Costain heads ECI roads race


Leaders have emerged in the race for three Highways Agency (HA) early contractor involvement deals totalling more than £570m.

Sources say Costain jv is in the fast lane for two of them, but the firm looks as if it has been overtaken on the third deal, where Laing O’Rourke is in pole position.

The HA is now carrying out reality checks on Costain and its joint venture partner Mowlem for one of the client’s biggest-ever projects – the £430m M1 widening between junctions 10 and 13.

An insider said: “Mowlem hasn’t won a major road scheme for some time and the fact that it looks like this massive contract will come its way must come as a big relief.”

He continued: “Rumours spread around the industry about four weeks ago that Costain/Mowlem was looking good for the M1 contract, but it’s only now that it’s possible to say with near-certainty that the team will pull it off.”
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Work on site is likely to begin in 2007.

Three other groupings pitched for the M1 prize. These were the old firm of Amec/Alfred McAlpine; Skanska/Balfour Beatty; Morgan Est/Vinci/Sir Robert McAlpine. Laing O’Rourke, as usual, pitched alone.

Costain is again the subject of the HA’s attentions on the £56.7m Holmesdale Tunnel deal, which also features improvements to the M25 at junction 25.

This time, Mowlem was Costain’s rival on the shortlist, as were Balfour Beatty, Nuttall, Skanska, and Laing O’Rourke.

Work on site is programmed to start in September.

These victories for Costain follow hard on the heels of its recent success on the £130m-plus A2/282 Dartford improvement/M25 widening deal in Kent (CJ 8 June).

Meanwhile, it is understood that the all bids for the £84.7m A1 Morpeth-Felton upgrade in Northumberland were so close that an independent assessor made the final choice of Laing O’Rourke.

The other runners for the deal, which also features a river bridge, were Balfour Beatty, Carillion, Costain, Nuttall and Skanska.

News of the front-runners means that Skanska and Balfour Beatty have come away empty-handed from their entries into all three forays, while Nuttall has emerged from two without
success.

Carillion will be particularly disappointed with the A1 outcome, because the firm has found it hard recently even to make the shortlists for major roads deals.


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