Balfour Beatty Plc.

During 2005 the Chief Executive, Ian Tyler, was invited to join meetings of the RemCo when appropriate. Paul Raby, the human resources director, has acted as secretary of the RemCo since his appointment on 1 July 2005. Prior to this, Peter Johnson, the director of personnel, was secretary of the RemCo. No Director has any involvement in discussions relating to his own remuneration. The RemCo is responsible for appointing external independent consultants to advise on executive remuneration matters. This advice and assistance has been provided to the RemCo throughout the year by the Monks Partnership ("Monks"), New Bridge Street Consultants LLP ("NBSC"), and the human resources director. The terms of reference of the independent consultants are available on the Company's website and on request from the Company Secretary. Monks also provided data and advice to the Company regarding the remuneration of senior management below Board level during the year. The RemCo is satisfied that no conflict of interest arises from the provision of this advice to the Company.

Robert Walvis joined the Board of Associated British Ports Holdings Ltd in August 2007, as a representative of GIC Special Investments. He is a member of the Audit Committee. He is currently a non-executive director of British Energy Group plc, Johnson Matthey plc, Balfour Beatty plc and Chairman of the Supervisory Board of Allianz Nederland Group NV. Between 1971 and 2001, he held a series of senior management positions within the Royal Dutch Shell Group, including chairman of the Global Corporate Centre, where he was responsible for worldwide strategic planning, external and environmental affairs.