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Stakeholder engagement

We believe that engaging with our stakeholders systematically and proactively is an essential element in the continuing success of the Group.

There is a comprehensive corporate and operating company-based communications programme aimed at ensuring that all employees have access to the information they need. Most operating companies conduct regular employee attitude and opinion surveys. In 2007, the first Group-wide survey of employee opinion is planned.

Balfour Beatty runs an active shareholder engagement programme involving regular roadshows and one-to-one meetings. During 2006, senior executives held over 100 meetings with shareholders, representing, in aggregate, approximately 60% of the issued ordinary share capital. All financial presentations are webcast.

Most of the Group's operating companies run regular customer attitude and opinion surveys. A substantial proportion of the Group's business is conducted with organisations where operating companies have long-term relationships.

An increasing proportion of the Group's supply base is retained in long-term relationships based on the compatibility of their values and behaviour as well as product quality and price.

Over half of Balfour Beatty's work is carried out for governments. The Group seeks active and positive relationships with governments, their officers and advisers and relevant industry regulators to ensure its policies and activities align with their key requirements.

It is Balfour Beatty's policy that all of its major projects have a dedicated community relations team. Typically, major projects will be preceded by exhibitions, and regular newsletters and letter drops will keep interested parties informed at key project milestones. There will be regular visits to schools and other local institutions.

Balfour Beatty plays a part in tackling key industry issues by taking an active role in Engineers Against Poverty and Transparency International.

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