WET News

4 WET NEWS NOVEMBER 2015 News+ CONTRACT WINS Thumbs up Thumbs down United Utilities and anglers tackle an increase in fly-tipping at reservoirs. Ofwat waives tender rules for the Tideway Tunnel to prevent delays. For a Ukranian politician whose office in Moldova was sprayed with sewage by a disgruntled sanitation worker. WICS concerned over delays in Scottish Water's investment programme. New owners for engineering consultancies • Frischmann family sells shareholding in consultancy Pell Frischmann, while Sweco's takeover of Grontmij is completed. E ngineering consultancies Pell Frischmann and Grontmij have new owners. Pell Frischmann has been taken taken over by RAG- Sti•ung (Foundation) Investment Company, while Swedish group Sweco has completed its acquisition of Grontmij. RAG-Sti•ung has bought a majority stake in Pell Frischmann having acquired the shareholdings previously owned by the Frischmann family and part of the Prabhu family. Jürgen Wild, managing director of RAG-Sti•ung Investment Company and incoming Chairman of Pell Frischmann, said: "Our strategy is to invest in market leading firms with an international reach and a strong existing management team that delivers steady returns and growth. Pell Frischmann fits our criteria perfectly. A highly respected engineering consultancy that has an enviable reputation of combining cutting edge technical expertise with superior customer service. "I am committed to support the team growing the business both in UK and abroad." Dr Wilem Frischmann, who is stepping down from his role as Pell Frischmann chairman to take on an advisory role to the incoming chairman, added: "Throughout my career I am honoured to have worked with The addition of Grontmij means Sweco now has 14,500 employees in 15 European countries Sweco has completed approximately 100 acquisitions over the past ten years Dr Wilem Frischmann, who is stepping down from his role as Pell Frischmann chairman Pell Frischmann has led the design of construction projects including Centre Point in London Pell Frischmann has won Queen's Award for Enterprise: International Trade (2015-2020) Tender prices to rise by a third • New infrastructure output to be "very strong" this year and fall by 2017 as the cycle of some major projects pass peak. C ivil engineering costs and tender prices are continuing to rise as the UK infrastructure market strengthens. According to the latest report by RICS' Building Cost Information Service (BCIS), tender prices are forecast to rise by nearly a third in the next five years. The report, BCIS Infrastructure Briefing October 2015, said civil engineering costs rose by 0.7% in the second quarter of 2015 compared with the previous quarter, but remained unchanged compared with the same period last year. However, these costs are expected over the coming five years along with tender prices and new infrastructure output as a whole. Costs will rise 3.5-5% each year, with the price of materials and nationally agreed wage awards steadily increasing. The report expects new infrastructure output to be "very strong" this year, remain static in 2016, and to fall by 2017 as the cycle of some major projects pass peak. It predicts moderate growth returns in 2018 and 2019, with growth rising "quite sharply" in 2020 as a result of increased investment in major roads schemes. Peter Rumble, head of forecasting at RICS' BCIS division, said: "With new infrastructure output set to be very strong in 2015, the annual rate of tender price increases is expected to rise in the second half of 2015 and the first half of 2016, resulting in an increase of 7.6% in the year to second quarter 2016. Over the next few years, tender price rises are anticipated to be driven primarily by increases in input costs, rising by 4% to 5%. as growth moderates and even falls in 2017. Over the final year of the forecast, stronger output growth in 2020, together with increasing input costs, are likely to lead to higher tender price rises in the year to second quarter 2020, with a rise of 6.2%. "New infrastructure output is anticipated to be at a historically high level over the forecast period compared with pre-2010, with annual average growth of around 3.5% - a real positive for Britain and the economy." • "I am thrilled, excited and looking forward to being involved with working collaboratively with Yorkshire Water," said Mark Fryer, general manager for Nomenca Leeds, which has secured a deal as part of the utility's AMP6 MEICA Direct Delivery Framework. • PSS Hire is "absolutely delighted" to have secured a five-year framework agreement extension with Scottish Water. The contract covers specific equipment hire and servicces, such as coil pipe trailers and butt fusion machines. • Analytical Technology (ATi) has been awarded a new framework agreement for water and wastewater monitoring equipment with United Utilities. ATi will act as the sole or dual technology supplier in nine categories of instrumentation. • Rotork has a new valve actuator supply frame- work with South East Water for a period of three years, with the option to extend to five years. The deal includes training and support services to South East Water staff and its delivery contractors. some of the best engineering minds on some of the world's most exciting engineering projects. Pell Frischmann has grown to become one of the most respected consultant engineers in the business, and I am delighted that we have found an investment partner to help continue this legacy and provide an ideal platform for further growth". Pell Frischmann has led the design of construction projects including Centre Point in London, the refurbishment of the Bank of England and the University of Oxford's New Bodleian Library and the Forth Rail Bridge Restoration. Overseas projects include Delhi Airport, India's Low Carbon Smart Cities and one of the biggest rebuilding projects in Iraq, the Mid-Western Water Supply project. In the UK, it is has frame- works with Wessex Water, South West Water, Thames Water and United Utilities. The acquisition of Grontmij by Swedish group Sweco has created one of the largest architecture and engineering consultancies in Europe. Integration of the two groups now started. Sweco announced its intention to acquire Dutch group Grontmij back in June and said "the acceptance level for the offer was met with a good margin". Tomas Carlsson, president and CEO of Sweco, said: "With one move, we have become the European leader. We now have a more prominent role in planning and designing the communities and cities of the future. Sweco and Grontmij complement each other perfectly. "Both businesses are known for a strong customer focus and recognised expertise. Geographically, we operate in Tomas Carlsson: 'Sweco and Grontmij complement each other perfectly' different markets, and this is a crucial platform for continued growth opportunities." Following the acquisition, Sweco now has 14,500 employees across 15 European countries. Potential synergies achieved by combining the two groups produce an annual saving of €27M in operational improvements, of which 90% will be realisable within four years. Jeff Davitt, interim managing director of Grontmij UK, said: "In the UK this means that our customers should continue to expect working with local experts who have an in-depth understanding in their specific business and needs. The difference is that Sweco's size, stability and complementary areas of expertise further strengthen our offer and create new opportunities for the future." www.teekaycouplings.com tel: +44 (0)1494 679500

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