精东影视

If there鈥檚 one figure in UK construction that fascinates the industry, almost on a par with Ray O鈥橰ourke, then it鈥檚 Mace executive chair Stephen Pycroft. The former Bovis project manager, who started his career as a site labourer, has presided over a period, since taking over from Bob White in 2004, in which Mace has grown tenfold, and transformed from a construction manager to one of the biggest contractors in the land 鈥� among many other things. Last year his firm, which encompasses fixed-price contracting, consultancy, construction management and facilities management, and works across both building and civils work, at home and overseas, turned over 拢1.49bn and it is well on course to hit its 拢2bn turnover target by 2020. Recent months have seen the builder of the Shard mop up a string of high-profile jobs, including that of main construction partner on Tottenham Hotspur鈥檚 拢400m new stadium.

It鈥檚 fair to say majority shareholder Pycroft is the antithesis of the smooth City-friendly corporate managers that run many big builders. Passionate and tough, he has a reputation as a hard taskmaster who is not averse to using the occasional verbal hairdryer to pull people up.

One of Pycroft鈥檚 biggest clients says: 鈥淎 born leader, very honourable and tough as nails. People are scared of him because he鈥檚 direct, but he鈥檚 one of the best people we deal with.鈥�

So there was little competition when deciding who to ask as the keynote interviewee for 精东影视鈥檚 inaugural 精东影视 Live conference last week. And Pycroft himself, seemingly keen to dispel any notion he might have retired since passing the chief executive baton to Mark Reynolds in 2013, took little time in accepting the challenge. But, given his straight-talking reputation, it was hard to know how he鈥檇 react to an on-stage grilling. 精东影视 editor Sarah Richardson put the questions, and below are the highlights of a much more revealing exchange than anyone could have expected.

PYCROFT ON 鈥� the market

Sarah Richardson: How are you finding the market at the moment?

Stephen Pycroft: Anybody in the room not seeing the market going up and up right now is not in the right business. But there鈥檚 a major question mark at the moment that, 18 months from now, is it going to be sustainable? There鈥檚 a nervousness that says, two years from now, can we see these major projects going through. That鈥檚 what Mace is questioning right now. Which projects should we pick, where should we aim for 2019-2020 鈥� is it [the market] there? That鈥檚 where we concentrate the target now.

You鈥檝e got to hand it to [the Chinese], they鈥檝e worked it well. They鈥檙e coming and they鈥檙e going to get stronger and stronger

Pycroft on Chinese contractors winning work in the UK

SR: So is there any area in particular that you鈥檙e looking at?

SP: Most people are concerned at where the residential market is going 鈥� is it softening? What is the spend profile [on projects] over about 拢1,000 per ft2? If one or two resi jobs drop off, will that send a ripple effect? You look at if the Chinese market is going to stall, is that going to affect investment in the UK? Russia鈥檚 in turmoil. So you go what is it going to do? If one or two jobs do stop then is that going to remove the confidence? And you know it鈥檚 all about confidence in London. We鈥檙e now talking about south of Watford, still up north there鈥檚 very little major construction going on.

Even abroad, the likes of Qatar with the oil price reduction, there鈥檚 a reduction in major pipelines of work. Even in Dubai there鈥檚 a constraining of projects coming through, which worries us, as a global company.

PYCROFT ON 鈥� Chinese contractors

SR: As how much of a credible competitive threat do you see Chinese contractors?

SP: They鈥檙e coming, the Chinese, and they will be credible. Most people that know me know that I was a bit annoyed to say the least that we lost One Nine Elms to China State and Interserve.

The clever thing they [Chinese developer/contractors] do [is that] when they bring Chinese finance, they expect a Chinese contractor to come with them. And with a Chinese contractor they expect Chinese materials as much as possible. You鈥檝e got to hand it to them, they鈥檝e worked it well. They鈥檙e coming and they鈥檙e going to get stronger and stronger.

We鈥檙e not going to stop it. The question is how the hell are we going to adapt, as Mace, to compensate for it. Because I think a Chinese contractor must buy a major contracting organisation in the UK, to give themselves credibility in the UK market. At the moment they鈥檙e winning all the work, where a Chinese funder is there. Soon they鈥檒l just buy somebody and then they鈥檒l be a mega force to be dealt with.

SR: Are you talking Mace or someone else?

SP: Not Mace. It was rumoured they looked at Balfour Beatty. But I think it鈥檚 only a matter of time. It won鈥檛 be Mace, by the way.

PYCROFT ON 鈥� who鈥檚 in charge?

When the red mist descends and I lose my head and people get a few verbals, it鈥檚 because we鈥檙e not doing what we鈥檝e promised. And that鈥檚 when I get tough

Pycroft on his 鈥榯ough鈥� reputation

SR: You鈥檙e executive chairman of Mace, so how hands on are you, and who鈥檚 really in charge?

SP: Mark [Reynolds is] the chief exec and he runs it day to day. I鈥檓 there to support him and give him strategic direction. I love it when people say 鈥淪tevie, I thought you鈥檇 retired, I thought you were taking it easy.鈥� Far from it. My view is that I help Mark strategically, and I work with clients and help deliver construction projects. I鈥檓 personally involved with a number of projects where Mace has challenges. Mark may be guided occasionally.

SR: That sounds pretty hands on to me.

SP: Yes. That鈥檚 what I like doing. Most clients, when they get Mace, they expect a hands on board director.

SR: What happens if you disagree?

SP: If Mark and I disagree it鈥檒l be in a private room where the two of us have a debate. And whether he鈥檚 right or I鈥檓 right, we鈥檒l both agree that鈥檚 the way forward, because we can never show any disconnect outside of that room.

