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New BAA chief to follow in Egan's footsteps in keeping costs down

NEWS

AIRPORT OPERATOR BAA will continue its battle to cut costs and time on its construction projects after Sir John Egan retires from the company early next month.

Speaking to NCE this week, group technical director Mike Roberts said new chief executive Mike Hodgkinson would be as demanding on the construction industry as Egan in driving costs down on BAA's £400M annual capital spending programme.

'We are still absolutely committed to continuous improvement,' he said.

'We need to invest in our airports to improve our revenue and cope with growth in demand. Our capital programme is robust and we know exactly what we have to do.'

Egan committed BAA to reducing costs and construction time by 10% year on year with a long term aim of reducing both by 50%.

Roberts said procurement improvements meant pavement costs were down 22-23% over two years, predictability of project completion dates was running at 90%, up from 74% in 1995, and speed of construction of a basic office block was down from 46 to 31 weeks.

Over the last five years, BAA has completely reorganised the way it procures its capital works. The latest refinement has been to create four BAA airport teams to work with the four dedicated supplier delivery teams.

The airport teams are led by: Richard Jeffcoate who will focus on pavement construction across all BAA airports; John Murphy, dealing with shell and core; Clive Coleman heading fit-out operations; and Keith Hurd, who will manage baggage handling.

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