHal1 1 13.11.2009 12:19:44CPN July 2010.indd 15 22/07/2010 15:20:52

CF Unit May be Stalled as New Builder RecruitedPlans for a specialist cystic fibrosis treatment unit face the possibility of further delays after the hospital involved moved recently to recruit a new builder for the €20m-plus project.

St Vincent’s University Hospital, Dublin, is planning to build the block with the backing of the Health Service Executive (HSE), which will include specialist facilities for cystic fibrosis sufferers. The hospital recently sent a letter of intent to Michael McNamara & Co, the first step in completing a contract for the work, but that company subsequently said it had difficulty get-ting finance for the development within the time allowed. The hospital told the company recently it intended moving on to the next bidder. Michael McNamara & Co was led by businessman Ber-nard McNamara who stepped down from his

management and executive roles in January as a result of his own personal financial difficulties.

St Vincent’s has now sent a letter of intent to the next preferred bidder, John Paul Construc-tion. That company has 30 days to respond to the hospital’s letter if it wants to take up the contract to build the unit. The hospital is confident that the tender process can be brought to a conclu-sion over the coming weeks.

John Paul Construction is already building a private facility for St Vincent’s. However, that deal has no bearing on the firm’s selection as one of the preferred bidders for the project which includes the CF unit. That tendering process had to be carried out according to the HSE’s procure-ment rules and guidelines, as it is providing the money, even though the hospital is the actual

contracting party. The CF unit has been planned for some time

but a shortage of funding prompted the Gov-ernment to recommend the hospital tender for the work. Tenders were submitted late last year and St Vincent’s sent its original letter of intent in April to Michael McNamara & Co. The firm previously argued that the client was to blame for the delay, as it took four months to respond to the original tenders. Michael McNamara & Co also claimed that it was not given enough time to raise the cash needed for the project. The deal with St Vincent’s is based on the contractor get-ting the full sum once the work is completed. McNamara said that the ‘unusual nature’ of the contract meant that it needed more time to raise funds.


Straw House can Withstand Hurricanes Recent tests on the BaleHaus@Bath, a low carbon house made of straw bale panels at the University of Bath, has confirmed it is more than strong enough to withstand hurricane force winds.

The BaleHaus@Bath was built by industrial partners ModCell as part of a major research project to scientifically assess the performance of straw as a sustainable building material. The research team, led by Pro-fessor Pete Walker, director of the University’s BRE Centre for Innova-tive Construction Materials, has been monitoring the house since October 2009 for thermal performance and humidity levels and has now tested the structure of the house for resisting winds up to 120mph.

The wind load was simulated using hydraulic jacks which pushed horizontally against the walls with a total force exceeding four tonnes, equivalent to the dynamic force of a hurricane. During the tests, the walls moved no more than four millimetres under peak loads, well within design requirements and as predicted. The researchers will use this data to develop a theoretical computer model of the house to simulate how a three storey, or even higher, BaleHaus building would withstand such winds.

The ModCell BaleHaus system consists of prefabricated panels infilled with straw bales and is carbon negative in manufacture. Due to the high insulating properties of the panels, the BaleHaus minimises additional heating requirements and could reduce heating bills in housing by up to 85% and CO2 emissions by 60%. ‘Our research at BaleHaus@Bath shows conclusively that building with straw using the ModCell System is not only safe, secure and durable, it is also fit for the 21st century chal-lenge of reducing our CO2 emissions by 80% by 2050,’ said ModCell director Craig White. ‘The ModCell BaleHaus system combines the low-est carbon footprint and the best operational CO2 performance of any sys-tem of construction currently available. These tests will offer proof that renewable building materials are a realistic option for building on a large scale.’

Six local authorities are fac-ing independent reviews after the emergence of a number of complaints involving alleged irregularities in their planning approvals.

A team of independent experts will conduct the reviews on Dub-lin City, Galway County, Cork City, Cork County, Carlow and Meath after Environment Min-ister John Gormley was made aware of the complaints.

Although Minister Gormley said individual planning deci-sions would not be examined, the

processes and systems in opera-tion will come under close scru-tiny by the as yet unidentified team.

The review will assess whether the local authorities in question ignored best planning practice, or their development plans, while the experts can also call for a full-blown investigation of planning policy.

The local authorities will be asked to examine the issues raised with the department and to provide a detailed response within four weeks.

Councils Face Planning ‘Irregularities’ Review

Industrial Lettings DeclineThe Dublin industrial market saw a decline in industrial take-up on both a quarterly and annual basis over the last three months, according to CBRE’s latest Dublin Industrial Market View for quarter two 2010.

Take-up - both sales and lettings - came to only 19,364 square metres in Q2, with 98% of take-up occurring through lettings. Take-up in Q2, 2010 was down approximately 50% compared to Q2, 2009 but remained above the all-time low take-up levels seen at the start of 2009. Despite the slow-down in lettings and sales in the three months ending in June, the take-up seen in Q2, 2010 brings take-up for the first half of the year to 77,232 square metres, an increase of approximately 43% on the same period in 2009.

There was only one industrial sale in Dublin during the quarter, with the vast majority of industrial occupiers favouring short-term and flexible leases.

CPN July 2010.indd 16 22/07/2010 15:20:53

COURT HEARS MCKILLEN’S NAMA CHALLENGEThe challenge being taken by developer Paddy McKillen and his companies against the National Asset Manage-ment Agency is the first legal challenge to NAMA and will be watched keenly by all developers and businesses entering the NAMA process. The Commercial Court was told on 19 July that the very existence of the challenge poses a very real threat to the work of the agency. Lawyers for NAMA and the State asked the Court to fast-track a hearing of the challenge. Mr Justice Peter Kelly has set a trial date of 12 October.Mr McKillen is challenging the transfer of €80m in loans his companies borrowed from Bank of Ireland to NAMA. He said the loans are fully performing and the transfer would have a drastic and detrimental impact on his business and property rights. He is also concerned about the valuations placed on the loans by NAMA. In addition, he is seeking a declaration that parts of the act under which NAMA oper-ates are unconstitutional. Mr McKillen’s companies listed in the action are: Dellway Investments, Metrospa, Berkeley Properties, Maginot-grange, May Property Holdings, SCI 20 Place Vendome, Directdivide Trading, Submitquest, Belfast Office Proper-ties, the Forge Ltd Partnership, Finbrook Investments, Connis Property Services, Formcrest Construction, Ches-terfield (The Pavements) Subsidiary and Abbey Develop-ments. Several firms are registered in Northern Ireland and company accounts show that they have provided intercom-pany guarantees on loans from Bank of Ireland.The companies and Mr McKillen are challenging the pro-posed transfer to NAMA of credit facilities of €80m advanced by Bank of Ireland alone. The companies also have loans with Anglo Irish Bank and Irish Nationwide Building Society but the action relates to the Bank of Ireland facili-ties. Mr McKillen says he is reserving his rights relating to the other facilities.

The National Asset Management Agency (NAMA) has completed the transfer of the second tranche of loans from Allied Irish Banks, Bank of Ireland, Irish Nationwide Building Society and EBS. The Agency has acquired loans with a nominal value of €5.2bn. NAMA securities with a value of €2.7bn have been issued to the four institutions. This represents a weighted average discount of 48% for the four institutions on this tranche.

Loans will be acquired from the remaining institution - Anglo Irish Bank - over the coming weeks after all necessary due diligence material has been received and evaluated. To date, €20.5bn of loans has been acquired at a consideration of €10.4bn.

NAMA will return a profit to the tax-payer of €1bn in Net Present Value (NPV) terms under its central scenario where NAMA recovers the LEV (Long Term Economic Value) of the assets. That’s according to the agency’s business plan, published on 6 July, which details NAMA’s financial projections for its expected lifetime.

The percentage of loans which are ‘income producing’ (i.e. loans which are not at least paying the interest due on the monies borrowed) is, at 25%, significant-ly less than the 40% level indicated by the participating institutions last October. This has had a significant impact on the updated NPV figure. ‘To say the least we are extremely disappointed and disturbed to find that, only months after being led to believe that 40% of loans were income producing, the real figure is actually 25%,’ said NAMA chairman Frank Daly. ‘We are equally taken aback to learn that the banks were not even using the full range of legal options available to them in order to secure income in respect of trou-bled loans. The banks displayed a remark-able generosity towards their borrowers. NAMA has no intention of maintaining that approach. We will pursue all avenues to ensure the fullest possible repayment of all outstanding monies from relevant borrowers and we will work towards increasing the income stream for NAMA as soon as possible as part of the Debtor Business Plan review process.’

NAMA TRANSFERS TRANCHE 2 LOANS

Construction & Property News July 2010 News 1�

Participating institution

Nominal value of loans acquired

Value of securities exchanged for loans

Discount Discount%

Allied Irish Banks €2.73bn €1.40bn €1.32bn 48.5%

Bank of Ireland €1.82bn €1.13bn €686m 37.8%

EBS Building Society

€35.9m €19.3m €16.6m 46.4%

Irish Nationwide Building Society

€591m €163m €428m 72.4%

CPN July 2010.indd 17 22/07/2010 15:20:59


AIB is seeking €43m judgment orders against Galvin Develop-ments, a Kerry-based building company, and three of its direc-tors, over unpaid loans. The loans were issued for developments in Co Kerry which included a nursing home and 81 residential units. Mr Justice Peter Kelly transferred the case to the Commercial Court and also entered judgment for €13.2m against Limerick company Souter Enterprises.

Bank of Ireland has moved to take control of assets belonging to Paddy Shovlin. The bank is appointing a receiver over a siz-able amount of Paddy Shovlin’s assets, including a significant portion of his interests at the Sandyford campus, as well as cer-tain other property interests. The bank is appointing the receiver to secure large sums of money it advanced to the developer. The accountancy firm Mazars is act-ing as the receiver. Through his Landmark Developments group, Paddy Shovlin’s major projects include Beacon Court and Bea-con South Quarter in Sandyford. However, a number of Shovlin’s developments and investment, including certain leisure and hos-pitality interests, have not been affected by the move.

Ms Justice Mary Laffoy appointed Kieran Wallace and David Swin-burne of KPMG chartered account-ants joint provisional liquidators to Ridge Developments Ltd, with registered offices at Monahan Road Industrial Park, Cork, on 29 June. The company was incorpo-rated in 1993 and had a turnover of €75m in 2007. In December 2009, it had estimated liabilities of €14,886,413 and assets with a net book value of €10,859,964, leaving a shortfall of some €3,853,343.

