CONSTRUCTION - A NEW ERA FOR CONSTRUCTION - THE OFFICIAL MAGAZINE OF THE CONSTRUCTION INDUSTRY FEDERATION
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CONSTRUCTION
THE OFFICIAL MAGAZINE OF THE CONSTRUCTION INDUSTRY FEDERATION
NOVEMBER 2017
A NEW ERA FOR
CONSTRUCTION
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EDITORIAL
T
hroughout this year Construction has reported for swift action to make these plans operational if the
on what industry experts and those from further opportunity is to be seized.
afield see as the essential elements required for the In this issue of Construction, our cover story looks back
construction sector to meet the needs of the Irish at CIF Conference 2017, with its theme of ‘Realising the
economy in a sustainable way, and in doing so break Construction Industry’s Potential to Build Ireland’s Future
the sector’s boom-bust cycles of the past. ‘and asks how will the construction industry meet the needs
At this year’s CIF Annual Conference, An Taoiseach Leo of the country in the years ahead. Minister for Finance
Varadkar TD endorsed the establishment of a Construction and Public Expenditure and Reform Paschal Donohoe TD
Sector Group which will bring together Government speaks exclusively to Construction on what his first Budget
Departments, State Agencies and industry to plan for will mean for the Construction Industry and the Irish
future development in the country. This is one of those vital economy. We also bring you in-depth Budget 2018 analysis
elements. from CIF experts.
Finance Minister Paschal Donohoe’s first Budget Construction Safety Week 2017 has been the most
in which he looked to address housing successful to date, with a record number of
shortages and finance for builders, as well contractors and workers participating. We
as set infrastructure development on a solid bring you some of the highlights of the week.
An Taoiseach Leo
footing, is another essential element. We also talk to Cleary Doyle MD Brian Byrne,
Varadkar TD and Minister
The much-anticipated publication of who recently completed 11 years as Chair of
for Housing, Planning & Ireland 2040 Our Plan the National Planning the South East Branch.
Local Government Eoghan Framework in December should further Elsewhere in this issue, we bring you all the
Murphy TD at the CIF galvanise the industry, but will certainly give latest CIF News, Events and Industry Analysis
Conference 2017. a clearer picture of Government development as well as Industry News. C
plans in the years ahead.
While it is great to see all these elements Robbie Cousins
coming together, there is an urgent need Editor
Foundation Media Ltd,
YOUR CONSTRUCTION INDUSTRY FEDERATION TEAM - WWW.CIF.IE
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November 2017 CONSTRUCTION 01
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REALISING THE
CONSTRUCTION
14 22
INDUSTRY’S
POTENTIAL TO BUILD
IRELAND’S FUTURE 33
CONTENTS
CONSTRUCTION
NOVEMBER 2017
5 CIF NEWS 47 CIS UPDATE – PROJECTS IN THE 58 CECA ANNUAL DINNER
The latest news and views from CIF PIPELINE FOR 2018 CECA President Renews Call For Long
Term Infrastructure Plan
COVER STORY 48 BUDGET 2018 – KEY MEASURES
14 REALISING THE CONSTRUCTION CIF Economic & Policy Research 62 INAUGURAL JOINT M&ECA AND
INDUSTRY’S POTENTIAL TO BUILD Executive Jeanette Mair outlines what ACEI CONFERENCE
IRELAND’S FUTURE Budget 2018 measures mean for the
What the future roadmap for the Irish Construction sector 64 JONES ENGINEERING WINS ALL
construction sector should look like IRELAND SUPREME SAFETY AWARD
52 GOVERNMENT SHOULD ADDRESS 2017
18 NPF WILL UNDERPIN FUTURE THE REGIONAL JOB ISSUE ONCE AND
BALANCED REGIONAL GROWTH FOR ALL 66 GREAT WESTERN MOTORWAY
Minister for Finance and Public Expenditure and Cleary Doyle MD Brian Byrne calls for CYCLE MARKS OPENING OF M17/
Reform Paschal Donohoe TD talks exclusively a focus on more balanced regional M18 TUAM TO GORT MOTORWAY
to Construction about Budget 2018 and development before it is too late
Government plans overhaul Ireland’s spatial INDUSTRY NEWS
plans CORPORATE PARTNER FOCUS 67 NEWS OF DEVELOPMENTS FROM
53 FEXCO FUND PROVIDING €70M THE WIDER INDUSTRY
PROJECT FEATURE IN FINANCE FOR CIF SME MEMBERS
22 WINTHROP – CENTRAL BANK M&E FIT 71 DATES FOR YOUR DIARY
OUT SAFETY FEATURE Don’t miss a thing
56 HEALTH & SAFETY: A SUB-
CATEGORY FOCUS CONTRACTOR’S PERSPECTIVE 72 TRAINING
25 WE NEED A CAPITAL PROGRAMME A look at the CIF training schedule
WITH CLEAR PROJECT TIMELINES EVENTS
67
Leading Civil Engineering figures outline solutions 57 IHBA WORKSHOPS ADDRESS
to addressing Ireland’s infrastructure deficit HOUSING SECTOR CONCERNS
SPECIAL REPORT
33 CONSTRUCTION SAFETY WEEK 2017
Highlights from the most successful Construction
Safety Week campaign to date
58
INDUSTRY ANALYSIS
43 PENSIONS
Susan O’Mara looks at private pension coverage
in Ireland
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CIF NEWS
Smart investment now can
bring forward a pipeline
of work for sector
A message from CIF Director General, Tom Parlon
A
s we enter the final weeks of difficulty in accessing finance to fuel
2017, the scale of what has been viable construction projects. We have
achieved by our industry this year consistently made the case that the
is coming into focus. We’ll have housing and infrastructure gaps cannot
added 12,000 new employees into be addressed if companies cannot
the industry, and the value of construction secure finance. Our survey and ongoing
output generated in 2017 will reach €18bn engagement were instrumental in
(7.4% of GNP). This is a solid performance, securing €750m in funding in the budget
but the headline figures mask underlying under the new agency Homebuilding
challenges that our industry faces in 2018. Finance Ireland. I was also very pleased
Travel down the motorway out of to see that Government listened to our
Dublin, and you will pass thousands of industry’s concerns and maintained the
construction employees going in the other Help to Buy scheme.
