The leading company is distracted by the bright lights of London.
These are busy times for businessman McLaren. The company is involved in projects across the country, staying true to its roots in the logistics and warehousing sectors. At the same time, he works on large-scale new build, renovation and extension projects in London.
These come with the £132 million transformation of the former House of Fraser store at 318 Oxford Street into a commercial and advertising development for the Publica Properties establishment.
But in a meeting with Construction News at McLaren’s plush offices, the company’s leading executive, Paul Heather, rejected the suggestion that the task was the company’s “flagship” task. “We don’t need who we are,” he said. “And we don’t need to turn our backs on our history either. There is a common thread of commercial logistics that runs through the company, specifically in the Midlands and the North. And the relationships that the senior team has in this component of the organization are the most productive I have noticed in terms of loyalty.
Heather’s career saw her spend 18 years at Skanska, followed by a fourth at Sir Robert McAlpine. She joined McLaren two years ago as the organisation’s general manager of construction, before taking on the role of organisation’s managing director last November.
As McLaren approaches the end of its fiscal year on July 31, Heather reflects on the difficult market conditions. “We’re doing what we said we would do at the beginning of the year,” he said, adding that the company was “sort of” meeting its £1 billion profit target in 2023/24.
“The only challenge we’re facing along the way – and it’s an industry-wide challenge – is that projects are taking longer and longer to start. I would say that in the last five years, the average time to start work after the contract has been awarded has doubled, from three to six months.
This year has been difficult, Heather added. “We don’t seem to see or feel any respite in terms of time, effort, and power to complete and make projects successful. »
Instead of a sprint, the bidding is now a “marathon,” according to Heather. “So it’s tough and you have to be on your ‘A’ game. You want to have the right people, skills, and experience to demonstrate that you can deliver on your promises, and you want to understand the task internally and externally, from a technical perspective.
He added that other people may get a little tired of a lengthy bidding process, but there are still benefits to be made, in addition to forming alliances with partners in the chain. ‘supply. The path to winning the contract is almost as important as incremental revenue, he says. “It’s very important. We’ve spent time building relationships, although we haven’t won each and every tender, but we have a moderate rate of luck in winning them.
Even on complicated projects, Heather says it’s imaginable to be informed of adversity. “We know of projects that have been complicated and very complicated. But they are the ones who want to receive even more support, since they will gain benefits from the experience of being informed.
“Every task has demanding situations; The important thing is how to triumph over them. »
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