Noel Smyth is faced with a poten-tial multimillion euro legal bill after he lost a €140m High Court action over a proposed develop-ment at the Square Shopping Centre in Tallaght last month. The High Court dismissed a claim

by Noel Smyth’s company, Red-fern, against Liam Carroll and two other property developers. The case ran for 63 days in the High Court and is among the most expensive commercial litigations to have taken place in the State in recent years. Liam Carroll and the other developers, Larry O’Mahony and Thomas McFeely, now intend to ask the High Court to have Noel Smyth pay the full trial cost. The cost motion will be heard in the coming weeks. Noel Smyth had sought €140m in damages against O’Mahony, McFeely and Carroll over alleged broken deals related to a proposed develop-ment at the Square. Mr Smyth had claimed that Redfern was in nego-tiation with McFeely and O’Mahony over an irrevocable licence to use all 18 acres of surface car parking around the Square. Noel Smyth needed the licence for a signifi-cant development of the complex. However, Smyth claimed that the two developers then engaged in secret negotiations with Carroll, who also had plans for the site. He claimed this delayed his project. In his reserved judgment, Mr Jus-tice McGovern found Smyth, his companies Redfern and Alburn,

O’Mahony and McFeely had all breached the good faith obliga-tions of the Redfern agreement by their conduct. However, the judge ruled that, when the agreement between Carroll, O’Mahony and McFeely was concluded in Sep-tember 2006, the Redfern agree-ment was no longer subsisting. In those circumstances, Redfern had failed to establish a breach of con-tract or procurement of a breach contract and no damages liability arose.

Bernard McNamara has launched a challenge against a petition to declare him bankrupt. The High Court heard on 12 July that McNa-mara, who has debts of €1.5bn, is seeking to have a bankruptcy peti-tion dismissed, claiming that he is owed 50 times the sum due to the two individuals who are pursuing him. Ivor Duogan and Gary Smith claim they are owed €2.24m from McNamara relating to a proposed shopping centre development off Grafton Street, Dublin. Mr Justice McGovern adjourned the matter until 26 July.

In the Commercial Court, Anglo Irish Bank has secured summary judgment for €26m over unpaid loans given to Brendan Murtagh. The bank took the case against the businessman for repayment of loans made to him between 1999 and 2009 for commercial dealings in properties and shares. Anglo said it had given Brendan Murtagh time to restructure his interests in the hope that he might be able to deal fully with the debt. No repay-ments had been made since last March, however, at which time the bank became aware of other proceedings taken by private investors against Brendan Mur-tagh. The former Kingspan direc-tor was once worth €271m but now has liabilities of €353m and the Anglo court case is the latest in a series of actions against the businessman. In April, a receiver was appointed over his €830,000 pension pot while Anglo has security over Murtagh’s shares in Kingspan, estimated to be worth €26.4m. Judgments totalling €60m have also been registered against him, most of which relate to his involvement in the property firm Howard Holdings.

n Troubled Traders

CPN July 2010.indd 18 22/07/2010 15:21:01

Construction & Property News July 2010 Construction Act 19

Prompt and proper payments for contractors and subcontrac-tors alike along with a cheap and timely dispute resolution mechanism – that is what the CIF’s proposed Construction Act is trying to introduce into the construction industry. If the federation is successful in getting the government to accept its amendments to Senator Feargal Quinn’s proposed Construction Contracts Bill, such legislation could provide a beacon of hope for an industry that is getting precious little support from government in its effort to stay afloat. Maev Martin reports.

Widespread non-payment in Irish construction and the knock on effect in terms of protracted and expensive dispute resolution procedures is creat-ing cash flow problems for construction companies around the country. In addition, prolonged disputes severely affect project implementation. ‘The CIF has been concerned about the issue of payments under construction contracts for some time,’ says Don O’Sullivan. ‘We were concerned that developers weren’t paying main contractors and main contractors weren’t paying subcontractors and this was impacting further down the supply chain. Since September 2009 we have been looking at possible solutions to the problem. We now want the government to introduce a Construction Act that will address the late payment, under payment and/or non-payment to contractors and subcontractors in our industry.’

The alternative dispute resolution mechanisms that exist in construc-

tion contracts to resolve disputes must be gone through before the dispute goes to court. However, the problem is that it takes too long for those ADR mechanisms to be worked out. ‘It is six months on average for conciliation and up to two years for arbitration and the disputed debt can’t be enforced until those procedures are exhausted,’ says Don. ‘In addition, 90% of all disputes are settled on the eve of the arbitration after all procedures have taken place and high legal costs have been incurred. Regarding the expense incurred in arbitration, it isn’t economically viable to pursue amounts of money of less than €250,000. The dispute resolution costs are often in excess of the dispute value and heavily discounted settlements are com-mon. This is where one party offers another party half the amount due as full and final settlement and they accept this because they feel they have no other option. This practice has a knock on effect for the entire construc-tion supply chain. If it becomes widespread it leads to a significant loss of revenue to the State as companies go out of business.’

What’s the solution?The CIF has been examining tried and tested solutions to the aforemen-tioned problems which exist overseas. The first option that they have looked at is the construction liens approach which was introduced for pri-vate sector construction contracts in the US. ‘If the contractor puts work or materials into a building and they haven’t been paid they can ask the court to give them a lien on the title of the building,’ says Don. ‘This means that it can’t be sold or leased until payment has been made. Our Consti-

Changing the Trading Landscape

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Construction & Property News July 201020 Construction Act

tution is strong on private property rights so it might be difficult to introduce this in Ireland but we haven’t ruled out the introduction of this measure at some stage in the future. The other option that we examined was the Miller Act, also in the US, which stipulates that on pub-licly funded projects the main contractor takes out a bond guaranteeing payment to the supply chain. Again, we haven’t ruled out the possible introduction of this measure in the Irish con-struction industry. However, we believe that the UK approach is the option that is best suited to the Irish construction industry and we hope the government will embrace this approach in the proposed Construction Contracts Bill. The CIF executive body agreed to adopt the UK approach in principle in November 2009.’

The UK’s Construction Act was enacted in Britain as part of their Housing Grants, Construc-tion and Regeneration Act 1996 and it became a statutory requirement in January 1998. Many other common law jurisdictions have followed the UK example and enacted Construction Act type legislation, including New Zealand, Sin-gapore, Malaysia and the Australian States. The UK Act applies in England, Wales, Scotland and Northern Ireland.

‘Some might question whether legislation is required to solve the payments and disputes problem that exists in our industry,’ says Don. ‘They might argue that these issues could be addressed by making amendments to existing construction contracts and a Construction Act would only require minor amendments to the existing standard forms of contract and sub-con-tract (public and private sector) whether they are GDLA, FIDIC or the 2007 Public Works Contracts. However, the CIF is convinced of the need for legislation because we believe that peo-ple will contract out of the benefits that the Act would give if it is left between the parties so it has to be a legislative, not a contractual, solution. The objectives of a Construction Act would be to facilitate regular and timely payments between parties to a construction contract, to provide a speedy cost-effective dispute resolution mecha-nism and enforceable remedies for the recovery of payment, and to create a more effective and efficient construction industry. The Act will not adversely affect organisations that routinely dis-charge their obligations in a timely manner.’

uK ConstruCtion aCt – Main Provisions

The UK Construction Act states that every con-struction contract must contain the following elements:

•Payment by instalments – except for projects of less than 45 days duration

•An adequate mechanism for determining

sums due and when•A due date for payment and a final date for

payment•Prior notice of sums due and their make up

– the contractor must give the employer notice of the sums due and how they are made up

•Prior notice of intention to withhold payment, giving grounds and amounts (ie, ‘set off’)

•Suspension of works (by seven days’ notice) for non-payment of sums due – Don points out that this provision is a big departure from exist-ing contracts in Ireland where work has to con-tinue while the contractor tries to get money from the employer

•‘Pay when paid’ clauses are prohibited, except in insolvency (ie, the end client) which means that once a party agrees to pay someone, payment to a supplier cannot be conditional on their receiving money from someone else.

•Provision for adjudication – this is the most

important provision in the UK Construction Act.

adjudiCation

Adjudication is a summary process by which disputes between the parties to a construction contract are decided by a third party adjudica-tor. The adjudicator’s decision is binding on the parties until the dispute is finally determined by arbitration or agreement. All contracts must contain an Adjudication procedure which com-plies with the Act.

The basic requirements of the Construc-tion Act relating to adjudication are: that either party can give notice of adjudication at any time regarding any dispute or difference; the contract must provide a timetable for appointment of the adjudicator within seven days; the adjudicator must make a decision within 28 days (up to 42

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Construction & Property News July 2010 Construction Act 21

days if referring party agrees); the decision of the adjudicator must be bind-ing until the dispute is finally resolved, and the parties may agree to accept the adjudicator’s decision as final but only after the adjudicator’s decision is known.

‘The adjudicator’s decision is not designed to be final or forensic – it is an interim decision but after the adjudication the parties can go on to conciliation or arbitration or to court if they wish,’ says Don. ‘If the result is different that result will override the adjudicator’s decision. However, the experience in the UK is that well over 90% accept the adjudication and few carry on to the expensive ADR options.’

ConstruCtion aCt sCheMe

What if someone enters a contract that doesn’t include the aforementioned provisions that are stipulated in the Construction Act? Where a contract fails to provide the elements laid down in the legislation, the Construc-tion Act Scheme takes effect. ‘The scheme sets out the default provisions which will apply in the case of non-compliant contracts or if there is no contract,’ says Don. ‘The main provisions of the Construction Act Scheme are: a monthly interim payment; a due date seven days after the end of the

relevant monthly period or making of the claim, whichever is later; a final date for interim payment 17 days after the due date; a notice of the amount due not later than five days after the due date, and a notice of intention to withhold not later than seven days before the final payment date.’ The Construction Act Scheme also has defaults for adjudication if it doesn’t exist in a contract between parties. The default provisions if the contract is silent on the adjudication procedure are as follows: written notice must state the nature and description of the dispute and the parties involved; details of where and when the dispute has arisen; the nature of the redress sought, and the names and addresses of the parties to the contract. The appointment of the adjudicator must be within seven days and the parties have the same seven days in which to submit full documentation. ‘The oral evidence is limited to one representative – at arbitration you could have several representatives from the one company at high costs,’ says Don. ‘Also, the adjudicator’s decision is made within 28 days or 42 days with the referring party’s permission. Both parties are equally responsible for paying the adjudicator’s fees if they are not determined by the adjudica-tor. Also, both parties will incur their own costs, regardless of the result of the adjudication. This is an important provision because it discourages the small subcontractor from being reluctant to go into disputes with bigger contractors. The adjudicator’s decision is binding, pending final determi-nation. The parties must comply with the adjudicator’s decision immedi-ately and, if they don’t, within 50 days at most, the adjudicator’s decision is an enforceable debt in the courts.’

Senator Feargal Quinn introduced a Construction Contracts Bill in the Seanad on 19 May, after the payments problem was highlighted to him by Sean Gallagher, managing director of Smarthomes. Mr Gallagher has been campaigning on the payments issue for some time (see October 2009 issue of Construction & Property News).

Don O’Sullivan points out that measures contained in Senator Quinn’s Bill fall far short of what is being proposed in the CIF’s Bill. ‘He is calling for the inclusion of only three of the provisions in the UK Construction Act to be included in equivalent Irish legislation whereas we believe that the Irish legislation should mirror the UK provisions as closely as possible because it has worked well for the construction industry in the UK,’ he says. ‘We want his Bill to be amended to incorporate all of the other provi-sions that are part of the UK legislation along with a couple of additional measures that are not in the UK legislation but which we feel are necessary to protect contractors and small builders in Ireland.’

