Up to 400 workers will be made redundant at Heathrow Terminal 5 after Christmas

Airport operator BAA disclosed last week that T5 was exceeding its original M&E budget by about 拢56,000 an hour and has launched a productivity drive. Between 300 and 400 workers are expected to be axed over the next six weeks as a result.

A BAA spokesperson said the number of workers was being scaled down ahead of its anticipated completion in September. Staff would be redeployed 鈥渨herever possible鈥�.

Meanwhile, it emerged this week that BAA is investigating invoices submitted by Sepam, an electrical subcontractor. It is understood there are discrepancies over the calculation of the hours the contractor has worked.

A BAA spokesperson said: 鈥淲e undertake regular audit activities with our suppliers to ensure they are operating in line with the T5 agreement. Audits are carried out in a mutually co-operative way.鈥�

A Sepam spokesman said: 鈥淲e are totally supportive of BAA and its auditing procedures.鈥�

An inquiry into BAA by the Competition Commission, the investigatory arm of the Office of Fair Trading, could lead to the break-up of the airports group. The OFT has asked the commission to examine the airport services group after its own study brought to light some causes for concern. Any break-up would be a blow for Ferrovial, BAA鈥檚 Spanish owner, which bought the group for about 10bn this year.

  • The Public Sector Construction Clients Forum fair payment task group has reported its findings to the government body. The group has recommended that a fair payment Charter and project bank accounts form part of government procurement policy.

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