Slide 1: Sharing knowledge: Heathrow Terminal 2B Site Visit
Sharing knowledge Heathrow Terminal 2B Site Visit 7 December 2011
Slide 2: Duncan Magrath, Chief Financial Officer
Duncan Magrath Chief Financial Officer
Slide 3: Agenda
Agenda Heathrow Terminal 2B – Project presentation Steve O’Sullivan Discussion with the customer Steven Morgan, BAA Safety briefing Site tour Knowledge and integrated delivery – a key differentiator Mike Peasland Knowledge transfer and inter-divisional synergy Andrew McNaughton Tea break Q&A session
Slide 4: Steve O'Sullivan, Framework Director
Steve O’Sullivan Framework Director
Slide 5: Developing the BAA relationship
Developing the BAA relationship Early 90’s Aberdeen – Glasgow airport international pier 2003 – Acquisition of Mansell Edinburgh – Joined BAA partnering framework 2000/05 – Terminal 5, Balfour Beatty Glasgow 2nd largest contractor – Heathrow Express extension (Hex) – Piccadilly line Extension
Slide 6: Aerial view of Heathrow – 2014
Aerial view of Heathrow – 2014 Existing Western Campus Existing Central Area New Eastern Campus T5A T5B T5C T3 T1 T2A T2B Phase 2 T2C Sharing knowledge 5
Slide 7: Heathrow's new Terminal 2
Heathrow’s new Terminal 2 Sharing knowledge 6
Slide 8: Terminal 2 replacement (T2) at Heathrow
Terminal 2 replacement (T2) at Heathrow T2B T2A T2 Programme is a £2bn major T2Bcapital investment by BAA Brings 18 STAR Alliance partners under one roof 20m passengers under initial phase Replacement of the old 1950’s Terminal 2 Operating by summer 2014 Built in a Live Airport environme
Slide 9: T2B – Design and Build by Balfour Beatty
T2B – Design and Build by Balfour Beatty Sharing knowledge 8
Slide 10: T2B Phase 1 – Completed by Balfour Beatty
T2B Phase 1 – Completed by Balfour Beatty Phase 1 of development – cost of £95m Brought 6 aircraft stands into operations Enabled construction of 2nd phase Exceptional safety record Delivered early, defect-free and to budget T2B Sharing knowledge 9
Slide 11: T2B Phase 2 – Being delivered by Balfour Beatty
T2B Phase 2 – Being delivered by Balfour Beatty 10 more aircraft stands Retail provision of approx. 1,275m2 3 CIP lounges with 3,600m2 floor area 4,000m2 of airline ops accommodation Safeguarded baggage basement Underground passenger access tunnel Safeguarding for future Track Transit
Slide 12: T2B Phase 2 – Programme challenge
T2B Phase 2 – Programme challenge 30+ active stakeholders 90+ design briefs Safeguarded baggage facility to T2B and extension to T2C Programme demands changed construction techniques Open Cut <Bath Tub= replaced with Diaphragm Wall solution Longer piles driven from Apron Level (35km of p
Slide 13: T2B Sharing knowledge
T2B Sharing knowledge 12
Slide 14: Enabling phase 2 – the October 2010 story
Enabling phase 2 – the October 2010 story Pier 3 KILO CUL DE SAC T2B Ph 1 Open SITE OFFICE Sharing knowledge 13
Slide 15: Enabling phase 2 – the October 2010 story
Enabling phase 2 – the October 2010 story Sharing knowledge 14
Slide 16: Enabling phase 2 – the October 2010 story
Enabling phase 2 – the October 2010 story Sharing knowledge 15
Slide 17: Construction challenges
Construction challenges Largest ever airside project at Heathrow Enabling works to clear entire footprint 2km of diaphragm walling; largest in Europe 700 large bore piles and 160 plunge columns 575,000 m3 of excavation (15m deep) 165,000 m3 of reinforced concrete 5,000 t of structural
Slide 18: Achievements
Achievements Design completed – PB integral part of team – leading to £30m betterment Diaphragm Wall completed ahead of schedule by engineering services Earthworks ahead of programme Spoil being used to regenerate local household waste tip Structural steelwork commenced on time Third RoS
Slide 19: Effective project controls
Effective project controls Project Controls Continual updates Office and work front task Measure achievements against planned Long-term Look ahead Implement <honest= systems Sharing knowledge 18
Slide 20: Systems map – Realising BIM
Systems map – Realising BIM Review Tools MEP/ICS Design - Navisworks 2D/3D CAD Design - CAD-Duct - AutoCAD Architecture - Design Review - ElcoCAD - Revit - Amtech - TEKLA Xsteel - Google Sketchup - Others XML Formatted Datasets - GIS - Asset Register - Maintenance plans Databases – STAG Access Contr
Slide 21: Building Information Management (BIM)
