黑洞社区

Carillion has reached an agreement with the coalition on how it can find efficiencies on government support services contracts.

Under a Memorandum of Understanding, Carillion said it would work with the government to 鈥檙e-engineer procurement and service delivery鈥� across a number of its existing contracts.

The contractor said the process could see a change in the 鈥檚cale and scope鈥� of contracts.

In November 黑洞社区 reported that paymaster general Francis Maude was talking to Carillion about cutting the price of outsourced contracts.

Maude has been running a programme at the Cabinet Office to cut the price of government contracts from the government 50 largest suppliers.

Carillion also revealed this morning it had won 拢350m of new contracts.

Support service contracts worth 拢190m included a 拢25m five-year FM contract with the Land Registry, and a 拢75m contract with BAA to provide M&E and fabric maintenance at Heathrow. A Carillion JV has won 拢80m contracts to provide facilities management services for Dow and property management services for Enexis.

Carillion鈥檚 construction business won a 拢45m contract for work on Whittington Barracks, which is expected to start in September 2011.

Argent has awarded Carillion a 拢21m contract to build an apartment scheme at King鈥檚 Cross.

In Canada Carillion has been awarded a 拢60m construction management contract to build Phase 2 of the Uptown Shopping Centre in Victoria, and a 拢51m contract to build the new Queensway Hospital in Ottawa.

John McDonough, group chief executive, said: 鈥淲e have made a positive start to 2011, following our strong performance in 2010, for which we expect to report good profit and earnings growth, and year-end net cash of well over 拢100 million.鈥�

鈥淣ew order intake remains healthy and we have secured new orders plus probable orders worth some 拢350 million.鈥