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Top contractors form super-league

A SUPER-LEAGUE of major European contractors is starting to dominate higher margin negotiated and privately financed construction, according to a report published by merchant bank Robert Fleming.

Medium-sized contractors will be left to fight it out for lower margin competitively tendered work, the report predicts.

'Super-league' contractors are those which have diversified into construction services, offering facilities management and operating skills as well as traditional contracting.

Kvaerner, Amec, Lend Lease Bovis, Balfour Beatty, Carillion and Laing are the only British contractors in the league, which is led by France's Bouygues.

Flemings says that high bidding costs for PFI and negotiated work mean this will be dominated by 'Super league' contractors.

'A two-tier market is likely to develop, with big multi-national organisations using small groups of contractors,' says the report.

Reconstructed constructors, published by Flemings Research Europe. tel: (020) 7638 5858. website www.flemingsresearch.com

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