Carillion joint venture in double contract win

12th May 2014 08:24

A joint venture (JV) 67 per cent-owned by integrated support services company Carillion has been selected for two contracts with the Defence Infrastructure Organisation (DIO) worth up to 1.7bn pounds. The contracts are part of the DIO's Next Generation Estate Contracts programme to maintain and upgrade Defence infrastructure.The first award is the National Prime Housing contract, estimated by Ministry of Defence to be worth in the order of £625m over the initial five-year contract period and which can be extended by a further five years subject to approval. The JV, in which it partners with Avey, will provide a wide range of hard facilities management services, including routine maintenance, occupancy management, furniture installation, energy efficiency services, statutory inspections and improvements for more than 49,000 military homes throughout the UK. The enlarged contract replaces the contract currently held by a Carillion and Amey Joint Venture under which it delivers similar services for military houses in England and Wales. The JV, in which Carillion has a 67% stake, was also awarded the Scotland and Northern Ireland Regional Prime contract, under which it will deliver a range of hard facilities and asset management services across 30 key sites. "DIO set industry the challenge of providing added value to the military estate and the offers we submitted have been recognised as generating demonstrable benefits in this regard, including the use of market leading customer feedback systems," Carillion's Chief Executive, Richard Howson, said. The company added that of the £1.5bn of new and probable orders announced last week, around £0.5bn related to these two contracts. NR