The sting in the CMA tail

Industry braced for feeding frenzy.

Quite why it has taken more than two years, I have no idea. Maybe if your company has a market capitalisation of almost £11 billion, the recovery of a trifling £2.4 million is something you do when you have some spare time on your hands; when you are bored; a mere bagatelle.

But the news that Hong Kong-based developer Circadian Limited has launched a legal action against Carey Group will have sent shockwaves through the UK demolition industry this morning.

Circadian alleges that it was overcharged to the tune of £2.4 million for demolition work in 2014 at its scheme to redevelop Lots Road Power Station in west London. This project was one of a number of contracts in which the Competition and Markets Authority uncovered evidence of bid rigging, collusion and cover pricing.

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Waze to avoid financial fallout

When construction giant Carillion collapsed in 2018, it did so with debts of £2 billion owed to more than 30,000 suppliers. By the time that ISG folded in 2024, it had amassed debts of more than £1.1 billion. At the time of the collapse, it was about to post a pre-tax loss of £138 million. Closer to home, when demolition contractor Squibb Group went under, it did so owing more than £24 million.

In each instance, creditors had little prospect of recouping any of the monies owed.

And this is just the tip of the iceberg. Over the course of the past year or so, around 5,000 UK construction companies have slipped beneath the surface. Many of these will have done so with debts, some of them hefty. Those debts will have had a significant impact upon the entire supply chain, from plant hirers and scaffolders to piling contractors to recruitment companies.

Now I could ramble on about how this typifies the boom and bust cycle of construction. I could hold forth on how this is a reflection upon the wafer-thin profit margins within the sector. I could wax lyrical about how none of these major collapses has led to any kind of shift in the way in which this industry does business. And I could also question just how many of the directors involved in all of this bounced back, seemingly unscathed, to start afresh while their supply chain was left to carry the can.

But I am going to take a different approach in this instance. And for my inspiration, I am going to use the satellite navigation app, Waze.

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Carey facing post-CMA claim

Two years and a handful of days after the Competition and Markets Authority (CMA) handed down fines of £60 million to 10 NFDC member companies involved in a big-rigging, cover pricing and collusion scandal, it appears that the story is not yet over.

Construction Enquirer is reporting this morning that Hong Kong-based developer Circadian Limited has launched legal proceedings against UK construction firm Carey Group, alleging it was overcharged by £2.4 million for demolition work at the Lots Road Power Station redevelopment in West London.

Carey was the owner of Scudder, one of the 10 companies implicated in the CMA investigation. The Scudder name has since been absorbed into the Carey group.

The claim, filed under the Competition Act at the Competition Appeal Tribunal, argues that cartel-like pricing arrangements inflated the cost of construction services beyond fair market levels.

“The Cartel Arrangements caused the price of construction services to be higher than they would otherwise have been,” the legal filing states.

Circadian Limited is a subsidiary of CK Asset Holdings Limited, a major property developer listed on the Hong Kong Stock Exchange with a market capitalisation of £10.9 billion.

Construction Enquirer quotes one “industry expert” saying: “There will be a lot of people keeping a nervous eye on how this pans out because it could set a precedent for other developers to launch similar claims.”

The Break Fast Show #910

In today’s show: Liebherr technology does more with your engine power; we’re breaking with Montabert; ground engaging tools, Sandvik-style; and a seismic shift in compaction technology.

PLUS in Mark’s Morning Monologue: Waze to avoid the fallout from a company collapse.

Join host Mark Anthony LIVE for The Break Fast Show – the ONLY daily LiveStream built exclusively for demolition, construction, and equipment fanatics worldwide.

Breaking news. Expert views. Unmissable videos. Raw opinions. If it matters in the industry, we’re talking about it – LIVE.

Test your knowledge with the Mystery Machine, have your say in the Question of the Day, and don’t miss Mark’s Morning Monologue – a no-holds-barred take on the hottest topics.

And when the show’s done, the conversation’s just getting started. Stick around for The Craic, our legendary after-show chat!
Set your alarm. Grab your coffee. It’s time to break fast, and to break new ground.

A pilgrimage of plant

Once every three years, they come. From over a hundred nations, from the frozen north to the burning equator, they make their way to Munich. A million strong, they arrive at the Messe Munchen exhibition centre, drawn by something greater than mere curiosity. This is not just an exhibition. This is Bauma. And for those in the demolition and construction industry, it is more than a trade show. It’s a pilgrimage.

They come to stand in the shadow of giants. Towering cranes stretch toward the heavens like the spires of imaginary cathedrals, their booms reaching into infinity, their steel forms etched against the sky as if in silent prayer. The faithful gaze upward, dwarfed by the sheer scale of human ingenuity, feeling the same reverence one might feel when standing beneath the arches of a great temple. This is a sacred space, a place where faith in machines, in industry, in progress, is reaffirmed.