direction to work. Outside the Greater All eyes were on the future of our
Dublin Area (GDA), you won’t see cranes CIF Director General industry at the CIF Annual Conference
holding up the skyline or sites being Tom Parlon on 12 October in Croke Park, where we
prepared for essential housing. In 2018, welcomed an Taoiseach Leo Varadkar
the CIF will continue to highlight that the TD and Minister Eoghan Murphy TD
gap inherent in our two-tier economy is minimal disruption on sites around amongst a number of very impressive
widening. Ireland while making the case for sensible international and national speakers and
As we predicted in 2016, the recovery and sustainable rates and conditions in thought-leaders on the issue.
will not occur outside Dublin by itself; the the industry. An Taoiseach Leo Varadkar’s
Government must intervene strongly and October was a very busy month for endorsement of a new Construction
immediately. With an election likely next CIF with the Budget, the CIF Annual Sector Group involving industry and a
year, we will be pushing Government to Conference and Construction Safety number of key Government Departments
deliver more activity outside the Dublin Week. in his address was a very welcome and
area by bringing forward investment for In the budget, the Government important step, not only for our industry,
preparatory work in civil engineering took some significant steps towards but for our country.
projects, increasing the amount of finance increasing investment in infrastructure Finally, I would like to say a very
available to construction companies and announced a 17% increase in public heartfelt thank you, congratulations and
outside the GDA and by ensuring public capital expenditure. The CIF is currently well done to every member company
sector contracts are fairer. making the case that staving off this that took part in Construction Safety
This year saw the Government accept investment until 2019 is damaging. Smart Week 2017, which ran from 23 – 27
the Labour Court’s recommendation for a investment now in preparatory work can October. This year companies of all sizes
sectoral employment order. Overnight, its bring forward delivery dates for major and sectors put in a huge effort to help
introduction has seen a minimum of 10% infrastructure projects and provide a us drive home the health and safety
increase in wages across the board with the pipeline of work for our Civil Engineering message.
introduction of new rates. The Government sector. Thank you, the member, for all your
made the call, which these increases, The CIF and RSM accountants support throughout the year. I look
(above and beyond those requested by the recently identified a market failure in the forward to working with you throughout
CIF) to introduce the SEO immediately for availability of finance for construction 2018. C
the sake of industrial peace. However, the companies, showing that 63% of
CIF will in 2018 continue to work to ensure construction companies reported Tom Parlon
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CIF news
SMART INVESTMENT CAN BRING
FORWARD DELIVERY DATES FOR
MAJOR INFRASTRUCTURE
C
IF has welcomed is very welcome is the
the Budget 2018 announcement of the
announcement of €750m fund to assist
increased investment in housebuilding.
infrastructure at a critical time “We welcome the
for the Irish economy saying increased commitment to
that measures announced social housing, both from
would address the systemic a social and an industry
weaknesses in infrastructure point of view,” says
investment. Dominic. “It’s important
“The Government has that Government looks
taken significant steps towards at the procurement
insulating the economy from policy around these
external shocks with the announcements. While
announcement of a 17% the industry is doing well
increase of €790m in public overall, activity outside
capital,” commented Tom the main urban centres
Parlon, Director General, is still too slow. We would
CIF. “This measure will like contractors in the
also support other housing regions to be able to
measures announced in tender for these projects.
Budget 2018. If they use PPPs or bundle
“Recent commitments the projects, that would
to increase investment exclude our smaller
in infrastructure are regional members.”
to be welcomed. The The CIF welcomed the
Minister recognises that Government’s amendment
Ireland, currently last in Dominic Doheny, to the Seven-Year Capital
terms of GDP invested in President, CIF Gains Tax Exemption,
infrastructure at EU level, as it encouraged the
must invest. Translating these retention of property with
announcements into action no incentive to develop
on the ground is always challenging Housing land purchased during the relevant
for Governments faced with balancing Dominic Doheny, President, CIF, period. But it is concerned about
the budget. Recent increases are to welcomed housing measures the significant impact of stamp duty
be delayed until 2019, but staving off announced in the budget but has a increases from 2% to 6% on the cost
this sort of investment until 2019 will number of concerns. of commercial property. CIF believes
unnecessarily delay the economic and “Budget 2018 was a fairly significant this might have a dampening effect
social benefits of infrastructure delivery. endorsement of the Help to Buy on investment in the coming years at
Smart investment now in preparatory scheme that it wasn’t discontinued. a time when Ireland is competing for
work can bring forward delivery dates for This was a big concern for our FDI and facing Brexit.
major infrastructure projects.” housebuilder members. The scheme
is inextricably linked to activity. When Employment
Budget Analysis we surveyed IHBA members, every CIF was disappointed at the
DKM Consultants’ estimates and CIF one of them gave examples of how it Government’s refusal to reintroduce
analysis of the amount of additional increased activity. eligibility to partial rebate for
funding shows that what is available “We have major concerns about statutory redundancy payments for
could be absorbed by just one critical costs, and it was a disappointment that construction employers. This measure
strategic project. In addition, CIF analysis we weren’t successful in our efforts to would encourage employers to invest
found an increasing proportion of the persuade the Minister to reduce VAT more in staff in what is a traditionally
Public Capital Programme is spent on on the industry. Construction costs transient workforce. This is a critical
maintenance of significantly depreciated where VAT can’t be reclaimed, eg, measure in construction where the
stock, and 40% of the capital is not housing, are just too expensive for the labour force is fragmented with labour
being spent on productive or social consumer.” agencies representing most of direct
infrastructure. “One area of positive action, which employment. C
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CIF NEWS
TAOISEACH CONFIRMS M20 TO MOVE
TO PLANNING AND DESIGN STAGE
A
n Taoiseach Leo Varadkar has con rmed [announced in Budget 2018] for roads allows us
that funding will be provided for advanced to power ahead with the Dunkettle Interchange
planning and design of the M20 Cork/ proceeding to construction as soon as possible. And
Limerick Motorway, Dunkettle Interchange and also, to bring forward the M22 and the Ballyvourney
M22, Ballyvourney to Macroom Road. to Macroom Road, allowing it to go to tender next
The Taoiseach made the announcement at year, with construction the year after.”
a breakfast brie ng, which was hosted by Cork The news was warmly greeted by all involved in
Chamber in Páirc Uí Chaoimh, Cork. the construction industry in the Munster Region.
