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Briefing starts for £8bn highways maintenance shake-up

The new deals will replace existing M&R arrangements which start expiring from July 2028. These were procures and 10 separate maintenance and response contracts across a dozen operational areas of the network. The new arrangements will run for up to eight years, possibly split into two tranches with multiple lots. This will rank it as one of the largest highways maintenance procurements ever launched, with a value estimated at £8bn and a possible extension to 2037. M&R2 will cover cyclic and reactive maintenance, incident response, severe weather duties, operational roadside technology, and asset renewal works. A launch event will be held on 18 September 2025, followed by a main market engagement session in January 2026. Tender notices are expected in July 2027. To attend the first event contractors can sign up here. Read More

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Network Rail launches £240m OLE steelworks framework race

The deal will cover steel piles, structures, small parts and fixings for electrification schemes, with the framework running for six years and the option of a two-year extension. Up to 25 suppliers will be appointed across five lots, with tenders due by 22 September. The largest packages are £99m for steel structures and £70m for steel piles. Bidders for the first two lots will need to demonstrate they can buy and store steel on behalf of Network Rail, with a vesting certificate in place. Shortlisted firms will be invited to e-auctions for most lots early next year, with awards expected by the end of January 2026. Framework breakdown Lot Description Value £m) 1 Steel piles – tubular piles used for foundations 70 2 Steel structures – masts and spans  for OHLE 99 3 Small part steel – uncontrolled components to attach OHLE equipment to structures 27 4 Small part steel – controlled clips and clamps to secure items and support OHL wire 31 5 Fixings – electrification-specific fixings and fasteners for securing structures 13 For more details click here. Read More

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Bears Eye Arlington Heights for NFL Stadium as Chicago Mayor Vows to Keep Team

