Major client blames construction bosses for time wasted - BAA slams managers - Contractors criticise BAA 'bureaucracy'

Contractors and consultants are heavily critical of BAA's management personnel and internal bureaucracy.

A director of a top national contractor recently told CJ: "I think it is very rich of BAA to be lambasting the industry about world class performance. They need to look at their own people.'"

A major QS, signed up as one of BAA's framework suppliers, agreed: "BAA came from a background of public sector bureucracy and had to adapt to the commercial world. But the same people are there. The organisation is rigid and there are great layers of responsibility you have to go through."

The source criticised BAA's prequalification procedures as "over the top". 'It's a classic example of the form-filling mentality. But if you are a successful frameworker, it's the last thing you want to criticise." Management is to blame for much of the time wasted by workers on construction sites, according to BAA. Studies on two of BAA's major projects have revealed that site employees were idle for up to 60 per cent of the working day.

The findings came out of BAA's drive to improve efficiency. BAA wants to go beyond the much-heralded cost saving of 30 per cent and halve construction costs.

Simon Murray, md of construction at BAA, said about the research findings: "The two projects were both regarded as being well-managed sites. The conclusion has to be that inadequate direction and management of work is an important contributor to the waste of man-hours.

"We undertook a half-hourly measurement of what everyone was doing. In effect we recorded the number of man-hours wasted, finding that the figure can range from 20 to 60 per cent."

Murray is charged with achieving major cost reductions in BAA's capital spend. Since privatisation, BAA has invested œ3.8 billion in airport infrastructure. A new 10-year programme involves a further capital spend of œ4.4 billion.

He said the 30 per cent cost savings were wanted by the end of the decade but the eventual target is 50 per cent. "We've made a good start. The challenge is to achieve five per cent annual savings, year on year, until we get there," he said.

Murray said that the new Framework Supplier Agreements are a great success. BAA is tracking cost performance on comparable projects such as offices and pavements.

The research has shown that concrete pavements which cost œ50 per 55/m2 on average to construct in 95/96, were only œ40-48 m2 last year.

"With framework agreements, we're not talking of cutting margins, but taking waste out," Murray said.