BAA is half way through a 10 year, £4.4bn construction spend dominated by runway resurfacing at five airports. Around £75M of the annual £400M construction spend goes to the main civils delivery group - the pavement and infrastructure team headed by Amec and Laing.
Most of the 42 construction framework contracts are soon to be retendered. Work on offer includes:
Resurfacing works; Heathrow, Gatwick, Stansted. Runways £55M per year, other resurfacing and infrastructure £20M per year.
Stansted: £60M terminal extension starts this year, plus new £35M satellite.
Heathrow: £75M Terminal 3 improvements, now under way.
Gatwick: £50M terminal satellite with £15M cable stayed bridge link, starts December; £15M aircraft pier, under way; £35M extension of North Terminal passenger lounge, just starting.
Heathrow: £2bn Terminal 5: Inquiry ended 1999, decision expected spring 2001. If approved, immediate start with most of £1.3bn construction spend within first two years.
Business drivers All construction frameworks to aim at 30% cost reductions over five year term.
Pavement team specifically to achieve 30% cost reduction by end 2000. Currently 25% cut and 'on course' for target.
Outturn cost predictability: aim to retain 95%, already achieved.
Outturn time predictability: aim to achieve 95%. Currently 91%.
Safety: Target of 0.1 reportable accidents/100,000 working hours by 2004. Currently 0.42 - three times better than industry norm.
Overall aim to be world's most successful airport operator