Construction News Read UK Construction Industry News, Analysis, Opinion and data The year got off to a bumpy start with a major contractor going under in January. But there was better news for those eyeing up nuclear builds. Here are the stories that Construction News readers flocked to read in 2022.
10. Boost for Rolls-Royce’s Snowdonia nuclear plans
In mid-October, Rolls-Royce’s plans for a nuclear reactor in Snowdonia moved a step closer to becoming reality. The Nuclear Decommissioning Authority agreed a memorandum of understanding with Welsh Government development vehicle Cwmni Egino to support the proposed project in Trawsfynydd. Rolls-Royce had previously said that the site in North Wales – currently home to a Magnox plant that closed in the 1990s – was a candidate to host the first of its planned small nuclear reactors.
9. Timber and steel prices fall for fourth month running
Timber and steel were among the key construction materials to drop in price in January. The cost of imported sawn or planed wood fell by 9.3 per cent in comparison to December 2021, marking four consecutive months of price drops. Steel prices also continued to fall, again for the fourth month running. It didn’t last, though, with steel prices shooting up again after the Russian invasion of Ukraine.
8. Firm that expanded rapidly owed £12m at time of collapse
A contractor that suffered from a “lack of experience and knowledge” when it expanded rapidly into new markets owed £12m when it went under. Blackpool-headquartered Create Construction went into administration in October 2021. It had turned over £93m in the year to 28 February 2020, a time in which its revenue grew by a third. CN reported in January that an administrator’s report by RSM Restructuring Advisory said that the “management’s lack of experience and knowledge of subcontractor expertise in the national sector led to the company paying a premium price for subcontractor services, which in turn caused the company’s profit margin to fall”.
7. Crystal Palace amends stadium upgrade plans after fire advice
In September, Crystal Palace Football Club made changes to its £100m stadium redevelopment plan, prompted by conversations with a fire engineer. The Premier League team gained planning permission in 2018 to revamp its main stand, which would add 8,000 seats to Selhurst Park stadium in south London. It has since put forward a revised proposal, which includes the addition of an extra evacuation lift to the stand, after the club received advice from a fire engineer.
6. Network Rail chiefs dominate top public pay packets
Senior staff at Network Rail dominated the ranking of highest-paid public sector jobs, an analysis of pay packets revealed in January. Ten of the 15 highest-paid public servants worked for Network Rail. HS2 chief executive Mark Thurston (pictured, front) took home the largest pay packet, at between £620,000 and £624,999 per year. Nine of the top 10 highest salaries fell under the responsibility of the Department for Transport, with David Peattie, group chief executive of the Nuclear Decommissioning Authority, being the other one.
5. Fears grow as £83m-turnover contractor halts onsite work
PDR Construction, of Hessle, near Hull, in East Yorkshire, stopped work on several sites across the country, prompting fears that it had ceased trading. It was later revealed that the firm went into administration after a winding-up petition was lodged. One subcontractor from a closed site said at the time: “It [PDR] was on the job up to Christmas but we haven’t seen it since.”
4. Workers walk off Multiplex's £900m One Nine Elms job
Contractors started leaving the £900m One Nine Elms site in London as Multiplex chased the developer for payment. One worker who was leaving the site in January told CN: “The builders will all be gone by Friday. We are heading off now. It could be up to three months, they said, but who knows.” Chinese developer R&F later agreed a £772m funding package in June, enabling the full workforce to return for the first time. The work is due to be completed in November 2023.
3. Crossrail: high-risk security breach as first ‘customer’ rides train
The operator of Crossrail trains declared a “high-risk security breach” after a member of the public was able to ride a service across London, despite ongoing testing and construction work on the then-unopened line. The man was able to walk onto the Elizabeth line platforms at Abbey Wood and ride through stations that were still undergoing trials. His journey to Paddington took him about 29 minutes – half the time it would have taken via existing transport routes.
2. Jehu collapses with loss of 104 jobs
In October, Jehu Group ceased trading after 87 years in business, with 104 staff made redundant. Headquartered in Bridgend, Wales, Jehu specialised in construction and development projects for registered social landlords and councils in Wales and the South West of England. According to a statement from insolvency specialist Begbies Traynor, Jehu Group had 17 live contracts worth a combined value of more than £100m. The administrator cited “the crushing impact of the current inflationary environment”.
1. Midas files administration notice
The most-read story of the year was Midas Group going into administration in January. Midas worked primarily in the commercial sector, and also delivered jobs in the residential and education markets, with much of its work in the South West. The £290m-turnover company said its projects had been affected by the pandemic, Brexit, and labour and material inflation and shortages. In its last published accounts, the firm reported a £2m pre-tax loss on revenue of £291.3m, making it the largest contractor to go bust in 2022.
