updatesummer 2010 The magazine for all Balfour Beatty people Values IN ACTION Putting integrity, teamwork, excellence and respect at the heart of what we do inside Welcome to the Summer issue of update. Our business world is more complex and challenging than ever before. The pace and scale of change in recent times has been dramatic, but what has and will endure are the qualities that set us apart. This edition is dedicated to those qualities – the values that unite us as we build our future. Integrity is about trust, our values between ourselves, our are quickly customers and the communities in which we work, and how becoming we conduct ourselves as a second Group. Teamwork is how nature 22 we are working together on projects and increasingly sharing knowledge across sectors and geographies. How we deal with each other and the outside world on a daily basis shows what Respect means to us, while Excellence is about delivering the best performance for our customers and colleagues. As the following pages reveal, our values are quickly becoming second nature.

I hope you enjoy the issue.

Andrew McNaughton, Chief Operating Officer Regulars 4 Group hub 15 Letter from... Australia 35 Backtofront

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Cover image: Dallas Convention Convention Dallas image: Cover Kevin Brown Kevin By Hotel Center

Up d a t e Su m m e r 2010 >grouphub Highlights from across Balfour Beatty

The beat Preliminary results goes on UK RoW April 2010 witnessed the third annual Heery 54% from the Heart Community Service Month, when employees dedicate themselves to 15% addressing the needs of the communities in Revenues which they live and work. Already the proud winner of a national Communitas Award, the programme touched 31 different organisations US and charitable groups around the United States. Both Heery and Parsons Brinckerhoff, which joined in the activities this year, benefitted from 31% the experience. “We enjoyed working side by side with our new Heery colleagues to make a Pre-tax profit up difference,” said CEO George J. Pierson. 7% to £267 million

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Calling at... Fort what Illinois...Ohio...Florida it’s worth “There’s no reason why Europe or China should have the fastest Balfour Beatty Construction US has added the trains when we can build them right here in America,” said world’s third-busiest airport, Dallas Fort Worth President Obama as he awarded high-speed rail grants worth International Airport (DFWIA), to the Group’s $8 billion under the AmericanThis means Recovery that PandB is R managingeinvestment projects Act growing list of airport infrastructure projects. (ARRA). Parsons Brinckerhoffaccounting is managing for a combined projects US accounting$4 billion of for It will be at the centre of an approximate around half of the total.the US$8 billion American Recovery and $900 million renovation at the North Texas Reinvestment Act (ARRA) high-speed and airport, as part of a joint venture team, intercity passenger rail grants awarded by the called BARC. Across the US, Balfour Beatty Federal Government in 2010. also has experience at O’Hare and Midway International Airports, Chicago; Seattle-Tacoma Airport; and Reagan National and Dulles International Airports in Washington. Adding up to zero carbon The UK education sector represents 15 per cent of the public sector’s carbon emissions and 2 per cent of total UK emissions. Although carbon is only one aspect of a school’s environmental impact, it has become a key area of focus in delivering sustainability in the sector through zero-carbon schools by 2016. Balfour Beatty Capital’s website shares research, best practice and case studies on what can be achieved beyond carbon reduction, including wider environmental and social impacts. See www.towardssustainableschools.org £47m is the estimated value of the UK fire service’s biggest public private partnership (PPP) project, for which Balfour Beatty Fire and Rescue has been appointed preferred bidder. The PPP contract will see 16 fire stations upgraded for North West Fire and Rescue Services. The upgrades will include meeting rooms, lecture rooms and gyms. 5 5

Making a Light splash An eco-friendly swimming fantastic pool is at the heart of a major Abu Dhabi is not your contract recently won by average city. It is home Gammon Construction, worth to the Yas Marina Hotel, HK$928 million. Gammon which straddles the will harness natural energy, Formula 1 race track. reuse waste and use recycled Its defining feature is an materials for the incredible architectural redevelopment of gridshell of LED lights that Hong Kong’s mimics the throw of a local fishing net and lights up the night Victoria Park sky for miles around. BK Gulf, the mechanical and electrical swimming pool engineering business jointly owned by Balfour Beatty and and leisure Dutco, commissioned and installed the lights. complex.

Up d a t e Su m m e r 2010 >grouphub Your guide to... Balfour Beatty Capital Group Inc. by President and CEO Bruce Robinson

(FAU) project, which is a joint dollars go. That said, if we can venture between US Balfour pursue strategic opportunities Beatty Capital and Balfour and have some success, then Beatty Construction, we can people looking for solutions all build on that success. Also, will come to us. We’re state and local governments excited, but it’s an uphill climb are experiencing the same in the US compared with the issues because tax revenues UK and Canada. are down. We believe using What is unique about the P3 model will solve these your culture? problems. Renewable energy We have spent a lot of is relatively new, but there are time trying to create tremendous opportunities – an environment where the Department of Defense employees feel appreciated, aims to cut its energy usage and find work challenging and by 20 per cent by 2020. rewarding. In 2009 and 2010, How does the P3 we received a “best places to Dr John Pritchett, President (Interim) of Florida Atlantic University and market in the US differ work” award in the greater Bruce Robinson, President and CEO of Balfour Beatty Capital Group Inc. from those elsewhere? Philadelphia area, based on 66 blind ballots from employees. Why did you rebrand government. The opportunity This shows that employees as the Balfour Beatty was there to take the Balfour recognise what we are trying Capital Group? Beatty name, reputation and to accomplish, and believe we Previously we were all our operating companies are a good firm to work for. primarily involved in and team up with existing What have you learned development, investment Canadian partners to give the employees from working with and facilities management customer the best scenario. believe we other Group businesses? with military housing, but What is your most There is an opportunity over the past year we promising market? are a good to team successfully have been expanding into There is real potential company to with Balfour Beatty higher education, social in the higher education, companies across North infrastructure and renewable social infrastructure and work for America. We’ve been energy and we needed the energy markets. Many capital shortlisted for a hospital bid in marketplace to see that projects on campuses have Bermuda and a courthouse in diversification. been put on hold because of Canada – both with other You’ve recently lack of investment – but as US-based Balfour Beatty opened an office in that market begins to fully companies – and this shows Canada. How is business? understand the public private Every state is like its that our footprint is growing. There is a mature partnership (P3) model, we own country in the US, The recent Florida FAU (see market with regard to are optimistic that there is so funding is driven by state, page 8) demonstrates the privatisation in Canada. It’s real growth potential. With city and local governments. power of the Group to create similar to the UK, where the recent award of the And in many cases they all opportunities that might not decisions are driven by central Florida Atlantic University have a vote as to where exist if we were going it alone. W h s ai t the Ethics H e pl nil e ?

If you have a serious concern that something may breach our code, please speak up. Raise it with your manager or someone in HR, legal or compliance. If you’re not comfortable doing that, you can contact our confi dential Ethics Helpline: L o g o n t o : www.bbethicshelpline.com or call free on: 023 0555 8798 Neighbourhood watch See the Code of Conduct for more guidance.

