SPRING 2008 THE QUARTERLY MAGAZINE OF BALFOUR BEATTY CAPITAL IN THIS EDITION ITE – a first for Singapore and BBCap The Transform Grand Prix Spotlight on… submissions WELCOME & UPDATE

Welcome to the Spring edition of capital Q.

The year has got off to a good start. In new business bids for Southwark, Derbyshire Schools and Enniskillen Hospital have been submitted and work continues towards achieving financial close on Islington, Fife and CNDR. Decisions are also pending for the M80 and M25 and we hope to hear on these soon.

It has been an exciting time internationally with the purchase of GMH Win America, prequalification on the Etoile Project in France, and in Singapore work has started on the ground at ITE.

A fantastic effort was made by the “Hard Way Up Club” who tackled the physically and mentally demanding challenge of the Haute Route. Money is still coming in but at the time of going to press, the team had raised over £14,000 for NCH. Well done to all involved.

It has been an exciting time internationally SPRING 2008 with the purchase of GMH in America... THE QUARTERLY MAGAZINE OF BALFOUR BEATTY CAPITAL IN THIS EDITION 4-7 News review Learning and development remains a high priority for us all and I ITE – a first for Singapore and BBCap would ask that you make the most of the performance development Elsewhere in the world... reviews that are coming up in May. In addition Capital College is a Six word memoirs

fantastic resource and new courses are being added all the time. 8-11 Consort Healthcare Please take the time to review and update your training plan regularly. Pinbderfields from a student’s perspective Consort Conference Finally, as we approach the summer preparations are well underway Bidding update for the summer ball, management conference and sailing trips. I look forward to seeing you there! 12-15 Connect Roads Tactical diversion routes on A30/A35 Network connectivity Bidding update

16-17 A s se t Managemen t Balfour Beatty buys GMH 18-21 Transform Schools The Transform Grand Prix Bidding update

IAN RYLATT, MANAGING DIRECTOR 22-23 Our people Spotlight on… Sally Hankinson, Anne-Marie Butler and Maria Fisher

24-25 Bid classics / The quarter in pictures

26-27 Next quarter News Review

ITE – a first for Singapore and BBCap

he impressive designs for BBCap’s first overseas success, Building work has already begun on the new campus, due to open in This unique campus will not only provide facilities for learning but will ITE College West, were unveiled at a signing ceremony last quarter. 2010 and will cater for 7,200 full-time and 8,100 part-time students. also feature cafes, a car showroom and other shops. The intention The ceremony was attended by senior officials from Singapore as well The College will provide service-related courses to help train students being that they will all be staffed by students. It is hoped that this will as representatives from ITE, Gammon Capital and individuals from for the tourism and hospitality industry. ITE College West has already help to support their learning experience by giving them a real taste of BBCap’s UK office who were also involved in the project. begun to form partnerships with institutes from France and working life. T Switzerland to provide more international exchange programmes. The team hope to reach Financial Close by summer 2008.

