Kier Group announce new contract awards worth £300m

Kier Group plc, the property, residential, construction and services group, has announced £300m worth of contract updates within its Services and Construction divisions.

Kier has secured two extensions to its existing Area 1 and 13 highways contracts with Highways England, worth up to £90m.

Kier has now established itself as one of the main providers of management and maintenance services for Highways England’s strategic network as well as a provider to local authority highways networks, following the acquisition of Mouchel earlier this year.

The updated contract consists of a twenty-month extension up to June 2017 to the existing Managing Agent Contractor (MAC) contract for the Area 1 contract covering Devon and Cornwall. This network covers the A30 and A38 and includes the A38 Saltash Tunnel, which is the only two-way, three-lane tunnel in Highways England’s road network.

Furthermore, Kier Group secured a seventeen-month extension up to March 2017 on the Area 13 contract covering Cumbria and North Lancashire. This contract covers 376 km of motorways and trunk roads across the region and provides the strategic road link with Scotland and the west coast.

In addition, Mouchel Consulting (which provides consultancy services) and Kier Business Services (which provides business outsourcing services) have been awarded a £40m four-year contract to deliver consultancy services for North Yorkshire County Council spanning a range of services including estates management, property projects and highways services. This contract commences April 2016.

Kier Business Services has also been appointed preferred bidder for a £62m health support services framework for NHS Yorkshire & Humber Clinical Commissioning Group (CCGs), in partnership with Dr Foster, BDO and Engine. Kier is the lead partner in the consortium and will provide a range of services, including business intelligence, ICT, HR and procurement and other commissioning support services to the region’s twenty-three CCGs. The contract commences in March 2016.

In the Construction division, over £100m of new contract have been awarded, including projects under the Scape minor works framework.

Haydn Mursell, chief executive of Kier, said: “We are proud of the team’s record of being Highways England’s top rated supplier and are delighted to have been awarded two contract extensions. These extensions demonstrate the value and range of capabilities that we can bring to Highways England and we look forward to working in partnership with them.”

“Following the acquisition of Mouchel back in June, I am pleased to report that Kier Business Services continues to be selected for its knowledge and expertise across the health sector. Kier has a strong record of delivering healthcare development projects across the country and these new contracts increase its presence in this growing market sector.”

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