The focus of his new position will be on working more closely with services suppliers to reduce common costs.

“In the past,” he said, “we’ve had a traditional procurement pattern, with buyers on sites choosing suppliers.

“Also, tenders have gone out and prices been negotiated, but we have had little visibility of the suppliers’ costs.”

Wates spends £600 million a year on subcontract work including mechanical and electrical services, and another £60 million a year on maintenance, repair and operations, including office equipment and safety goods.

“At this stage, we are not sure if savings can be 10 per cent or 5 per cent, and are evaluating where we can unlock the potential.”

He said Wates will increase the use of regional subcontractors in a bid to win more work from councils keen to support their local economies.

Parkinson was previously procurement manager for public-sector work at Wates with a budget of £300 million. Before joining the company, he spent three years as a category

manager for structures at construction services firm Carillion, where he controlled a budget of £200 million.

Wates has an annual turnover of £700-800 million and its projects include refurbishments for housing that is owned by social landlords and for schools. It was also involved in the refurbishment of London’s St Paul’s Cathedral.