News Archive - March 2001

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Posted March 30, 2001

Office costs survey highlights FM
Over a third of the cost of occupying the typical office is accounted for by facilities management, rent and rates comprise just over half. This conclusion, which should not come as news to the FM community but may surprise those working in property, comes from The Total Office Cost Survey.

WS Atkins part of £18m PFI for MAFF
WS Atkins is to provide structural and building services engineering for an £18.2m PFI project, led by Kajima to develop the Ministry of Agriculture Fisheries and Food’s site in Cambridge.

Compass Group in Japanese joint venture
Compass Group has formed Compass Group Japan - a joint venture with the Itochu Corporation and Fuji Oil - through the acquisition of an initial 45% in parent company GMJ, to be followed by a further 5% over three years.


Posted March 29, 2001

i-FM launches e-business Award
i-FM is launching an Award for companies and organisations which are exploiting new technologies, particularly the internet, to improve business processes and performance.

Jarvis wins second Irish PPP project
Jarvis has won its second education PPP project for the Irish Department of Education and Science worth £125m. Under the 25 year flagship contract, Jarvis will develop a new third-level music college for the Cork School of Music.

Two consortia shortlisted for £230m hospital PFI
Skanska Innisfree and The Hospital Company have been shortlisted for the £230m PFI to build Walsgrave Hospital’s new facilities in Coventry.


Posted March 28, 2001

Jarvis wins Ireland’s first schools PPP
Facilities management group Jarvis has been appointed preferred bidder for a 25 year contract with Ireland’s Department of Education and Science to develop five new 'state-of-the-art schools'.

Growth for hospitality sector despite skills shortages
Contract caterers at the British Hospitality Association’s (BHA) survey presentation on Tuesday emphasised the importance of marketing in the increasingly commercially minded industry and the threats posed by skills shortages.

Rental growth to slow, predicts GVA
There will be a decline in the rate of rental growth in the office sector, forecasts GVA Grimley. Research carried out by the company indicates that the rate of growth will fall from 11.7% (over the last 12 months) to 4.3% in an annual average over the next five years.


Posted March 27, 2001

Employees are personally liable for professional advice
In a Landmark test case, Merrett -v- Babb, the Court of Appeal has ruled that employees will constantly be vulnerable to claims brought directly against them for advice given on behalf of their employers.

LCC ups security
Facilities management company LCC Support Services has set up a security squad to screen personnel due to the increasing number of bank, building society and other security conscious clients.

Bespoke office for BT Genie
MWB BusinessExchange is to provide 2,400 sq m of serviced offices to British Telecom business unit, BT Genie, at No 1, The Broadway, Hammersmith in a ‘ground breaking’ contract signed at MIPIM.


Posted March 26, 2001

BT shortlists Land Securities Trillium and Mapeley for property transfer
In a brief announcement BT confirmed that it has short-listed Land Securities Trillium and Mapeley for the divestment of its UK property portfolio

AMEY preferred bidder for Edinburgh flagship education PFI
Amey has been selected as preferred bidder for the £360m ‘Investing in Education’ PFI project for the City of Edinburgh Council.

New contract for Danka
Danka Services International (DSI), part of Danka Business Systems, has won a three-year contract to provide reprographics services to Cambridgeshire County Council.


Posted March 23, 2001

BBC chooses Trillium
The BBC has appointed Insight, the Land Securities/Trillium bid, as preferred bidder for its proposed property partnership with the private sector

Carillion finally signs £500m BT FM contract
Almost a year after BT chose the Carillion led Monteray consortium to deliver FM services across its portfolio, the Project Jaguar deal has finally been signed.

Select wins five year PRO contract
Select Facilities Services has been awarded a five year facilities management contract with the Public Record Office in Kew, worth £8m.

McAlpine buys asset management business
Construction company Alfred McAlpine is to buy Proby Ltd, the parent company of Kennedy Utility Management which provides distribution asset management services to the utilities sector.


Posted March 22, 2001

News Extra BBC chooses Trillium
The BBC has appointed Insight, the Land Securities/Trillium bid, as preferred bidder for its proposed property partnership with the private sector

ISS continues growth by acquisition
ISS has added another six companies to its lengthening list of acquisitions. So far this year the ambitious Danish service provider has bought 12 companies, one in damage control and eleven in facility services boosting turnover by approximately £43m and adding over 2000 employees to its headcount.

Growth for UNITE
Student and NHS worker accommodation services provider UNITE Group, has announced a 170% increase in turnover to £30m (£11.1m) and a 260% rise in pre tax profits to £3m (£0.8m).

