For an m&e contractor to take on prefabricating penthouses might be seen as a leap of faith but for cfes it is all about having the right team. Peter and Mike Fleming talk to Paul Braithwaite.
Last year cfes increased turnover by £6.8M, despite a difficult financial climate, demonstrating that it is a fast growing and developing company.

Peter Fleming, managing director of the Alton, Hampshire-based m&e and specialist construction contractor laughed when I asked him how much he made in his first year in 1984 and said £12,000.

It was a very different business model then, with Peter working single-handedly to maintain the cold rooms for Bejam Group's freezers within the shops and freezer depots. He was later awarded the contract to specify and install new air conditioning equipment at the depots and shops for the entire chain.

Peter saw this as an opportunity to grow the breadth of the business and expand its service offering. He started the business when he returned home from working in Germany, having previously represented the US Army in Iran. His engineering background started with a post as chief engineer with the Cunard Line. This paved the way for his career ambitions and his desire to apply his natural skills and talent to a trade.

From a business that started in 1984 as CF Refrigeration, it has continuously adapted and built on its success. In 1991 the company became CF Environmental Services. However, there was a radical in January 2006 when saw the company became cfes with Rob Doubtfire as contracts director. This established cfes as a fast growing, national, multi-discipline m&e and construction contractor.

'This was an integral transition to the current success of our business model,' Peter comments. 'We are an experienced contractor which continues to grow and evolve across a diverse range
of industries to meet client demands.'

Since 2006, cfes' business has grown significantly and it has acquired an appetite for enhancing its corporate portfolio. This was demonstrated when the company took a medical m&e fit-out company under its wing. Peter identified the overlap and decided it was a sound business based on its 23 years of experience in the market.

The company now operates with four distinct divisions: air conditioning; service & maintenance; specialist projects and medical construction. And each, comments Mike Fleming, Peter's son and recently appointed business development manager, flows and compliments the others.

Obviously, Peter's expertise means refrigeration and air conditioning was the initial driving force for the business with service and maintenance following suit. And until recently he has not actively sold the FM side of the work, relying on a good installation job well done and a 'would you like us to maintain the project?' on the handover. However, the m&e and FM businesses have pushed the envelope.

Mike is very proud of the latest project, which saw cfes specialist projects division deliver offsite penthouse suites in Mayfair and Soho, London. cfes provided a turnkey solution from seeking planning permission, installation of modules through to finishes and handover.
But surely a construction job of this size was a massive leap of faith for an m&e company?

'Not if you have the right people and project management team working in your business,' Peter replies. Before construction work began, a structural back analysis was undertaken in-house to ensure the existing building could take the extra load.

Structural integrity

The architect, cfes and the modular design team worked together to design the steel structure of the new apartment to maximise internal space while ensuring the additional load of the new apartment was transferred through the load points identified by the structural engineer.

Through cfes's strong management team, they were able to work closely with the existing partnered supply chain and subcontractors to deliver a project of this nature.
The penthouse was pre-fabricated in a warehouse before being transported to central London in eight sections.

The company's personal touch and approach are displayed throughout all divisions of the business. For the penthouse apartment in Mayfair, cfes invited the client to the factory to view the offsite construction phase. This enabled him to see the technical construction methods used for the fabrication of the apartment.

'I wanted the client to feel comfortable and confident with the work we had done and to bear witness to the high quality and standard of work he will receive.'
Upon completion, the apartment was rented out by the client at 11% return on investment, having had no capital outlay on the development site.

Before the penthouse could be installed, 16 R22 condensers and one VRF system that had to be removed. Because of the phase out of R22 under the Clean Air Act, cfes safely discarded the old units and replaced them with efficient Toshiba MiNi-SMMS VRF systems within the lightwell.
Dealing with the tenants also takes time and effort, says Mike.

'The company dedicated time to spend with the tenants within the building. There were fund managers occupying the premises who were often engaged in conference calls during the day. I liased with them co-ordinating a programme of work to minimise the inconvenience to their
businesses.'

Keeping everybody happy

He adds that it was in everybody's interest to keep the tenants as happy as possible. Keeping them informed and working within agreed schedules ensured noise levels did not affect them.
The eight units were craned on to the roof with minimum tolerances of 5mm. The work took place in April 2008 on the only day it snowed in London, laughs Mike. Only hours after the modules were installed the single ply roof was made watertight and the pre-manufactured infill panels installed. Because of the high level of finish required for this location, the kitchen and bathrooms were completed on site.

The company was awarded the project because of its comprehensive offsite, bespoke construction experience gained while working in the medical field. It has a further three penthouse units in planning stages for the same client in Soho. So the work it did on the first penthouse seems to have spawned a new revenue stream.

The medical construction division also uses modern methods of construction when delivering medical facilities for both private and public healthcare providers. Whether it is operating theatres, imaging suites, decontamination and sterilisation centres, it offers a complete turnkey package.

'It saves time and upheaval for the hospital and patients. Think of, for instance, how many lorry journeys it takes to deliver all the supplies to the building site and the noise and dirt.'
The medical construction division has recently completed six centralised decontamination centres for Nuffield Health in Wetherby, Tiverton, Cambridge, Warwick, Stoke and Eastleigh.
The first was at Wetherby, which serviced hospitals in the York and Leeds areas. These facilities provide a decontamination and sterilisation service for five further locations, Huddersfield, Harrogate, Hull, Lincoln and Newcastle.

The concept is to bring contaminated surgical instruments to strategically located centres for the equipment to be washed, packed and sterilised before being transported back to local Nuffield Hospitals.

The company finished work on the last of six sites in January. It purchased all major plant equipment for each centre, typically consisting of: steam boilers, 30,000 litre water tank, salt saturators, chillers, oil tank, ahus and standby generators.

'There is a mass of building services and process systems involved in these jobs,' says Peter 'Here, project management was crucial. cfes ran a central procurement list, sourcing and purchasing all main equipment. This enabled us to quote a competitive price and we were able to offer forward the supply order six times.'

However he appreciates that sub-contractors have to make their profit as well, so smaller equipment, such as cabling, fitting, baskets, trays and so forth, is left to them to source.

Taking care of staff

Whether medical, residential or commercial, cfes looks after its employees. The company even rents houses so they live in comfort while they are away from home.
'My wife, Caroline buys new bedding for whichever homes we rent. I have the only builders who sleep under goosedown duvets,' says Peter.

He adds that this care pays dividends. 'Providing them with a house allows for the site team to cater for themselves, relax in a comfortable environment and allows time for personal space.
'It works well and has been beneficial as we have built long-standing relationships with our subcontractors who want to work for cfes again and again.'

Does the credit crunch mean it is harder to fund the construction work? Peter says the business funds the work. The company has a policy of paying its bills on time and this goes for suppliers and sub-contractors too.

The company is cautious when it comes to working for other main contractors, as payment is not always punctual. This, in turn, could have a knock-on effect on the company policy of meeting payment deadlines and this is a position Peter does not want to put the firm in.

But, such is the reputation of cfes that it is able to work directly for many end users, such as several distinguished hotel chains in London. Peter would be the first to agree that from little acorns big oaks grow. They might also add that the acorns have to be nurtured to thrive.
The company is a very successful contracting business and is going places.

Peter will be pleased with the marine analogy - there is a steady hand on the tiller or perhaps he would prefer to be in the engine room!