4 5 News Review

Elsewhere in the world… Six word memoirs

Europe USA hat does BBCap mean to you? If you had to n the healthcare sector we are delighted to announce that we BBCap is an equity member of the I-595 Development Partners summarise your time here to date in just six words what would they be? have prequalified for the Etoile project in Lyon, France. The project is consortium one of three teams selected by Florida Department of This was the challenge set to BBCap staff via the intranet. Here is a to develop a new proton therapy/hard ion therapy centre providing Transport (FDOT) to compete for a public private partnership on the selection of their responses... technologically advanced treatment for cancer patients. Our bid for I-595 Corridor Roadway Improvements project. Ithe c. 140m euro project will be in partnership with co-sponsor W“Projects, meetings, ball – have it all!” “The grass is green on-site!” FIDEPPP (a European investor), technology provider IBA and French The Project mainly consists of the reconstruction and resurfacing of Tzvetelina Bogoina, Bidding, Bid manager Lucy Adams, Project Secretary, Hope Hospital, Salford contractor BESIX. Balfour Beatty Capital’s diverse workforce has the Interstate I-595 mainline in Central Broward County, Florida. The approximate total value of the project as stated by FDOT is $1.5 “Started as temp, but still here!” “I want more than just OK” stood us in good stead with senior commercial manager Pascal Fel Anne Da Costa, Facilities Manager Chris Whitehead, Managing Director – New business being able to enjoy a “language holiday” while reading the bid billion. The next step in the competitive selection process is to documents on our behalf! respond to the Request for Proposals by July 11th, 2008. “Connect Roads still leading the way.” “More a lifestyle than a job” Andy Beauchamp, Director of Operations, Connect Roads Lawrence Buckley, Senior Project Finance Manager At the time of writing we are also waiting with anticipation for the During the Contract Term, the I-595 Development Partners outcome of our prequalification submission for a similar project in consortium will be responsible for financing, design and construction “You can never communicate enough frankly” “Bid booze bed. Bid booze bed.” Aachen, Germany. In this case, our involvement has been arranged and will be compensated through performance-based payments Manju Rani, Community Engagement Officer Submissions team – Anne-Marie Butler, Sally Hankinson & Maria Fisher through our German construction partner, Zueblin (part of the Strabag during the operational phase of the Project. “Who knew work could be fun?” group). The technology partner is once again IBA and it is through our Mike Lloyd, BID Director Julie Hollings, Community Engagement Officer And the prize goes to… involvement in this project that we have been invited into the Lyon Philip Dorin, Graduate manger for his response project. “Training opportunities; responsibility; variety; CJVs – mmm!” Ron Johnston, Construction and Design Manager, Consort Healthcare Fife We remain involved in a smaller scale local hospital project in Viersen Sale, Sheffield, Singapore, ready for more in NW Germany albeit this project is now on hold whilst we await “Activity, complexity, diversity, urgency and fun” Philip will receive £50 Amazon vouchers further guidance from the client about the guarantee it can provide in Ian Scott, General manager Health, Safety, Environment & Risk respect of ongoing operations/payments. “Tie-less deals in rolled-up Lewin sleeves” Dave Swarbrick, Business Development Director, Healthcare Bob Reid, Transactions Director, Asset management

6 7 ASSET MANAGEMENT

Balfour Beatty buys GMH

alfour Beatty Group recently agreed to acquire GMH Military Housing for a cash sum of $350m and Financial Close is expected by May 2008. This deal is a significant step towards achieving Balfour Beatty’s US Strategy and establishes Balfour Beatty as a leader in the US military housing market sector. BAnalysts are calling the acquisition “excellent” with Dresdner Kleinwort saying “the deal further extends Balfour’s position as a front runner in the awakening US PPP sector”. The acquisition of GMH Military Housing takes the number of Balfour Beatty PPP concessions reviewed the financing, both on a project and corporate level, and from 27 to 42 (including preferred bidder). Matthew Stanton reviewed the operational models used by GMH Balfour Beatty immediately initiated discussions with GMH Military Furthermore, GMH Military Housing’s parent intended not only to sell Military Housing. Mark Holden and Ian Scott carried out the The acquisition process Housing and had to be very sensitive to the fact that the transaction its military housing business, but also its other major business, GMH operational and Health & Safety due diligence respectively – and A good number of people from BBCap in the UK were instrumental in needed to be managed with discretion and nothing done to damage student accommodation, to another buyer. Both transactions were definitely got the best deal as they were flown by GMH Military making this happen, so we thought it might be interesting to tell the the valuable construction relationship. dependent on each other and signing of both deals would be Housing’s parent private jet (very smart) on a whirlwind tour of the story as to how and why it came about. Stewart Orrell lead the valuation exercise and was the day to day lead simultaneous; a major complication. bases from New York, Rhode Island, Virginia, Texas and New Mexico. We also pulled in several key people from our US businesses to assist The process kicked off in Summer 2007 when Balfour Beatty on the subsequent transaction for Balfour Beatty and was supported What followed was a heroic effort put in by several BBCap members Construction US was approached by the senior management of GMH by Heidi Ijomah. Both worked closely with Peter Zinkin and Anthony in other areas such as insurance and IT and involved a number of to meet this deadline – there was much due diligence to be senior management from Balfour Beatty Group. Military Housing to ask if Balfour Beatty would be interested in Rabin. Over the summer and autumn months, discussions were undertaken on the 15 military housing projects GMH Military Housing acquiring their business. Balfour Beatty Construction is the biggest initiated on an informal basis with the Board of GMH Military owned and we had to structure how GMH Military Housing would be We completed our due diligence successfully with hardly any time to supplier to GMH Military Housing as it constructs almost all of the Housing’s parent, and indicative valuations of the business carried out. separated from its parent and be established as a new separate entity spare. A big thanks is owed to all involved for the unrelenting late new housing that GMH Military Housing provided within their projects. In early December 2007, an indicative offer letter was submitted with within the Balfour Beatty Group. nights, weekends and to those who sacrificed their Christmas and Furthermore, GMH Military Housing’s management were extremely the hope that it would be accepted and the transaction would kick off New Year. impressed by the way Balfour Beatty had managed the acquisition of in the New Year. However, on the 14th December 2007, we received John Needham, Megan Roberts, Marc Evans and Jamie Pritchard Balfour Beatty Construction from Centex earlier in 2007 and the word from GMH Military Housing that the offer was acceptable but undertook the legal and commercial due diligence process on the The whole transaction process was a great success and a great minimal impact of that acquisition on Balfour Beatty Construction’s that we should commence our formal detailed due diligence GMH Military Housing projects. Peter Roughton was involved in the relationship was established between BBCap, Balfour Beatty business. immediately with an aim to complete by the 12th January 2008. legal due diligence from a corporate perspective. Sean McLachlan Construction US and GMH Military Housing.

