WET News

NOVEMBER 2014 WET NEWS 3 B alfour Beatty, which reject- ed a £3B merger with Caril- lion this summer, has an- nounced a £75M pro t warning in its Construction Services UK (CSUK) activities. Trading across the rest of the group remains in line with expectations. The group has also announced the appointment of a new chief executive, Leo Quinn, following ve months of searching. Quinn, currently group chief executive at QinetiQ, and who will take up his new role from January 1, 2015, started his career in 1979 as a civil engineer – in Balfour's UK con- struction services business. However, executive chairman Steve Marshall step down from the board once the new CEO is in place and a new non-executive chairman has been identi ed. In a statement, the group said it has appointed KPMG to carry out a detailed independent review of the CSUK contract port- folio. The review will focus on commercial controls on 'cost to complete', and contract value forecasting and reporting at pro- ject level. KPMG will report back V eolia, Costain and MWH consortium 4Delivery (4D) has started construction on the £63M redevelopment of Southern Water's Woolston Wastewater Treatment Works at Southampton. The JV's rst task will be to construct a temporary works to treat the wastewater before sec- tions of the existing facility, which dates back to 1966, will be demolished. Once the temporary works is complete the construction of the Balfour blames UK construction services for £75M pro t warning œ Infrastructure group calls in KPMG to review the contract portfolio within the construction services activities. Work starts on Woolston WwTW upgrade new facility will begin and is esti- mated to be complete in 2019. The redevelopment scheme will: • Improve odour control at the site • Ensure the treated waste- water leaving the site meets new, higher environmental standards • Involve a complete redesign of the works so it ts in with the redevelopment of the area Estelle BrachlianoŸ , senior executive vice president at Veo- lia, said: "We're working closely with the consortium to ensure Southampton residents are receiving the most e¢ cient tech- nologies for their needs." From the innovative engineers at Ovivo comes a new and complete range of grit treatment systems – settling on standardization. New Designs New Technology Creating Value in Water +01 21 511 2400 OVIVOWATER.CO.UK COMING 2015 © 2014 GLV INC. ALL RIGHTS RESERVED. to the board by the end of 2014. The £75M pro t reduction is split across Construction Services UK as £30M within Engineering Services, £20M within large Lon- don area building projects, £15M within Regional construction, and £10M within Major Infra- structure Projects. The £20M write-down in Engi- neering Services relates mainly to problem contracts in London, where Balfour has continued to experience programme slippage, resource and skills shortages, poor operational delivery and cost in¥ ation pressures. The total number of problem contracts has increased to 25, from the 21 previ- ously disclosed. Balfour said it will continue to pursue contractual entitlements in relation to the problem con- tracts and to recover monies that it believes "are fairly due". Apart from Construction Ser- vices UK, current trading and full year expectations remain broadly in line with expectations. The US Construction order book contin- ues to grow, reinforcing the group's medium-term outlook for the business. The group's nan- cial position remains robust, tak- ing into account the expected disposal of Parsons BrinckerhoŸ and the inherent value within the Investments portfolio. Describing the trading state- ment as "extremely disappoint- ing", Marshall said: "There has been inconsistent operational delivery across some parts of the UK construction business and that is unacceptable. Restoring consistency will take time and it has our full focus. "The board is committed to delivering shareholder value and we are progressing against the priorities§ we set out over the last few months. "Great pictures from @ unitedutilities to cel- ebrate 120th birthday of Thirlmere Aqueduct" @BBCNWT YOU WHAT? NEED TO KNOW Balfour Beatty rejected Carillion's merger advances back in the summer Balfour Beatty has warned shareholders that it could breach banking covenants if the £820M sale of Parsons BrinckerhoŽ to WSP Global is not approved Parsons BrinckerhoŽ is one of Balfour Beatty's few pro" table units KPMG is carrying out a detailed independent review of the CSUK contract portfolio Sections of the existing facility will be demolished once a temporary works has been constructed WET News is registered at Stationers' Hall. Origination by Faversham House Group and TR Clash Ltd. Printed by Buxton Press, Palace Road, Buxton, Derbyshire, SK17 6AE. Copyright 2014. Faversham House. No part of this publication may be reproduced without prior written permission from the publishers. Every eŽ ort is made to ensure the accuracy of material published in WET News. However, Faversham House will not be liable for any inaccuracies. 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Editor Maureen Gaines: maureen.gaines@fav-house.com Production editor Mike Smith: mike.smith@fav-house.com Ad sales Deborah Lilley: deborah. lilley@fav-house.com Classifi ed sales Stephanie Lewis: stephanie.lewis@fav-house.com Team administrator Clare Klos: clare.klos @fav-house.com Production controller Sharon Miller: sharon.miller@fav-house.com Publisher Angela Himus: angela. himus@fav-house.com Published by Faversham House Ltd, Faversham House, Windsor Court, Wood Street, East Grinstead, West Sussex, RH19 1UZ Call: 01342 332000 Publisher's note: This issue includes editorial photographs provided and paid for by suppliers. 1yr: UK £99 Overseas (airmail) £113/$198 2yr: UK £171 Overseas (airmail) £199/$349 Call: 020 8955 7045 Email: fhcustomerservices@ abacusmedia.com SUBSCRIPTIONS: ONLINE: Search WET News' archives for more jobs, news, features, products and services, events and training courses. www. wwtonline.co.uk WET NEWS Average circulation Jan-Dec 2013: 6,110 UU's Thirlmere Aqueduct – a Twitter conversation "@percymark @BBCNWT It's a very hardworking aqueduct! :-)" @unitedutilities "@unitedutilities @ BBCNWT and a true marvel to still be doing so after all these years." @percymark "@BBCNWT @unitedutilities Does this also supply water to the city of Salford? Just that your report only mentioned city of Manchester" @percymark "@BBCNWT @unitedutilities Your report would have people think it only serves Manchester though. Bit misleading really." @percymark "@percymark @unitedutili- ties It was commissioned by the old Manchester Corpora- tion. I'm sure the water does go into Salford though..." @BBCNWT

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