BAA gives hesitant backing to Major Projects Agreement at T5

BAA gave the green light to the M&E Major Projects Agreement (MPA) this week on its flagship Terminal 5 scheme, providing the finer project specific details can be agreed. However, it rejected the adoption of the MPA on its other framework agreements.

The news comes in the wake of Amicus national construction officer Paul Corby's warning last week that T5 will become a "battleground" if the MPA is not adopted there  (CJ 9 July).

In a statement this week, BAA said: "Following an external review and consultation period, BAA has decided to progress to the next stage of the discussions around the adoption of the MPA, subject to the development of a mutually satisfactory Supplementary Project Agreement (SPA) for the T5 construction project."

The SPA looks at the finer details of applying the MPA to specific sites. BAA's T5 construction director Andrew Wolstenholme said BAA recognised T5 suppliers and Amicus supported the introduction of the MPA at T5, adding T5 "could receive major benefits by adopting the MPA".

But he said: "While we believe it could provide the right framework for T5, it is still early days. We have agreed to take this to the next stage and look forward to further discussions with our suppliers."

Corby expressed surprise at the news. He said: "Nobody told us. BAA appears to be conducting the negotiations via its press office without first consulting us."

Suppliers were also restrained in their responses. One source close to the talks said: "They need to elaborate on the statement."  He added: "Whatever the outcome, the SPA has to be compliant with the terms of the MPA." 

Another supplier said: "BAA recognises it is in no position to reject the MPA for T5, but it will see how far it can shape it to the company's interests."

A BAA spokeswoman confirmed the MPA would not be applied to BAA's other framework agreements. She said: "While some of our frameworks are significant, they are established frameworks that are being managed in a way which is very different from managing a construction site like T5."