BAA Airport Construction Project Deal Delayed
It has emerged that airport management firm BAA has put off a key construction-related decision until Spring next year. The decision relates to airport projects with a value of over £9.5 billion, and involves the selection of prime contractors within the building trade to carry these out. In the frame are Balfour Beatty, Laing O’Rourke and Ferrovial – the Spanish parent firm of BAA – among others. All will now have to wait 10 months longer than originally anticipated for this hugely significant decision to be made, by which time, they will have been involved in bidding for over a year.
The delay has been linked to a current review in respect of price measures at London Gatwick and Heathrow Airports, which is being undertaken by the Civil Aviation Authority (CAA).
In total, nine firms are involved in the bidding: Laing O’Rourke, Carillion. Ferrovial, Morgan Ashurst, Balfour Beatty, Taylor Woodrow, Mace, Skanska and Costain.
Consequently, the contractors have been advised that the key decision relating to BAA’s framework will not be made until the completion of this review. However, some information is now available regarding individual assignments.
Current understanding has it that Ferrovial and Laing O’Rourke will collaborate in respect of the construction of the new Heathrow Terminal to take the place of Terminals 1/2 once Terminal 5 becomes operational next year. Entitled Heathrow East, the £1.5 billion building’s design was undertaken by Foster + Partners. Its construction will, it is anticipated, commence in two years time, with a view to it opening in time for the London Olympics in 2012. Regarding the Midfield Pier linking Heathrow East to other parts of the UK’s prime airport site, Balfour Beatty is the named mentioned most often here.
Elsewhere, it was announced in the past few days that Carillion will build T5c – the satellite establishment to be linked up to Terminal 5. The contract value is £300 million.
A source with close ties to the bidding stated: “BAA won’t make formal announcements, but more projects will be handed out before the end of the year.”
Construction International will naturally provide unrivalled coverage of the latest developments as we get the facts.
Source – Construction International’s London Reporter
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