Raising your profile using social networking…

An interesting article on the benefits of social networking to construction professionals.

The very fact that you are reading this blog post suggests that, contrary to popular belief, demolition people ARE web savvy and DO use the Internet for more than merely watching YouTube videos of implosions.

And yet it is a constant source of frustration to me that so few members of our industry have yet grasped the marketing and educational benefits of online social networking. Take Facebook for example.

Facebook is now the world’s largest online social networking medium, with millions of people using it daily (and even hourly if the stats are to be believed). There are interest groups on Facebook for interests that, frankly, I have never even heard of. And there is also one for demolition.

Estimates suggest that the UK demolition industry employs somewhere in the region of 10,000 people. So how many do you think are a member of the demolition group? 100? 500?

No. The group has just 11 members, a paltry number when you consider that the industry is in recession and that social networking is now considered a key way of finding job opportunities.

Against this background, I would point you to this excellent blog post which, I believe, underlines the current and growing importance of social networking in today’s construction business.

I look forward to seeing you all on Facebook, MySpace, Twitter etc…

Keltbray fined…

UK demolition contractor fined over fire at shopping centre.

Demolition contractor Keltbray Ltd has been ordered by the courts to pay over £35,000 in fines and prosecutions costs after an incident in August 2006.

Keltbray was principal contractor for the refurbishment of a retail unit within the Queensmere Shopping Centre in Slough and failed to ensure that all services were isolated before the sub-contractor cut through a live gas pipe causing a fire.

Read the full story here.

Komatsu demolition excavators…

New video showing a variety of Komatsu excavators in demolition applications.

We have just received a new video showing a variety of Komatsu excavators working in a range of demolition applications. No major sales pitch; just really good footage – Enjoy.

Irish pub demoition uncovers human remains…

Demolition of a pub in Ireland has uncovered the bones of up to 30 people.

Worker demolishing the site of a historic Waterford city pub have found skulls and bones belonging to up to 30 people.

Waterford gardaí were contacted yesterday morning by the construction company, Sisk, regarding the find at the former location of Egan’s Bar on Barronstrand Street.

Read the full story here.

Volvo sales down…

Volvo Construction Equipment latest to report sales meltdown.

Volvo has become the latest construction and demolition equipment manufacturer to post a major decline in sales. According to UK trade magazine Contract Journal, the company has reported an operating loss of almost £117m following a 46% decline in sales over the first three months of the year.

Sales almost halved to £684m in the first quarter (£1.26bn) turning last year’s £109m profit and 8.6% operating margin into a £116.9m loss representing a -17.1% margin. At the end of March its order book (excluding and the acquired road machinery business) was 73% lower than a year ago.

Full story here.

UK Treasury to consult on Landfill Tax…

The UK Treasury has issued a new consultation document to look at the definition of waste under its Landfill Tax scheme.

Less than a week after the UK Government fixed the annual price escalator on its Landfill Tax scheme at £8 per annum until 2013, the Treasury has issued a consultation document to look at the definition of what constitutes waste under the scheme. The document, entitled Modernising landfill tax legislation, cites last year’s Waste Recycling Group vs. HM Revenue & Customs case as a key driver for this change.

Full details of the story from online waste and recycling information portal MRW can be found here.

Demolition man to fight UK tax change…

A UK demolition contractor has hit out at tax changes that could cost him hundreds of thousands of pounds.

David Lee yesterday began examining ways to move offshore in the wake of the chancellor’s imposition of a 50 per cent tax rate for high earners, writes the Financial Times’ Bob Sherwood. The founder and managing director of Lee Demolition, one of the UK’s largest demolition groups, which turns over £14m a year, is looking at a personal tax increase of “at least a couple of hundred grand”. Just two of his companies generated profits well in excess of £2m last year, he said.

“It’s just too much,” he told the FT. “We are not going to stand for it. We will have to look at ways of getting around it. We just think it is unbelievable that [the chancellor] can charge 50 per cent tax.”

Read the full story here.

Demolishing Ancient Egypt….in Chicago…

Demolition work is underway to take down the fire-ravaged Empress Casino in Chicago.

(Liz Wilkinson Allen/Staff Photographer)
(Liz Wilkinson Allen/Staff Photographer)
It’s not every day that you see a Caterpillar excavator wrestling a” ancient Egyptian” statue to the floor…unless you live in Chicago, apparently.

Demolition crews have begun tearing down the pavilion building, part of Chicago’s Empress Casino, that was destroyed in a recent fire. The casino, which sits on barges in the Des Plaines River and was untouched by the fire, is expected to reopen in late June. But it will take anywhere from a year or more to rebuild the pavilion building that houses restaurants and shops.

The full story of the project can be found here while striking photos from the project can be viewed here.

NDA elects news president…

Raymond Passeno has been named as president of the US’ National Demolition Association.

