Plans to introduce new contract conditions for employees in the building services sector appear to have collapsed beyond repair, with NG Bailey now following Balfour Beatty in backing out of reform.

Last week Balfour Beatty Engineering Services, the biggest of seven contractors planning to introduce new contracts, announced its withdrawal in the face of union protests on both sides of the Atlantic.

NG Bailey has now followed Balfour Beatty’s lead, declaring the new contracts to be now "untenable".

Both companies are leading lights of the Heating & Ventilation Contractors Association, which drew up controversial new employment conditions called the Building Engineering Services National Agreement (Besna). The idea was to update Joint Industry Board agreements with contracts that better reflected modern working conditions, with a single agreement replacing five previous ones that date back to the 1960s.

Trade unions campaigned against the reforms, arguing that they represented a pay cut of up to 30% for many members. They were particularly incensed at the ‘sign or be sacked’ attitude of the employers.

NG Bailey today issued this statement:

“The Besna agreement relied on the UK’s leading engineering companies adopting one single agreement that would introduce a modern working environment.

“Following the announcement from Balfour Beatty Engineering Services last Friday, the future of the BESNA is now untenable. NG Bailey can therefore confirm it will withdraw the BESNA contracts and will continue to work to the current working rule agreements. 

“The company welcomes Unite’s statement that it is committed to wide ranging talks on modernising the industry.”

There is still no comment coming from the HVCA on the collapse of its plan.

The five other contractors that had intended to adopt Besna are: Crown House Technologies, Gratte Brothers, Spie Matthew Hall, Shepherd Engineering Services (SES), and T Clarke.

Record housebuilding levels and a focus on the southeast helped Galliford Try grow its half-year revenues 30% and almost double its pre-tax profits.

In the six months to 31 December 2011, Galliford Try completed 1,352 housing units, up 59% on the same period in 2010 and a new company record. This follows a rights issue in 2009 to raise funds for buying land, mainly in the southeast. The land bank now stands at 10,700 plots, 76% of which was bought at post-crash prices.

Group revenue rose 30% to £746.8m in the first half year (H1 2010: £575.9m).

Pre-tax profit was up 89% to £32.2m (H1 2010: £17.0m).

Construction margins slid slightly, from 2.5% to 2.2%.

The £1.6bn construction order book was described as in line with expectations (H1 2011: £1.75 billion).  100% of 2012 projected revenues have been secured, with 67% for 2013 (H1 2011: 100% and 61%).

Chief executive Greg Fitzgerald said: "The group is confident that it is on track to deliver all the objectives of its three year housebuilding expansion plan during the current financial year with our southern biased business performing strongly despite the general economic uncertainty.  The housing market has remained resilient and we are encouraged by the continued strength of the market during the first seven weeks of 2012. 

“The spread of long term work in the group's construction business is underpinning its strength in difficult market conditions. 

“Following our rapid expansion in housebuilding the group will continue its disciplined focus on the regions and market segments where we have proven expertise and experience, concentrated on the south of England.  This approach is expected to deliver revenue and profit growth and support an enhanced dividend and a progressive dividend policy going forward."

Travis Perkins managed to grow its business in 2011 even without the acquisition of the BSS plumbing supplies business, thanks to increased revenues in its merchanting business.

Like-for-like sales were up 6% for the year to 31 December 2011, despite overall market volumes declining by between 4% and 5%.

Including BSS, group revenues were up 52% to £4.78bn.

Adjusted pre-tax profit was up 37% to £297m.

The target was to achieve £8m synergies from the integration of BSS in 2011. That target was well beaten and £20m was achieved - £15m from purchasing and £5m from overheads.  The company is on course to deliver £30m in 2012.  This is one year earlier than anticipated, and £5m more than the original 2013 target.

Chief executive Geoff Cooper said: “2011 was a good year for Travis Perkins. Despite a depressed construction market, we improved services to customers, gained market share, even before the expansion of our network and exceeded our targets from the integration of BSS, continued to outperform our markets, and won further market share. This meant we achieved a good set of financial results with improvements in all key figures.

