HBG's PFI team expands

by John Leitch

HBG Construction has expanded its PFI bid team to 40 as a result of taking on more legal specialists, financial modellers, bid managers and facilities management specialists.

Brian May, chief executive, said this week: "We're not yet hitting the upper limit of our bid costs and we are looking to grow still further. We've always written PFI bid costs off as we've incurred them.

"The PFI process is getting better and quicker, especially in health, but there are still uncertainties on timing and we're all struggling with that."

May said that HBG Construction was not contemplating a bid for Ballast, despite both companies having a Dutch-based parent construction group. "We would only be buying volume," he said. "We'd be interested in Ballast staff, though."

HBG had its most successful year in 2001 with profit on ordinary activities before tax rising to £14m (£12m) as turnover jumped to £710m (£630m). Non-traditionally won work accounted for 65% of turnover, while 45% of business was negotiated on a one-to-one basis.

"I'd like to see the two-stage tendering and partnering figure rise from 65% to 80%," said May. "But no higher than that as we're always looking for new clients. The proportion of one-to-one work is pretty good already and I don't anticipate that changing much."

HBG is one of four contractors working in partnership with Asda. Last year, all of its seven operating regions did at least one Asda project. The most memorable being a £14m store in Manchester, the largest in Europe, which was completed in 33 weeks.

Asda benchmarks its four contractors. "We have no problems with that," said May. "There is too much rubbish about secrets in construction. We all need to share more information, especially on safety."