This week chief executive Andrew Wyllie merged Costain’s environment and community divisions to target water and waste contracts.

The firm also revealed that consulting work had become its fastest growing area of business, while care and maintenance work now accounts for 13% of the order book.

Wyllie said the decision to reshape Costain was a response to clients increasingly imposing strict criteria on the selection of contractors.

He said: “Customers are looking for contractors capable of providing the full ‘life-cycle’ of services.

“This process is in turn creating significant barriers to entry. It is essential that Costain has the scale and ability to deploy the resources required by such customers,” he added.

The shake-up sees former chief operating officer Alan Kay take over the enlarged environment division as managing director.

David Jenkins, previously managing director of environment, is retiring early due to ill health.

Alex Vaughan, former community boss, now becomes corporate development director. He will shape the business under the new ‘Choosing Costain’ strategy.

Vaughan’s main task is look at acquisitions and disposals of resources to deliver the Costain strategy.

The firm will target the three key markets it sees as ‘life support systems’ of the UK, making them resilient to economic downturn.

These are infrastructure, particularly highways, rail and airports; environment mainly water and waste; and the energy and process sector.