“Budget 2018 provided for major extra “Last year, CIF contributed to a report by
capital investment over the next four years, Cork and Limerick Chambers on the economic
including €2.4bn for motorways and national importance of M20 motorway to the region,”
road networks,” he stated. commented Conor O’Connell, CIF Regional
The Taoiseach said that with the opening in Director, Southern Region. “The M20 motorway
Conor O’Connell, CIF
October of the Gort-Tuam motorway, linking will be a vital link in the creation of an Atlantic
Regional Director,
Galway Shannon and Limerick, “the next step Economic Corridor, which will enhance the growing
Southern Region
is to build the next section of that corridor, the complementary counterbalance to the Dublin
road from Limerick and Galway to Cork via the Region between Cork and Limerick Cities.
M20.” The project itself will see many more opportunities for
“In terms of other projects, the additional money construction and development in the region.” C
IVAN WEBB SCHOLARSHIP AWARDED TO
THREE DIT CONSTRUCTION STUDIES STUDENTS
T
he Ivan Webb Scholarship 2017 has been awarded
to three students from the Dublin Institute of
Technology, Bolton Street.
Sionainn McLaughlin, received the First Year Full
Time Scholarship Award; David Quinn took home
the Second Year Full Time Scholarship Award and
Catherine Rogers was awarded the Back to Education
Scholarship Award. The Scholarships were presented
at the recent Annual Master Builders’ & Contractors’
Association (MBCA)Dinner. L to r: Dominic Doheny, President, CIF; Sionainn
The Ivan Webb Scholarship Foundation was McLaughlin, First Year Full Time Scholarship Award
established by the Master Builders’ Association (MBA) winner; Catherine Rogers, Back to Education Scholarship
and the CIF to commemorate the memory of the late Award winner and Seamus Duggan, President, MBCA.
Ivan Webb, one of the Irish businessmen killed in the
Staines Air Disaster in 1972.
Ivan Webb was a Council member of both the David Quinn
funding organisations, was President of the MBA in receives the
1953 and President of the CIF in 1956. Second Year Full
A number of years ago the MBA combined with Time Scholarship
other CIF building contractor associations to form Award from
the MBCA, and it continues to support the Ivan Webb Seamus Duggan,
Scholarship. President, MBCA
The Scholarship is awarded to students of the
Construction Technology Diploma course and the
Bachelor of Science in Construction Management
course, who are nominated by the Dublin Institute of
Technology, Bolton Street. The “Back to Education”
award wass also being presented for the third year. C
November 2017 CONSTRUCTION 09
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CIF news
RSM SURVEY REVEALS 63% OF
BUILDERS REPORTED DIFFICULTY
ACCESSING FINANCE IN THE PAST YEAR
A new survey shows the extent of difficulty that construction companies face
in accessing funds to deliver viable housing and infrastructure projects.
A
survey by accountancy firm RSM and CIF, Fund (ISIF) will be made available for
completed by Accuracy Research, has found commercial investment in housing
that construction companies continue to finance. This fund will be administered
face significant difficulties in accessing funding by the newly established House Building
to invest in their businesses and to deliver viable Finance Ireland (HBFI).
housing and infrastructure projects. “At this point, while there are no
Of those surveyed, only 33% involved in house specific details available as to how the
building obtained bank finance. Sixty-three monies from this fund will be released
per cent who sought to borrow from financial to construction companies,” says Paddy
institutions in the past year reported difficulty in O Connell. “I would expect that the fund
securing finance. The figure rose to nearly 70% will provide development finance loan
amongst companies with a turnover of less than funding to meet the development costs
€9m. of building homes for both sale or rent,
This has led to an increasingly low level of as well as infrastructure funding for
engagement with financial institutions. Only 41% site preparation and the infrastructure
of those surveyed reporting as having requested needed to enable housing to progress
finance from financial institutions in the past year. and to prepare land for development.
The majority of companies are resorting to funding “As matters stand contractors are
investment via cash reserves to deliver viable struggling to secure adequate finance at
construction projects, the survey reveals, which in Paddy O’Connell, RSM competitive rates, which is negatively
turn is limiting companies with growth ambitions Construction Director impacting on construction companies’
and stalling increased activity in the sector. abilities to expand, recruit new staff and
undertake projects,” Paddy continues.
Regional Disparity the vision of the upcoming National Planning “The difficulties in securing finance are
The survey also highlights a regional disparity, Framework. limiting much-needed capacity in the
with respondents reporting that projects outside of “This survey shows that Government, sector, which is required to address the
Dublin are also being considered less favourably. industry and financial institutions must supply issues.
“This report should ring warning bells for work more closely together to ensure finance “HBFI will have to demonstrate
Government because it clearly shows that is available for sustainable construction an efficiency in decision-making and
construction SMEs across all sub-sectors in the projects.” processing of funding applications to
industry are still reporting difficulties in securing ensure funds are deployed appropriately
funding for viable projects,” says Tom Parlon, Cash Reserves Funding Businesses and quickly.”
