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Kier racks up utilities workload

5 Aug 14 A £200m contract from Bristol Water is the latest in a raft of major contract awards for Kier in the utilities sector.

Kier has been appointed sole provider of Bristol Water's £20m-a-year network maintenance services programme. The contract, which will start on 1 October 2014, is for five years with a potential five-year extension.

Works will comprise repairs and maintenance, metering, new connections, developer mains, trunk mains support and small diameter mains rehabilitation.

This contract follows other utility contracts that Kier has won just in the past three months. In May Kier won a five-year contract, with a potential 10-year extension, for Anglian Water's £90m integrated maintenance and repair (IMR) contract, set to start in April 2015. In June Kier also secured a second two-year deal with a potential five-year extension with Sembcorp Bournemouth Water (SBW) for its £3.5m-a-year planned and reactive maintenance programme, amounting to a potential £24m.

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Away from the water sector, Kier has also been winning school building work. It was awarded a place on all six regional lots of the Education Funding Agency (EFA) regional framework for school building and upgrades, estimated to be worth up to £5bn over four years. Each of the lots is worth between £500m and £1.5bn. Individual contracts awarded through the framework are expected to be valued between £200,000 and £12m. This EFA framework, which became operational on 8th July, will mainly comprise repairs, refurbishment and remodelling works, as well as some smaller new build projects.

Kier CEO Haydn Mursell said: "These sizeable new contract awards demonstrate the strength of our offering across the services and construction sectors. The utilities award is further evidence of the value that the acquisition of May Gurney has brought to the Group, and further consolidates our utilities capability and strength."

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