It is always a good idea to major reconstruction of location and the out-of-hours keep the neighbours on the Thameslink rail line in working required, Balfour side, especially when the London. A major part of the Beatty introduced high-tech If you have a concern about builders are in. The bigger job involves the widening measures to combat noise behaviour that may breach Balfour Beatty’s Code of the project, the greater and strengthening of pollution, including super- Conduct, you can now contact a the risk of disturbance, Blackfriars Bridge and the silenced plant and machinery confidentialE thics Helpline at and that is certainly the construction of a new station and acoustic curtains to limit www.bbethicshelpline.com case with Balfour Beatty’s across it. Because of the site demolition noise. 7 News Landmark investments in brief

Gone to plan The first phase of London’s £1.4 billion East London line has been completed on time thanks to Balfour Beatty Rail and project partners. The mammoth three-year project involved track, third On the surface, you would you will discover that they are with Darwen and Bolton rail electrification, be forgiven for wondering part of an exclusive group – Building Schools for the Future signalling and what Barking Power Station, Balfour Beatty’s infrastructure programme. The business telecommunications, Exeter Airport and the Fort investment business – which offers major infrastructure and construction of Jackson Military Housing has recently announced a investments across the three major bridges, Project could possibly have landmark 50th investment with complete life cycle of a project. four new stations in common. Dig deeper and the £450 million Blackburn See www.50investments.com and a depot.

Up d a t e Su m m e r 2010 >grouphub

News in brief Flourishing in Florida

From the Ground up Balfour Beatty Ground Engineering (BBGE) is amalgamating Stent Foundations, Pennine Vibropiling and Branlow Piling. Graham Wren, BBGE Managing Director, said: “By working together as a single team, we are in a much better position to streamline our processes and provide our customers with the right ground engineering solution The combined forces of and CEO of Balfour across boundaries.” 88 each and every time.” Balfour Beatty Construction Beatty Capital Group Inc., Balfour Beatty is part of and the newly-branded says: “Balfour Beatty a development and design In safe hands Balfour Beatty Capital Group Construction reached out to team that will design, Balfour Beatty Rail Inc. (see page 6) have us to structure a PPP deal. build and operate the employee Jim Erskine sealed a deal for the US$123 If it wasn’t for us coming accommodation, which of South Queensferry million Florida Atlantic together, we both may covers more than 489,000 Foundry in West University (FAU) student have missed the opportunity. square feet, and includes Lothian, Scotland, has accommodation project. This shows the power an outdoor pool and sand won the inaugural Bruce Robinson, President of the Group to reach volleyball court. Balfour Beatty Rail Zero Harm awards and revolutionised foundry Strength in numbers working by introducing a remote control The global financial crisis has In the UK, Balfour Beatty the use of online e-auctions. ladle to prevent injury forced all businesses to look has launched project GrACE By reducing the number of from molten metal. closely at their cost base in under the leadership of Manfred suppliers, it is hoped to reduce He found a US firm a bid to increase efficiency Leger, Group Managing Director, the costs for both Balfour that manufactured a and optimise spend. Market to bring greater co-ordination Beatty and key suppliers. It battery-operated pump pressures have created a and maximise volume buying would be wrong, however, and then sourced a culture of “more for less” and in the areas of indirect spend to simply focus on cost. The British system with the customers are increasingly (office stationery, travel, etc). project is looking to give same capability. His demanding evidence that The project is also looking at greater visibility of service was one of 54 entries Balfour Beatty is using its scale different methods of engaging levels, which will hopefully from the business. to deliver best value. with suppliers, for example by drive improvements. From Unlocking Britain’s talent

When I leave school I want to be an engineer because I like cars. I want to be an a ctress, a singer or a golfer. I want to be a do ctor because idea to Balfour Beatty Education has it’s quite high paid and I’m in a lot of the top Head of Regeneration at sets. When I leave school I want to be an architect or something in design beca use I really enjoy art and I’m not that bad at it so I’ll have to get a really good GCSE in it. I want to be a teacher b joined forces with Blackburn, ecause I Balfour Beatty Education. like working with children and it sound s really fun when teachers talk about working. When I leave school I want to be an accountant because it’s g o o d a n d I l i k e m a t h s a n d I w a n t t o g e t g r a d e A s . reality Darwen and Bolton Councils I want to study law and I’ve been looking at Leeds “Once an apprentice has Apprenticeship opportunities will be created in a range of sector University and places like that for when I leave s including: school. I want to be a chef A g r i c u l t u r e a n d H o r t ie; c u l t u r because I like cooking. Arts, Media and Publishing; I want to be a fully qualified lumberp and I have to do four years at college to achieve t Business, Administration and Law; hat. When I’m Construction, Planning and the Built Environm older I’d like to be a teacher because completed their time with to create Balfour Beatty ent; you get to Engineering and Manufacturing Technologies; work with lots of different age groups of c hildren. Information and Communication Technology. I probably want to be a graphic designer. I want Balfour Beatty Apprenticeships wil l offer sustainable job opportunities for local to be a qualified joiner. A patholog young people in a range of sectors related to BSF and le ist, because ave a long term skills legacy I’m good at chemistry, biology, It is one thing to talk about Apprenticeships to offer for local communities. all the sciences a host company, they at school so I’m going to try and go for that.

innovation, but placing it sustainable jobs to young For further information or to become return to Balfour Beatty part of Balfour Beatty Apprenticeships p le a s e c o nt a c t : balfourbeat t yjobs Investing in skills for @nwapprenticeship.co.uk Blackburn with Darwe n and Bolton Investing in skills for at the heart of company people in sectors including “A key advantage forBlackburn with Darwen and Bolton Apprenticeships and are culture is altogether more construction and facilities participating companies reassigned to another challenging. Through the management. The ambition is the removal of the risk business within Balfour Chairman’s Graduate Prize is to maximise benefits associated with having Beatty’s supply chain.” for Innovation, Balfour during the local Building insufficient continuity of The intention is to roll out Beatty is making originality Schools for the Future (BSF) work for apprentices to the scheme to other BSF a grass-roots policy. project, leaving a long-term complete their full terms,” programmes and potentially “I think being at the skills legacy. says Mark Howden, to the Group. forefront of innovation is critical for Balfour Beatty to retain its position in the marketplace,” says Points decision Ben Muncey, winner of the 2010 prize, which attracted Working with the customer to improve further £115 million is to be awarded should 9 more than 60 entrants from efficiency has never been more important. agreed targets be met. across the Group and was That sense of partnership has been In addition, Balfour Beatty has won a judged by a panel of senior demonstrated with Balfour Beatty winning contract worth £50 million for the grinding of managers, including Mike contracts worth up to £248 million from plain line rail across the UK, which includes Peasland, Nick Flew, Paul Network Rail, a customer since 2002. the operation and maintenance of six of Raby and Brian Osborne. Balfour Beatty’s existing track renewal Network Rail’s fleet of grinders. InS cotland, His idea is a high-tech framework contract with Network Rail – Balfour Beatty will construct a new third version of the “goalposts” to deliver plain line rail and switches and line and associated overhead electrification used on construction sites crossings at junctions – has been extended additions as part of the Paisley corridor to prevent over-height by up to four years. Worth approximately improvement project in Glasgow. This work vehicles from colliding with £56 million in the first year of the contract, a is due for completion in 2012. power lines. The intention is to develop a portable ultrasonic or light-gate technology device that operates from a single pole, which would reduce costs and make it easier to set up and move. The concept is already at the patent pending stage and he plans for it to be fully operational within a year.

