Balfour Beatty

Economy secretary assures parliament over jobs and future of AWPR

Keith Brown on a visit to the AWPR site last year

Cabinet secretary for the economy, jobs and fair work, Keith Brown, has moved to reassure MSPs that disruption and job losses caused by Carillion’s collapse would be minimised in Scotland, though the minister stopped short of giving an opening date for the Aberdeen Western Peripheral Route (AWPR).

The UK’s second-biggest builder entered liquidation on Monday after racking up debt and pensions burdens of around £1.5 billion.

The firm formed one-third of the Aberdeen Roads Ltd (ARL) consortium leading the £745 million AWPR work alongside Balfour Beatty and Galliford Try.

In a topical question at Holyrood, Aberdeenshire East MSP Gillian Martin raised concern for jobs dependent upon the project and also the knock-on effect on smaller companies in the supply chain in the North East and throughout Scotland.

In response, Mr Brown said that support is available to any workers who may be concerned for their jobs, with help and advice to be made available to subcontractors through a designated Scottish Enterprise helpline.

Furthermore, the cabinet secretary assured parliament over the contract to deliver the AWPR scheme with the other firms involved in the consortium making clear that they will fulfil their contract obligations and had “very quickly” notified the London Stock Exchange of their intention. Mr Brown confirmed that Transport Scotland will support and work with them throughout this process.

The economy secretary said he was unable to give a “cast-iron guarantee” that jobs would not be lost as a result of the liquidation of the company, but said there was a “good chance” employees would continue to work on existing projects.

When asked about the future of Carillion employees working on the bypass, Mr Brown said: “I think it is likely that the two remaining contractors will require work to be done that was previously done by the employees of Carillion.

“I don’t want to be too definitive, but there’s around 70-plus employees, direct employees of Carillion, employed on that contract plus 190 employed on other terms, including some agency staff.

“We can’t give a cast iron guarantee on the workers but I think there is a good chance that many of those will be reemployed and for those that are not we have offered the assistance I have previously mentioned.”

On the day of Carillion’s collapse, the joint venture firms indicated that the announcement leaves a financial hole of £40-80m in the AWPR project.

Galliford Try said: “The terms of the contract are such that the remaining joint venture members, Balfour Beatty and Galliford Try, are obliged to complete the contract.  Our current estimate of the additional cash contribution outstanding from Carillion to complete the project is £60-80m, of which any shortfall will be funded equally between the joint venture members. The companies will discuss the position urgently with the official receiver of Carillion and Transport Scotland, to minimise any impact on the project.”

Mr Brown had said the Scottish Government’s Partnership Action for Continuing Employment (PACE), which helps people facing redundancy, would be available for those under threat.

He said PACE would also be available if anyone should lose defence jobs.

Gillian Martin MSP said: “Our first thoughts when businesses face such serious difficulties should always be for those who may be facing uncertainty over their jobs and their future, and it was encouraging to see parliament united in support of them today.

“I am grateful to the cabinet secretary for the support being made available both to Carillion employees and to subcontractors who may have concerns at this time.

“Early confirmation from the other partners in the Aberdeen Roads consortium that they intend to press ahead and deliver the AWPR contract will be hugely reassuring for my constituents. I know people and businesses across the North East are looking forward to the opening of the much-needed £750 million new route this year, and I will be engaging with the Scottish Government and Transport Scotland going forward to ensure that remains on schedule.”

Meanwhile, the Scottish  Government has set up helplines for anyone who may be affected by the failure of the construction firm.

Scottish companies affected by the Carillion insolvency can call Scottish Enterprise on 0300 013 3385 or register their details here.

The redundancy helpline operated by Skills Development Scotland is 0800 917 8000, with help also available here.

It was also announced today that banks and government were working together to mitigate the effects of Carillion’s collapse on businesses within the supply chain.

