Costain nets massive TfL deal

Engineering giant Costain has announced a record order book and a massive new contract to work on Transport for London (TfL)'s £500m delivery project.

The deal covers the delivery, upgrade and maintenance of bridges, tunnels and highways across London.

Costain is one of three suppliers for the four-year Framework, which is valued at up to £500m in total, and includes design, planning and complex project delivery work. The Framework may be extended by two years at TfL’s discretion.

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During a previous Framework Costain carried out the strengthening of the Hammersmith Flyover, a highly complex project which was delivered ahead of schedule.

Andrew Wyllie CBE, Chief Executive of Costain commented: “We are delighted that TfL has again chosen Costain as a delivery partner for the Major Projects Framework. It is a reflection of our strong track record in applying innovative techniques in highways.”

The firm, which has a base in Castleford, said in a trading update that its order book at the year-end was maintained at the record level of £3.9 billion.

Costain secured a number of significant new orders and contract extensions in 2016. New contract wins during the second half of the year included the High Speed 2 South Enabling Works, the Area 14 Maintenance commission for Highways England and the Peterborough and Huntingdon compressor station upgrade for National Grid.

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As a result, the Group’s order book at the year-end was maintained at the record level of £3.9 billion (31 December 2015: £3.9 billion). The Group has increased its revenues secured for 2017 to over £1.2 billion (as at 31 December 2015: over £1.1 billion secured for 2016). In addition, Costain has a preferred bidder position at over £500 million (31 December 2015: £500 million).

Mr Wyllie said: “Costain has had another strong year. Our customers are undertaking substantial investment addressing urgent national needs and we are looking forward to the future with confidence.”

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