Construction giant Carillion has landed a £1 billion contract to supply nationwide support for BT’s Openreach business.
The Wolverhampton firm is leading a joint venture with technology firm Telent to install and maintain networks for the local access network firm.
Under the future contract, the joint venture would deliver a range of services across Openreach’s five regions – London and Home Counties, the South East, Midlands, Wales and West, the North, and Scotland. It is the fourth major contract the company has announced this month, after it won a £500 million deal to build schools in the north east, a £116 million deal to build a Scottish prison and a £275 million contract to build a new Parliament building in Oman.
Chief executive John McDonough said the Openreach deal cemented Carillion’s position in the support services market.
He added: “Carillion already has a strong relationship with BT, for whom we have provided integrated facilities management services for BT’s UK estate since 2001.
“The Carillion-Telent joint venture has outstanding skills and resources and we look forward to working with Openreach to support them in delivering a first-class service to their customers.”
The Carillion-Telent joint venture has signed a letter of intent with Openreach for a future contract to provide nationwide support services including network installation, asset management and maintenance, together with other associated works.
The contract is expected to be agreed and signed within the next two months, during which time transition arrangements will be put in place.
Shares in Carillion rose 2.8 per cent to 293p, in early trading after the announcement to the stock exchange.
Carillion produced a pre-tax profit of £53.6 million for the six months to the end of June 2008.