Director General, CIF. “The implications for Irish Paddy O’Connell, RSM Construction Paddy O’Connell adds that
society are worrying as these companies need to be Director, believes the survey shows that most Government should be making
supported to be in a position to address Ireland’s companies are having to rely on cash reserves resources, which are available in
housing and infrastructure crises. to fund their business on an ongoing basis. other industry sectors, accessible to
“The availability of finance now dictates what “This is generally not considered a contractors to help them upskill staff to
type of construction occurs. Where finance is sustainable model for a growth industry,” achieve greater efficiencies.
available, in sectors such as commercial, student he says. “This over-reliance on reserves, “There are a number of Government
accommodation or in the Greater Dublin Area, combined with the lack of alternative funding grants available – not traditionally
construction is occurring. The private sector hasn’t sources and difficulty securing finance focused on the Construction sector –
failed. Where it can access finance, it is delivering. within the banking system highlights an that could be redirected to encourage
But there is a market failure in the availability of industry that has yet to emerge fully from the upskilling and promote innovation in
finance for viable construction projects. recession.” building technologies. Such grants could
“The apparent aversion amongst financial be targeted at SME’s and designed to
institutions for investment outside Dublin is New House Building Fund encourage innovation, both in the kind
also of concern. This will disadvantage regional As part of the Budget 2018 measures, up to of homes that are built and in the way
construction companies and their capacity to fulfil €750m of the Ireland Strategic Investment that they are delivered.” C
November 2017 CONSTRUCTION 11
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DALATA HOTEL GROUP JOIN
THE CIF AFFINITY SCHEME
C
IF is delighted to welcome
the Dalata Hotel Group to
the CIF Affinity Scheme.
Dalata is Ireland’s largest hotel
operator, with a current portfolio
of 38 hotels (owned, leased and
managed). They operate the
Maldron Hotel and Clayton Hotel
brands throughout Ireland and
the UK, as well as managing a
portfolio of Partner Hotels.
Dalata Group is offering CIF
members a 10% discount on
their existing best available B&B
rate across their wide range of
hotels in UK & Ireland. To avail L to r: Justin Molloy Regional Director,
of the offer Lo-call: 1850 885 CIF Western/Midland Regions; Michelle
885 or +353 (0)57 869 5946 and Meehan, Business Development Executive,
quote “CIF” to a member of their Dalata Hotel Group and Tom Parlon,
Central Reservations Team. C Director General CIF.
NEW MEMBERS
The Construction Industry Federation welcomes the following new members who, having met
all the necessary criteria, have been approved for membership by the CIF Executive Body.
McCrory Access Ireland Sean Hickey Construction Ltd Paddy O’Meara
Silverwood Industrial Estate Coom Lower Construction Ltd
Lurgan Gneeveguilla Woodlands
Co Armagh Rathmore, Toomevara
Co Kerry Nenagh
Aereco Ltd Co Tipperary
Unit 1 Cherrywood Business DG Construction
Park Firmount House Surecom Network
Courtstown Clane Solutions
Little Island Co Kildare Bothair Beri
Cork Kilcoran
Carrig Elm Construction Ltd Cahir
Priority Build Ltd Corcomore Co Tipperary
120 Carrigwood Clarina
Firhouse Co Limerick
Dublin 24 RMIS Engineering Ltd
CME Electrical Engingeering Ltd Unit 2
NYD Ltd (Nineyard Design Ltd) Magherarney Moate Road
Unit 107C Bann Road Smithborough Kilbeggan
Dublin Industrial Estate Co. Monaghan Co Westmeath C
Glasnevin
Dublin 11
November 2017 CONSTRUCTION 13
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REALISING THE CONSTRUCTION
INDUSTRY’S POTENTIAL TO
BUILD IRELAND’S FUTURE
Carol Tallon attended the CIF Conference in Croke Park in October. She heard a
number of international and national speakers set out their views and gave some
key insights into the future of the construction industry.
a long-term, strategic and shared vision of
Ireland’s future.
“By rationalising policy-making in this way,
we can break the boom-bust cycle associated
with the construction industry and put in place
a series of measures to manage the volatility
of the sector,” explained the CIF Director
General.
“If we can grow sustainable businesses that
can scale and export where appropriate, or
operate in a positive domestic economy, then
we can stop the huge ups and downs, not only
within the sector but across the wider economy
to the property market and employment.
When construction does well, the rest of the
economy does well. We need to learn from
the mistakes of past cycles so that we are not
doomed to repeat them.”
“It’s our vision that the Construction Sector
Group will be tasked with developing and
implementing a whole of construction strategy.
This will deliver on Ireland’s housing and
infrastructure needs, as well as grow output,
employment and exports in construction, and
ultimately, end the harmful volatility in our
economic cycle in the past.”
An Taoiseach Leo Varadkar
TD addresses the CIF The whole of Construction
Annual Conference. Strategy: Smart, Sustainable
Growth
A
The global construction market is forecast to
t the very outset of the CIF’s Doheny welcomed the Taoiseach’s grow by 85% to almost €13.5tn by 2030. This
National Conference, it was announcement of the Construction Sector represents a huge opportunity for the industry
clear that both the industry and Group saying “the construction sector will and Ireland inc if the right measures can be
Government were looking at fresh build a republic of opportunity and will taken by Government and industry.
approaches to addressing Ireland’s work with Government to break the boom- With average construction growth expected
economic and social challenges. bust cycle associated with the industry”. to exceed global GDP, strong performance will
An Taoiseach Leo Varadkar TD signalled be driven by developed countries like Ireland,
the establishment of a Construction Construction Sector Group: A which are recovering from economic instability
Sector Group as part of a new ‘whole of new era for the industry and a prolonged period of under-activity,
construction’ strategy designed to bring Tom Parlon, Director General, CIF and by emerging countries that are poised for
the industry together with the various stated that one of the key objectives growth.
Government Departments in a more of the Construction Sector Group is For example; the number of mega-cities
cohesive way than seen before. for Government and industry to work (population over 10 million) is to increase
In his address, CIF President Dominic cooperatively and consistently towards significantly up to 2050. These mega-cities will
14 CONSTRUCTION November 2017
CONS_Nov17_Cover Story 2.indd 2 24/11/2017 15:56cover story
in the day, and that message is clear – you
cannot solve the housing crisis without first
tackling the infrastructure crisis.”
