With Brexit looming, what uncertainties should we be thinking about in the construction industry?

 

As the impending date of Brexit approaches, Britain’s construction sector continues to whither in anticipation of uncertainties tied to this unprecedented historical event. Below are a few things in particular firms should be worried about, but as in all volatile markets, we should be patient for this cautionary period to end, especially as plans for an exit strategy become more clear.

Earlier this year, our manufacturing sector saw a major surge in output as companies began to prepare for tighter restrictions on cross-border movement of workers and goods. It is safe to say that the surge is, for the most part, over and we are now all eagerly anticipating the next phase of the exit strategy. Prices for imported goods, including a massive amount of building materials, are likely to increase with new tariffs and taxes and will likely take longer to arrive as movement becomes more tightly controlled.

Additionally, it can be assumed that after the withdrawal from the EU, we can expect a major labor shortage. More than a quarter of all construction workers in London are EU migrants and if it’s harder for them to reach job sites, it’s very possible they won’t attempt to gain work here. The available labor that is left will consequently become more expensive, with projects facing extended timelines to completion.

Wary investors are pulling back as well, removing revenue streams from the industry that help feed the delivery of larger projects such as the HS2 (which our firm is assisting on). On the other side of this coin however, the government may be able to assist with more funding that would otherwise be spent on EU membership.

Whatever the future holds, we are confident the innovation and resiliency of the firms we serve will continue to help build a better future for all Britains, and we are very excited to walk alongside them through these uncertain times.

Michael Gallucci serves as the managing director and owner of MPGQS, a leading property and construction consultancy headquartered in London. Since 1996, Michael has built a reputation as a trusted partner for firms in need of his extensive expertise, great energy, and an unparalleled eye for detail. These strengths, in conjunction with his ability to build a team from the greatest talent in the industry, have paved the way for MPGQS to become a leader for handling large scale international projects.

MPGQS operates from offices around the UK, Europe, and the Middle East, and serves clients in areas relating to financial, commercial, contractual, and engineering aspects for large construction projects. From quantity surveying, project management, and dispute resolution, MPGQS works with clients on all levels of a project from inception to completion.
Learn more about our company by visiting our company website or visit us on social media.

MPG article featured in Aalmeen News Middle East

MPG article featured in Aalmeen News Middle East

You can read it by clicking the link below:

 

MPG preparing for the Big 5 Show in Dubai

THE BIG 5 SHOW the largest trade fair for construction will be held in the Middle East emirate Dubai. It’s a meeting place for building and civil engineering professionals both international and local. Alongside the exhibition there will be a variety of events like The Big 5 Technical Conference, The Big Green Trail and The Big 5 GAIA Awards. The BIG 5 SHOW is accompanied by THE BIG 5 PMV that is a dedicated arena for plant, machinery, tools & construction.

The The Big 5 will take place on 4 days from Monday, 25. November to Thursday, 28. November 2019 in Dubai.

MPG are being sponsored by UK Trade & Investment to exhibit at the show.

We look forward to seeing you there.

 

Team GB Success

Congratulations to Michael Gallucci who recently competed as part of Team GB at the 2019 Transylvania Multisport European Championship.  All the hard work and training paid off and he finished in the top 20 in his age group in the Aquabike event.

2019 continues to be a busy and successful year for MPG and in particular our Dispute Resolution team whose most recent success won a settlement of over half a million pounds for our client.  Recent commissions include The Science Museum, West Ham Station Ticket Hall, UCLH, Grants Whiskey and GOSH and in June we received our Certificate of Registration as a firm regulated by RICS for the coming year.

In addition MPG will shortly be launching a series of Webinars around NEC4 and dispute resolution, more information to be published here shortly.

MPG expands it’s team and project portfolio in the first quarter of 2019

Since moving to our new offices at the start of the year MPG have expanded their team and are pleased to welcome Peter Toseland (Project Director) and Martin Cripps (Bid Manager), and Graham Vinters (Planner & Project Controls), who are now part of our Pre-Construction Team assisting our clients with their bid and tender requirements.

The first quarter of 2019 has brought over 20 new projects to the practice so far from both new and existing clients. New commissions include Expert Witness, Dispute Resolution and Commercial services on Fulham Gas Works, 15 Kean Street, IKEA Greenwich, Hanover Square, Hobhouse Court, O2 Cineworld, South Bank Apartments, Lewisham Ambulatory and Park Crescent in Regents Park. Demand for the expertise and experience of our dispute resolution team continues to grow.

Changes at MPG

We’re delighted to announce that due to expansion, our Watford office has moved to a new location. We’re also proud to have achieved RICS regulated status, and we have updated our company name to reflect this.

Our new address in Watford is 42-44 Clarendon Road, Watford WD17 1JJ. Please note we also have a new Watford telephone number. Telephone: 01923 312306. We’ve moved to make room for our growing dispute resolution team.

Please update your records with our new Watford details. You can find all our contact details across the UK and worldwide here: Contact

Having achieved RICS regulated status, we’ve changed our company name to more accurately reflect the business in 2019. We’re now MPG Chartered Surveyors Ltd.

