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Three firms chase BBC work bonanza - Crane tragedy - Central Railway cranks up tendering programme
00:00 24 May 2000
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Exclusive by Glenda Thisdell
Three firms are understood to be locked in discussions with the BBC for the first part of its £500m-plus property redevelopment programme.
CJ can reveal that Mace, Bovis Lend Lease and Hornagold & Hill are vying for the opportunity to be construction manager on a £105m project to develop the BBC's site in White City. The first requirement is to build 20,000m2 of accommodation and 35,000m2 of high performance offices, which must be operational by early 2004. This will be followed by further development on the west London site.
The project is to be the first in a series of developments planned for the BBC's London Estate.
Other London projects include a £120m redevelopment of Broadcasting House. Planning work is due to begin this summer, with a start on site in 2003 and completion in 2007. There are also plans to refurbish and replace Television Centre in Wood Lane, west London in phases determined by operational and business needs, at a total cost of approximately £240m.
The winning construction manager for White City could be employed on the other two projects. Plans have also been drawn up for the remainder of its UK property portfolio. The Corporation is currently seeking a commercial partner to help develop the White City site. The final date for expressions of interest by developers is tomorrow (25 May). A source said that "all the good and the great" had applied.
Potential developers for the private finance initiative contract will need to be able to invest in excess of £200m. Initially the developer will be responsible only for White City but with the possibility of taking on the whole of the London Estate of 300,000m2 which includes offices, newsrooms, technical areas, studios, storage space and workshops.
The new strategy is part of 2020 Vision - BBC's plan for the selection of a private sector partner to take responsibility for the ownership, development, management and operation of its properties to make them more cost efficient, flexible and comfortable for staff and visitors.
The BBC is also in the process of selecting an architect for White City. Merchant bank NM Rothschild and property consultant DTZ Pieda Consulting have been hired by the BBC to advise on the strategy.
Other redevelopment plans include:
l A £20m, 15,000m2 new building in Glasgow. The McKenzie Partnership has already assumed the role of project manager for the £20m building. Completion is targeted for 2005.
l Refurbishing and extending the Oxford Road facility in Manchester. Capital expenditure is not expected to exceed £20m with completion set for 2005.
l £3m on new office accommodation in Bristol. Completion is set for 2004.
l £4m on extending existing facilities in Belfast by the end of 2003.
l £5-15m on new building work in Cardiff. Work could start in 2001.
l £10m refurbishment of Pebble Mill studios in Birmingham. Three men plunged to their deaths on Sunday (21 May) when a crane collapsed at the HSBC building site in London's Canary Wharf. The three have been named as Peter Clark, 33, from Southwark, London; Martin Burgess, 31, from Castleford, West Yorkshire; and Michael Whittard, 39, from Leeds. The tragedy happened when the crane, owned by Hewden Tower Cranes, was being jacked up one storey on the 48-storey block. Inspectors from the Health and Safety Executive are investigating whether human error or a mechanical failure caused the accident. Prime contractor on the project is Canary Wharf Contractors and steelwork fabricator is Kvaerner Cleveland Bridge. Exclusive by Carol Millett
Bidders for the 15 works packages for the construction of Central Railway's proposed £5bn freight railway from Lille to Liverpool, will be asked to put up between £500,000 and £1m as part of their tender. The money will be used to finance the project through the approval stage.
Bids are invited this week for the electrics package. This is the second contract to be put out to tender. The first - for the supply and maintenance of locomotives - went out last month. Both contracts are estimated to be worth around £300m. Central Railway is hoping to put the other 13 contracts out to tender by the end of this year.
CR chairman, Andrew Gritten said: "I am confident that our innovative approach to project finance, in which we are asking interested parties to invest in the company as part of their tender, will result in a strong partnership to build what is probably the world's largest privately-financed capital project."
CR claimed that at least 50 companies have declared an interest in bidding for all or part of the project, including major civil engineering contractors. The proposal has yet to gain parliamentary approval under the Transport and Works Act.
However the company is optimistic the scheme will get approval when it goes before Parliament in early 2001. If the vote is in favour, the scheme will then face a public inquiry. Construction work could start as early as 2003.
CR's chief financial officer Alan Stevens said: "We estimate a reduction of between 30-50% of international lorries in the south of the country. And most lorries in the south of England are international."
Stevens said public opposition would be ameliorated by the fact that much of the line would run along brownfield land and on disused track. "The scheme will take our industrial heritage and reinvest in it," he said, adding, "We are going out of our way to deal with any impact the line may have on property owners. The Government recently recognised our property protection scheme as the most generous yet."
