THE chief executive of Balfour Beatty's construction services in the UK believes the industry is performing better in Scotland than most English regions.

Mike Peasland, in Glasgow for a topping-out ceremony at the £70 million 185-221 Buchanan Street retail and residential development, told The Herald that outside of London things in many English counties are "pretty desperate".

He said: "If you look across the country London is a bit of a micro-climate fuelled by some of the major industrial projects like Crossrail.

"The regions of England are really desperate and there is not a lot happening in terms of commercial work outside of London.

"The changeover from development agencies to local enterprise partnerships has been a long time coming.

"The grants have stopped while Scotland has been able to keep going.

"The model is different in Scotland and also the tap has not been turned off as you have things like the Forth Crossing.

"We are now pricing the last piece of the M8 between Baillieston and Newhouse and linkages to the M74 and M73.

"All in all, Scotland is doing pretty well."

The Land Securities Buchanan Quarter development is on course to be completed in August next year.

It will have nine new retail stores – including Forever 21, Paperchase, Gap, Fat Face and Skechers – and 49 apartments.

Balfour Beatty has around 150 people on site and has created around 100 jobs plus five apprenticeships in areas such as joinery and concrete mixing.

Mr Peasland said: "At the beginning of next year we will start to bring forward the residential.

"The retail seems to have gone well as Buchanan Street is the prime shopping street in Glasgow.

"I think it makes a difference that the corner site, which has been a bit of an eyesore, is being redeveloped."

However Mr Peasland is not seeing any strong signs the commercial development market is beginning to take off again.

He said: "What Land Securities is doing in Glasgow is the exception rather than the rule.

"Commercial development will struggle for a while yet.

"There is money out there but people cannot see what the market is doing and are loathe to spend it.

"It is a proven fact that investment in infrastructure will fuel and drive the economy.

"The more you can do in infrastructure then the more you will improve the economy. I think the Scottish Government recognises that."

Mr Peasland is hopeful that the Procurement Reform Bill being consulted on in Scotland can improve the process of bidding for large public contracts.

He is hopeful it will result in more money being invested into projects rather than vast sums spent on application costs.

He added: "A lot of money is spent in the upfront procurement process.

"For us it is a too long and too expensive process.

"We should hopefully see the money invested going further rather than spent on upfront procurement."

Balfour Beatty employs around 5500 people in Scotland.

Its construction arm expects to report around £500m in turnover this year which would be a 4% rise on figures posted for 2011.