Contingency plans take hold in wake of Carillion collapse

Carillion is part of a coalition delivering the Aberdeen Western Peripheral Route (AWPR)

Clients and joint ventures partners of collapsed contractor Carillion have taken steps to begin contingency plans after the firm entered compulsory liquidation today.

An application was made to the High Court for a compulsory liquidation of the UK’s second largest construction company before opening of business this morning after talks with the UK government to save the company were unsuccessful.

The firm had been involved in the £745 million Aberdeen Western Peripheral Route (AWPR) and had contracts with Registers of Scotland, the Scottish Children’s Reporter Administration, West of Scotland Housing Association and NHS Greater Glasgow and Clyde among many others.

Network Rail awarded Carillion a contract last year to deliver platform extension works and the firm is also responsible for two facilities management contracts worth £158m with the Ministry of Defence (MoD) which cover 83 military sites in Scotland.

Contingency plans have now been put into effect with the hope to minimise disruption to the projects.

Galliford Try is in joint venture with Carillion and Balfour Beatty on the construction of the £550m section of the AWPR between Balmedie and Tipperty for Transport Scotland.

“The Scottish Government are in discussions with the liquidators and the UK government to support Carillion employees and secure the completion of contracts.”

Economy secretary Keith Brown

Galliford Try said: “The terms of the contract are such that the remaining joint venture members, Balfour Beatty and Galliford Try, are obliged to complete the contract.  Our current estimate of the additional cash contribution outstanding from Carillion to complete the project is £60-80m, of which any shortfall will be funded equally between the joint venture members. The companies will discuss the position urgently with the official receiver of Carillion and Transport Scotland, to minimise any impact on the project.”

A Transport Scotland spokesman reiterated the bypass project will be completed by the spring.

He said: “We expect that any impact on the AWPR will be mitigated by the fact that Carillion’s construction partners are joint and severally liable and as such, the other two construction partners remain fully responsible for the completion of the works.

“Aberdeen Roads Limited, the construction joint venture for the project, confirmed recently that they remain committed to the delivery of this project.”

Amey has incorporated joint ventures with Carillion to deliver the regional prime and national housing contracts for the MoD, through the Defence Infrastructure Organisation (DIO). These contracts maintain the MOD estate in the UK.

It said: “The terms of the joint ventures’ arrangements mean that Amey will continue the services now that Carillion has announced it is entering into immediate compulsory liquidation. Amey is committed to doing this and ensuring continuity of service to the DIO and MOD and the service men and women in the UK.

“For the past few weeks, Amey has been working on detailed contingency plans with the DIO and the Cabinet Office to ensure it can effectively continue to manage the contracts and these are being implemented today.

“Amey confirms it is fully prepared to continue the service obligation of the contracts without adverse effect on the employees of the joint ventures or the supply chain.”

Network Rail commissioned Carillion for both the Waverley platforms extension project and the electrification of the railway line through Shotts.

In addition, the firm was also contracted for platform works at Broughty Ferry and Aberdeen railway stations.

Carillion Powerlines secured an £11.6m contract to carry out electrification work on the Shotts line in December

A Network Rail spokesman said: “We are activating our contingency plans as a result of this unfortunate news.

“We will be working closely with the administrators and Carillion’s management team to ensure projects that they are working on continue and that the supply chain is maintained for this important work.

“Our aim is to ensure that this news has as little impact as possible on our projects to grow and expand the railway network.”

Kier Group, which currently operates joint ventures involving Carillion on HS2 and the Highways England smart motorways programme, jobs, will now have to take them on alone or seek a new partner.

A Kier spokeswoman said: “We have put in place contingency plans for each of these projects and are working closely with clients so as to achieve continuity of service.

“Following today’s announcement and after a short period of transition for these contracts, we do not expect there to be an adverse financial impact on the group arising from these joint venture contracts.”

The Construction Industry Training Board (CITB) said that it was “taking steps to secure the future of the 1,400 Carillion apprentices” by redeploying them to other firms.