Contracts with residential occupiers are excluded from the provisions of the UK Construction Act. This means that if a small builder is doing an extension for a home owner, he or she is excluded from the provisions of the Act. ‘We don’t agree with that because the smaller builders and their clients are some of the parties that need a cheap way of resolving disputes,’ says Don. ‘Secondly, we think that that the Act should contain some provi-sion whereby parties to a construction contract are required to put in place a level of surety that they will be able to fulfil their obligations. This pro-vision would protect the contractor. The CIF will draft its own Construc-tion Contracts Bill with the appropriate legal input and we will make that available to Senator Feargal Quinn and to the government. That process is underway and is well advanced and I expect it will be presented before the Builders Holidays (19 July to 2 August inclusive). Minister of State Martin Mansergh has given a commitment that the government will come back with their proposals on the content of the Bill by 15 October. We hope that the government will include all of the provisions that are in the UK Act, along with the CIF’s additional provision, in the final version of the legislation. Cash flow is the lifeblood of the construction industry and adjudication has improved cash flow immensely in the UK. It has resulted in contractors spending less time engaged in disputes and consequently led to a more timely performance of construction projects.’

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Construction & Property News July 201022 Disputes

As head of Alternative Dispute Resolution (ADR) practice Behan Dispute Resolu-tion, Joe Behan is dedicated to promoting and increasing the use of non-court dispute resolution methods such as arbitration and mediation. He talks to Maev Martin about the types of conflicts that have been aris-ing in the Irish construction industry and the methods that are being used to resolve them.

The current economic climate has given rise to more conflicts and disputes than ever in this country across all commercial and industry sectors. For this reason, Joe believes that it has never been timelier for people, including those in the construction industry, to become more aware of alternative dispute resolution proc-esses. Behan Dispute Resolution currently has a total of 70 disputes on its books – in excess of 30 of them are construction-related.

‘When it comes to the construction industry, there has been an avalanche of disputes over the past two years, particularly over the past 12 months,’ says Joe Behan. ‘The disputes that I have been dealing with involve main con-tractors in dispute with subcontractors, main contractors versus clients, and clients versus their design team. I attribute the increase in construction disputes to the fact that the future has dried up for a lot of people and all they are left with is the past. During the boom years, construction companies used the future to get past their current difficulties and that was how business was done but when there is no future people become anxious. Also, a lot of business transacted between 2005 and 2007 was done on a wink and a nod. For example, I concili-ated on two disputes within the past two years where there was no written contract and the value of the contract was almost €100m in each case. One of the disputes has gone to the courts and the other one will go to arbitration. How-ever, it is important to note that this trend is not confined to the Irish construction industry. Increases of 30% and over have been registered with disputes resolution organisations all over the world and the global recession is the main reason for this.’

Most of the construction disputes that Joe handles relate to non-payment. ‘In the past, subcontractors would never have taken main contractors into arbitration because they didn’t see it as being in their best interest but

that has changed completely and the CIF has been deluged with those disputes,’ he says. The objective of the Construction Contracts Bill, proposed by Senator Feargal Quinn, is to create cash flow in Irish construction, which is what similar legislation has achieved in the UK con-struction industry. ‘The existing processes for arbitration and conciliation don’t facilitate cash flow,’ says Joe. ‘The 2009 Adjudication Act in the UK covers every element of disputes. It has yet to come into force but when it does it should

be very effective because with an adjudication system, when you get a decision, the money has to be paid irrespective of whether it goes to arbitration. Clause 13.1.11 in the Public Works Contracts provides that, following a dispute, once a recommendation is made that money has to be paid even if the conciliation falls apart so that principle already exists for government contracts but not in the private sector. Of course the provision in that clause is subject to a bond so it is stacked in favour of the big government

The Honest BrokerJoe Behan

CPN July 2010.indd 22 22/07/2010 15:21:17

employer and the larger main contractors.’In Joe’s experience, who are the main culprits

in construction disputes? ‘It depends on who you ask in the industry!’ he says. ‘Contractors will claim that architects are most culpable, fol-lowed by engineers and then quantity survey-ors. The architects will blame the contractors and the client will blame all of the above! In my experience disputes are usually down to a lack of communication and unclear provisions in contracts.’

neW trendsWhile arbitration is utilised in the majority of disputes, the use of the mediation and concili-ation processes are on the increase. ‘People are now more conscious of trying to resolve dis-putes quickly and avoid huge costs because arbitration can drag on,’ he says. ‘In the past construction disputes went directly to arbitra-tion and now mediation has come into the CIF’s subcontractor contracts for non-government works and conciliation has come into the new government contracts where it was just arbitra-tion. Also, people are looking at ways of resolv-ing disputes that bypass the dispute resolution provisions of contracts. In addition, people can be in arbitration and can maybe put the arbitra-tion process on hold for a while as they pursue mediation/conciliation discussions privately. That has become a very common practice. There is no mandatory mediation but the courts have been encouraging it hugely and the Cir-cuit Court has been empowered to recommend mediation and arbitration whereas previously only the High Court recommended mediation.’

PubliC WorKs ContraCtsWith new forms of construction contracts and new legislation coming on stream, the country is now in a major transition period regarding dispute resolution. ‘The new Arbitration Act came in on 8 June, we may have a new Con-struction Contracts Bill that would bring in adjudication in construction disputes in Ire-land, and we have the Department of Finance’s “new” form of Public Works Contract, which was introduced in 2007,’ he says. ‘Disputes arising from the “new” government contracts are coming on stream now but, in addition, we are still dealing with disputes arising out of the old GDLA contracts. Also, there are two major disputes that I’m aware of under the FIDIC contract – one relates to a major road contract and the other relates to a major rail project.’

Joe’s firm currently has five disputes on its books relating to the ‘new’ government con-tract. ‘Two of them are main contractors in dis-pute with subcontractors and the other three are

employers who are in dispute with main con-tractors – all five are in conciliation,’ he says. ‘Clause 10.3.1 in the new contracts, which relates to Contractors’ Claims and the issue of when to give notice of a claim, is very problem-atic for the industry. The wording of this clause is being used by employers and main contrac-tors to kill off claims by saying that notice wasn’t given on time. I’m dealing with a €9m claim which involves a main contractor and a subcontractor over the issue of when a notice of a claim should have been given. I’m hear-ing that, with most of the claims being made by contractors under this clause, the engineers on the projects are saying they are out of time when they make their claims and therefore the claims are invalid.’

ContraCt reforM Joe reports that, as areas of the new contracts are becoming recognised as having loopholes, those loopholes are being closed by the govern-ment. ‘There have been few, if any, arbitrations under the new contracts but the Department of Finance is entitled to retain and read any awards and file them away,’ he says. ‘They are then in a position to monitor where arbitrators are find-ing problems in the contracts. They can then plug those gaps or clarify any unclear areas. I think the practice of the outcome of arbitra-tion awards being automatically retained by the Department should be stopped because it could create a fear among arbitrators and conciliators that future appointments will be stymied if they continually go against the public sector in their decisions.’

Joe also believes that by listening to the con-cerns of the construction industry and reform-ing the public works contracts the government could reduce their costs in relation to disputes. ‘The shift of risk completely to contractors is not right,’ he says. ‘We will see considerable difficulties with contractors who have taken on risk unwittingly and it will create problems in terms of completing projects. People are ten-dering at extremely tight margins and they are taking on huge risk so you don’t need a crys-tal ball to know where that will lead. There is scope for reform of the existing contracts but I would be surprised if it happens because the

government sees no benefit to them to do so at the moment. However, that may change as more and more projects are completed under these new contracts and it becomes apparent that their provisions are creating problems for construction firms.’

infrastruCtural investMent Joe has worked as a structural and civil engi-neer for the past 36 years and heads up his own Dublin-based practice of JP Behan Associ-ates Consulting Civil & Structural Engineers. Allied to the 15 years that he has spent work-ing in dispute resolution, his engineering back-ground and experience means he has a strong interest in seeing the government take imme-diate measures to arrest the current freefall in construction. ‘I appreciate that the government is spending a lot on the capital side but we must keep up with our competitors in terms of infra-structure,’ he says. ‘There is a rumour that they will drop €1bn off the capital programme this year and that would be a disaster.’

He points out that construction has been represented as an industry of big developers and has therefore become too associated with developers in the public mind. ‘The reality is that it is much broader than that and that most general contractors were only making three per cent to four per cent margins during the boom,’ he says. ‘The public perception is that everyone made vast profits. Also, the construc-tion professions have been wiped out and for-gotten about in this crash.’ A survey carried out earlier this year by specialist recruitment consultants Hay Ireland (see February issue of Construction & Property News) revealed that three in five employees in architectural compa-nies have lost their jobs since 2007. ‘If 60% of doctors in Ireland had no work in the morning they wouldn’t be quiet but there is no voice for the construction professions to highlight their plight,’ he says. ‘There is no kicking or scream-ing being done by the professions, either indi-vidually or collectively. It is sad to see so much brain power leaving the country at all ages and all levels in our industry.’

Joe Behan is a council member of the Irish Commercial Mediation Association and a cer-tified mediator with the International Media-tors Institute. He is a practitioner member of Mediators Institute Ireland. He sits on a number of institutional and industrial panels of mediators and arbitrators, including those for Engineers Ireland, the Law Society, Con-struction Industry Federation and the Char-tered Institute of Arbitrators (CIArb). He is world president of the CIArb for 2010.

Construction & Property News July 2010 Disputes 2�

‘I conciliated on two disputes within the past

two years where there was no written contract and the value of the contract

was almost €100m in each case.’

CPN July 2010.indd 23 22/07/2010 15:21:18

Ireland could be the world’s ‘leading green exporter’ in 10 years if the right structures are put in place to support Ireland’s strategy to develop the Smart Economy.

That’s according to the Irish Wind Energy Association.

Speaking at the IWEA’s ElecTEC 10 con-ference on future electricity technologies on 11 June, IWEA chief executive Dr Michael Walsh said that such are the renewable energy opportunities ahead for Ireland that we could be exporting as much renewable energy as we use by 2020.

Dr Michael Walsh said that, if generation capacity is met, we could export up to 5,000 MW of renewable energy generation in 10 years, which will be more or less what we will require ourselves. These resources could gen-erate an annual export value of over €2bn for Ireland.

