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CarillionEnterprise has picked up a huge regional prime contract for the ministry of defence.

The firm has picked up the Ministry of Defence’s regional prime contract covering its estate in the central area. The contract is worth more than £550m, and there is an opportunity for further new works projects.

Defence minister Dan Touhig, awarding the contract, said: "This is another significant achievement that reflects real and effective collaborative approach between Defence Estates and CarillionEnterprise. We are well on schedule for putting in place an effective service delivery system that will deliver better value for money and greater efficiencies to both customers and users of the estate. Both the taxpayer and those who live and work on the estate will benefit."

As the prime contractor, CarillionEnterprise will be responsible for the delivery of capital works and property maintenance at 80 major MOD sites throughout the central area, which encompasses the West Midlands, Yorkshire and the Humber, north-east and north-west England and Wales. The contract will run for an initial seven-year term, with a MOD option to extend to 10 years subject to the satisfactory performance of the contractor, and is the fourth of five regional arrangements to cover the defence estate.

Regional prime contracting represents part of Defence Estates’ strategy to improve the value for money gained from expenditure on the construction and maintenance of the estate. Efficiencies will come from improved supply chain management, contract incentives, economies of scale and collaborative working to promote a culture of continuous improvement. This applies the principles of the MOD’s ‘Smart Acquisition’ initiative to estate procurement with a clear separation of responsibilities between the MOD and the prime contractor.

Commenting on the appointment, Tony Harden, CarillionEnterprise’s managing director said:

‘We are delighted to have been selected for this major defence service. The heart of our approach is to introduce innovative ways of working that will enable the Ministry of Defence to maximise value for money through improved efficiency and the delivery of leading-edge supply chain management.’