Image courtesy of Hart Howerton/Chicago Bears Rendering by Hart Howerton Architects shows the proposed domed stadium (at left) anchoring a 326-acre mixed-use redevelopment of the former Arlington International Racecourse in Arlington Heights, Ill., about 25 miles northwest of the Bears’ current home at Soldier Field in Chicago. A fixed-roof NFL stadium and mixed-use district planned for 326 acres in Arlington Heights, Ill., could become one of the largest privately led construction projects in Illinois history—if the Chicago Bears secure legislative approval this fall for a “mega-project” bill granting long-term property-tax certainty.  However, Chicago Mayor Brandon Johnson has made clear he believes the franchise should remain in the city. “Look, the Bears belong in the city of Chicago… I believe that people know that,” Johnson said during an Aug. 2025 interview on WSCR-AM’s Rahimi & Harris Show. “We want to make sure the ownership of the Chicago Bears, the Park District and the residents of the city of Chicago have a real seat at the table to discuss a pathway forward.” Johnson’s office did not return ENR’s request for additional comment. Team executives say the design is completed, but construction hinges on a state “mega-project” bill this fall that would give long-term property-tax certainty. “That is our plan… We strongly believe that is the only location in Cook County that will allow us to build a new Chicago Bears stadium with a fixed roof,” team President and CEO Kevin Warren said Aug. 8, adding, “We are making great progress… Those meetings are going well. Making excellent, excellent progress” in weekly coordination with Arlington Heights officials.  Soldiering Westward According to Warren, the club could “move dirt” before year-end if the bill passes in October, break ground in 2026 and open in roughly three years—a schedule comparable to the 30-month build of Minneapolis’ $1.1-billion U.S. Bank Stadium, which he oversaw as Minnesota Vikings COO. The Bears purchased the former Arlington International Racecourse site in February 2023 for $197.2 million, a deal they said at the time could generate $9.4 billion in economic impact and $3.9 billion in labor income, according to a statement on the team’s website.  In March 2024, Arlington Heights then-Mayor Tom Hayes called the property a “unique potential” redevelopment opportunity, citing its size, transit access and regional location, but warned that village leaders will “…not approve any plan that does not meet these expectations” for broad community benefits.  The village shifted its focus over the past several months, confirming in April 2025 that it was conducting a more detailed review. Traffic and economic impact studies for the Bears were being independently peer-reviewed, funded by the team. Village staff said those reviews would help determine infrastructure needs and the feasibility of a redevelopment plan. Warren confirmed the stadium design is finished and that the team’s immediate priority is passage of the “mega-project” bill in the Illinois General Assembly’s fall veto session. The measure would allow large-scale developments to negotiate property-tax terms directly with local taxing bodies for up to 40 years.  “This is an economic bill that would give people jobs… Yes, the Bears would benefit from it. But there is much more than the Bears benefiting from this bill. The entire state of Illinois would benefit from it,” Warren said, estimating 56,000 construction jobs and 9,100 permanent jobs if the stadium moves forward.  The property’s current tax structure is governed by a December 2024 Memorandum of Understanding between the Bears, the Village of Arlington Heights, and local taxing bodies. The agreement sets the site’s assessed value at $125 million—its approximate value as a vacant parcel—and fixes annual property taxes at about $3.6 million from 2025 through 2027, provided the land remains unimproved.  The village’s published FAQ states that the arrangement automatically terminates if the Bears select another location for the stadium or if significant construction begins. Village officials said the intent is to give the team and taxing bodies certainty during the predevelopment phase while preserving the right to renegotiate once vertical construction changes the property’s value. Illinois Gov. J.B. Pritzker has not committed to the “mega-project” bill but has kept the door open, telling reporters in August during a media event, “It’s something we’re still considering… We’re going to evaluate what the costs are… and the benefits that come from attracting businesses as a result of providing that ability to use those tax dollars,” NBC Chicago first reported. The 326-acre parcel slated for redevelopment, formerly the Arlington International Racecourse site in suburban Arlington Heights, Ill. Image courtesy of Google Maps The team has not announced its construction delivery method or named a design-builder. The village approval process will require comprehensive traffic and parking analyses, as well as economic-impact studies, but no formal planned-development application has yet been filed. During the Bears’ preseason TV broadcast against the Dolphins on Aug. 10, Chairman George H. McCaskey said, “But we’ve got to convince them that this is going to be great for the state. That’s on us,” underscoring the team’s need to sell the tax-certainty bill to Springfield. The exchange, aired live, was posted by the club; McCaskey joined Adam Amin, Jim Miller and Stacey Dales in the booth. Other modern NFL stadiums offer scale and financing benchmarks: U.S. Bank Stadium in Minneapolis cost $1.1 billion and was delivered in about 30 months with substantial state and city funding; Allegiant Stadium in Las Vegas opened in 2020 at $1.97 billion, supported by $750 million in public bonds; SoFi Stadium in Inglewood, Calif., home to the Rams and Chargers, opened in 2020 at a privately financed cost of $5.5 billion; while Lucas Oil Stadium in Indianapolis opened in 2008 at $720 million with significant state and local tax contributions. Design responsibilities for the proposed suburban relocation are split. Manica Architecture is leading the stadium design, the firm says, bringing experience from Allegiant Stadium in Las Vegas (delivered with HNTB as architect of record) and Chase Center in San Francisco. Hart Howerton prepared the Arlington Heights master plan and early district renderings for

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ABC: US Contractor Backlog Rises to 8.8 Months in July as Confidence Slips

