O'Rourke culture clash opens up management rift

A management split is opening up at Laing O'Rourke as an "old guard" of company loyalists bids to seize back day-to-day control of Britain's largest private contractor.

Contract Journal understands chief operating officer Tony Douglas and his team face a backlash from O'Rourke veterans over his management style.

Douglas has assembled a large group of loyal managers since taking on the role in July 2007.

But a source close to the company revealed: "Tony is being marginalised on day-to-day operations despite the excellent profile he developed.

"Tony was brought in to create change in the old ways and is now paying the price for doing just that."

CJ understands that Douglas was scheduled to be appointed as chief executive of the company between April and August this year, but no appointment has yet been made.

ADVERTISEMENT

 

Another O'Rourke source indicated that company stalwarts have started to advocate a "back-to-basics" policy in a bid to return to the formula which made the company successful.

One insider said: "Tony has surrounded himself with a team of people - several of which came from his old company BAA."

But these executives are now thought to have fallen out of favour, as a team of O'Rourke veterans - including Mike Robins, Steve Hollinghshead, Barry Dye, Paul Collins and Anna Stewart - coalesces around Ray O'Rourke.

The insider close to O'Rourke's inner circle said: "These people have been with Ray almost since day one and he can rely on them in times like this when the market is tough.

"There has been a bit of a policy of recruiting people from outside construction but that hasn't proved a success. Construction is a very special industry and you need people who know how it operates to survive."

The news comes a week after details of Laing O'Rourke's financial results emerged. Its annual review for 2009 showed a revenue of almost ВЈ4.1bn for the year, but with additional "managed revenue" this rose to ВЈ5bn.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was ВЈ161.5m after exceptional items.

In his chairman's statement for the year ended 31 March 2009, Ray O'Rourke said: "In Europe, we have continued to make strong progress under the stewardship of Tony Douglas and a leadership team strengthened by a number of senior appointments.

"The organisational effectiveness achievements he has brought to the business are considerable."

A Laing O’Rourke spokesman said: “Ray O’Rourke and Tony Douglas continue to enjoy a first-class working relationship and to suggest otherwise is wholly wrong.”

Management shake-up at First TennesseeIndustry bigwigs attack college chaos

Vinci to buy Cegelec

French giant Vinci is buying electric engineering company Cegelec from a Qatari state-owned investment company in an all-share ВЈ910m deal designed to create a major European player in the energy services sector.

In exchange for Cegelec, Qatari Diar Real Estate Investment Co., a unit of sovereign fund Qatar Investment Authority, will receive 31.5 million of Vinci's shares, making the Qatari company the largest shareholder after Vinci's employee savings fund, Vinci told Dow Jones.

Vinci's employees owned 8.2% of the company's capital as of Dec. 31, 2008, according to the company's Web site. Vinci had 515 million shares outstanding at June 30. As part of the deal, Qatari Diar is required to keep its stake in Vinci between 5% and 8% for three years.

ADVERTISEMENT

 

Employee representative bodies will be consulted on the deal, which also requires clearance from competition authorities. Vinci said Qatari Diar will appoint a director to Vinci's board, subject to approval from the company's shareholders.

Vinci in a statement said the acquisition of Cegelec would enable it to expand its energy division in a sector that is set to post consistent growth rates.

Paris-based Cegelec generates annual revenue of about ВЈ2.3bn. More than half its sales come from power production, transmission and distribution, but it also is active in climate control and mechanical engineering, automation, and instrumentation and control, among other things. It employs 27,000 people in about 30 countries.

Vinci's energy division, which provides power-supply networks and distribution services, in 2008 booked ВЈ3.5bn in revenue. It employs more than 33,000 workers in 21 countries.

The acquisition of Cegelec would accelerate Vinci's expansion into international markets by building up its operations in Europe and opening up emerging markets, the company said.

The transaction would be earnings-enhancing from 2010 and would be neutral on Vinci's debt ratios, as Vinci would take over only Cegelec's operating debt.

Jump in energy demand fuels stocksHaymills in administration

Prison call for blacklisters

Leading lawyers are calling on business secretary Peter Mandelson to introduce jail sentences for any-one caught operating or using a blacklist.

Law firm Thompsons has written to Mandelson as part of a consultation process over new blacklisting regulations.

