West of Scotland Housing Association

Housing association planning to transfer Carillion repairs deal to new contractor

West of Scotland Housing Association (WSHA) is working to transfer its repairs and maintenance work to a new contractor following the demise of Carillion.

The construction and support services business, which was placed into compulsory liquidation yesterday morning, had been providing facilities management services for WSHA since it was appointed last August.

The contract saw Carillion deliver WSHA’s planned maintenance programme, installing new kitchens, bathrooms and heating systems in tenant’s homes.

Following yesterday’s announcement, West of Scotland Housing Association told our sister publication Scottish Housing News: “West of Scotland Housing Association has been working with Carillion PLC over several months to transfer the day to day repairs and planned maintenance contracts to Robertson FM.

“We want to assure our tenants and owners that we are working towards a smooth transfer of services which will mean they will not be adversely affected by the recent announcement made by Carillion.”

The UK’s second largest construction company, Carillion had been in emergency financing talks with its lenders and the banks since last week after suffering from debts of £1.15 billion and a pension shortfall of over half a billion.

Its current Scottish projects include the extension of platforms at Edinburgh Waverley station and the new £745 million Aberdeen bypass.

The firm is also responsible for two facilities management contracts with the Ministry of Defence (MoD) worth £158m which cover 83 military sites in Scotland.

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.”

West of Scotland appoints Carillion to deliver day-to-day repairs

carillion logoWest of Scotland Housing Association (WSHA) has announced the appointment of Carillion to deliver their day-to-day repairs contract from August 1.

The contract builds on the existing relationship with Carillion which currently provides a high level of customer service delivering WSHA’s planned maintenance programme, installing new kitchens, bathrooms and heating systems in tenant’s homes.

WSHA is committed to delivering an outstanding service to tenants and believe that the appointment of Carillion will lead to an increase in satisfaction with the repairs service.

Tenants will have an increased opportunity to shape ongoing service improvements via routine repair post-inspections. They will also benefit from improved emergency and non-emergency response times and the introduction of two hour appointment slots for internal repairs.

Lynne Donnelly, chief executive of WSHA, said: “WSHA is fully committed to improving services and delivering a high-quality service to our tenants and factored owners. I am confident that this partnership will deliver excellent customer service to all our tenants and factored owners.”

Shona Dunsmore, head of operations (services) Scotland for Carillion, added: “The team at Carillion are very much looking forward to building a long lasting relationship with WSHA and their tenants. We look forward to continuing to delivering a first class service.”

First residents move into the Athletes’ Village

First residents 2

The award-winning Athletes’ Village in Dalmarnock, which was home to around 7,000 competitors and officials during the Glasgow 2014 Commonwealth Games has welcomed its first new residents.

Councillor Gordon Matheson, leader of Glasgow City Council, was joined by first minister Nicola Sturgeon, Ed Monaghan of the City Legacy consortium, Gordon Sloan, chair, Glasgow Housing AssociationCharlie Turner, chief executive, Thenue Housing Association and Carron Garmory, chief executive, West of Scotland Housing Association to greet the first residents on Friday.

Councillor Gordon Matheson said: “This is a special day for Glasgow, as we mark the first residents of the Athletes’ Village. The Athletes’ Village will always have a special place in the hearts of Glaswegians when we think back to the fantastic Commonwealth Games, but today we look to the future and an exciting new neighbourhood for Glasgow.

“The build quality of these homes is the highest in a housing development in Glasgow, raising the bar in what can be expected in the city and beyond. The city council has received a great deal of praise for the imaginative planning of this development, and I look forward to everyone living here enjoying the success of this new community in the years to come.”

First minister Nicola Sturgeon said: “This award-winning new housing development provided a fantastic home for the sporting stars in Glasgow last summer and I am delighted to be able to meet some of the new residents who will be making their new home in this community. The transformation and regeneration of Dalmarnock is an important part of the lasting legacy of the Games. With the Athletes’ Village, the new community hub, the Cuningar Loop woodland, the sporting venues, businesses, jobs and investment, the East End can continue to thrive.”

After a retrofit that began shortly after the Games, the Athletes’ Village has now become a desirable new residential community with 300 private homes, 400 homes for social rent and a new 120-bed care home for the elderly on the 38.5 hectare site.

By end of this week, over 100 of these homes will be occupied, with residents moving into the rest by the end of summer 2015.  Of the socially rented homes, 200 will be for Thenue Housing Association, 102 for West of Scotland Housing Association and 98 for Glasgow Housing Association. The sale of the private homes has been phenomenally successful, with over 250 sold already.

The proposal for the Village has high design and environmental standards – the highest in Scotland for a development of this size – and during the construction phase, a massive 98 per cent reduction in carbon emissions was achieved.

In addition, a Combined Heat and Power system developed by Glasgow City Council and built by City Legacy will deliver a 40 per cent reduction in carbon emissions at this world-class eco-village.  Solar and photovoltaic panels will provide reduced energy bills – dependant on usage – and export any surplus to the grid.

The construction of the Athletes’ Village saw a peak workforce of 620, with 84 apprentices, 61 other new entrant posts and 139 work placements from City Legacy.

Ed Monaghan of the City Legacy consortium, said: “Today is a significant milestone for everyone who has been involved in the design, construction and the delivery of The Village.  The exceptional build quality, the excellent standards of energy efficiency and the unparalleled sustainable nature of the development have been recognised the world over.  It’s a tremendous achievement for City Legacy and a fantastic legacy for Glasgow as we officially welcome our residents into their vibrant new east end community.”

Glasgow City Council will build a primary school and nursery school on two sites within and beside the Athletes’ Village.

The removal of temporary facilities around the Athletes’ Village after the Games has released additional land with the potential for further residential development.  City Legacy has submitted an application for a further 200 homes – immediately to the south-west of the site – and the development of future phases is being considered.

The residential properties achieved an Excellent rating in an EcoHomes Assessment, as did the care home in a BREEAM assessment.  The Athletes’ Village is Housing for Varying Needs compliant and has been awarded Secure by Design accreditation.

The Athletes’ Village has won 20 awards so far, including Best Sustainable Development at the Scottish Business Awards, winner in theLarge Scale Housing Development category at the Scottish Saltire Design Awards, and the Regeneration winner at the Scottish Design Awards.

The Athletes’ Village is very close to both the Emirates Arena and the Clyde Gateway route – linking the M74 to the heart of Glasgow’s East End – which are also very visible examples of the legacy of the Commonwealth Games.

Immediately across the River Clyde from the Athletes’ Village is the Cuningar Loop Woodland Park, a new 15 hectare site with 15,000 trees, due to open in the next few months.  The park will be connected to the Athletes’ Village by a bridge later in 2015.

Between the Athletes’ Village and the Emirates Arena is the Dalmarnock Legacy Hub – a centre for the local community featuring a GP surgery, children’s nursery, chemist and shop – which is also due to open over the next few months.

Construction on the Athletes’ Village began in June 2011.