Two-thirds of the new business has been won by the company’s Services division. These include two extensions to its existing Area 1 and 13 highways contracts with Highways England, worth up to £90m. This is business that Kier took over when it acquired Mouchel earlier this year.
Mouchel Consulting and Kier Business Services have also been awarded a £40m four-year contract to deliver consultancy services for North Yorkshire County Council, spanning a range of services including estates management, property projects and highways services. This contract starts in April 2016.
The Highways England extensions include a 20-month extension up to June 2017 to the existing managing agent contractor (MAC) contract for the Area 1 contract in Devon and Cornwall and a 17-month extension up to March 2017 on the Area 13 contract in Cumbria and North Lancashire.
In addition, Kier Business Services has been appointed preferred bidder for a £62m health support services framework for NHS Yorkshire & Humber Clinical Commissioning Group (CCGs), in partnership with Dr Foster, BDO and Engine. Kier is the lead partner in the consortium and will provide a range of services, including business intelligence, human resources, procurement and other commissioning support services to the region’s 23 CCGs. This contract starts in March 2016.
Kier Construction has won more than £100m of new contract awards from various sources recently, including projects awarded under the Scape minor works framework.
However, Kier has failed to hang on to the East Sussex County Council highways maintenance contract that it took over when it bought May Gurney in 2013. As reported elsewhere, that has now gone to Costain CH2M joint venture.
Chief executive Haydn Mursell said: “We are proud of the team’s record of being Highways England’s top rated supplier and are delighted to have been awarded two contract extensions. These extensions demonstrate the value and range of capabilities that we can bring to Highways England and we look forward to working in partnership with them.
“Following the acquisition of Mouchel back in June, I am pleased to report that Kier Business Services continues to be selected for its knowledge and expertise across the health sector. Kier has a strong record of delivering healthcare development projects across the country and these new contracts increase its presence in this growing market sector.”