Special Report - Built Environment

Sep 14 2006 North East Vision

Breaking new ground in the construction industry

Whelan Construction Development is a Newcastle-based company that has been involved in the commercial and industrial construction industry for almost 35 years. It's a firm that boasts a solid reputation and is synonymous with high quality.

Over recent years, the company has grown phenomenally and now sits within the top 2% of independent construction firms in the region.

A modern approach for a traditional firm

For a firm that has a deeply embedded family culture, Whelan has proved that innovation is the key to success.

During the last two years, the company has completely overhauled its entire operations and put in place a raft of new initiatives and strategies - a risky move for a firm that has succeeded on its tried and tested methods.

However, the results speak volumes and, following a series of industry award wins, an order book increase of 50%, office expansion and relocation plans, Whelan is well on the way to becoming the `model' construction company.

Expansion Strategy

Work has already begun on Whelan's new headquarters, which in Gosforth Business Park, Newcastle, where the firm will join the likes of TSG, Parkdean and BT.

The new premises will provide 10,000sq ft office accommodation, with specially designed workspaces, state-of-the-art communication systems and integrated technology.

The added resources will enable Whelan to cope with increased workload and larger projects.

Qualification Strategy

Significant investment in staff learning is a critical component in the Whelan expansion plan. Annual assessments and reviews, along with succession plans and substantial involvement in external educational courses are a priority in terms of staff development.

Training and Skills Strategy

Whelan have recently purchased premises, which have been modernised and adapted specifically for training purposes.

Working with local educational institutions and government bodies, the firm has developed a career path for school leavers that not only provides all the up-to-date training required to ensure a high level of skill, but also offers the opportunity of a job upon completion.

Benchmark and Innovation Strategy

Report, review and innovate - that's the basic 3-step procedure to continuous improvement at Whelan.

However, Bill Swan, managing director, says: "To assess internal operations is only half the job, as that can only highlight strengths and weaknesses.

To really appreciate how you perform, you must look to how the industry is performing on a national level, and how a firm can develop newer ways of working that will raise quality standards throughout - not just at the physical construction stage.

Our philosophy has always been to stick to the basics - delivering high quality, on time and to budget.

That still holds true, however, in an industry that is becoming commoditised we provide value by passing on industry know-how to benefit the client throughout the entire relationship. It's much more about project management and consultancy, and the overall service that Whelan provides that gives us the competitive differential".

Onwards and upwards

Despite the skills shortage that inhibits the construction industry, Whelan has moved forward with strides where other firms have barely managed steps, and with the construction market expected to remain buoyant all indications are good for the Newcastle-based firm as it continues to evolve and prove its worth in a highly competitive market.

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SHG is building big changes to develop better communities

During the last five years, the skyline of Sunderland has undergone a radical transformation. Large-scale regeneration projects have raised the profile of the city and attracted more people to live and work in the area.

Sunderland Housing Group (SHG) can justifiably say that it has played a significant role in this transformation.

Established in 2001, the group has already invested over £320m on modernisation and improvement works and, through the formation of a specialist construction arm, is set to work on a number of exciting regeneration projects both in Sunderland and beyond.

SHG was established via the transfer of 36,356 properties from Sunderland City Council, following a 73% ballot turnout with 88% approval from its customers. This is currently the largest stock transfer to date in England with the most positive tenant endorsement of any metropolitan urban area.

The group consists of five local housing companies that own the housing stock in their respective areas. Each of these companies is responsible for the landlord function, liaison and support to customers as well as local budgets and business plans.

The facts illustrate just how influential SHG is to the formation and delivery of housing strategy in Sunderland.

The city is the largest of the five Tyne and Wear local authorities with a population of around 284,000, and although its population has decreased during the last 20 years, there are definite signs that this loss is slowing. SHG is by far the dominant landlord in the city and currently owns 84% of the affordable housing stock and 27% of Sunderland's overall housing stock.

Dave Piggett, director of design and build at SHG, said: "As we developed our knowledge of local areas and customers' needs, it became clear that in some areas of the city, there were long-standing problems with unwanted housing and problems associated with multiple deprivation and neighbourhood decline.

We have responded to this by developing a wider agenda and we have added regeneration and renewal to our key promises to customers.

"People who live in the city will tell you how vibrant the place is compared with 10 years ago. However, we are not resting on our laurels and we have a number of exciting investment plans in the pipeline."

This last comment is no idle boast. Dave, who has worked with the group for a number of years, is responsible for overseeing its annual £60m investment programme and the effective running of the construction arm.

As well as driving forward the investment plan, the construction team is one of the main contractors who deliver work for other divisions of the group.

Firstly, it is responsible for building new homes across the city on behalf of Pathway Homes. In addition, it is the main contractor working with Emperor Property Management on refurbishing Sunderland's prestigious Maritime Building; building a new tower block consisting of residential and commercial property in the £9m River Quarter scheme (part of the Sunniside project in the east end of the city); and working on a £3.8m project on High Street West in conjunction with RAN, an Irish development company.

In addition, SHG is keen to broaden its horizons by seeking work outside of Sunderland. For example, the construction division is building 27 new properties in Carrville, next to the A1(M) in Durham.

SHG is also lending its expertise to the likes of Home Housing in Cramlington and Erimus in Middlesbrough by delivering a number of jobs for them.

Dave said: "It is vital that we pool our skills and resources to help build sustainable communities across the region. Increasingly, companies in the built environment are forming unique and productive partnerships with each other. It's important that more companies do this so that the North-East can continue the renaissance it has enjoyed during the last few years.

"From our own point of view, we are looking to work with other communities in the region and our specialist construction division will allow us to do just that.

"During the last few years, the North-East has experienced significant changes in the local housing market, with rising house prices and increased demand for affordable homes from would-be first-time buyers."

Indeed, building sustainable communities is at the very heart of SHG's agenda. However, this involves much more than simply bricks and mortar and the group has made a positive difference to local residents via other means.

These include the implementation of a rigorous anti-social behaviour policy in partnership with Northumbria Police and the formation of 11 focus groups to allow residents to have a greater say in how their community is run.

The first five years of SHG's existence has seen the group make a positive difference to the city of Sunderland. But the next five promise to deliver an even bigger impact, especially if the group's ambitious investment plans are anything to go by.

Either way, it seems that SHG is determined to play a prominent role in changing the skyline, not just of Sunderland, but of the whole of the North-East.

On page 6:
Progress through our people plus Elliotts team is strengthened