"Having built the UK's largest distributor of building materials, we will be focusing on growing returns.  With the prospect of the market softening as we go into 2012, the continued improvement in our offer to customers and gains from strategic developments will be the engine of this growth. Our management team has proven itself capable of performing well in tough markets and outgrowing our competitors.  We look forward to another year of solid progress."

On 1 January 2012 the group was reorganised into four divisions: general merchanting, specialist merchanting, consumer and plumbing & heating.

Barratt Developments has reported a 40% rise in half-year operating profits, even greater improvement in recent weeks.

For the six months to 31 December 2011, Barratt’s profit from operations was £61.1m (2010: £43.5m), a 40.5% increase, with operating margin increasing to 6.4% (2010: 5.0%).

Revenues for the half-year increased by 8.6% to £952.8m (2010: £877.6m).

Profit before tax was £21.6m (2010: loss before tax of £4.6m).

The second half of the financial year has started strongly, the company said, with private sales up 22%.

Private forward sales as at 19 February 2012 were up by 24.3% to £693.2m (20 February 2011: £557.9m).

With higher margin land now coming on stream, second half gross margin and operating profit are also expected to be up on last year’s results.

Group chief executive Mark Clare said: “Over the last six months we have continued to improve the performance of the business, despite the wider economic uncertainty. We have delivered a further substantial increase in profits and recently acquired high margin land is now driving further recovery. We have again brought debt and land creditors in below expected levels. We have seen a strong start to 2012 and over the first seven weeks private reservations are running 21.8% ahead of this time last year.”

Business lobby group the CBI has called for a new capital allowance to stimulate private infrastructure spending.

In its pre-Budget submission, the CBI is calling on chancellor George Osborne to stimulating infrastructure investment through new models of private finance, including investment by pension funds. It proposes pooled investment platforms and improved ‘baton passing’ between the construction phase and long-term financing.

The idea is that the new capital allowance, or ‘fall-back depreciation’, would cover infrastructure assets not currently qualifying for capital allowances. This would apply only to future spending, to minimise cost to the exchequer and ensure that the proposal incentivises new private infrastructure spending.

The CBI told the chancellor that a the outset this would cost an average of up to £200m per year if assets are depreciated over 25 years (4% depreciation rate); or an average of up to £130m per year if assets are depreciated over 40 years (2.5% rate).

The CBI argues that this move would unlock new infrastructure investment, ensure that the tax system treats different essential assets in the same way, and improve the attractiveness of the UK as an investment location.

CBI chief economic adviser Ian McCafferty said: “We should ensure our tax system encourages rather than stifles private sector investment through better use of capital allowances. We also need to encourage innovation through our tax system, and design environmental taxes which promote sustainable, value-added growth.”

Construction’s major employer groups have committed to taking on more than 1,500 apprentices between them in 2012 according to the Industry Training Board and Sector Skills Council CITB-ConstructionSkills.

This is up from 900 last year – a 70% increase.

Employers from the UK Contractors Group, Home Builders Federation and Major Home Builders Group have collectively allocated training budgets for 1,560 full time apprentices in their business plans for this year to prepare for an increase in workforce demand expected when the market picks up towards the end of 2013.

CITB-ConstructionSkills director of employer services Mike Bialyj said: “The outlook for apprenticeship recruitment in 2012 is looking much healthier than last year’s figures. As a managing agency, our own recruitment numbers are on the rise but these figures from the major employer groups are also encouraging. It’s clear that employers are carefully planning their 2013/14 workforce now to make sure that they have the skills and talent at the ready to take advantage of the opportunities that will arise.”

UKCG director Stephen Ratcliffe said: “With business conditions remaining difficult, it’s great to see firms on the front-foot and prioritising investment in apprenticeships and talent development. The premium in construction is on the quality of apprenticeship programmes. These additional placements are welcome opportunities for young people to develop the depth of skills they need to secure a long term sustainable career.”

Kier Group plans to take on at least 145 apprentices this year. Head of new entrants Ian Dickerson said: “We have a strong track record of investing in training and supporting apprenticeship programmes and are pleased to announce that this is to continue and expand into 2012. Kier has benefitted greatly from supporting and investing in apprentices. Many of our skilled and valued employees have come into the industry via this route, and we want to continue to source and develop new entrants in this way.”

