Mowlem’s déjà vu

Remember that rather large contractor called Laing, which suffered near carbon copy troubles four years ago? Problems with management resulting in nasty losses and disputes on high profile projects could well lead Mowlem down the same track as Laing, which was famously sold to concrete contractor Ray O’Rourke back in 2001 for a quid, although it subsequently emerged that it actually cost the plc a whopping £30m to actually complete the sale. Mowlem announced on Monday to the Stock Exchange that it received an initial approach from an unnamed suitor. If a sale progresses who’s betting that the value of Mowlem, quoted by City experts this week at over the £300m mark, will be the final amount paid? The odds must be long given that O’Rourke initially expected to pay £50m for Laing Construction before undertaking a Herculean due diligence process for a large part of 2001. It is difficult to compare the contractual problems of the two given that Mowlem is still in the midst of its troubled projects, which include the now infamous Bath Spa, a PFI scheme in Exeter and the Dublin Port Tunnel (see news). Perhaps the firm has more value as a whole than Laing Construction given it has stakes in PFI schemes and facilities management businesses. It may even be able to rebuff an offer given it is now under new management. But don’t expect the sale if it happens to be a quick one.

The chaotic situation with regards to building regulations is laid bare by our columnist Robin Hayward this week (see page 12). The confusion surrounding the myriad new laws and rules being published by all manner of institutions is affecting all layers of the industry. We are keen to hear your stories on the bureaucratic nightmare you are in the midst of at present. Send your experiences to: qsnews@cmpinformation.com