CITB chief executive, Sarah Beale, said: “The news of Carillion entering insolvency is clearly a significant blow to the UK construction sector. While this will present the sector with a number of challenges, CITB’s priority is to do all it can to ensure that Carillion apprentices can continue their training so their skills are not lost.

“We have established a project team to work with the apprentices and will be offering in principle grant and apprenticeship transfer incentives to our employer base in order to retain these learners. We will be working closely with the ESFA, the official receiver and our network of college providers so that every possible support is in place to help these apprentices continue their training. We will be liaising with the official receiver with a view to contacting the apprentices as soon as possible.”

The Scottish Government said it is in talks to support Carillion employees and secure the completion of contracts in Scotland.

Cabinet secretary for the economy, Keith Brown, said: “Our first thoughts are with those Carillion employees who will be concerned for their jobs today and we are in discussions with the liquidators and the UK government regarding the measures they intend to put in place regarding private sector, Network Rail and UK govternment-backed contracts in Scotland to support Carillion employees and to secure the completion of these contracts.

“The Scottish Government has been working to manage or eliminate risks associated with Carillion’s difficulties since July last year and we have contingency plans in place for affected contracts, including the AWPR where the contract contains a mechanism for the remaining two joint venture partners to deliver the project and we expect that work to continue.

“I have spoken to the Secretary of State for Scotland this morning and my officials have also spoken with PwC to establish the situation and should it be necessary we stand ready to support for any affected employees through our Partnership Action for Continuing Employment (PACE) initiative which aims to minimise the time individuals affected by redundancy are out of work.”

Aberdeen bypass contractor fined over river pollution

SEPA chief executive Terry A’Hearn

The consortium building the new Aberdeen bypass has been issued with a £280,000 penalty for a series of silt pollution incidents on the rivers Don and Dee.

Aberdeen Roads Limited, a joint venture including Balfour BeattyMorrison Construction and Carillion, was deemed responsible for the incidents on the important salmon rivers along with some tributaries.

The case if the first major enforcement of new powers by the Scottish Environment Protection Agency (SEPA) and will see over £280,000 committed to community projects and environmental improvements across Aberdeenshire.

Following extensive investigations and enforcement action by SEPA between 2015 and 2017, the Construction Joint Venture (CJV) building the multi-million pound Aberdeen Western Peripheral Route (AWPR) have offered the funding in an Offer of Enforcement Undertaking, after causing a series of silt pollution incidents which affected the Aberdeenshire rivers.

The Enforcement Undertaking admits full liability by the AWPR B-T Construction Joint Venture (CJV) for the pollution and will result in the funding being divided between eight community initiatives as a penalty for the disruption and environmental impact.

The offer, which required the Construction Joint Venture to engage with local stakeholders, has been formally accepted by SEPA, thus securing one of the biggest financial outcomes for an environmental offence in Scotland.  It is only the fourth of its kind to be accepted by SEPA.

Granted as a new enforcement power in June 2016, an Enforcement Undertaking represents a formal offer by an organisation or individual to make amends for an offence by improving the environment or communities affected, using their own resources.

The new enforcement power can be used to bring about effective and immediate solutions to environmental offences and requires the offender to work with SEPA to ensure ongoing compliance in future, as well as making appropriate restitution.

SEPA chief executive, Terry A’Hearn, said: “Every day SEPA works to protect and enhance Scotland’s environment and we will respond robustly to organisations who fail to comply with environmental controls. Every operator must comply.

“It’s right that the Construction Joint Venture should offer this significant enforcement undertaking in recognition of the environmental impact of their actions, which resulted in a series of silt pollution incidents impacting numerous tributaries to Aberdeenshire rivers, the Dee and the Don.

“We are delighted that CJV has become one of the first operators to use the new enforcement undertaking.  The CJV has stepped forward, accepted responsibility and set out to put things right.

