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Grim though it was, George Osborne鈥檚 Comprehensive Spending Review was no bolt from the blue. For several months now the construction industry has been weighing its options and hoping that by the time the axe fell on public sector capital spending, the private sector may have begun to bounce back to take up some of the slack.

The good news is that there are signs of life. Schemes restarting on site range from small projects through to mega-developments such as Land Securities鈥� 20 Fenchurch Street in the City. But times are still tough and there is by no means enough work to go around - not yet anyhow. So, two years after the exodus from private sector work to what was perceived as the more reliable and solid public sector, it鈥檚 now a race in the other direction.

The key to winning private sector work is knowing what clients have to offer, and what they want. What impresses them? What will put you at the top of the pile? We talk to nine of the biggest names to find out.

BAA

The airports operator is one of the UK鈥檚 biggest and most challenging clients. Capital projects director Steven Morgan disbanded its multi-million-pound framework for major projects in his first 120 days after joining the group in February 2009. This means BAA鈥檚 work is now more accessible as all projects over 拢25m are opened up to competition. The group鈥檚 construction works at Heathrow go in five-year cycles, or quinquennia. The current one runs up to April 2013 and the following five years of investment are being finalised.

Development pipeline
There is still 拢200m worth of work going out to tender over the next two years. This includes projects linked to terminals and around the airfields. From 2013 onwards investment is expected to be about 拢4.2bn, the same as the current quinquennium. Phil Wilbraham, BAA鈥檚 development director and the man responsible for planning its workload and budget up to 2020, says: 鈥淥ver the next five years the likelihood is that we鈥檒l focus on the second phase of the T2 building [phase one, worth 拢1.2bn, is under way and phase two is expected to be worth about the same]. We are also looking at updating T3 and T4 as well as resurfacing the two runways.鈥�

How to impress BAA
Stephen Livingstone, BAA鈥檚 programme control director, says: 鈥淲e do not focus all the time on price. We want the best people, not just the cheapest - although we do expect people to be innovative and to prove they can drive down price to deliver best value. We are looking for firms dedicated to health and safety and carbon credentials.

鈥淚n terms of past skills we need people who can integrate as well as build. A lot of our upcoming projects will involve the integration of systems. I would stress that our upcoming work is definitely not sewn up.鈥�

Land Securities

Best known for commercial projects in London and retail schemes up and down the country, Land Securities鈥� property portfolio is worth about 拢8.7bn. As work resumes on major London projects such as the 拢500m 20 Fenchurch Street 鈥淲alkie Talkie鈥�, all eyes are on what else the developer may have up its sleeve.

Development pipeline
In the short term, there is the 拢350m Trinity Leeds project which has a construction value of 拢100m. Laing O鈥橰ourke has been appointed as main contractor but opportunities for smaller firms, particularly regional contractors, are there as the development is expected to require 1,000 workers on site at peak construction.

Other upcoming schemes include major extension and refurbishment works for a number of Sainsbury鈥檚 stores; the Atlas Site (Buchanan Street) retail scheme in Glasgow with a 拢20m construction value; and the 400,000ft2 Buchanan Galleries retail development, also in Glasgow, which has a 拢120m construction cost.

Land Securities is also targeting the UK鈥檚 top 50 city centres to identify possible distressed assets or opportunities that have been abandoned by other firms. It aims to pick up three or four schemes, worth about 拢150m each. Most of these are expected to start on site by about 2015.

How to impress Land Securities
Andrew Dudley and Derek Baillie are project management directors at Land Securities. Dudley says: 鈥淲e have committed 拢1bn to development in 2010 and that work is pretty sewn up. But pretty much all of the development pipeline is up for grabs.

鈥淲e are very opportunistic and we are open to working with new firms. They need a track record of relevant experience and expertise and although we have relationships with contractors, we are not tied to the supply chain. We are looking for value, stability and a good cultural fit.鈥�

Baillie adds: 鈥淲e are driven by value and quality. We use a design-and-build procurement method and work with contractors for six months or so before a scheme starts. But then we expect to transfer the construction risk to the contractor.鈥�

British Land

British Land also focuses on London retail and commercial development. As at 30 June 2010, properties owned or under management were valued at 拢13.7bn, of which its share was 拢8.7bn. 65% of the portfolio is invested in retail and 33% in offices.

Development pipeline and work up for grabs
British Land has about 3m ft2 in the commercial development pipeline, including some refurbishment schemes on existing assets. The portfolio is worth about 拢750m over the next three years in terms of hard construction costs. Only a small fraction of that work has been procured. The move away from pure construction management means British Land is open to new suppliers. On the retail side there are 鈥渁 number of things the group is moving forward on鈥� but nothing has yet been committed.

How to impress British Land
Richard Elliott, head of construction, says: 鈥淲e need confidence in a company鈥檚 management processes and approach to business on the construction management side and obviously things like health and safety and sustainability credentials are very important. We don鈥檛 always go on price; it鈥檚 more about quality and delivery. We are engaging with a supply chain we wouldn鈥檛 normally have done in the past so the opportunities are there.鈥�

Hammerson

Hammerson is a major developer operating in the UK and France, with a specific focus on developing and managing shopping centres, retail parks and offices, including the Bullring in Birmingham, West Quay in Southampton and 99 Bishopsgate.

For information of Hammerson鈥檚 development pipeline and how to impress the firm, see page 32 for our interview with the group鈥檚 head of project management, Vinod Thakrar.

Stanhope

The developer is best known for its London commercial schemes. Key projects include More London, Tate Modern, Paternoster Square and Stratford City. But it is after expertise from more firms as it moves into different sectors such as mixed-use schemes led by retail and residential as well as offices.

