Howell, 43, was offered a role as corporate development director but chose to leave. He will stay on as an adviser until he finds a new job.
Sir Fraser, 51, who has been executive chairman for the past two years, will become chief executive and chairman.
The move surprised other industry players. “I must say it came as something of a shock,” said one Scottish contractor.
Morrison is seen by many clients and analysts as a “quality” contractor. But Sir Fraser ’s decision to retake the reigns is believed to be a result of growing frustration with the group’s recent performance with key clients.
The move will see Morrison reshaping its business into three parts: construction (including infrastructure), asset management (utilities and facilities management) and development (including private finance initiative projects).
Sir Fraser said: “We have been too compartmentalised. The new make-up will give more co-operation between our regional businesses and will allow us to provide a better service to national clients such as Railtrack.”
Other board changes see Stephen McBrierty become group director of operations, Gordon Morrison group director of sales, and Michael Martin group director for all construction. Finance director Bob Green is now also responsible for corporate development.