“An enforcement undertaking not only compels those who breach the law to make amends, it instils a more positive working relationship based on understanding the duty we all share in safeguarding our natural environment.”

 

Aberdeen Roads Limited is constructing the new 36-mile road which will provide a fast link between towns between the North, South and West of Aberdeen.

The project is being delivered by Transport Scotland on behalf of the Scottish Government and in partnership with Aberdeen City Council and Aberdeenshire Council.

The silt pollution was caused by heavy rainfall which led to muddy water running off the construction site into waterways.

An enforcement notice was issued to contractors last year after concerns were raised at the time about the impact it could have on salmon and freshwater pearl mussels.

Transport Scotland said: “We take our environmental responsibilities very seriously and have been working closely with SEPA and the contractor, Aberdeen Roads Ltd (ARL), to ensure the watercourses on site are protected from construction activities.

“We welcome any measures that have been agreed between SEPA and ARL where they result in a positive impact on the environment.”

The biggest beneficiary of the undertaking is the Dee District Salmon Fishery Board, which will receive £112,500 for improvement projects relating to diffuse pollution, and £37,500 to fund an agricultural officer for two years to assist farm owners in reducing diffuse pollution in the River Don.

Richard Gledson, chairman, Dee District Salmon Fisheries Board, added: “Silt pollution from the construction of the Aberdeen Western Peripheral Route gave us great cause for concern, particularly as the River Dee is designated as a special habitat for both salmonid fish and fresh water pearl mussels, which rely on a delicate eco-system to feed and spawn.

“We welcome both the immediate response by SEPA, including the temporary restriction of construction activity, their investigation, and today’s enforcement undertaking. This will provide for environmental improvements that will go some way to offsetting the impact on local communities and the environment.”

In addition to the funding for community and environmental benefits, SEPA will also recover £47,958 as part of the offer. This lump sum will be made by the CJV as a contribution towards the time spent investigating the various pollution incidents which resulted from their construction works.

Balfour Beatty ‘on track’ as turnaround plan takes hold

Leo Quinn

Leo Quinn

The second phase of Balfour Beatty chief executive Leo Quinn’s ‘Build to Last’ transformation programme is continuing to deliver “fundamental change” to the company, according to a trading update issued this morning.

The update, which covered the period to 11 December 2017, revealed that group performance in 2017 remains in line with Board expectations, with the business increasingly confident of achieving industry-standard margins in the second half of 2018.

The group continues to win new business in its chosen markets on terms and at rates which reflect the bidding discipline and risk management introduced under Build to Last. The 2017 year end order book is expected to be broadly in line with the half year, post disposals.

The company continues to execute its strategy to simplify the group and strengthen the balance sheet. The proceeds from the recent disposal of Heery International, operating cash flows and expected future sales from the Investments portfolio, place Balfour Beatty in an excellent position to pay down borrowings as they fall due in 2018.

Quinn, who joined Balfour Beatty as chief executive at the start of 2015 with instructions to save the company after its £304 million loss in 2014, said that he expects the year end net cash to be in line with prior year, with average net cash for the year around £40m.

Leo Quinn said: “The actions that we have taken during the first three years of Build to Last have laid a solid foundation for long term profitable growth. We continue to invest in our capabilities while de-risking the business.

“The order book increasingly consists of projects bid and delivered under our enhanced transparency, governance and controls and I remain confident that the group will achieve industry-standard margins in the second half of 2018.”

Balfour Beatty’s full year 2017 results will be published in March 2018.

Balfour Beatty signs £55m Forth Valley College construction contract

The New Falkirk Campus is due to commence construction this year

The new Falkirk campus is due to commence construction this year

Balfour Beatty is to deliver the final phase of construction work to the new £55 million Falkirk campus of Forth Valley College.

The infrastructure group will be responsible for the construction of the 20,709 square metre Science and Engineering campus and its associated facilities in Grangemouth, which on completion will become the Forth Valley College headquarters and house over 2,000 full-time students.