Dr Walsh said that the real opportunities for Ireland lie in the supply of advanced services to the ever growing global renewable market. ‘Ire-land is leading the move from traditional methods of delivering energy to clean new sophisticated models,’ he said. ‘Already this year, there were days when we delivered over half of the power

in Ireland from wind generators…. By 2015 there will be over €1trillion spent annually on the development of renewable energy. If we continue our leadership in research and innova-tion we will be supplying significant volumes of the high value expert services that this sec-tor will require. There is no limit to the potential size of this market and I believe that the leading lights of this new sector will come from Ireland if we continue to innovate and develop ahead of the curve. We can easily become Europe’s big-

gest energy farmers. The challenge is to become the world’s best energy chefs using our skills to transform nature’s resources into a healthy product that satisfies the world’s energy appe-tite. The real key for Ireland is to put in place the conditions that will allow Irish innovators and entrepreneurs to develop companies that can commercialise these technologies and export them globally. IWEA is calling on the govern-ment to implement these ideas in a National Renewable Energy Action Plan.’

Ireland - the World’s leading ‘Green Exporter’ by 2020

The current number of 117 wind farms will rapidly increase over the coming decade to 361 as the Government races to meet EU targets which oblige us to produce 40% of all electricity needs from renewable sources by 2020.

However, the controversial structures will be unevenly spread throughout the country with the bulk on the west and south coasts. Kerry will have no fewer than 66 wind farms by 2020, followed by Donegal with 52 and Cork with 46. Cavan, Longford and West-meath will have just one each, while none are planned for Carlow and Kildare.

Projects totalling €900m are under con-struction or in the planning process.

National grid operator, EirGrid, which is responsible for connecting the wind farms with the electricity transmission system, plans to construct 1,000km of high-voltage power lines, which will increase the capacity of the grid by 50%. The lines will run from Donegal to Sligo, Mayo to the east, Kerry to

Cork and Cork to Dublin.EirGrid says that Ireland was on track to

meet a 15% renewable energy target for this year. A total of 1,379MW of power from renewables is already connected - enough to power almost 1.4 million homes. Eir-Grid operates a ‘Gate’ system, where farms are connected in stages and over a period of time. The Gate 1 process is almost com-plete and projects in Gate 2 and Gate 3 will be connected as the grid is upgraded. This will result in 6,567MW of power being con-nected, assuming the projects go ahead as planned.

The Irish Wind Energy Association (IWEA) says that some projects already with planning permission are not guaranteed a connection because they were outside the Gate process. Projects totalling 11,000MW are outside the Gate system.

The cost of building a wind farm runs from €1.8m per MW for onshore and up to €4m for offshore projects.

Over 200 Wind Farms Built by 2020Go-Ahead for €120m Wind FarmBórd na Móna has received planning permission from Offaly Co Council for a €120m wind farm at its peat production site in Mountlucas in the county.

The proposed development forms part of Bórd na Móna’s long-term strategy to develop a portfo-lio of generating assets, including wind farms and a complementary flexible thermal plant.

The Mountlucas wind farm will have a generat-ing capacity of 80 megawatts and will be capable of supplying power to up to 45,000 homes.

An application for connection of the wind farm to the national grid has been made to EirGrid. It is scheduled to get an offer for connection to the system in early 2011.

The wind farm will comprise 32 wind tur-bines, access track-ways, crane hard-standings, underground cables between the turbines and a 110kV electricity substation. It is expected that the construction of the wind farm will take place over 18 to 24 months and will involve 30 workers employed on the project at peak

Construction & Property News July 20102� eNerGyFOCUs

CPN July 2010.indd 24 22/07/2010 15:21:27

Minister for Communications, Energy and Natural Resources Eamon Ryan officially launched the B.E. Programme in Energy Systems Engineering on 28 June at NUI Galway.

The new course, which will be based in the new Engineering Building currently under con-struction at NUI Galway, has been developed in partnership with key members of the energy indus-try including: ESB, GE Energy, Airtricity, Bord Gáis, Wavebob, a wave energy technology com-pany, and consulting engineering practices Arup and RPS.

The new course on offer has been developed to meet a range of requirements of the ‘Green Tech’ sector and will play a key role in furthering the Govern-ment’s Smart Economy agenda. Graduates of the programme will be multidisciplinary engineers equipped to solve problems across the whole spectrum of energy sys-tems.

The strong links with industry provides the degree programme with very practical routes. The partnership will also support inno-

vation and technology transfer, working with a cluster of energy companies in the West of Ireland including Wavebob, Eirecom-posties, Enerit, and C&F Engi-neering.

The Energy Systems Engineer-ing programme will incorporate aspects of traditional civil, electri-cal and mechanical engineering, with emphasis on energy policy, economics, environmental issues and a strong focus on informatics. The multidisciplinary programme will culminate in integrated design projects that address the sourc-ing, conversion and utilisation of energy. Subjects on offer will also include strong elements of civic engagement and service learning, with, for example, student volun-teers travelling to India and Africa to install solar systems. Students are also required to study a broad range of related subjects, includ-ing economics, sociology and politics, and law and science.

‘The B.E. in Energy Systems Engineering at NUI Galway is designed to meet Ireland’s future demand for graduates in the emerg-ing energy sectors,’ said Professor

Gerry Lyons, Dean of Engineering and Informatics at NUI Galway. ‘These energy graduates are criti-cal to Ireland’s recovery and can play a crucial role in the emerging fields of renewable energy and smart grids.’

Dr James J Browne, president of NUI Galway, said that the

new Engineering Building on campus, due for completion next summer, incorporates many sus-tainable energy and environmen-tally friendly features. ‘In itself, the building will provide a real-life experimental environment for students of the new programme,’ he said.

Energy Systems Engineering Programme Launched

Minister for Communications, Energy and Natural Resources, Eamon Ryan, Professor Ger Hurley, NUI Galway and president of NUI Gal-way, Dr James J Browne as they charge the Bord Gáis electric car in the newly dedicated on-campus parking for electric and hybrid vehicles. The Minister was on campus to officially launch the B.E. Programme in Energy Systems Engineering.

Bank Funds Tyrone Wind Farm DevelopmentBarclays has announced that it has completed £35m in long-term funding for a 20 Mega-watt (MW) wind farm in Screggagh, Co Tyrone.

‘This deal is the first large scale wind farm deal on the island of Ireland in 2010 to date, and we are currently working with a significant number of developers in the sector across the island proving our commitment to the sector,’ said Niall Quinn, Barclays corporate head of structured finance, based in Barclays offices in Belfast, noting that Barclays has a long established record in the financing of wind farm projects in Northern Ireland, the Republic of Ireland and internationally.

In addition, the wider Barclays Group has played a significant role in the develop-ment of energy generally in Ireland and to-date has provided financing for over £2bn of projects in the energy sector. ‘Screggagh Wind Farm is delighted to have raised this fund-ing and would like to thank Barclays for its assistance and guidance in achieving this,’ said Doreen Walker, of Screggagh Wind Farm. ‘The funds raised will be used to con-struct eight 2.5MW wind turbines capable of generating energy equivalent to the average electricity consumption of approximately 10,000 homes annually. Construction on the project will complete in 2011.’

ESB to Buy NI Electricity BusinessESB is to buy the Northern Ireland Electricity networks business from Viridian for €1.2bn. The purchase also cov-ers associated businesses which provide electrical con-struction and maintenance services.

The NIE Group employs 1,300 staff and is owned by the Viridian Group which runs the generation and supply busi-ness Energia and operates wind farms and the Huntstown power station in north Dublin.

The €1.2bn deal will see NIE continue to operate under its own brand but ESB says the link will help both the Irish and Northern Irish governments to hit their policy and environmental objectives in developing renewable gener-ation and smart metering and ensuring security of supply.

The deal still has to be cleared by both Irish and British competition authorities but it is expected to be complete by the end of this year.

Construction & Property News July 2010 eNerGyFOCUs 2�

CPN July 2010.indd 25 22/07/2010 15:21:39

Concrete has a major role to play in the development of electricity gen-eration and distribution in Ireland. This can take place in four distinct areas –

•Onshore windfarm construction•Offshore windfarm construction•Electrical switching stations and distribution power lines•Support structure to feeder lines for electric railways.It is now government policy to develop the generation of electricity

from ‘renewable’ resources such as wind, wave and hydro to reduce our dependence on external sources of fossil fuels. Our unique geographical position at the edge of Europe, bordering the vast Atlantic with unceas-ing winds and waves, is recognised and being developed. Unfortunately, we are proceeding at a very slow rate compared to several of our EU neighbours.

Currently, close to 2000MW renewable power is being generated but to comply with our CO2 reduction obligations this needs to grow to at least 6000MW in the next decade. This should guarantee considerable activity in the construction and concrete industries but obstacles to the realisation of Ireland’s full potential for renewable power must first be removed.

Cumbersome outdated planning laws and unsuitable grid configura-tion are long recognised as frustrating development but progress to rem-edy these issues is painfully slow. It is imperative that those responsible grab the nettle of reform immediately. With enlightened leadership, Ireland could be a net exporter of electricity within a decade but both national and international investors are growing increasingly tired of our extraordinary maze of home grown red tape and obstacles.

So far, only the ready-mixed concrete industry has benefited from on-shore windfarm construction, typically supplying 200 to 250m3 for each foundation base, usually using CEM IIIB to limit thermal cracking. However, the pre-cast concrete industry needs to be doing more to secure a bigger share of this expanding market.

To date, the vast majority of installed support towers for wind turbines here are tubular steel – 30 metres to 40 metres being a typical height but twice that can be achieved. These are prefabricated and brought to site, so the longer they are the more problematic transportation is, particularly on twisty country and mountain roads.

However, there is no reason that such towers cannot be constructed of concrete and, in recent years, more and more examples are appearing. The photograph shows a 70 metre precast concrete tower supporting a 2.3kW wind turbine with 35 metre blades at a windfarm near Boursdorf in Luxembourg. The semi-circular precast concrete sections typically are two metres by four metres and are assembled on-site to form the tower. Obviously, transporting units of this size presents fewer problems than long tubular steel units. Two of these concrete towers were erected at Munster Joinery, Ballydesmond in Co Cork a number of years ago and at the moment similar towers are being installed at Castledockrell, Co Wexford.

Regrettably, all these pre-cast concrete units have been manufactured

by david reddy

Windfarms Should Use Irish Concrete

Construction & Property News July 20102� eNerGyFOCUs

CPN July 2010.indd 26 22/07/2010 15:21:47

elsewhere and imported. This importation of pre-cast continues an unfortunate trend revived by some recent Transport21 projects where some public funding was invested while estab-lished pre-cast factories laid off staff. Concrete sleepers for Luas extensions to Cherrywood, Citywest and The Point were all made in Ger-many. Similarly the sleepers for the re-instate-ment of the Cork-Midleton commuter railway were German supplied.

The trend in windfarm development is for larger turbines with bigger blades and higher towers. Higher towers widen the availability of suitable sites adjacent to existing grid distribu-tion, as the size means that high ground is no longer absolutely necessary. This particularly applies in the midlands where Bórd Na Móna is becoming very active in renewable power generation. Higher turbine output also means more efficient use of towers. A problem with many of the best land-based sites is access for construction and a convenient connection to the national grid.

