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26/10/2012

Balfour Beatty To Transform Construction Services UK Division

Responding to customer requirements and strategic priorities, Balfour Beatty is transforming its Construction Services UK division into a more agile, more efficient and more customer-focused business.

From January 2013, the business will integrate its six existing operating companies into one business, delivering its capabilities through three integrated business streams:

•Major Projects – focused on larger projects aligned to chosen sectors including power and transportation

•Regional – delivering flexible civil engineering and construction services from regional hubs and UK-wide local delivery units, aligned to chosen sectors

•Engineering Services – providing mechanical and electrical services across all regions in chosen sectors

As part of this reorganisation, the division is centralising its support functions such as HR, finance, procurement and IT, to drive business efficiency whilst at the same time adopting common business processes. Investment is also being made in the property estate by rationalising and co-locating offices to create working environments that encourage collaboration and knowledge sharing.

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These changes will facilitate the creation of a more integrated and collaborative supply chain to help drive innovation across the project lifecycle.

Mike Peasland, Construction Services UK Chief Executive Officer has appointed a strong executive team who, in turn, have put in place sector and regional leaders to increase market share, specifically in key growth verticals and maintain a strong regional presence.

The executive team includes:

•Bob Clark who will lead the Major Projects business stream as Managing Director supported by Stephen Tarr as Executive Director

•Steve Waite who will lead the Regional business stream as Managing Director supported by Rob Walker as Executive Director

•Dave Donaldson who will lead the Engineering Services business stream as Executive Director of Engineering Services supported by Phil McGuire as Managing Director

From January 2013 the business will present itself to market in a simpler way, reducing its core brands from 15 to 7 with the majority of activity to be delivered by the Balfour Beatty brand.

Sub brands that are valued in their specific markets will be retained; ground engineering and mechanical and electrical engineering services will continue to be delivered through Balfour Beatty Ground Engineering and Balfour Beatty Engineering Services respectively. Birse Civils and Raynesway Construction will be retained for specific civil engineering customers while Mansell and OPL will remain as names for regional building and interior fit out capabilities respectively.

Mike Peasland, Chief Executive Officer, Construction Services UK said: "2013 will be a pivotal year for us and these changes will help us to focus even more on what we’re known for – delivering innovative, quality projects. Our transformed structure will help us to realise our four strategic priorities; engaging our people, becoming partner of choice, building on our trusted brand and achieving operational excellence. We’re looking forward to offering an even better service to our customers, partners, employees and the wider society for whom we build."

(CD)

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