Contract Awards – October

Contract Awards – October

Check out the latest developments across Transport and Infrastructure. Here’s a roundup of the major contracts awarded over the past month.

Energy

Contracts For Difference (CfD)

A record total of 95 clean energy projects have been successful with their bids in this latest allocation round – up from 93 in the previous round last year.

Half of this year’s total capacity has been secured by new solar projects, while onshore projects have delivered almost 1.5GW of capacity and secured more than double the projects (24) than last year’s round (10).  See the full list here.

UK Government

Designs from six companies have been chosen to go forward to the next stage of the selection process in plans to build the next generation of mini nuclear reactors: EDF, GE-Hitachi Nuclear Energy International LLC, Holtec Britain Limited, NuScale Power, Rolls Royce and Westinghouse Electric Company UK Limited.

The chosen designs are considered, by the government and Great British Nuclear, to be the most able to deliver operational Small Modular Reactors (SMRs) by the mid-2030.

In the next stage of the process, companies will be able to bid for government contracts with successful bids from the six companies going to contract award stage next summer.

National Grid

Arup and AECOM have been appointed to deliver management of the environmental impact assessment work for National Grid’s Grimsby to Walpole £1bn upgrade project.

The project will build a new high voltage overhead line in Lincolnshire, including new pylons and substations.

Water

Yorkshire Water

BarhaleEnpure JV has been selected by Yorkshire Water for an £18m project to upgrade their Dewsbury Wastewater Treatment Works.

Thames Water

Have awarded Barhale a £16.8m contract to upgrade an important water trunk main running through the London Boroughs of Barnet and Enfield. The work forms part of Thames Water’s AMP7 Conditional Allowance Trunk Main Schemes.

Works are expected to be completed by December 2024.

Thames Water has also agreed a five-year contract extension with Mott MacDonald Bentley, which will take their current agreement through to the conclusion of AMP8 in March 2030.

Severn Trent

Costain has been awarded a £79.8m package of work to improve wastewater quality and protect wildlife for Severn Trent.

Rail

Department for Transport

Arriva Group’s CrossCountry train operating company has been given an extension to their current contract to continue operating services. The new contract started on the 15th of October, with a guaranteed four-year core term.

The Department for Transport have also extended the National Rail Contract for the West Coast Partnership (WCP). WCP comprises of Avanti West Coast and West Coast Partnership. The contract started on the 15th of October and begins with a core three-year term to the 18th of October 2026. Subject to ongoing DfT approval, the contract can last until 17th October 2032.

Network Rail

J Murphy & Sons Ltd has been awarded the second of two contracts to build the new railway station for Chelmsford’s Beaulieu development. This is a £124m contract and includes main construction work for the new station on behalf of partners Essex County Council and Chelmsford City Council.

Beaulieu Park station is currently expected to be completed by the end of 2025.

Network Rail have also awarded a £93.4m main works contract to J Murphy & Sons to build the new Cambridge South Railway station. This follows enabling works conducted by Murphy in June.

The station is expected to be completed in 2025.

Transport for London

Balfour Beatty has been awarded a c.£43 million contract by TfL to deliver essential upgrade works on the Piccadilly Line.

Highways

Manchester City Council

Manchester City Council has granted nine firms places on their latest Highways Construction Work framework for transport infrastructure projects across Greater Manchester, Lancashire, and Cheshire roads.

This is a £100m framework and will run for two years, with an opportunity for a further two-year extension. The work has been split into two lots: small works up to £1m and projects above £1m.

Companies on Highways Construction Works up to £1m: A E Yates, Bethell Group, Carnell Support Services, Eric Wright Civil Engineering, Rosgal and The Casey Group.

Companies on the Highways Construction Works £1m-plus: BAM Nuttall, Bethell Group, Colas, Eric Wright Civil Engineering, Octavius Infrastructure and The Casey Group.

Somerset Council

Kier has been awarded a £225m, eight-year, road-maintenance contract with Somerset Council.

The contract will see Kier replace the current provider, Milestone Infrastructure, in taking responsibility for Somerset’s road maintenance.

Birmingham Highways

Kier has been named as the preferred bidder for a restructured £2.7bn 11-year PFI contract to maintain Birmingham’s Roads, subject to government approval.

Kier’s services under the new contract would begin on 1 February 2024 and continue until June 2035.

The revised contract is awaiting government approval. The city council and Birmingham Highways are currently in discussions with the Department for Transport and Treasury and are reviewing the business case for the revised deal.

Transport for London

Transport for London has awarded contracts to Arriva London, Go-Ahead London, Stagecoach London and Abellio London to ensure a further 152 new electric busses are added to the capital’s peak vehicle requirement (PVR).

The routes were confirmed across two tranches on the 12th and 20th October. Find details about the chosen routes here.

Arriva London will take the bulk of the addition zero-emission buses via a PVR of 76 across both tranches. Go-Ahead London will account for 49, Stagecoach London 16 and Abellio London 11.

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Author: Jim Newsom

Jim Newsom

Managing Director