ON THE RIGHT TRACK

After its success with the Bandon Road project, Clancy Construction is on a mission to drive the use of MMC in the Irish construction sector

Earlier this year, Tipperary based Clancy Construction announced the opening of a new office in Cork, its third location across the country. Employing 50 full-time staff, the new Cork office follows the construction firm’s successful completion of a number of projects in the city, including a 554-bed student accommodation project on Bandon Road which was fast-tracked using modern methods of construction and a 30-bed ward extension at the Mercy Hospital last year. The company is also working on several residential projects in Cork including a social and affordable housing scheme in Boherboy Road, 30 social units in Blackrock and a housing development in Tower for Clancy Quality Homes.

Business is good for Clancy Construction, not just in Cork but in Dublin and other areas across the country too. “Going into 2023, there was a certain amount of apprehension due to the war in Ukraine and hyperinflation. It seemed like a lot of confidence had gone out of the market, but that confidence has slowly come back. Our order book is healthy and although we’re on the lookout for another big flagship project like Bandon Road, we’re in a good place,” said Des Riordan, Associate Director at Clancy Construction.

In August 2022, Clancy completed the SHD student accommodation project at Bandon Road in Cork. The project comprised 77 apartments consisting of 554 bed spaces spread across five blocks, supported by ancillary services and amenities. It was a job that some in the industry felt was too big for the construction firm. “I think there was a feeling that we would fail to deliver the project. We’re a successful tier two construction company and this was a very large project. People were asking, was this a bridge too far for a company like us. However, we proved the doubters wrong and in turn gave ourselves the confidence to believe we can achieve anything we put our minds to.”
Out of Bandon Road came the Mercy Hospital project along with a number of social and affordable projects. “In 2021, we had six tower cranes across the Cork skyline. The decision to establish an office in Cork was down to these projects and the fact that Cork is the fastest growing city in Ireland. Historically, Cork is a difficult area to break into, particularly for non-Cork construction companies so opening an office in the city is really all about cementing our position there and capitalising on the connections that we have made.”

Over the years, Clancy has completed a number of projects for the HSE. At the start of Covid, the firm was approached by the HSE to build two fast-track projects in Croom and at University Hospital Limerick. Completed in less than 16 weeks, the two projects have led to further HSE work and once again showcased the firm’s capabilities and eagerness to embrace modern methods of construction

Although confidence is returning to the market, it’s a slow process. Less projects mean more competition, which in turn means tighter margins. “Contractors are competing for a smaller number of projects and that’s leading to squeezed margins. Hyperinflation has abated somewhat but gouging is still going on and prices aren’t coming down as quickly as maybe they should be. Projects are also being stalled for various different reasons and when you’ve invested three or four months of time, effort and collaboration into a project that doesn’t move forward, it can be very frustrating.”

Staffing continues to be an issue but partnerships with various universities is helping to fill in the gaps, says Des. “A lack of apprenticeships has led to a shortage of trades, while newly qualified engineers who go abroad with the intention of returning after a year or two must find it difficult to justify moving back due to housing shortages. Partnerships with WIT and UCC have helped us to recruit graduates and we’re currently in talks with MTU to see if we can put a new partnership in place. It’s a process that has proved very beneficial but it does require a lot of work on both sides to make it work.”

Clancy Construction began operating as a family business in 1947. That ‘family’ culture is one the company is keen to maintain today. “After the crash, we wanted to differentiate ourselves. Saying our ethos is rooted in family is one thing but we needed to able to demonstrate and prove that. We went on a Lean journey which everyone in the company got involved in. We regularly participate in green belt or yellow belt training in Last Planner system, which I think is a real differentiator for us. It enhances our professionalism and creates certainty around delivery.”

Clancy is also a founding member of MMC Ireland, a group established in 2022 to develop and promote Ireland’s MMC sector. “We use modern methods of construction across many of our projects. For example, we employed MMC extensively on the Bandon Road job – we used a light gauge steel structural frame from Horizon Offsite, bathroom pods, stairs and raft reinforcement, designed and coordinated through BIM systems. That all helped improve precision, reduce waste, lower the carbon footprint of the project and finish it to a very high standard.” The model of construction meant that an individual apartment block of five to six storeys high was constructed and weatherproof in an 18-week period, with the internal finishing cycle taking just 16 weeks.

The family-owned company was also the first construction firm to secure approval under Enterprise Ireland’s ‘Built to Innovate’ initiative, which aims to achieve faster, higher quality construction of housing by providing funding supports for productivity training, innovation and the introduction of digital, paperless systems. A new in-house sustainability department at Clancy Construction is helping to drive MMC across its projects. “When it comes to MMC, we’re one of the more forward-thinking contractors in Ireland but it’s a bit like electric cars; the infrastructure isn’t fully mature yet and there are a lot of hurdles to overcome. We’re going in the right direction though and the use of MMC is changing the industry for the better.”

Right now, Clancy is working on a number of social and affordable projects and is wrapping up on two theatres at Mercy Hospital. Design work on a recladding project at CUH has just commenced and work has also started on a private housing development in Blarney. Pharma is a sector the firm is planning on targeting next. “We dipped our toes into pharma a number of years ago and while it was successful, we didn’t push further. It’s a growth sector we’re definitely interested in, but it’s also a space that requires a different mindset. It’s very process and safety driven and requires everyone involved to adopt a methodical approach. We’re currently in discussions with the leading pharma players in Cork; next up will be about picking the right team with the required mindset. It’s a sector with great longevity for contractors that can do the job and do it well.”

Going forward, the ambition at Clancy Construction is to secure larger, more ambitious projects that demonstrate the firm’s capabilities.

“At the moment, our turnover is just under €100 million. Over the next few years, the target is to reach €130 million. A lot of people aren’t familiar with Clancy Construction so we’re working hard to get our name out there and ensure people know us as an innovative contractor that’s built on partnership. The construction industry has, at times, gotten a bad rap. We want to change the narrative and help people understand that construction isn’t the dirty industry it’s perceived by some to be. It’s an innovative, highly skilled sector that can and does give so much to society.”

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Michael McDonnell Managing Editor of Irish Construction Industry Magazine & Plan Magazine

Email: michael@irishconstruction.com      WWW.MCDMEDIA.IE