8 9 CONSORT HEALTHCARE NEWS

Pinderfields from a student’s perspective Consort Conference

osie Bradshaw was an honorary member of the Consort s we go to press the 2nd annual Consort • Developments in US healthcare facilities Healthcare Pinderfields team in Wakefield earlier this month. Josie conference is about to get under way (end of April). This year’s event • The impact of Foundation Trusts on NHS joined the team on work experience from Cathedral School for two demonstrates both the increasingly international dimensions of our estate strategy weeks. Consort is working closely with Cathedral School as part of an business and the maturing of the operational projects as we welcome ongoing arts project. guests from oversees as well as current and former NHS clients. The • NHS estate rationalisation J Aprogramme features: • Workshop on customer focus Here’s what Josie made of her time there… • Feedback from market research My most memorable moment at Balfour Beatty Capital was… when my dad came in on the first day I was here. We went on a tour We are expecting to welcome colleagues from Balfour Beatty US, Heery around the construction site and my dad loved it. He just kept going HLM in the US, our Belgian proton therapy technology partner – IBA, on about it all night. our German construction partner – Strabag, the Director of Facilities I learnt the most from… from UCLH and the ex-Chief Executive of Blackburn as well as old The other thing I enjoyed was meeting everyone at Balfour Beatty. Julie Hollings [Community Engagement Officer]. She has helped me a friends from BB Construction, Haden Young, Haden BML and Mansell. lot over the past two weeks. Dave Swarbrick, Business Development Director, Healthcare When I finish all my studies I’d like a career in… Information Communication Technology, because I’m good with computers.

Rate your work experience on a scale of one to five (one being poor, five being excellent) Five.

Any more comments on your work experience? I loved it, everyone made me feel welcome.

10 11 CONSORT HEALTHCARE BIDDING UPDATE

OMAGH “After submitting our pre-qualification a year ago this project was at last given the green light earlier this year and we received formal notification that we had been shortlisted. The £165m development is the sister project to the new Enniskillen Hospital and combines local acute care facilities in Omagh FIFE with a mental health hospital and potential for primary care. The dialogue process gets under way “A programme to Financial Close with a target of July 2008 has been agreed with NHS Fife. There is in April and we face tough competition from Skanska/Innisfree, FCC/Interserve and John Laing to good progress in all work streams but there remain some knotty commercial issues to overcome if get down to the final two when the cut is made in the late summer.” Sam Gallaher we are to keep to this programme. I’d like to give a public pat on the back to our (relatively) new commercial manager Jenny Ashworth who is supporting the project in her first major assignment for Balfour Beatty Capital and is doing a fantastic job.” Andy Hatton