Up d a t e Su m m e r 2010 oxnard riverside

nashville palm desert tustin SAN DIEGO fort worth DALLAS

1010 austin Houston

Balfour Beatty Construction US is bucking the market trend and achieving coast recognition to for employee engagement, as it evolves into a more national coast business EXCELLENCE: Construction

expertise not only in interiors, but also within the fast-growing mission- critical sector,” says Parolisi. Washington The next step, in November 2009, was the acquisition of The company’s growth is the Houston-based SpawMaxwell charlotte result of strategic planning, Group Company. “Around 75 per cent restructuring, and reacting to local of our business is interiors and opportunities. John Parolisi, Senior the other 25 per cent is core raleigh Vice President of Strategic Planning and shell,” says SpawMaxwell and Marketing, explains: “We looked President Steve Mechler. As such, at regional markets across the the company brings not only a new ATlanta United States and decided which revenue stream to BBC but also cities were most attractive over the key customer relationships, which long term, based on the volume of are fostered through the 300 to their existing construction market 400 interiors projects completed and their expected population and each year. And as SpawMaxwell market growth.” also carries out base building Priority markets included Houston; construction, the existing Balfour Southern California; Northern Beatty operations and portfolio 1111 Orlando California; Seattle; Portland; and strength can help them further grow fort myers potentially Phoenix. The company this area of business. also began evaluating potential The latest additions to the firms that complemented BBC in company, Charter Builders and terms of location, sectors, size, and Barnhart, were already a part of fort particularly culture. “We were able Balfour Beatty, but were aligned with lauderdale to come up with a shortlist of firms Heery International. in those markets and when we “Charter is focused on education, reached out to them, several were construction management, general eading into 2009, very interested in talking with us,” contracting, retail and some small Texas-based Balfour says Parolisi. office developments,” explains Beatty Construction US So far the firm has made two Charter President Charles DeVoe. He (BBC) was a $2.2 billion acquisitions, and restructuring in says the move into the construction H revenue company the Group has led to two further arm is a more natural fit, considering with 1,600 employees. A year on, its companies becoming part of the long-term view of the Group’s revenues have grown to $3.3 billion, the business. The first, family- US operations. By sitting within the with more than 2,100 employees, owned contractor RT Dooley, construction group and leveraging and a $5.6 billion order book. The was purchased in February 2009. BBC’s other offices and expertise, numbers tell a compelling story. “We were doing a large project DeVoe says Charter is in a stronger “We are evolving from a multi- for Bank of America in Charlotte, position. “The restructuring has been regional business to a true national North Carolina and RT Dooley was a great opportunity for us. It gives us business with leadership coast to performing the corporate interiors immediate entry into new areas like coast,” says Chairman and CEO work. Over time, we realised we Houston and Austin, where we had Robert Van Cleave. would be a great team, as they bring tried to penetrate in the past.”

Up d a t e Su m m e r 2010 san diego dallas austin

On the West Coast, BBC performs a significant amount BBC’s Dallas location is one of the company’s Selected in 2009 as ‘Contractor of the Year’ by of construction for the military including the recently- founding offices.T he team has been responsible for Texas Construction, BBC’s team at SpawMaxwell dedicated projects at the Berth Lima Pier, Naval Base some of the area’s most recognisable landmarks, is a leader in corporate and healthcare interiors Coronado in San Diego, California, completed by BBC’s including One Arts Plaza residential housing and construction. Last year, they completed the Lance team at Barnhart Balfour Beatty. many K-12 education projects by Charter Builders. Armstrong Foundation Headquarters in Austin, Texas.

Eric Stenman, President of beliefs and similar services. But 1212 Barnhart (now Barnhart Balfour with the addition of these new Beatty), shares DeVoe’s thoughts. businesses and the growth we are “Our business is now able to grow experiencing in select markets, it no in a more accelerated way, building longer makes sense for all of these on BBC’s portfolio and relationship divisions to operate as separately we are creating strength. For example, we can as before. So we are leveraging a more regional pursue and win larger education and senior leadership to create a more healthcare projects.” regional organisation model for our organisational For Charter Builders, entry into businesses,” explains Van Cleave. model Houston and Austin is made easier “It should be pointed out that this by the presence of SpawMaxwell regional model has been our long- in these areas. For SpawMaxwell, term strategy since early 2004. an immediate benefit was the However, we decided it would only chance to co-locate with BBC’s be deployed when the business offices in Dallas. And for RT Dooley was of a size and scale where the and Nevada); and the North and Barnhart Balfour Beatty, the move made sense.” (Washington DC, the Northeast opportunity to leverage BBC’s Today’s national structure at and select customers and markets extended national reach has already BBC consists of operations in across the entire Northern US and resulted in key pursuit opportunities the South East (Florida, Georgia, Canada). To lead these areas, two outside their typical footprint. the Carolinas and a national senior officers have been appointed “For the past seven years, Military Housing business); South as Regional CEOs: Al Petrangeli for we’ve operated as a collection of Central (Tennessee, Texas and the South East and John Tarpey for regional divisions within a common the surrounding states); South the North. Van Cleave says further framework of values, shared West (Southern California, Arizona appointments will be made “over EXCELLENCE: Construction orlando charlotte washington

BBC has significant experience providing The Ritz-Carlton, Charlotte in North Carolina was 700 Sixth Street is a 12-storey office building in the construction management services on university completed by BBC and its team at RT Dooley in Penn Quarter of downtown Washington DC. It was campuses and higher education facilities, including September 2009. The luxury hotel recently earned its built by BBC’s team in Washington, features over Seminole State College, University of Central Florida official LEED Gold Certification, the first in the Ritz- 300,000 square feet of office space, and achieved the University Partnership Center near Orlando, Florida. Carlton chain to earn this level of green distinction. prestigious designation of LEED Platinum.

the next year or so” for the South “We want our core focus areas construction resulted in its ranking West and South Central regions. of service, talent and choices to by industry magazine Engineering 1313 Alongside this reorganisation, continue to set us apart,” says News-Record as a Top 10 Green BBC is focusing on three key Van Cleave. A key component Contractor in the US. themes: growth, leverage and of service involves the Mission “However, not all days are rosy differentiation. In terms of growth, Alignment Process, understanding and tough choices have been made the company plans to penetrate and meeting their customers’ to help keep the company on track,” deeper into existing business unique priorities and expectations says Van Cleave. “We have not streams such as federal, education at the outset and then revisiting been immune to the impact of a and healthcare, and expand on the them continuously through active tough economy and have worked additional locations that have come partnership with the customer. hard to remain competitive in every with the new businesses. “Over Engaging top talent continues area where we work.” the long term, we want to continue to be critical to every part of the This has meant losing 200 of the expanding our geographic market business as BBC continues with original 1,600 BBC employees to up through Northern California and strategies to attract, develop and make the company more efficient, into the Pacific Northwest. A likely retain the industry’s best employees. implementing a salary freeze and way we would expand our reach is Sustainability and safety are renegotiating supply contracts. through acquisition,” says Parolisi. other key areas of differentiation. But by making acquisitions at Focusing on leveraging the By 2012, BBC plans, like the rest the same time, the company is synergies, capabilities and locations of the Balfour Beatty Group, to ensuring greater opportunities for of all parts of the business has be a Zero Harm contractor. Today, future growth into new sectors already led to different teams it already outperforms the US and markets. “We have cut to the working together, meeting new industry safety average by 70 per muscle and are set to go forward. customers and winning more work. cent. And in 2009, the company’s We have great people and are in a The final theme is differentiation. continued strength in green great position,” says Van Cleave.

