Balfour Beatty handed out £4bn public contracts to build roads and civil engineering projects across the UK
- He said the first contracts are expected to be awarded early next year.
- The contract for England, Wales and Northern Ireland is worth £3.25bn
- Contract for all of Scotland worth £750m
Balfour Beatty has again been chosen as sole contractor for two UK civil engineering contracts worth a total of £4bn.
The infrastructure company will work with local authorities and UK government agencies to build local roads and deliver other projects across multiple sectors, including maritime and defence.
The HS2 and Hinkley Point C contractor said the deals cover the next four years, with the first expected to be awarded in early 2021.
Balfour Beatty already won civil engineering public contracts from Scape in 2015
One of the contracts covers England, Wales and Northern Ireland and is worth £3.25bn, the other is for all of Scotland and is worth £750m.
“Both frameworks – which allow local authorities and other public sector bodies to commission works through a procurement process that provides a fast route to market – cover a four-year period, with an option for a two-year extension.” the company said.
“Using early engagement from contractors, Balfour Beatty will ensure the best value design solutions are implemented, driving efficiencies and helping transform local communities and support regional and national economic growth.”
Public sector procurement authority Scape had appointed the FTSE 250-listed company to deliver civil engineering projects worth more than £3bn as early as 2015.
Balfour Beatty said that since then it has “delivered or is delivering” more than 285 projects for 96 public sector clients across the UK.
Mark Robinson, CEO of Scape, said: “The strength of our partnership with Balfour Beatty has accelerated the delivery of much-needed civil engineering infrastructure through our direct award framework and I have no doubt this will be will continue to achieve through civil engineering. for the next four years.’
Balfour Beatty chief executive Leo Quinn said: ‘With a long history of successful delivery across SCAPE Group frames, we now look forward to continuing on this positive trajectory; working with our clients to drive innovative and sustainable projects across the UK.”
Shares of Balfour Beatty rose 1 percent to 325 pence in morning trading on Tuesday. They are about 18 percent higher than a year ago.
Last month, the group posted a big jump in first-half profit and raised its interim dividend.