The Health & Safety Executive has started a four-week intensive inspection campaign focusing on construction sites where refurbishment or repair works are being carried out.

The primary focus is on high-risk activity such as working at height, but inspectors will also be pushing for sites to be clean and tidy with clear access routes.

The campaign runs from  20 February to 16 March.

HSE chief inspector of construction Philip White said: "The refurbishment sector continues to be the most risky for construction workers, all too often straightforward practical precautions are not considered and workers are put at risk. In many cases simple changes to working practices can make all the difference.

"Poor management of risks in this industry is unacceptable. As we have demonstrated in the past, we will take strong action if we find evidence that workers are being unnecessarily put at risk."

During 2010/11, 50 workers were killed while working in construction and 2,298 major injuries were reported.

The proposed merger of Tarmac and Lafarge is set to be blocked by competition authorities.

The Competition Commission (CC) has decided provisionally that the proposed tie-up could damage competition in certain markets for construction materials.

Tarmac parent Anglo American and French materials giant Lafarge are proposing to set up a 50:50 joint venture for their UK operations. The two parties' main overlapping activities in relation to the joint venture are in the production and supply of cement, aggregates, asphalt and ready mix concrete.

In a summary of its provisional findings report published today, the CC has concluded that the joint venture could lead to a substantial lessening of competition in the markets for:

·   the supply of bulk cement;

·   the supply of rail ballast;

·   the supply of high purity limestone, when used for flue gas desulphurization (the abatement of acid gas emissions from coal-fired power stations);

·   the supply of primary aggregates for construction applications in 23 local markets;

·   the supply of asphalt in two local markets; and

·   the supply of ready mix concrete in seven local markets.

As well as the summary of provisional findings, the CC has published a notice of possible remedies, outlining ways that the potential anti-competitive effects of the joint venture could be prevented. The full provisional findings report will be published shortly, it said.

Chairman of the inquiry group, Roger Witcomb, said: “We have a number of concerns about this joint venture. In bulk cement there are currently only four UK producers, and there is evidence that the market is not as competitive as it could be. Prices and profit margins haven't been affected in the way we would have expected following the big falls in the demand for cement in the past few years. We have not reached a view on whether or not there has been coordination in the bulk cement market. But we are concerned that the proposed tie-up would increase the susceptibility of this market to coordination. Some of the reasons for this arise from the proposed combination of the cement businesses and some from the increased vertical integration that would result from the combination of their RMX [ready mix concrete] businesses. Lafarge currently has a relatively small RMX business, while Tarmac has a relatively large one.

“The tie-up could also reduce competition for two specific aggregates products - rail ballast and high purity limestone used for flue gas desulphurization - because of the shortage of alternative suppliers.

“This is a particularly complex investigation because of the number of different products, the varying degrees of substitutability between them, and the fact that cement is an input into RMX and aggregates are an input into both RMX and asphalt. In addition, for aggregates used in general construction applications markets are quite localised as a result of high transport costs compared with product value. The markets for asphalt and RMX are also localised, but for them the issue is perishability. We have therefore had to examine competitive conditions in a large number of local markets for these products in coming to our view on the likely effect of the proposed joint venture on competition.

“We are now consulting on the possible actions we could take in response to the reductions in competition we have found, bearing in mind the close links that exist between the different product markets.”

Morgan Sindall Group has reported steady results for the past year, with revenue slightly up and profit broadly unchanged. Construction margins have taken a hit, however.

For the year to 31 December 2011, Morgan Sindall’s revenues were up 6% to £2,227m. Pre-tax profit was down 2% to £40.0m. Profit before tax, amortisation and non-recurring items was down 12% to £45.3m, from £51.3m in 2010.

The company has been pursuing a strategy of reducing its reliance on public sector work, given that public spending has been cut. In 2009, 70% of work was for public sector clients; last year it was 50%. A further reduction is expected in 2012.

The group order book of £3.4bn is down marginally on the £3.6bn this time last year.

Profitability in the construction and infrastructure division deteriorated, with margin reduced from 2.2% to 1.7%. The division made an operating profit of £21.1m from revenues of £1,268m in 2011, compared to £26.9m from £1,250m in 2010. Order book here is down from £2bn to £1.6bn.