Regulated by RICS designation shows that MPG:

  • practises to globally recognised standards
  • behaves ethically, and acts with integrity and honesty
  • has the required skills and competencies to do the job
  • manages conflicts of interests transparently
  • safeguards the security of client money
  • manages its finances appropriately
  • provides adequate and appropriate indemnity for your work
  • handles complaints and disputes fairly.

 

MPG hires Ryan Dando as Commercial Manager

International construction consultancy MPG has appointed Ryan Dando as Commercial Manager.

Ryan has more than 17 years’ experience in the construction industry, including over a decade working on various forms of the NEC contract.

He has worked across sectors including retail, social housing, stadia and residential as well as commercial offices, aviation, rail and design. His experience includes work on landmark projects, such as Westfield at White City, the London Olympic Games and the redevelopment of Heathrow Terminal 2.

Prior to joining MPG, Ryan was a commercial manager with Atkins, and previously worked as a senior cost engineer and contract administrator with Crossrail on the Bond Street station project and with Morgan Sindall as commercial manager for MEP and fit out of Crossrail stations.

His core skills include cost engineering, project controls and contract administration under the NEC form of contract. Other skills include anticipated final account management, procurement of works packages, tender analysis and contract negotiation as well as early warning and compensation event management.

Legal ruling highlights importance of preparation

Preparation is crucial when taking a construction dispute to court, a new legal ruling has underlined.

Construction consultancy MPG says the High Court decision should also serve as a reminder to contractors that they need effective programmes in place before commencing a contract in case there is a dispute in future.

The claimants in Clutterbuck and another v Cleghan lost because they failed to call an important witness, and the court refused to allow them to plug gaps in expert evidence at the last minute.

Michael Gallucci, managing director of MPG, said: “This is a wake-up call for anyone contemplating legal action, and their litigation team, that you must be fully prepared before you walk up the steps of the court building.”

Mr Gallucci, who advises leading construction companies and speaks internationally on contract law, said contractors must also prepare to protect themselves in the event of a dispute before even beginning work on a project. “Programmes are absolutely vital when claiming for delays or combating counter-claims,” he said. “They become yardsticks against which to measure the effects of delays, which are a frequent cause of disputes.”

An RICS accredited mediator, Mr Gallucci said too many property and construction disputes end up in court. “Instead of rushing headlong into what should be the last resort, the parties in a dispute should seek to resolve their problems through mediation, which is quicker and less expensive,” he said. “The Clutterbuck trial lasted 11 days in the High Court, no doubt racking up a big legal bill for the claimants who in the end walked away empty-handed. There is no way of knowing if they would have had a better outcome if they had settled by mediation, but in most cases, it is a better and less painful way to reach a conclusion.”

He added: “Settling out of court with the help of a qualified mediator can even mean that the parties don’t fall out irrevocably and can work together again. That’s rarely the case after an acrimonious court battle.”

Ten fatal errors to avoid with NEC construction and engineering contracts

Leading construction consultancy MPG has joined forces with award-winning law firm DAC Beachcroft to warn about deadly mistakes that contractors must avoid when using NEC contracts.

NEC contract templates are already widely used in the UK, from small procurement jobs to huge schemes such as the Olympic Park, and new templates in the latest version (NEC4) extend their use to new types of projects.

Their success is built on the efficiency of being able to use a ready-made and proven contract for project management and to define legal relationships. This is both more efficient and less expensive than writing a new contract from scratch.

But there are risks, which are highlighted by Michael Gallucci, managing director of MPG, and Michael Blackburne, a partner at DAC Beachcroft, in a new seminar being offered free to contractors, subcontractors, project managers, employers and other NEC users.

They have compiled this list of the top ten areas to focus on when using NEC contracts to avoid potentially catastrophic failures.

1.    Administrating the NEC

2.    Accepted programme and revisions

3.    Working areas

4.    Notifications

5.    Compensation events and time bars

6.    Early warning

7.    Defined costs, disallowed cost and defects

8.    Design – standard of care

9.    Completion

10. Compulsory adjudication

Michael Gallucci said: “With construction disputes on the rise, it’s obviously vital to have a suitable contract in place before embarking on a project. NEC is an excellent starting point, but it is crucial that contractors understand what they are getting into and manage the process properly.”

The seminar, which is offered free and on site at the contractor’s premises, also covers what it means for contractors to enter into an NEC contract and what they should be doing to ensure it works for them and not against them.

To book a seminar at your premises, email sarah.dexter@mpgqs.com

The seminar offers top tips for employers and project managers as well as covering how contracts should be administered and how to make claims through compensation events and early warning notices.

Key benefits of the new NEC4 contract suite are

  • Streamlined processes and updated definitions
  • Improved contract administration and reduce admin costs
  • Greater clarity and reduced potential for problems
  • Provision for BIM and early contractor involvement
  • Improved Risk Opportunity and Risk Management

There is more information at www.neccontract.com/About-NEC/NEC4-suite-of-contracts