The commencement of work at the Maudlin Farm site in Liskeard, Cornwall,

just one of the sites with a question mark hanging over it’s completion

Despite calls upon the government to intervene and, later, attempts to sell the business, the South West construction firm Midas collapsed into administration last week.

The collapse of the business has led to over 300 redundancies, though it is understood that a section of the business (Mi-Space) has been sold, saving over 50 jobs. Concerns have also been raised about the knock-on effort on sub-contractors and connected businesses, many of whom have been left out of pocket through unfulfilled contracts and unpaid invoices.

The collapse of any business is always disappointing to read about and in this case is consistent with the latest insolvency statistics relating to the construction industry. The statistics, released by the Insolvency Service for Q4 of 2021, evidence a significant increase in insolvencies for the sector as compared with 2020.

Increases in insolvencies were seen across the majority of industries in 2021 compared to 2020. However, construction was one of a number of sectors showed increases above the overall annual increase of 11%, at 25%. Furthermore, as standalone figures, construction was the industry which experienced the highest number of insolvencies (2,579). By way of comparison, wholesale and retail trade and repair of vehicles experienced 1,722 insolvencies, and accommodation and food services activities experienced 1,673 insolvencies.

It is understood that blame is being placed on the pandemic, shortages of materials and labour and a significant rise in costs caused by inflation. These could all have a significant impact on the cost and programme for construction projects, and the allocation of this risk should be carefully considered by parties when negotiating the building contract terms. We may also see parties re-negotiating building contracts for distressed projects, if the contractor’s insolvency would ultimately lead to higher costs and delays than allowing short-term financial relief.

There may be some hope on the material shortage front as this seems to have been easing since the end of 2021. However the reprieve may be short-lived as soaring energy costs could lead to a higher cost of some energy heavy materials, such as concrete and steel. The next year will bring a lot of uncertainty for the construction industry, with many companies likely to have a stronger focus on efficiency. As a result we may see significant growth in areas such as off-site manufacturing and sustainable construction.

Source: Lexology

The collapse leaves unfinished housing projects that will now become part of the administration of the Midas Group, leaving questions about who will complete the work and when.

However bosses at the failed firm seem to have faired better.  It seems one was paid more than half a million pounds while the company was making huge losses.

Accounts for the stricken firm, show the highest-paid director trousered £504,000 in the 18 months to the end of October 2020.

This sum does not include pension contributions so it is likely the director benefited further.

The payment was made in the same 18 months when the company made an after-tax loss of more than £2m.

The highest paid director also pocketed £443,000 in 2019, the group’s annual report and financial statements reveal.

In total, directors were paid £1,869,000 during the 18 months to the end of October 2020, with £53,000 paid in pension contributions.

At the time the directors were chairman Steve Hindley, chief executive Alan Hope, Mike Hocking, and chief commercial officer Scott Poulter, plus finance director Duncan Rogerson, who resigned in July 2019 and was replaced by Michael Ready.

Mr Ready left the company in March 2021 to move to Australia and was replaced by Peter Skoulding.

 

 

Part one of an article from Construction Journalist Bruce Meechan examining the UK’s recent energy policy and considers its frailty for fulfilling our rapidly increasing requirements for electricity; as well as to keep homes heated and industry running.    

 

The current debate on our energy security as well as the spiralling wholesale costs is riddled with contradictions, political point-scoring and predictions of widely varying accuracy. And as someone who has been questioning the UK’s policy direction for the past couple of decades, I also felt it was a profound irony that one of the very first sectors to suspend operations due to unaffordable fuel costs was the fertiliser manufacturers who supply our food processors with the demonised Greenhouse Gas, carbon dioxide.

Cue panic over shortage of fresh food; or as author and columnist Richard Littlejohn would put it: “You couldn’t make it up!”

Contrary to the stance it has taken over the growing number of energy suppliers going out of business, as they are forced to pay more on the world market than they are allowed to charge under the Energy Price Cap, our Government rapidly stepped in to strike an undisclosed deal with the fertiliser companies to ensure controlled volumes of CO2 continued to be available for fizzy drinks and filling the plastic trays most of our meat is sold in.

Predictably, many of those who considered it was an act of self-harm to leave the EU have been quick to blame Brexit for the shortages of tanker drivers, butchers, baristas and any other basics temporarily in short supply. Spiralling gas prices, of course, were portrayed as just another aspect of new found isolation.

What most economists understand, however, is that Britain’s energy problems are deep rooted and driven by much wider, indeed global factors. Unfortunately these are forces of supply and demand to which our reliance on renewables (especially wind) and imported gas, have left us uniquely vulnerable.