The search for a contractor to build the campus began in December last year when the full business case was approved by the Scottish Government and the Scottish Funding Council. The £83m facility will be located on the college’s former Middlefield site on Grangemouth Road and will include modern, flexible and technology-enabled spaces and will boast industry standard workshops, laboratories and classrooms.

The state-of-the-art campus will also have a Learning Resource Centre, food outlets, hair and beauty salons, conference space and sports facilities. In addition, the campus will be built with sustainability in mind and is aspiring to achieve a BREEAM rating of very good or excellent.

Architectural firm Reiach and Hall, which also designed the College’s new Alloa and Stirling campuses, has been appointed to design the new campus. Other key partners include the Scottish Government, Scottish Funding Council, Scottish Futures Trust and AECOM.

falkirk-campus-signingBalfour Beatty said it has utilised a range of its in-house capabilities, including mechanical and electrical engineering expertise and specialist geotechnical knowledge to meet the project’s requirements and provide the client with an integrated, sustainable design.

Hector Macaulay, managing director of Balfour Beatty’s regional business in Scotland, said: “This is another great win for our business in Scotland, and we are delighted to be able to provide over 2,000 students in Falkirk with a stimulating and exciting study environment.

“Throughout the project lifecycle, we will work closely with a variety of key community stakeholders including the Polmont Young Offenders Institution, Forth Valley Community Focus and The Engineering Trust to drive further benefit and deliver on our added social value promises.”

Works are due to commence this Autumn, and at construction peak will employ over 250 individuals including 18 apprenticeship positions and opportunities for 10 long term unemployed people.

Balfour Beatty to sell its US professional services business for £42m

heery-internationalBalfour Beatty has reached an agreement to sell its US professional services business Heery International to a subsidiary of CBRE Group.

The transaction, which is subject to certain contractual consents, is expected to complete before year end for a total cash consideration of $57 million (c.£42m), subject to working capital and debt adjustments.

For the year ended 31 December 2016, Heery’s gross assets were £78.2m, net assets were £21.5m and profit before tax was £2.4m. Balfour Beatty said the transaction “will release funds to be used in the normal course of business”.

Balfour Beatty acquired a 50% interest in Heery in 1986, which it increased to 100% in 1990.  In certain US markets, however, acting as programme manager on a contract precludes a company from bidding as general contractor due to perceived conflicts of interest.

The sale of Heery removes this constraint from the group’s US buildings operation, while enabling it to partner with Heery on a wide range of potential projects going forward.

Leo Quinn, Balfour Beatty group chief executive, said: “We continue to focus and strengthen the Group in our chosen markets. This transaction is another example of maximising shareholder value at the appropriate time and value, while improving our strategic position. We look forward to continuing our strong working relationship with CBRE.”

Balfour Beatty to vote in favour of CITB

Leo Quinn

Leo Quinn

Balfour Beatty has revealed it is set to vote in favour of keeping the Construction Industry Training Board (CITB) after receiving “assurances” from the skills body, just weeks after group chief executive Leo Quinn described it as “unaccountable”.

Last month, Mr Quinn said Balfour would likely vote against the continuation of the CITB because of a “fundamental weakness” within the organisation.

The training body failed to deliver the skilled workers the construction sector requires, was too big, bureaucratic and unaccountable, he added.

However the contractor has now appeared to change its position.

In a statement Balfour said: “Last month Balfour Beatty set out its concerns over the lack of clarity ahead of the triennial CITB consensus vote.

“Since then, Balfour Beatty has held a number of further meetings with the CITB.

“The CITB has now provided Balfour Beatty with appropriate assurances and preliminary details about the reforms.

“It has demonstrated that it understands the urgency and magnitude of change necessary to create a CITB which will better meet the needs of the UK construction industry and help create the skilled workforce necessary to deliver the enormous pipeline of planned works.

