ce november 2015.pdf

8/18/2019 CE November 2015.pdf

1/52

Falsework &

formwork p38

Utilitiesp24

Bauma

interviewp22

Tunnelling

C O N S T R U C T I O N

THE MAGAZINE FOR EUROPE’S CONSTRUCTION INDUSTRY www.construction-europe.com

Volume 26 Number 9 A KHL Group publication

November 2015

ww.constru

p31


2/52

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identity used herein, are trademarks of Caterpillar and may not be used without permission.


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CONTENTS

CONSTRUCTION EUROPE NOVEMBER 2015

EDITOR Sandy Guthriee-mail: [email protected] tel: +44 (0)1892 786234

DEPUTY EDITOR

Joe Malonee-mail: [email protected] tel: +44 (0)1892 786211 EDITORIAL TEAM Lindsey Anderson, Alex Dahm,Lindsay Gale, Laura Hatton,Cristián Peters, Murray Pollok,

D.Ann Shiffler, Chris Sleight,Helen Wright, Euan Youdale

EDITORIAL DIRECTOR Paul Marsden BSc

LAW & CONTRACTCORRESPONDENTVirginie Colaiuta

CECE REPORT Produced in co-operation withthe Committee for EuropeanConstruction Equipment

FIEC REPORT Produced in co-operation with theEuropean Construction IndustryFederation

PRODUCTION AND

CIRCULATION DIRECTOR Saara Rootes

PRINT & DIGITALPRODUCTION MANAGER Ross Dicksone-mail: [email protected] tel: +44 (0)1892 786245

DESIGN MANAGER Jeff Gilbert

EVENTS DESIGN MANAGER Gary Brinklow

JUNIOR PR INT & D IGITALDESIGNER Mitch Logue

CIRCULATION MANAGER Helen Knighte-mail: [email protected] tel: +44 (0)1892 786244

FINANCIAL CONTROLLER Paul Baker

FINANCE DEPARTMENT Alison FiltnessGillian Martin

CREDIT CONTROL Josephine Harewood e-mail: [email protected] tel: +44 (0)1892 786250

PUBLISHER James King

OFFICE MANAGER/

EVENTS COORDINATOR Clare Grante-mail: [email protected] tel: +44 (0)1892 784088

SUPPORT SERVICES Julie Wolstencroft

BUSINESS DEVELOPMENTDIRECTORPeter Watkinson BA (Hons)

KHL TEAM

ADVERTISEMENT MANAGER David Stowe, UK Head OfficeDirect tel: +44 (0)1892 78 [email protected] Collett, UK Head OfficeDirect tel: +44 (0)1892 786219

[email protected] PearmanTel: +33 1 45 93 08 [email protected] Fabio Potestà Tel: +39 010 570 [email protected] Posener, UK Head OfficeDirect tel: +353 86 043 [email protected], FINLAND, DENMARK, NORWAYPeter GilmoreTel: +44 (0)20 7834 [email protected] Emre ApaTel: +90 (0)216 302 [email protected]

GERMANY, AUSTRIA,SWITZERLAND, BENELUX ANDEASTERN EUROPESimon Battersby, UK Head OfficeDirect tel: +44 (0)1892 [email protected]

Cathy Yao Tel: +86 10 6553 [email protected] JAPANAkiyoshi Ojima Tel: +81 (0)3 3261 [email protected] ParkTel: +82 2 730 [email protected]/CANADAMatt BurkTel: +1 312 929 [email protected]

Jonathan CerveroTel: +1 312 929 3247

[email protected] Williams Tel: +1 312 680 [email protected]

MEMBER OF

ISSN 0964–0665© Copyright KHL Group 2015

Volume 26 Number 8 NOVEMBER 2015


This issue is mailed on 4th November 2015. Subscription rates for 1 year:£205, €245, US$330. Subscription rates per single copy: £14, €18, US$25.For further information please visit www.khl.com

Circulation audited by BPA Worldwide

NEWS & BUSINESS 4

WORLD NEWS 9

FINANCE & CE BAROMETER 13

LAW & CONTRACT

17

FIEC 19

CECE 20

INTERVIEW: BAUMA 22

EQUIPMENT 45

ON THE COVER

The Bosporus road

tunnel in Turkey.

See the Tunnelling

feature starting

on p31

REGULARS

Falsework&formwork p38

Utilitiesp24

Baumainterviewp22

Tunnelling


THEMAGAZINEFOREUROPE’SCONSTRUCTIONINDUSTRY www.construction-europe.com

Volume 26 Number 9 A KHL GrouppublicationNovember2015

THEMAAGAAAAZZINEF R EUROPE’’S ONSTRUCC IONINDUSTRYT wwwwwwwww.constru i

p31

I N T H I S I S S U E

The paper in this magazine originates from timber that is sourced from sustainable forests, managed to strict environmental, social,and economic standards. The manufacturing mill has both FSC & PEFC certification, and also ISO9001 and ISO14001 accreditation.

KHL OFFICESUNITED KINGDOM HEAD OFFICEKHL GroupSouthfields, Southview Road, Wadhurst, East Sussex TN5 6TP.Tel: +44 (0)1892 784088 Fax: +44 (0)1892 784086 e-mail: [email protected]/ce

AMERICAS KHL Group Americas3726 East Ember Glow Way, Phoenix, AZ 85050, USA.Tel: +1 480 659 0578 Fax: +1 480 659 0678 e-mail: [email protected]

CHINA KHL Group ChinaRoom 768, Poly Plaza, No.14, South Dong Zhi Men Street,Dong Cheng District, Beijing 100027, P.R. China.Tel: +86 10 6553 6676 Fax: +86 10 6553 6690 e-mail: [email protected]

KHL SALES REPRESENTATIVES

UTILITIES 24Improved performance and comfort are

high on the priority list as the utilities

sector continues to boom. There has

been 64% growth since 2008. Fuel

economy and durability are also key

factors for success. Joe Malone examines

the latest features to hit the utilities

sector

TUNNELLING 31

High speed, conventional and metro rail

continues to be a major driving forcefor tunnelling across Europe. However,

road schemes are pushing forwards too,

according to the latest forecasts. Adrian

Greeman goes underground to find out

more

FALSEWORK & FORMWORK 38

The requirements for falsework and

formwork are almost endless, and so

the systems’ manufacturers need to be

flexible in order to achieve the higheststandards. Sandy Guthrie looks at some

recent projects around Europe to

discover what is new

FEATURES


4/524

NEWS


2015World Crane &

Transport Summit

(WCTS)

November 4-5, 2015

Amsterdam,

the Netherlands

www.khl.com/wcts

World Demolition

Summit

November 6, 2015

Amsterdam,

the Netherlands

www.demolitionsummit.com

2016World of Concrete

February 2-5, 2016

Las Vegas,

US

www.worldofconcrete.com

International Awards

for Powered Access

(IAPAS)

March 17, 2016

Madrid,

Spain

www.khl.com/iapa

Bauma

April 11-17, 2016Munich,

Germany

www.bauma.de

ESTA Awards of

Excellence

April 14, 2016

Munich,

Germany

www.khl.com/esta

Hillhead

June 28-30, 2016

Buxton,UK

www.hillhead.com

2017Samoter

February 22-25, 2017

Verona,

Italy

www.samoter.it

Smopyc

April 4-7, 2017

Zaragoza,Spain

www.feriazaragoza.es/

smopyc.aspx

EVENTS DIARY Eiffage chief passes awayChanges planned at French contractor as former chairman

steps back into old role on a temporary basis

The posts of chairman and CEO at Eiffage are to be

separated following the sudden death of Pierre

Berger last week.

Berger, who was chairman and CEO of French-based

contractor died of a heart attack at the age of 47. He

joined the company in 2011.

A committee chaired by director Thérèse Cornil has

been charged with finding a successor to Berger by the

end of February 2016.

A board meeting after his death decided to separate

the roles, with vice chairman and former chairman Jean-

François Roverato taking on the role of chairman again

for the time being. He recommended the appointment

of Max Roche as CEO, again until a permanent successor

is named. The board paid tribute to Berger, saying, “His

exceptional human and professional qualities were

crucial to the development of the group, improving its

profitability and advancing Eiffage shares.

“Pierre Berger was animated by an exceptional energy

and a passion for the group.”

