Business management expansion at Balfour

Balfour Beatty is planning to expand, with the possible acquisition of a consulting engineer, after client pressure.

This has resulted in the company expanding its business management over the past three years. But a spokesman was coy about confirming that a consulting engineer is in the frame. “Balfour is in the middle of a strategic review of business management. What is clear is that it will expand. There could be an acquisition.

“A lot of customers such as National Grid, BAA and the High-ways Agency were pushing us, wanting us to take more of the action, including upstream services. We owed it to them to be sure we were a player.” The London-based management division is headed by David James, previously chief operating officer with WS Atkins. It includes former employees of the UK wing of Heery International, Balfour’s US programme and project management division in Atlanta.

Heery’s former team worked on the refurbishment of Somerset House, London; the new grandstand at Lord’s cricket ground; and the Armouries move to a new base in Leeds. With James at the helm, the business has expanded rapidly. It employs 300 people and occupies a floor in Balfour’s office in London’s Wilton Road. Individuals are working at Balfour’s Kings Cross underground development and T5.

Although Balfour is not admitting to running the rule over any consulting engineer, its reputation as a buyer is such that it is a target for unsolicited approaches from companies wanting to sell.

[Contract Journal, 27 September 2006, p12]