Clarksville fined $77K for demolition that breached asbestos rules.

The state ordered the city of Clarksville to pay $77,000 for its handling of the Ratchford Apartments demolition last year.

The fine was assessed by the Tennessee Department of Environment Conservation’s Division of Air Pollution Control, which regulates asbestos, a manufacturing material that can cause serious health problems when inhaled.

In a letter dated April 30, Randall Harrison, a department official, notified then-Mayor Johnny Piper that the city violated four state air pollution regulations regarding the handling of asbestos and two other regulations related to water disposal during the demolition. In October, the division sent Piper another letter with the fine enclosed.

Read more here.

Low bidder seeks legal recourse over Holly Street power plant.

As regular readers may recall, just before Christmas we reported on the fact that the City of Austin had taken a somewhat surprising decision to overlook a low bid from CST Environmental – which was itself $3.84 million above the city’s own estimated budget – and to opt instead for a $24.9 million bid from TRC Environmental for the demolition of the Holly Street power plant.

As we went to press, some were suggesting that this could result in legal action. Sure enough, papers shared with us exclusively and anonymously show that’s precisely what is happening. And it makes for fascinating reading.

Not only was the low bid totally overlooked, CST Environmental didn’t even get invited for an interview. To add further insult to injury, CST’s subsequent formal protest was dismissed by the city without a hearing.

In a 43-page document, CST goes on to say: “…CST is the second largest demolition contractor in the US. CST has performed substantially more jobs similar to the Holly Street Project than TRC has. In fact, TRC is not a demolition contractor; it will subcontract out all of the asbestos remediation work, which is the real substance of the project…”

We have a feeling that the legal repercussions on this one could run for almost as long as the demolition contract.

Demolition & Dismantling from Autumn 1979.

Given that the present of the UK demolition industry is filled with bad news and the future looks set to deliver more, we have taken another trip down to the bowels of the Demolition & Dismantling archives to find some much needed levity.

This latest installment in our irregular Nostalgia Corner comes from the Autumn of 1979, when the NFDC had just returned from a truly memorable annual convention at the Gleneagles Hotel in Scotland.

Birthplace of former Beatles drummer set to be saved from demolition.

OK, we should state from the outset that we’re not the world’s biggest Beatles fans. Given the choice between the Fab Four and the Rolling Stones, we’ll come down on the side of wrinkly rockers Jagger and Richards every time. In fact, the sight of Sir Paul McCartney’s face on the TV has us reaching for the off button.

But, even setting aside our own musical preferences, we’re staggered at the level of furore surrounding the “will they, won’t they” project to demolish the birthplace of the band’s former drummer, Ringo Starr.

For one thing, the house in question was Ringo’s home for the first three months of his life – Even he doesn’t remember the house. And for another, is the band’s court jester – a man of whom John Lennon famously said “best drummer in the world? He’s not even the best drummer in the Beatles – really considered to be on a cultural par with the likes of William Shakespeare.

The fact that members of parliament are now becoming embroiled in the debacle – particularly when the country is getting comfortable in the hand-basket that will transport it to its final destination – is further evidence that government is out of touch with the genuine needs of the people it is supposed to serve.

Market report dismissed as scaremongering now proving horribly accurate.

Every few years, market research specialists Plimsoll Portfolio Analysis turns its all-seeing spotlight onto the UK demolition market to produce a detailed report on the prospects for the country’s 800+ contractors. And each time, the launch of the report is accompanied by doom-laden headlines of the type that make us all want to pack up and go home.

Back in July 2009, the company’s report said that 255 UK demolition companies were aggressively chasing sales at the expense of prudence; that 251 companies were in financial difficulty and would struggle to survive; and that competitive pressure was so intense that a third of demolition companies were running at a loss.

At the time, many dismissed the findings of the report as a form of scaremongering designed purely to encourage UK demolition contractors to part with the £300+ to find out what the report said about their company. Indeed, we will readily admit that we were slightly dismissive of the report which claims to analyse almost 800 contractors when our statistics suggest that there are only around 500 genuine demolition companies operating in this country.

But with the collapse of Controlled Group last year and Armoury Demolition at the beginning of this, the foreboding laid out in that report almost two years ago is beginning to look worryingly accurate. Indeed, if feedback to DemolitionNews is anything to go by, the demise of Armoury may yet prove to be the first of many.

Back in July last year when we exclusively reported on the failure of Controlled Group, our mailbag was fit to bursting with emails saying how sad it was that such a well-established company should fail. Regardless of the circumstances, Controlled Group’s demise was met with a mixture of surprise and sadness.
How the industry landscape has changed. Since we first indicated that all was not well at Armoury, our telephone and email inbox has been an almost constant source of doom and gloom with many predicting that there are “many more“ demolition companies teetering on the very brink of the economic precipice. And in addition to being the busiest ever day at our sister website demolition-jobs.co.uk, yesterday’s search terms here on DemolitionNews.com are equally telling. The most common search term bringing readers to the site, not surprisingly, was Armoury Demolition; second was demolition + administration; third was demolition + receivership.

Equally worrying is that there is no obvious end in sight. There are no more 2012 Olympics to ride to the rescue of an ailing industry; no promise of a post-election feel-good factor to sweep away the debt of the previous government; no promise of a drop in the VAT rate to restore consumer confidence.

Yet that, potentially, is just the tip of the iceberg. If, as some have suggested, the collapse of Armoury was caused in part by the sudden and unexpected withdrawal of bank lines of finance, a worrying precedent has been set. Based upon recent experience, it is plain to see that no-one in the field of commercial banking has ever been guilty of an original thought; they merely follow the herd. And if Armoury’s bankers have hit the panic button and pulled the plug, they may have triggered a chain of events that could shake this industry of ours to its very foundations.