He took over as CEO in July 2011, having previously

worked for another French contractor, Vinci.

Eiffage was Europe’s sixth-largest contractor, and

number three in France, in the CE -100 league table

this year.

Berger was a graduate of the Ecole Polytechnique and

of the Corps des Ponts & Chaussées. In 1991, he resigned

from the Corps des Ponts & Chaussées to form his own

engineering consulting firm, Sigmatec Ingénierie.

In 1995, he was appointed to head up SEFI, a subsidiary

of Ménard Soltraitment – itself a subsidiary of Freyssinet,

part of the Vinci group. In 1999, he was promoted to

CEO of Ménard Soltraitment, and became director of its

soils division in 2003.

He moved to Vinci Construction Grands Projets in

2004 as CEO and became its chairman in 2005. In 2007,

he was also appointed as deputy managing director

in charge of civil engineering at Vinci Construction

France, and in 2009 he assumed responsibility for the

group’s Central European subsidiaries and its oil andgas division.

He was appointed to the Vinci executive committee in

January 2010.

Xavier Huillard, Vinci chairman and CEO, said, “On

behalf of the Vinci Group and in a personal capacity,

I wish to extend my heartfelt condolences to Pierre’s

family and friends and to the 70,000 Eiffage employees.

“As he demonstrated during the years he spent with

the Vinci Group, Pierre was a man of exceptional energy

who was driven by a passion for our business activities

that is the hallmark of an outstanding leader.” ce

The Polish construction

industry is set for three

years of uninterrupted

growth, according

to market research

company, PMR.

Growth is said to reach

6% for 2015, despite

hopes of achieving

9% earlier this year.

It anticipates that the

industry’s performance

will be driven by

increased growth in the

second half of the year.

Predictions for 2016

are more optimistic,

with growth expected

to be 8%, meaning

output could reach

approximately PLN 101

billion (€24.8 billion).

On the other hand,

predictions for 2017 are

even stronger, driven

by a number of large-

scale road contracts. The

market may still expand

in 2018, but the company

believes growth will slow

down from 2019.

Importantly, in the

absence of mega

projects, such as those

required to hold the

Euro 2012 football

tournament, PMR does

not expect any dramatic

upsurge in investment

Growth predicted for Polandin the coming years, but

rather a stable stream of

new projects until 2022.

Figures show that civil

engineering construction

will remain the largest

market. It is expected to

represent 57.1% of total

construction output, and

its share will increase

at the expense of non-

residential construction,

predicted to be 30.6%.ce

APR acquisition Temporary power rental specialist APR Energy is to

be acquired by a private equity consortium in a deal

which values the company at £165 million (€229

million).

The Apple Bidco consortium, controlled by Fairfax

Financial Holdings, ACON Equity Management, and

Albright Capital Management, paid £1.75 (€2.43) per

share for the company.

On top of that, the consortium said it would supply

additional funding of US$200 million (€181 million)to recapitalise the company, around US$150 million

(€136 million) of which would be used to repay a

loan that APR Energy took out.

APR Energy reported a half-year loss after tax of

US$64.5 million (€56.5 million).


5/525

NEWS


■ REVENUE UPFrench-based Vinci’s

contracting sector

revenue increased 1.6%

during the third quarter

of 2015, after falling

for the previous five

quarters. The growth

was driven by business

outside France, as well

as acquisitions at Vinci

Energies, according to

the company.

■ SALES SLIPSales at Manitou

dropped by 7% in the

third quarter to €273

million, compared to

the same period lastyear, buoyed by a 2%

sales increase overall

in the nine months

leading up to the end

of September. Order

intake also dropped

in the third quarter

to €189 million, from

€207 million in the third

quarter of 2014.

■ CAT DECREASECaterpillar has recorded

revenues of US$11.0billion (€9.95 billion)

for the third quarter

of 2015 – a decrease

of US$2.5 billion (€2.2

billion) from the same

quarter last year. It

claimed to have a

“strong” balance sheet,

which was “important in

these difficult times”.

■ Q3 SQUEEZEManufacturer Wacker

Neuson reported recordrevenues of €1.02 billion

for the nine months to

the end of September,

up 8.7% year-on-year,

while earnings before

interest and taxes (EBIT)

fell 21.5% to €81 million.

For the third quarter,

revenues were down

4.4% year-on-year to

€311 million, while

EBIT sank 61% to €15.5

million.

■ SOFT MARKETS Terex’s revenues for

the third quarter of the

year were down 9.3%

on the same period last

year to US$1.64 billion

(€1.48 billion). The

company’s net profit for

the quarter fell 32.1% to

US$43.6 million (€39.4

million). In the year to

date, Terex’s revenues

were 10.1% lower than

for the first nine months

of 2014, at US$4.97

million (€4.49 million).

Its net profit was some

45.9% lower at US$129

million (€116.7 million).

■ IMPROVEMENTSandvik Construction’s

revenues for the third

quarter of the year fell

15% compared to thesame period last year, to

SEK 2.04 billion (€217.1

million). However,

there was a turnaround

in profitability, with

operating profit hitting

SEK 99 million (€10.5

million), compared

to just SEK 1 million

(€106.4 million) a year

ago.

■ CONTRACTS BOOM

UK-based Carillion hassecured contracts worth

£1.7 billion (€2.2 billion)

since June 30, 2015.

In UK construction,

Carillion has secured

contracts expected to

be worth £311 million

(€419 million), which

includes the A14

upgrade being carried

out by a Carillion joint

venture for Highways

England, estimated to

be worth some £146million (€196 million).

■ GLOBAL DEMANDVolvo CE has

announced that net

sales for the third

quarter of 2015 are

down 6%. It said global

demand was the cause.

The fall equates to SEK

11,884 million (€1.2

million), compared with

the SEK 12,582 m (€1.3

million) drop in thesame period last year.

It said it has at least

grown in its share of

the market for larger

machines.

BUSINESS NEWS

YIT in Russian restructuringFinnish-based contractor YIT has restructured its operations in Russia and has

estimated €10.4 million of non-recurring costs for the third quarter of 2015.

The company has said it will reduce its risk level in Russia by scaling down its

production, but will continue to operate in all current locations, which it said would

ensure greater flexibility to maintain cost-efficiency and competitiveness. The

structure of YIT’s Russian operations will also be revised.

From 2016, the business will be split into St Petersburg, Moscow, and other Russian

regions. In addition, a new business unit for YIT Service Russia will be established

to exploit the opportunities in serving its 20,000 customers, the company said. The

business unit is responsible for the maintenance of YIT projects in all operating

cities. All live projects will continue as planned.

The company will reduce fixed costs related to the Russian operations to match

the decrease in sales and production. The number of employees is estimated to

decrease by a further 200. The company targets savings of €10 million between

now and January 2016.

A €2.7 million non-recurring cost will be recorded in the third quarter of 2015, as a

result of its restructure. In addition, it recognises a further €7.7 million impairment

charge in the third quarter of 2015, as a result of its development costs for projects

in the Moscow region.

German-based Bilfinger

has announced it will

restructure the company,

following a review by its

executive board.

The German contractor

will look at services,

industries and markets

in two independent

segments – industrial,

and building and facility. The board decided

there was no link

between the industrial,

and building and facility

sectors, and therefore

agreed to operate them

as two segments, as it

said this would allow

each greater freedom

as a result. It said the

freedom would help each

segment become more

focused on its strengths.

The board also identified

UK-based Great Western Developments hasannounced development proposals for 31London Street, next to London’s PaddingtonStation, to help with the arrival of the Crossrailrail project in 2018. The proposal is for 200 newhomes, more than 150,000m² of new officespace, and approximately 50,000m² of retail,restaurants, and cafés. A planning applicationwill be submitted later this year, according tothe company. London Paddington Station ispredicted to become London’s fourth busiest

station, with the arrival of Crossrail, it said. SellarProperty Group, the development partner forthe proposed development, and architects RenzoPiano Building Workshop, have designed over0.5ha of development to complement LondonPaddington Station.

Bilfinger reorganisationareas with an output of

approximately €1 billion

which would no longer

be part of the core

business.

Bilfinger restructured its

executive board in July,

prompting changes in

the company’s outlook.

The company now

focus its industrialsegment on its profitable

markets in central and

northern Europe, with

the goal of becoming

the leading industrial

services provider in these

regions. The focus for

its building and facility

segment will be on real-

estate services.

