Contract Awards - April

Check out the latest developments across Transport and Infrastructure. Here’s a roundup of the major contracts awarded this month.

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Contract Awards - April

Check out the latest developments across Transport and Infrastructure. Here’s a roundup of the major contracts awarded this month.

Check out the latest developments across Transport and Infrastructure. Here’s a roundup of the major contracts awarded this month.

Rail

Network Rail

Network Rail has announced the winners of its c£2bn capital works delivery framework for CP7, covering its North West and Central region.

The frameworks have been divided into categories A, B, C and D.

Category A will deliver £490m of construction work.

  • Lot A1 – Skanska and Kier will deliver work with a value of £7m to £200m.
  • Lot A2 - Octavius Infrastructure and Story Contracting will deliver work with a value of £7m to £50m.

Category B – worth £695m and will deliver projects between £100,000 and £7m in value.

Companies are: Story Contracting, QTS Group, Amalgamated Construction, J Murphy & Sons, Taziker Industrial and Amey Rail.

Category C - worth £358m and will deliver projects between £100,000 and £4m in value.

Companies are: Amalgamated Construction, OTS Group, Story Contracting, J Murphy & Sons, and Amey Rail

Category D – worth £229m and will deliver works with a value up to £100,000.

Companies are: Amalgamated Construction, QTS Group, Construction Marine, J Murphy & Sons, CK Rail Solutions, and JSS Rail.

The initial term of frameworks A, B and C will be 5 years; there will be an option to extend for a further 2 years. Framework D will last for 3 years.

Additionally, Network Rail have announced the six companies who have been awarded contracts on its £4bn Train Control Systems Framework.

The framework runs from 2024 until 2034 and is worth £4bn: £3bn for digital signalling, and £1bn for conventional signalling.

Lot 1 – Conventional Signalling: Alstom, AtkinsRéalis, Hitachi and Siemens.

Lot 2 – Digital Signalling: Thales & Volker Rail, Alstom, AtkinsRéalis & CAF, Siemens.

Department for Transport

The Department for Transport has announced that it intends to make further direct awards for three passenger rail contracts – East Coast, South Western, and Essex Thameside.

All three have been direct awards since 2021.

The new deals will last for two to five years for East Coast, and three to eight years for South Western and Essex Thameside.

Transport for London

TfL has awarded FirstGroup the contract to operate the IFS Cloud London Cable Car that links the Greenwich Peninsula with the Royal Docks areas on the north bank of the River Thames.

The contract will commence on the 28th of June 2024, and has an initial core five-year term with the option to extend for a further three years.

Amtrak

Amtrak has selected an AECOM led joint venture with Jacobs to be delivery partner for the $6bn (£4.7bn) Frederick Douglass Tunnel Programme.

The programme will upgrade a ten-mile section of the Northeast Corridor (NEC), America’s busiest passenger rail line.

Highways

Kent County Council

VolkerFitzpatrick has been awarded a £34m contract to build the Sturry Link Road project, which includes a 250m long viaduct.

As well as constructing the bridge, VolkerFitzpatrick will deliver a new roundabout and approach roads to connect to the bridge.

Bath & North East Somerset Council

Bath & North East Sommerset Council will continue its collaborative relationship with VolkerHighways until 2029 for their highways and street lighting maintenance contracts.

The two contracts are valued at £16m per year.

Royal Borough of Greenwich

The Royal Borough of Greenwich has awarded Marlborough Highways with a £56m contract to provide highways maintenance and improvement works.

The is a four-year contract which began on the 1st of April.

Airports

Riyadh Airports Company

Mace has been chosen to be the delivery partner for the Riyadh’s King Salman International Airport. The airport is expected to be the world’s largest airport, opening in 2030.

Foster + Partners has been appointed by design the master plan for the airport, and Jacobs will design infrastructure.

Water

Anglian Water

Anglian Water is retaining its existing @one Alliance partners – Balfour Beatty, Barhale, Mott MacDonald Bentley (MMB), MWH Treatment, Skanska and SWECO as well as new addition Binnies.

The alliance will deliver £2.6bn of work in the upcoming AMP8 period between 2025 and 2030.

Yorkshire Water

Yorkshire Water has awarded BarhaleEnpure JV a £15m contract to carry out major upgrade work at a water treatment works in Huddersfield.

Thames Water

Thames Water has awarded Lanes Group a contract valued between £750m and £1bn to deliver large amounts of wastewater utilities work in and around London over the next ten years.