Photo by Adobe Stock ABC’s July backlog report shows infrastructure and data center work driving gains, with one in eight members holding such contracts despite weakening profit margin expectations. U.S. contractors reported an average of 8.8 months of work in their July backlog—up slightly from 8.7 months in June and from 8.4 months in July 2024—according to the Associated Builders and Contractors’ latest survey, conducted July 24–Aug. 4. Two of the three tracked industry segments posted month-to-month gains. Commercial and institutional backlog rose to 9.17 months in July from 8.94 in June, while infrastructure increased to 9.65 months from 9.32.  Heavy industrial fell sharply to 5.15 months from 6.80, marking the steepest one-month drop among all categories. Year-over-year, infrastructure showed the largest increase, up 2.1 months, while heavy industrial contracted 0.7 months. By region, the South led in July at 9.79 months, up from 9.38 in June, followed by the West at 8.66 (up from 8.03) and the Middle States at 7.98 (up from 7.31).  The Northeast dropped to 8.11 months from 9.20 in June, the largest regional decline. Compared with a year earlier, backlog increased in every region except the South, which still holds the highest figure nationally. RELATED Labor Market Loses Momentum: July Adds 73K, Prior Months Slashed by 258K Backlog also varied by firm size. Contractors with annual revenue above $100 million reported 12.35 months of work under contract in July, up from 11.87 in June and 10.43 a year earlier. Those in the $30 million–$50 million range rose to 9.22 months from 8.83 in June, and $50 million–$100 million firms inched up to 9.30 months from 9.24. The smallest firms, under $30 million, averaged 7.91 months, down slightly from 8.02 in June. Confidence Wanes in July ABC’s Construction Confidence Index showed mixed sentiment in July. The sales reading fell to 60.4 from 62.8 in June, and profit margins dropped to 51.8 from 53.5. However, staffing expectations improved to 62.4 from 59.4—the highest since April.  Still, all figures remain above the 50-point threshold, signaling growth expectations over the next six months. Only 1.8% of respondents expect significant profit margin gains during that period, down from 4.1% in June and the lowest since October 2024. More than 80% of members said they have received tariff-related price increase notices. ABC Chief Economist Anirban Basu said July’s increase reflects strong demand for data centers—now part of the backlog for about one in eight members—as well as substantial growth in infrastructure work.  “While backlog rose, contractor confidence slipped in July, especially with regards to profit margins,” Basu said in the release. “Fewer than 2% of ABC members expect their profit margins to increase significantly over the next six months, the fewest since October 2024.” Basu said the bearish sentiment is likely due to trade policy and the recent acceleration in materials price escalation, noting that “More than 80% of ABC members have been notified of tariff-related price increases.”  He noted that public construction has outpaced private work in recent months but warned that rising material costs tied to trade policy are weighing on contractors’ profit expectations. “Backlog continued to rise in July despite the ongoing decline in construction spending,” Basu added. “Some of that strength can be attributed to the fact that 1 in every 8 ABC members is currently under contract to perform work on a data center project … and public construction activity has outperformed the private sector over the past several months.” Associated Builders and Contractors Bryan Gottlieb is the online editor at Engineering News-Record (ENR). Gottlieb is a five-time Society of Professional Journalists Excellence in Journalism award winner with more than a decade of experience covering business, construction, and community issues. He has worked at Adweek, managed a community newsroom in Santa Monica, Calif., and reported on finance, law, and real estate for the San Diego Daily Transcript. He later served as editor-in-chief of the Detroit Metro Times and was managing editor at Roofing Contractor, where he helped shape national industry coverage. Gottlieb covers breaking news, large-scale infrastructure projects, new products and business email: gottliebb@enr.com | office: (248) 786-1591 Read More

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Balfour Beatty smashes margin target

Interim results from Balfour Beatty show improvement in UK performance offset by a loss in US construction, due to cancellation of a civils project in Texas. For the six months to 27th June 2025, group revenue was up 10% at £5,150m (2024 H1: £4,677m). While underlying operating profit was flat at £77m, with a £7m increase from the earnings-based businesses offset by a £3m increase in the Infrastructure Investments loss and a £4m increase in corporate activity costs. However, pre-tax profit for the period was up 18% at £132m (2024 H1: £96m). The UK construction business made an operating profit of £56m on revenue of £1,563, giving a margin of 3.6% (2024 H1: 2.3%), passing the board’s long-term target of 3% a year ahead of schedule. The US construction business, by contrast, lost £11m on £2,087m revenue. The support services operations also improved, with revenue up 19% to £662m and operating profit up 35% at £46m, with the margin growing from 6.1% last year to 6.9%. “The group’s longer-term outlook remains positive,” the board said. “The acceleration of growth achieved by UK Construction and Support Services in the first half of the year further demonstrates the earnings potential of the group. When coupled with increasing opportunities in the four key growth markets it has positioned itself for – energy, transport and defence sectors in the UK and the US buildings market – the board continues to have confidence in Balfour Beatty’s ongoing ability to deliver profitable managed growth and strong cash generation, and in turn, sustainable and attractive shareholder returns.” Got a story? Email news@theconstructionindex.co.uk Read More

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Laing O’Rourke director takes Severfield top job

