黑洞社区

Even though the data dials say something different, there is lots going on in this industry for main contractors. There always is. In one week, 黑洞社区 wrote about the following鈥�

Bovis beat Mace to the 拢330m Gracechurch Street tower job for Sellar. The firm needed that win and it might convince other clients to follow suit. While they might be renamed, Bovis is, by and large, the Lendlease of a year or so ago 鈥� just without the Lendlease backing. Which has left some a bit nervous but, sooner or later, one client had to take a punt.

It鈥檚 been written before and worth saying again: Mace and Multiplex can鈥檛 build everything. For the health of this industry, somebody else needs to offer clients looking to develop commercial towers in the capital an alternative.

The Bovis win is interesting for several reasons, not least for the fact that it is bidding the office bit of the 18 Blackfriars scheme south of the river. It鈥檚 being developed by Hines and had been supposed to be awarded by now. That it鈥檚 not might have some a bit twitched but as one involved in the whole process said: 鈥淚t鈥檚 a big decision and they need to get it right.鈥�

It remains to be seen whether the Bovis win for Sellar 鈥� breaking the impression that, rightly or wrongly, those big Sellar schemes tend to end up with Mace 鈥� might have strengthened the hand of remaining rival Multiplex, which is bidding the office tower and two residential blocks.

>> Also read: Slide in construction output eases but jobs-cutting hits five-year high

But whoever wins it, most will be thinking this: get on and award it. Everyone knows jobs are taking longer to award and pre-construction services agreements are being extended but 18 Blackfriars, which has been renamed the Round, is a big one. It鈥檚 not often a 拢1bn scheme is the next cab off the rank but it is and a lot are watching to see which way it goes.

The Bovis win is interesting for several reasons, not least for the fact that it is bidding the office bit of the 18 Blackfriars scheme

Meanwhile, Mace has said it鈥檚 not looking to recruit a new construction director after Andrew Jackson left last autumn just a few months into the role. There鈥檚 bound to be a few disappointed hats that had been thrown in the ring 鈥� it鈥檚 a big job with a big salary 鈥� but chief executive Jason Millett said the firm is managing fine without one. Presumably the message is: if you don鈥檛 need to shell out hundreds of thousands of pounds each year, then don鈥檛.

Shelling out is exactly what Wates has been doing these past few months setting up a new fit out arm, which is being headed by the man who did the same thing at ISG. Speak to anyone and Lee Phillips has an enviable network of contacts in London fit out, forcing Wates to presumably move fast in order to secure his services. That ISG went down in late September and the new business was announced the following month is rather proof of that. The firm has since had glitzy corporate launches, headed off to events at Cannes and Milan and been stocking up on staff.

In other words, lots of resource and manpower has gone into the new business since it was launched last autumn so winning its inaugural job 鈥� a 拢20m scheme for credit rating agency Moody鈥檚 in the City 鈥� will have been a relief. It can鈥檛 comment of course but, like the Bovis win, those at the top will be hoping it鈥檚 the catalyst for more things.

One-time Wates boss, Andrew Davies, who, remember, was let go early to try and rescue Carillion only for it to go belly-up before he even got there, has instead been turning his hand to turning fortunes around at Kier. He鈥檇 never say the job was complete but last week, it raised its medium-term margins target up to 4.5%. For those who鈥檝e been following the firm the past few years, that sort of figure was once unthinkable. It鈥檚 likely to be in a positive net cash position soon. As a reminder, the firm鈥檚 average month-end net debt at one stage stood at close to 拢550m.

So there is still plenty going on in the world of contracting and, happily, plenty to write about. 

Dave Rogers is 黑洞社区鈥檚 deputy editor