Up d a t e Su m m e r 2010 Further, BBC employees felt more positive than employees from the other Fortune 100 companies on 57 out of 58 questions. In total, BBC respondents had answered favourably to 89 per cent of the questions; the average score of the top 100 was a lofty 84 per cent. “We have worked hard to identify the key dimensions of our corporate personality,” says Schippmann. “This means establishing which elements are most critical to ensuring the best performance from employees. These include base pay; fair and equitable benefits; and great manager quality. Knowing what is most important means the company can make improvements in the areas that matter most to our employees. Having a relatively low FORTUNE score in an area that is highly valued by employees – that’s where we want to FAVOURS THE BRAVE focus our greatest attention,” he says. Schippmann believes these The odds were long but the BBC HR continuous improvements should and Communications teams had done ensure the company creeps higher in 1414 their homework – and it paid off, as BBC next year’s Fortune 100. “What BBC is won a place (no. 76) in the coveted list. doing is more insightful and business- Many of the Fortune 100 criteria relevant than other employee surveys matched items within the company’s you see in 98 per cent of companies own employee engagement survey. “We in the US. Our HR team has taken it to had benchmark data from companies another level,” he says, “and so far that have participated in the listing in that’s paying off for us, our employees, the past and as we compared ourselves and – we believe – for our customers.” very year more than 500 with their scores, we felt we were doing companies fight it out for exceptionally well. Our employees felt a place on Fortune’s list of very engaged, they felt great about their the 100 Best Companies to managers, and they felt there was a E Work For, as compiled by strong basis of integrity and trust around the Great Places to Work Institute. the organisation. So, we said: ‘We “It is very unusual for a first-time compare very favourably to the Fortune applicant to make the list,” explains 100 crowd. Let’s go for it’.” it is unusual Balfour Beatty Construction US (BBC) In assessing the top 100, the Great for a first-time Senior Vice President and Chief Talent Places to Work Institute puts the Officer Jeff Schippmann. “Around greatest weight on its anonymous applicant to 50 repeat companies are on the list surveys with company employees. Of make the list every year; companies like Google the company’s 1,400 employees at the and Microsoft. So, that means 450 time, the 58-question survey went to a companies are vying for the other 50 stratified sample of 800. An incredible spots,” he says. 96 per cent (768 people) responded. Letter from Australia

Marisa Feher is a geological engineer specialising people in my team and supporting in contaminated land management. With Parsons their growth. I make sure they Brinckerhoff, she’s helping communities in Victoria have everything they need to do their job so the team can perform reclaim land lost to environmental abuse at its peak; if there are any issues, it is my responsibility to address them. I also liaise with colleagues y work has taken arsenic were sitting in the middle on a national level – the 26 people me across Australia, of a national park surrounded by in Victoria are part of a wider team from Queensland residential properties. The sand of 155 Parsons Brinckerhoff (PB) to Darwin, and was uncovered by the Black employees across the country M most recently to Saturday bushfires of 2009, which working on contaminated land the national parks of Victoria. It’s burnt the vegetation that had management. We share knowledge here that I manage a diverse and hidden it since the days of gold and work together on new talented team of engineers and mining more than 100 years ago. business proposals. scientists working on contaminated This posed a big problem for our New business tenders are land projects. customer, Parks Victoria. The sand something I really enjoy because I have covered a lot of ground particles were I love the thrill of the with my job, chase – that wonderful discovering beautiful project that will help bits of country that the team to grow I would never have both technically and experienced otherwise commercially. I relish 1715 and meeting some the chance to talk to wonderful people along people about what the way. we do because I It’s the same reason feel very proud of I enjoy bushwalking – our work and the I’m doing the Oxfam company. At PB, 100km walk that will we hold our values take us through amazing up high and take landscapes – and it’s all them seriously. for a good cause. We always aim Apart from travel, I to put safety, the love the social aspect becoming environment and the customer of helping communities reclaim airborne, so there was a risk of first. I have now been here two land that would have been fenced contaminating the local water years – I think my journey has been off and lost forever without our supply. I’ve been involved since day and will continue to be a great one. intervention. It is rewarding to see one and we are currently planning COUNTRY FILE a contaminated site transformed the remediation of the sands, and into residential housing or parkland, dealing with key stakeholders Population: 21.3 million (UN, 2009) Main exports: Ores and metals; undoing the environmental including government bodies and wool, food and live animals; fuels, mistakes of past generations. local residents. transport machinery and equipment One of our projects is Liddell As well as the more technical Capital: Canberra Sands in Victoria, where 33,000 aspects of geological engineering, a Area: 7.7 million sq km tonnes of sand contaminated with key part of my role is managing the

Up d a t e Su m m e r 2010 Head for heights Mike Sparrow, the new kid on the block at Balfour Beatty Utility Solutions, sees growth opportunities all around. And, as his career so far has proved, he’s adept at grabbing the right ones

hen Mike people work together as one unit. Sparrow was “Success in business is offered the determined by your numbers. At chance to run BBUS those relate to safety and WBalfour Beatty financial performance. Those are Utility Solutions (BBUS) at the end the two things I look at first to get 1616 of last year, it wasn’t a difficult a steer on how I’m doing, but if decision. As the Managing Director you don’t have the goodwill of the of UK facilities management firm people in the business you’re never Romec, owned by Balfour Beatty going to succeed,” says Sparrow. and Royal Mail, he already had a “I start by trying to get the team good feel for the way the Group lined up behind a common goal worked, and he liked what he saw. that can be articulated in a simple “The Group is enormously way, that is easy to understand and diverse and interesting, and the inspiring to follow,” he says. “I try people are accessible and take an to get the frontline team to focus intelligent approach to running the on the things that are critical to our business,” he says. As Managing customers and get the support Director of BBUS, he has also functions lined up behind them.” been impressed by the technical A key challenge for Sparrow expertise of the frontline staff and will be ensuring that the business their wide portfolio of projects. makes the most of growth Sparrow leads a team of about opportunities in global markets. i start by getting the 4,500 staff focused largely on the The UK currently represents about team lined up behind design, building and maintenance 90 per cent of overall turnover. of water, gas and power “We need to be careful to focus a common goal infrastructure. Working across our resources where we will get sectors has its benefits, particularly the biggest bang for our buck. The when demand is flat in some areas, biggest market opportunity by a but Sparrow is keen to ensure that country mile is the US, where the EXCELLENCE: Utilities