Constructing Ireland 2040:
Delivering the National Planning
Framework
Delivering infrastructure efficiently and
Dominic Doheny President,
sustainably will be a critical challenge
CIF; An Taoiseach Leo
for industry in the coming years. The
Varadkar TD and Tom Parlon,
Government will release a National
Director General, CIF.
Planning Framework aligned with the
public capital programme towards the end
Minister of 2017. The industry will be central in its
Dominic Doheny,
for Housing delivery, and this will shape Irish society
CIF President
Planning & Local and its economy over the next 25 years.
addresses the
Government In his address to the CIF Conference,
CIF Annual
Eoghan Murphy Minister for Housing Planning & Local
Conference.
TD addresses Government Eoghan Murphy TD outlined
the CIF Annual some of the finer details of the new National
Conference. Planning Framework ‘Ireland 2040: Our
Plan’, which is currently out for its final
round of public consultation.
The Framework predicts that Ireland’s
population will grow by 1 million people by
the year 2040. This presents a broad range
of challenges in terms of infrastructure and
housing provision, as well as ensuring that
this is all achieved in a balanced regional
plan that avoids further urban sprawl of
Dublin and our main regional cities.
be huge clusters of cities and urban centres in his address. “We’ve developed a world- The Construction Sector Group was
linked by advanced infrastructure systems. class M&E sector over the past decade in welcomed by the Minister as a vital element
Africa will have the 2nd fastest increase addition to our established reputation in in ensuring this is achieved. He described
of new mega-cities globally up to 2050. civil engineering. Our exports increased it is an important initiative that should get
The total number of individuals living in 500%, from half a billion to €2.5bn, since started as quickly as possible, “because we
Africa’s urban areas is expected to rise from the recession. It can be seen from our work have big challenges ahead – and we have to
400 million in 2010 to 1.26 billion in 2050. on specialist projects, like data centres, plan in a coordinated way for the future.
This represents an enormous opportunity that our construction expertise is now “If we continue to grow as we have been,
for Irish construction to grow exports and sought all over the world by multinational if the status quo maintains – depleting our
diversify their markets by bringing their corporations such as Facebook, Google communities and our regions, sprawling
globally recognised expertise to bear in and others. In the past, we emigrated. away from our urban cores – then our cities
the developing world. Establishing a brand Today and tomorrow, we will export.” will choke off, and the country will die.”
such as ‘Construction Ireland’ to promote Tom Parlon said that the Construction He said Ireland 2040 would be different
the industry overseas, similar to the Sector Group is critical to the delivery than anything that has gone before it
approach in the food industry, could drive of world-class infrastructure here in because “it’s going to be aligned across
sustainable growth in the industry. Ireland, “We have Europe’s fastest growing governmental departments, so there will
This was a concept suggested by population and its fastest growing be coherence between what the framework
CIF President Doheny in his keynote economy for the past five years, yet we envisions and what others are planning, be
address at the conference. In his view, the have the lowest level of GDP investment in it in relation to schools, hospitals or roads.
Construction Ireland brand would allow infrastructure, and that follows a decade of
large and small construction companies to under-investment. Irish construction must
collaborate to secure niches in this rapidly “We’re facing an infrastructure crisis ‘Modernise or Die’
expanding global market. Closer to home, every bit as bad as the housing crisis One of the most anticipated speakers at
this approach could also drive exports that we are now going through. We have the CIF Conference was Mark Farmer,
of products and services to our closest been voicing members’ concerns over CEO of Cast Consultancy and author
partner, the UK, particularly in any post- this particular issue for the past number of the controversial review of the UK’s
Brexit scenario. of years, and there are strong signs that construction labour model ‘Modernise or
The innovative nature of Irish Minister Donohoe and his department Die’.
contractors and the early adoption of now understand the enormity of the Mark Farmer set out the case for change
emerging technologies has certainly challenge we are facing. He is releasing a and went so far as to describe where the
heightened the reputation and influence of 10-year capital plan in December. And, industry is now as a “burning platform for
Irish contractors globally. of course, we now have the National change”. He maintains that technology is
“We need to build on this burgeoning Planning Framework, so we know that our the bridge that must be crossed in order to
global reputation,” Dominic Doheny said message is getting through, albeit very late take the industry out of the past and into
November 2017 CONSTRUCTION 15
CONS_Nov17_Cover Story 2.indd 3 24/11/2017 15:57cover story
the future. He talked about systemic issues
that are seen in most construction markets
in the world like workforce size and the
ageing demographic.
“We operate in a highly dynamic but
volatile environment, particularly in terms
of economic cycles and we have shaped
ourselves, as an industry, in response
to these symptoms of failure. We have
shaped ourselves to be flexible and to be
able to ride the wave of boom-bust, which
is unfortunately what the industry has
historically suffered from, but I believe
that this is going to be much more difficult
going forward. Mark Farmer, CEO,
This makes where we are now a burning Cast Consultancy.
platform for change. In the past, the
industry has resisted opportunities and
potential for change by surviving each
Panel discussion
crisis and then reverting to type, but this
hosted by Ian
is no longer an option for construction
Kehoe (Left), Editor,
businesses. We are truly at the point
Sunday Business
where we must modernise or die. The
Post at CIF Annual
industry itself will not die, we always need
Conference.
construction, but at an individual and
corporate level, there is a lot to be done
in terms of future-proofing our business
models for the health and sustainability of
individual businesses.”
Mark Farmer is pushing for a
productivity-led change agenda that can
help determine future needs, without
reverting to type. He advised, “We need
to move towards high-level manufactured
value, which is the ratio of what we do on
site and what we do off-site. It is not just
about modular construction. Modular is
simply one solution. It is about efficiency,
productivity and the interface between
what is manufactured, what is pre-
manufactured and what is installed onsite.”
