FIRST INDUSTRY-BACKED CONSTRUCTION TRADING HUB OFFERS ONLINE PROJECT COLLABORATION SOFTWARE

25 October 2000

Mercadium, the pan European online construction hub, has adopted the Project Information Channel, a state of the art online project communication and data management technology, from application service provider Building Information Warehouse.

The first industry-sponsored trading hub for the construction sector, Mercadium was formed in April 2000. Its backers, representing both the buy and sell sides of the industry, include Aggregate Industries, Alfred McAlpine, BPB, Gesys, Glauser International, Hammer Architects & Engineers, Pilkington and RMC, with a combined turnover of over Euro 22bn.

Mercadium will offer a hosted suite of software and information services designed to assist construction industry participants to reduce the costs involved with: procurement of materials and sub-contracted works and management of construction projects.

theBIW.com's Project Information Channel, which is already being used in dozens of construction projects in the UK (most notably by large retailers, including Sainsbury), has a proven track record, and a growing user base. Furthermore, Mercadium sees theBIW .com as a technology partner capable of delivering additional industry specific applications, such as its procurement management toolset.

"We always planned that Mercadium users would have access to procurement management and project collaboration tools designed to streamline and facilitate communication within, as well as, between companies," said Mercadium co-founder Emma Welsh. "We investigated several systems, but were convinced by theBIW.com's track record, and by its management's experience in delivering industry-strength IT solutions to the construction industry"

Colin Smith, managing director of theBIW.com, said: "We selected Mercadium as the online trading hub through which we would distribute our Project Information Channel because they are the only player with significant industry backing, combined with a strong independent management team." He added: "With the Project Information Channel, Mercadium now has a strong platform upon which to deliver its online project management capabilities. We will be working with Mercadium to add further functionality to the products, and to widen our access to the construction marketplace in the UK, France and elsewhere in Europe."

The Project Information Channel is a communications platform designed to manage information from the earliest conceptual design stages of a construction project right through to operation and maintenance - and even demolition - of the finished facility. Based around a knowledge database, secure, project-specific websites are created, through which every authorised project team member can access all project data. As a web-based application, there is no requirement to use any particular hardware or software, only a standard internet browser. From within the Channel, users will be soon be able to access Mercadium's information and procurement tools and conduct online transactions in its marketplace.

Mercadium believes its neutral market will enable the industry to manage better the procurement of building materials and sub-contracted works by marketing and managing contracts on-line. In addition, manufacturers, distributors and end-users will benefit from improved price and product information, increased management control, more efficient back-office processes and extended customer reach.

Notes:

Mercadium

• Mercadium, the internet-based construction hub, offers software solutions to improve the building materials supply chain and facilitate project management. Rather than investing in and maintaining expensive proprietary software, construction industry participants will be able to tap into state-of-the-art technology. Services in development include a trading platform that will enable participants to conduct transactions online, and procurement management and project collaboration tools. The site will also contain content in the form of company directories, product catalogues, building regulations, industry news and tender information.
• Mercadium is unique in offering both independent management and strong backing from buyers and sellers in the European construction sector. Investors include Aggregate Industries, Alfred McAlpine, BPB, Hammer Architects, Pilkington and RMC. Non-equity partners are Gesys and Glauser International. Mercadium is also collaborating with specialist software providers, builders' merchants, homebuilders and general contractors in the UK and on the continent. These new partnerships will be announced in due course. The Stationery Office, official publisher of statutory, parliamentary and government information in the UK, is working with Mercadium in an exclusive partnership to develop content for the site.
• Mercadium will be launching a series of pilot projects by the end of the year, with the aim of making its products and services accessible to the public by the beginning of next year. The first phase offering will include amongst others:
• Regulatory information applicable to the UK construction sector, e.g. Building Regulations, Planning Guidance, Legislation and Health & Safety information relating to the construction sector.
  Directories of architects, builders' merchants, contractors, product manufacturers etc.
  A Request for Quotation tool, which gives buyers of building materials the ability easily and quickly to request bids from several suppliers.
  Other services and products will be announced later in the year.
• Mercadium was founded in April 2000 and has operations in the UK, France and Germany. The UK accounts for 12% of £545 billion [€885 billion] in European construction output . The building materials sector targeted by Mercadium is about 20% of this, or £109 billion [€177 billion] for Europe.
• The construction hub will be open to all industry participants. For more information or to register your interest to participate in pilot programmes contact: Emma Welsh, Sales & Marketing Director, Tel: 020 7766 1800, Email: emma.welsh@mercadium.com
• http://www.mercadium.com

The Building Information Warehouse Ltd.

• The Building Information Warehouse (www.theBIW.com) provides information technology services and solutions to the AEC (architectural, engineering and construction) community. Ever since the 1994 Latham report recommended improved coordination of project information, theBIW.com has been moving towards that objective. An application service provider, it is working with clients, contractors, consultants, academics and industry organisations to develop tools (eg: the Project Information Channel, already used on 43 Sainsbury projects) that capture all the technical information associated with a building project. The client can then use the Channel to operate and maintain its facility more efficiently, and - for repeat clients - to promote continuous improvement in later schemes.
• http://www.thebiw.com