Fit-out revenues were up from £387m in 2010 to £462m in 2011, thanks to growth in retail banking, technology and education sectors, but operating profit fell here too from 2010’s £14.8m to £12.4m in 2011. Fit-out order book was up from £180m at start of the year to £216m by the end.

The urban regeneration division, Muse, saw revenues increased fomr £46m to £57m and operating profit nearly double from £2.0m in 2010 to £3.9m in 2011.

Executive chairman John Morgan said: "We are pleased to report a solid set of results for 2011 in line with expectations, despite continued challenging markets. We are benefiting from being a broadly based business, offering creative, integrated solutions for increasingly complex projects, with a track record of delivery. We are focused on maximising opportunities in sectors we believe offer the most growth and reward. We continue to invest for sustainable growth in the medium-term whilst maintaining a strong balance sheet and dividend."

The building products sector is urging Chancellor George Osborne to spend what little money he has on capital projects rather than current expenditure.

The Construction Products Association has written to the chancellor in advance of his Budget statement next month, with a construction industry wish list. Items on the list include a VAT cut for domestic improvements that improve energy efficiency of homes and more money for export promotion.

Another idea is for the government to buy bonds in housing companies and use them as a conduit for quantitative easing.

CPA chief executive Michael Ankers said of the proposals: “Public sector capital investment will still fall 26% between 2010/11 and 2013/14 despite the announcement made last year for additional capital spending in housing, education and infrastructure.  To ensure the UK economy is given the best possible chance for recovery, it is essential that government focuses on sustainable investment for growth. 

“The 2012 Budget provides the Chancellor with the opportunity to introduce a package of measures to stimulate the economy and deliver growth.  This should include a further rebalancing of public spending away from current expenditure and into capital investment, as this will not only generate economic activity and employment but will increase long term productivity as a result of improving the infrastructure of this country.

“However, key to delivering the infrastructure that the country needs is the attraction of additional private finance to compensate for the shortfall in public capital investment and the use of additional quantitative easing to raise levels of housing supply.”

The CPA suggests that by purchasing bonds through its asset purchase scheme in a company that provides homes, government could increase housing provision. This would also ensure that the quantitative easing is used in a manner that fully benefits the UK economy, the CPA argues, and that the Bank of England has another method for quickly withdrawing the finance associated with quantitative easing without distorting one particular market.

Shepherd Group has promoted Mike Williams to managing director of its recycled and refurbished modular buildings division, Foremans Relocatable Building Systems.

And the new boss is targeting the southeast for growth.

Previously general manager for the hire division of sister company Portakabin, Mr Williams joined the Shepherd Group in 1977 and has more than 30 years’ experience in the modular building sector.

“Foremans is the UK’s largest supplier and purchaser of pre-owned modular buildings”, said Mr Williams.  “We have ambitious plans to grow the business.  Our recent expansion and investment, which has included our strategically-located southern operation in Hemel Hempstead, means we are well placed to continue to increase market share and move into new markets, particularly in London and the southeast.”

“We believe recycled modular buildings have a significant role to play in the current economic climate, offering innovative construction solutions for clients looking for best value.  This is also a very environmentally sound alternative to the demolition and disposal of modular buildings in landfill sites.  We can recycle the building structure which allows other organisations in both public and private sectors to benefit from the speed, quality and lack of disruption of off-site construction, whilst also reducing their carbon footprint.”

A report out today reveals that there is £12bn of office building work planned in London, but finance problems mean that half of them might never get built.

Quantity surveying firm EC Harris says that there are more than 150 projects lined up in the capital, which could deliver up to 53 million square foot of gross office floor area by 2016

Some 85% of this is new build and just 15% is classed as refurbishment space.

However, many of the projects are struggling to attract pre-let tenants and external.

The report, “London Office Development: The Challenge Ahead” confirms that the City of London remains the centre of attention for developers and investors alike, with more than 60% of the total area (34m square foot gross internal area) and more than half of the planned projects located there.  The average size of a City project is about 420,000 square foot gross, nearly twice the size of those planned for the West End or Midtown, reflecting the large scale tower schemes that are planned or under construction such as 20 Fenchurch Street and the Leadenhall Building.

