3rd Oct 2007 16:18
Kier Group PLC03 October 2007 3rd October 2007 KIER ADDS £425 MILLION TO ITS SUPPORT SERVICES FORWARD WORKLOAD Kier has been appointed preferred bidder by Stoke-on-Trent City Council todeliver a £400m joint venture contract to carry out repairs and maintenance onthe city's 20,000 council-owned houses through a newly formed joint venturecompany in which the council will take a 20% share. The contract term is forten years with an option to extend for a further five. Over 540 council employees will transfer to the new joint venture company whichwill become a very significant addition to Kier's existing and successfullong-term partnerships with local authorities including Islington, Sheffield andmore recently Harlow. The joint venture will also involve the continuation of all works on thegovernment's Decent Homes programme for three years, bringing kitchens,bathrooms, doors and central heating up to the standard. Also included in the agreement will be repairs and maintenance to the city'smunicipal buildings which Kier will control using its asset management team. The new arrangements come into effect in the New Year. Kier has also signed a £25 million agreement with Hammersmith & FulhamManagement Services Limited (an arm's length management organisation forHammersmith & Fulham Borough Council) to carry out repairs and maintenance on7,165 council-owned houses for the next five years. Twenty-eight employees havetransferred to Kier as a result of the agreement which commenced on 1 October2007. Kier Group plc chief executive John Dodds said: "We're delighted to have beenselected as preferred bidder by Stoke-on-Trent City Council and to have enteredinto contract with Hammersmith & Fulham Management Services Limited. We arelooking forward to working with both clients to improve services and deliver theaspirations of all involved.' -Ends- Enquiries to: Matthew Moth/Caroline SturdyMadano Partnership 0207 593 4000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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