The National Demolition Association has elected Raymond Passeno president of the association. He presently is VP of Bierlein Companies, Inc., Midland, MI. Passeno has been active in nearly every committee and has served as VP, secretary and treasurer.

Further details can be found here.

Guest Blog – Surviving the recession…

Guest blogger Michael Gerard’s advice to help companies brave the recession.

Michael Gerard
Michael Gerard
The recent G20 summit may have succeeded in bringing a brief note of optimism to the financial situation with the pledge of $1.1 trillion to boost the international economy, but the long term prospects for many industries remain bleak for the foreseeable future. The construction and demolition sectors, and all the organisations allied to this marketplace, must brace themselves for tough times ahead, despite some encouraging signs such as the 0.9% rise in house prices last month (March). The simple fact remains that contractors will need to continue to operate at maximum efficiency to maintain healthy profit margins.
For some “on-the-ball” companies, this will mean business as usual – but those companies lulled into a false sense of security (and lax business practices) during the last 15 years of economic growth will need to seriously reconsider their ways of doing business. By its very nature, our economy will always will be cyclical; the only uncertainty being the length and depth of the peaks and troughs of a cycle. This means that the best way to grow and thrive in any environment is to adopt best practice techniques – regardless of the prevailing economic climate. You may not need to do things very differently, but you will need to do them better.

Minimise the hazards
Now is not the time to take risks. As a business allied to the construction industry, your first priority is putting a clear contract in place. It sounds pretty obvious, but it is surprisingly common, even amongst companies responsible for delivering multi-million pound projects, for managers to be unclear on what their company has actually contracted for in terms of timing, payment periods, rights of set-off, insurances and damages.
It is also crucial to ensure that the main terms and conditions of contract are agreed and clearly understood, and that the documents referred to are in fact those that the agreed price was based on. I would advise using an industry standard form of contract as these are not only industry tested, but also make it much easier to be alerted to changes such as contractual set-off and ‘time is of the essence’ clauses.

Money makes the world go round
Smaller businesses are particularly vulnerable to problems with cash flow – an issue that inevitably becomes more common as a recession deepens. Be alert to this threat and take measures to guard against tardy creditors.
• Ensure quicker payment by offering attractive incentives such as discounts for early settlement.
• Always run a credit check on the client before entering into a contract. If the client is a regular customer, carry out periodic credit checks and never trade above the credit limit that you feel is appropriate.
• Consider introducing special terms in the contract such as retention of title (commonly referred to in legal circles as the Romalpa clause), and interest on late payment.
It is the money in the bank that determines a company’s success, so no matter how attractive a potential contract may look in regards to turnover or profit, make sure that the payment terms are clear and binding: these are critical in the company’s trading position and financial solvency.
If you are experiencing major problems in securing payment, use self-help remedies such as the traditional ‘letter before action’ and statutory demands where the sum is not disputed before taking the more complex, and expensive, legal route.
Where the debtor disputes the sum claimed, there is the option of legal action, but court disputes can be long and expensive and there is no guarantee that your debtor will still be trading by the time of the hearing. Therefore, consider including other forms of dispute resolution in your terms like adjudication, the decision of which can be made binding.

Look long term
You may be most concerned with survival in the here and now, but it pays to look to the future, whatever the economic conditions. Even in more prosperous times it pays to aim for breadth and depth in your client portfolio; working exclusively with one client or within one specific sector makes your company very vulnerable. If possible, work with a range of clients in different industries, to maintain your independence and reduce risk.
You may have created a niche market for your business, but if that market collapses, your reputation is unlikely to save you, so consider diversifying. Just because you have always done something a specific way or worked within a particular marketplace doesn’t mean that is the way that it always has to be. Take advantage of lean times to diversify: think out of the box and find other markets for your product or service.

Invest for success
It’s natural – and sensible – to look for areas where savings can be made, but beware of false economy. By all means review company expenditure and cut down on the luxuries, but remember that the easy option is not always the best. Marketing budgets are often the first to go. However, I would argue that in a recession, marketing is more important than ever: use your marketing budget to communicate with current and potential clients. If nobody knows about you, how can you expect to win their custom?
As spring brings finer weather, it also brings some hopes of recovery. However, it is important to remember that this is just the start of a very long journey. Conditions are still harsh for the construction industry, but the problems are not insurmountable. Stick to the principles and procedures of good practice, hold your nerve and review and build on what you are doing right. There is some light at the end of the current economic tunnel, so resist change for its own sake. Change what doesn’t work and do more of what does and your company will be in a strong position to survive – and maybe even thrive – throughout the recession.

Michael Gerard is a barrister, chartered builder, registered adjudicator and accredited expert in quantum and planning matters. He is also the Managing Director of Michael Gerard & Co (www.michael-gerard.co.uk), a company of chartered building consultants and quantity surveyors who provide a specialised service in the areas of construction law, quantum, programming, business recovery and insolvency support to the construction industry.