Sunley Turriff Construction has outsourced its entire quantity
surveying department to MAS Lothian. Talks are in progress between
Lothian and other leading contractors who may follow Sunley's
lead.
Lothian has signed an agreement to provide QS services to Sunley
for a four-year period. A basic fee of £5 million allows for
adjustments according to workload.
Bob Codling, md of Sunley Turriff, said: "It offers greater
flexibility and will produce cost savings. It is the right move for
us and I see no reason why other contractors shouldn't follow suit.
We chose Lothian because we have a good working relationship with
it."
Sunley Turriff is predominantly a building group, with some civils
workload. Group turnover runs to £120 million, with the
construction business accounting for £85 million of
this.
Hew Lothian said this week: "The move is in line with the findings
of the 'Egan' report, with Sunley showing savings on the deal. It
would have cost them more if they had done nothing."
Lothian established his QS business in 1981. In 1996 it was bought
by the Schofield Group whose main business is QS secondment to
sites and projects. Schofield has 200 fee-earners.
"The move came about mutually," said Lothian, speaking from Hong
Kong where he is about to open a new office. "Bob Codling, and
myself were discussing how we could help Sunley. It took six months
to sort out the details. It's a radical move. We've taken on 35
staff from Sunley - they are all QSs as we only supply a QS
service."
Ahead of the deal with Sunley, Lothian appointed Jenny Hutchinson
to a new position as his company's chief executive surveyor.
Lothian added that he is talking to other contractors at the
moment. "Two or three of the Top 50 contractors might follow
Sunley's lead," he said. "We could also offer the service to a
division within a major group, perhaps if the owner wanted to
separate its buildings business from its civils arm. It is
practical for us to offer such a service."