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Balfour Beatty backs BuildOnline

Balfour Beatty announced today that it has chosen BuildOnline as its preferred supplier of ebusiness software solutions. BuildOnline’s suite of web based products spanning project collaboration, tendering, and procurement will be rolled out across Balfour Beatty’s business. The program is part of Balfour Beatty’s ongoing strategy to develop innovative management of its business processes.

‘After an extensive evaluation we have made a clear choice to partner with BuildOnline. Over the past three years BuildOnline has developed market-leading software, which I estimate will enable Balfour Beatty to target operating efficiency savings in excess of £20million. With their new cash injection it is clear that they will be one of the strongest players in the technology shakeout,’ said Paul Lester, Group Managing Director, Balfour Beatty.

Through the strategic partnership, BuildOnline will dedicate key resources to implementing its solutions within Balfour Beatty. ‘This is a coup. Balfour Beatty is not only one of the largest, but also one of the most profitable, and most highly regarded contractors in the UK. As an innovator in the sector Balfour Beatty’s decision is a strong endorsement that eConstruction is here to stay,’ commented Mark Suster, CEO, BuildOnline.

Balfour Beatty plc, the international engineering and construction services group is one of the most influential companies in the construction supply chain. It has a turnover of £2.6billion through operations that include commercial and civil construction in building services and asset management, specialist rail engineering and services, and investment and development including PFI contracts. ‘At Balfour we manage many hundreds of projects a year, and have relationships with approximately 10,000 suppliers, and sub-contractors, with an annual spend in the region of £1.6billion. All of these involve substantial co-ordination, communication, and paper work. There are huge timesavings to be made in managing these processes online. Improving efficiencies in our core activities will provide a significant competitive advantage, and an improvement in value delivery to our shareholders’, said Mike Welton, Chief Executive, Balfour Beatty

‘Balfour Beatty throwing its weight behind eConstruction is the start of a step change in the adoption of Internet software in the construction industry. We expect this to have positive ripple effects throughout the construction supply chain,’ said Mark Oliver, Managing Director, BuildOnline UK, who was previously a Managing Director of the £450million BSS Group.

This announcement coincides with other groundbreaking news and international recognition for BuildOnline. Firstly, BuildOnline announced its third round funding of £10m, the largest funding base of any European Internet software company for the Property and Construction Industry. (1 – see press release dated 3rd April) Secondly, BuildOnline announced a strategic alliance with BT to deliver online services to the UK Construction industry (2 – see press release dated 3rd April). Finally, BuildOnline earned the recognition of Jupiter Research as ‘One of the 10 most likely B2B’s in Europe to succeed’*

BuildOnline has developed an integrated suite of products spanning project collaboration, tendering, and procurement, designed specifically to speed up the existing processes in the property and construction industry. It sells its software on a licence basis, and provides training and advice in transferring to web based processes. It operates in the UK, Ireland, France and Germany. BuildOnline is led by a strong management team, combining deep industry and technology experience.

More details about BuildOnline’s services can be found by visiting www.BuildOnline.com

Ends

* Europe's Online B-to-B Winners. Latest research from Jupiter MMXI, the leading Internet research company, identifies the ten online B-to-B Net Markets best placed to succeed. www.jupiterresearch.com

For more information about BuildOnline, contact:

Gail Kirby, BuildOnline: 020 7836 2883, gkirby@BuildOnline.com, or visit www.BuildOnline.com

For more information about Balfour Beatty, contact:

Tim Sharp, Balfour Beatty: 020 7216 6800, tim.sharp@balfourbeatty.com, or visit www.balfourbeatty.com

Notes to editors

Balfour Beatty is one of the UK’s largest international engineering, construction and services groups. Its aim is to create shareholder value by providing engineering, construction and service skills to customers for whom infrastructure quality, efficiency and reliability are critical.

It operates in four broad areas:

Building, Building Management and Services

Balfour Beatty is an international specialist in the design, construction, equipping, maintaining and management of buildings and selected aspects of their internal environment.

Civil and Specialist Engineering and Services

Balfour Beatty is a leading provider of civil and other specialist engineering design and management services, principally in transport and energy.

Rail Engineering and Services

Balfour Beatty is an international leader in the design, construction, equipping, maintenance, management and renewal of rail assets and systems.

Investments and Developments

Balfour Beatty promotes and invests in privately funded infrastructure projects and developments in selected sectors in the UK and overseas

It has a number of key strengths which differentiate it from its competitors:

Support service expertise

Balfour Beatty has substantial operations in rail and road maintenance, facilities management and programme and construction management.

Superior construction margins

Balfour Beatty earns superior returns from its market-leading UK construction and construction services businesses.

Major US presence

Balfour Beatty has leading US businesses in civil engineering, programme and construction management, rail engineering and building management control systems.

Worldwide railway engineering

Balfour Beatty is an established international leader in designing, constructing, installing and maintaining fixed rail infrastructure.

Private finance portfolio

Balfour Beatty has a portfolio of 11 PFI concessions, which will provide a stable long-term profit and cash stream