And the firm wants to see offenders face criminal charges - including imprisonment - rather than the current deterrent of civil action.

The consultation was launched by Mandelson in the wake of the construction blacklisting scandal masterminded by Ian Kerr and his company the Consulting Association.

Officials from the Information Commissioners' Office raided the Consulting Association's premises in March and found a blacklist containing the names of more than 3,200 construction workers. More than 40 major construction companies were subscribers to the list.

ADVERTISEMENT

 

Kerr was fined just ВЈ5,000 at Knutsford Crown Court for breaching the Data Protection Act.

Thompsons is currently acting for at least 14 construction workers who are looking to sue for damages after being denied work because of the blacklist.

Richard Arthur, head of trade union law at Thompsons, said: "Blacklisting is different to other forms of discrimination, because it is by definition, planned, covert and systematic.

"The Employment Relations Act 1999 which provides the enabling legislation envisaged that there would be criminal sanctions for blacklisting trade unionists.

"It sends the wrong message to potential law breakers to now say that only civil law sanctions such as fines will apply."

Enforcement notices served against 17 blacklisting companiesTennessee to get $15.6 million share of record Pfizer settlement

Five chase £120m Network Rail office development

Five contractors have made the shortlist for Network Rail's ВЈ120m national offices in Milton Keynes.

Balfour Beatty, Bam Construct, Laing O’Rourke, Skanska and Sir Robert McAlpine are the firms who have been invited to tender.

They have until early October to submit first stage tenders, with a winner to be announced in August 2010.

The scheme will be built on the site of the former national hockey stadium, which is being demolished, near Milton Keynes Central railway station. 

Network Rail will submit a planning application for the 40,000m2 development in early November. The offices are scheduled to open in 2012.

Stimulus funds to help VW plant in TennesseeNetwork Rail to axe 1,800 maintenance jobs

£184m south-east social housing scheme up for grabs

Contractors are being invited to bid for a 10-year asset management contract worth up to ВЈ184m across London and the South East.

The work covers 10,700 housing units including Richmond-Upon-Thames, Kingston-Upon-Thames, Hounslow, Lambeth, Wandsworth, and Woking.

The deal has been broken into four lots covering responsive and void repairs, gas servicing and breakdown repairs, a decent homes and component replacement programme, plus a cyclical decorating programme.

Between six and eight firms will be invited to tender.

The deadline for pre-qualification questionnaires is 5 October.

Murfreesboro’s Broad St. bridge repair is completeLovell wins £24m social housing deal

£72m Edinburgh Zoo expansion gets green light

A ВЈ72m expansion of Edinburgh Zoo looks set to go ahead after the city's planners gave the OK to a housing scheme which will fund the redevelopment.

Council officials have recommended that 80 new homes be allowed at the Kaimes Road entrance to the Zoo.

A final decision will be made by councillors at a planning meeting later this week, reports The Scotsman.

Clayton fights decline in manufactured homesFive in hunt for £25m decent homes job

EDF Energy Contracting fined after worked killed in fall

EDF Energy Contracting has been fined ВЈ160,000 after a worker died from fatal head injuries after falling from scaffolding at a school in Worthing.

James Gordon, 63, was dismantling a mobile tower scaffold at a sports hall in Worthing High School in August 2007 when he fell.

The top working platform had been removed and Mr Gordon, of Leigh Park, Havant in Hampshire, was on an intermediate platform, according to the Brighton and Hove Argus.

An HSE investigation found that there were no handrails to save him and he fell more than five meters.

EDF Energy Contracting Ltd pleaded guilty at Chichester Crown Court today to breaching regulations 4b and 4c of the Work at Height Regulations 2005.

The company was also ordered to pay costs of ВЈ24,594.98.

ADVERTISEMENT

 

HSE Inspector Russell Beckett said: “It is important that all tower scaffolds are erected and dismantled correctly and that guard rails are fitted so as to prevent falls. All too often tower scaffolds are used incorrectly without the correct handrails.

“All working platforms must be provided with suitable edge protection.

“Guard rails should be at least 950mm high and an intermediate guard rail should be provided so that workers can’t fall through any unprotected gaps.”

Seddon profit plummets 89%School fees, health costs cancel fall in other prices