Balfour Beatty has replaced Deloitte as its auditor in favour of fellow ‘big four’ accountant KPMG.
Leo Quinn chief executive Balfour Beatty
The group announced that Deloitte’s last audit will be for its 2015 accounts, ending a 14-year relationship.
The decision follows a competitive tender process and will be confirmed pending shareholder approval at the group AGM in May.
Last year, Balfour Beatty hired KPMG to carry out a review of its contracts and bidding process following a series of profit warnings.
In January, the auditor found a £50m shortfall between a selection of contracts’ forecast value and their subsequent performance up to the end of December 2014.
At the time, KPMG said the majority of problems were concentrated in Balfour Beatty’s engineering services, and in London (including major projects) and the South-west, where bidding was often “at very low margins with optimistic assumptions around cost, programme and procurement savings, and inadequate provisions for risk”.
Graham Roberts, chair of the audit, risk and assurance committee at Balfour Beatty, said: “We thank Deloitte for their significant contribution as Balfour Beatty’s auditor over the last 14 years and we look forward to working with KPMG in the future.”