Midtown is characterised by smaller projects, with more than 30 potential developments totalling seven million square foot gross internal area on the pipeline.  In comparison, the West End pipeline is relatively restrained, reflecting the greater planning challenges.  Nevertheless there are still 25 potential developments that could commence pre-construction or start on site over the next five years.  The average development size in the West End is 240,000 square foot gross.

EC Harris head of commercial development Richard Taylor, who wrote the report, said: “On paper, the development pipeline for London offices shows massive potential and investment.  However, in reality the market is very different, with a large number of these projects unlikely to be delivered as they struggle to find pre-lets and external funding.  To stand a chance for success, projects need to differentiate and create a significant market advantage if they are to maximise their chances of completion.”

The growth of this pipeline is directly driven by the reported 25-70 million square foot office space leases that are expected to expire before 2017.  However, the report identifies the euro crisis, diminishing tenant optimism and ever tighter funding markets, as key reasons why might decide to stay put and extend existing leases rather than sign up for unbuilt schemes.

The report makes various recommendations to speculators, such as “create value”, “move fast” and “ensure projects are forward thinking”. It also suggests forming joint ventures to spread risk.

Moves to increase the professionalism of the asbestos removal industry have been boosted by the development of new qualifications to prove the competence of specialists.

Two new qualifications, developed jointly by the Asbestos Testing and Consulting (ATAC) Division of the Asbestos Removal Contractors Association (ARCA) and the Royal Society for Public Health (RSPH) have been recognised by the United Kingdom Accreditation Service (UKAS). 

The qualifications have been recognised as suitable in providing evidence towards an individual’s competence in asbestos surveying, taking and analysing air samples for asbestos, and carrying out the four-stage clearance procedure, to certify an area as suitable for normal reoccupation following asbestos removal. 

The courses are:

RSPH Level 3 Certificate in Asbestos Surveying

RSPH Level 3 Certificate for Asbestos Analysts (Air)

UKAS has confirmed that the RSPH Level 3 Certificate in Asbestos Surveying meets the qualification requirements of RG8 Accreditation of Bodies Surveying for Asbestos in Premises for an individual carrying out asbestos surveys for a UKAS accredited asbestos surveying company.

The RSPH Level 3 Certificate for Asbestos Analysts (Air) meets the qualification requirements of LAB 30 Application of ISO/IEC 17025 for Asbestos Sampling and Testing for an individual taking and analysing an air sample including for four-stage clearances, as wells as the minimum qualification for analysts carrying out four-stage clearance procedures.

These qualifications will receive equal recognition from UKAS to the P Modules provided by the British Occupational Hygiene Society (BOHS). They are certificated through the RSPH and delivered by ARCA.

Kier has poached the boss of May Gurney’s environmental services division to spearheaded its own drive in the waste management market.

Nicola Peake grew May Gurney’s annual revenues in environmental services tenfold in just four years, from £10m to more than £100m. Now Kier wants her to do the same for them.

As managing director of Kier’senvironmental business, Ms Peake reports to Kier Services managing director Claudio Veritiero.
Before joining May Gurney, her previous roles include managing director with Enterprise Facilities Management/Accord and Elyo Uk and finance director of Dalkia Utilities Services.
Commenting on her appointment at Kier, Ms Peake said: “I am delighted to be joining such a robust business, which has great people, and the appetite to maximise opportunities in an exciting, and ever developing market.”
Kier Services managing director Claudio Veritiero added: “I am delighted to welcome Nicola to Kier and am certain that her experience and track record of delivering profitable growth will play a major part in taking our environmental business to the next level.”

Confidence among contractors in Scotland has taken another nosedive, according to the latest quarterly survey from the the Scottish Building Federation (SBF).

The Scottish Construction Monitor is a survey of around 700 individual construction firms that make up the membership of the SBF.

The expectation of weak performance across a range of industry sectors in 2012 means the industry’s confidence rating has dropped by nine points since the last survey and now stands at minus 28 – six points below where it was at the beginning of 2011.

