Aecom鈥檚 construction services division initially targeting commercial and residential schemes
Clients and rival consultants have given a mixed reaction to the launch of Aecom鈥檚 UK contracting business, welcoming the launch of a new business proposition, but expressing concern about the firm鈥檚 ability to provide independent consultancy advice under a combined business model.
Last week Aecom confirmed it has launched a contracting business in the UK initially targeting mid-size commercial and residential schemes.
The US-based construction giant - with global revenue of $19.2bn (拢12.7bn) - is best known in the UK as a consultant and engineer, having largely built its 7,400-strong UK business through the acquisitions of QS Davis Langdon and engineer URS.
But Aecom confirmed last week that it is now targeting becoming a major player in the UK contracting market. Aecom鈥檚 UK construction services division has already picked up five construction contracts and 拢50m in revenue. The firm says it is initially targeting projects worth between 拢5m and 拢40m, but says its long-term target is to pursue projects worth up to 拢100m and beyond.
Aecom has recruited three former Bovis Lend Lease directors to oversee the venture. John Hilton will lead the UK construction services division, John Spanswick has joined as non-executive director for construction services in the UK and Europe, and Mike Fletcher has been hired as EMEAI construction services chief executive.
Aecom already carries out contracting work elsewhere in the world, most notably in the US, where its subsidiary Tishman built New York鈥檚 One World Trade Center skyscraper (pictured).
Commenting on the news, Peter Rogers, co-founder of developer Lipton Rogers, said he was 鈥渘ervous about the one-size-fits-all approach鈥 associated with 鈥渕ajor conglomerates鈥. He added: 鈥淲e call it the grit in the wheel - you want to have some challenge between project team members. I don鈥檛 know how you get that in a major conglomerate.鈥
But Rogers said he was open-minded about Aecom鈥檚 UK contracting launch: 鈥淐an you do the best design and construction in one place? I鈥檇 love to see it [鈥 We鈥檒l wait and see.鈥
Richard Steer, chairman of rival consultant Gleeds, said combining consulting and contracting was 鈥渘ot a new offering鈥 in the UK, noting that Mace and the former Bovis Lend Lease business offered similar combinations of services.
Steer said clients may be sceptical of a 鈥渙ne-stop-shop offering鈥, adding: 鈥淚 know of clients that have moved from a consultant to a contractor [within the same group] who have been hood-winked because they haven鈥檛 had an independent assessment of the project [from the consultant].鈥
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