Skills shortage and lack of
diversity Claire Penny, Global
One of the critical issues identified by the Industry Leader,
speakers and on the floor of the conference Watson IoT for
is the looming skills gap the industry is Buildings, IBM
facing. The CIF Director General, for
example, challenged the industry to up
its game in terms of competing for and “To meet this target, we need to promote coming decade regardless of the political
attracting talent. The current capacity of the industry as an attractive career changes. To insulate the market from this
the industry to capitalise on capitalise on destination. Improving diversity and and to achieve strategic permanence, we
global trends in the future and to even inclusion is a key challenge. For example, need the individual industry leaders to
meet Ireland’s needs today is severely just 8% of the industry is female, and step up. We need to use this opportunity
challenged by skills. other industries are overtaking us in terms to put in place permanent structures that
“Our members are competing for of female participation to the detriment allow sustainable growth in the industry,
top talent particularly in the face of of our productivity, performance and for example, the food industry’s ‘Food
digitisation,” said Tom Parlon. “We need reputation. I’m delighted to Women in Harvest 2020’ became ‘Food Wise 2025’.
to up our game, not just on-site but in Construction: #BuildingEquality initiatives It’s the third five-year strategy for the
management and across the C-suite. We already underway, but we have a long food industry and has survived four
know that 110,000 additional workers journey ahead.” Ministers at this stage and two changes
are required over the next three to four Tom Parlon concluded by saying, “This of Government. We need a similar
years to deliver all the infrastructure and is exactly the type of long-term challenge structure for construction Industry and
housing that Government has committed that the Construction Sector Group Constructing Ireland 2030 is the basis
to. will enable us to work through over the of that. C
16 CONSTRUCTION November 2017
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NPF WILL UNDERPIN
FUTURE BALANCED
REGIONAL GROWTH
Minister for Finance and Public Expenditure and Reform Paschal Donohoe TD speaks to
Robbie Cousins about Budget 2018, and Government plans to bring about a total overhaul
of Ireland’s spatial plans.
I
n his first Budget on 10 October last,
Finance Minister Paschal Donohoe
TD acknowledged the central role that
the construction sector has to play in
the future development of the Irish
economy. The Minister delivered a number
of measures that the sector broadly
welcomed. He also highlighted a number
of priorities that the Government sees as
needing to be addressed in the coming
years.
Infrastructure
Ireland has the fastest growing economy
in Europe, yet spends the least amount
on capital investment as a percentage
of GDP amongst all EU countries. The
Construction Industry would like if a
proportion of funding due as part of the
Capital Plan 2016-2021 was to be released
in 2018 for the design and planning
of future projects. This would give the
industry a roadmap of future opportunities
and facilitate getting projects to site
quicker.
Minister Donohoe says that
Government has allocated funding to start
addressing the infrastructure deficit.
“This Government has allocated a
significant, but more importantly a
well-planned, increase in public capital
investment amounting to €4.3bn over
the remaining four years of the Capital
Plan 2018-2021. This is in addition to the
€2.2bn for housing outlined in the Action
Plan for Housing and Homelessness,” the
Minister explains.
“Between 2015 and 2021 capital Minister for Finance and
expenditure will have doubled, reaching Public Expenditure and
€7.8bn. Capital expenditure will reach Reform Paschal Donohoe TD
3.5% of GNI by 2021 and will account
for over 11% of total voted expenditure.
18 CONSTRUCTION November 2017
CONS_Nov17_Cover Story 2.indd 5 24/11/2017 16:00cover story
also underpinned by a spatial vision based
on values such as creating a fairer society,
more sustainable choices and options, and
providing a better quality of life for our
citizens.”
The Minister explains that the national
population is projected to increase by 1
million people by 2040, and it is projected
that there will be 8 million people on the
island as a whole by then. “This means
that a ‘business as usual’ continuation of
urban sprawl trends and uncoordinated
development is not an option. The physical
and spatial development of Ireland has to
be much better,” he says.
“The finalisation of the Ireland 2040
framework alongside a new 10-year capital
Significant additional investment in local and plan and the development of Regional
regional roads address congestion Spatial and Economic Strategies (RSESs)
will bring about a total overhaul and
This will see public investment in Ireland of a new programme of infrastructure vertical alignment of Ireland’s spatial plans
moving from relatively low levels to among renewal for the higher education sector, – from the NPF, through the RSES and
the highest in the EU.” focused on large-scale refurbishment and/ down to Local Authority City and County
In line with the assessment of the Mid- or infrastructure replacement projects Development Plans.
Term Review of the capital plan, Minister which are essential to expand capacity, Minister Donohoe says this will enable
Donohoe says that the Government has address health and safety issues, and/or the delivery of balanced growth in which
identified a number of priorities for public improve quality in areas of key skills needs. “regional cities can function as realistic
capital investment. Under Health, the Minister explains alternatives to Dublin and act as growth
The Minister outlines that an additional that a further €471m he has allocated drivers for their regions, while at the same
€1.3bn will be invested in the Transport will assure the delivery of the National time allowing us to unlock opportunities
sector. “This investment will deliver major Children’s Hospital project and will allow for strategic renewal and enhancement
public transport infrastructure, such as the Government to address needs in other of run-down or under-utilised parts of
the new Bus Rapid Transit network for priority areas including Primary Care, Dublin as our capital city. Of course, any
Dublin and the extension of the Dart to Mental Health, Acute Services, Social Care. regional focus will also seek to boost the
Balbriggan. There will also be significant “Communications will receive an small towns and rural fabric of Ireland by
additional investment in local and regional additional €200m in order to expand supporting new economic opportunities
roads and projects to address congestion energy efficiency programmes, continue and reversing population decline.”
such as the M50 Variable Speed Limits to roll out the Renewable Heat Incentive
project. Scheme, increase uptake of electric vehicles Project Bundling
On the basis of the review of the Action and ensure the roll-out of the National The bundling of local projects, such as
Plan for Housing and Homelessness, Broadband Plan – following finalisation schools and courthouses, has been seen
Minister Donohoe says an additional of the procurement process – to ensure all by some as exacerbating the challenges
€500m has been allocated for the direct that citizens can access high speed services, local contractors face, as they are being
building of over 3,000 additional social regardless of where they live or work.” precluded from tendering for work that
houses by 2021. Minister Donohoe explains. they would have traditionally carried out.