Two out of three Scottish building firms responding to the survey expect publicly funded construction activity to drop in 2012. A third of firms expect construction employment to fall, outnumbering those predicting a rise in industry jobs this year by a factor of more than three to one. And most anticipate another tough year for housebuilding and the private sector, with nine out of ten anticipating these sectors of the industry to remain stagnant or decline over the next 12 months.

The survey found around 60% of employers expect the number of workers and apprentices they employ within their business to remain the same over the next 12 months, but more than 30% think the number of people they employ is likely to fall. Official statistics show that the Scottish construction sector has already lost 30,000 jobs over the 12 months to September 2011.

Repair and maintenance emerges as the sector of the industry with the most positive outlook overall, with more than a quarter of firms predicting activity in this area will rise during 2012.

Although expected to perform better than the public sector, private sector construction activity faces limited prospects in 2012, with 44% of employers saying they expect activity to stay the same and 41% forecasting a decline.

SBF chief executive Michael Levack said the survey results reconfirmed earlier predictions of another tough year ahead for Scotland’s building industry. “The industry has already lost 30,000 jobs in the space of a year. But with more firms anticipating they will have to make redundancies this year than those hoping to recruit, there’s a real prospect that industry employment levels could drop further yet before they start to recover,” he said.

“2012 looks set to be a particularly bad year for public sector construction output, with two out of every three employers expecting the level of publicly funded activity to fall. That’s a natural consequence of the cuts to public funding that will take effect over the next few years. But this survey finds little prospect of the private sector filling that gap, with 85% of firms expecting privately funded activity either to stay constant or to decline.

“The annual rate of new house building in Scotland is now at the lowest level it has been since current records began in 1997. So the fact that an overwhelming majority of construction firms expect housebuilding activity either to remain static or to fall again in 2012 is a particular cause for concern.”

Mr Levack concluded: “Over the coming months, I hope the industry can work constructively with government at all levels to start rebuilding confidence that has been shattered by the economic downturn. An excellent place to start would be to start dismantling the huge unnecessary bureaucracy around procurement and planning that has stifled our industry for far too long.”

Main findings of the Scottish Construction Monitor survey:

• Industry confidence has witnessed a further decline this quarter, down nine points compared to Q3 2011 (the last available survey period), and now stands at minus 28.
• The new confidence rating is now six points below the level of industry confidence recorded at the beginning of 2011.
• The percentage of respondents who are more confident about their prospects for the next 12 months compared to the past year has fallen from 19.3% in Q3 2011 to 15.2% this quarter, while the percentage of respondents less confident about their firm’s future prospects has risen from 46.1% in Q3 2011 to 55.7% this quarter;
• A substantial majority of firms responding expect the number of workers and apprentices they employ to remain the same during 2012. However, the proportion of firms expecting employment to decline within their business this year is around four times higher than the percentage expecting employment to rise;
• Almost two thirds of respondents expect publicly funded construction activity to fall in the course of 2012, while only 7% believe public sector construction activity will rise;
• The general outlook for private sector construction is relatively more positive with 15% of respondents expecting activity in this sector to go up in 2012. However, two in five firms expect this sector of the industry also to decline with the remaining 44% expecting private sector construction activity to remain stable;
• The outlook for the housebuilding sector is muted with only 10% of respondents expecting activity to increase in 2012, almost half anticipating that activity will remain static, and the remaining 40% forecasting that housebuilding will dip further this year;
• The survey results suggest repair and maintenance is likely to be the best performing sector of the construction industry in 2012 with 26% anticipating a rise in activity, just over 50% believing the sector will remain stable, and only 23% expecting activity to drop.

Balfour Beatty Engineering Services has agreed to hold off on plans to introduce new contracts for its employees.

The backdown follows the contractor’s failure to block strike action and threats from the Teamsters union in the USA against Balfour Beatty’s operations over there.

BBES was the biggest of seven members of the Heating & Ventilation Contractors Association (HVCA) that was proposing to introduce new contract conditions, called Building Engineering Services National Agreement (Besna), in place of long-standing Joint Industry Boards (JIB) agreements.

The imposition of the new contracts by BBES was at the heart of a long running dispute that prompted electricians, plumbers, heating and ventilating engineers to vote overwhelmingly for strike action twice.