Paul McNerney Paul McNerney will join Severfield in the autumn from Laing O’Rourke, where he has worked for 26 years. He replaces Alan Dunsmore who “agreed to step down by mutual consent” in March this year after Severfield issued a second profits warning in five months. McNerney is currently director, clients and government at Laing O’Rourke and has previously been managing director of the UK construction business, Select Plant Hire, Explore Manufacturing and Crown House Technologies. He has played a pivotal role in securing and delivering complex schemes such as the Oxford University Humanities campus and Everton’s new stadium, for both of which projects Severfield supplied and erected the steelwork. McNerney is a chartered surveyor by profession, a member of the CBI UK Competitiveness Committee and also a member of the Liverpool – Manchester Railway Partnership Board. Severfield chair Charlie Cornish said: “We are delighted to welcome Paul to Severfield. His blend of strategic acumen, operational delivery, particularly in construction, and international perspective, along with his proven ability to lead transformation, makes him an ideal choice to lead the group through its rebuilding process to the next phase of its growth and innovation. The board is confident that Paul will bring the energy, experience, and clarity of leadership required to deliver long-term value for shareholders.”  Paul McNerney added: “I am delighted to be joining Severfield at such a pivotal time in its journey. The company has a proud heritage, strong values, and a clear opportunity to lead with innovation and excellence in the structural steel sector. I look forward to working with the board, our talented teams, and customers to continue building Severfield’s market leadership and long-term success.” Got a story? Email news@theconstructionindex.co.uk Read More

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Activist takes chair at Engineers Without Borders

Georgia Elliott-Smith Georgia Elliott-Smith has taken over from Mathew Riley as chair of Engineers Without Borders UK. Engineers Without Borders UK is a registered charity that campaigns for “individuals and organisations to put global responsibility at the heart of engineering”. It is part of the Engineers Without Borders network across more than 60 countries, originating in France as Ingénieurs sans Frontières, to mirror the better known Médecins Sans Frontières for doctors. Its mission is to improve access to clean water, sanitation, energy and infrastructure. New chair Georgia Elliott-Smith runs her own environmental consultancy business and last year set up a campaign group called Fighting Dirty that sued the government over its sewage sludge treatment policies. She began her career spending five years in the 1990s working for Bovis (later Lendlease) in environmental management. She was then business development manager for quantity surveyor Franklin & Andrews and later spent a year as head of sustainability for Mace. But she grew frustrated with corporate life: “I knew I was delivering projects, hitting targets, all the rest of it – but none of it was changing anything. It felt like PR, not progress,” she says She became involved in campaigning, she said, because she was inspired by the Extinction Rebellion protests in London in 2019. “I remember seeing it and thinking, ‘Why aren’t I there?’ It forced me to confront my own arrogance – that assumption that because I was qualified and experienced, I knew best. The people at those protests weren’t naive. They were grieving. They felt helpless. And they were trying to do something about it.” Her predecessor as chair of Engineers Without Borders UK, Mathew Riley, stood down after 18 months as he moved to New York earlier this year to take up a job with Turner & Townsend. He was previously chair operating officer of consulting engineer Ramboll. Riley’s processor was Jon Pritchard, then chief executive of the Mineral Products Association, who held the part-time voluntary role for six years. John Kraus, chief executive of Engineers Without Borders UK, said that Elliott-Smith’s appointment represented a new chapter for the organisation. “Georgia’s bold leadership, deep sector expertise, and long-standing commitment to environmental and social justice will strengthen our ability to drive systemic change,” he said. “Georgia understands the realities of both industry and activism, and she brings the clarity and conviction needed to unite engineers across sectors in the urgent task of building a more sustainable and equitable future.” Got a story? Email news@theconstructionindex.co.uk Read More

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Ex-Balgownie finance director banned for VAT fraud

Scottish Doosan dealer Balgownie Limited went into administration last year owing more than £3m, shortly after changing its name to FB Realisations Limited. The fall of Balgownie/FB Realisations followed revelations that finance director David Smith had been submitting false VAT returns on behalf of the company for several years without the knowledge of his fellow directors. David Smith, aged 61, of Kirkton of Bourtie, Inverurie, Aberdeenshire, has now been disqualified as a company director for 11 years following investigations by the Insolvency Service. Mike Smith, chief investigator at the Insolvency Service, said: “David Smith’s conduct falls well below the standards we expect of company directors. Smith’s misconduct was hidden from his other directors and only came to light when a consultant queried finances at a board meeting and he admitted that he had been manipulating the accounts for several years. “By deliberately suppressing VAT payments, Smith deprived the public purse of vital funds that should have gone towards essential public services such as schools and the NHS.” Balgownie Limited was set up on Companies House in 1973 but had a trading history dating back to 1907. The undeclared VAT totalling £1,575,584 consisted of: falsely claiming VAT refunds on expenses that were actually for private or personal use rather than legitimate business purposes in the quarter ending December 2018 deliberately understating the amount of tax due on sales made between March 2019 and March 2022, across multiple quarterly returns falsely claiming refunds by backdating purchases to earlier tax periods without having valid invoices or evidence to support these claims Smith signed a disclosure with HMRC in March 2023 where he admitted deliberately under-declaring the amount of VAT his company should have paid. Balgownie Limited went into administration in March 2024, with 24 people losing their jobs and creditors owed £3,163,795. However, 15 jobs were saved when the business and its assets were bought out of administration by MacGregor Industrial Supplies the following month. The secretary of state for business and trade accepted a disqualification undertaking from Smith, and his ban started on 21st July 2025.  It prevents him from being involved in the promotion, formation or management of a company, without the permission of the court. Smith was declared bankrupt in August 2024 following a petition from one of the company’s creditors. Got a story? Email news@theconstructionindex.co.uk Read More

