Press

The country of Count Dracula, branded with the stigma of its time as a Soviet satellite state, Romania – which became part of the European Union on 1 January 2007 – is currently undergoing a building boom, with construction activity up 19.6% in 2006 compared with 2005¹. The many projects carried out in Bucharest by Bouygues Romania, a key player in the country’s building sector, are ample proof of this. Romania is now entering a business cycle that is expected to be stable for the medium to long term, a buoyant market where there is strong demand for infrastructure projects. Here we take an in depth look at this subsidiary of Bouygues Bâtiment International. “Bouygues Construction decided to run a business in Romania as early as 1991, at the time when the chances of success were less obvious than now,” recalls Victor Stefanescu, who has headed up Bouygues Romania since 2005. “And we decided to stay, despite fluctuating business. As a result, we now benefit from in-country experience and genuine credibility on the marketplace,” he adds, pointing out that the subsidiary was once again winning business as of the end of 2005.

To start with, projects were one-off jobs. In 1994, the company handed over its first project, the World Trade Center, a 60,000-sq.-metre complex comprising a four-star Sofitel hotel, a shopping centre, three restaurants and 12,000 sq. metres of office space. All done in 24 months, for €140 million. This operation was swiftly followed by the “Village Français” (35 apartments, 34 villas), then, the following year, by 37,000 sq. metres of office space in the city centre. From 1998 to 2003, though, business had its ups and downs while the market wavered. Between 2003 and 2006, the workforce was expanded and for 36 months was engaged on the consolidation and major structural renovation of the Bucharest Law Courts (€34 million), followed by construction for the Accor Group of the four-star Novotel “National Theatre” hotel that replicates the theatre building previously occupying the site. This project marked an important step in the development of Bouygues Romania, for it set down lasting roots.

In the north of the capital, below the slender outlines of seven tower cranes, near a Carrefour hypermarket, a Bricostore DIY centre, and an Ikea megastore, 600 site workers have since July 2006 been engaged on the construction of the building fabric of a 100,000-sq.-metre shopping centre. “We’re in charge of this €30 million component of the largest project initiated in Romania in 2006, Baneasa Shopping City,” boasts works engineer Martin Desveaux. The project lies in an earthquake zone, which calls for reinforcement-to-concrete ratios 20 to 30% higher than for similar projects in other areas. “The architectural concept, the work of Chapman & Taylor, is audacious, with a forum area comprising large 12-metre-tall inclined columns, a glazed façade, and large building volumes suspended from stainless-steel sections and cables,” explains Jacques Lambrecht, building fabric manager.
“The engineering was done by local consultants and coordinated by our specialists,” says Robert Popielarski, operations director. One of the key issues for the success of the project was setting up a highly effective team. Twelve experienced supervisors from Bouygues Bâtiment International give 20 young Romanian engineers and technicians support and training on a daily basis. Local labour is often poorly qualified, and requires special care. “We had a difficult autumn because of high staff turnover. We have to foster staff loyalty and quality and constantly keep an eye on the quality of the work performed and construction lead times,” he adds. The objectives are the same at the “At The Oaks” project nearby.

Deep in an oak forest, “At The Oaks”, a luxurious residential programme, will comprise 600 apartments and a sports and leisure complex. Up to 500 site workers and around 20 supervisors and technicians will be working on the project at peak periods in order to complete the first phase (280 apartments) in 19 months. They are working under operations director Jean-François Conci.
Head supervisor Bruno Montbroussous explains: “This project has been keeping us busy since September 2006. Together with the technical and commercial people and alongside the consulting engineers, we helped define the project.” This involved confirming the contract, a negotiated agreement with a guaranteed maximum price, with one of Romania’s most powerful businessmen, former tennis champion Ion Tiriac.
For Abderrazak Majri, head supervisor for the project, one of the difficulties of this first phase will involve organising site logistics within a very cramped space with a single access point. We have to introduce our methods and work procedures gradually, and integrate them into local working customs. Applying work methods that guarantee safety and ensuring they are complied with right from the site-preparation phase is a priority concern for supervisors and foremen. Bouygues Romania, which has been ISO 9001-certified since 2005, is participating actively in the OHSAS 18001 certification of Bouygues Bâtiment International, scheduled for this year. “The environmental dimension of the project, located as it is in the midst of greenery, is a real issue of sustainable development for us,” specifies Victor Stefanescu.