North Tees “I was surprised and delighted to be invited to lead Balfour Beatty Construction’s bid under Procure 21 to develop the business case for this new £400m project in the North East. It is not yet clear how the project will be procured once the business case is Enniskillen completed so it makes sense for us to help out in case it goes PPP albeit the current plans are to fund the project through public “After a huge effort and several delays we submitted our final bid at last capital. In any case it has been good to use the expertise we have gained from our Consort bids supporting another part of the BB on 29th February. The team has come up with a simply stunning design group. Its also a fair bit faster than PFI. After less than two months on board we are expecting a decision very soon.” Steve Spall and the bid documents showed it off a treat. During March the Trust had organised a number of workshops, presentations and Q&A sessions with the bidders to review the design and involve the community, staff and unions. We are now well into the clarification process with a decision expected at the end of May.” Tzvetelina Bogoina and Philip Doyle

12 13 CONNECT ROADS UPDATE

Network connectivity

Tactical diversion routes on A30/A35 Since opening in 2005, the M77/GSO has consistently met its strategic The concession has also played its part in accessibility to the new and local objectives. retail park at Silverburn. To ensure that the early success of the concession is maintained for the longer term, emphasis is being Maintaining or improving Journey Time Reliability is a prime objective The construction of the M77 has greatly improved the strategic access of the Highways Agency. Incident Support Units (ISU) are now proven placed on ensuring that journey time reliability is maintained. Connect to the businesses of Kilmarnock and provided a much improved Roads is working closely with its strategic project partner, Transport to assist in the rapid clearance of minor incidents which might journey time to Prestwick Airport, whilst the GSO has enhanced the otherwise result in the formation of traffic congestion. The ISU E Scotland and its local project partners East Renfrewshire and South lives of local communities by offering a modern dual carriageway Lanarkshire Councils to achieve this objective. service provides a support role at the scene of major incidents, which alternative for the previous through-traffic. Mregrettably, from time to time, are inevitable. delay to the road user that may otherwise arise from temporary signs. One of the benefits of the close partnership is the exchange of CCTV The success of the route in respect to attracting strategic and regional In partnership with the Highways Agency and the relevant local Road users benefit from being able to immediately follow a formally output. This aids Connect Roads’ Maintaining Agent Contractor with signed diversion. ISUs are strategically placed to patrol susceptible traffic, from what might be considered less appropriate routes, has monitoring the network conditions, and assists in such activities as highway authorities, Connect Roads and SWH/BBISjv, are currently largely met early expectation. undertaking the formal signing of selected tactical diversion routes, to sections of the road in order to respond more rapidly to minor incidents, delivering the winter service and responding efficiently to incidents. be used at times when the main A30/A35 must be closed due to an which might otherwise result in the rapid formation of traffic congestion. Information is now obtainable from ten CCTV roadside cameras, which incident which can not be cleared by the ISU service. Owing to the specific and significant traffic flow changes attributable provide coverage of most of the route. The images from the cameras to holiday traffic along the route, the deployment of ISUs is now are transmitted to Traffic Scotland’s control centre and Strathclyde The use of symbol or other signs permanently installed along the Tactical considered of strategic value to the Highways Agency in assisting in Police, and then relayed to Connect Roads’ Operation Centre at Diversion Route is designed to minimise confusion and unnecessary achieving its Journey Time Reliability Target. Maidenhill via a newly installed monitoring system.

14 15 CONNECT ROADS BIDDING UPDATE

M25 M80 STEPPS TO HAGGS “We are currently waiting for a preferred bidder announcement which is due “The Dialogue Period has now been closed by Transport Scotland on the M80 Stepps to Haggs in the next few weeks.” Nigel Lelew DBFO project and the bidders have been formally invited to submit Final Tenders. The Final Tender submission process was divided into two phases with the Technical Submission delivered on 7th April and the final Legal and Commercial submission on 18th April. Transport Scotland is expecting to announce the Preferred Bidder in late May 2008 with a view to achieving Financial Close at the end of July 2008.” Alan Gibson

CARLISLE NORTHERN DEVELOPMENT ROUTE “Whilst steady progress to Financial Close is being made, urgent issues involving land owners, newts, Network Rail and Utility Companies are diverting resource within both Balfour Beatty and Cumbria County Council. It is likely that Financial Close will be delayed from the planned 2nd June 2008 date, and strategies are being agreed to minimise that delay, which I hope to be able to report on further in the next edition of this right riveting read.” Nigel Blackbee