Trammell Crow Savills launches 'e' service
Trammell Crow Savills (TCS) has launched an 'e-concierge' service to help its clients' staff balance their work and personal commitments. The service is being piloted at Ernst & Young, where TCS offers online access to shopping, dry cleaning and car valeting.


Posted March 21, 2001

Will you pay your staff £4.10?
Earlier this month the Government announced an 11% increase in the minimum wage, initially introduced two years ago, to £4.10 per hour. The new rate comes into force in October.

Support services boost Kier Group
Kier Group’s support services businesses, including Caxton Facilities Management, grew by 38%, contributing to record half-year results. Group operating profit was up 47% to £6.9m, with turnover up 22% at just over £590m.

Contract win and increased profits for Amey
Amey has announced increased profits and continued growth in all market segments. The group’s turnover rose by 34% to £700m (£523m) and pre-tax profits increased by 37% to £39.3m (£28.7m). Its forward order book reached a record £3.5bn.


Posted March 20, 2001

New software to raise H&S standards
A new 'easy-to-use' software package designed to help small businesses improve their health and safety awareness could also benefit larger businesses, says the Health and Safety Executive (HSE).

New executive director at Amey
Amey has appointed Dr John Whiteman as group director of business development. An economist, John was previously with international management consultants Bain & Company, where he was principal of the firm’s capital management practice in Australia.


Posted March 19, 2001

Schools to receive £650m PFI funding
Local Education Authorities have been authorised to spend over £650m on school capital projects through the Private Finance Initiative (PFI), Schools Minister Jacqui Smith announced yesterday.

Emphasis on workforce in new Best Value guidance
Proper and fair handling of employment issues is essential to achieving Best Value, says the Government in its new guidance Best Value and Procurement: Handling of Workforce Matters in Contracting published by local Government minister Beverley Hughes.

Adjusting your workplace to comply with the DDA
“When you think ‘disabled’ what are you thinking?,” asked Keith Bright, one of the speakers at the Facilities Management Legal Update conference in Birmingham this week. “Wheelchair,” reply a number of people in muffled voices.

FM market worth £75bn says MBD
Sales in the facilities management sector totalled £75.5bn, a 5% rise according to the latest quarterly report from Market & Business Development.


Posted March 16, 2001

Interserve set for growth
Interserve (the renamed Tilbury Douglas) says a "substantial order book and growing markets", gives it confidence about long term prospects.

BSA satisfied with New Deal review
The review of the Government’s New Deal initiative shows it is realistic, says the Business Services Association (BSA). “Until now there has been little real engagement of employers with New Deal, which has been seen as insufficiently focussed on the real needs of industry,” says director-general Norman Rose.

Contract extension for Eurest Sutcliffe
Eurest Sutcliffe has been awarded a three year extension to its contract with Bristol & West under which it provides catering for 1,100 staff at the company’s new premises at Temple Quay in Bristol.


Posted March 15, 2001

Carillion looks to service business
Carillion's service businesses, which include facilities management company Carillion Services, saw turnover fall back slightly last year to £306.7m (£322.7m).

International FM student project seeks sponsors
Facility management students at the University of Professional Education in the Hague are organising a study trip to the UK as part of an International Semester.

BRE completes health and safety review
BRE has completed a major review examining the health and safety risks associated with various hazards in buildings. The results of this work are available in a new BRE report on the influence of buildings and the indoor environment on the health and safety of building users.


Posted March 14, 2001

Renewable energy conference
The Building Research Establishment is to host a major one-day conference in an attempt to encourage architects and building designers to meet environmental objectives during the design process and to dispel some of the myths surrounding renewable energy technologies.

Flexible working: still room for improvement says IS

The Industrial Society says the Government should ‘take a stronger lead in tackling the cultural change employers experience when implementing flexible working practices and new parenting rights.’


Posted March 13, 2001

US summit on building performance meets
The fifth annual National Summit on Building Performance takes place in Washington this week (14th and 15th March). This year's theme is Corporate Agility: Workplace and Infrastructure Management Strategies.

Management development needed, says IS
Research by the Industrial Society shows that UK companies will have to prioritise the development of senior managers in the next few years.

Pearson for de Lucy

John de Lucy, a familiar face on the FM scene, is to move from CB Hillier Parker to media group Pearson as facilities director for the company's new London headquarters.


Posted March 12, 2001

Securicor sells recruitment business to focus on security
Securicor is to strengthen its security focus by acquiring Dutch security company Randon Beveiliging Beheer from Randstad Holding and by selling its UK recruitment company, Securicor Recruitment Services, to Randstad – an international recruitment company.

Summit and AMEC make key appointments
Summit Support Services has made two appointments to broaden its service offering and exploit wider market opportunities. Tony Angel joins Summit as Operations Director from WSP and prior to that Chesterton Workplace Management.