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Up d a t e Su m m e r 2010 We will have to be careful about how we prioritise emerging markets opportunities

power business is tiny – £30 service and facilities management in the UK and £12 billion for the million out of a total turnover for the at Compass Group, where he spent group, which then operated in 100 Utility Solutions business of £600 13 years until he joined Romec. As countries,” he says. “The growth million.” well as getting to grips with serving was huge and my career developed a range of customers, it was also along with it. I also got strong Career path an opportunity to run a fast-growth sponsorship from one of the UK Sparrow’s career has been a business. “When I joined Compass, managing directors, who gave me question of hard graft and grabbing it had a turnover of just over £500 the opportunity to run education, 1818 opportunities. London-born and million in the UK only. When I left, defence, some healthcare, police bred, he started out on a building the turnover was maybe £3 billion and prisons as part of a government site after he didn’t get the grades to study marine biology at university. He could have retaken his exams Collaboration in New Zealand but was too eager to start earning As Balfour Beatty Utility Solutions (BBUS) approach to working with the customer. a living. When he had a second takes on more international projects, its This level of detail and collaboration is chance to take the academic ability to draw on expertise across the becoming more common on tenders route, he made the same choice. business and at Group level, as well as as customers with large-scale capital “I was working as an architectural collaborating with external partners and expenditure plans seek to build long-term draughtsman for a small practice customers, will be critical to success. relationships with contractors. in Harpenden for a year and they This style of working is being put into The joint venture benefited from the wanted me to go to university practice on a project on New Zealand’s support and expertise of Balfour Beatty for six years to do an RIBA [Royal North Island to upgrade to a 400kV overhead management when it came to carrying out Institute of British Architects] power line that will stretch for 186km. The an evaluation of the risks and opportunities qualification. I thoroughly enjoyed contract, valued at about NZ$230 million, is involved in the project. The customer, being carried out by BBUS through its joint Transpower, which owns and operates the job but I didn’t feel like doing venture business with United Group Limited, the grid, was also involved throughout that once I had cash in my pocket.” an Australasian engineering and property this process. One of the outcomes of this After that he got a job in a pub, services company. The two companies process was that an alternative form before working his way up in the won the project after putting together a of tower erection was identified which hospitality industry. He then ran competitive alliance proposal, where they brought BBUS expertise into play. As a restaurants and hotels for Chef & not only had to explain how much it would result, BBUS has trained its team to use a Brewer and Allied Domecq. His cost and how it would be structured and derrick method to erect towers from the air, next move was into contract food delivered but also articulate their values and as an alternative to the crane method. EXCELLENCE: Utilities service portfolio.” competitive. The UK power market In practice: the This experience of managing offers plenty of growth potential growth should help as Sparrow over the next five to 10 years work of the builds BBUS’s position in new due to substantial government Innovation team markets. This will mean working investment in the clean energy with the US management team sector. Marine cabling could also be Imagine a day when a robotic tool to get a critical mass of people an interesting market for BBUS. can be lowered through a fire hydrant into the water mains, locate a leak by with the right skills to unlock the The amount of work and relative camera, diagnose the best solution power opportunities in that market. shortage of skilled manpower are and carry out the repair, all without likely to ensure that this business “Organic growth is always more any disruption to the water supply or cost effective but there are some commands better margins than UK transport on the roads above ground. gaps in our capabilities where water and gas markets. Although This isn’t science fiction – it acquisitions could be useful, there is a programme of work is a project that Balfour Beatty particularly as we establish a to improve water quality and the Utility Solutions’s Innovation and bigger market presence in the US,” safety of gas pipes, competition Development team hopes to complete says Sparrow. is intense and margins are tight. within the next three to five years. It will also mean working with Sparrow will be relying on the The business invests a minimum of management at Group level to work of BBUS’s Innovation and £2 million a year in R&D work, mainly capitalise on opportunities in other Development team to keep coming through its Innovation unit, which is a 12-strong team with a mixture of overseas markets. Outside the up with ideas to make the business utility industry expertise in operational UK, the business has operations more efficient (see box). management or safety roles as well in the US and Canada, Australia, as a variety of engineering skills. New Zealand, Hong Kong and the Work/life balance These kinds of solutions will be Philippines, and it is also working Although Sparrow has a lot on his critical to the competitiveness of the on a joint venture in Indonesia. plate, he retains a healthy attitude gas and water business by helping 191919 BBUS has commissioned some to work. He lives with his wife and to rebuild margins. In the power research into possible new markets three children in North Yorkshire, business, a recent breakthrough in terms of the sustainable scale of which was a lifestyle choice, rather has been mobile extended working investment in utilities services, their than moving house to follow his platforms, allowing the team to work on high-voltage transmission lines political fit, the legal and ethical job. He freely admits that holidays without climbing up to the power environment in which it would are important to him. “We have a lines. “If the power market is going to trade and the level of competition. place in Montana in the US that we be buoyant in terms of volume, it will It is early days, so Sparrow rules try to get to for four to six weeks attract new entrants, and we will have nothing in or out. “We will have to a year.” to continue to innovate to stay ahead be careful about how we prioritise That said, he is also an accessible of existing and new competition,” emerging markets opportunities boss. “I don’t find business says Sparrow. and determine whether they fit a burden. If I was on holiday, with the Group’s aspirations,” he I wouldn’t have the slightest says. “If the Group is already in a concern about someone ringing territory, such as the US, it gives me from work,” says Sparrow. us market intelligence and contacts “I would rather people have the that can help to build relationships opportunity to talk than get back to before tendering for contracts or a find a problem or someone who is platform for potential acquisitions in unhappy,” he says, demonstrating those territories,” he says. the same approachable attitude Sparrow is also focused on that he admired when he first got strategies for growing the UK to know Balfour Beatty. It is easy business and making it more to see why he felt it was the right

Up d a t e Su m m e r 2010 Trans-Hudson Express tunnel No. 7 subway 1 project increases capacity 2 heads further west Nearly 170,000 people commute between New Jersey and Construction is under way on the No. 7 Subway Manhattan by train each day, using a century-old, two- Line Extension from Times Square to 34th Street track rail tunnel under the Hudson River. The Trans-Hudson and 11th Avenue. The station at 34th and 11th is Express project will double capacity when it opens in 2018, unusually deep because it lies below existing and includes new tunnels in New Jersey and Manhattan, tunnels – the deepest point of the structure will be and the extension of Penn Station. Parsons Brinckerhoff about 40m (130ft) below street level. Parsons is the managing partner of a joint venture providing tunnel Brinckerhoff is providing design services to the engineering, architecture and environmental services. Metropolitan Transportation Authority. Unlocking New York From New Jersey to Long Island, Parsons Brinckerhoff has a leading role in each of the four major projects under way to revolutionise the city’s commuter rail services 2020 2 1 The bigger picture

East Side stop Relieving congestion 3 for the Long Island Rail Road 4 on the East Side Currently the Long Island Rail Road (LIRR) arrives at The Second Avenue Subway will relieve overcrowding Penn Station on the West Side of Manhattan, and many on the Lexington Avenue line. Work is under way commuters then backtrack to the East Side via subway on the 2.4km section between 96th and 63rd Streets. or on foot. The East Side Access project will bring the The first phase is expected to be completed in 2016 LIRR to Grand Central Terminal on the East Side via and in subsequent phases the line will be extended south the existing 63rd Street Tunnel. Parsons Brinckerhoff to Lower Manhattan and north to 125th Street. Parsons is leading a tri-venture that is serving as general Brinckerhoff is leading a team that is providing engineering consultant for the project. construction management services.

