Carillion announce deals worth £384m

Carillion has announced a further two contract wins worth £384m, two days after announcing another lucrative win

Carillion
Carillion

Support services business Carillion has won two lucrative contracts totalling £384m.

The firm, which employs some 1,500 people in the region, is working with the Highways Agency for the £184m smart motorway contract.

It has also signed a £200m support services contract with Nottingham University Hospitals NHS Trust

The deals come just two days after the global company announced it had won a contract worth around £70m in Saudi Arabia, working with the Aldara Medical Corporation to deliver Phase II of the Aldara Hospital and Medical Centre in Riyadh.

The Highways Agency scheme sees Carillion, which took over Newcastle’s Warm Front business Eaga in 2011, become one of four contractors, together with Balfour Beatty, Costain and a BAM Nuttall/Morgan Sindall joint venture, who will transform 17 miles of the M60 and M62 into a ‘smart motorway’.

The scheme will use a range of innovative technologies to control traffic flow actively, including variable mandatory speed limits and opening up the hard shoulder to traffic to reduce congestion and improve journey times and safety.

Work on the scheme is scheduled to begin in July and be completed by Autumn 2017.

Back in March Carillion announced it had been selected as the preferred bidder by Nottingham University Hospitals NHS Trust, to carry out work at three sites.

That contract has now been signed and work begins on July 1, at Queen’s Medical Centre, Nottingham City Hospital and Ropewalk House.

The firm will provide facilities management and “estate transformation services”.

The contract is expected to be worth circa £200 million over an initial five-year contract period, which is extendable by a further three years subject to satisfactory performance.

Carillion chief executive, Richard Howson, said: “As a leading supplier to the Highways Agency we are delighted to have been selected for this latest Smart Motorway scheme.

“We look forward to working with the Highways Agency and our delivery partners to increase capacity and improve journey times and safety on the M60 and M62.

“I am also very pleased that we have moved successfully from preferred bidder to contract signature with Nottingham University Hospitals NHS Trust. We look forward to working in partnership with the Trust to support it in delivering continuous improvement in the quality of its services for the benefit of patients, visitors, carers and staff.

“These contracts continue our strong work winning performance in 2014 and as the largest trainer of apprentices in our industry, with long-term commitments to employing local people and to using local suppliers, they will provide further opportunities to create lasting benefits for the communities in which we work.”

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