The withdrawal of the contracts follows talks between Unite general secretary Len McCluskey and BBES chief executive officer Mike Peasland. They will be followed by further high level talks.

A joint statement issued by Unite and Balfour Beatty Engineering Services today said: “The current dispute between Unite and the seven companies who are promoting the BESNA agreement is causing serious concern within the industry and threatens to escalate into a damaging conflict.

The objective of the seven companies was to address perceived shortcomings within current working rules agreements and to offer ways to create a more modern approach in the current competitive environment.

“Unite understands the questions raised by those seven companies and believes a review of the JIB and other industry working rule agreements is desirable.

“BBES has agreed to withdraw the BESNA contracts and Unite has agreed not to pursue further industrial action or protest on the basis that wide ranging talks will now take place on modernising the industry. Both parties are committed to high level talks within an agreed timeline with the aim of creating new proposals and ensuring agreed terms are honoured.

“It is the intention of Unite, along with the employers’ associations and reputable companies, to bring stability and fairness to this section of the construction industry.”

Unite general secretary Len McCluskey added: “Balfour Beatty’s decision to withdraw these contracts, the threat of dismissal and to enter high level talks is a welcome move. Not only is it a victory for common sense, but it is testament to the resolve of hard working construction workers who have stood shoulder to shoulder to defend their livelihoods.

“Continuing to impose these contracts would have resulted in a race to the bottom that would have been bad for the industry. We expect the other six construction firms to see sense and follow Balfour Beatty’s lead in talking seriously about securing livelihoods and bringing stability to the industry.”

The Scottish government is trying to quell nationalist resentment at construction contracts being award to companies from outside of Scotland by highlighting domestic componentry of the £1bn Forth Replacement Crossing.

The £790m main construction contract went to a mainly foreign owned consortium, Forth Crossing Bridge Constructors (FCBC), which includes Hochtief of Germany, Dragados of Spain and American Bridge of the USA, as well as Morrison Construction, which at least used to be Scottish.

Steel is being sourced in China, Poland and Spain.

And cement and admixture materials are coming from England – from Aggregate Industries.

Project client Transport Scotland has sought to reassure those nationalists of a chauvinistic nature, however, by issuing a statement that ready-mix pre-batched concrete will be supplied from two local businesses for the many small quantity concrete works associated with the bridge approach roads.

The first of these is with Tarmac, from its facilities in South Gyle and Livingston, which will supply works on the south side of the Forth.

The second supplier is the Skene Group, from its facilities in Fife, for the works on the north side of the Forth.

A subcontract for aggregates supply for the concrete to be used in the main bridge has been awarded to Tarmac from the Revelrig Quarry, West Lothian and facilities in Lanarkshire.

In fact, 870 out of 1,041 supply orders awarded on the principal contract have already gone to Scottish companies, said Scottish infrastructure secretary Alex Neil.

In a bid to quell growing political unease over procurement on the project, Mr Neil said: "The FRC project is delivering and will continue to deliver real benefits for Scottish businesses and Scottish workers. It will support 1,200 Scottish jobs and secure an additional 3,000 more. Construction will deliver an annual average of 45 vocational training positions, 21 professional body training places and 46 positions for the long term unemployed, as well as providing further scope to maximise Modern Apprenticeship opportunities.

"FCBC are building the biggest transport infrastructure project in Scotland for a generation, on time and on budget. Their supply chain and subcontracts are commercial matters however, we recognise the recent public interest and these latest deals are clear evidence that Scottish firms will benefit from the FRC.

"We are currently nine months into a six year construction period and there are many more subcontracts from the Principal Contract to come.   118 Scottish firms have already risen to the challenge of working on this iconic project – and the total value to Scottish firms is around £20m with more to be announced. In addition, 870 out of 1,041 supply orders awarded on the principal contract have already gone to Scottish companies.”

A new industry qualification for installing solar panels has been developed in a bid to combat the rising phenomenon of leaking roofs caused by botched installation.

The National Construction College (NCC) has developed a training course and national vocation qualification (NVQ) for solar panel installation.

Last year the National House Building Council blamed the rise in leaking roofs on the boom in solar panels and had to issue industry guidance on how they should be installed.