Development pipeline
Stanhope has 10m ft2 under construction or in the pipeline, including more than 30 office buildings and 3,700 homes.

How to impress Stanhope
Paul Lewis, operations director at Stanhope, says: 鈥淎fter innovation, openness and integrity, we are looking for reliability so we can maintain the vital link between us and our customers and don鈥檛 let people down.

鈥淲e are known for office development but have moved into other areas, like retail- and residential-led projects. We will need people who have experience in these areas.鈥�

TESCO

鈥淭he best property company in the UK鈥� according to one analyst, Tesco remains a giant among clients. The group revealed a 拢261m profit in the six months to 28 August 2010 from 拢1.2bn of sale-and-leaseback transactions from its development pipeline. It is notoriously tough, but has plenty of work to offer over the next few years.

Development pipeline
Tesco鈥檚 development programme is worth 拢1.6bn. It pledged to build 2.4m ft2 this year, a rise of 41% on the below-average 1.7m ft2 in 2009. It has been known to push contractors and suppliers to very tight margins to drive down costs. But with a 40% increase in its store development programme and a move towards restructuring its supply chain and bringing new contractors on board, it could be a key source of work on projects ranging from small stores to mega schemes for the construction industry, including firms that haven鈥檛 worked with the retailer in the past.

How to impress Tesco
Always one to keep suppliers guessing, Tesco declined to comment.

J Sainsbury

The retailer enjoyed a 57% increase in pre-tax profit, from 拢466m in 2008/09 to 拢733m the following year. In the group鈥檚 last set of results, sales were up 5% to 拢21.4bn.

Development pipeline
Sainsbury鈥檚 has a property programme worth about 拢1.6bn. In May last year it hit the headlines by announcing it would accelerate expansion in the recession. It raised its target for increased selling space from 5% to 15% by March 2011. The group raised 拢432m from share and bond issues to fund the growth.

The expansion required the construction industry to deliver more than 50 stores throughout 2009 and 2010 as well as 45 store extensions and 150 Sainsbury鈥檚 Local convenience stores. The aim is to continue this pace of growth from 2011.

Now that Sainsbury鈥檚 has formed a joint venture with Land Securities on certain schemes, there are plenty of extensions up and down the country in the pipeline too. Sainsbury鈥檚 does have a framework of preferred contractors but says this is 鈥渃onstantly under review鈥�. It automatically tenders 10% of its work outside the framework.

How to impress Sainsbury鈥檚
John Rogers, Sainsbury鈥檚鈥� former head of property, now chief financial officer, says: 鈥淲e want to meet new contractors if they think they have something to offer. From a commercial position it would be crazy not to. We also look for transparency in the commercial relationship. It鈥檚 important we develop a real partnership with the people we work with, which means moving into a more open style of business. In the past, things have not been as productive as they could have been because of a lack of transparency.鈥�

WAITROSE

Waitrose posted a 25% increase in profit to 拢268m in results for the year ending January 2010. A huge expansion programme into the convenience market is planned, in a new departure for Waitrose.

Development pipeline
Every year for the next three at least, Waitrose will be spending 拢200m and building 10 supermarkets as well as convenience stores. A decade from now, it plans to have twice the number of UK shops. Schemes are worth between 拢1.5m and 拢20m and most work has yet to be tendered.

The catch is that Waitrose is famously impressed by its existing supply chain: Bowmer & Kirkland, RG Carter, RG Group and Wates. But the group鈥檚 head of property services and development, Nigel Keen, told 好色先生TV earlier this year that with so much work in the pipeline, it would be looking at new firms and 鈥渘ew ways of creating value鈥�.

How to impress Waitrose
Tony Jacob, head of construction and maintenance at Waitrose, says: 鈥淲e are looking for new supply chain members as with the current workload and pipeline our existing supply chain will be stretched. We are looking for firms that are of an established retail pedigree or a pedigree in fast fit-out or construction.

鈥淚f they don鈥檛 have that they are wasting their time and won鈥檛 get past the front door. Then we measure against key requirements - they have to be able to deliver on budget and on time, meet our standards, and meet our safety and sustainability obligations.鈥�

Whitbread

Whitbread is a global hotel, restaurant and coffee shop company with its budget hotel chain, Premier Inn, making up 80% of turnover. Other brands include Costa Coffee, Beefeater, Table Table and Brewers Fayre. The group reported profits up by 28% to 拢151.8m for the six months ending September 2010 and a 14.5% increase in total revenue to 拢805m, placing it in a strong position to expand.

Development pipeline
The bulk of work will be related to Premier Inn. Already on site are 1,700 rooms, to be opened by February 2011. Between then and February 2012, 30 new hotels, 15 restaurants and more than 3,500 rooms are in the pipeline. Of these rooms, only about 500 are already committed - the rest will be tendered and Whitbread has confirmed it will be adding to its list of contractors to complete the work.

It is spending 拢330m on hotel expansion in 2011, a figure that will increase year on year for the next three years at least. There are opportunities for refurb specialists too, as Premier Inn鈥檚 40,000 rooms are refurbished and refitted every three years.

How to impress Whitbread
Alex Flach, Whitbread鈥檚 construction and maintenance director, says: 鈥淲e are currently adding to our contractor list and we鈥檙e looking for firms who have prior experience either working for us or for another hotel group.

鈥淲e are also focusing on firms with a turnover up to 拢150m. We don鈥檛 tend to use companies bigger than that. Small firms have more reasonable costs and, when we want to become
a big client, they give us the care and attention we deserve. Big firms can make us feel a bit like small fry.

We鈥檙e also looking for innovation and sustainablity credentials in supply chain members.鈥�

This article appeared as Private developers: Do you fit their bill? in Buliding magazine