The UK economy is back to within a whisker of where it was before the pandemic, and this is – as the BBC never tires of telling us – “Despite Brexit”: which was finally delivered while our world leading vaccine programme was beginning to be rolled out in January this year.

As I have tried to explain in a number of editorials addressing the growing clamour over Climate Change, published since the Millennium, I do not believe my continued scepticism regarding man-made global warming conflicts with a passion for cutting pollution and waste.

Margaret Thatcher was amongst the first to give credence to the notion of Global Warming back in the eighties, and it has rapidly gained traction, despite the fact that scientists have been unable to explain how CO2 levels affect the Jet Streams which actually drive our weather and – whisper it – the 1.5 degree Brink of Doom for global temperature rise, considered by some as an arbitrary assumption.

However, ridding our oceans of plastic and our atmosphere of pollutants like micro-particulates should be a no-brainer for virtually everyone, as is recycling whatever is economically viable. I also fully support embracing new technologies that can reduce our reliance on fuel from unpredictable and potentially hostile foreign sources; providing they do not exacerbate fuel poverty, as wind does now, while forcing us to import ever more gas.

At the start of this month, the percentage of our energy needs being met by gas was 43%, up from 38% a year ago, while nuclear’s contribution has slipped from 21 to 13.5% in the same period; and most of our remaining reactors are scheduled for decommissioning over the next decade.

The current situation regarding the wholesale price of gas having risen 400+ per cent in a period of weeks, is attributable to European pipelines being controlled from the Kremlin, while China (unable to quarry enough coal to feed its ever growing number of smoke belching stations) is buying up the liquefied gas we thought Qatar was committed to shipping us.

Meanwhile, having hit a peak of 25% in February, weeks of calm weather around Britain this autumn has meant electricity from our forests of wind turbines fell to just 3% of needs. And to add to the gloom, all the roof panels and solar farms were feeding the Grid just 3.5% of our requirements, and will continue falling from their summer peak as the nights lengthen and demand increases.

Interestingly, battery packs to install along with PV panels have become more affordable in recent years, but electricity storage at scale is highly problematic. A blaze on Merseyside at one of the country’s 400 active or planned ‘battery farms’ proved very difficult to extinguish and some physicists have warned there is a serious risk of explosions causing widespread damage. Our pumped hydro storage for electricity, and the conversion of off-peak surpluses into hydrogen gas for use later, also make minimal contributions to the teatime turn-on of cookers and kettles.

Fire also temporarily interrupted the 10% we are fed via undersea cables from nuclear stations across the Channel, while the French are currently making noises about pulling the plug in a row over fishing licences. Well, that’s one you really can blame on Brexit.

So what are the chances of the lights actually going out across the country this winter, and what have we got that we can rely on for our power supply?

Back before the Clean Air Act came into force in 1956 to combat the smogs which claimed many lives, coal was used to generate much of our electricity and was also the source of ‘Town Gas’.

The discovery of North Sea gas brought considerable change and our remaining coal-fired power stations have been shut down and dynamited in order to cut carbon emissions: while the giant Drax plant has moved to mainly burning wood pellets imported from America. Interestingly the station in North Yorkshire, which generates some 7% of our power, was recently highlighted as being the UK’s biggest emitter of CO2, even though its biomass fuel allows politicians and dewy-eyed activists to claim it is ‘carbon neutral’. Shamefully, a key element to our back up capacity, which goes by the misnomer STOR – or Short Term Operating Reserve – takes the form of diesel generators.

This chicanery is completely in harmony with the way our heavy industry has been driven overseas by crippling energy costs, causing manufacturing to be carried out in countries like China and India where the embodied carbon will be far worse, even before goods are shipped back to Blighty.

Truly, our energy policy is a mirage of smoke and mirrors; crafted to appease agitators while imposing a 20% tax surcharge on energy consumers, enriching supposedly sustainable technology providers, and fooling the electorate into believing it’s all in their best interests.

The Government has announced its Net Zero Strategy ahead of Cop26, with renewed emphasis on replacing gas boilers using heat pumps, plus further funding for electric cars. However, as Downing Street’s green ambitions remain at odds with the Treasury’s fiscal concerns, detail is short.

Expecting Chancellor Rishi Sunak’s autumn Budget statement to contain broader spending commitments – including greater clarity on new nuclear, and other strategies aimed at making our energy infrastructure more resilient – I will wait till the next edition of MMC to look at some of the potential long-term answers which I am hoping will embrace hydrogen and super reliable tidal power.

 

Part two comming soon

40 ‘prefab’ modular homes to be lifted into place on popular Milton Keynes estate, The government scheme will eventually see160 new homes on the estate

 

40 factory-built and cut-price modular homes are set to be craned into place on Tattenhoe.