“This increases the overall Rebuilding Minister Donohoe sees project bundling
Ireland ambition to be achieved through Regional Development as necessary, but he says local contractors
build, refurbishment, acquisition and One of the big challenges facing the can still tender for some projects.
leasing over the period 2016-2021 from Government in the coming years is “Bundling refers to the practice of
47,000 to 50,000 new homes. A further achieving more balanced regional tendering a number of individual projects
€75m in exchequer funds is being made development. Minister Donohoe says he as a single contract,” the Minister explains.
available under a second tranche of Local is fully aware of the issue and that the “As a result, smaller firms who may be
Infrastructure Housing Activation Fund Government is taking steps to address the capable of undertaking an individual
(to be matched by €25m from Local disparity. project are excluded from bidding on the
Authority contributions) with the potential He says a huge amount of work basis that they lack the capacity to deliver
to further stimulate the supply of mixed- has already been undertaken by the the multiple projects. We are not aware of a
tenure homes on private and State-owned Government in this regard, and they now systemic policy of bundling projects across
lands by at least 5,000-plus additional new have a draft of the National Planning the public capital programme. However,
homes in the coming years.” Framework (NPF) Ireland 2040. it may be undertaken for reasons of
Minister Donohoe points out that an “This plan represents a unique practicality and, where projects are located
additional €322m has been allocated to opportunity to set out an ambitious vision in close proximity, to ensure that Health
schools, which will deliver 350 planned and 20-year strategy for what our country and Safety matters are better co-ordinated.
large-scale projects. An additional €257m should and can look like in 2040, and “Many contracting authorities will
has been allocated for Higher Education, balanced regional development is a key bundle certain works to deliver economies
which will allow for the commencement part of that vision,” he comments. “It is of scale and to manage their own resources
November 2017 CONSTRUCTION 19
CONS_Nov17_Cover Story 2.indd 6 24/11/2017 16:03cover story
as efficiently as possible’” he continues. The issue is less about
“A single contract governing a range of a lack of investment and
similar-scaled projects in reasonably more about how we manage
close proximity makes sense from the investment to achieve
perspective of efficient project delivery. meaningful regional
However, there are natural limitations to development.”
this approach. An example of bundling
that many contracting authorities adopt
is emergency response maintenance. To
provide this service a contractor needs to
have a certain scale to react to multiple
call outs for leaks, boiler failures, electrical
outages, etc. Even though the individual
‘tasks’ are tiny, it is the capacity of the
contractor to respond within the tight
timeframes that is important.”
Minister Donohoe says that certain
safeguards are built into the legislation
governing procurement to ensure that
SMEs are given opportunities to compete
successfully for public contracts. Under the focus on the development of Ireland’s history and heritage, and we must protect
EU Directives, contracting authorities are regional cities. those even as we look to develop for the
encouraged to break larger projects into “My Department is preparing a ten-year future, while it is also essential that our
lots, so that SMEs are in a position to bid. capital plan, which will support the NPF.” plans reflect our ambitions around climate
Under national guidelines, the requirement Minister Donohoe explains. “This improved mitigation and support the National
to advertise contracts, which are in excess integration of capital investment and Mitigation Plan on Climate Change.”
of €25,000 for goods and general services spatial planning under the NPF will allow
and €50,000 for works and works-related us to deliver on our long-term, strategic Stamp Duty on Commercial
services, on eTenders, provides ample objectives for Ireland’s development Property
transparency to tendering opportunities. and will ensure that businesses and One measure in the Budget that raised
Below these thresholds contracting communities can plan ahead. concerns was the increase of Stamp Duty on
authorities may directly invite tenders Minister Donohoe ultimately believes commercial property from 2% to 6%. The
from a minimum of five contractors. that despite the fiscal constraints that Minister is adamant that this is the right
the Government must work under, “it decision for the country at this time.
National Planning Framework is an absolutely worthwhile process of “Based on analysis of projects in the
While a number of regional infrastructure putting in place a long-term strategic pipeline, CBRE and other commentators
projects are coming on stream in the next planning framework. But, it will require a are projecting continued strong levels of
18 months, a long-term capital plan would coordinated effort. completions in 2018 and 2019,” Minister
give the construction sector confidence “This requires complementary sectoral Donohoe explains. “There is an estimated
to put in place the required resources to vision across Government Departments, 400,000-sq m of office space under
deliver on such a plan. Minister Donohoe Agencies and Semi-States,” the Minister construction in Dublin alone. Once
says that the Government has made points out. “This has been very much completed, this will add approximately 10%
significant strides in prioritising projects reflected in the current draft of the NPF. to the stock of office space. This suggests
and that the National Planning Framework We also need to ensure public bodies work that the commercial real estate sector has
will help determine what gets built, and together to develop key sites and ensure significant supply already in the pipeline to
when it gets built in the next 10 years. our cities towns and villages can grow in a meet demand from companies relocating
“This is an area where the Government sustainable way and get our housing market from the UK.
has completed a significant amount of working effectively.” The Minister says that the availability of
work in identifying priorities for the The Minister says it is important to commercial property and office space is one
allocation of the substantial capital funding recognise that “we are not starting with consideration companies have in deciding
now available,” he explains. “Research a blank canvas – Ireland is an already to locate to Ireland.
has shown that all regions experienced developed country, with five main “Of equal concern in maintaining
significant increases in infrastructure cities, a developed network of transport competitiveness and attracting firms post-
expenditure over the period 1995-2009, infrastructure, businesses based in Brexit, Minister Donohoe comments, “as
with Dublin actually receiving less on a per particular locations and so on. All these well as more generally is the availability
capita basis. Hence, the issue is less about a pre-existing factors need to be taken into of housing. By helping to re-orient the
lack of investment and more about how we account. construction industry towards more
manage investment to achieve meaningful “Then, we need to be mindful that our residential building, it is hoped this
regional development.” plans are fiscally sustainable, which is why measure will help address this area of
The Minister sees the forthcoming it is so important that the 10-year National competitiveness.”