It said the new strategy

was based on three

objectives – increasing

profitability, improving

cash conversion and

reducing complexity.

Bilfinger appointed

Per Utnegaard as its

new chairman of the

executive board in April.

Utnegaard said,

“Bilfinger is facing far-

reaching changes. We

will focus our business

from three to twosegments, concentrate

activities that are

currently spread

around the globe on

our home market of

Europe, and replace a

complex structure with

a transparent and fast-

moving organisation.

On the basis of this

strategic repositioning,

we will sustainably

increase Bilfinger’s

profitability.” ce

P I C T U R E C O U R T E S

Y O F R E N Z O P I A N O B U I L D I N G W O R K S H O P


6/526

NEWS


Demolition Summitthis month

The 2015 World Demolition Summit, the seventh

outing for this annual event for the global

demolition industry, is being held this month, and

the venue for this year’s event will once again be

the NH Grand Hotel Krasnapolsky in the heart of

Amsterdam, the Netherlands.

The event is organised by CE sister publication

Demolition & Recycling International (D&RI)

Once again, the Summit will be made up of two

main components, the 2015 World DemolitionConference and the 2015 World Demolition Awards.

The 2015 World Demolition Conference will build

on the success of the six previous years’ gatherings

with a top level programme made up of a mix of

reports detailing how some of the most challenging

demolition projects from around the world were

successfully carried out, along with papers covering

more general topics of specific interest to the world’s

demolition industry.

The keynote address will be given by David Sinclair.

As one of the founding fathers of the UK’s NFDC, an

EDA past president and an NDA board member, he

is among the best known “elder statesman” of the

industry on both sides of the Atlantic.Other speakers include Henrik Bonnesen of COWI,

Peter Craven of CDE Global, and Clinton Dick of

Liberty Industrial.

In Amsterdam, he will take as his topic A Life in

Demolition, where he will touch on some of the

more momentous developments and incidents that

the industry has seen and take a look into the future

of the industry.

The 2015 World Demolition Awards will once again

celebrate the best that the demolition industry has

provided its clients in the construction sector over

the period from June 2014 to June 2015.

A shortlist has been produced by

the international judging panel. Thiscan be seen by visiting www.khl.com/

events/exhibitions, or by scanning

the QR code.

KHL.COM

This month’s podcast for Construction Europe

will be available online within a few days of the

magazine’s publication. To listen, go to:

www.khl.com/audio-podcasts

Consortium signedup for major UK

nuclear projectChinese to provide backing for €25 billionproject at Hinkley Point in England

A Laing O’Rourke and Bouygues consortium (BYLOR) has signed the main

construction works contract for the £18 billion (€24.5 billion) Hinkley Point C

nuclear project in Somerset, UK.

BYLOR has spent the last four years completing the civil works for the nuclear power

station, which is run by French-based EDF Energy, and its Chinese partner, the state-

owned China General Nuclear Corporation (CGN) which agreed to pay £6 billion

(€8.3 billion) following a visit to the UK by the Chinese President Xi Jinping.

Martin Westbury, BYLOR project director, said, “We have cemented a truly collaborative

working relationship between BYLOR and EDF, so that we can look forward to theincrease in project activity with confidence.”

A Balfour Beatty and NG Bailey joint venture has been appointed for the power

station electrical package in a £460 million (€630 million) contract, while a Kier BAM

joint venture has been chosen to provide the enabling works for the project, worth

some £203 million (€278 million).

Bam Nuttall and Kier are also waiting to start on the £100 million (€137 million)

earthworks contract which was wound down earlier this year pending financial

approval for the project, according to EDF.

The appointments have been made following EDF and CGN sealing a funding deal

which sees EDF take a 66.5% stake in Hinckley, with CGN taking a 33.5% share.

EDF confirmed the final investment decision, which it claims will allow construction

to start within weeks. ce

Healthy forecast for Sweden The Swedish construction

industry will be worth

SEK 559.5 billion

(€60.3 billion) by 2019,

according to Timetric’s

Construction Intelligence

Centre (CIC).

Residential and

commercial markets

will drive growth,

and increasing publicand private sector

investments, disposable

income, and a growing

population will provide

an extra boost for the

industry, reports CIC.

It is expected to record

a 2.49% annual growth

rate over the forecast

period of 2014 to 2019,

down from 3.37% during

the review period. As

a result, the industry ’s

value is said to increase

by SEK 65.4 billion (€7.05

billion) by 2019. However,

CIC noted that uncertaineconomic developments

in the Eurozone and poor

economic growth in

Norway and Finland will

impact on the industry ’s

development.

Residential was the

largest market worth

around 46% of the

industry’s total value

in 2014. The decline in

mortgage interest rates

along with an increase in

disposable resulted in an

increase in demand for

housing of 3.33%.

Commercial accountedfor around 17% of the

industry’s total value

in 2014 and was the

second-largest market in

the overall construction

industry. ce

Work at Hinkley Pointwill start within weeks


7/52TOUGH WORLD. TOUGH EQUIPMENT.

START EXPLORINGWHAT EXTREMEDUTY CAN MEANTO YOU

START EXPLORING AND BE AMONG THE FIRST TO SHARE YOUR STORY

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T +31 (0)36 529 0006


8/52


9/529

WORLD NEWS


CHINA

Chinese manufacturer LiuGong has partnered with

a new dealer in France, DiviMat, and has outlined

plans to introduce what it called “value for money”

machines to the French market. At a customer

demonstration event in October, LiuGong said it

showcased EU Tier IV-compliant excavators, wheeled

loaders and dozers. President of LiuGong Europe

Yuanxiang Xiao said, “We are introducing a new value

proposition on a pretty saturated market, and that

hasn’t happened in France for decades. Robustly

establishing the brand positioning will be crucial."

BRAZIL

The Brazilian construction market will see limited

growth over the next five years, according to

Timetric’s Construction Intelligence Centre (CIC).

It says the deteriorating economy, a weak property

market, and a lack of investor confidence will be the

reason for its shortfall. The industry’s output valuefell from US$226.3 billion (€204.8 billion) in 2013, to

US$214.9 billion (€194.5 billion) in 2014. This was

due to a budget deficit and the ‘Operation Lava Jato’

(Operation Carwash), an investigation into corruption

at the state oil company, Petrobras. This resulted in

low confidence and a delay in projects.

CHINA

China has leapfrogged the US to become the world’s

richest country in built assets, according to a new

report. Published by design and consultancy Arcadis,

the report estimates the built asset wealth of China

at US$47.6 trillion (€43.1 trillion), significantly greater

than the estimated US$36.8 trillion (€33.3 trillion)of the US. Produced by the Centre for Economics

and Business Research (CEBR), the Global Built Asset

Wealth Index calculates the total wealth based in all

buildings and infrastructure that add to productivity.

DUBAI

Nakheel has awarded construction contracts worth

close to AED2.3 billion (€566.8 million), across three

of its major Dubai, UAE developments. The Dubai-

based developer – noted for ambitious reclamation

projects within the emirate, including the Palm

Islands, Dubai Waterfront and The World – has

confirmed builders for Deira Islands Night Souk, The

Circle Mall and Warsan Souk. The largest contract,awarded to United Engineering Construction LLC

(UNEC) for Deira Islands Night Souk and Boardwalk,

is valued at AED 1.17 billion (€288.3 million).

Ginco General Contracting LLC and Gulf Technical

Construction Company LLC were awarded the other

two contracts.

US

John L Garrison Jr has been appointed president

& CEO of Terex, effective from November 2. He

takes over from Ron DeFeo, who is retiring, but

will continue to serve as executive chairman until

the end of the year. Mr Garrison joins Terex from

Textron where he served as President and CEO of BellHelicopter. Prior to that, M. Garrison was President of

Textron’s Industrial Segment and E-Z-GO. He was also

President and CEO at Azurix Corporation and held

senior leadership positions at Case Corporation, and

served as an officer in the United States Army.

WORLD IN BRIEF SOUTH AFRICA

Two killed in temporaryfootbridge collapsePedestrian structure crashed down ontomajor Johannesburg M1 motorway

Two people were killed after a temporary pedestrian footbridge over the M1

motorway in the Sandton suburb of Johannesburg, South Africa collapsed

around 3.40 pm on October 14. Several other people were injured.