In 2006, Bouygues Romania worked on its first logistics warehouse project (35,000 sq. metres), for Cefin. The first phase, Cefin 4 (€13 million) was ready for handover in just nine months. Lionel François, the project manager, recounts: “Work on the foundations began in July. The precast concrete structure was erected in two months, and was followed by the steel secondary structure. In October the building was closed in and mechanical and electrical installation started. The interior floor slabs were laid from October to December, followed by external slabs.” After finishing work, final handover was in March 2007. “The job had been well prepared and we benefited from a mild winter.”
The second phase, Cefin 12 (€9 million), started in December 2006. Production manager Mircea Stefanescu has the details: “We’ve finished the earthmoving and dug the foundations.” At a rate of 10 columns and four beams per day, the 25,000-sq.-metre warehouse will be finished in September 2007. “Our key advantage,” concludes project director Christian Magnier, “is the reliability of our organisational setup: we provide the means for the workforce to sustain a pace of work that will meet the deadline.” Eventually 15 buildings covering an area of 250,000 sq. metres are to be built in this area near Bucharest, along the motorway to Pitesti – probably one of the largest logistics centres under construction in Eastern Europe. What is common to all these projects is the difficulty in finding committed site supervisors and qualified workers. Particularly with the “brain drain” to the West and high wage pressures on a booming market.

Recruiting qualified workers
“It’s hard to recruit qualified site workers permanently, to the point that we’re studying the possibilities of bringing in foreign labour,” admits Stéphane Meuret, human resources manager. In this situation, training young recruits is crucial. A policy of establishing close relations with schools has been implemented, notably through a partnership with the UTCB (technical college for building), while other initiatives include recruitment workshops and conferences, participation in conventions for Romanian executives in Romania and France, internships, etc. The objective is to create an authentically Romanian company with positions of responsibility for locals within an international team. The workforce already comprises several nationalities: Belgians, French, Portuguese, Algerians, Moldavians, Poles, Britons, and many more are already working alongside their Romanian colleagues. In addition, “We are seeing people come back to Romania,” observes Victor Stefanescu, for schooling there is good. Moreover, the Romanian economy is doing well and working conditions are improving.

Finding high-quality partners
Everyone at all levels in the building industry – architects, engineering firms and subcontractors – is up to their necks in work. “Ensuring the availability of engineering consultants is a key priority. Having a reliable partner we can come back to is a key to our success,” stresses Victor Stefanescu. “To move faster and consolidate our business while enhancing competitiveness, we are analysing the market and will consider the possibility of external growth if the opportunity arises.”

Development prospects in Bucharest and beyond
There are other opportunities – commercial ones – that the three people in charge of property development will be able to investigate with the support of the group: office building and hotel projects are expected to multiply in Bucharest which is still short of 6,000 mid-level to top-end hotel rooms. “We’ll continue to work in the residential sector but will keep a close eye on the commercial sector,” says Éric Royer, business development manager.
For the moment, Bouygues Romania is working only in Bucharest, a very buoyant market representing 10% of the country’s population. The capital has international investors and high purchasing power. Between now and 2010, a total of 1.2 million sq. metres of office space is going to be built in Bucharest, plus logistics and industrial facilities. “We will also have to move beyond the capital: the country has eight cities with populations of around 300,000 requiring development in the residential and non-residential sectors,” says Victor Stefanescu. More sound partners will have to be found... along with a solid workforce to pursue sustainable growth.