16 17 TRANSFORM SCHOOLS NEWS

The Transform Grand Prix

he first ever ‘I Love my environment Grand Prix’ will take The event will be run by Greenpower, who specialise in providing place on 16th July 2008, at Darley Moor Race Circuit, near electric kit car racing for schools and who were established to Ashbourne, in Derbyshire. This national celebration event will bring promote engineering and technology as careers. Winning schools will together 10 primary and eight secondary schools from Transform receive Teacher briefing sessions from Greenpower, covering health, Schools across the country to compete against each other in electric safety and technical information, plus race day guidelines, to make If you would like to attend the Grand Prix or take along a client, please Tkit cars, hoping to be crowned 2008 champions! sure that safety is of the highest priority. contact Sarah Clipsham for more information on 0161 972 3083 Those schools competing in the 2008 Grand Prix were awarded the We will soon be reviewing the project to identify ways of improving it Here’s the starting grid (in no particular order)… electric kit cars as prizes in the Spring Term competition of ‘I Love My for next year. Schools in North Lanarkshire will join in the competition Environment’; a Transform Schools national initiative, supported by from September onwards. Primary school starting grid Secondary school starting grid HBML. The initiative aims to encourage pupils, through incentives, to Christ Church Primary School (Stoke) Sandon High School (Stoke) improve their school environment by finding ways to tackle problems Belgrave Primary School (Stoke) St. Thomas More High School (Stoke) such as graffiti, litter and deliberate damage. It is also a curriculum John Baskeyfield Primary School (Stoke) Trentham High School (Stoke) resource which can help schools achieve national sustainability targets. Alexandra Junior School (Stoke) Holden Lane High School (Stoke) Hollywall Primary School (Stoke) Elizabethan Secondary School (Bassetlaw) Yarnfield Primary School (Birmingham) Portland Secondary School (Bassetlaw) Blakesley Primary School (Birmingham) Wickersley School & Sports College. (Rotherham) Kingsland Primary School (Birmingham) Winterhill Secondary School (Rotherham) Meadow View Primary School Thornhill Primary School (Rotherham)

18 19 TRANSFORM SCHOOLS BIDDING UPDATE

Derbyshire BSF “It is a busy time on Derbyshire BSF as the weeks are packed with meetings with the schools and Authority representatives. However it is also an exciting time as the weeks of dialogue crystallize into designs for the schools and proposals begin to take shape. The bid was submitted on 26th March.” Alison Stewart

Southwark Schools for the Future ISLINGTON “After what seemed a very intense period of dialogue with Southwark Council in the first quarter of this year, the ITCD submission “The complexity of the BSF structure has proved a challenge to both the Transform and Authority teams over for Southwark Schools for the Future was successfully submitted on 3rd April. A big thank you goes out to all who took part in this the past couple of months and both parties are now working closely together to achieve Financial Close submission. We presented our submission to Southwark Council on 30th April and the council will soon select two bidders to enter in May. Notwithstanding this, to keep the construction on programme works have commenced at all three into a second stage of dialogue in June and July. The final bid submission will be on 9th September and preferred bidder awarded on phase one sites. Transform is also participating in a supply chain mentoring scheme with local companies 5th November 2008.” Michael Tutty and has had three students from Holloway School in our offices for two weeks from the 21st April underlining Transforms commitment to leaving a legacy of skills in the area” Jerome Kearns

Sandwell BSF “Sandwell has taken just two bidders, ourselves and Interserve, through to ITCD stage which began on 28th February. This stage is inevitably a very busy period with a full programme of consultation meetings with the schools and Sandwell Metropolitan Borough Council. The bid is due to be submitted on 25th June so it’s full steam ahead.” Claire Douglas

20 21 OUR PEOPLE

SPOTLIGHT ON... Sally Hankinson, Anne-Marie Butler and Maria Fisher

Sally Hankinson, Anne-Marie Butler and Maria Fisher make up the When the bids aren’t going in… Submissions team. All of the new business team will be familiar with these three and the hard work they put in. For those of you who Anne-Marie: I am the lead singer in my band called Sandbox playing haven’t had the pleasure of working with them here’s a bit about Team gigs around Manchester. Submissions. Sally: I travel to exotic places. I’ll also answer for Maria too… When the bids aren’t going in Maria is a winner! In her one year and seven I have been at BBCap… days at BBCap she has won... first prize at the summer ball raffle (a weekend at Pennyhill Park), guess the baby’s weight and most Maria: for one year, seven days and counting recently first prize in the recent Capital College competition!

