28th May 2014 07:18
LONDON (Alliance News) - Balfour Beatty PLC said Wednesday it has won a GBP180 million infrastructure works contract for Heathrow Airport Ltd.
Balfour said the three-year contract will see the firm upgrade and maintain Terminals 1, 2 and 4, through the 'Delivery Integrator Framework Lot 1,' the first of four new-style framework contracts to be awarded by Heathrow, each for a different section of the airport, as part of a total investment package of GBP1.5 billion.
Balfour Beatty will be acting as programme manager and contractor at various stages throughout the lifecycle of the framework, it said, delivering individual projects worth between GBP500,000 and GBP70 million, with projects ranging from structural improvements to multiple asset replacements such as escalators and passenger conveyors, passenger and goods lifts, air conditioning systems, retail areas, CCTV, access and security systems.
At the end of 2016 there is an option to extend the framework for a further two years, said Balfour Beatty, which will be worth up to an additional GBP70 million.
The FTSE 250-listed company has a fifteen-year association with Heathrow, having worked on two previous frameworks, and has delivered infrastructure projects including the Terminal 5 facility and a number of improvement projects across the airport. The company is currently delivering the new GBP590 million Terminal 2B facility as part of the Terminal 2 complex, due to open this summer.
The airport's new-style framework for contracts appoint a single contractor for a programme of projects, intended to support Heathrow's capital investment programme.
Shares in Balfour Beatty were trading marginally higher shortly after the open Wednesday, up 0.22% at 232 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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