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Up d a t e Su m m e r 2010 igging brings history to the surface, whether that is in the what lies shape of animal D bones, pottery shards or a hoard of Anglo-Saxon gold. For Balfour Beatty, finding beneath archaeological artefacts is an unexpected part of the build or Archaeological discoveries are surprisingly construction process on major common on construction sites. So what infrastructure schemes and civil engineering projects. happens when the mechanical diggers stop If the find is significant enough it and the trowels are brought in? can mean delays, although it is often possible for construction work to continue in parallel with the archaeological dig. It also signals the start of a collaborative process with key partners and stakeholders. Balfour Beatty and its contractors must ensure that whatever is unearthed is made known not only to English Heritage or Scottish 2222 Natural Heritage – government RESPECT: Environment

advisers on the historic the EIA, archaeologists will Project: A46 link road between the environment – but also, where consider existing material such as M1 motorway at Leicester and the appropriate, to local council historic maps, documents and Newark Relief Road archaeologists. English Heritage is reports from earlier finds to help Location: Leicestershire, England often involved from the very plan ahead. Much of this is about beginning and has a particularly mitigating the impact of Much of this route follows the Fosse Way, a major close relationship with the construction on important Roman road. It traverses a number of important Highways Agency, the government archaeological sites by preserving sites, including early prehistoric Farndon. agency responsible for managing on record (detailed photographs, for “Farndon dates from the late Upper Palaeolithic and maintaining England’s example) what is found for future period – around 11,000 BC ,” says David Aspden, motorways and trunk roads. generations. But no amount of desk Archaeological Consultant for Scott Wilson, Archaeological activity forms an research can entirely predict what Balfour Beatty’s designers for the project. “We found flint objects used as tools and important part of the Environmental might lie underneath the ground. preserved a large part of the site for future Impact Assessment (EIA) drawn up During the Fife hospital project in generations by deploying a geotextile membrane at the initial planning stage for Kirkcaldy, Dom Gallagher, Project above the top soil before placing fill material for certain projects (often road Director, received a call informing the road embankment.” schemes) and can, for example, him that bones had been found on The site at Stragglethorpe Junction revealed a directly inform route options. For the construction site. “My first 30m-diameter ring ditch. “We suspected a burial reaction was – are they human or monument or barrow,” says Aspden. “There was a not? For example, smallpox spores central pit-like structure but it was empty, perhaps can remain ‘live’ for a long time, so robbed. We found eight human burials and a bones have to be sealed in a beaker pot.” lead-lined coffin.” I lovedust by Illustration The Archaeological Unit at Fife the team was able to cordon off the we found Council examined the site and area and carry on working. “If the 232323 flint objects established that the bones were bones had been human, it could the remains of a working horse have been a very different used as tools which had been buried in a lime scenario,” he says. pit in the late 19th or early 20th As material and data are century. There was a colliery nearby collated on finds such as where it was common for horses to the Kirkcaldy horse, be used on the surface. the information is While this was interesting from a local history point of view, for Gallagher the best news was that

Up d a t e Su m m e r 2010 a local school about how the kilns Project: Carlisle Northern Development were excavated and provided Route information to local museums. Location: Cumbria, England Although not a statutory requirement, this type of work is a A team of archaeologists from Oxford Archaeology vital part of Balfour Beatty’s public North, monitored by English Heritage and Cumbria outreach programme. County Council’s Heritage Environment Services, Other recent Balfour Beatty has been excavating sites along the route of the projects have unearthed a range of new road on behalf of Birse Civils. finds, from lateU pper Palaeolithic Fraser Brown from Oxford Archaeology North tools to Iron Age settlements and says: “Some of the amazing finds over the past Two 19th-century lime kilns were Roman roads. Even when the few months include prehistoric remains from some unearthed at the A3 Hindhead project of the earliest Cumbrians, dating back more than project is completed, 8,000 years, as well as a decorated pottery vessel, archaeologists continue to examine several arrowheads and four stone axes from Community Relations Managers their findings. For example, by around 3000-4000 BC. As the construction of the to key interest groups, such as scrutinising soil samples for pollen road gets under way in earnest, the archaeological history or archaeological societies, content, archaeologists can fieldwork programme is coming to an end, but as well as local schools. discover what crops were grown at the team is only just beginning to make sense of When two 19th-century lime the time and what the environment all the findings. These sites are some of the most kilns were found at the A3 was like. important ever identified in northern Cumbria. It is Hindhead project in Surrey, Dianne And it is these small things that hoped that, one day, the finds will go on permanent Jarvis, Environmental Manager for can result in big revelations about display at Tullie House Museum and Art Gallery.” the project, made presentations to the ground beneath our feet. 2424 ConstructionINTEGRITY: Hong GovernanceKong

what it means to be a...

A plc may be able to raise money by issuing shares, but with this power comes responsibility – to maintain good corporate governance and satisfy shareholders. And these obligations require clear and effective communication 252525

oeing the line a system of comply or explain, of non-executive to executive One of the most meaning companies that choose members and meetings must be distinctive aspects not to comply must publicise their presided over by a non-executive of being a listed decision and explain why. This chairman. “Getting the right mix of T company is the approach has been championed in people with the right qualifications challenge of complying with the UK, and is slowly being adopted and experience is vital,” says corporate governance standards. elsewhere in Europe and beyond. Sheath. “If you have the right Plcs are required to observe a “It is perfectly legitimate for a directors and the chairman has corporate governance code, which company to decide not to comply, some leverage and expertise, it sets out good practice on issues but then in their annual report they should bring a lot of value in terms such as board composition and must justify why to shareholders,” of helping the board manage both development and relations with says Richard Sheath, Director of itself and risk better.” shareholders. Independent Audit, a strategic Non-executive board members Chris Vaughan, Balfour Beatty’s corporate governance consultancy. spend between 12 and 20 days a General Counsel and Company year dealing with issues related to Secretary, says: “Good corporate alancing the boardroom the company. “It’s another form of governance is all about honest The increased public profile external scrutiny that we have as self-evaluation, and companies B of listed companies serves a listed company,” says Duncan are advised to undertake an to amplify the level of boardroom Magrath, Finance Director of annual review of the effectiveness scrutiny. The UK corporate Balfour Beatty. “Non-execs bring a of the board, committees and governance code states that there different perspective and therefore

arah J Coleman S arah by Illustration directors.” The Code is based on must be at least an equal ratio a valuable challenge.”

