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Managers blamed for poor basics

OUTGOING Amec chief executive Sir Peter Mason has blamed his management team at the group's UK construction business for a series of blunders which have cost the company millions.

Amec is spending £50 million on provisions relating to a number of road contracts here and in the USA as well as a series of building jobs in this country.

Sir Peter, who leaves the company at the end of next month, said: 'We were taking on projects we should have been nowhere near, such as residential blocks and multistorey car parks.

'The market has not been great but we can't blame the market. The business has not been well managed for the past three years. Management weren't doing the basics such as proper tender revisions.'

He said the firm has lost a 'ton of money' on two PFI road contracts - believed to be the A13 scheme in east London and the A1(M) DarringtonDishforth contract in Yorkshire - plus a handful of building contracts.

All the contracts have claims on them and Sir Peter said the final bill for exiting construction management in the USA and provisions to cover a host of bad jobs will have amounted to £185 million.