His appointment follows Paul Drechsler’s decision to step down after nearly 10 years running the construction business.

Davies is currently managing director of the maritime division which turns over more than £2bn and employs 14,000 staff.

Wates Chairman, James Wates said:  “Andrew joins our company at a very exciting time as the construction industry begins to see some positive signs of recovery from this prolonged recession.

“The company is performing well and we are on track to deliver our projected turnover and objectives for 2013. We will also finish the year with a significantly improved order book providing strong prospects for growth in 2014.

“Paul Drechsler leaves Wates in excellent shape having built our business into a £1bn group.”

Davies has also held roles as group strategy director and was managing director of Land Systems at BAe.

Davies’ earlier career within BAE gained him significant PFI and financing experience commercially, strategically and operationally.