Carillion jv seals £500m Regional Prime Contract

A joint venture between Carillion and support service company Enterprise has been selected as the preferred bidder for £500m Regional Prime Central contract.

The deal includes also includes discrete construction work to maintain the Ministry of Defence’s (MoD) built estate and non-PFI new build and refurbishment.

CarillionEnterprise, comprising Carillion with a 50% stake and Enterprise (50%), will be responsible for maintenance, new build and refurbishment of around 8,500 buildings across the country over a seven-year period, with the potential for a three-year extension.

Significant mobilisation activity will take place before the contract start date of April 2006.

John McDonough, Carillion’s chief executive, said: “Government’s outsourcing of support services is a major growth market and defence is one of our key sectors.

"The heart of our approach is to introduce innovative ways of working that will enable the MoD to maximise value for money through improved efficiency and the delivery of leading-edge supply chain management."

This is the second major defence contract win for Carillion in as many weeks. Last week, a joint venture led by Carillion was selected as the designated support services supplier for a contract with a value potentially in the region of £700m with Defence Estate to maintain and upgrade MoD family accommodation.