Construction Management

Network Rail to shake-up £9.6bn southern renewals delivery

Network Rail is aiming for a radical shake-up in the way renewals are delivered across its large southern region by appointing a new integrated collaborative team of firms to deliver a vast works programme over 10 years.

The fresh delivery approach will involve a switch to integrated and collaborative Project 13 principals of delivery for an estimated work programme of £4.5bn to £9bn over Control Period 7 and 8.

Its new Southern Integrated Delivery model will be used to deliver all categories of railway asset work including: signalling & telecoms, track, buildings & civils, electrification and plant and minor works.

Of the total spending estimate, buildings and civils will constitute 30% – 45%, track 15% – 25%, signalling & telecoms 5% – 15%, electrification and plant 5% -10% while minor works will constitute 20%- 30% of the overall estimated value.

The southern region is now starting the hunt for the first partners for the first work areas to deliver buildings & civils; and electrification and plant

The SID approach aims to harness the strengths, capabilities, and knowledge of the supply chain, through a knowledge sharing and digital transparent approach that breaks down tier one, two and three hierarchies to deliver better outcomes.

Under the new enterprise approach, financial rewards will be based on value and performance, rather than transferred risk and volume outputs.

Works will be undertaken on Kent Sussex and Wessex routes, primarily for renewals, although options exist to enable enhancements to also be delivered, subject to capacity and where the SID is considered the optimum procurement route.

Under the present procurement plan, all appointed firms will initially sign into a development phase agreement, scheduled to commence in December 2022 / January 2023 and run up until April 2024.

After this Network Rail will commence the main SID agreement.

Network Rail plans to host a virtual market briefing event on 1 November to set out the forthcoming procurement process.

To register for the event or for details of the presentation, email your name, organisation and contact number to Network Rail before 25 October 2021. Emails should be entitled “Southern Integrated Delivery (SID) – Market Briefing”.

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Construction Blogs

Green light for £31m Leeds Victorian school conversion

Leeds-based developer Priestley Homes has been granted planning permission to transform a Grade-II listed former Victorian school in the city centre into an apartment and commercial scheme.

The 2 Great George Street building will be renovated into 34 one-bedroom, 43 two-bedroom and six three-bedroom apartments – including the city’s first £1million-plus penthouses.

A new-build, three storey glazed extension will be added to the rooftop of the building alongside a communal roof-top garden and winter terrace.

New ground-floor office accommodation will be sub-divided into several units, providing 815m2 in high-quality workspaces for Leeds businesses.

The developer’s contracting arm Priestley Construction has started the initial strip-out of the building with the aim to complete in Q1 2023.

Nathan Priestley, chief executive officer of the Priestley Group, said: “As a Leeds-based business, it’s a privilege to be able to transform one of the city centre’s most ornate historical landmarks and bring it back into use as beautiful new homes and high-specification workspaces.

“Our strong reputation speaks for itself when breathing new life into heritage buildings and we can’t wait to make these ambitious plans a reality.

“Most of the development in Leeds city centre is allocated to student housing and PRS schemes. We believe there is a huge shortage of truly magnificent homes for owner-occupiers that give a taste of individuality and elegance; something that we will set out to deliver at 2 Great George Street.”

Construction Services

Nmcn goes into administration

Nmcn is going into administration after the board decided the contractor is no longer able to continue trading as a going concern.

A notice of intention to appoint Grant Thornton UK LLP as administrators has now been filed with the courts.

The company was in the middle of a protracted £24m refinancing deal with Svella plc which was being held-up by the late publication of nmcn’s latest results for last year.

A statement said: “The Board, its advisers and Svella have worked tirelessly in the intervening period. However, as previously notified, completing the preparation of the group’s accounts has revealed further underlying contractual issues with expected losses rising to £43 million.

“It has now become apparent that the company will be unable to approve the audited financial statements in a timely manner to allow the Proposed Transaction to complete within the required timeframe.

“This in turn has led to significant liquidity issues for the Group and particularly the company, which unfortunately is now considered to no longer be able to continue trading as a going concern.”

The Enquirer understands that rival firms were being offered parts of the business over the weekend.

Nmcn said: “Indicative offers have been received from certain parties for the acquisition of certain of the trading operations and/or subsidiaries of the company on a going concern basis, and discussions are ongoing with further parties which may lead to indicative offers on a similar basis.

“Following discussions with its advisers, it is expected that this process will be conducted out of administration, to safeguard the continuity of operations and employment, and consequently the consideration receivable by the company is unlikely to result in any value for equity shareholders.

“The board of nmcn wishes to thank all of its shareholders, customers and suppliers for their support over the years and particularly Svella and those who had intended to participate in the equity subscription that formed part of the Proposed Transaction, which has had to be cancelled.

“Further announcements will be made by the company as appropriate.”

A spokesperson for Grant Thornton UK LLP said: “I can confirm we are working with the Directors of the Group and parties who have expressed an interest in the business in an attempt to maximise the position for its employees and creditors. We will provide a further update on these discussions when we are able to.”

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