The proposed line will run from Liverpool, via Manchester, Sheffield, the Midlands and London, through the Channel Tunnel to Lille in northern France.
Three firms are understood to be locked in discussions with the BBC for the first part of its £500m-plus property redevelopment programme.
CJ can reveal that Mace, Bovis Lend Lease and Hornagold & Hill are vying for the opportunity to be construction manager on a £105m project to develop the BBC's site in White City. The first requirement is to build 20,000m2 of accommodation and 35,000m2 of high performance offices, which must be operational by early 2004. This will be followed by further development on the west London site.
The project is to be the first in a series of developments planned for the BBC's London Estate.
Other London projects include a £120m redevelopment of Broadcasting House. Planning work is due to begin this summer, with a start on site in 2003 and completion in 2007. There are also plans to refurbish and replace Television Centre in Wood Lane, west London in phases determined by operational and business needs, at a total cost of approximately £240m.
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The winning construction manager for White City could be employed on the other two projects. Plans have also been drawn up for the remainder of its UK property portfolio. The Corporation is currently seeking a commercial partner to help develop the White City site. The final date for expressions of interest by developers is tomorrow (25 May). A source said that "all the good and the great" had applied.
Potential developers for the private finance initiative contract will need to be able to invest in excess of £200m. Initially the developer will be responsible only for White City but with the possibility of taking on the whole of the London Estate of 300,000m2 which includes offices, newsrooms, technical areas, studios, storage space and workshops.
The new strategy is part of 2020 Vision - BBC's plan for the selection of a private sector partner to take responsibility for the ownership, development, management and operation of its properties to make them more cost efficient, flexible and comfortable for staff and visitors.
The BBC is also in the process of selecting an architect for White City. Merchant bank NM Rothschild and property consultant DTZ Pieda Consulting have been hired by the BBC to advise on the strategy.
Other redevelopment plans include:
l A £20m, 15,000m2 new building in Glasgow. The McKenzie Partnership has already assumed the role of project manager for the £20m building. Completion is targeted for 2005.
l Refurbishing and extending the Oxford Road facility in Manchester. Capital expenditure is not expected to exceed £20m with completion set for 2005.
l £3m on new office accommodation in Bristol. Completion is set for 2004.
l £4m on extending existing facilities in Belfast by the end of 2003.
l £5-15m on new building work in Cardiff. Work could start in 2001.
l £10m refurbishment of Pebble Mill studios in Birmingham. Three men plunged to their deaths on Sunday (21 May) when a crane collapsed at the HSBC building site in London's Canary Wharf. The three have been named as Peter Clark, 33, from Southwark, London; Martin Burgess, 31, from Castleford, West Yorkshire; and Michael Whittard, 39, from Leeds. The tragedy happened when the crane, owned by Hewden Tower Cranes, was being jacked up one storey on the 48-storey block. Inspectors from the Health and Safety Executive are investigating whether human error or a mechanical failure caused the accident. Prime contractor on the project is Canary Wharf Contractors and steelwork fabricator is Kvaerner Cleveland Bridge. Exclusive by Carol Millett
Bidders for the 15 works packages for the construction of Central Railway's proposed £5bn freight railway from Lille to Liverpool, will be asked to put up between £500,000 and £1m as part of their tender. The money will be used to finance the project through the approval stage.
Bids are invited this week for the electrics package. This is the second contract to be put out to tender. The first - for the supply and maintenance of locomotives - went out last month. Both contracts are estimated to be worth around £300m. Central Railway is hoping to put the other 13 contracts out to tender by the end of this year.
CR chairman, Andrew Gritten said: "I am confident that our innovative approach to project finance, in which we are asking interested parties to invest in the company as part of their tender, will result in a strong partnership to build what is probably the world's largest privately-financed capital project."
CR claimed that at least 50 companies have declared an interest in bidding for all or part of the project, including major civil engineering contractors. The proposal has yet to gain parliamentary approval under the Transport and Works Act.
However the company is optimistic the scheme will get approval when it goes before Parliament in early 2001. If the vote is in favour, the scheme will then face a public inquiry. Construction work could start as early as 2003.
CR's chief financial officer Alan Stevens said: "We estimate a reduction of between 30-50% of international lorries in the south of the country. And most lorries in the south of England are international."
Stevens said public opposition would be ameliorated by the fact that much of the line would run along brownfield land and on disused track. "The scheme will take our industrial heritage and reinvest in it," he said, adding, "We are going out of our way to deal with any impact the line may have on property owners. The Government recently recognised our property protection scheme as the most generous yet."
The proposed line will run from Liverpool, via Manchester, Sheffield, the Midlands and London, through the Channel Tunnel to Lille in northern France.
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