Building Information Management (BIM) Use of BIM allows change to be fully assessed before making untested decisions Sharing knowledge 20
Slide 22: Next steps
Next steps M&E off-site modules arriving Procurement complete £1m / day spend profile in 2012 Construction completion by Q4 2013 Integrating project into operations by Q2 2014 Maintain and improve upon safety achievements Continue development of BIM Transfer innovation into future Q6
Slide 23: Balfour Beatty differentiators
Balfour Beatty differentiators <Balfour Beatty is one of those Single point of service to clients utilising full Group companies who routinely looks for the capabilities better way to make things better. From Early Contractor Involvement – Using PB at scheme what I have seen innovation and safet
Slide 24: Why Balfour Beatty
Why Balfour Beatty INDUSTRY DIFFERENTIATORS BAA DIFFERENTIATORS • Proven Group capability (T5, T2B, Edinburgh • Mature business-to-business relationship Airport) • Proven delivery in complex airside restricted • Design and BIM capability in Parsons areas Brinckerhoff • Understanding stakeholders’ ne
Slide 25: Steven Morgan, Capital Projects Programme Director, BAA
Steven Morgan Capital Projects Programme Director BAA
Slide 26: Discussion with the customer
Discussion with the customer
Slide 27: Mike Peasland, CEO Construction Services UK
Mike Peasland Chief Executive Officer Construction Services UK
Slide 28: Knowledge and integrated delivery as a key differentiator
Knowledge and integrated delivery as a key differentiator
Slide 29: M74
M74 Value £440m Completed June 2011 Major Civil Engineering Regional Civil Engineering Regional Building Sharing knowledge 28
Slide 30: A3 Hindhead
A3 Hindhead Value £289m Completed July 2011 Civil Engineering Building Construction Mechanical & Electrical Systems Sharing knowledge 29
Slide 31: Fife Hospital
Fife Hospital Value £170m Completed Oct 2011 Investments Construction Mechanical and Electrical Services FM Services Sharing knowledge 30
Slide 32: Aquatics Centre
Aquatics Centre Value £265m Completed July 2011 Parsons Brinckerhoff Ground Engineering Civil Engineering Building Construction Mechanical and Electrical Services Sharing knowledge 31
Slide 33: Blackfriars
Blackfriars Value £460m Construction in progress Parsons Brinckerhoff Civil Engineering Building Construction Mechanical and Electrical Services Sharing knowledge 32
Slide 34: Major customers 2011
Major customers 2011 Sharing knowledge 33
Slide 35: Knowledge capability, customer asset knowledge, vertical markets
Knowledge capability Customer asset knowledge Vertical markets Sharing knowledge 34
Slide 36: Growth markets
Growth markets Energy New nuclear Rail Sharing knowledge 35
Slide 37: Energy
Balfour Beatty
Slide 38: Energy gap
Energy gap Significant long-term growth MW anticipated as UK strives to 90,000 manage key policy objectives 80,000 Capacity Necessary for Reliable Supply – Security of supply 70,000 System Peak Demand – Reduction in carbon emissions 60,000 (80% target by 2050) New Wind Offshore – Delivery of affor
Slide 39: Energy: the energy gap is anticipated to open up
Energy In the short term, the <energy gap= is anticipated to open up by 2015- 2017 as existing coal and nuclear plants start closing Addressable market of some £6bn pa (excl. new nuclear) by 2015 Addressable market £7,000m £6,000m £5,000m £4,000m £3,000m £2,000m £1,000m £0m 2011 2012 2013 2014 2
Slide 40: New nuclear
New nuclear Balfour Beatty
Slide 41: New nuclear
New nuclear Growth market as low carbon alternative energy source to meet UK demand Addressable market – Ageing nuclear and coal plants to come offline £1,000m 950 Coalition government has adopted pro-nuclear stance £900m with eight sites identified for investment over next 20 years – £100bn (of
Slide 42: Rail
Balfour Beatty
Slide 43: Rail
Rail Sector left relatively unscathed by CSR despite £1bn scope reduction on Crossrail and output expected to increase significantly given anticipated 30% passenger growth in mainline rail to 2017 Investment to exceed that for Roads for the first time on record Network Rail funding of £34.6bn
Slide 44: Andrew McNaughton, Chief Operating Officer
Andrew McNaughton Chief Operating Officer
Slide 45: Knowledge transfer and inter-divisional synergy
Knowledge transfer and inter-divisional synergy
