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Carillion wins £2.8bn of work on MoD estates

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Carillion, the Wolverhampton-based services and construction group, has signed deals worth up to £2.8 billion to work on improving Army and RAF bases across the UK including MoD Stafford.

The deals are with the Defence Infrastructure Organisation, the arm of the Ministryof Defence in charge of armed forces accomodation, training sites and bases.

Carillion is part of a joint venture that has won three Next Generation Estate Contracts, the final part of the campaign to upgrade all the UK's defence sites.

It follows the announcement in May that Carillion and Amey had won the contracts to work on military housing.

Altogether the five contracts involved with a total value of £4.5 billion,

A Carillion joint venture with Amey has been awarded the Regional Prime Central contract that is estimated by MoD to be worth in the order of £435 million over the initial contract period of five years. This involves building and running facilities and services at more than 150 sites including MoD Stafford, RAF Cranwell, Catterick Garrison and RAF Valley and MoD Stafford, together with the option to undertake capital works projects worth up to £3.93 million.

The Carillion joint venture has also been awarded the South East and South West Regional Prime contracts that are estimated by MoD to be worth in the order of £258 million and £265 million, respectively, over an initial five years covering 60 key sites, including Sandhurst, Horse Guards, HQ Land Andover and RAF Northolt.

The South West contract will provide facilities and asset management services at 40 key sites, including RNAS Yeovilton, DE&S Abbey Wood, RAF Lyneham and Britannia Naval College. At DE&S Abbey Wood and the UK Hydrographic Office.

both Carillion and Amey have commited to using the new contracts to help ex-service personnel find jobs and also support the provision of reservists.

All three contracts, together with the contract in Scotland and Northern Ireland, which was announced on 12 May, will deploy a service delivery model for hard facilities management services that will support the UK Government's objective of encouraging the use of Small and Medium-sized Enterprises.

Carillion chief executive, Richard Howson, said: "We are delighted that our joint ventures have signed these three major contracts. This follows our recent success in winning the National Housing Prime contract and the Scotland and Northern Ireland Regional Prime contract and means that our joint ventures have won all five of the Next Generation Estate contracts for which we bid.

"We look forward to building on the strong relationship we have developed with Defence Infrastructure Organisation and to working closely with DIO to deliver further improvements to the quality and energy efficiency of the defence estate across the whole of the UK.

"DIO set industry the challenge of providing added value to the military estate and by awarding us these five contracts providing UK wide coverage the offers we submitted have been recognised as generating demonstrable benefits in this regard, including the use of market leading customer feedback systems."