Ports

Peel Ports

Peels ports is inviting contractors to submit bids for two new frameworks covering a major long-term programme of construction works across its UK and Ireland sites, worth a total of £750m.

The port operator is seeking to appoint contractors to the two frameworks for a period of up to eight years, with one framework covering general construction and the other covering marine construction.

Energy

UK Government

Kier, X-energy and Cavendish Nuclear have signed a Memorandum of Understanding to collaborate on the next generation of UK nuclear reactors.

Following a government grant to X-energy and Cavendish Nuclear from the government’s Future Nuclear Enabling fund, the companies will explore opportunities around the deployment of a fleet of Xe-100 Generation IV Advanced Reactors in the UK.

The government’s award of £3.34m will be matched by X-energy, providing a total fund of £6.68m.

Pagabo

Pagabo has announced the 49 firms appointed to its £1.6bn healthcare decarbonisation framework.

Great Ormond Street Hospital is the healthcare sector-specialist contracting authority for the framework, which will run for four years.

The framework is split into four value banded lots over twelve geographical regions, giving a total of forty-eight sub-lots:

  • Lot 1 – up to £1m
  • Lot 2 - £1m to £5m
  • Lot 3 - £5m to £15m
  • Lot 4 – £15m+

Find a list of the 49 companies here.

Gasunie

Gasunie has awarded Mott MacDonald a contract to assess the feasibility of a green offshore hydrogen infrastructure network in the Dutch North Sea as part of decarbonisation efforts in Europe. This contract is the first lot on Gasunie’s recent engineering services framework.

Sizewell C

Framatome has signed contracts with Sizewell C worth multi-billion euros. They will be responsible for the delivery of the two nuclear heat production systems, from design phase and their supply, up to their commissioning. Framatome will also provide the plant’s safety instrumentation and control systems.

A long-term fuel supply agreement, and a contract for long-term services and maintenance to support plant operation, also form part of the agreements.

Hinkley Point C

BGEN has been awarded a £84m contract by GE Steam Power Systems for work on Hinkley Point C. Under the contract, BGEN will provide electrical and instrumentation solutions to the nuclear power station in Somerset.

The company begin later this month. The end date is scheduled for December 2027.

Public Sector Works

SCAPE

AtkinsRéalis, Arcadis and Perfect Circle have been appointed by SCAPE to two new utilities consultancy frameworks designed to help clients in the utilities sector shape their investment programmes.

The two frameworks are:

  • England, Wales and Northern Ireland - £750m – Perfect Circle and AtkinsRéalis (with subsidiary support from Arcadis)
  • Scotland - £500m – Perfect Circle and Arcadis (with subsidiary support from AtkinsRéalis)

The frameworks will run for four years with an option to extend for a further two.

Scottish Government

The Scottish Government has picked eight firms for its public works framework covering civil engineering projects. The framework is expected to be worth £600m over the next four years.

The framework is divided into three lots.

The largest project value contract, covering jobs over £25m, was awarded to Balfour Beatty, Farrans, Graham and Morgan Sindall.

Amalgamated Construction, Galliford Try, R J McLeod and Taziker Industrial were also awarded contracts on the framework. Find further details here.

Environment Agency

27 contractors have secured places on the Environment Agency’s framework covering small civil engineering works under £1m, M&E and vegetation management.

Amalgamated Construction, Breheny, Cheetham Hill Construction and Land & Water are among the firms to renew their places on the main civils engineering works lot, expected to be worth £336m over the four-year framework.

Firms on the M&E lot include Amalgamated, Galliford Try and JN Bentley.

Find a full list of the 27 companies here.

Scottish Prison Service

Balfour Beatty has been awarded a contract to construct the new £209 HMP Highland in Inverness Scotland. They were first appointed to deliver the pre-construction phase, including design of HMP Highland, in 2022.

This latest phase is valued at £199m and will see Balfour Beatty progress with the construction of the facility.

Ministry of Justice

Kier has been awarded a contract to expand HMP Elmley on the Isle of Sheppey in Kent. This expansion is part of the Ministry of Justice’s £500m Accelerated Houseblocks Delivery Programme (AHDP), which is part of the Government’s plan to deliver 20,000 new prison places.

Has your company been awarded one of these contracts? For inspiration or help finding senior leaders to help deliver this work, drop me a line on [email protected]