Slide 46: Knowledge transfer
Knowledge transfer Broad capability across the life cycle of key infrastructure assets Deep asset knowledge Transferring knowledge – Drives innovation – Creates opportunity by differentiating us Sharing knowledge 45
Slide 47: BAA: offsite manufacturing and BIM
BAA Offsite manufacturing process BIM modelling Manufacturing and assembly facility in Wednesbury Design innovation Value to customer Sharing knowledge 46
Slide 48: Birmingham Hospital: Modelling and modular construction
Birmingham Hospital Modelling and modular construction BIM model-enabled development Prefabrication and pre- assembly of M&E systems Applied to quality, commissioning risk management and efficiency Cladding and curtain walling Sharing knowledge 47
Slide 49: Birmingham Hospital: Hospital knowledge applied to design
Birmingham Hospital Hospital knowledge applied to design Integrated modular walls in wards and operating theatres Simplifies installation – Electrical systems and medical gasses Interfaces with modules and modular wiring Experience of owning and operating hospitals Sharing knowledge 48
Slide 50: Education sector: Reducing the cost of delivery
Education sector Reducing the cost of delivery Designed a system build model that allows flexibility Now being used at Hertfordshire Schools Thought leadership in the industry – Submitted to the Department of Education’s Capital Review Sharing knowledge 49
Slide 51: Energy sector: New service offerings through asset knowledge
Energy sector New service offerings through asset knowledge Energy services company model developed by Support Services Making improvements to assets to reduce energy consumption Sharing knowledge 50
Slide 52: Parkland Hospital, Dallas: Knowledge transfer to the US
Parkland Hospital, Dallas Knowledge transfer to the US Prefabrication knowledge transfer Manufacturing facility in Texas commences in February 2012 Operational savings Market differentiation in US building sector with BIM modelling Sharing knowledge 51
Slide 53: Abu Dhabi BK Gulf
Abu Dhabi BK Gulf Trialled in Dubai three years ago Servicing ongoing M&E contracts across the UAE Crowne Plaza Hotel in Abu Dhabi completed 18 months ago – Traditional construction required 1200 people – Was completed with under 1000 with offsite assembly Sharing knowledge 52
Slide 54: BIM modelling in infrastructure projects: Hong Kong West Kowloon Terminus
BIM modelling in infrastructure projects Hong Kong West Kowloon Terminus Differentiation through: – Clarity of design – Management of risk and quality – Confidence in delivery Sharing knowledge 53
Slide 55: Transportation infrastructure: Use of knowledge as a differentiator
Transportation infrastructure Use of knowledge as a differentiator Sharing knowledge 54
Slide 56: Rail: Denver P3 project
Rail Denver P3 project Developed capability in rail projects and maintenance in the US Position enhanced significantly with the acquisition of PB – Design – Project management – Systems integration Sharing knowledge 55
Slide 57: Delivery capability transferred to PB
Delivery capability transferred to PB Knowledge and experience of upgrading the London Tube network Key factor in PB becoming the programme manager for Washington MTA Sharing knowledge 56
Slide 58: Bringing wider capability together in rail
Bringing wider capability together in rail Rail design and rail delivery Solution to East Kent Spur for Crossrail Civil, building and M&E capability One integrated team for Network Rail Sharing knowledge 57
Slide 59: Integrated capability in Australia
Integrated capability in Australia PB and Rail Construction Design and construction capability in JV with civil contractor Unique proposition in Australia Sharing knowledge 58
Slide 60: Conclusion
Conclusion Integration of capability Transferring knowledge Applicable to many sectors from rail and transportation through to power and natural resources Increasing breadth of business opportunity Sharing knowledge 59
Slide 61: Forward-looking statements
Forward-looking statements This presentation may include certain forward-looking statements, beliefs or opinions, including statements with respect to Balfour Beatty plc’s business, financial condition and results of operations. These forward-looking statements can be identified by the use of forwar