The NCC said that the NVQ would give roofers proof of competence to reassure customers. The solar panel installation course takes just one day and is aimed at experienced Construction Skills Certification Scheme (CSCS) card carrying roofers who would like to obtain these skills or wish to meet industry accreditation standards. For those who need to complete a competency based qualification in order to apply for a CSCS card, a further half day course is available to include an NVQ qualification.

The solar panel installation course covers all aspects of installation for different types of roof structure or configuration, and comprise of classroom based theory, practical skills training and an exam prior to certification. The NVQ element will be will be delivered in a half day workshop, on site observation and site diary.

NCC director Andy Walder said: “With the Green Deal coming into effect in October installers will need to be able to provide proof of formal competence in their area of expertise to take advantage of these opportunities and this can be achieved by undertaking our new solar panel installation programme. “

A legal challenge by Balfour Beatty against strike action in its engineering services division has been rejected by the High Court.

Balfour Beatty Engineering Services (BBES) had tried to halt the prospect of strike action by challenging a ballot of electricians, plumbers, heating and ventilating engineers. The ballot saw a vote of two to one in favour of strike action.

The ruling was welcomed by the Unite union, which had organised the ballot.

In his ruling Mr Justice Eady said: “It seems to me that, so far as reasonably practical, every person entitled to vote had a voting paper sent to him/her and also was afforded a convenient opportunity to vote by post.”

The judge also commented "Indeed, I think it fair to say that Unite went to considerable lengths to ensure democratic legitimacy which might be thought to exceed what would ordinarily be expected."

He went on to add: “I am not persuaded that Unite is threatening or intending to do anything that would be unlawful. There would be no ground, therefore, on which to grant an injunction.”

Lawyers for BBES had argued that Unite had breached section 230 (2) of the Trade Union & Labour Relations (Consolidation) Act 1992. The lawyers argued that Unite had failed, so far as reasonably practicable, to ensure that everyone who was entitled to vote in the ballot had received a ballot paper.

Unite general secretary Len McCluskey said: “This is a historic ruling that supports our members’ legitimate right to strike. All too often employers are trying to use the courts to undermine the democratic will of their workforces, when they should be putting their energies into resolving disputes. We trust that employers will now recognise that disputes aren’t settled in the court room but around the negotiating table.”

Fourteen Polish migrant workers have won a £250k payout from an employment tribunal after their union exposed their exploitation.

The tribunal backed their claims that they had unexplained deductions, amounting to nearly £18,000 each, taken from their wages unlawfully.

The GMB union, representing the 14, said that the case highlighted the exploitation of migrant workers on UK construction sites. It said that there were a further 70-plus migrant workers on the same job who were not union members and have had no redress for having their wages deducted.

GMB officers found that sums on pay slips bore no relation to the money going into the workers’ bank accounts.

The union successfully pursued a claim for £251,204.81 at the employment tribunal in Cardiff on behalf of 14 Polish migrant workers who were employed as laggers by thermal insulation subcontractor Darmar in the construction of Uskmouth Power Station in South Wales in 2010.

GMB saw documentation that showed that the Polish workers were £1200 a month out of pocket. They had not been paid the 19 hours a week overtime that they were due, they had had no periodic leave payments or travel allowance for seven months, and they were deducted one days lodging allowance every week.

Jeff Beck, GMB regional officer who represented these workers, said: “These Polish migrant workers suffered exploitation at the hands of their employer who made unlawful deductions from their wages and allowances due to them. GMB took up a claim for them at the Cardiff employment tribunal.

“As a consequence the tribunal judge made an order against Darmar for compensation for the unlawful deductions and injury to their feelings which totalled 251,204.81.

“This is a prime example of the exploitation of migrant workers which the GMB will not tolerate and will expose at every opportunity. Hopefully this award will send a loud and clear message to any unscrupulous employers contemplating the same.”

Phil Whitehurst, GMB lead organiser for engineering construction, added: “Uskmouth is living proof that exploitation of migrant workers is taking place on major UK engineering construction projects.

“Uskmouth was a Category 1 NAECI site with an independent auditor but the exploitation of these migrants by Darmar still went on unnoticed by them and the principal contactor Siemens.”