Bovis' reputation is cornering the shopping market

There's nothing to beat having a good reputation with clients because a good reputation spreads. Bovis would be the first to vouch for that.

The company is enjoying a œ1 billion flush of shopping centre work thanks to the reputation it gained on a number of major retail projects.

Among them are included Meadowhall, Sheffield, the pioneer shopping centre which opened in 1990 and has since served as a role model for others.

The good vibrations have been felt most by Dennis Bate, a Bovis director with a seat on the group's main European board. Bate heads Bovis's north of England and Scotland teams and it was he who led the construction of Meadowhall.

"Recently we have won virtually every major shopping centre going," says Bate, spelling out an impressive list which reads: Bluewater, Kent (œ350 million); Trafford Centre, Manchester (œ195 million); Cribbs Causeway, Bristol (œ130 million); Braehead, Glasgow (œ190 million); and the Buchanan Centre, also in Glasgow (œ100 million).

out-of-town

"The main reason for so many all happening at once is Government legislation which makes it harder to secure planning consent for out-of-town shopping centres," he explains.

"Former Environment Minister John Gummer's planning regulations have been the catalyst and, as a result, all those with planning permission have moved forward quickly. And, as they may be the last ones, the retailers want to move in fast.

"Bovis's retail reputation stems from our extensive experience in the sector and particularly the success of Meadowhall. The client for Bluewater, for instance, wanted experience and this influenced our selection. The Trafford Centre developer also singled us out for the same reason."

So is Bovis bubbling simply because it has mastered the construction management approach? Not at all, insists Bate. In fact there is quite a wide variety of forms of contract being used by shopping centre clients:

lBluewater - construction management

lCribbs Causeway - lump sum

lTrafford Park - management contracting

lBuchanan Centre - construction management

lBraehead - design, manage and construct

"There is no one best method," says Bate. "The most appropriate form of contract will depends on the client's approach and experience.

effectively

"For construction management to work, for instance, the client has to be able to administrate effectively. Lend Lease, the Australian group developing Bluewater in Kent, work that way - they are experienced in the construction management approach," he says.

"Cribbs Causeway, by contrast, is a lump sum contract, as they had a considerable time to plan the construction programme. Cribbs was the first of its kind when it started and the client felt it could get a better deal working that way. It was a very competitive time. We finally won Cribbs through a two-stage lump sum negotiation."

flexibility

At both Bluewater and Trafford Park, pressure on time meant that Bovis started on site without the final details of the projects having been designed, a move which calls for considerable flexibility and confidence in the contractor's ability.

Bate cites the Manchester Ship Canal as a particularly enlightened client. He recalls: "It wanted a construction partner to build Trafford Park and having looked at Bovis's Meadowhall team said, 'I want those people'. It can be taken as read that such a client expected its contractor to make a profit."

capitalised

While Bovis has capitalised on its opportunity, the original Meadowhall development wasn't all plain sailing. Bate recalls: "One project manager advised the banks not to finance it, arguing that the budget was too tight and the costs were underestimated. Despite this, the scheme went ahead anyway."

Afterwards, Bovis gained great credibility from an independent cost consultant's report showing that Meadowhall cost up to 40 per cent less to build than Lakeside Thurrock, a similar development built at the same time.