The structure – described as being made of scaffolding and formwork - was part of

a project being undertaken by contractor Murray & Roberts’ Infrastructure & Building

business.

Several investigations are underway into the cause of the collapse, including an

internal investigation by Murray & Roberts.

The M1 was closed for about 24 hours following the incident to attend to the injured,

clear debris and gather evidence for the investigations. The cause of the collapse is

not yet known.A statement from Murray & Roberts said, “At this stage, we do not have any

information on the cause or causes of the incident. We also do not want to speculate

on possible causes.” ce

MEXICO

Cemex sales increase 5%

SAUDI ARABIA

Riyadh Metro breakthrough

was an increase of 5%

compared to the same

period last year.

Its US operation sales

increased 9% to US$1.09

billion (€986.8 million),while its revenues

decreased 17% to US$669

million (€605.8 million). In

Northern Europe,

sales decreased 21%

to US$829 million

(€750.6 million), and its

Mediterranean sales fell

5% to US$348 million

(€315.1 million).

Finally, its South,

Central America and theCaribbean sales decreased

19% to US$476 million

(€430.9 million), while

its sales in Asia saw a 7%

increase to US$162 million

(€146.6 million). ce

Cemex recorded net

sales of US$3.7 billion

(€3.3 billion) for the third

quarter of 2015 – an

increase of 5% from the

same period last year. The company’s

earnings before interest,

taxes, depreciation and

amortisation (EBITDA)

reached US$677 million

(€603.8 million), which

When complete in

2018, the network will

comprise 176 km of

lines and 85 stations

The FCC-led FAST

consortium has broken

through on the firsttunnel section of line 5

(green line) of the Riyadh

Metro in Saudi Arabia.

The consortium is also

responsible for lines 4

and 6 of the project.

The 1.2 km tunnel

was completed using a

tunnel boring machine

(TBM). Excavation of the

tunnel began on June

30 at the new central

office for the Ministry

of Education. Work willnow continue on the

north section of line 5 to

take it to Riyadh Airbase

Roundabout, completinga 5 km section of the

line. A further 12.9 km

tunnel on line 5 is being

excavated by a second TBM. ce


10/5210

WORLD NEWS


INDIA

bC India, which has seen three trade shows since

2011, has changed its name to Bauma ConExpo

India, and will be held at a new venue. The change

was made following a joint decision between Messe

München and AEM – the two partners for the show.

The fourth International trade show for construction

machinery, building material machines, mining

machines and construction vehicles will take place

between December 12 and 15 next year, at the Huda

Ground in Delhi. The last trade show attracted 26,018

visitors from 25 countries.

TANZANIA

Construction is underway on the US$10 billion (€9.05

billion) Bagamoyo port in Tanzania. The multi-phase

project – to include the port and a special economic

zone – will dwarf the country’s current main port

at Dar es Salaam, 75km to the south, as well as East

Africa’s current largest port in Mombasa, Kenya.According to government officials, the first phase of

Bagamoyo port will have capacity to host container

vessels of up to 8,000 twenty-foot equivalent units

(TEUs). President Jakaya Kikwete said the port’s

construction would help the government achieve

bringing about “an industrial revolution in Tanzania”.

CANADA

The criminal case against SNC-Lavalin for alleged

corrupt activities in Libya will be heard in Montreal,

Canada in February 2016. Charges were originally laid

against SNC-Lavalin this February. The trial had been

due to resume last week, having been postponed

from July while both sides sifted through evidence. The reasons for the latest postponement were not

given. SNC-Lavalin is charged by the Royal Canadian

Mounted Police (RCMP) with paying bribes totalling

CA$ 47.7 million (€32.6 million) to government

officials in Libya and also defrauding construction

clients of as much as CA$ 129.8 million (€88.7 million).

The offences are said to have taken place between

2001 and 2011 in Libya.

PANAMA

The project to increase the capacity of the Panama

Canal is 95% complete, according to the contractor

consortium Grupo Unidos por el Canal (GUPC). The

group said the structures were being tested ahead ofthe planned opening in April next year. The project

has taken seven years and 100 million working hours

according to GUPC, which comprises Sacyr of Spain,

Salini Impregilo of Italy, Jan de Nul of Belgium and

Cusa of Panama.

UAE

A joint venture between two UAE-based contractors,

Trojan General Contracting and National Projects

& Construction, have won the AED 819 million

(€201.9 million) contract to build the Palm Tower on

the Palm Jumeirah artificial archipelago in Dubai,

UAE. The client for the 52-storey, five star hotel and

residential complex is developer Nakheel. The Palm Tower will comprise 504 luxury residences. Prices for

these start at AED 1.7 million (€419,000) for a studio

apartment. The hotel will occupy the first 18 floors of

the building, and it will have a variety of dining and

leisure facilities, including a rooftop infinity pool.

WORLD IN BRIEF

QATAR

Football World Cup

work to beginConstruction set to start before the end ofthis year on Al Bayt Stadium

Construction will be underway before the end of the year on the 60,000-capacity Al

Bayt football stadium in Qatar, according to the development’s project director.

Located in Al Khor City, 50km north of Doha, Al Bayt has been earmarked as

one of the Fifa World Cup 2022 quarter-final venues.

Dr Nasser Hamad Al Hajeri, overseeing the development of the stadium, said, “We

expect the first concrete activity to take place before the end of this year.”

The latest renders of the complete stadium have now been released, confirming that

the design will recall a traditional Bedouin tent, with the shell of the structure made

from a coloured polytetrafluoroethylene (PTFE).

The 60,000-capacity of the stadium will fall to 40,000 following the World Cup, as thetop tier of seating will be removed. A shopping mall and wedding venue will also take

up residence within the stadium’s shell. ce

MIDDLE EAST

Middle East still booming

JAPAN

Hitachi downgrades forecast

construction projects

in hot-spot countries

like Saudi Arabia, Qatar

and the UAE, with some

truly ambitious schemes

underway. The current lull in

the oil price is also

reinforcing the region’s

need to diversify away

from hydrocarbons

and develop a broader

economic base, and

this too is providing

Tokyo Stock Exchange,

the company also cut its

sales forecast by 3.7%

to 780 billion yen (€5.8

billion).

In the first half of the

some impetus to the

construction sector.

An example of this

is the Kingdom City

development on Saudi

Arabia’s Red Sea coast.Located between central

Jeddah and the city’s King

Abdulaziz International

Airport, the 2km2

development will include

homes for 210,000

residents, business

premises and shops. ce

year, which ended in

September, net income

had reportedly fallen by

48%, while revenue was

said to be down by 6%,

according to Hitachi. ce

Oil and gas are the

mainstays of many

economies in the Arabian

Gulf.

So the current oil price

of less than US$50 (€45.2)per barrel, compared to

around USD$100 (€90.5)

two years ago, is having

a big impact on the

regional economy.

However, there is

still enough money

to drive investment in

Hitachi Construction

Machinery has slashed its

operating profit forecast

for the year to March by

44%.

In a statement to the

Artists impression of Al Bayt Stadium


11/52

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13/52

FINANCE

13CONSTRUCTION EUROPE NOVEMBER 2015

Shares rebounding

In contrast to September,

when share prices around

the world took a plunge in

the face of poor economic data

emerging from China, October

saw something of a rebound.

All the major indicators

around the world more than

recovered the ground they lost in

September, but remained some

way from the highs set in the

early summer.

Still, the gains were robust.German shares led the way, with

the DAX Xetra putting on some

10.72% between weeks 39 and

43.

This was closely followed by the

CAC 40, which climbed 9.68%.

Other indexes also did well – the

Dow was up 7.20%, the Nikkei

225 6.69% and the FTSE 100

5.89%.

The European construct ion

segment saw a similar

improvement, with the CET Index

for the whole industry gaining7.11% to take it to 194.76 points.

At this level, it was back to where

it was in late August – again,

regaining the ground which was

lost in September, although this

was also around its level at the

start of the year. The ups and

downs of 2015 have resulted in

no real net losses or gains in the

year to date.

The recovery was led by the

equipment sector, with the CEE

gaining 10.04% in value between

weeks 39 and 43.

However, this was the section

of the construction industry

which was hit hardest over thesummer, falling from an all-time

high above 300 points in April

to as low as 218 points in late

September. In other words the

sector lost about 30% of its stock

market value in the space of five

months.

