A joint venture led by Wolverhampton-based support services and construction giant Carillion has won a contract worth up to £700 million to maintain and upgrade Ministry of Defence accommodation.
MODernHousing Solutions, in which Carillion has a 50 per cent stake, will be responsible for maintaining and upgrading 40,000 properties in England and Wales over a sevenyear period from August.
Other partners in the joint venture business are Atkins and Enterprise, both with a 25 per cent stake.
Carillion chief executive John McDonough said: "We look forward to working with Defence Estates and are committed to offering a responsive and consistent service for the families living in this accommodation."
Vice Admiral Peter Dunt, Defence Estates chief executive, added: "I am confident that, in taking forward MHS's proposals, we will develop a long-term, positive, mutuallybeneficial relationship in order to obtain improved service delivery."
Meanwhile, Carillion told shareholders that trading conditions in its key markets had remained positive and were in line with expectations, with the company's pipeline of probable new orders increasing to over £2.5 billion.
In an AGM statement, chairman Philip Rogerson said given the group's performance in the year to date, the level of new orders and growing pipeline of probable new orders, the "board remains confident that Carillion will continue to make further progress in 2005".
Mr Rogerson said the company had agreed heads of terms for a three-year extension to the Monteray facilities management contract with BT, potentially worth around £300 million.