Laing O'Rourke reshuffle sees power passed to project leaders

Laing O'Rourke is set to announce a large scale shake-up of its entire UK and European operations.

CJ understands that chief operating officer Tony Douglas is currently putting the finishing touches to an overhaul of the operating structure of the business.

Douglas joined O'Rourke from BAA last July and has since spent his time reviewing how Britain's biggest private contractor works.

One company source said: "Douglas was a high profile appointment and he is now looking to stamp his mark with this reorganisation.

"It will involve shuffling a number of people around and will be quite far reaching."

O'Rourke staff are expected to be told the details of the re-organisation later this month.

One of the main thrusts of the rejig will be to give more power to "people at the sharp end".

This will take the form of more responsibilities for project leaders actually running construction schemes.

An O'Rourke spokesman said: "This is still in the early stages at the moment and not a done deal. Discussions are concentrating on a new structure which is more reflective of our aspirations and to ensure the business is focused at project leader level.

"The project leadership role is key going forward. It is an important role now but will be more greatly enhanced.

"We will also be making sure that businesses are appropriately focused for our clients' needs in a changing market."

The latest changes follow a series of shake-ups at O'Rourke. Its concrete frame business is being revamped after losing business to rival firms.

The management team has been changed and managing director Steve Hollingshead is seeing through the closure of three back-up offices.

The firm's supply chain is also being slashed with its current list of 2,000 trade contractors due to be cut to 500 by the end of this year.

The company source said: "Things are always changing here and it's like a constant state of revolution.

"That was always going to continue under Tony Douglas and he is now putting a structure in place to ensure we keep moving forward."