STEPS signs with Mapeley

The Inland Revenue, including the Valuation Office Agency and Customs and Excise have now signed the STEPS contract with Mapeley, for which it was selected preferred service provider in August last year.

Changing jobs too often could be unhealthy
Swedish research shows that people who change jobs often are less healthy, especially temporary and part time workers in the service sector.


Posted March 09, 2001

Mowlem profits from support services
Profits from support services at Mowlem rose 45% last year, with margins up 40% to 3%. Mowlem's facilities services division Aqumen increased its operating profit by 61% to £5m compared to £3.1m in 1999 on turnover of £150m (£146 m).

AMEC announces increased profits
Services and engineering solutions provider AMEC has reported a 30% increase in turnover to nearly £4bn (£3bn) in its final year results, and a 25% growth in pre-tax profit to almost £100m (£79m).


Posted March 08, 2001

Savills looking for growth
International property consultancy Savills, the joint venture partner with America's Trammell Crow in outsourcing company Trammell Crow Savills reports pre-tax profits for the eight months to December 2000 of £17.4m on turnover of £156.7m.

Compass strengthens its position in Germany
Compass Group has acquired an initial three quarters of a German foodservices company and won a ten year catering contract for the football stadium VFB Stuttgart, strengthening its position in the German food services market.


Posted March 07, 2001

Profits up for WSP
WSP’s FM division contributed £5m to the Group’s total turnover of £138m. Led by Marilyn Standley, WSP FM’s growth strategy is to focus on strategic FM, particularly consulting which contributes to the delivery of WSP’s “cradle to grave” service offering.

Bovis Lend Lease wins three year FM contract
Bovis Lend Lease Facilities Management has been awarded a £3m FM contract with IT company Novell, to provide services at four of the networking company’s European offices for three years.

Occupiers’ site launched
A web site - occupier.org – has been launched by a consortium of organisations "to generate and place in the public domain knowledge of the impact of buildings and workplaces on occupiers' business performance".


Posted March 06, 2001

Relaunched BIFM Awards announced
The BIFM Awards programme has been expanded for 2001 due to the “success and credibility that the ‘Office of the Year Awards’ created” as well as “to reflect the growing importance of FM in today’s workplaces,” says David Hogg, chairman of the judges.

Swisscom sells real estate portfolio but retains FM responsibility
Swisscom is to sell part of its real estate portfolio - consisting of 28 commercial and office buildings - to Credit Suisse Asset Management, for CHF 1.272bn (£527m).

Foot-and-mouth disease threatens construction
The foot-and-mouth crisis has become a threat to the construction industry, placing a growing number of work sites under quarantine, claims the National Federation of Builders.


Posted March 05, 2001

ISS growth continues
The acquisitive Danish service provider ISS increased both turnover and operating profit by more than 40% last year. Operations in the UK contributed the second highest sales figure.

WS Atkins supports GCHQ
WS Atkins is to provide programme and project support services to GCHQ for up to five years, to support the construction of its new centre for 4,000 staff near Cheltenham

Jarvis develops student accommodation in Glasgow
Jarvis has commenced work on a mixed development scheme in central Glasgow as part of its University Partnerships Programme, including 185 post-graduate student bedrooms.


Posted March 02, 2001

London hospital PFI for Bouygues
Bouygues UK, the British division of Bouygues Construction, part of the giant French construction group Bouygues SA, has won a contract worth around £51m (e80m) to build a new hospital in London under the private finance initiative.

Upton elected executive VP at C&W
Cushman & Wakefield has elected O.B. (Barney) Upton as executive vice president of corporate services. He will be responsible for global coordination of all corporate services business, ensuring consistent, quality service throughout the world.


Posted March 01, 2001

FM sales and profits down at Rentokil
Turnover and profit at Rentokil’s facilities management business declined in 2000. Sales were down 6.2% at £445.3m and profits regressed by 29.3% to £35.7m. However, the company says it is confident that FM is a growth area.

Majority stake in PUK for sale
The Government is seeking private investors to take a controlling stake in Partnerships UK (PUK), the successor to the Treasury Taskforce, set up in June last year to streamline and accelerate the Private Finance Initiative.

Northumbria awards £20m PFI to UNITE
University accommodation provider UNITE has been selected as preferred bidder for a £20m PFI design and build project for the University of Northumbria, in which UNITE will build 337 off-campus study bedrooms in self-contained flats.

Compass forms joint venture in Middle East
Compass Group is to form a joint venture company - ADNH Compass Middle East LLC - by merging its Middle East operations with United Emirates based foodservice company Abu Dhabi National Hotels (ADNH).