Up d a t e Su m m e r 2010 pen and honest Displaying transparency O to the external world is of vital importance and contributed to Balfour Beatty changing the way it reports the financial performance of the business. “Previously we reported in four segments – building, civil, rail and investments. But increasingly we are building complicated structures such as the East London line, which could be described as both a railway and a civil activity, and as a result does not fit naturally into those categories,” says Magrath. The inadequacy of this reporting structure was highlighted by the growth of the support services business and the acquisition of Parsons Brinckerhoff (PB). As a result, four new segments were agreed – professional services, 2626 construction services, support services and infrastructure investments – each of which can be viewed as a strong area of the Group in its own right, as well as, increasingly, having the capacity to work together. The new structure highlights the different types of activity within the Group, enabling investors to have a clearer picture of the underlying activity and to get a better handle on its value. Having a clear reporting structure is of no use if the data is poor, however. Collating good-quality data requires a huge team effort – both at Head Office and by the finance professionals within the operating companies.

igger and better? The employees of the B formerly private PB now find themselves part of a London- INTEGRITY: Governance

listed plc with 50,000 employees analysts and investors, followed happened in the case of PB. In in more than 100 countries. But by meetings with banks and then such cases, the company makes an will day-to-day life change? “The more interviews.” initial offer that is conditional on the only changes should be positive Following this year’s results, approval of shareholders, to whom ones,” says Duncan Murray, Balfour Balfour Beatty produced a team the board must make a proposal Beatty’s Director of Corporate review, aimed at employees. supported by relevant information Communications. “If you are part “The idea was to communicate and earning projections. The of a bigger company, you have our performance and potential, decision is then put to a shareholder the capacity to work with bigger devoid of the corporate language vote. For the acquisition of PB, a customers on more interesting often associated with formal plc combined document was issued projects and the Group continues to announcements,” says Murray. The attract the best people.” rationale was to give employees The challenge is how to unite a clearer view on the shape and people across a business of future direction of the Group. such scale. “You might be doing something fantastic in the UK, but atisfying shareholders non-execs bring a how do you know about it in the Although having shareholders different perspective Far East? Sharing must happen Sgives listed companies the horizontally and the answer is more potential to raise money through and therefore a effective internal communication.” the issue of new shares – Balfour valuable challenge Beatty’s recent £350 million t’s good to talk acquisition of PB was made possible With growth, comes greater in a credit-starved climate by a timely 27 Iscrutiny as to whether the rights issue – managing shareholder business is delivering against its expectations can prove tricky. promises. “The acquisition makes “When you are dealing with asking shareholders for additional us a more complex business a multitude of shareholders, money. “That document, which had so investors need the ability to some of whom have different to be approved by auditors, financial clearly identify the separate parts opinions, life becomes a bit more advisers and sponsors, is testament and understand how they might complicated,” says Magrath. “Part to the huge amount of teamwork be reacting differently to the of the management role is ensuring that has to go into an acquisition of economy,” says Magrath. they are understand the company this scale,” says Magrath. Announcing financial results is strategy – the more shareholders So, being a listed plc brings both one of the key days of the year you have, the more likely it is, responsibility and opportunity. for listed companies and the hard however, that some of them will A responsibility to look after the work of all employees in producing disagree with you.” As a result, it is shareholders’ interests, and deliver the profit of the company is a requirement to hold public annual them a return on their investment potentially negated if the numbers general meetings (AGMs) when through dividends and by generating are not communicated effectively a company presents its accounts value for the business, which is to analysts and media. “It starts to shareholders and they have an hopefully reflected in an increased early in the morning, talking to opportunity to question management share price. a number of newswires once and vote on various matters. And a good track record on the announcement is made,” In addition to an AGM, and shareholder returns helps persuade explains Murray. “There could be depending on the size of the investors to invest more money interviews with the national media transaction, listed companies might which can be used to grow the before the analysts arrive – then also require shareholder approval business further and makes Balfour a presentation and webcast to before making an acquisition, as Beatty an exciting place to work.

Up d a t e Su m m e r 2010 2828

The Royal Free Hospital in London needed to keep the main entrance open during building work, so Mansell constructed a tunnel for visitors RESPECT: Urban regeneration

nurturing renewal Regeneration projects can be messy affairs that are not always welcomed by residents, so engaging local people from the start is one of the keys to success

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rban renewal to treat the residents with respect improves lives. In the and explain what’s happening.” words of the British His own experience includes Urban Regeneration a project originally opposed by U Association (BURA), residents, which ultimately got “improvements to the physical two “very good” Considerate environment lead to better homes Constructors Scheme reports (see and neighbourhoods, which in turn “Community involvement” box). help the most disadvantaged to Paul Evans, Vice Chair of the help themselves.” British Urban Regeneration But urban renewal can also cause Association, agrees. “Think about upheaval and worry. The arrival the daily routine of people’s lives of large digging equipment on – the promise of a gleaming future residential streets is rarely greeted in five years’ time can be little with cheers, no matter how positive compensation for disruption the end results are likely to be. now,” he says. “Often, people don’t want things But ensuring maximum benefit in their backyard, and the initial with minimum disruption is a fine reaction is to complain,” says Gavin balancing act. And the bigger Crawley, a Senior Site Manager for the scale, the bigger the challenge. Mansell in the UK. “So you’ve got Mansell is currently in the latter

Up d a t e Su m m e r 2010 Parsons Brinckerhoff Project Visualization used photo simulation and animation to give the public a true experience of the plans for downtown Denver

stages of a five-year, £57 million at Christmas scheme, in which a Community renewal project in the UK’s West raffle raised £1,200 for the charity involvement Midlands. The project, in West Acorns Children’s Hospice Trust. Bromwich, Sandwell, involves And there was direct, practical Gavin Crawley, a Senior Site demolishing 148 houses and 78 action too. When heavy snow Manager for Mansell in the UK, garages, and building 198 homes fell and limited the mobility of explains how direct contact with in their place. There will also be older residents, Tenant Liaison residents eased concerns over the repairs to almost 900 other homes, Officer Tracey Astbury andS ite building of the Krishna-Avanti Primary with work ranging from minor fixes Manager Doug Jewell led staff on School in Edgware, north London. to complete refurbishments. shopping trips for basic foodstuffs. “The land was originally a football club, and the residents association And the community work here “Many of the residents couldn’t 3030 had opposed the planning because has been almost as intense as the possibly leave their houses in the they wanted to keep it as sports fields. construction. In the first stage, conditions, so we were delighted “Once Mansell was involved, the Tenant Liaison team sent out to come to their aid,” says Jewell. it was down to me to liaise information packs to residents, This kind of community thinking with the residents. We issued explaining the project aims, and helped the Sandwell project monthly newsletters and put up a giving details of who to contact score a rare 37 out of 40 and a Considerate Constructors notice on with concerns or complaints. But Silver Award in its Considerate the site with my phone number on this has been a project that has Constructors Scheme ratings. it. One rang to ask, ‘there’s a stake gone some way beyond standard up against my fence, is that where procedures, and face-to-face you’re building, in my back garden?’ Someone else was concerned we contact has been core. Site visits were going to undermine their shed have let adults and children learn with our excavation. But everything about the project in detail, the was resolved at site level. The latter getting demonstrations of response they got from me meant construction skills and talks about always they didn’t need to go any further. site safety. The firm’s resources explain what “We also helped the neighbours. were also put to use with the free In the local park there was a refurbishment of a local school. is happening sculpture being made for a fête and But perhaps more significant they asked if we would donate some were efforts to step out into the when there clay, so we did. On another occasion, community, rather than inviting we donated materials for fencing to are delays segregate a donkey derby. them in. Staff joined neighbourhood “If someone asked, and we were watch meetings and a litter able to help, then we did.” collecting initiative, as well as charitable drives such as the Cares RESPECT: Urban regeneration