In their comprehensive 2007 report Concrete Towers for onshore and offshore wind farms(1), The Concrete Centre and Gifford & Partners outline several options on design, production and erection of concrete towers. The excellent publication Concrete Wind Towers(2) is avail-able to download at www.concretecentre.com/ publications. The three basic concepts are: pre-cast units only, precast lower tower with tubular steel upper tower, and cast in-situ slipformed.

Offshore windfarm construction was the subject of a recent seminar in Dublin organ-ised by the National Offshore Wind Associa-tion (NOW). Only seven (2003) of the planned 200 wind turbines for Arklow bank have been constructed so far due to the infrastructure inad-equacies mentioned in the first paragraph of this article. Other planned offshore windfarm development is only progressing slowly for the same reasons. However, this is not the case with our nearest neighbour where the London government has committed £100bn to fast-track offshore windfarm development as well as smoothing the way by providing appropri-ate onshore electrical infrastructure. They have definite ambitious plans and are implementing them. Part of this plan will locate some 500 wind towers in the Irish Sea.

While we’re waiting for our own govern-ment to focus properly on the potential for offshore developments to boost our economy there are great opportunities for the construc-tion industry here to participate in the UK windfarm construction programme in the Irish Sea. We have several ports along our east coast that could be suitable as a base for the manu-facture and assembly of complete wind towers for placement along the west coast of England

or Wales. Such an operation is already up and running in Cuxhaven, a German North Sea port, where Strabag (known here as Zublin) use approximately 2,500 m3 of 60N concrete in each tower to bring it to 80 metres in height. It is then brought to a finished height of 120 metres to 130 metres using a steel tower on which a 7MW turbine is fixed. The entire structure (7,000 tonnes) is then transported to a prepared site off the UK east coast, secured and plugged in. Considerable funding was made available by local Government agencies to prepare har-bour lands as a base for construction of these offshore wind turbines. The site allows for six wind turbines to be in various stages of con-struction at the one time.

Such a facility on our east coast solely serv-icing UK operations in the Irish Sea could provide approximately 5,000 jobs in full pro-duction. If our own sanctioned windfarms - Arklow, Codling, Kish and Oriel - could pro-ceed as planned then nearly 1,000 wind tur-bines could be placed in the Irish Sea. If they were constructed similar to Strabag’s opera-tion in Cuxhaven then we’re looking at fig-ures in the region of two million cubic metres of concrete and that’s around 700K tonnes of cement – think about what that could do for our present dire economic circumstances. One word of warning though, which highlights how frustrated the ‘renewables’ have become with inappropriate planning and grid arrangements, is that the Codling Bank Windfarm, comprising 220 turbines, now mentions on their website the possibility of connecting into the UK national grid at Caernarfon in Wales.

The DART overhead feeder is held in posi-tion by steel uprights whereas the majority of the world’s electric railways use concrete poles. Observant Dubliners may be aware that there are many concrete lampposts around the city, particularly in Dublin 3, 4 and 5. These were manufactured by Parsons in Howth in the early 1960s and have given excellent service.

Ireland is gifted with some of the best quality concrete aggregates that exist on the planet. We manufacture both Portland and GGBS cement on the island but we import timber and steel to hang service cables out of and fasten light bulbs onto while the majority of developed countries use locally manufactured concrete. It is illogical and the concrete industry should be out there aggressively promoting the economic sense of using quality durable indigenous products.

References1. Concrete Towers for Onshore and Off-

shore Wind Farms, The Concrete Centre, Cam-berley, 2007

2. Concrete Wind Towers, The Concrete Centre, Camberley, 2005

Construction & Property News July 2010 eNerGyFOCUs 2�

A pre-cast concrete

tower at a windfarm near

Boursdorf in Luxembourg

CPN July 2010.indd 27 22/07/2010 15:21:55

Much has been written over the past two years about the impact of the recession in the construction industry and there is little point in reiterating these facts. Suffice it to say that the contraction in activ-ity, due to the reduction in private sector investment and the ongoing contraction in Government spending, has had a catastrophic impact on the construction sector. However, it is very important to recognise that the impacts of this contraction are not felt only by those directly involved in construction but also by those in manufacturing indus-tries supplying materials and building products to the construction industry.

Members of the Irish Concrete Federation involved in the manufac-ture of quarry and concrete products throughout the country have expe-rienced a devastating reduction in the demand for products over the past

three years. It is likely that the overall size of the market place for our members’ products in 2010 will be one-third of that in 2007. The impact on these manufacturers, many of them small local businesses employing local people, often in parts of the country where little alternative employ-ment exists, cannot be understated.

In late 2009, the Irish Concrete Federation surveyed its members and estimated that approximately half of the people who were employed in the industry in the middle of the past decade have been forced to leave the industry. There is no doubt that this trend in the number of people employed in our industry has continued into 2010. With Government severely reducing their investment plans under the public capital pro-gramme to an extent where one must seriously question their ability to reach even the reduced levels of targeted investment in 2011, there would

Protecting our Manufacturing Base

by Gerry farrell, Chief exeCutive offiCer, irish ConCrete federation

greencement

greenest concrete

Ecocem’s green cement will reduce the carbon footprint of a typical wind turbine concrete base by 80 tonnes of CO

2

For technical advice or assistance: +353 1 667 0900

www.ecocem.iewww.lowcarbonconcrete.ie

Construction & Property News July 20102� Concrete Focus

CPN July 2010.indd 28 22/07/2010 15:22:14

greencement

greenest concrete

Ecocem’s green cement will reduce the carbon footprint of a typical wind turbine concrete base by 80 tonnes of CO

2

For technical advice or assistance: +353 1 667 0900

www.ecocem.iewww.lowcarbonconcrete.ie

CPN July 2010.indd 29 22/07/2010 15:22:15

Construction & Property News July 2010�0 Concrete Focus

seem to be little chance that a reversal in the fortunes of manufacturing industries supplying the construc-tion industry is likely in the short term.

The current business environment is obviously cre-ating huge challenges for those people running busi-nesses at the current time and the need to restructure businesses to meet the new levels of demand cannot be avoided. However substantial these challenges are for all involved in our business, they have been fur-ther compounded by the level of bad debt which has been incurred by many suppliers to the construction industry in recent times. This issue continues to cre-ate major headaches for manufacturers who continue to supply products into the market place. Compa-nies already have enough problems to address, with demand at a fraction of what it was previously, with-out the basic expectation of being paid for products and materials supplied being called into question.

While the majority of bad debt experienced by members of the Irish Concrete Federation has result-ed from difficulties in supplying privately funded projects, problems have also arisen for businesses supplying publicly funded projects. Those with an interest in our industry will know that, despite the reductions in public spending by the government in capital projects, the public capital programme remains ‘the only show in town’ for many operators. From a national perspective, it is absolutely correct for Government to continue to invest in strategic infrastructure projects that will enhance the competitiveness of the Irish economy. Investment in our public and private transport infrastructure, our schools,

our hospitals and our water infrastructure is vital to reduce the cost of doing business and to add to the attractiveness of this country as a location for investment. This public investment can also pro-tect jobs in companies, including ICF member companies, who can obviously supply the mate-rials to complete these projects. However, given the fact that it is the public purse that is ultimately funding these projects, it is totally inexcusable for suppliers of materials and labour to be left with unpaid bills arising from the supply to these public projects.

On 19 May, Senator Feargal Quinn introduced the Construction Contracts Bill into Seanad Éire-ann. This is an admirable initiative by Senator Quinn to address the issue of non-payment of sub-contractors in the construction chain. While the Irish Concrete Federation fully recognises and supports Senator Quinn’s initiative, it is our opinion that this proposed legislation does not go far enough to protect those suppliers who, in good faith and in the expectation of getting paid for their goods, supply contractors both on private and state funded projects. While the federation believes that the legislation needs to be strengthened, there is

little doubt that Senator Quinn’s initiative has provided hope that legisla-tion will be introduced to protect suppliers and the ICF looks forward to meeting Senator Quinn and the government on this issue.

In relation to the supply of materials and labour, the ICF will be calling for the introduction of legislation similar to that which exists in the Unit-ed States. In the United States, the Miller Act is the law which requires contract surety bonds on federal construction projects. The Miller Act provides that, before a contract that exceeds $100,000 for the construc-tion, alteration or repair of any building or public work in the United States is awarded to any person, that person shall furnish the Federal Government with the following:

a.a performance bond in an amount that the client or contracting offic-er regards as accurate for protection of the Federal Government.

b.a separate payment bond for the protection of suppliers of labour and materials.

The amount of the payment bond can be equal to the total amount pay-able by the terms of the contract. This Miller Act payment bond covers sub-contractors and suppliers of material who have direct contracts with the prime contractor. These are called first tier claimants. In addition, sub-contractors and material suppliers who have contracts with sub-con-tractors are also covered by the legislation.

While the Miller Act governs state funded projects only, there is obvi-ously a need for protection for suppliers to privately funded projects also as this has traditionally been the source of most construction activity in the past. The possibility of the introduction of payment bonds to cover private sector construction projects must also be seriously examined.

Suppliers of materials have little or no protection in legislation. An examination of some of the recent liquidations of companies often reveals a long list of material suppliers on the list of unsecured credi-tors. It is unacceptable in the extreme for suppliers to find themselves exposed with major bad debts, which in turn threaten the viability of their businesses, as a result of an inability to be paid for material supplied to privately funded projects or projects being financed by the state. Suppli-ers need an in-built protection from non-payment at time of tender. The Miller Act offers that protection to businesses in the US. It is time for similar legislation in our country.

Precast Concrete Specialists for over 35 years

Raharney, Mullingar Co. Westmeath Tel: 044 9374108 Fax: 044 9374552www.shaymurtagh.ie [email protected]

While the Irish Concrete Federation fully recognises

and supports Senator Quinn’s initiative, it is our opinion that this proposed legislation does not go far

enough to protect those suppliers who... supply

contractors both on private and state funded

projects.

‘

’

CPN July 2010.indd 30 22/07/2010 15:22:16

Construction & Property News July 2010 Concrete Focus �1

Bid for ‘Concrete Success’ At Dairy Show

As reported in the June issue of Construction & Property News, McGrath’s Limestone Works Ltd won a major European environmental award in recognition of outstanding dedication to environ-mental best practice. In 2008, McGrath’s Lime-stone Works Ltd won the Irish Concrete Federation Quarry of the Year and, as a result, the company was entered into the equivalent European awards for sustainable development. McGrath’s received the Environmental Best Practice Award for a small company in recognition of outstanding dedication to the environment.

McGraths started out in the 1950s producing ground limestone and have since extended to the manufacturing and production of concrete blocks, ready-mix concrete, macadam & civil engineering. Following five years of research and development, chemical, elements, geological and other various types of testing, McGraths Limestone Works went into the production of calcium carbonates. The limestone at the quarry in Cong, Co Mayo is a very pure limestone rare to this country and sometimes thought to be one of the purest deposits in Ireland. It has proven very consistent throughout the quarry and results are as high as 99.2% pure calcium car-bonate with low levels of all other important unde-sirables.

