Skanska says, not enough contractor capacity to tackle workload of major projects

There are more large complex contracts on offer than contractors can cope with, said David Fison, chief executive of Skanska.

“In this situation, we believe we have a duty to those clients who have given us work loyally as one day the market will turn and we’ll all be hungry,” he said.

“In practical terms, that means that we’re not tempted to take work when we’ve not got a good team to put on it.”

First quarter figures from Skanska show turnover bouncing 45% higher to £290m thanks, equally, to contributions from the recent acquisition of McNicholas and internal organic growth.

Operating profit (three months to the end of March 2007) ran to £7.4m (£5.5m).

Skanska’s forward orderbook stands at £2.3bn, almost double the figure of £1.2bn at the same time last year.

“I’m pleased with the way the McNicholas acquisition has gone,” said Fison. “The old Skanska utilities business was strong in telecoms while McNicholas had a focus in power and gas, with some water operations.

“We have blended well: McNicholas is fleet of foot and entrepreneurial while we are strong on risk management and programme management.”

During the first quarter of 2007, Skanska’s list of awards includes the £40m civils  works package on the extension to Stratford International Station, a £64m commercial office development in London for Greycoat Crown Place Partnership and a £50m office scheme for Land Securities.

David Tydeman, previously chief operating officer of Morrison plc, part of the Anglian Water group, recently joined the board of Skanska as Peter Coote, aged 63 and head of Skanska’s M&E operations, plans to wind down.