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Tuesday, May 23, 2023

Balfour Beatty awarded extensions to two road maintenance contracts worth 170m

Balfour Beatty has announced today that its road management and maintenance company, RCS, has been awarded extensions to two of its long-term local authority road maintenance contracts, adding 170m to its forward order book.

The highways maintenance contract for North Yorkshire County Council, which was awarded in January 2002, has been extended by four years from 2008 to 2012. The extension will be worth approximately 140m and covers almost 8,000 kilometres of country roads and over 1,500 bridges. The scope of the contract covers carriageway and footway maintenance, winter maintenance, street lighting and emergency response.

In Hampshire, the extension of the contract, which began in 2002, is for one year to 2008 and is worth approximately 30m. It covers the maintenance of county roads and covers a similar scope of work to the north Yorkshire contract.

In both cases, the original contracts were won on the basis of quality and price in approximately equal proportions.

Commenting on the awards today, Balfour Beatty Chief Executive, Ian Tyler said: "These contract extensions represent a strong endorsement of our processes and performance in road management and maintenance, and reflect great credit on our teams and their ability to work with our customers and respond to their needs."

RCS now has a forward order book of over 900m and with annual sales of approximately 230m is one of the top three road management and maintenance companies in the UK.

RCS is also responsible for the management and maintenance of motorways and trunk roads across Southern England from the Kent coast to the West Country in Highways Agency Areas 2, 3 and 4. It has other local authority contracts in Westminster, Wokingham and Surrey and maintains Balfour Beatty's PFI road concessions in Devon and Dorset, Derbyshire, Yorkshire and the West of Scotland.