BAA has said it will rein in costs on its upgrade of Heathrow airport by raising professional standards

Colin Matthews, BAA’s chief executive, said at a Movers and Shakers networking event last Friday that the upgrading of Terminals 1 and 4 and the demolition of Terminal 2 would be done more cost effectively than projects in the past.

He said: “We will spend £4bn across Heathrow over the next four years.

We want to cut costs with better quality design and by integrating construction and design.”

One major contractor predicted cost-saving measures could include BAA slashing its current framework of contractors in half before 2010.