This paper describes a successful example of a large programme of industry-university research collaboration in the field of construction engineering and management. It describes how BAA plc, one of the UK's largest construction clients, is working closely with a leading university department undertaking construction engineering and management research. The initial objectives and the anticipated benefits of collaboration for both parties are discussed. The paper outlines, in the form of a case study, how the initial research collaboration links were formed and how they have developed into a major research, technological transfer, education and training programme. It discusses the way in which the research and technological transfer programme in particular was developed, is regularly updated, funded and managed. In addition, the paper describes the current research programme and the tangible benefits for both parties. By way of example, the paper outlines 1 research project in ‘knowledge-based engineering’ where a generic modelling system is being used to design buildings in the manner that has become known in advanced manufacturing as concurrent engineering. Finally, other areas of current and planned collaboration, in particular in the areas of education and training, are discussed.