Anne-Marie: since about 2001. I started as a temp while I was Maria: Thanks Sally! Ok, yes, out of hours I win competitions! studying. I used to work late nights and weekends, helping out in the “They have transformed the efficiency and quality final stages of bids. I started temping full time in 2004 then was Sally Hankinson made permanent in May 2006. of our bid submissions over the past three years. What other people say… Sally: since the early days. I temped for about nine months then I was We asked a few people who have worked with the team recently made permanent in 2003. They are dedicated, professional and importantly to give us their thoughts…

they bring some fun and lightness to the office at a Before BBCap… “Having just completed my first bid with the BBCap Submissions team, I am still amazed by the professionalism, dedication and attention to detail Anne-Marie: I studied Maths at the University of Manchester they showed throughout the process – especially as we were the last of time when bid teams are under pressure as deadlines three consecutive submissions. This and the processes they have Sally: after completing my Sociology degree I travelled around developed are superior to any that I have seen within other consortiums. loom. With Sally, Anne-Marie and Maria by your Australia for a year, picking fruit and living a backpacker lifestyle. They seem to be a perfectly balanced team that support each other and side being in the office at midnight it can actually Maria: I studied English at University then worked at an exhibition the bid team with fun, laughter and the occasional sing-a-long – all of company for a couple of years before deciding the 9-5 lifestyle wasn’t which made the last week a far more enjoyable experience!” be something to look forward to!” for me! Anne-Marie Butler Laura Smith, Bid manager, Southwark My team… Dave Swarbrick, Business Development Director, Healthcare “They have worked tirelessly with us on all of the submissions throughout Anne-Marie: are hard-working and fun to work with. the competitive dialogue process and from the very start impressed the client and our partners with the quality of the documentation produced. Sally: all seem to complement each other as we’re each skilled in They are always the ones to provide the final piece of the bid jigsaw different areas. Anne-Marie is a mathematical genius, Maria is our completing a stunning picture to be proud of. English guru and I bring my sociological brain into the equation. The girls are astoundingly hardworking, remarkably professional and Maria: are the best. We get along really well together which is important amazingly cheerful… even when working in the small hours of the night!” when it’s 4am in the Sale office and deadlines are imminent. Tzvetelina Bogoina, Bid Manager, Enniskillen

Maria Fisher

22 23 Bid classics THE QUARTER IN PICTURES

The submissions team has collected a number of sentences over “…we will ensure that we create as much disruption as possible…” the years which they have spotted in bids and removed while proofing. Here is a small selection of classic responses… BB Construction

“The glacial sands range from a loose to medium dense clayey “When working on a platform not enough stable, it can moved due slightly gravely fine sand to a dense very clayey very sandy gravel.” to trench collapse during excavation or after backfilling, and Fife ITN cranes used working on it, could be put in a dangerous safety situation” “...the advanced woks agreement.” Bouyges TP - Connect Thames Gateway PQQ Singapore ITE PQQ Birmingham hospital construction progress Anne-Marie and Sally joined a group from the Sale and London office on a fun weekend in Dublin Worst grasp of the English language “Treatments to avoid infestation by Haden BML’s specialist service partner will be planned and notified to the Trust.” Haden BML

“A record will be kept of those attending, all attendees will sigh to state their understanding of the safety issues and their responsibilities to themselves, their colleagues, the client and ourselves.” BBCap

The Hard Way Up Club raised £14,061 for NCH by taking on the challenging Haute Route. Congratulations to Philip Pascall, Ion Appuhamy, Gary Best, Sean McLachlan, Cyril Gatinot, Stewart Orrell and Rachel Martin on such a fantastic achievement. 24 25 NEXT QUARTER

Summer ball 7th June 2008

PPP/ PFI Challenge 13th - 15th June 2008

Summer management conference Summer management conference 30th June - 1st July 2008

I Love My Environment grand prix 16th July 2008

Cover: printed on Revive Silk, containing 75% post consumer recycled paper and 25% virgin fibre which is elemental chlorine free sourced from sustainable forests.

Text: printed on Brand X FSC, containing 82.5% post consumer recycled paper and 26 17.5% certified virgin fibre pulp sourced from sustainable forests. 27