The Tattenhoe Park development is being delivered as part of a wider scheme by Homes England that will consist of 160 rapid build homes with steel and timber frames.

Homes England is the government’s housing accelerator that strives to release more land to developers to build better homes faster.

Bellway is due to start work on the site next month and have selected specialists ilke homes to deliver the 40 modular units, which will all be built off site in a factory and precision-engineered to focus on quality, sustainability and energy efficiency.

There will be a mix of two, three and four bedroom homes for both affordable and open market tenures.

The developers will use the project to assess the benefits of modern methods of construction after a government report said MMC (modern methods of construction) will be vital in speeding up the delivery of housing across the UK.

Work will start on the site in March and the first modular homes will be ready for occupation in as little as five months’ time.

Tom Heathcote from ilke Homes, said: “It’s great to partner with Bellway Homes at Tattenhoe Park, a truly innovative, Homes England-backed scheme that is aiming to demonstrate the benefits of MMC by collecting granular data on the performance of our own precision-engineered homes.

Paul Smits, managing director at Bellway Northern Home Counties, told the trade press this week: “Bellway is pleased to confirm this partnership with ilke Homes to deliver our first modular homes at Tattenhoe Park.

“We have developed our plans with ilke’s input throughout, and their expertise has accelerated our learning around their products and processes.

“Now contracts are signed, we look forward to seeing these new homes being manufactured by ilke Homes and preparing to install the units at Tattenhoe Park.”

The remaining 120 new homes at Tattenhoe Park will also be built using a speedier methods – with timber frames and panels in place of traditional breeze blocks. This will enable them to be delivered at a faster pace than properties built using more traditional techniques.

Plans for the new development were approved by Milton Keynes Council last October.

A mix of one small apartments, maisonettes and two to four-bedroom houses, 112 of the homes are earmarked for private ownership and 48 will be classed as affordable, for rent or shared ownership.

There will be public open space and new pedestrian and cycle links included.

Paul Smits, managing director of Bellway Northern Home Counties, said this week: “This is a hugely significant development not only for Bellway and Milton Keynes, but also for housebuilding in this country. Phase four at Tattenhoe Park is the first Bellway development to include modular homes. It will deliver much-needed new housing for the town, and it is one of a select group of developments chosen by Homes England for its pilot scheme.

“The modern methods of construction we are using at Tattenhoe Park have the potential to transform the way new homes are delivered in this country. We are pleased to be working with Homes England on this exciting project to help accelerate the supply of new homes in high-demand areas.”

 

Source: M K Citizen

 

 

The McAvoy Group is currently delivering three new educational facilities valued at £40million on behalf of the
Department for Education (DfE). The latest projects are The Cavendish School in Cambridgeshire, Merstham Park
Secondary School near Reigate, and Laureate Academy in Hemel Hempstead.

 

The Cavendish School will provide a much-needed specialist school for children with autism, the world’s first International Baccalaureate (IB) special autism school, with a range of new facilities including multi-functional learning areas, calm and sensory spaces, and a horticultural room. Merstham Park School will see long-standing temporary facilities replaced by a brand-new building, designed to be one of the DfE’s first pioneering low-carbon pathfinder projects. At Laureate Academy an outdated teaching block has been demolished, and a new building created, along with a new multi-use games area.

Progress on delivering these projects follows a productive 12 months for the offsite manufacturing specialists, which, despite the challenges of Covid 19, has seen the business invest heavily in strengthening its senior management team and building for the future.

Ron Clarke, CEO of The McAvoy Group, said: “Our primary objective at The McAvoy Group is to deliver an exceptional experience for every customer through the quality of service we provide. We’re delighted to have been entrusted with the delivery of these latest contracts by the DfE. Given the huge disruption to education during the pandemic, it’s more important than ever for new school buildings to be delivered quickly and efficiently on programme and to the highest standard.

“We look forward to working with the DfE, local councils and other partners to deliver these new school places in well-designed, high-quality buildings that are fit for the future.”

The announcement comes as the business retained a place on the latest iteration of the DfE’s £7bn four-year Construction Framework for the delivery of school buildings in England.

The McAvoy Group is one of the leading offsite manufacturing and MMC specialists in the UK and Ireland. It offers a full range of design, manufacturing, fit out and construction services for the purchase and hire of high quality, affordable and sustainable modular buildings in the health, education, commercial and infrastructure sectors. Renowned for innovation, it is a key player in the pioneering Seismic Consortium, an R&D project launched to revolutionise the construction of school buildings. The Seismic II project is also now underway, which will see its learnings applied to other sectors, including healthcare and commercial.

 

www.mcavoygroup.com