British multinational infrastructure group Balfour Beatty plc announced on Monday that it had won a new UK-wide infrastructure and civil engineering public works contract. The deal is worth up to £1.5 billion and will run until February 2019.
This is wonderful news for the London-based company, which had a turbulent 2014. The year was fraught with profit warnings, the departure of its previous CEO, its chairman’s resignation, and a public battle with rival Carillion where a potential merger imploded.
The company said that individual projects are expected to be valued at about £40 million each.
The national framework will be operated by Scape Group – a public sector-owned built environment specialist. Balfour will provide support for a wide range of infrastructure and engineering projects, including coastal defence works, new bridges, road repairs, major road projects and light rail schemes.
Leo Quinn was appointed as Balfour Beatty’s new CEO in October 15, 2014. He took up his new position on January 1, 2015. (Image: Balfour Beatty)
Balfour Beatty’s Group Chief Executive, Leo Quinn, said:
“Balfour Beatty has significant depth of expertise across the UK in delivering civil engineering projects successfully and through this appointment we will be able to improve delivery for our customers and expand our portfolio of local infrastructure schemes.”
“I am also delighted that we share Scape’s commitment to employ and develop trainees and apprentices in acquiring the skills necessary to build lifelong careers, and to support the local businesses that the infrastructure sector relies on.”
“This is the first framework able to support such a diverse range of projects and is available to all public sector bodies across the UK, be it a local authority or parish council.”
“The existing Scape frameworks have already saved the public sector more than £200m and 70 years’ worth of procurement time. This latest addition will help us to build on this achievement and comes at a time when the government is pioneering its ‘roads revolution’ – infrastructure is the government’s top priority and it is also ours.”
Balfour Beatty, which employs more than 36,000 workers and was founded in 1909, is the UK’s largest construction contractor.