So the rebound to 241.56

Company Currency Price Price Change Change

at start at end (%)

CEC Index 208.08 219.65 11.57 5.56%Acciona € 63.08 75.02 11.94 18.93%

ACS € 26.14 30.10 3.96 15.15%

Astaldi € 8.50 9.22 0.73 8.53%

Balfour Beatty UK£ 2.57 2.56 0.00 -0.16%

Ballast Nedam € 0.29 0.30 0.00 0.68%

Bam Group € 4.24 4.63 0.39 9.12%

Bauer € 17.07 18.71 1.64 9.58%

Bilfinger € 32.64 40.54 7.90 24.20%

Bouygues € 31.92 35.11 3.19 9.98%

Carillion UK£ 3.03 3.15 0.12 3.90%

Eiffage € 56.39 57.58 1.19 2.11%

FCC € 6.80 7.07 0.27 4.03%

Ferrovial € 21.57 23.12 1.55 7.19%

Hochtief € 76.02 82.20 6.18 8.13%Salini Impregilo € 3.49 3.69 0.21 5.91%

Keller Group UK£ 9.00 8.66 -0.35 -3.83%

Kier UK£ 13.83 14.12 0.29 2.10%

Lemminkäinen € 11.61 12.92 1.31 11.28%

Morgan Sindall UK£ 7.23 7.40 0.18 2.42%

Mota Engil € 1.99 2.08 0.09 4.62%

NCC (B) SEK 248.10 266.80 18.70 7.54%

OHL € 11.42 7.43 -3.99 -34.94%

Peab (B) SEK 57.90 63.25 5.35 9.24%

Sacyr Vallehermoso € 2.04 2.29 0.25 12.25%

Skanska (B) SEK 163.80 158.40 -5.40 -3.30%

Strabag SE € 20.40 21.01 0.61 2.99%

Taylor Wimpey UK£ 2.04 1.93 -0.11 -5.34%

Tecnicas Reunidas € 39.63 42.35 2.72 6.86%Trevi Group € 1.05 1.30 0.25 23.31%

Veidekke NOK 97.50 104.00 6.50 6.67%

Vinci € 57.60 59.90 2.30 3.99%

YIT € 4.91 5.37 0.46 9.37%

Period: Week 39 - 43

points at the end of week 43

was welcome, but the sector still

looks weak. It is still in in a low

area, and is back to the kind of

levels not seen for two years or

so.

And the rebound was all the

more surprising given some of

the financial results which have

come out.

Third quarter results season

was just starting as CE went to

press, and the first to reportwas Caterpillar, which is the

bellwether for the sector.

Its results did not make for very

cheery reading. Revenues were

down 19% from the same period

last year and net profit was 62%

lower, although some of this

was due to one-off restructuring

CONTRACTORS

EQUIPMENT MANUFACTURERS


at start at end (%)

CEE Index 219.52 241.56 22.04 10.04%

Astec Industries US$ 34.39 31.95 -2.44 -7.10%

Atlas Copco (A) SEK 194.20 221.70 27.50 14.16%

Bell Equipment ZAR 8.50 8.70 0.20 2.35%

Caterpillar US$ 64.98 70.88 5.90 9.08%CNH Industrial € 5.89 6.16 0.27 4.59%

Deere US$ 75.81 79.35 3.54 4.67%

Doosan Infracore WON 6660 6740 80 1.20%

Haulotte Group € 13.11 12.82 -0.29 -2.21%

Hitachi CM YEN 1612 1941 329 20.41%

Hyundai Heavy Industries WON 97500 99000 1500 1.54%

Kobe Steel YEN 144 156 12 8.33%

Komatsu YEN 1805 2036 231 12.80%

Kubota YEN 1702 1867 165 9.69%

Manitou € 15.90 13.78 -2.12 -13.33%

Manitowoc US$ 15.16 15.11 -0.05 -0.33%

Metso € 17.96 21.71 3.75 20.88%

Palfinger € 23.11 25.20 2.09 9.04%

Sandvik SEK 68.40 78.65 10.25 14.99%Tadano YEN 1392 1424 32 2.30%

Terex US$ 17.16 19.12 1.96 11.42%

Volvo (B) SEK 79.80 89.80 10.00 12.53%

Wacker Neuson € 13.03 12.20 -0.83 -6.33%


Share prices around the world improved in October, despite some

downbeat third quarter financial results towards the end of the month

All the major

indicators aroundthe world more

than recovered

the ground

they lost in

September, but

remained some

way from thehighs set in the

early summer


14/52

FINANCE

14 CONSTRUCTION EUROPE NOVEMBER 2015


at start at end (%)

CEM Index 141.26 148.68 7.42 5.25%

Buzzi Unicem (Ord) € 14.95 15.53 0.58 3.88%

Cemex (CPO) MXP 11.87 11.61 -0.26 -2.19%

Cimpor € 0.62 0.60 -0.02 -2.90%

CRH € 24.50 25.33 0.82 3.37%

Heidelberg Cement € 62.10 66.25 4.15 6.68%

LafargeHolcim € 46.98 50.55 3.57 7.60%Italcementi € 9.97 10.17 0.20 2.01%

Kone (B) € 32.98 37.70 4.72 14.31%

Saint-Gobain € 38.56 39.11 0.56 1.44%

Schindler (BPC) CHF 141.50 152.10 10.60 7.49%

Schneider Electric € 50.32 53.41 3.09 6.14%

Titan Group (Common) € 19.56 20.31 0.75 3.83%

Vicat Group (Common) € 57.19 57.97 0.78 1.36%

Wienerberger € 16.04 17.20 1.16 7.26%

Wolseley UK£ 41.97 37.88 -4.09 -9.75%


MATERIALS PRODUCERS

results announcement. The

fact that its share price went

up following the Q3 figures,

bringing up other companies in

the CEE Index perhaps says that

the figures were not as bad as

investors had expected.

CONTRACTORS The growth for contractors’ share

prices was more measured, with

the CEC Index rising 5.56% over

the four-week period.

One of the stand-out

performances was from Bilfinger,

which was up 24.30% on the

news of a new restructuring plan.

The company plans to focus

on just two areas – industrial,

and buildings & facilities

management. It also said there

it had businesses with annual

commodity prices. However, the

Construction Industries segment

was also down, reflecting an

overall slowdown in business.

But having broken more bad

news earlier in October, with

the announcement of a US$1.5

billion restructuring programme,

which could see 10,000 job

losses globally, Caterpillar had

prepared the ground for its

sales of about €1 billion which

did not fit into either category,

and it would look at the options

for these.

Other strong climbers in

October were Acciona, ACS,

Lemminkainen, Sacyr and Trevi,

three of which are Spanish

contractors.

However, the biggest faller

during the month was Spain’s

OHL, which lost 34.94% of its

value. The slump came in week

43 as the company announced

that two of its concession

businesses, Aeropistas SLU

and Autopista Eje Aeropuerto

Concesionaria Espanola SAU

had gone into liquidation. The

company operates the M-12

toll road linking Madrid with its

Barajas Airport.

It feels increasingly like China is

having a hard, rather than soft

economic landing, so the question

now is when it will reach the low

point, and whether this will be

triggered by some sort of crisis

costs. What’s more, the company

says its revenues will fall another

5% next year from 2015 levels.

Much of this is due to the

downturn in Caterpillar’s

Resources Industries business,

which sells equipment to the

mining, and oil and gas segments.

Low commodity prices here are

deterring capital investments

in the face of weak global

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15/52

FINANCE

15CONSTRUCTION EUROPE NOVEMBER 2015

More wobbles

September saw a bounce-back in European

construction activity from the seasonal

summer lull, but rather than

strengthening further, results of

the October CE Barometer survey

showed shakiness in the market.

A positive balance of just +1.2%

of respondents said activity levels

in October were higher than in

September. That compares to a

figure of +10.5% in September for

the same measure of confidence.

The balance figure is the percentage of

positive responses minus the percentage

of negative responses. A positive figure

indicates growth, a negative one contraction.

However, respondents to the survey remained bullish about

future prospects. A resounding balance of +34.9% said theyexpected activity levels to be higher in a year’s time than now. This

was on a par with September’s figure of +38.7%.

