Balfour Beatty handed £4bn public civil engineering contract

Balfour Beatty has been chosen again as the sole contractor for two UK civil engineering contracts worth a total £4billion. 

The infrastructure firm will work with UK local authorities and government agencies to build local highways and deliver other projects across multiple sectors, including marine and defence.

The HS2 and Hinkley Point C contractor said the deals cover the next four years, with the first expected to be awarded from early 2021. 

One of the contracts covers England, Wales and Northern Ireland and is worth £3.25billion, the other is for the whole of Scotland and is worth £750million.

‘Both frameworks – which enable local authorities and other public sector bodies to commission works through a procurement process that provides a quick route to market – cover a period of four years, with an option for a two year extension,’ the company said. 

‘Utilising early contractor engagement, Balfour Beatty will ensure that the best value design solutions are in place, driving efficiencies and helping to transform local communities and support both regional and national economic growth.’

Public sector procurement authority Scape had appointed the FTSE 250-listed firm to deliver civil engineering projects worth over £3billion already in 2015. 

Balfour Beatty said that since then it has ‘delivered or is delivering’ over 285 projects for 96 public sector customers across the UK.

Mark Robinson, chief executive at Scape, said: ‘The strength of our partnership with Balfour Beatty has accelerated the delivery of much needed civil engineering infrastructure via our direct award framework and I have no doubt that this will continue to be achieved through the civil engineering framework over the next four years.’

Balfour Beatty chief executive, Leo Quinn, said: ‘With a long-standing history of successful delivery through the SCAPE Group frameworks, we now look forward to continuing on this positive trajectory; working with our customers to drive forward innovative, sustainable projects across the length and breadth of the UK.’

Balfour Beatty shares rose 1 per cent to 325p in morning trading on Tuesday. They are around 18 per cent higher than a year ago. 

Last month, the group posted a bumper rise in first-half profit and hiked its interim dividend.