“Balfour Beatty believes that further work on the governance of the CITB is necessary. We are willing to work constructively, with the CITB and our industry partners, to ensure that the CITB has governance which is fit for purpose as soon as is practical.

“It is unsatisfactory that the vote on the consensus is taking place before full publication of the reform plans.

“This has meant that industry has had to vote without having the detail it needs to make an informed decision.

“Nonetheless, in light of the assurances received from the CITB and its management Balfour Beatty has decided to vote in favour of the consensus to enable the CITB to rapidly deliver on these commitments.”

Sarah Beale, CEO of CITB, added: “We welcome today’s announcement from Balfour Beatty and agree that CITB’s reforms must make us more accountable to industry.

“Our discussions with Balfour Beatty reflect how we want to go forward with industry, with open lines of communication and agreed outcomes. There is no doubt change needs to happen.  All levy payers should know that we are listening to them and will adapt to support their needs now and in the future.”

100 jobs lost as liquidator appointed to Dundee electrical firm

Scottish Electric Group was working on the new Dundee train station hotel

Scottish Electric Group was working on the new Dundee train station hotel

A Dundee professional electrical services company has gone into liquidation resulting in nearly 100 jobs losses.

Johnston Carmichael has been appointed as provisional liquidator of Vasanat International Ltd, trading as Scottish Electric Group, which was placed in provisional liquidation on August 29.

The company offered a range of professional electrical services and employed 99 staff, all of whom will be made redundant.

It was working alongside Balfour Beatty providing mechanical and electrical works on the hotel element of the new £28 million Dundee train station.

Donald McNaught, restructuring partner at Johnston Carmichael, said the business had faced prolonged cash flow pressure which, despite the efforts of management, it was unable to overcome.

He added: “Our main objective going forward will be to preserve value in the Scottish Electric Group’s remaining assets to maximise the return to creditors.

“Unfortunately, the process has resulted in job losses and we will work with the relevant government agencies to ensure employees are provided with the appropriate support.”

Companies House records show a floating charge over all of the assets was given to Bibby Factors Ltd in April.

The company noted in abbreviated accounts for the 2016 year to June it had debts of £1.38 million falling due within one year, up from £836,000 in 2015.

A9 dualling shortlist revealed as first section prepares to open

A9 Kincraig DalraddyThe first section of dual-carriageway to be built as part of the A9 dualling programme will be open to traffic in the coming days as companies bidding to construct the next sections are revealed.

Cabinet secretary for economy, jobs and fair work, Keith Brown, announced the news during a visit to inspect finishing work on the two year construction programme for the new £35m road between Kincraig and Dalraddy.

The minister highlighted that the new 7.5km section of dual-carriageway will deliver a range of benefits to the public and the Scottish economy.

A9 Kincraig Dalraddy 3Mr Brown said: “When this section is open to traffic, drivers will enjoy safer opportunities to overtake, a reduction in frustration, reduced congestion, improved journey times and a better experience travelling between the central belt and Inverness.

“Building this section first should be particularly warmly welcomed by drivers as it introduces dual-carriageway to what has been one of the longest stretches of single carriageway on the A9.

“It will also make an important contribution towards our goal of inclusive sustainable economic development by opening up our country for trade and tourism.

“This is a significant milestone towards achieving the Scottish Government’s ambitions to introduce more than 80 miles of new dual-carriageway on the A9 all the way from Perth to Inverness by 2025.”

A9 Kincraig Dalraddy 2As work on the Kincraig to Dalraddy section draws to a close, Farrans Construction and Roadbridge JV; Wills Bros. Civil Engineering and Lagan Construction Group JV; Dragados, S.A. and Balfour Beatty Civil Engineering have been shortlisted to construct the next 9.5km section between Luncarty and Pass of Birnam.

Mr Brown added: “Work on the A9 Dualling Programme is continuing at pace, with preferred routes having been identified for more than 90 per cent of the programme, and we expect to award the contract for the Luncarty to Pass of Birnam section in the first half of 2018.