What are your feelings on the short-term outlook for the UK demolition market? Please click here and pop over to our Forum and let us have your thoughts.

KDC Contractors starts work on demolition of Welsh landmark block.

Preparations are due to get under way to demolish a 41-year-old landmark block of flats in Wrexham. Contractors will begin clearing Hightown Flats and securing the site before demolishing the buildings.

They will be replaced by houses as part of Wrexham council’s aim to build more than 2,000 affordable homes by 2021.

The council gave notice in 2009 that it intended to demolish the flats, which it said needed “major repairs”, some of which were required “without delay”. Under the demolition notice, the local authority has until December 2014 to complete the demolition. It is not clear when demolition work will begin.

The council is preparing to hand over ownership and responsibility for the site to KDC Demolition Contractors.

Read more here.

Armoury Demolition has issued an official statement on its administration.

Earlier today, we exclusively reported that Midlands-based Armoury Demolition had called in the receivers. While the specific reasoning behind this shock decision remains shrouded in mystery and conjecture, the company has issued an official statement which we have reproduced (below) in full:

On 23rd December 2010, Armoury Demolition and Recycling Ltd (“the company”) entered into administration pursuant to an order made in the Birmingham High Court under reference 8596 of 2010. Appointment of the administrators, Harper Cavendish, was made by the Pension Scheme of which Legal & General Assurance Society Ltd is a trustee pursuant to their fixed and floating charge debenture over the business and assets of the company. The Pension Scheme is represented by Pinsent Mason LLP solicitors.

For further nformation, please contact Stuart Garner or Jason Groocock at Harper Cavendish on Tel: 0116 242 5100.

Demolitionnews.com calls for centralisation of utility service disconnections

Gatherings of demolition professionals are remarkably predictable. More often than not, they take place in or near a bar; they almost always include a fair degree of light-hearted, inter-company abuse; and sooner or later, someone will express their frustration over utility service disconnections.

The disconnection of services is an age-old issue that has plagued UK demolition contractors in general and members of the National Federation of Demolition Contractors in particular for as long as anyone can remember. Just about every demolition contractor worth his salt has been left twiddling his safety-gloved thumbs while an uninterested and unhelpful gas company takes three months to shut off the gas and collect the meter, allowing the demolition crews to belatedly start work.

Indeed, the problems and frustrations associated with the disconnection of services are so acute that current NFDC president David Darsey actually made addressing the issue a cornerstone of his two year stay in the federation hot seat. The fact that the problem remains is certainly no reflection on the effort that Darsey and the NFDC team has put into finding a suitable solution.

However, even though this is an issue that could be resolved with a simple directive from a gas industry ombudsman, it is perhaps wrong to suggest that the UK demolition industry is totally devoid of responsibility in this long-running saga.

The gas supply companies have no interest whatsoever in severing a gas supply. They make their money (and keep their shareholders happy) by installing new services, not by removing old ones. If the shoe were on the other foot, I think it’s fair to say that most demolition companies would also allocate disconnection of service requests to the “when we get around to it” file.

And then, of course, there are the intermediary companies that are licensed to carry out such disconnections; companies like PN Daly.

But do we really give them a fair crack of the whip; or does the UK demolition industry’s insistence on shopping around in the possibly vain hope of saving £1 mean that these companies are never able to invest sufficiently to provide the levels of service its demolition customers demand?

I am not suggesting for one moment that all gas disconnection services are handled by a single company. Let’s face it, the Monopolies & Mergers Commission would almost certainly have something to say about it if they were.

But surely if this vital work were funneled through just a few specialist companies, those companies would be able and more willing to invest in a national call centre with guaranteed and consistent contact points and pre-agreed pricing levels. And, just perhaps, those companies would be able to reduce the current waiting time from weeks and even months to just a few days.

With the recession continuing to bite hard, there is little doubt that UK demolition companies will be forced to shop around for best value on all their products and services. But all the time the gas disconnection business remains diluted among dozens of companies, each clamouring for a slice of the action, the chances of service levels improving remain, at best, supermodel thin.

Demolition of historic Chessington pub set to restart after new developers found

Demolition of a Chessington pub is set to restart months after work ground to a halt when the developer went bust.

John Laing Partnership, which was working with Paragon Housing to redevelop the Harrow into three blocks of flats, went into liquidation before Christmas. The demolition company downed tools after learning it may not be paid.

Chris Whelan, development director for Paragon Housing, said: “We have been working with the administrators to identify a new developer. Those negotiations are at an advanced stage and should be completed next week. All being well, we would certainly start by the end of January.”

Read more here

Leading Midlands demolition contractor calls in the receivers.

It may be the beginning of a New Year but it appears that the economic tribulations that plagued our industry in 2010 have no intention of going away quite yet.

Just before Christmas, we heard word that all was not well financially at Armoury Group, a leading Midlands-based demolition contractor. At that time, a combination of the festive holidays and an ominous silence from the company itself prevented us from speculating on the likely outcome.

However, a short phone call this morning (which was curtailed by a clearly frustrated telephonist hanging up on us) has confirmed that the company has called in the receivers. No further details are currently available.

As with all stories of this type, the collapse of Armoury is surrounded by rumour and speculation. Some stories suggest that the company’s financial ills stem from a single contract that went awry; other suggest a backlog of outstanding debt.

Whatever the truth – and we will be following the story closely – the UK demolition industry has lost another good demolition contractor, and some very experienced demolition professionals are starting th New Year with no job.

Through our sister website demolition-jobs.co.uk, we will be doing our best to assist employees impacted by Armoury’s demise.