McGrath’s Limestone Works supply limestone in bagged and bulk format under the product names of congcal and farmcal. The company have a very strict testing schedule with all loads tested for particle size, moisture and density in their own laboratory. Daily monitoring of limestone chem-istry and elements is done along with numerous other tests. The company supplies different grades of fine and course limestone flours as well as all grades of grits and sand grade products. In the con-crete sector they supply calcium carbonate for the manufacture of liquid flooring, self compacting and precast concrete.

Cong’s Calcium Carbonate Leader

Figures released on 13 July by the World Business Council for Sustainable Devel-opment’s Cement Sustainability Initiative (CSI) show a further reduction in CO2 emissions intensity per tonne of cement produced.

Data made available by 46 companies, with over 900 production facilities glo-bally, show a 3.8% reduction in specific net CO2 emissions since 2005 and a 14.3% reduction since 1990.

As well as showing a reduction in CO2 per tonne of cement produced, the data also reveals a reduction in absolute CO2 emis-sions from companies reporting to the CSI database. These dropped for the first time since data has been gathered, from 596m tonnes in 2007 to 577m tonnes in 2008.

The figures are encouraging because they demonstrate that modern blending

methods, alternative fuels and the improved energy efficiency of new cement kilns are providing a reduction in the amount of CO2

emitted per tonne of cement produced. The CSI’s global cement database, Get-

ting the Numbers Right (GNR), is a vol-untary, independently-managed CO2 and energy performance system that provides annual data on the cement industry. The figures include data released for the first time on an individual country basis, includ-ing CSI member facilities in China, the USA and UK. Companies reporting into the CSI’s GNR database cover two-thirds of output outside China; or about one-third of global cement production.

The 13 July data covers cement produc-tion in 2008. There is a one-year embargo on data release to comply with anti-trust regulations.

New Figures Show Reduction in Emissions Intensity

Companies supplying concrete and concrete products such as silage, walls, tanks and slats are hoping for a good turnout at the Dairy Event and Livestock Show on 7 and 8 September in the NEC Birmingham.

Organised by the Royal Association of Brit-ish Dairy Farmers (RABDF), the show is urg-ing Irish-based farmers to use well-established transport links to access the major farm expo along with their fellow dairy farmers in Great Britain.

Confirming such firms as Macrete as an

exhibitor, RABDF chief executive, Nick Ever-ington, said that by relocating the event to the NEC, they have attracted numerous firms in the building sector as exhibitors. More than 400 exhibitors have already confirmed stand space bookings, of which approximately 25% have booked additional stand space compared with last year.

Macrete utilises a 45-acre site at Toomebri-dge, Co Antrim and has manufacturing facili-ties that include a modern batching plant, a testing laboratory where thorough concrete

strength analysis is carried out daily and also has moulding and casting workshops. Jones McGirr & Co Ltd is also taking part to promote its dedicated and professional service specialis-ing in the supply and installation of geo-mem-brane and geo-textile linings for the agricultural sector – largely slurry and waste storage. Some other confirmed exhibitors within the sector include Carlow Precast; Comfort Slat Mat; Moore Concrete; O’Reilly Concrete Group and Teemore Engineering.

A ‘Concrete’ Pathway to Chinese BusinessA free event at Queen’s University Belfast on 18 and 19 June offered the concrete, cement and civil engineering sectors on the island of Ireland the opportunity to avail of new trade opportunities in China’s £5 trillion construction industry.The event was organised by Queen’s University’s school of planning, architecture and civil engineering (SPACE). Those who signed up for the event had the opportunity to meet with over 30 construction-related professionals and academic researchers from lead-ing Chinese government organisations and universities. The event was organised under the umbrella of the Science Bridge initiative, a £2.3m programme to underpin technology transfer and wealth creation in both Northern Ireland and China in the areas of sustainable energy and the built environment. The Science Bridge project at Queen’s was the only con-struction-related project awarded funding under the international programme.‘While local construction and related fields have stalled, the Chinese sector is growing at an exponential rate,’ explains Dr Yun Bai from SPACE. ‘This growth rate has brought with it a range of challenges and now Chinese construction professionals are looking to the expertise of firms on the island of Ireland to help them meet demand. We have been suc-cessfully working with local firms and Chinese academics and industry for some time now on the commercialisation of viable research discoveries in the concrete, cement and civil engineering fields.’

CPN July 2010.indd 31 22/07/2010 15:22:17

Construction & Property News July 2010�2 Concrete Focus

Register now to visit the Zero Carbon Emissions Concrete Home on

www.irishconcrete.ieConcrete Built Homes are Better Built Homes

Green Cement is best for Wind Turbine FoundationsWind farm developers and consulting engi-neers need to be aware of the technical ben-efits of Ecocem’s green cement.

That’s according to Peter Seymour, a direc-tor of Ecocem Ireland Ltd. All wind farms require large concrete bases and Peter cites technical and ‘green’ reasons why Ecocem’s GGBS (ground granulated blastfurnace slag) cement should be the product of choice for wind farm developments.

Turning to the ‘green’ reasons first, Peter points out that in Ireland cement manufac-ture is the second largest industrial source of CO2 and NOx emissions, after the generation of electricity from fossil fuels. In addition, about one-fifth of all dioxin emissions from industry in Ireland arise from cement pro-duction. ‘However, the production of GGBS from blastfurnace slag, an industrial by-prod-uct, generates very low CO2 emissions, and zero emissions of other pollutants,’ he says. ‘Ecocem’s GGBS generates a tiny fraction of the emissions associated with traditional cements. Therefore using GGBS as a partial replacement for Portland cement yields sig-nificant improvements in the environmental performance of concrete. In fact, the carbon footprint of our GGBS cement is close to zero. Carbon credits are used to offset the very small (less than 30kg/tonne) CO2 emissions from the electricity, gas and diesel used in the grinding process.’

Looking at the technical advantages provid-ed by GGBS cement, Peter notes that as wind turbines become larger so too do their foun-dations. ‘Wind turbine bases can be up to two metres deep in concrete and large blocks like

that generate heat when the concrete is setting so the core is hot and the edge is cold,’ he says. ‘Temperature differentials between the centre and the edge cause thermal stresses that can result in cracking, creating durability issues. By using our GGBS cement in the concrete you lower the core temperature and that assists in reducing the overall heat of the concrete base and the associated risks. Using Ecocem GGBS at a replacement level of 70% is the best available practice when constructing con-crete and wind turbine foundations in terms of cost, strength, durability and sustainability.’

A number of wind farm projects around

the country have employed Ecocem’s GGBS cement in their concrete foundations, includ-ing 18 turbines based in Kilcorney in Cork, 19 at Castledockrell near Enniscorthy in Wex-ford, 18 near Kilmore Quay in Wexford and 10 at Millstreet in Cork. Ecocem have also

pMulti-pile and reinforced concrete slab foundation for a wind turbine near Kilmore Quay, Co Wexford – Ecocem supplied its GGBS cement to the project.

The completed wind farm

at Kilmore Quay

CPN July 2010.indd 32 22/07/2010 15:22:21

Construction & Property News July 2010 Concrete Focus ��

NSAI Certifies Kilsaran’s Road Surfacing MaterialsThe National Standards Authority Ireland (NSAI) has granted the Kilsaran Group certi-fication on I.S. EN 13108-21: 2006 ‘Factory Production Control for Asphalt Production’ in relation to the company’s road surfacing and contracting division.

‘This endorsement shows that the Kilsaran Group’s road surfacing materials are to the highest possible standard and such a reference is essential for our company into the future,’ says Declan McCartney, managing director of the road surfacing and contracting division. ‘Customers are increasingly more discerning and are demanding superior quality products and service for their projects at the best possible price. An NSAI endorsement therefore is a great addition to our credentials.’

The Kilsaran Group has also made a signifi-cant investment in its online presence with the upgrade of its Group website, www.kilsaran.ie, and its dedicated paving and walling web-site, www.kilsaranlifestyle.ie. The website now

incorporates a video player with the Group’s recent news and sponsorships and a full product directory. It includes product calculators for the group’s pre-mixed dry products (renders, mor-tars, screeds, grouts etc.), ready-mixed concrete and road surfacing materials. It also showcas-es the Kilsaran Group’s latest projects which include the new Aviva Stadium, The Conven-tion Centre at Spencer Dock in Dublin which opens in September and Terminal Two (or T2)

at Dublin Airport which is a three-storey, 75,000 square metre building near Terminal One. Three of Kilsaran’s business units – ready-mixed con-crete and blocks, road surfacing and pre-mixed dry products – all have dedicated pages on the new site. The paving and walling side of the business is re-directed to a standalone Kilsaran Lifestyle site for consumers which showcases the latest offers, ancillary garden accessories, paving blocks and flags and walling options.

supplied their environmentally friendly cement to wind farms in Tipperary, at Lisheen Mines and to farms in Limerick, Mayo and Cavan. Coillte have used Ecocem’s cement in a wind farm

in Leitrim and the ESB have used it in their wind farms in Tyrone, Roscommon and Leitrim and are proposing to use it in an upcom-ing wind farm in Limerick.

‘Wind farms tend to build

pylons of up to 85 metres high but as turbine technology improves there is a move to build pylons to 100 metres high and steel doesn’t work that high because of its duc-tile nature – it isn’t stiff enough

– so concrete is the material of choice for the next generation of wind farms and these wind farms would use precast concrete ele-ments,’ says Peter. ‘Most wind turbines in Ireland are on steel pylons. On the Continent they have already moved to using tall-er pylons and some are of precast concrete.’

Apart from wind farm con-struction, Ecocem Ireland claim that GGBS cement offers signifi-cant advantages in other environ-ments, particularly in aggressive chemical environments. ‘In this scenario concrete made with GGBS cement has a better service life than concrete made with ordi-nary cement as it prevents attack from chlorides and sulphates,’ says Peter. ‘For this reason it is widely used in concrete that is used in infrastructure projects such as marine projects like Grey-stones Marina and in waste water treatment plants. It is also used by the National Roads Authority on all of their new bridge structures on the motorways as they have a 120-year design life.’

Picture shows a concrete foundation for a wind turbine in Millstreet, Co Cork, under construction. The concrete contains Ecocem’s GGBS cement.

CPN July 2010.indd 33 22/07/2010 15:22:25

Construction & Property News July 2010�� Legal

Breach of ContractIn this, the last of a series of articles about the new Public Works Contract (the ‘New Form’) in practice, I am going to discuss briefly the remedies available to parties for breach of contract, as well as the issue of disruption.

General daMaGesFirst, as everyone who is in any way familiar with the New Form

knows, the contract provides for two categories of events that entitle the contractor to claim additional reliefs from the employer: delay events and compensation events. The former events entitle the contractor to claim for additional time only, while the latter events entitle the contrac-tor to claim for both additional time and additional money. The intention is that the contractor will bear the risk for any event or circumstance that does not constitute a delay event or a compensation event, and that it will therefore not be entitled to additional time or additional money in respect of that event or circumstance. It would seem from the man-ner in which this mechanism is contrived that the drafter of the contract intended to entirely exclude the contractor’s right to general damages for a breach of the contract by the employer, and to instead limit the contractor’s remedies to those that are stated in the contract. However, it is arguable that the New Form does not successfully achieve that aim, for a number of reasons.

