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Sat December 15 2018

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Skanska closes deal for Carillion's defence work

4 Dec Skanska has formally taken over Carillion’s facilities management contract at the Ministry of Defence’s Northwood HQ in Hertfordshire.

Northwood HQ
Northwood HQ

Skanska has signed a 13-year facilities management contract valued at £196m, having been interim manager of the contract since 29th March 2018.

The contract was awarded by Eastbury Park Ltd, which was established in 2006 as a joint venture between Carillion and HSBC to deliver a £1.15bn contract to redevelop and look after the Northwood base.

Construction work finished in 2011 and Eastbury Park Ltd is now owned by InfraRed Capital Partners but Carillion’s facilities management contract was to have run until 2031. Skanska will now deliver all non-military support activities on the site until that year.

Service provision through the contract includes all facilities management services, such as buildings maintenance, grounds maintenance and IT communications infrastructure support.

“This contract is an exciting opportunity for Skanska to build on its good reputation in both the defence sector and the facilities management market. There is an excellent team in place to support this important operation and I look forward to seeing the relationship go from strength to strength in the coming years,” said Skanska managing director Adam McDonald.

Northwood HQ is made up of the UK military headquarters, NATO maritime headquarters and an EU operations headquarters. Approximately 2,500 military personnel work on the site and more than 850 people live on the base.

MPU

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