Skanska has been replaced by Mace on phase two of the Battersea Power Station redevelopment.
More from: Mace replaces Skanska on Battersea phase two
Statements released by the client – Battersea Power Station Development Company (BPS) –- and Skanska said both parties have “mutually agreed to end their association” on phase two of the development this autumn.
BPS also announced that Mace had taken over on phase two as construction manager.
BPS said in its statement that “an alternative construction management procurement route would better suit the next and continuing phase of the works”.
It continued: “As a result, BPS and Skanska UK have decided that the remainder of the works will not be carried out by Skanska UK and the existing contract will end in the autumn.”
Skanska has so far delivered the first stage of works for phase two, including: site preparation; enabling works; aspects of the chimney deconstruction and reconstruction; piling; substructure works; and enabling works to the main boiler house and the associated groundworks for the main energy centre.
Construction News revealed in September 2014 that Skanska had been chosen as the preferred bidder for the £600m phase two of the development. Since 2014 the costs of the work on phase two have risen to £1.15bn.
The contractor had fended off competition from other bidders Balfour Beatty, Lendlease and Mace to the deal.
Mace previously worked on phase two of the development and conducted early preparatory works on the power station in 2013.
This marks the latest in change of contractors across the 195 ha development.
Mace battled it out against contractors including Sir Robert McAlpine and Carillion for phase three of the development after Bouygues announced it was exiting the scheme in March this year.
Bouygues had revealed in a joint statement with client Battersea Power Station Development Corporation that it would not take phase three beyond the scope of the preconstruction services agreement.
Construction News revealed in May that Sir Robert McAlpine had beaten its rivals for the £1bn phase three contract.
McAlpine will build 1,300 homes and a new high street, known as Electric Boulevard, offering 350,000 sq ft of retail and food outlet space.
BPS chief operating officer Simon Jenner:
“Mace joins the project with an outstanding track record of successful delivery of major construction projects in London, throughout the UK and internationally.
“Mace has presented a first-class team and I look forward to working with them as we continue to deliver this incredible project.
“This contract, combined with the recently awarded construction management contract for phase three of the scheme, will deliver one of Europe’s largest urban regeneration schemes in recent history and is itself the largest single private building contract awarded in the UK.
“On behalf of the Battersea team, I would like to thank Skanska UK for their involvement to date.”
Skanska UK chief executive Gregor Craig:
“Skanska UK and BPS have jointly agreed to part ways at this stage in the power station works and our efforts are now focused on enabling BPS to complete the transition as effectively as possible.
“I would like to thank the BPS shareholders for their support during the last two years.”
Mace chief operating officer for construction Gareth Lewis:
“After working closely with the Battersea Power Station team during 2013 and 2014 on the engineering and the reconstruction of the power station’s distinctive chimneys, we are delighted to be awarded such a landmark project.
“[This] will be one of the most high-profile and complex projects in Mace’s history; a once-in-a-lifetime opportunity to be part of the regeneration of such a key part of London’s heritage.
“We are looking forward to working closely with the BPS integrated team to deliver a world-class regeneration scheme.”