Balfour Beatty, the international infrastructure group, has been appointed to deliver up to £180 million of infrastructure works for Heathrow Airport Limited.
Over the next three years the company will work together with Heathrow to maintain and upgrade Terminals 1, 2 and 4, through the ‘Delivery Integrator Framework Lot 1’. This is 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 £1.5 billion.
These new frameworks, which appoint a single contractor to deliver a programme of projects, are intended to enable Heathrow to realise year-on-year savings on its capital investment programme.
Balfour Beatty will be acting as programme manager and contractor at various stages throughout the lifecycle of the framework, delivering individual projects worth between £500,000 and £70 million. Projects will range 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, which will be worth up to an additional £70 million.
Balfour Beatty will bring its substantial range of in-house expertise to deliver the framework including design, engineering, construction, mechanical and electrical capabilities, and Building Information Modelling (BIM) which will allow full 4D design specification for Heathrow.
Balfour Beatty has a fifteen-year association with Heathrow having worked on two previous frameworks, and has delivered significant infrastructure projects from the award-winning Terminal 5 facility to multiple asset improvement projects across the airport. The company is currently delivering the new £590 million Terminal 2B facility as part of the Terminal 2 complex, due to open this summer.
Steve Marshall, Balfour Beatty Executive Chairman, said: “I am delighted Balfour Beatty has been appointed to Heathrow’s new style of framework contracts. We have worked in partnership with Heathrow for fifteen years and we will continue to bring our leading capabilities in areas such as Building Information Modelling and safety to our work at Terminals 1, 2 and 4; and play our part in helping Heathrow maintain its position as a leading travel hub.”
Find out more about the Construction Services UK Division
Analyst/investor enquiries:
Anoop Kang
Balfour Beatty plc
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Balfour Beatty plc
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patrick.kerr@balfourbeatty.com
Notes to editors:
1. Terminal T2B is the largest ‘airside’ construction project ever carried out at Heathrow measuring half a kilometre in length. The £590 million project has included the construction of the largest diaphragm wall (vertical non-porous underground wall) in Europe as well as the use of over 165,000 m3 of reinforced concrete. It provides 16 new aircraft stands, retail space, extensive basement space for future baggage handling systems and future track transit systems.
2. Balfour Beatty is one of the UK’s leading infrastructure framework providers with a portfolio currently including a place on the £4 billion Education Funding Agency Framework, the £400 million National Capital Works Framework, as well as the £250 million Regional Defence Framework for Capital Works Projects for East Midlands and Eastern England, for the Defence Infrastructure Organisation (DIO). Balfour Beatty is the only national construction company on all three UK health frameworks (P21+, Designed for Life Wales 3 and Health Framework Scotland), delivering £2 billion worth of work over the past 10 years. We are also on several regional frameworks including Constructing West Midlands, Construction Framework South West and the iESE Framework in the South East, which all aim to provide and promote more efficient construction of public buildings.
3. Balfour Beatty (www.balfourbeatty.com) is an international infrastructure group that delivers world class services essential to the development, creation and care of infrastructure assets; from finance and development, through design and project management to construction and maintenance.
Our businesses draw on more than 100 years of experience to deliver the highest levels of quality, safety and technical expertise to our clients principally in the UK and the USA, with developing businesses in Australia, Canada, the Middle East, South Africa and South East Asia.
With proven expertise in delivering infrastructure critical to support communities and society today and in the future, our key market sectors focus on infrastructure - transportation (roads, rail and aviation), power and energy, water, and complex buildings (both commercial and social).
Balfour Beatty employs 40,000 people around the world.
