Balfour, Carillion, Skanska among 12 on £450m Tube framework

13:48 07 Aug 2008
By Carol Millett

Twelve firms including Balfour Beatty, Carillion, Skanska and Taylor Woodrow have clinched a place on London Underground's first framework contract under its massive £2.8bn Vendor Capital Programme.

The other eight firms are Balfour Beatty subsidiaries Birse Metro and Mansell Construction along with Costain, Dyer & Butler, Bam Nuttall (Edmund Nuttall), Geoffrey Osborne, Morgan Est and YJL Infrastructure.

However six other firms on the shortlist failed to make the cut. These are Fitzpatrick, Bovis Lend Lease, William Verry, Colas, Murphy and C Spencer.

The £450m framework, which will run for five years, is divided into four value bands:

  • Band One, worth £3.5m to £10m;
  • Band Two, worth £10m to £30m;
  • Band Three, worth £30m to £60m;
  • Band Four, worth £60m to £100m.

Carillion, Morgan Est and Skanska have made the cut in all four value bands, while Taywood and Edmund Nuttall are in Bands Two, Three and Four. Balfour Beatty is in Bands Three and Four while its subsidiaries Birse Metro and Mansell Construction have made the grade in Band One along with Dyer & Butler and Geoffrey Osborne. Birse Metro is also in Band Two. Meanwhile Costain has been chosen for Band Three. [See full details below.]

The value of the framework deal could swell beyond £450m. Bidders say LUL officials have indicated  that some of Metronet's £1bn workload could be thrown into the mix.

This is the first of nine frameworks planned under LUL's Vendor Capital Programme which was delayed by Metronet's demise last year. The procurement process was revived in January this year.The framework is modelled on the LUL's five year Alternative Provider framework, set up in 2005 to deliver work outside the Tube PPP and to provide a benchmark for the PPP contracts.

Band One, £3.5m to £10m

  • Carillion Construction
  • Skanska
  • Morgan Est
  • YJL Infrastructure
  • Birse Metro
  • Mansell Construction
  • Dyer & Butler
  • Geoffrey Osborne

Band Two, £10m to £30m

  • Carillion Construction
  • Morgan Est
  • Skanska Construction
  • Edmund Nuttall
  • Birse Metro
  • Taylor Woodrow Construction

Band Three, £30m to £60m

  • Morgan Est
  • Edmund Nuttall
  • Balfour Beatty Civil Engineering
  • Carillion Consstruction
  • Skanska Construction
  • Taylor Woodrow Construction
  • Costain

Band Four, £60m to £100m

  • Morgan Est
  • Edmund Nuttall
  • Carillion Construction
  • Skanska Construction
  • Balfour Beatty Civil Engineering
  • Taylor Woodrow Construction