Thomson measures up - without need of theodolite

PROFILE

EVER used a theodolite? David Thomson has never found the need to measure his vertical or horizontal angles, yet it was a theodolite that convinced Scotland’s managing partner of the construction and property consultancy, RLF, to get into property in the first place.

“When I was due to leave school I was looking at a prospectus for the Glasgow College of Building and Printing,” he said. “The cover had a photo of a guy using a theodolite out in the open air. I fancied the idea of working outside and of using a complicated instrument like that. I passed my exams, but I’ve never actually picked up a theodolite in my whole career”.

Having joined RLF three years ago from EC Harris, where he was head of project management for Scotland and the North of England, Thomson is optimistic that he has the measure of the current construction and development market.

“Everyone, everywhere, is waiting to see if land prices will fall and if developers will carry on with their schemes. I think builders and consultants will do OK so long as they don’t have too many eggs in one basket. If you have a spread of work then you should be fine.”

However, he feels that the public sector could do more to smooth the way for construction projects already in the pipeline: “Councils could help by speeding up their planning and their building control procedures – I’m not asking them to turn a blind eye to shoddy work, but to become more flexible and to understand the impact that delays have on developers.”

He is particularly concerned about the residential sector. Commenting on a recent CompropScotland story regarding residential boffins calling for ‘build-to-let’ – an injection of institutional money into residential by, for example, buying whole blocks of empty new-build apartments and letting them out, he said: “It might be do-able, but is the margin there? Is the yield OK? It could work, but I suspect only in certain areas – and it would require a careful look at land values.”

David Thomson is optimistic that the current level of public sector project, backed by ongoing commercial schemes, will keep demand for construction fairly steady. “I don’t think we’ll see many redundancies in construction, except in resi – although most housebuilding people who find themselves laid off will find work in other sectors. I suppose the question for housebuilders is whether those people will be keen to go back into the resi sector once it picks up again?”

The spiralling cost of

David Thomson - builders and consultants 'without too many eggs in one basket will be okay'

construction has had one beneficial effect – many more builders are now eager to quote for jobs. “Until recently, many of the builders were too busy to price for jobs. But with their order books getting shorter, there’s much more willingness now to put in bids – and to sharpen their pencils. Most builders are now looking at order books extending just six to ten months ahead, yet it wasn’t so long ago that 12 to 18 months was the norm.”

Much of the current construction work is coming from public sector infrastructure projects, but to ensure that new tranches come forward Thomson urges the Scottish Government to get its Scottish Futures Trust (SFT) up and running.

“The credit crunch and the uncertainties in the property market make it all the more important that we get the SFT up to speed. There’s been a delay of a year now since the SNP took power; there’s an urgent need to see a replacement for PFI/PPP as soon as possible – we still need new schools and modern health service facilities.”

While many public sector projects are currently being produced via ‘frameworks’ – long term agreements between client and builder that can produce financial and quality benefits – Thomson is uneasy that their growing popularity could shut out smaller builders and consultants.

“They’re becoming very popular with councils and NHS organisations, but I’m concerned that frameworks will soak up the big boys – while

smaller operators might not be able to get on board because they don’t have the scale or track record of the big companies.

There’s a scramble right now for construction firms and consultants to get on board with major frameworks – it’s hugely important for Scotland that Scottish firms get a share of the action.”

His enthusiasm for construction and property led to RLF launching a project last year for students at Glasgow’s Mackintosh School of Architecture.

Part of RLF’s 100th anniversary celebrations, the project looked at Glasgow in 1907 when RLF was set up, examined the current lay-out and development of the city – and came up with designs for what Glasgow could look like in 50 years time.

“I enjoyed the project because it’s important that you encourage new talent to find new ways of improving our cities. One of the things I love about property is the characters you meet. I like the idea that you can be dealing with the CEO of a blue chip company in the morning, then listening to a brickie’s banter in the afternoon.”

Apart from his family and keeping himself fit via football and golf, Thomson gets a lot of satisfaction out of his role in the development cycle. “It’s great to see derelict sites regenerated and to know that you played a part in it”, he says.

Theodolite optional.

STEWART McINTOSH

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