NPF as having a critical role to play Investment Plan is being coordinated with Asked whether he will revisit the
in influencing the pattern of future the NPF. This will ensure that we have the measure, Minister Donohoe concludes
investment in public infrastructure, and appropriate budgetary and investment by saying: “As is the case with all taxation
he says it will underpin future growth on a follow through around projects.” measures, this area will be monitored and
balanced regional basis, with a particular “Our built environment reflects our appropriate action taken, if necessary.” C
20 CONSTRUCTION November 2017
CONS_Nov17_Cover Story 2.indd 7 24/11/2017 16:03PROJECT FEATURE: WINTHROP – CENTRAL BANK
HIGH-SPEC M&E FIT OUT
FOR NEW CENTRAL BANK
During 2107, Winthrop completed a high-spec low-energy mechanical and electrical fit-
out of the new Central Bank premises on North Wall Quay, Dublin for main contractor Walls
Construction, a project that presented a number of challenges.
Central Bank offices,
North Wall Quay,
Dublin.
xxx
W
inthrop was engaged by Walls Challenges the consultant engineers O’Connor Sutton
Construction to deliver the One of the significant challenges with this Cronin (OCSC) and architects Henry J
Mechanical and Electrical project was to take the shell of the existing Lyons (HJL), Winthrop had input into the
services on the new eight- building and modify it to suit the bank’s implementation of the systems controlling
storey 30,000-sq m Central requirements, which was to deliver a building the building management system, façade
Bank of Ireland offices on North Wall of the highest quality, energy rating and management system, the CHP plant,
Quay, Dublin. Winthrop completed sustainability. The design criteria to achieve a basement smoke clearance system and the
the mechanical and electrical services BREEAM Excellent accreditation and a BER car park ventilation system.
installation for the Central Bank project, of A2 meant that the selection of top quality, Mechanically, a key design feature is
which went from shell to walk-in ready in efficient plant and materials was paramount. an energy saving mixed-mode ventilation
less than two years. Working closely and under the guidance of strategy, which, when external conditions
22 CONSTRUCTION November 2017
CONS_Nov17_ProjectFeature.indd 2 24/11/2017 16:08PROJECT FEATURE: WINTHROP – CENTRAL BANK
The majority of
the Central Bank’s
electrical plant is
located at roof level.
are acceptable, will allow the façade installed for BMS, lighting and protective The Central Bank moved staff into the
mounted louvres to open and let fresh air services. The entire building can be new building over a number of weeks and
enter the space. This, coupled with the controlled from either fixed points by the Winthrop was on hand to assist all the way
most highly efficient plant equipment and facilities management team, or by remote and ensure the move was a seamless as
latest heat recovery systems, ensures real connectivity for a 24/7 set up, which would possible for each staff member.
energy savings for the building. be expected in a modern building of this A total of 1,500 staff were moved in, and
stature. the feedback from them is nothing but
Building Energy Management The majority of lighting, totalling 10,000 positive in their new base, and Winthrop
System LED light fittings within the building, is is proud to have been a part of that
The BEMS (Building Energy Management controlled by automatic sensors that not positivity.
System) formed the principal part of only control on and off functions, but also Speaking about the how the project fits
the HVAC system’s control and energy light levels depending on the sunlight, as it with Winthrop’s recent portfolio of work,
monitoring for the building. The energy hits the building during the day. The system Managing Director Anne Dooley first
monitoring features include: is programmed with pre-sets to drop light acknowledges the quality of the design of
• Monitoring utility consumption levels at night as the building is mainly the project.
• Monitoring overall energy usage against vacated after a certain time. “The Central Bank project set a new
targets Winthrop provided a complete structured benchmark for innovative design and
• Energy reporting for Facilities cabling system for the end user, which efficiency, and massive compliments must
Management, Bank Principals and includes a fibre optic backbone and Cat 6A go to the design engineers and architects
Heads of Department network using the latest intelligent patch who designed this unique project.
• Energy target exceedance and alarms panels to put this building right at the “The Central Bank is a great example of
• Trend logging of environmental forefront in data installations. the type of project completed or currently
conditions on-site within the company at this time.
• Customisable dashboard for individual Phased Handovers “We recently completed the 21,000-sq
users Another major challenge on this project was m Miesian Plaza Project on Baggot Street
the phased handovers of critical areas, as the as well as Google’s European HQ and
Unusually, the majority of electrical client took possession of the building. Facebook’s European HQ, also in Dublin.
plant is located at roof level, with the To facilitate the crucial IT requirements We have also been appointed as Electrical
distribution structure feeding down of the client, all communications rooms Contractor on the Dublin Landings
through the building. This helped to were completed, commissioned and handed project, adjacent to the Central Bank.
maximise the usable space from the two over while major construction was still “Just across the river from the Central
lower basement levels up to the seventh- being carried out. Bank, we are currently carrying out the
floor offices with dramatic views of the city The BCAR requirement was also a crucial electrical fit-out of the 12,300-sq m 8
and bay. element of project delivery, with Dublin Hanover Quay project – The Reflector
Systems design by the Consultant City Council taking a keen interest in the building. These are the scale of project
Engineers OCSC and Architect HJL commissioning and certification of the that Winthrop has become accustomed to
were driven by the most energy efficient building, given its extremely high-profile completing in Dublin and further afield
principles with central control systems status. over the past number of years.” C
November 2017 CONSTRUCTION 23
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