He will take over as managing director of the division in October, succeeding George Franks who is retiring in May 2020 after a 35-year career at Interserve.
Gandy brings 37 years expertise and experience in the industry having also held leadership roles with several main contractors.
Before Kier he was managing director of Balfour Beatty in the London area for 18 months, he spent six years at Lendlease, laterly as managing director of its English and Welsh activities. Before that he held senior roles at Carillion and Multiplex.
Gandy said: “I am very pleased to be joining Interserve at this time.
“I look forward to working with the Construction team, Debbie White and Nick Pollard, in his role overseeing construction on the Interserve Group board, as we continue to deliver the transformation of the construction division, and support its future development, efficiency and growth.”
Debbie White, Interserve chief executive, said: “Paul’s experience in the UK construction sector will be invaluable as we continue to position the construction division for long-term, sustainable success through our refocused strategy, which targets the core areas where we have a market-leading customer proposition.”