First, recourse to general damages is the primary remedy available

to a party under the common law in respect of any breach of contract. It is a well-established legal principle that, if a party is to contract out of its common law rights, the contract in question must say so in clear and unequivocal terms. The New Form does not expressly state that either the contractor or the employer will not be entitled to claim general dam-ages for a breach of contract by the other. The parties will instead need to familiarise themselves with the intricacies of the contract before its aims in this regard become apparent.

The closest that the New Form gets to express language denying the availability of general damages is the inclusion of the compensation and delay event ‘a breach by the Employer of the Contract delaying the Works that is not listed elsewhere in this table’ in the table in schedule 1K. Even if one accepts the premise that this delay and compensation event is intended to exclude general damages for breaches of the con-tract by the employer that delays the works, it is obviously still possible to argue that general damages are available to the contractor for breaches of contract by the employer who does not delay the works.

Secondly, a number of clauses of the New Form seem to anticipate that the contractor will be entitled to damages, at least in certain circum-stances. For example, sub-clause 10.3 (which I have discussed at length in the previous two articles in this series) requires the contractor to noti-fy the employer’s representative if it considers that ‘…there should be an extension of time or an adjustment to the Contract Sum, or that it has any other entitlement under or in connection with the Contract…’ The use of ‘any other entitlement’ in this context is designed to ensure that

by enda o’Keeffe, MaPles & Calder

CPN July 2010.indd 34 22/07/2010 15:22:27

Construction & Property News July 2010 Legal ��

the contractor has to comply with the notice requirements regardless of the nature of the claims that it is making against the employer. The phrase also suggests, however, that there are remedies available to the contractor under and/or in connection with the contract other than an extension of time or an adjustment to the contract sum.

Sub-clause 12.6.3 deals with termination and it specifies that the amount due to the con-tractor under the contract upon termination shall be built up of, among other things, ‘…all other amounts due to the Contractor under the Contract but not damages’. This express term is, I think, intended to ensure that the rules imposed by the contract should still be used to determine what is due to the contractor upon termination, despite the fact that the contract ceases to exist. However, the form of wording used in sub-clause 10.6.3 also clearly implies that damages could be due to the contractor under the contract.

Finally, in the event that the contract was fundamentally breached by either party, then the other party would be entitled to claim for general damages on foot of that breach. A fun-damental breach in law is a breach that goes to the heart of the contract, or destroys the entire reason for the contract being in place. For example, if the employer was to deny the contractor access to the site then the employer would have fundamentally breached the con-tract. In those circumstances the mechanisms contained within the contract that are intended to limit the damages available to the contractor would fall away with the contract as a whole, and common law remedies would prevail.

valuation of CoMPensation events

Sub-clause 10.6 of the New Form specifies how the employer’s representative is intended to value any adjustment to the contract sum that arises from a compensation event. In early versions of the contract, the text that prefaces the actual mechanics of the sub-clause was not as detailed or prescriptive as it is at present and simply stated that ‘adjustments to the Con-tract Sum for a Compensation Event shall be as follows…’. The simplicity of this statement meant that it was possible to argue that the first three sub-provisions of sub-clause 10.6 consti-tuted the entirety of the provisions to be used to price an adjustment to the contract sum – i.e. the employer’s representative was required to make a fair determination of the adjustment to the contract sum if the adjustment could not be determined under sub-sub-clauses 10.6.1 or 10.6.2. If successful, this argument would have had the effect of rendering ineffective

sub-clause 10.7 and any unit delay rate that the contractor had tendered to the employer – an outcome which would obviously have been very desirable to the contractor. The contractor would instead have been entitled to a fair valu-ation, something which the relevant case law suggests includes loss of profit.

disruPtionSub-clause 10.7.4 states that: ‘except as pro-vided in this sub-clause 10.7 [notwithstanding anything else in the contract] losses or expens-es arising from or in connection with delay, disruption, loss of productivity or knock-on effect shall not be taken into account or includ-ed in any increase to the Contract Sum, and the Employer shall have no liability for such losses or expenses.’

The clear intention is therefore that the con-tractor shall not be entitled to recover costs for disruption caused to it by the employer. Despite this fact, many contractors still seem to be approaching claims as if they were old-fashioned loss and expense claims, and to be seeking substantial sums in respect of disrup-tion.

In trying to exclude the employer’s liability to the contractor for disruption, the New Form seeks to bestow ‘term of art’ status upon the word ‘disruption’. However, ‘disruption’ is not a term of art: it is in fact a term of last recourse that contractors have historically applied to any increased costs that they could not allocate to a breach of contract by the employer, either as direct costs, financing costs, or as a side-effect of delay (increased preliminaries, etc). Therefore, seeking to exclude the employer’s liability to the contractor for disruption by way of the above sub-clause merely means that the word ‘disruption’ will no longer appear in con-tractors’ claims. Instead, one will encounter words such as ‘prolongation’, ‘fragmentation’ and similar terms to describe the same unal-located costs.

One term that has not been outlawed by the New Form is ‘acceleration’, though accel-eration expenses could, of course, be said to be expenses that arise from or are connected with delay. In our experience the majority of employer’s representatives administering projects governed by the New Form are still taking a very cautious approach to grant-ing contractors additional time, even where it might be said to be objectively warranted. This approach is, to some degree at least, understandable. However, given that the New Form makes express provision for liquidated damages to be imposed by the employer, the contractor has little choice but to acceler-ate the works in response to a determination

that it is not entitled to a warranted extension to the date for substantial completion of the works. Because sub-clauses 10.6 and 10.7 do not expressly deny the contractor the right to claim for repayment of the costs incurred by it in accelerating the works, it could legitimately claim repayment of same.

Another fact relevant to the question of dis-ruption is that neither ‘additional work’ nor ‘substituted work’ is defined for the purposes of sub-clause 10.6. The costs that formerly would have been termed disruption costs could just as easily be termed costs associated with addi-tional and/or substituted work. That is to say that out of sequence work, for example, could just as easily be termed work that has been sub-stituted for work that the contractor originally intended to do in a particular sequence, or at a different time. Similarly, double-handled materials could be said to have necessitated additional work comprising a second handling of materials that the contractor had only priced to handle once. Sub-clause 10.6 then describes how the employer’s representative should price additional and/or substituted works.

The compensation event briefly discussed above (a breach by the employer of the con-tract delaying the works that is not listed else-where in schedule 1K) could also absorb some of the costs that a contractor might formerly have sought to recoup as disruption costs. For example, say the employer’s representa-tive had issued a large number of instructions at short notice throughout the duration of the contract, and the additional money (if any) obtained by the contractor in respect of the instructions were found not to have met the costs incurred by it when the final account was compiled. In those circumstances the contrac-tor could term the haphazard issuing of instruc-tions by the employer’s representative to be a breach by the employer’s personnel (which term includes the employer’s representative) of sub-clause 4.1.2(4) – i.e. that part of the co-operation clause which states that co-operation may be especially relevant to the efficient tim-ing of information provided for in the contract. Such a breach could constitute a breach by the employer delaying the works (note that the delay required to constitute such a compensa-tion event is not expressly required to be critical delay), and the contractor could then proceed to claim the unaccounted-for costs from the employer. Of course, the contractor should expect to face a defence to the effect that a claim of this fashion was time barred but, even taking that into account, the contractor would have better prospects of recovering additional money in this fashion than by simply accepting ‘disruption’ costs to be irrecoverable.

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Construction & Property News July 2010�� PLANt&MAChiNeryNews

Husqvarna Introduces Electric Wet CutterHusqvarna Construction claims that its K3000 electric wet cut-ter is the most powerful all-round cutter on the market.

The electric cutter with wet cutting kit makes it possible to do smaller cutting jobs indoors with a minimum of dust and slurry. By using the wet cutting kit, which has specially designed nozzles in combination with double insulat-ed rotor and GFCI (Ground-Fault Circuit Interrupter), users get the combined advantages of the elec-tric power cutter and efficient dust suppression. K3000 Wet is the first model with the Husq-varna DEX (Dust Extinguisher) system.

Husqvarna Construct ion’s machines for the construction industry include power cut-ters, floor saws, wall and wire saws, tile and masonry saws, drill motors with drill stands and machines for surface preparation and demolition. These products will be available for sale to the public and professionals via a network of agents throughout the country, who will have dedicated Husqvarna retail outlets and pur-pose built construction show-rooms.

Liffey Distributors are the sole importer and distributor of the Husqvarna Construction range throughout Ireland.

JCB Attachments has unveiled a range of crusher buckets designed to work with the JCB line of tracked excavators, from the JS160 to the JS360.

There are three base models – the CB60, CB70 and CB90 – with two variants of each of the larger models to suit the power and lifting capabilities of the JS crawler excavator line-up. Shown for the first time at the Hillhead Exhibition in Derbyshire last month (22 to 24 June), the CB90 can crush up to 40m3 of material in an hour, the CB70 30m3 and the CB60 20m3.

Powered by the excavator’s standard hydraulic breaker circuit, the crusher buckets use a fixed jaw in the base, with a hydraulically-activated hinged jaw in the roof of the bucket. The gap between the two jaws can be set with shims to determine the size of the finished material.

The CB60 is designed to work with JCB’s JS160-190 and offers a capacity of 0.45m3. Two versions of the CB70 are available, both with a 0.60m3 capacity, to work with the JS200-220 and the JS240-260 models. Likewise the CB90 offers two versions, for the JS240-260 or the JS290-360, both have a 0.75m3 capacity.

Crusher buckets can reduce material to a hardcore size from 20-120mm (20-100mm on the CB60), offering a cost effective

alternative to an on-site mobile crush-ing plant. They are particularly useful in demolition applications, providing an on-site recycling resource. Even demolition waste with reinforcing steel present can be crushed, allowing the steel to be removed and recycled.

New Crusher Buckets from JCBWacker Neuson to Produce Caterpillar MinisCaterpillar and Wacker Neuson announced on 24 June that they had signed an alliance agreement for the design, manufacture, sale and support of Cater-pillar mini hydraulic excavators in the under three tonne category.

The alliance agreement calls for Wacker Neu-son to leverage its manufacturing and product development capability to produce Caterpillar mini hydraulic excavators in the under three-ton category at its production plant in Linz, Austria. Caterpillar currently offers three models in this size range. The machines will be produced to Caterpil-lar’s specifications and will be distributed and sup-ported via Caterpillar’s global dealer network, with the exception of Japan. All Caterpillar models will be clearly differentiated from comparable Wacker Neuson models in the same product range.

‘We know many customers are looking for more options in this size range, and this alliance will give those customers expanded choices to help them grow their business,’ says Mary Bell, Caterpillar vice president with responsibility for the building construction products division. ‘Over the years, Wacker Neuson has developed a strong reputation among our Caterpillar dealers who have become familiar with Wacker Neuson’s light equipment products, which are available at Cat Rental stores.’

