Balfour Beatty, the international infrastructure group, has recently been awarded two support services contracts, totalling around £200M.
These contracts add significant volume to the Support Services order book and are notable in highlighting the changes in local authority requirements, with a marked shift towards larger, multi-activity contracts and bundling together of contracts from more than one local authority.
The Warwickshire and Coventry highways term maintenance contract involves full maintenance of the region’s highways and bridges together with street lighting.
The five-year contract, beginning in May 2011, is worth £100M, with a possible four-year extension conditional to meeting performance targets.
The 25-year Cambridgeshire County Council street lighting PPP project we announced on 6 May 2011 has a significant element of support services. The maintenance contract, worth around £100M, is innovative in the way it places emphasis on energy reduction by using the latest technologies.
Balfour Beatty Support Services chief executive officer Kevin Craven commented: “We are developing our business to serve the Local Authority market more effectively.
“Balfour Beatty is well-placed in respect of the changing nature of local authority contracts which favour companies that can offer a broad range of capabilities, thereby providing savings as well as improved services for local government.”