Public sector cuts have finally begun to impact on activity on the construction industry, confirming the fears of many in the sector.

37 percent of building companies reported a contraction in growth between 2010 Q2 and 2011 Q2, while 19 percent of SME contractors reported a decline in their workload for the 14thconsecutive quarter.

These results come as no surprise to John Hardy, managing director of Portland Consulting, who attributes the problems to the complicated bureaucracy involved in procurement.

Commenting on the figures, he said: “Over the last 15 years procurement methods have created a stranglehold on the industry and therefore make it difficult for small firms to grown and create employment.

“I can see shrinkage over the coming months to a level that is dangerous and will be difficult to recover from, and Just like all the other traditional industries we had in this country, we will lose all the relevant skills and it will take years to replace them.”

Construction accounts for 10 percent of the UK’s economy, but despite government pledges to place the industry at the heart of its growth strategy, industry output is still expected to fall over the coming year.

Noble Francis, Economics Director at the Construction Products Association also blamed the banks reluctance to invest in the construction industry, and called for the government to clarify the picture on forward public investment.

He said: ‘Construction activity fell in most sectors during the second quarter, with only a small rise in private commercial activity preventing even sharper falls.

“The greatest falls were seen in public non-housing such as education and health and with the public sector spending cuts already taking effect this will only exacerbate the situation.”

Responsibility for vital projects such as schools and hospitals has been devolved to local decision makers, rendering it difficult for those in the construction industry to understand the fully economic picture ahead.

John Hardy : Managing Director

Lee Barr, associate at Gateshead based Portland Consulting Engineers. 6am – I wake up, and take the dog out for a run. This is a good chance for me to exercise and energises me for the day ahead. 7am – Depending on the wife’s shift pattern we take turns on the school run. However, as today is not my turn I head off to work for an early start. 7.15am – Normally I am the first one through the door so I open the office, review the previous day’s activities and try to catch up on any work before phones start ringing and emails start arriving. 8.30am – By this time the rest of the team are all in and the office is alive. I then begin to review the tasks for the day, prioritising what is needed first, planning my workload and hoping for no distractions. 9am – Time to sit down with my brother Gary, a technician at Portland, to assess his workload and agree information which is required for tonight’s post. 10am – Whilst in the middle of designing a steel frame for a new, extremely large, detached house, there is a phone call and I’m required on site to resolve a problem. 11am – I arrive on site and review the queries then advise on a solution, enabling work to continue. 12.30pm – Back at the office for a quick sandwich and a browse on the internet. As a keen boxer in my youth, I usually check boxing websites for the latest news along with football transfer news in the hope that Newcastle United has signed Lionel Messi! 1.15pm – I review emails before heading out to a design team meeting at a contractor’s office for the new Fordfield Road Retirement Village in Sunderland. 4pm – Return to office and check project drawings prior to sending them out to the rest of the design team. 4.30pm – Now time to join a management meeting to review finances, resources and work load for the coming week. 5pm – Depending on the agenda, I may have to leave work to collect the kids from school. If not, post-5pm tends to be a relatively quiet time in the office, which gives me the chance to tie up any loose ends. 6.30pm – After an enjoyable and busy day at work, I arrive home to the wife and kids for homework duties, bath time and tea. 7.30pm – Now is time for me to relax and settle down for the evening.

Lee Barr

CIVIL and structural engineering specialist Portland Consulting expects to get its turnover back up to pre-recession levels after a number of contract wins in the leisure sector.

The Gateshead-based firm, which was set up in 2004, has been appointed by Quality Hotel owner Mike Chawla to provide structural engineering consultancy for the refurbishment of his South Tyneside hotel after it was damaged by a fire late last year.

After surveying the hotel, Portland is redesigning and refurbishing the areas which are salvageable, in addition to designing structures to rebuild what has been deemed beyond repair. Throughout the project, Portland will be working with project partners including cost consultant Fitzsimons and architects Street Design.

Portland director Peter Dwyer said: “I am delighted to be working with Mike Chawla again for the refurbishment and restructure of the Quality Hotel, with involvement in all aspects of the redevelopment from the outset.

“We previously worked on the internal refurbishment and building of a new golf club at its sister hotel, the George Washington.

“We look forward to continuing our working relationship with Mike and finding cost-effective solutions to create contemporary top-quality facilities for visitors to the region.”

A further contract win for Portland is the new Birtley Young Peoples Club in Gateshead, which is replacing the existing facility.

Work has commenced on the new joint facilty for Gateshead Redheugh 1957 (better known as Redheugh Boys Club) and Tyneside Cyrenians. The scheme is being developed by Four Housing and constructed by Surgo.

We are proud to announce that we are nominated in four categories in the 2011 Constructing Excellence Awards:

Innovation: Hodgson Car Tower, Derwenthaugh

Value: Bohouse, Middlesbrough

Integration and Collaborative Working: Hodgson Car Tower

Legacy: Ladywell Place, Berwick

Click here for full list of nominees….

Our development for Four Housing in Berwick was officially opened by Sir Alan Beith MP on 6th May. Click for more info……

Our Easter Reception was held at Bar Beyond, Newcastle on Thursday 21st April. Thank you to all who attended, your support is much appreciated. Click here to see the photographs ………

Work has recently begun on Riverside’s development at Crigglestone, Wakefield. The £3m scheme is to provide 25 affordable properties for rent and shared ownership. A sod cutting event was held with representatives of Riverside, Wakefield Council and Mansell in attendance. Read more …..

Two projects which Portland Consulting Engineers have been involved in are nominated for awards tonight – BoHouse, Middlesbrough in the Residential category and Greengates House, Stanley in the Commercial category. Good luck to all involved. See the full list of nominations

The scheme at Kibblesworth has been shortlisted for ‘Best Small Development’ in the LABC Building Excellence Awards. Phase 1 of the 147 unit development to provide replacements for post-war ‘Airey’ prefabricated dwellings was completed late 2010 and phase 2 is currently in progress.