Davis Langdon boss predicts that crossover technology will revolutionise the art of QSing

Davis Langdon senior partner Rob Smith has predicted that the construction industry will be revolutionised in the next decade due to the onset of globalisation and new technology.

Smith has tasked a group at the firm to envisage how the industry might change in the next five to ten years including the likelihood of an industry-wide take-up of computer generated design.

He said: “One or two architects are starting to use aviation technology.

In aviation it means you can design a Boeing 777 in a matter of days. If this comes into construction it means how we procure buildings will be very different quite quickly. It would be a massive step forward.”

Smith, in an interview with QS News following the release of the firm’s first financial results as a limited liability partnership, said the firm was also looking at ways of importing materials from China and India into Europe in order to reduce costs for clients.

He cited a recent example of a scheme where the firm sourced stone from China and saved 80% of the cost. “We got it for the same price as if it had been concrete,” Smith said. “Everyone has one of those sorts of stories but I can see major clients demanding this more and more. It will make European manufacturers more competitive. If they are not careful it will price them out of the market.”

Smith said he was also seeing an increase in Davis Langdon’s geographic network of offices working together, a further sign of globalisation. The firm has also increased this geographic reach by forming an association with Moscow-based QS and project manager Ruperti Project Services International.

He said: “I was sitting in a restaurant in Hong Kong with a big developer who we are already working with in China. He was looking at an enormous job in India as well as schemes in Glasgow and stuff in Miami. Making international relationships in our firm is absolutely the future.”

It will make European manufacturers more competitive. If they are not careful it will price them out of the market.

Rob Smith, senior partner, Davis Langdon

Smith was speaking as the company announced a 37% increase in pre-tax profits, to £25m, on turnover of £106m. The new LLP covers the firm in Europe and the Middle East – the firm’s other geographic divisions in Asia, Africa and America push the global turnover up to £150m.

Smith said he had not set any specific growth targets. He said: “None of the (financial) statement says we are growing by x or y.

We have had a terrific year but we want to match our capability with our growth.”

Smith stressed that the firm’s success was a “team effort” and played down his personal salary, which came in at £507,000. The average profit share of partners was £173,000. Smith said: “There’s not a significant gap between me and the other partners (in terms of pay). That’s wholly appropriate.”

Smith said he was happy with the structure of the firm’s UK office base. He said: “The majority of offices in the UK have 60 staff with six partners or are approaching that number. We feel unless you get to that mass you’ve not really got the depth to provide a consistent service.”

Smith said he would be focusing on improving the range of training at the firm. The company has hired a new head of human resources, Jill Pett, who was formerly at lawyer Mayer Brown Rowe & Maw.

Smith said: “We feel she is going to help us develop a culture of learning. In all honesty, beyond the graduate training our training is patchy.”