But back on the down side, survey respondents said they were

less busy this October than a year ago, with a negative balance of

-8.1%. This was the first time since March that the CE Barometer has

indicated a drop in the market.

These mixed results pulled down the overall CE Climate figure

to +9.3%. Although it remained well in positive territory, this was

the lowest it has been since March. Its weakness reflects the mixed

picture in Europe during October as far as construction markets

were concerned. ce

CE BAROMETER

help businesses, because a

low Euro would make exports

cheaper and/or more profitable

on foreign markets.

OUTLOOKWith expectations for global

economic growth now looking

a little bleak, share prices could

stay in the doldrums for some

time.

Arguably the key to it all is the

Chinese economy. One school ofthought is that China has sneezed

and the world has caught a cold.

However, if growth returns to this

economic powerhouse, it will

start to consume more goods

(from Europe) and commodities

(from emerging markets) and

the global picture should turn

around.

It feels increasingly like China

is having a hard, rather than

soft economic landing, so the

question now is when it will

reach the low point, and whetherthis will be triggered by some

sort of crisis.

There are certainly concerns

about bad debts in the Chinese

TAKE PART The survey, which takes just a one minute to complete, is open to

all construction professionals working in Europe. The CE Barometer

survey is open from the 1st to the 15th of each month on our

website.

■ Full information can be found at www.cebarometer.eu

R E C E S S I O

N

BOO M

U P

T U R N

D O W

N

T U R

N

banking system, and that these

link back to an unsustainable

real estate bubble. It has

uncomfortable parallels with the

US sub-prime mortgage crisis of

the mid 2000s, which ultimately

triggered the global economiccrisis.

However, that is the most

pessimistic view. In addition,

Chinese banking is smaller and

Meanwhile, the materials sector

saw more measured growth, with

the CEM Index rising 5.25% to

169.18 points. The stand-out

performance came from escalator

and elevator manufacturer Kone,

which was up 14.31% over the

four week period.

This was linked to some major

orders announced in October,

along with the announcement of

its third quarter results in week

43.Most of the other companies

in the CEM Index saw fairly

subdued single-digit share price

movements.

The only exception was UK

building materials merchant

Wolseley, which warned of a

slowdown in its domestic market

at the start of October.

This prompted a near 10% net

decline in its share price over the

course of the month.

CURRENCIESOctober saw the Euro generally

lose value. It was down 2.01%

against the UK Pound between

weeks 39 to 43, with more

moderate losses against the

other major reserve currencies.

It also lost ground against many

other European currencies, most

notably the Norwegian Krone.

Part of this was due to hints from

the European Central bank (ECB)

that it would try more stimulus

measures such as interest rate

cuts or more quantitative easy tolift the Euro-zone economy.

Both would tend to lower the

value of the Euro – indeed, the

currency seems to have fallen

just on the hint of such measures

– and this is one way they would

Index Beginning End Change Change

of period of period (%)

CEE (Equipment) 219.52 241.56 22.04 10.04%

CEM (Materials) 161.48 169.18 7.69 4.76%

CEC (Contractors) 208.08 219.65 11.57 5.56%

CET (Total) 190.84 203.89 13.06 6.84%

Dow 16315 17489 1174 7.20%FTSE 100 6066 6423 357 5.89%

Nikkei 225 17645 18825 1180 6.69%

CAC 40 4439 4869 430 9.69%

DAX Xetra 9612 10643 38 10.72%


KEY INDEXES

RESERVE CURRENCIES

Beginning End Change Change

of period of period (%)

British Pound 0.7358 0.7210 -0.0148 -2.01%

Japanese Yen 134.47 133.69 -0.78 -0.58%

Swiss Franc 1.0958 1.0811 -0.0147 -1.34%

US Dollar 1.1175 1.1104 -0.0071 -0.64%

EUROPEAN CURRENCIES

British Pound 0.7358 0.7210 -0.0148 -2.01%

Bulgarian Leva 1.9558 1.9522 -0.0036 -0.18%

Czech Koruna 27.260 27.060 -0.2005 -0.74%

Danish Krone 7.4599 7.4592 -0.0007 -0.01%

Hungarian Forint 314.38 309.62 -4.7610 -1.51%

Norwegian Krone 9.5712 9.2030 -0.3682 -3.85%

Polish Zloty 4.2217 4.2447 0.0230 0.54%

Romanian Lei 4.4080 4.4211 0.0131 0.30%

Swedish Krona 9.4403 9.4028 -0.0375 -0.40%

Swiss Franc 1.0958 1.0811 -0.0147 -1.34%


VALUE OF €1

more insulated from the global

system than the US banks were

and are.

So any major credit crunch

would probably be limited to

China. This would still be bad

news, but not on the scale of theLehman Bros collapse. ce

Any major credit

crunch would

probably be

limited to China.

This would still

be bad news, butnot on the scale

of the Lehman

Bros collapse


16/52

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LAW AND CONTRACT

world to address the realities of

modern long- and mid-range

contracts, and a new set of Rules

were released on 1 October, 2015.

Among the introductions to

the revised Rules (2015 Rules)not contained in the 2004 Rules

concerns dispute avoidance.

A notable introduction in the

2015 Rules is the emphasis on

dispute avoidance as part of the

basic function of a DB. It provides

that, on perceiving a potential

disagreement, the DB may

identify the disagreement and

encourage the parties to resolve

it on their own without further

involvement of the DB.

If avoiding the dispute is

impossible or the disagreementtoo entrenched, the DB can

intervene with informal

assistance to help the parties

resolve the matter by agreement,

or determine the dispute through

a recommendation or a decision

issued after a procedure of formal

referral.

Another new Rule is the

prohibition of informal assistance

on a formal referral. The 2015

Rules make express provision

prohibiting all forms of informal

assistance by a DB on a formalreferral. A DB is not allowed to

engage in informal conversation

or to attend separate meetings

with the parties, in respect of

any of the issues covered by the

referral.

The essence of this Rule is to

maintain the integrity of the

process, given that a formal

referral requires the DB to act in

a judicial capacity.

The appointment of expert/

issue of interim or conservatory

measures is another new

addition.

DB POWER

Specific provision has been

made in the 2015 Rules

empowering the DB to appoint,

in agreement with the parties,

one or more experts to give

evidence. The DB can also issue

provisional reliefs such as interim

or conservatory measures, as

may be required during the DB

process.

Provisional reliefs are made to

protect the DB process and tofacilitate the enforcement of a

binding conclusion.

Under the 2015 Rules, a DB

has the power to extend time

for issuing a conclusion, even if

the parties are unable to agree

to the extension. The extension,

however, must be within the

shortest possible time and must

not exceed 20 days in total.

The decision of the DB being

final is new, too. The 2015 Rules

provide for certain circumstances

in which a binding conclusion of aDB shall become final – the effect

being that the dispute cannot

be open to contest in future by

either of the parties.

A decision issued by a DAB

is ordinarily binding on the

parties, as parties are required

to comply with the decision,

notwithstanding any expression

of dissatisfaction. A binding

decision of a DAB, however,

becomes final if no expression of

dissatisfaction is issued within 30

days of its receipt.Compliance with a

recommendation of a DRB is

initially voluntary. However, a

recommendation also becomes

binding and final if no expression

of dissatisfaction is issued by

the parties within 30 days of its

receipt.

The 2015 Rules eliminate

common procedural challenges

to the enforcement of conclusion

issued by a DB, as it disallowsobjections on the merits as a

defence to non-compliance with

any conclusion in enforcement

proceedings before an arbitral

tribunal or court.

It also disallows any objection

relating to a requirement

on a party first to refer non-

compliance with a conclusion

to the DB, prior to starting

enforcement proceedings before

an arbitration or court. The effect

of this provision is to facilitate

the enforcement of a bindingconclusion.

Under the 2004 Rules, the

inability of parties and DB

Members to agree on fees was a

major reason for delay in setting

up a DB process. This concern

has been addressed by the 2015

Rules, as it empowers the ICC

Centre to fix the fees, if parties

are unable to agree. The parties

are bound by the Centre’s

determination on fees and the

DB Members can either accept

the determination or decline theappointment.