Of course, urban renewal doesn’t model of the project design, and “I’m convinced the project never begin when the first steel-capped then created an animation of the would have happened otherwise.” boots arrive on site. James Price corridor including cars, bicyclists, In November 2009, property and is a Senior Project Manager with pedestrians, day and night time, business owners and residents voted Parsons Brinckerhoff, which is and even changes in the seasons.” to supplement the City and County of in the latter design stages for a The results were made available Denver’s $10 million with $4 million of renewal project that will cover 12 on YouTube and helped clarify their own funds. city blocks in downtown Denver, the immediate benefits. “As a It’s a sentiment echoed by BURA’s Colorado. From the outset, stakeholder, property owner or Evans. “Developers and constructors engaging the local community has city council person, you could work best with local communities if been top of the agenda. almost experience walking down they start early – very early,” he says. “One of the first things we this roadway with new pedestrian “Communicate – face to face, openly, did was put together a team that improvements, the plantings, the widely, frequently and honestly – listen involved a PR firm and a well- spill-out cafes, from the eye of the as much as you talk, never promise respected landscape architecture pedestrian, or a bird’s-eye view. more than you can deliver and always company,” says Price. “We put You got a true experience of the explain what is happening when there together a series of workshops upside, and we felt that was also are delays.” to investigate the potential of invaluable in getting a complex It’s simple advice, which is applicable the project and the upside of the project with complex stakeholders on any continent. economic development.” through the process,” says Price. This team was key in getting out the message that the development The right people Taking a flexible would be beneficial. “One of the But perhaps the hardest sell was things we did when selling this to private property owners and approach 313131 to the economic development residents, who were being asked Andy Instance, Operations Manager (Health) in the committee of the City and County to contribute their own money to London Major Works business at Mansell in the UK, of Denver was an animation of the go alongside public funds. Here, says flexibility is vital. project,” explains Price. says Price, the key was being “The Royal Free Hospital [in London] is a big, “Finding project consensus in touch with the right people. inner-city hospital environment with a very big among all the stakeholders was “We were really dealing with accident and emergency department on the the critical issue. PB built a virtual community leaders,” he says. lower level, and the main hospital entrance on the upper level. Part of the works in West Bromwich, Sandwell, involves removing internal and “To start with, we were in our own self-contained external walls, often while the next-door neighbours are in residence area, where we had some heavy demolition work and created a new level of multi-storey car park. Doing heavy demolition in close proximity to sensitive hospital equipment meant we had to use silent demolition techniques: instead of pneumatic breakers, you use crunching equipment. “The customer originally said they would shut down the whole main entrance, then as the day approached they realised they needed to keep an access point. So we created a complete, physical tunnel that allowed pedestrians to go through while we were building on either side of them and above them. “There was quite a bit of out-of-hours working, limitations on the contractors and working at night, but, by being flexible, we got the job done.”

Up d a t e Su m m e r 2010 3232 teamwork: Knowledge sharing

great can learn from each other. Feeding the value they create back into our wider business is so important.” minds... 333333 Sharing knowledge in a large organisation is a big Joined-up working Dominic Grace, Innovation and challenge but Balfour Beatty is determined to break Knowledge Manager, says down barriers – and create a culture of collaboration that knowledge sharing and collaboration are vital to retain a competitive edge, but they are by no means new concepts ne of the Group’s focus in the past five years,” says for the business. “We can find main differentiators Group Managing Director, Brian examples of operating companies is the depth and Osborne. “Due to acquisition and sharing expertise and working breadth of its organic growth, we have much collaboratively at all levels of the O expertise, but more firepower, many more people business. For instance, Balfour when you are expanding as quickly working on innovative ideas and we Beatty Education brings to bear as Balfour Beatty, how do you see customers award us contracts the expertise of several operating ensure that expertise is accessible at least partly on the basis that they companies to present a unique, to those who need it? Individual get access to that expertise.” multidisciplined offering to the UK operating companies already Osborne recognises that most education sector. Our UK Major pool know-how to some extent, innovative practice is carried out Civil Engineering business and but as the Group grows, so does by the people right at the coalface Gammon Construction in Hong the need to adopt an effective and is not pushed down from the Kong are collaborating on tracking knowledge-sharing strategy. top. “People solve problems and technology to improve the safety of “Our ability to share knowledge exploit opportunities locally on site tunnel workers – pushing towards across the Group to help our and we need to get them to share our goal of Zero Harm by 2012.

H oogslag N anette by Illustration customers has gained greater their methods with others so they The sustainability working group

Up d a t e Su m m e r 2010 has pooled the knowledge and experience of all our operating companies to come up with a global vision for sustainability.” Across Balfour Beatty, there are countless other stories of where knowledge sharing has already reaped rewards and that experience needs to be shared. will include a number of initiatives Equally, there is a wealth of to engender a Group-wide culture undiscovered potential that needs shift, while ensuring the diverse to be tapped into. nature and needs of different parts Andrew McNaughton, Chief of the business are respected. This feeding the value Operating Officer, is all too aware is something he recognises will people create back of this need. “Sharing best not be achieved overnight, as any practice gives staff ready access culture change takes time. into our business is to knowledge to support them in As Darryn Warner, Chief so important their day-to-day tasks,” he says. Information Officer, says: “For “But consider our planning and a long time, we have thrived on scheduling disciplines, where, the uniqueness of each business. despite having the best experts Trying to get knowledge and available, we have not unlocked information to flow across them their value by consistently applying has traditionally been quite difficult. cultural side, we will work closely collective best practice.” “We need to eliminate with our businesses to understand 3434 technology barriers and put what cultural levers work for them Follow my leader the right tools in place to let and share what we find works well Inevitably, there are different levels collaboration happen quickly and across the Group.” of maturity in knowledge-sharing easily, so we help nurture our “The technology is just an practices across the business. knowledge-sharing culture. This enabler but an important one, Some are further along the journey is something that has significant nevertheless,” says Grace. To this than others, which creates a great focus and activity this year. end, the Group has developed opportunity to learn and build on “Identifying and focusing on “people finder” – an online contact what works well. where the value is, like locating our directory of all Balfour Beatty “For some people, sharing expertise, making that knowledge staff – and is developing tools knowledge will come naturally, available through technology and such as “expertise finder”, to for others it will be a little more inspiring behavioural change to use enable employees to search for difficult,” admits Grace. “When it, will be where the real success skills, collaboration tools, intranet asked, people are very receptive comes from,” says Warner. platforms and corporate social to help. But whether we are good “There are two streams of networking services. at sharing proactively or seeking knowledge sharing – cultural and Grace adds: “The Group would knowledge that might be out there, technological,” Osborne explains. not be where it is today if its as a matter of course, is a different “The technological part is simply people did not share knowledge. thing. Every organisation struggles a tool and we’re working on What we’re trying to achieve with that. It’s not something that providing a platform on which through the knowledge-sharing technology is going to solve – it has every operating company will be strategy over time is to make that to be in the DNA of our culture.” able to communicate, connect with process simpler, more accessible The company’s knowledge- colleagues and work together in across the Group and more sharing strategy, adds Osborne, new and effective ways. On the embedded in the way we work.” backtofront

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Up d a t e Su m m e r 2010 36

Editorial Team Balfour Beatty Group Corporate Communications Duncan Murray, Hannah James, Lynn Harvey

Balfour Beatty plc 130 Wilton Road London SW1V 1LQ +44 (0)20 7216 6800 [email protected]

Balfour Beatty is a registered trademark of Balfour Beatty plc

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Bladonmore Europe Cert no. SGS-COC-0620 www.bladonmore.com