Bouygues retail win signals UK expansion

Exclusive by Graham Ridout

Bouygues, Europe's largest contractor, has signalled its intention to become more involved in UK construction by beating off opposition to win a contract to build a 35,000m2 distribution centre in the Midlands.

The French contractor will start work shortly on the distribution centre for its client Computer 2000 at Gazeley's Properties' Magna Park distribution complex near Rugby.

Gazeley Properties' construction director Pat McGillycuddy said Bouygues won the competitively tendered contract against UK and other foreign competition, which included some "lean burn contractors".

McGillycuddy said Gazeley had been impressed by Bouygues' submission, and that it was compliant with all the quality standards laid down for the Magna Park complex. He remarked: "There is definitely something we can learn from seeing how they operate. Bouygues has invited us to become involved in the project and are willing to show us how they manage the development and the processes they use."

He said Gazeley will appoint one of its project managers to "monitor" progress. Prior to winning the contract, which will be undertaken by Bouygues subsidiary Quille, McGillycuddy visited a similar project the firm had completed in Paris.

He said the Paris distribution centre did not have the same quality standards that are required for Magna Park, but added: "It was fit for the purpose."

McGillycuddy remarked that he was influenced by the remarks made by the operator of the Paris facility who said the after-care service offered by Bouygues was first-rate, and that the contractor would return without question to carry out any work required.

McGillycuddy said Gazeley, which is part of retail giant Asda Wal-Mart, would "have an open mind" about whether to enter into a partnership or alliance agreement with the French company, which has a turnover of £14bn. "If they can deliver on quality, time and price, it could lead to an alliance", said Gazeley's construction director.

Alastair Stewart, an analyst with merchant bank Robert Fleming who recently forecast large overseas contractors could start to ease out smaller UK contractors in the home market, commented: "Bouygues is starting to make inroads and, in a few years, I think they will be quite big in the UK. Customers that have used Bouygues rate them quite highly and have been impressed with the level of service provided."

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