Massive dump trucks crouch like mythical beasts, waiting to be tamed. Excavators, their arms outstretched, promise power and precision beyond imagination. Each machine is more than metal and hydraulics. To those who gather, they are symbols: of progress; of strength; of the very foundation upon which the world is built. They are relics of past triumphs and harbingers of the future, as if forged by the gods of industry themselves.

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The Break Fast Show #909

In today’s show: A record-breaking blast from the US; a crawler carrier built for the harshest conditions; the future of paving with Dynapac; and we’re going deep on large Cat wheel loaders.

PLUS in Mark’s Morning Monologue: Bauma – A pilgrimage of plant.

Join host Mark Anthony LIVE for The Break Fast Show; the world’s only daily LiveStream show dedicated to demolition, construction and construction equipment.

In each interactive episode, we’ll deliver your daily fix of news, views, video and comment from across the sector and around the world.

Take part in our Question of the Day, try to identify the Mystery Machine, and be sure to stick around for Mark’s Morning Monologue and the chat in our after-show discussion session, The Craic.

The Break Fast Show #908

In today’s tech-focused show: Komatsu’s Intelligent Machine Control just keeps getting smarter; Caterpillar tech mitigates machine collisions; Liebherr grants operators the gift of vision; and Wacker – Still doing what it does best.

PLUS in Mark’s Morning Monologue: What’s NOT in the headlines.

Join host Mark Anthony LIVE for The Break Fast Show; the world’s only daily LiveStream show dedicated to demolition, construction and construction equipment.

In each interactive episode, we’ll deliver your daily fix of news, views, video and comment from across the sector and around the world.

Take part in our Question of the Day, try to identify the Mystery Machine, and be sure to stick around for Mark’s Morning Monologue and the chat in our after-show discussion session, The Craic.

The Break Fast Show #907

In today’s show: Develon dealers get the job done; we’re going deep on Cat mining trucks; Takeuchi’s latest mini marvel; and Dynaset sucks. But in a good way.

PLUS in Mark’s Morning Monologue: The seven stages of recession.

Join host Mark Anthony LIVE for The Break Fast Show; the world’s only daily LiveStream show dedicated to demolition, construction and construction equipment.

In each interactive episode, we’ll deliver your daily fix of news, views, video and comment from across the sector and around the world.

Take part in our Question of the Day, try to identify the Mystery Machine, and be sure to stick around for Mark’s Morning Monologue and the chat in our after-show discussion session, The Craic.

The right man/woman for the job

The National Federation of Demolition Contractors is on the hunt for a new CEO ahead of the imminent departure of the incumbent Duncan Rudall.

Please do not panic – I am definitely not throwing my hat into the ring. But I would like to offer up a few points to help in the selection process.

In an ideal world, the successful candidate will have some demolition experience. This is an industry like no other, and the successful candidate will have their hands filled with internal politics and opposing factions without having to learn an entirely new industry at the same time.

They should be mature enough to have some life and business experience, yet youthful enough to be unafraid of the technology that is part and parcel of the modern demolition world.

They should be friendly and approachable, yet aloof to avoid demands for favouritism among members and senior officers alike. Equally, they should be ruthless when trying to figure out why a trade body with so few members requires so many staff.

They will need to be smart (both the academic AND the street kind, ideally) quick-thinking and erudite. This is a job that requires a lot of speaking and a lot of questions to answer. Bumbling is not an option.

And, speaking of questions, they should also be media-savvy and media-trained. Through no fault of their own, NFDC CEOs often find themselves in the journalistic firing line over accidents, fatalities, scaffold collapses, member company collapses, and collusion and corruption. The ability to field probing questions whilst not looking like a rabbit caught in the headlights would be a major benefit.

They will need to be blessed with a skin thick enough to withstand the slings and arrows of criticism that will inevitably come their way. The old adage is “you can’t please all the people all the time”. In NFDC circles, pleasing a single person is verging on the miraculous.

Most of all, they need to demonstrate the leadership and moral fortitude required to herd 100+ members in roughly the same direction towards a common goal.

Just one final point. Experience is unquestionably valuable. But just because someone has been around, seemingly, forever doesn’t necessarily mean they are actually good. Maybe they just never rocked a boat that so clearly requires some rocking.

EXCLUSIVE – Post fire deconstruction

On 24 August 2024, a fire broke out at the Spectrum Building on Freshwater Road in Dagenham.

The meticulous and highly-sensitive deconstruction and dismantling of the fire-damaged structure was carried out by HiTec Demolition in conjunction with C&D Engineering Consultants.

In this exclusive LiveStream, HiTec’s Mark Mates and C&D’s Mike Kehoe will recount the numerous challenges of this delicate project that involved a concerted effort to recover the belongings of residents.

This LiveStream will show the demolition industry’s sensitive side, while showcasing how planning and sequencing can deliver a safe outcome in even the most challenging circumstances.