PYCROFT ON 鈥� getting tough

SR: You have a reputation for being very tough, particularly early in your career. Have you mellowed?

SP: It鈥檚 not about being hard. I think I expect, and clients expect of Mace, that people do what they say they鈥檙e going to do. If you say you鈥檙e going to do something on the tin, do it. When the red mist descends and I lose my head and people get a few verbals, it鈥檚 because we鈥檙e not doing what we鈥檝e promised. And that鈥檚 when I get tough.

I鈥檓 straightforward and it鈥檚 very easy 鈥� you鈥檝e said you鈥檙e going to do something, [so] do it. And if you don鈥檛 do it, get ready to get your head chopped off because we鈥檙e not going to mess around. This is not a lightweight game 鈥� we鈥檙e dealing with lots of money and reputations. And Mace鈥檚 reputation is built on doing what you say you鈥檙e going to do. And at times I get really annoyed when we fail to do that. The expectation is step up. People who work with me get an easy ride if they do what they do and do it well. If they don鈥檛, well, be careful, because it鈥檚 not going to be pleasant. And that鈥檚 in a light manner without the expletives.

PYCROFT ON 鈥� suppliers

SR: You have an initiative with your suppliers, Mace Business School, that I think Mace presents as a CSR benefit. I鈥檓 aware there are some people who object to the fact they have to pay fees to be a part of this and see it as a way for Mace to make money off its supply chain. What鈥檚 your response to that?

You know what? We鈥檝e done what we said we鈥檇 do. We鈥檝e been instrumental in helping the UK deliver the Olympics And we鈥檝e delivered the Shard

Pycroft on his proudest moments

SP: We鈥檝e had this on a number of occasions and we say if people don鈥檛 want to be members of the supply chain or the Business School then don鈥檛 be members. You know what, there鈥檚 an expectation again that people are trained in what they do. And there鈥檚 one thing in this industry we don鈥檛 do, is train our people. So we set up this academy to try and train our suppliers for two ends really. One, if they can do their job better, plan it, organise it, manage it better, know how to write a method statement, a risk assessment, a lifting plan and all this other bureaucracy that seems to have crept into this industry 鈥� it would make it easier for our managers on site. So our view is join the club, take full advantage of it. And by the way, if we want to tweak an individual programme to get the best for your industry, then we鈥檒l do it. Those people who embrace it, and want to learn and improve, never question it. There are those people that say we never get on the Mace supply chain because we don鈥檛 pay the business school fees 拢30,000 a year or whatever it is. And we ask: 鈥淲hat other training would you do?鈥� If someone said we鈥檙e not going to pay the business school, but we spend 拢150,000 on training our own staff then we鈥檇 say fine, love it.

SR: Do you reinvest all of the fees or do you profit from it as a Mace business?

SP: We reinvest this money in the business in some way shape or form. In better programmes, in better training. If the company gets better, and we win more and we do more projects, then all our supply chain should benefit.

PYCROFT ON 鈥� Mace鈥檚 structure

SR: You have a lot of different businesses within Mace. Is that a model other contractors should follow?

SP: Having internal businesses does cause internal conflict at times, especially if you set up separate P&Ls under businesses. It鈥檚 constantly under review. Especially if you set up businesses within companies that then can charge other parts of the business and try and make a profit. At Mace, [when the] snow鈥檚 falling, the turkey鈥檚 on the table, Christmas is coming, [it means] the structure鈥檚 going to change. And even this year now we鈥檝e gone, 鈥渓et鈥檚 forget all this internal charging, let鈥檚 get back to some basics鈥�. So it鈥檚 always under review. It has its upsides. Our Mace M&E company has done great and dug us out of a few holes. We鈥檇 have done really badly if we hadn鈥檛 had them around us. On other occasions it鈥檚 got too messy and it鈥檚 caused more admin than we need. So we said scrap all the internal charging, it鈥檚 all as one.

SR: Will that remain the case?

SP: That鈥檚 been a nine-month programme with EY, the Simply Better progamme. Because you can never stand still 鈥� an age old saying is don鈥檛 believe your own PR. If you start to believe your own PR, that you鈥檙e one of the best, you鈥檒l start going backwards. We鈥檝e got to start improving. Everyone in contracting in one way, shape or form knows you can always deliver projects better. I said to someone in the pub last night: marks out of 10 for Mace? I鈥檓 a hard marker, by the way. I said Mace are about four out of 10 at the moment 鈥� there鈥檚 lots of room for improvement, lots of ways we could be delivering projects better. Luckily enough a lot of our competition are at the three or four mark as well.

PYCROFT ON 鈥� his best moment

SR: What鈥檚 your proudest moment when you look back?

SP: In 2001 I bought this company off Ian Mac[pherson]. Ian Mac said: 鈥淪tevie, I need a few quid and you take it over.鈥� We sat about and said we want this company to be good.

Ultimately, in 2012 I was at the opening of the Olympics: I had Gerald Ronson, I had Irvine Sellar, I had [John] Ritblat and few others around me. And I thought: 鈥淵ou know what? We鈥檝e done what we said we鈥檇 do. We鈥檝e been instrumental in helping the UK deliver the Olympics with Laing O鈥橰ourke and CH2M Hill, and we鈥檝e delivered the Shard, which was a mega achievement for me personally.鈥� And then we hit the 拢1bn mark. And I鈥檓 thinking: 鈥淏oy from Bradford. 2001. 2012. It can鈥檛 get much better than this.鈥� You鈥檝e got to prick yourself sometimes and look back and say: 鈥淲ow, isn鈥檛 this great?鈥