Balfour Beatty - General - London, MET Police Contract Worth £150m

Date: 11 Dec 2006

Balfour Beatty, the international engineering, construction and services group, announces today that its specialist facilities management arm, Haden Building Management (HBML) has been awarded a contract worth in excess of £150 million by the Metropolitan Police Authority (MPA) to provide facilities management services across the Authority's property portfolio in North London.

The contract, which will run for an initial seven-year period, with an option to extend for a further three years, provides a full facilities management service covering over 500 properties, including some major landmark buildings such as the Peel centre in Hendon and other high-profile Metropolitan Police sites.

Ian Tyler, Chief Executive of Balfour Beatty, commenting on the award said:

"This contract confirms and extends Haden's position as a leading provider of facilities management services in the UK. It also further underscores our growing reputation for service delivery, innovation and continuous improvement. This contract adds to Haden's growing portfolio of long-term sustainable customer relationships. We look forward to a long and successful relationship with the Metropolitan Police and to providing first-class support to their front-line policing needs."

Alan Croney, Director of Property Services, the Metropolitan Police Service said:

"The signing of this contract represents a significant step towards realising our vision for facilities management which is to move from a traditional management intensive approach to a more innovative, information and performance led culture. The nature and scope of relationship we are establishing with Haden is critical to supporting operational policing and the delivery of our wider asset management led Estate Strategy."

HBML is in a period of strong growth with approaching £650 million of work added in 2006 to its order book which now stands at well in excess of £1 billion. In September HBML was awarded a £320 million seven-year contract to become the single service provider of a range of facilities management services to the Department of Work and Pensions. Earlier in the year, its contract with BT, Monteray, was extended by a further three years. It is also a 49% partner in Romec, which provides support services to the Royal Mail's nationwide estate.

The contract for the Metropolitan Police supports that organisation's Estate Strategy and it will significantly improve the prioritisation of facilities management services to meet changing police priorities and new asset plans. The contract involves the delivery of building engineering and fabric maintenance services; waste management; security; ground maintenance, cleaning, laundry and pest control; and the provision of reception, porter and warden services.

Haden Building Management recently appointed Kevin Craven as its new Managing Director. Previously Managing Director of the Specialist Markets Division of Aramark, he has the ideal profile and experience to lead the business forward into its new phase of development.

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