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BAA to axe three construction partners

AIRPORT owner BAA is planning to jettison at least three construction managers currently signed up on partnering deals.

The firms to lose out will be picked from Amec Design & Management; Bovis Lehrer McGovern; Heery International; LMK Joint Venture; Mace; Schal International Management and TCC.

BAA construction director Andrew Wolstenholme will inform the unlucky contractors at the end of next week.

Construction managers contacted by Construction News were in the dark about which would get the chop.

One said: 'BAA is being very quiet about it all. We have no idea and await the news with interest.'

Mr Wolstenholme said the firms would be allowed to finish their work on site but would not be offered further jobs when their five-year contracts run out in August 2001.

The contractors are the latest victims of a purge on framework suppliers, which BAA aims to reduce in number from 75 to about 35. BAA's axe will fall next on firms working on mechanical and electrical, structural engineering and planning supervising frameworks. They will be told their fate at the end of February.

Last month, BAA halved the number of cost consultant partners from eight to four.

Mr Wolstenholme said that a quarter of BAA's 160 in-house project managers would lose their jobs over the next two years as a result of the changes.

The purge has been sparked by a fall in BAA's projected construction spend in 1999/2000 from £450 million to £350 million, caused in part by the stalling of Heathrow's Terminal Five project.

Mr Wolstenholme said reducing the number of suppliers would mean framework firms would get a steadier workload and make savings through repeat work.

He also revealed that BAA intends to group its suppliers in four 'clusters', dealing respectively with shell and core, fit-out, infrastructure and baggage systems.