Clearing the Confusion
| Clearing the Confusion Your article on the Miami Performing Arts Center, "Deal Cut to Expedite Miami Arts Center Job," is a good report on a troubled project that’s been set right through Agency Construction Management (ENR 8/30-9/1 p. 12). In one respect, though, it adds to the confusion in the construction industry about what CM is and is not. One of the key players in the project compares agency CM to "a design-build type collaboration." In agency CM, the construction manager works directly and solely for the project owner, providing advice and services with only the project’s success in mind. Agency CM is not a project delivery system but has been shown to work equally well with any of the commonly used systems. In fact, when a professional construction manager begins working for an owner in an agency CM contract, often one of the CM’s first services is to help the owner select the best delivery method for the specific project. In Miami, agency CM has provided true leadership and collaboration to a project plagued by delays and cost overruns. These benefits can be realized right from the start by involving a professional construction manager in a project at the predesign stage. Bovis Stays Put Your article on Bovis Lend Lease, "Parent Firms’ New Strategy Appears to Oust Bovis Chief," refers to industry speculation that Lend Lease’s proposed merger partner, General Property Trust, has questioned the role of Bovis Lend Lease in the merged group (ENR 8/30-9/6 p. 16). Recently, GPT’s independent directors unanimously agreed to recommend a merger with Lend Lease to their unit holders. One of the key attractions for GPT unit holders in merging with Lend Lease is the lift in earnings growth outlook that Lend Lease will provide to GPT. And this growth is underpinned, in the medium term, by Bovis Lend Lease. Under the proposed merger, Bovis Lend Lease plays a critical role primarily because it is a high-performing business, which has a solid backlog of secured earnings, strong growth and a leading position in each of its core markets. This cements our standing as one of the top ten international project and construction management companies. Testament to our strong reputation of quality and know-how, which delivers high levels of repeat business, is that 86% of our Americas business stems from working with established clients. The merged group will continue to undertake significant amounts of development work around the world, particularly in the retail and large master planned residential areas. GPT and Lend Lease have undertaken development work using our in-house project management and construction expertise. It has been a key element to effectively de-risk the cost side of the development equation and to provide a better product. Therefore, it is evident that synergies can be captured and are indeed strengthened by having Bovis Lend Lease as part of a merged entity. Bovis Lend Lease is an integral part of the Lend Lease Group. Bovis Lend Lease is at the heart of our business globally and there it will remain.
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