The filing fee for the registration

of a DB member and a request

for a review of a decision by the

Centre have been increased from

US$2,500 (€2,270) to US$3,000

(€2,720). Also, a request for the

Centre to fix the fees of the DB

Members attracts a filing fee of

US$3,000. All other administrative

charges as contained under the

2004 Rules remain the same.

These introductions to the

Rules are commendable, astheir implementation will aid

parties to avoid dispute, facilitate

the enforcement of a binding

conclusion and make a DB a more

attractive means for resolving

construction disputes. ce

Introduction to the ICC

Dispute Board Rules

Pinsent Masons LLP is the world’s leading construction law firm

with a true infrastructure and energy sector focus. Pinsent Masons

LLP is ranked No 1 for construction law by all legal directories in theUK. It is an international law firm with offices across Europe, the Gulf

and Asia.

■ For more information on any legal or contractual issue, please

contact Virginie Colaiuta at [email protected]

or +44 (0)20 7490 6498.

With a new set of Rules just out, Danielle Griffiths, solicitor at Pinsent Masons,

and Ngo Martins Okonmah, associate of Aluko & Oyebode (on secondment at

the London office of Pinsent Masons), take a look

A Dispute Board (DB) is a

standing body comprised

of one or three DB

members, typically set up at the

signature or start of performance

of a mid- or long-term contract,and are used to help parties

resolve any disagreement or

dispute that may arise during the

implementation of the contract.

DBs are commonly used in

construction projects.

Under the ICC Dispute Board

Rules, parties have a choice

between three different types

of DB, each distinguished by the

type of conclusion it issues on

a formal referral by the parties.

Dispute Review Boards (DRB)

issue recommendations, whichare not immediately binding on

the parties. Dispute Adjudication

Boards (DAB), on the other hand,

issue decisions which must be

complied with immediately.

Combined Dispute Boards

(CDB) offer an intermediate

solution, as it normally issues

recommendations, but may issue

decisions if a party so requests

and no other party objects, or if

the DB so decides.

The Rules consist of a

comprehensive set of provisionsfor establishing and operating

a DB. They cover such matters

as the appointment of the DB

Member(s), the services they

provide and the compensation

they receive.

Recently, the Rules were revised

under the guidance of experts

from multiple fields around the


18/52

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19/5219

FIEC


Juncker plan to give

more opportunities

FIEC

Avenue Louise 225,

B - 1050 Brussels, Belgium.

Tel: +32 2 514 55 35;

e-mail: [email protected]

www.fiec.eu

€315 billion will be injected into the EU’s economy by 2017 as part of a

three-fold plan by President Juncker to revive investment

A few months ago, we

reported on the brilliant

new vision that President

Juncker had elaborated in order

to revive investment in the EU

and come out of this gloomy

post-crisis situation.

The objective of this plan isto inject at least €315 billion

over the period of 2015 to 2017

into the EU’s economy. Based

on a guarantee brought by

the Commission, the European

Investment Bank (EIB) is expected

to secure investment and attract

private money into riskier

projects, without losing its triple

A rating.

In spite of this complexity, we

believe that contractors have

good opportunities ahead.

The first part of the plan is thenew European Fund for Strategic

Investments (EFSI), based on €5

billion made available by the

European Investment Bank and

a €16 billion guarantee from the

EU budget. In spite of criticisms

from many stakeholders,

including FIEC, part of this

guarantee has been taken from a

budget line already dedicated to

infrastructure.

The total EFSI fund of €21 billion

is expected to allow the EIB to

issue around €60 billion in bonds. That is then expected to trigger

a total of €315 billion in loans

over three years, of €240 billion

for long-term investment in

infrastructure and €75 billion for

SMEs and mid-cap companies.

In theory, the leverage effect

could achieve a ratio of 1:15,

where every Euro in public money

invested in the fund would raise

€15 in private investment. This

plan is not supposed to increase

Member States’ public debteither.

Indeed, it corresponds to the

general principle outlined by

Commissioner Pierre Moscovici

last year, where public money

would be used only where

necessary, and private money

would be mobilised as much as

possible.

The adoption of the EFSI by

the European Parliament and the

Council was very good news for

the construction sector, as most

priorities promoted by FIEC havebeen secured in the legislative

text.

SME SUPPORT

The new fund will benef it

infrastructure projects, notably

transport, energy, broadband,

and projects in the field of energy

efficiency. Support to SMEs is

also a clear target of the EFSI.

Interestingly, Juncker

encouraged Member States

to put money in the EFSI by

excluding it from the calculationof their public deficit. However,

as the EFSI does not foresee

any specific quote per sector or

country, this clearly restrained

the few Member States interested

from putting their own money

directly in it.

So far, only nine Member States

announced that they would

contribute to the plan, but only

at national level and mostly

via their national development

banks.

These inc lud e Ger many,up to €8 billion; Spain, up to

€1.5 billion; France, up to €8

billion; Italy, up to €8 billion;

Luxembourg, up to €80 million;

Poland, up to €8 billion; Slovakia,

up to €400 million; Bulgaria, up

to €100 million; and the UK, up

to €8.5 billion.

More recently, China has

declared interest in contributing

to the Juncker Plan. According

to the latest information, China

could invest between €5 billion

and €10 billion, but the detailson how this investment will

materialise remain unknown.

The second part of the Juncker

Plan is the creation of a European

Investment Advisory Hub (EIAH).

The EIAH aims to strengthen

Europe’s investment and business

environment by enhancing the

capacity of public and private

actors to structure financially

sound projects in order to bring

them to maturity.

As the issue of poor preparation

of projects was one of the barriersto investment pointed out by

FIEC, we can be happy that the

EIB took this aspect seriously.

The EIB states that it offers a

single access point for project

identification, preparation

and implementation, access

to finance, use of financial

instruments and capacity

building.

However, we do have

some concerns about the

implementation of this

hub. It appears that it will bedecentralised, involving various

experts’ teams within the EIB,

as well as national experts and

private consultants.

Moreover, the hub is neither

directly linked to the Juncker

Investment Plan, nor specifically

dedicated to benefiting from the

EFSI.

Finally, the third part of the

plan consists of a European

Investment Project Web Portal,

which should be operational in

January 2016.It might be remembered that,

last winter, Member States were

asked urgently to present their

wish list of projects, so that the

EU Institutions could promote a

pipeline of projects to investors.

However, it was made clear

that the near 2,000 projects

which came out of this exercise

would not automatically benefit

from the EFSI. At present, the

Commission stresses that the

web portal is just a promotional

tool for investment opportunitiesin the EU, but has no direct link

with the EU guarantee.

LIGHT SCREENING

The EIB explained that it would

undertake a very light screening

of the projects proposed,

before presenting them on the

web portal, but no in-depth

assessment which would

guarantee that the projects

presented on the portal would

benefit from the EFSI.

Consequently, it can bewondered whether project

promoters will still be interested

in having their projects presented

on the web portal, if they have no

guarantee of an efficient return.

All in all, the whole mechanism

presented in the framework of

the Juncker Investment Plan is

quite a complex one. And, for

now, it is still hard to respond to

contractors’ main questions.

For the bigger projects,

we understand that project

promoters should addressdirectly to the EIB “as usual” and

the EIAH is supposed to help

them. A specific assessment and

selection procedure is currently

being set up to determine which

projects will eventually get an EU

guarantee.

For SMEs and smaller projects,

we understand that it will remain

business as usual. Companies

are invited to go to their usual

intermediaries at national level

and find out what is available

for them.For smaller projects in

particular, the EIB encourages

grouping them together via

national investment platforms

to create a critical mass that is

more attractive for investors. ce


20/5220

CECE


Engineers are seeking

to improve efficiencysix construction equipment and

engine manufacturers, the most

promising technology available

was incorporated into a wheeled

loader.

The team engi neered a

new energy efficient hybrid

drive train for a 24 tonne classwheeled loader with 200kW

installed engine power. The

conventional drive train was

replaced by a diesel engine, a

power-split transmission for the

travel drive, a displacement-

controlled attachment drive

and a hydrostatic parallel hybrid

system.

The team demonstrated that

a 10% fuel saving is possible

compared to an efficient state-of-

the-art machine. The prototype

was presented to the public forthe first time earlier this year,

according to Oliver Koch and

Markus Schneider who spoke at

the CECE Summit, held in Brussels

in September.

There is a focus on automation

solutions for asphalt compaction

by the Department for

Agricultural Engineering & Mobile

Machinery of the University of

Applied Sciences, Osnabrück,

Gemany, and roller manufacturer

Hamm.

