Contractors forced by clients to take more risk - CITB gives 8% more in grants - On-line bids to stiffen global competition - Hotel loses damages claim against architect

Contractors are having to take more risks than ever before in an effort to secure work because risks that were traditionally borne by the client are now being included with contractual obligations, a surv



BOXTEXT: New entrant training grants rose by £1.9m. The increase is attributed to the continuing success of the Construction Apprenticeship Scheme and higher levels of NVQ and SVQ achievements. There were 18,000 registrations with the apprentice scheme. Big increases in the on-site assessment and training (Osat) programme and Investor in People grant claims brought a £1.7m increase in other grants.

CITB's annual report for the year ended 31 December, 1999 - to be published shortly - will also show a 7% increase in total income. This rose from £104.6m in 1998 to £111.9m in the year ended 31 December 1999. Total spending rose by about £5m to £105.1m. The £6.8m surplus of income over expenditure during 1999 was a little over 50% up on the previous year.

The total number of employers registered with the training board increased by 1,848 to 55,686. This reversed a declining trend in the numbers registered over the past five years. Some 11,624 new employers were registered, with 9,776 being lost through liquidations and firms ceasing to trade.

Head office administrative costs were cut by 3% to £5.8m. by John d'Arcy



The Construction Industry Training Board paid out 8% more in training grants to employers last year compared with the previous 12 months. Total training grants rose from £45.7m to £49.2m.

New entrant training grants rose by £1.9m. The increase is attributed to the continuing success of the Construction Apprenticeship Scheme and higher levels of NVQ and SVQ achievements. There were 18,000 registrations with the apprentice scheme. Big increases in the on-site assessment and training (Osat) programme and Investor in People grant claims brought a £1.7m increase in other grants.

CITB's annual report for the year ended 31 December, 1999 - to be published shortly - will also show a 7% increase in total income. This rose from £104.6m in 1998 to £111.9m in the year ended 31 December 1999. Total spending rose by about £5m to £105.1m. The £6.8m surplus of income over expenditure during 1999 was a little over 50% up on the previous year.

The total number of employers registered with the training board increased by 1,848 to 55,686. This reversed a declining trend in the numbers registered over the past five years. Some 11,624 new employers were registered, with 9,776 being lost through liquidations and firms ceasing to trade.

Head office administrative costs were cut by 3% to £5.8m. by John d'Arcy



The use of the world wide web and dedicated intranets to conduct tendering by way of on-line auctions is bound to establish a truly global marketplace for much future contracting work, according to John Burt, immediate past president of the Engineering Construction Industry Association.

"Our only real competitive edge will lie in the knowledge, experience, and adaptability of our employees," he said.

Introducing the ECIA annual report, Burt said the workforce expertise "must be developed unhindered by old concepts of professional or job demarcations and they will need to be motivated and rewarded in new and different ways if their loyalty and commitment are to be retained".

ECIA chief executive Brennig Williams noted that the sector's quarterly business trends survey had shown a severe decline in new orders for 21 months in succession. Employment levels had fallen progressively since 1998 and both investment and profit margins were declining.

Power station construction remained static at about 25% of the total market - despite the moratorium on gas-fired stations which is now about to be lifted. Only oil refinery work showed some upturn in activity.

These conditions had created a buyers' market. Williams added: "The letting of some contracts to overseas contractors has raised concerns that established site practices may not be uniformly applied to the detriment of the industry as a whole."

Michael Hockey, design and construction manager at MW Kellogg, has been elected as the new president of the association. A court battle for damages from a firm of architects over alleged delays in the opening of a hotel in London's Kensington has failed.

Architect Munkenbeck & Marshall had already won a judgment for £67,236 against the owner, Kensington Hotel, in respect of fees owed. However, the hotel company counter-claimed alleging that breaches of contract by the architect had resulted in delays to the opening of the hotel. Had the counter-claim been successful, Munkenbeck & Marshall would have been liable for damages of £187,000 a month.

The judge rejected the hotelier's claim and said he did not consider the hotel company had proved that the terms of the agreement entitled it to damages.