“The A9 dualling programme is already delivering for our economy by supporting nearly 1,200 engineering-related jobs with many more in the pipeline.”

The construction related traffic restrictions on the Kincraig to Dalraddy section will be removed once a range of finishing works, which are currently under way, have been finalised and the necessary safety audits are completed.

The £35m contract to design and construct the Kincraig to Dalraddy section is being delivered by Wills Bros Civil Engineering and John Paul Construction as part of a joint venture.

Balfour Beatty set to vote against ‘unaccountable’ CITB

Leo Quinn

Leo Quinn

Balfour Beatty has revealed that it is likely to vote against the continuation of the Construction Industry Training Board (CITB) because of a “fundamental weakness” in the training body.

In an article on the firm’s website, chief executive Leo Quinn said the training body has failed to deliver the skilled workers the construction sector requires and the industry “cannot afford to lose another three years” if CITB reforms fail to materialise.

According to Mr Quinn, Britain’s economy demands better value from industry training boards which, he argues, need to have the same accountability as the companies that pay their levies.

The CITB is currently facing its triennial Consensus vote which it needs to win to allow it to continue collecting levy cash from contractors.

But Mr Quinn revealed that Balfour Beatty is planning to vote against Consensus.

“Right now, the Construction Industry Training Board (CITB) is undergoing its triennial Consensus,” Mr Quinn said. “That’s a vote by all those businesses that pay its costs, to agree it has their support to collect its funding Levy from them for another three years. Currently, the CITB occupies a pivotal role in providing all of us in the sector with the skilled workers we need. Bluntly, the present skills shortage shows it hasn’t been doing this for some time.”

He added: “Given that CITB raises £200m a year via the levy, the lack of detail in the information it has provided to date is truly concerning. And were the industry to vote ‘no’ at Consensus and cause the CITB to be wound up, any and all liabilities run up (e.g. pension buy-out)  would fall to the industry to settle – a severe inducement for levy-payers not to exercise that prerogative. Combining the general lack of transparency on strategy, controls and fiscal approach, this is a level of accountability which would be deemed unacceptable in virtually any other public arena in the UK.

“To justify its continued existence alongside the wider Apprenticeship Levy, it must deliver what its Levy-payers – let alone the UK as a whole – critically need: the newly skilled workers to upgrade our infrastructure. Based on the information released by the CITB to date, we have little basis for confidence and strongly believe this it too important to leave to chance.

“Which is why Balfour Beatty is likely to vote against Consensus. Before making a final decision, however, we ask one more time to see detailed information in relation to the reform and governance issues raised above.”

Mr Quinn said: “This is not the first instance of the industry being told CITB will reform itself. This time, we cannot afford to lose another three years if it fails to deliver.”

CITB said it welcomed Leo Quinn’s interest in its governance and performance and that its reforms have wide support from the industry.

Sarah Beale, CEO of CITB, said: “We agree that CITB needs to see through its reforms, and that the industry needs to be able to hold CITB more strongly to account. Reform of CITB has already started and full details of our complete reform plan will be shared in November, ensuring full alignment to the ITB review recommendations.

“Our biggest ever industry consultation held this spring suggests that a majority of firms, including the smaller employers that dominate our industry, broadly welcome CITB’s reforms. These include streamlining what we do to provide better value for levy payers, embracing the modernisation agenda to help all construction firms become more productive, and ensuring that standards, training, support for careers and our reformed grants scheme are in place to meet industry’s key skill needs.

“We have also made it clear that we will work closely with our industry, with employers of all sizes and across Britain, to agree our objectives and to ensure that we are held to account in delivering them. We are confident that a reformed CITB, with active support and challenge from industry, will be well-placed to meet construction’s challenges ahead.”

CITB will publish the results of Consensus at the beginning of November 2017.