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Re Contract

7th Dec 2006 07:00

Balfour Beatty PLC07 December 2006 7 December 2006 BALFOUR BEATTY AWARDED FACILITIES MANAGEMENT ============================================= CONTRACT BY METROPOLITAN POLICE AUTHORITY ========================================== WORTH IN EXCESS OF £150 MILLION =============================== Balfour Beatty, the international engineering, construction and services group,announces today that its specialist facilities management arm, Haden BuildingManagement (HBML) has been awarded a contract worth in excess of £150 million bythe Metropolitan Police Authority (MPA) to provide facilities managementservices across the Authority's property portfolio in North London. The contract, which will run for an initial seven-year period, with an option toextend for a further three years, provides a full facilities management servicecovering over 500 properties, including some major landmark buildings such asthe Peel centre in Hendon and other high-profile Metropolitan Police sites. Ian Tyler, Chief Executive of Balfour Beatty, commenting on the award said; "This contract confirms and extends Haden's position as a leading provider of facilities management services in the UK. It also further underscores our growing reputation for service delivery, innovation and continuous improvement. This contract adds to Haden's growing portfolio of long-term sustainable customer relationships. We look forward to a long and successful relationship with the Metropolitan Police and to providing first-class support to their front-line policing needs." Alan Croney, Director of Property Services, the Metropolitan Police Servicesaid; "The signing of this contract represents a significant step towards realisingour vision for facilities management which is to move from a traditionalmanagement intensive approach to a more innovative, information and performanceled culture. The nature and scope of relationship we are establishing with Hadenis critical to supporting operational policing and the delivery of our wider asset management led Estate Strategy." HBML is in a period of strong growth with approaching £650 million of work addedin 2006 to its order book which now stands at well in excess of £1 billion. InSeptember HBML was awarded a £320 million seven-year contract to become thesingle service provider of a range of facilities management services to theDepartment of Work and Pensions. Earlier in the year, its contract with BT,Monteray, was extended by a further three years. It is also a 49% partner inRomec, which provides support services to the Royal Mail's nationwide estate. The contract for the Metropolitan Police supports that organisation's EstateStrategy and it will significantly improve the prioritisation of facilitiesmanagement services to meet changing police priorities and new asset plans. Thecontract involves the delivery of building engineering and fabric maintenanceservices; waste management; security; ground maintenance, cleaning, laundry andpest control; and the provision of reception, porter and warden services. Haden Building Management recently appointed Kevin Craven as its new ManagingDirector. Previously Managing Director of the Specialist Markets Division ofAramark, he has the ideal profile and experience to lead the business forwardinto its new phase of development. ENDS Enquiries to:-------------Tim SharpTel: 020 7216 6884www.balfourbeatty.com Notes to Editors:----------------- 1. Haden Building Management is a leading asset and facilities management business with current annual revenues in excess of £250 million and forecast revenues for next year in excess of £300 million Its customers under long-term framework contracts include the Royal Mail, BT and a number of the Balfour Beatty Group's PPP hospitals and schools schemes. Other customers include the BBC, BAA, Tesco, Sainsbury's and Land Securities and new business for this year, includes contracts for the new Emirates Stadium in North London, Intel and St. David's Hospital in South Wales. 2. Balfour Beatty is a world class engineering, construction and services group which works in partnership with sophisticated customers who require the highest levels of quality, safety and technical expertise and for whom infrastructure, efficiency and reliability are critical. 3. The contract is one of two awarded by the MPA for its entire estate and forms a new Facilities Management Model for the MPA that is focussed on fact based management and real time performance information. Two seven year contracts valued at over £300 million have been awarded on a geographic basis with Interserve being awarded a contract for the southern half of Metropolitan Police Estate; and Haden Building Management Ltd being awarded a contract for the northern half of the Metropolitan Police Estate. 4. Overall responsibility for the Metropolitan Police estate is vested in the MPA, the statutory organisation responsible for ensuring an efficient and effective police service for London. 5. Day-to-day management of the police estate is delegated by the MPA to the Metropolitan Police Service's Property Services Department. The estate comprises over 600 operational buildings, used by 44,000 police officers and staff, and is valued at in excess of £1.7 billion. This information is provided by RNS The company news service from the London Stock Exchange

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