Barnsley-based groundwork contractor VHE Construction is at the forefront of these developments. VHE's business development manager Tim Jessop sees reclamation as the future. "There will be a considerable increase in statutory-led remediation projects, where contaminated sites are identified as being a problem," he says. "There are several pieces of legislation trying to move development in this direction at present. They are just beginning to come together between environmental issues and revenue from landfill taxes, for example."
Sustainable technologies are still in their infancy in the UK. "Approximately 5% of remediation activity uses sustainable technologies," says Jessop, "95% is still dig and dump. The emerging technologies have not really taken off in the UK yet, but we expect they will do in the near future."
Soil washing
VHE uses two main sustainable reclamation techniques: bio remediation and soil washing. Bio remediation uses bacteria to naturally decompose the contamination on a site. VHE has used this technique on collieries and gas works.
Soil washing, as the name suggests, involves washing contaminated land rather than taking it away and refilling the site with clean soil. VHE completed the UK's largest soil washing project to date in October, in a joint venture with Mowlem Civil Engineering at the site of the Royal Arsenal in Woolwich, south London. It cost £20-25 per tonne to wash the soil – and that price included the manufacture of the equipment, which VHE did itself. This compares with £34 per tonne for dig and dump. The soil was washed at a rate of 120 tonnes per hour, which is the equivalent of six lorry loads.
Land reclamation is not the only area where VHE is taking a lead. It was one of the first subcontractors to get on to Amec's preferred suppliers list three years ago and partnering contracts account for up to 40% of its business. "I spend 90% of my time trying to convince people that partnering is the way to go," says Jessop, a no-nonsense northerner, who is keen to point out that partnering is not all about "cuddly" contracting. "These arrangements are built on trust and we do feed back to each other and look at how we can do things differently to achieve continuous improvement. We do criticise each other though, and it can get quite heated at times."
Jessop says the main benefit to VHE of being on the list is repeat business.
"It guarantees a steady flow of tenders," he says, although there are no hard and fast rules about how much work Amec will put its way. "Some arrangements are back-to-back, so if Amec gets the job, so do we. But we do compete for tenders as well. The difference is that the tenderers seek us out, rather than us having to seek out the tenders."
That might sound insubstantial, but Jessop stresses that this is where the real leap of faith comes in. "Partnering is all about mutual benefit and trust. We are likely to secure some repeat business, but in return, Amec demands a quality service from us. To cut down on administration costs, we had to go through a rigorous pre-qualification to get on their list, so we automatically pre-qualify for each job we do. This meant scrutinising our environmental policy, training and health and safety record and so on, and if we don't match up at any time in the future, Amec can take us off the list. It's all about developing trust, and that trust is built on success."
But you cannot develop trust overnight and there will always be some who are sceptical about the new approach. VHE has a method of dealing with this. "We have a series of workshops with the project team on each job, so the change of culture is across the board in both organisations. We've probably undertaken five or six partnering contracts to date ranging from formal Engineerin Construction Contract partnering arrangements with the Highways Agency to less formal collaboration agreements. But they are all based on trust, honesty and openness, it's all about communication."
Communication
And with real trust developed between the two parties, there is a reduction in risk. "What evolves with a partnering approach is a reduction in risk, and with that reduction is a reduction in the contingency against the risk as a result. Less risk for us means a tighter price for Amec," says Jessop.
Jessop also points out that developing relationships can avoid costly court actions, and even prevent adjudication. "A good partnering arrangement means a prompt resolution of disagreements and finding a solution before going to adjudication."
Jessop admits that partnering does not bring in the same profit as traditional contracting, but it has its benefits. "The margins aren't as great," he says, "but the turnover is higher and there is less risk."
Although the tide may be turning towards partnering in construction, it is not just the industry that has to be persuaded. "You have to convince the client that they will get value for money," says Jessop, "which you can only do over time. They still want the lowest price, not necessarily the best value for money. But people are starting to come round. Traditional forms of contracting are being used less and less."
Source
Construction Manager
