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BAA says Ferrovial will keep hands off frameworks

Airport operator BAA last week moved to reassure framework suppliers that its new owner Ferrovial would not interfere with its 10 year, £9.5bn infrastructure spend.
'They [Ferrovial] do not see BAA as a broken company so they do not need to fix it,' said BAA divisional director Mike Temple (pictured) as he launched a new procurement strategy.Temple explained the new strategy was the result of 18 months of discussions with suppliers and, in part, a reflection of lessons learnt on T5. The new frameworks will be introduced over the next 12 months. The procurement of design and engineering consultants for all projects remains unchanged and will continue as five to 10 year framework agreements.Changes will be seen in three other categories of work: complex projects, commodity projects and technical/business critical systems.In complex projects, such as Heathrow East and Stansted Generation 2, there will now be 10 year frameworks created for the first and critical second tier suppliers and detail design consultants. It is hoped early supplier involvement will encourage collaboration on these projects. Commodity projects, such as car parks and minor refurbishments, will have frameworks of just three to five years with a greater number of suppliers. However, risk will be in the hands of the supplier.The last is for technical/business critical systems, such as fire alarms and baggage and security systems. Temple said that 10-year frameworks could also encourage more innovation in areas such as rapid security scanning. 'There has been little in the past to drive innovation in this area but a long-term relationship with the supplier will give reason to developments of whole new systems or massive improvements to existing systems,' said Temple.The £9.5bn of investment is still planned for the next 10 years and will remain spread across the same projects. Temple said a planning application for Heathrow East should be submitted by the end of the month but gave no firm timescale for Stansted. 'Nobody knew Heathrow East was going to be done a year ago. It's too difficult to predict that far ahead,' he added.

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