Carillion signs contracts worth £384m

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CONSTRUCTION and support service giant Carillion has been selected as a partner by the Highways Agency for an £184m smart motorway contract and has also signed a £200m contract with Nottingham University Hospitals NHS Trust. 

It is one of four contractorss to have been selected by the Highways Agency – alongside Balfour Beatty, Costain and a BAM Nuttall/Morgan Sindall joint venture.

They will transform 17 miles of the M60 and M62 into a ‘smart motorway’. The scheme will use a range of innovative technologies, combined with new operating procedures, to actively control traffic flow. This includes variable mandatory speed limits and opening up the hard shoulder to traffic to reduce congestion and improve journey times and safety. 

Wolverhampton-based Carillion is one of the Highways Agency’s four delivery partners on its National Major Projects Framework and this latest award follows the successful delivery by Carillion of four previous phases of the smart motorway programme on the M6 in the West Midlands. 

This latest scheme will be managed through a collaboration agreement under which the delivery partners will be able to share knowledge and best practice.  Work on the scheme is scheduled to begin in July and be completed by Autumn 2017.

Under the Nottingham University Hospitals NHS Trust contract, Carillion will provide facilities management and estate transformation services to the Trust’s three main sites, namely Queen’s Medical Centre, Nottingham City Hospital and Ropewalk House. 

The contract is expected to be worth circa £200m 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.”