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Skanska takes £196m former Carillion defence contract

5 December 2018 | By Neil Gerrard

Skanska has taken on a former Carillion defence contract for facilities management services at the Ministry of Defence's Northwood HQ in Hertfordshire.

The 13-year contract, under a private finance initiative, is worth around £196m.

Skanska will deliver all non-military support activities on the site until 2031, including work such as buildings maintenance, grounds maintenance and IT communications infrastructure support

The contract was awarded by Eastbury Park Limited, a joint venture originally set up between Carillion Private Finance (Defence) and HSBC Infrastructure Management.

Eastway won a 25-year contract in 2006 to redevelop the 43-acre Northwood site, which is the home of the Permanent Joint Headquarters, which runs all UK military operations worldwide. The site is also home to NATO maritime headquarters and an EU operations headquarters. Approximately 2,500 military personnel work on the site and over 850 people live on the base.

Carillion’s collapse earlier this year meant that a new contractor had to be handled to fulfil its facilities management responsibilities.

Adam McDonald, Skanska managing director, said: “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.”

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