Innovative Procurement Strategies Deliver Fuel Facility At Heathrow

Dale Potts
Faithful+Gould provided consultancy services to Heathrow Airport Fuel Company, for constructing aviation fuel storage facilities, to meet anticipated future increases in demand.

Worldwide project and cost consultant Faithful+Gould has recently completed a commission to provide consultancy services to Heathrow Airport Fuel Company (HAFCo) for the construction of aviation fuel storage facilities at London Heathrow to meet anticipated future increases in demand. The company acted as procurement adviser and cost consultant for all phases of the scheme.

Constructing: The facilities include six, nine million litre tanks and associated pumps, filters and control equipment and oil pipelines to supply the airport.

Director John Wood explains, "Completion on time was critical to the continued operation of Heathrow and the timescale demanded an innovative procurement strategy to ensure project objectives were met. We adopted a multi-stage tendering process, beginning with the appointment of a management contractor in a project management role. The appointed management contractor worked with the client’s team and designers during the project FEED stage to develop best value solutions."

Subsequent stages involved the negotiation of lump sum prices for the individual work packages. The highly flexible approach gave HAFCo the option to procure particularly sensitive or high risk elements through preferred specialist contractors with their work then being co-ordinated by the management contractor, whilst the management contractor procured and delivered the remainder of the packages.

Work on the scheme was completed in Summer 2005. HAFCo is a joint venture company owned by BP, Esso, Shell, TotalElfFina, Texaco and Kuwait Petroleum. It has an agreement and 30 year lease from Heathrow Airport Limited to build, own and operate the new fuel tank farm and associated facilities.