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Construction & Property News July 2010 PLANt&MAChiNeryNews ��

Wacker Neuson has rounded off the higher end of its product range of compact tracked excavators by adding its most powerful machine to date - the 14 tonne 14504.

The 14504 - the heavyweight of the compact excavator class - brings with it two key attributes of the already-familiar machines in the classes of up to and including 12 tonne: their easy steering and manoeuvrabil-ity. According to Wacker Neuson, the work hydraulics ensure that the machine can be manoeuvred with maximum sensitivity, and in this they are supported by the pairing of double variable pumps with negative control adjustment. Since the pumps only deliver the precise quantity of hydraulic fluid required, there is very little power loss.

Measuring only 2.79 metres in height and 2.49 metres in width, the 14504 has an operating weight of approximately 15 tonnes. It is capable of conveying a tipping load of almost 1,600kg over a span of seven metres (measured at 90° to the direction of travel), and of digging to a depth of up to 5,500mm.

Manufacturer Moves into New Weight Class

Liebherr at Vertikal Days

Terex MPE had their largest presence ever at this year’s Hillhead Exhibition where they show-cased 10 Terex Finlay tracked mobile crushing, screening and washing machines.

Terex MPE showcased three machines in the working quarry face demonstration area and seven machines on their main stand. In the working demonstration area Terex MPE show-cased the new Terex Finlay J-1480 tracked jaw crusher, feeding into a new Terex Finlay C-1550 tracked cone crusher, feeding into a Terex Fin-lay 984 tracked triple deck horizontal screen. On the main Terex MPE booth there were seven Terex Finlay machines showcasing the wide range of tracked mobile crushers, screeners and washing equipment available.

The Terex Finlay J-1480 incorporates the Terex Jaques single toggle jaw crusher which has a throughput capacity up to 700mtph

depending on application and material. The machine is available with direct drive to offer improved fuel efficiency and greater power utilisation or hydrostatic drive which offers reversible operation for clearing blockages and demolition applications. The machine features a vibrating pan feeder linked to an independently driven pre-screen which provides optimum sep-aration of dirt, fines and difficult materials.

The Terex Finlay C-1550 incorporates the Terex 1300 cone crusher with direct drive. The machine features a pre-screen system with a single deck 8’ x 5’ screen and 1,200mm belt to remove fines, improving plant capacity, product flexibility and liner wear reduction. The large hopper/feeder features a metal detection and purge system to protect the cone and reduce downtime by removing metal contaminants from the feed belt at the touch of a button.

Terex Showcases 10 Models at Hillhead

Liebherr-Great Britain Ltd presented the MK 88, part of their extensive range of mobile construction cranes, at Vertikal Days 2010 at Haydock Racecourse in England (16 and 17 June).

Liebherr also displayed the operator’s cabin and compact head of the 250 EC-B flat-top tower crane, along with an LTF 1045-4.1 truck crane, mounted on to a Volvo FM 84 RB chassiscab, together with a 130 tonne capacity all-terrain mobile crane LTM 1130-5.1 and the 90 tonne LTM 1090-4.1. A 350 tonne capacity LTM 1350-6.1 made its UK debut at the show, along with one of Liebherr’s crawler mounted telescopic cranes – the 60 tonnes capacity LTR 1060 - which was recently launched at the Bauma exhibition in Munich.

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Construction & Property News July 2010�� PLANt&MAChiNeryNews

JCB claims that its latest backhoe loaders can offer customers average fuel savings ranging from six to 16% at typical daily work rates. This is largely achieved through the introduc-tion of a new EcoDig system incorporating three hydraulic pumps.

The EcoDig hydraulic system now utilises three hydraulic pumps to provide the same hydraulic output but at lower engine speeds, which delivers average fuel savings of up to 15%. Operators are able to select from two working modes, either Eco mode or low flow, to optimise productivity and improve machine control. A secondary benefit of the three pump design is faster performance of the extradig extending dipper stick. The new hydraulic system and lower engine speeds also contribute to a cut in exhaust emissions and a reduction in overall machine noise lev-els, both inside the cab and externally.

The new backhoes come with the existing EcoRoad options of Smooth Ride System (SRS) and TorqueLock. TorqueLock reduces fuel consumption by up to 25% while increas-ing speed by up to 10% and the Smooth Ride System maximises load retention around the site. Power brakes are to be introduced on both 3CX and 4CX models. The system provides proportional braking throughout the pedal travel, providing operators with improved braking and reduced effort.

JCB has also redesigned the pedal box in the backhoe loader cab. The power brake design ensures that there is full brake pad release when the driver comes off the pedal. This enables operators to better maintain roading speeds and contributes to a further one per cent saving in fuel consumption.

By using the machine’s hydraulic system to supply oil for the power brakes, there is no requirement for separate brake reser-voirs. This simplifies service and reduces the number of daily checks for the driver.

JCB’s EcoLoad package of options adds to the enhanced productivity. The return-to-dig feature automatically resets the shovel to dig position, the transmission disconnect diverts hydraulic power to the loader for faster lift-ing, while the Hydraulic Speed Control gives more tractive effort when loading. In addi-tion, high engine torque at low revs improves pushing and hill climbing performance and limited slip differentials provide extra trac-

tion in challenging conditions.An automatic heated front windscreen on

all 3CX and 4CX models will be introduced later this year. Available in time for winter 2010, the heated windscreen rapidly clears ice and misting in cold conditions, allowing the operator to get to work without delay in the morning.

A new combined hammer and bidirectional auxiliary circuit makes the fitting of attach-ment power circuits easier. The circuit has been designed to provide low flow and high flow across all 3CX and 4CX models, includ-ing all fixed and extending dipper variants. This greatly increases versatility for the cus-tomer as the machines are compatible with an increased number of optional attachments. There is also the option of a new nine metre hose reel on the Hand Held Tool Circuit that allows contractors to use hydraulic power tools alongside the backhoe loader, removing the need for separate power packs.

‘Whether loading, roading or digging JCB’s latest generation of backhoe offers the cus-

tomer a machine that works harder but uses less fuel,’ says Tim Burnhope, JCB group managing director for product development and commercial operations. ‘We believe the new JCB backhoe will cement our position as the world’s best selling brand in a market which we expect to grow significantly over the next five years.’ According to Tim Burn-hope, JCB had 41% of the global market for backhoe loaders in 2009 and the company is approaching 70% market share for backhoe loaders in the UK. He also claimed that trad-ing conditions had improved since last year and that the industry ‘seems to have turned a corner’. This year JCB recruited new employ-ees for the first time since 2007 and sales of backhoes increased substantially in 2010.

Production on the new backhoe loaders, which will have a starting price of £40,000, will begin in August and some dealers have already seen the new machines in action.

The EcoDig, EcoRoad and EcoLoad tech-nology will ultimately be transferred to the entire JCB product range.

New Backhoe Offers Further Fuel Savings

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Construction & Property News July 2010 Product News �9

One of Europe’s latest projects to use Nanogel aerogel insulation technology has opened in Dublin.

Designed by A&D Wejchert & Partners, the Pearse Street Primary Care Centre is designed to provide general practice care, including physiotherapy, occupational therapy and nursing clinics for the local com-munity. The three-storey building, on an extremely restricted and dusty city centre site, has rooms ranged around a central courtyard.

S ign i f i cant i s the extensive use of the air-tight Kalwall+ Nanogel daylighting system, sup-plied by UK-based Stoakes Systems Ltd, which dif-fuses natural daylight and casts it evenly and deeply across the interior, without the presence of shadows or glare or the need for solar control. By using Nanogel within the panels, a dramatic insulation U value of 0.28 is obtained - equivalent to a solid wall - thereby increasing the energy-saving per-formance and reducing lifecycle running

costs. Nanogel is based on translucent silica aerogel, the world’s most insulating solid which comprises up to 90% air.

The Kalwall cladding and roofing system is particularly favoured for healthcare, schools, sports halls and other people-sen-sitive facilities because its healthy natural

light enhances well-being and creates a calm and attractive ambience. For Dublin, the system incorporates the new highly efficient Kalwall Eurowindow vision panels designed to facilitate external views and optional ventilation. It also provides the added benefit of privacy which is not pos-sible with conventional glazing.

New Technology Maximises Insulationwww.stoakes.co.uk

Freefoam has introduced a new product to its range of Fortex textured wood effect cladding sys-tems. The new Weather-board cladding product has a flat appearance when installed, has the same tex-tured wood effect as the other products in the Fortex range and comes in a range of five colours, including white, colonial blue, storm grey, argyl brown and sand.

The Fortex range includes exterior cladding systems available in single and dou-ble plank format. Each format has a textured wood effect and comes in a range of standard and bespoke colours. According to Freefoam, Fortex requires little maintenance once installed and comes with significant environmental credentials - the Building Research Establishment’s (BRE) ‘Green Guide To Specification’ gives PVC cladding an A+ rating when installed with standard components.

‘The new product gives customers and homeowners additional choice when it comes to selecting a style and colour that suits their home or project,’ says Aidan Harte, managing director, Freefoam. ‘Fortex has proven to be very popular in Ireland, the UK and France in particu-lar. The quality, quick installation and low maintenance features of the product are important selling points. In addition, the attractive textured wood effect and range of colours to choose from add significantly to the attractiveness of the product.’

Freefoam Cladding Range Expandswww.freefoam.com

A number of different products from Kingspan Insu-lated Panels, including Topdek and WoodTherm, were installed at the Republic of Ireland’s largest Tesco - the company’s €8.5m flagship store in May-nooth, Co Kildare.

Approximately 20,000 square metres of Kingspan Topdek with a Trocal grey membrane was installed by roofing contractors Lynch Roofing to provide a single component, factory pre-engineered roof-deck, comprising a single-ply PVC membrane with insulation and a trapezoidal steel structural deck.

Kingspan Topdek is suitable for both new build and refurbishment projects with flat or pitched roofs above 1:80 (0.72 degrees), finished roofslopes after deflections or curved roofs with a radius greater than 40 metres. According to Kingspan, the product offers superior weathertightness, thermal performance, insulation continuity, airtightness, fire performance and structural performance. The

wood veneer facades of the Kingspan WoodTherm complete wall and facade system are sourced from sustainably managed forests and come in a range of colours. Tesco chose the ‘Dark Brown’ finish from the WoodTherm colour range for their Maynooth store.

Declan Quinn, whose company, P J Quinn Ltd, installed 800 square metres of WoodTherm at Tesco Maynooth, says it was the first time that they had used the product. ‘Our operatives found WoodTherm very straightforward and simple to use and we were happy with the results on completion,’ he says.

The company also supplied over 11,000 square metres of Multideck (a high performance steel com-posite flooring system from Kingspan Structural Products) and 12,000 square metres of KS1000 EB Euro Box architectural wall panel (AWP) in Kingspan XL Forté White.

Kingspan on Shopping List for Tescowww.kingspanpanels.com

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