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PFI woes continue to haunt Vinci

Publicity photo from www.vincifacilities.com Vinci Construction UK turned over £1.33m in 2024, unchanged from 2023, and made a pre-tax loss of £36,000. Though the loss was marginal, and a solid improvement from the £51.4m and £43.5m pre-tax losses of the previous two years, it was still another loss.  Operating loss, before financial income, was £15.4m, compared to 2023’s £65.8m operating loss. Vinci Construction UK comprises Vinci Building, Vinci Facilities and Taylor Woodrow and is wholly owned by Vinci SA of France. However, results for Vinci Construction Holding Limited, which includes the highway maintenance businesses Eurovia and Ringway as well as Vinci Construction UK, were much improved, making a pre-tax profit of £63.9m on the back of two loss-making years, from revenue (including joint ventures) up 7% at £2,451m Eurovia made an operating profit of £10.1m on revenue up 11% at £197m. Ringway made £29.3m on revenue up 8% at £565m. Vinci Building turned over £606m, with five of the six business units performing well but one suffering a loss mainly due to a fixed price student accommodation project on a price agreed back in 2021. While Vinci Building made an operating profit margin of 1.8%, that reduced to just 0.9% after interest resulting from further provisions made against legacy fire and cladding claims. Taylor Woodrow made £17.1m operating profit from £381m revenue. The problems seem to be at Vinci Facilities, which operated at a loss for a third successive year – an £18.9m operating loss this time. “This was the result of recognising historic losses related directly to the completion of our Ministry of Justice building framework projects and the extreme application of healthcare PFI contract terms,” explained chief executive Scott Wardrop in the 2024   accounts report. “The contracts under legacy PFI contract terms have proved very difficult to manager and operates,” he said, “with severe tensions between Client and ProjectCo, in addition to the ProjectCo and its subcontractors,” he said. In the 2023 report he had been even more blunt, describing a healthcare PFI hard service contract in Coventry as “toxic”. However, he said that Vinci Facilities is now on the mend. “The underlying facility management business, our defence portfolio and the main building solutions businesses are operating with positive returns and with the steps taken over the last three years, 2025 will show the true underlying performance,” Wardrop added. Got a story? Email news@theconstructionindex.co.uk Read More

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Severfield appoints Laing O’Rourke director as chief executive

Severfield plc has appointed Paul McNerney as chief executive officer. McNerney, currently director for clients and government at Laing O’Rourke, will join the structural steel specialist in the autumn, with a start date to be confirmed. He will replace Alan Dunsmore, whose departure was announced in March, less than a month after the firm issued a profit warning. McNerney has more than 25 years’ experience in the construction and engineering sector, including roles as managing director of Laing O’Rourke’s UK construction arm, Select Plant Hire, Explore Manufacturing and Crown House Technologies. At Laing O’Rourke, McNerney led the £1.3bn UK construction business, delivering projects across sectors such as stadia, healthcare, life sciences, data centres, aviation and mixed-use developments. His portfolio included the Oxford University Humanities campus and Everton’s stadium, both involving Severfield. He has also worked in Australia, establishing infrastructure operations in New South Wales and delivering heavy civil and marine projects, as well as developing new oil and gas markets. McNerney is a chartered surveyor, a member of the CBI UK Competitiveness Committee and serves on the Liverpool–Manchester Railway Partnership Board. Severfield chair Charlie Cornish said McNerney’s strategic and operational experience, particularly in construction, positioned him to lead the group “through its rebuilding process to the next phase of its growth and innovation”. McNerney said he looked forward to working with the board, staff and customers to “continue building Severfield’s market leadership and long-term success”. Read More

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