Compared to othertechnologies, the compaction

process has a comparatively

low degree of automation,

said Christoph Halbrügge, who

introduced the project. This is why

reliability on road construction

sites is dependent on the

knowledge of the operators

driving the machine. The aim

of the project is to improve the

efficiency and quality of the

construction process through

automated processes.

The young engineers havedeveloped an approach to

process algorithms that permit

automated machine guidance

behind the road paver. The

reliability and efficiency of the

process could be improved

significantly thanks to

standardised planning methods

and precise implementation of

the planning results.

Operator jobs will become

easier through the supporting of

planning and implementation.

Accelerating the operationprocess, cutting costs and

increasing the quality has also

helped develop the parallel-

to-surface (PTS) technology for

road construction. In the regular

operation of a milling process, it

is difficult for a machine operator

to visually judge the condition of

the milling machine.

PTS TECHNOLOGY The PTS technology developed

by Wirtgen ensures the machine

to road surface is parallel duringthe entire milling process. This

is possible because a defined

function is implemented in the

LEVEL PRO onboard levelling

system. Thanks to this, remaining

parallel is ensured even during

interruptions like lifting the

machine up above a manhole.

This is also good for the operator.

PTS helps to reduce the

complexity of work and therefore

minimises the risk of mistakes.

The PTS system has been

introduced successfully into themarket, according to René Müller,

who presented the project.

Customer feedback is also

positive for the pivoted drive unit

of a road milling machine which

was put on the market by Wirtgen

last year. Young engineer Tobias

Stinner was part of a team of four

engineers who set out to increase

the efficiency of the milling

process, improve the driver’s

comfort, the manoeuvrability of

the machine and the quality of

the work process.In order to be able to work

effectively in situations such as

a cramped site, or soft verges,

small milling machines need to

be able to turn, as well as having

an adjustable height travelling

CECE Secretariat

Diamant Building –

Bd A Reyers 80

B – 1030 Brusselswww.cece.eu

Tel:+32-2-706 82 26

Fax: +32-2-706 82 10

AEB

www.aebrus.ru

AGORIA

www.agoria.be

ANMOPYC

www.anmopyc.es

APCEMP

www.apcemp.pl

CEA

www.coneq.org.uk

CISMAwww.cisma.fr

COMAMOTER

www.comamoter.it

FMIB-CWM

www.fme.nl

IMDER

www.imder.org.tr

SACE

www.sace-se.org

SVSS

Teknologiateollisuus

www.techind.fi

UCOMESAwww.ucomesa.it

Unacea

www.unacea.org

VDMA

www.vdma.org/construction

September’s summit in Brussels saw seven engineers present their findings

and developments in the engineering of construction equipment

Machinery manufacturers

are striving constantly

to increase productivity,

operator comfort and enhance

energy effi ciency and compliance

to exhaust emission regulations.

Within the research project TEAM

– Green Wheel Loader, which iscarried out by a team from the

Technical University of Dresden,

Germany, in collaboration with

unit. The travel unit is connected

by a pivoting arm and can be

moved from an outer to an

inner position, to create what is

described as “a zero side of the

road milling machine”.

A separate actuator is no longer

necessary as it uses the traveldrive for the pivoting movement

of the drive unit. The W50Ri is the

first machine using this concept

on the market.

According to Wirtgen, durability

has been proved by machines

being in operation for more

than two years and the benefits

have been proved under jobsite

conditions.

Henry Hudson and Niall

McNamee, two engineers at

Caterpillar, ran a project to

increase fuel efficiency, machineperformance and component

life in pumps and motors, in

Caterpillar’s K series wheeled

loaders.

As part of the project, numerous

new electronic and hydraulic

components were used, such as

the electronic throttle pedal, the

hydraulic clutch, operator modes

and drive pressure sensors.

The new hardware also allows

the introduction of software

features such as eco mode. This

allows the operator to restrictthe engine to run within its most

efficient speed range, while still

being able to achieve maximum

run out speeds, therefore

reducing fuel consumption.

Closed loop proportional

speed control was implemented,

allowing the operator to set a

maximum speed limit as well

as giving the added benefit of

an extended life component.

Machines with this concept

are already on the market, and

according to Caterpillar, they havea significant presence in North

America, Japan and Europe.

CECE is looking to repeat the

contest at future editions of the

summit, which is held every two

years. ce


21/52

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QEXC1901

© 2015 Caterpilla r. All Rights Reserved. CAT, CATERPILLAR, BUILT FOR IT, their respective logos, “Caterpillar Yellow,” the “Power Edge”

trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.

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22/5222 CONSTRUCTION EUROPE NOVEMBER 2015

INTERVIEW

Bauma is the show that will dominate

the construction world next year, with

the next edition of the fair to be held

in Munich, Germany, in April, and for the CEO

of Messe München, Klaus Dittrich, the show is

the equivalent of the Olympic Games for the

construction and mining industries.

He recalled visiting the Olympics as a

teenager when they were held in Munich in

1972.

“The world was here,” he said, “and I think it is

the same feeling at Bauma – the construction

and mining world is here from all over the

world. This really makes it unique.”He pointed out that many companies

develop new products with an eye on Bauma.

Held every three years, Bauma is the place

that is chosen to launch these new products

to the world market.

“I would say it is a firework of innovations

there,” said Dittrich, “and it’s very international

– visitors are coming from 200 countries in

the world, all continents are represented and

that’s unique in this industry to have such a

worldwide meeting point.”

It is not surprising that he is convinced that

the investment from companies exhibiting at

the show is well worth it.“Big customers are visiting these exhibitors

and buying – not just having seen it at the

venue, that’s clear, but it’s maybe the final

step to invest.

“It’s also a marketing platform to show the

brand, to keep the customers motivated to go

Bauma’s CEO ispassionate about the

world’s largest trade

show, and he talks to

Sandy Guthrie about

what to expect at next

April’s edition

with this brand. But I’m pretty sure that with

a mid-term perspective, this investment has a

return for every exhibitor – if he is preparing

it very well. That is the precondition. That

means you have to invite your customers, to

invite your sales people, do PR, marketing, all

the other things to make it really a success.

“It doesn’t come by itself,” he added.

Dittrich is clearly passionate about Bauma.

“You cannot describe it,” he said. “You haveto see it, to be there. You can talk about

figures – we have 605,000m2 gross space, we

have more than 3,000 exhibitors here – but

you have to feel this Bauma spirit, to see the

whole industry there, the people from India,

Africa, South America, from China, wherever.”

He described it as “the largest show on

earth” in terms of size, and he added that for

the last 60 years it had grown steadily. The

next edition is the 31st Bauma, having started

in 1954. Initially it was an annual show, then

it became bi-annual and after that it has been

held every three years.

Dittrich advised visitors to start theirpreparations for the show now. He said the

number of exhibitors meant that it was a

good idea to start working out who to visit,

and to book the flights and rooms.

“This should all be done already now,” he

said. When it came to booking rooms, he

Feel the spirit

added, “It’s quite late, I would say, but there’s

still a chance to get one.

“It wouldn’t be right to say now you

shouldn’t try to come to Munich,” he laughed.

“So try to get a room, it’s still possible.”

He advised, “You have to invest time in

preparing a visit carefully.”

He said the main layout of the show would

be similar to the last Bauma.

“There are no big changes but we havemade some improvements to the service. You

will get free wifi in the whole of the venue,

including the outside area.”

MORE SPACE THIS TIME There is more space this time, too, but

Dittrich said that it was not, for the most part,

exhibition space. It is mainly increased space

for traffic and visitors, as well as restaurants

and other infrastructure of that sort.

From next February, there will be a mobile

phone app that can be downloaded. This

will provide visitors with information related

to the show, including exhibitor lists, halldiagrams and other data designed to help

visitors plan and make the most of their time

there. The app was tried at the last Bauma,

and the new version promises to be more

extensive.

A feature of the next Bauma show will be

Bauma is the biggest

trade show in the world


23/52

INTERVIEW

a chance for companies to attract young

people to the industry.

“It’s a big topic in Germany, but I suppose

also in other countries,” said Dittrich.

He said the demographic development

was similar in that there are fewer younger

people, and competition between the

different segments of the industry. An

initiative from the German manufacturers’

tra

ce november 2015.pdf

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