Balfour Beatty secures £170m London Underground contract extension

Infrastructure group Balfour Beatty has secured a £170m two-year extension to its Track Partnership for London Underground, which is responsible for delivering essential track renewal work across the network.

The FTSE 250 company was appointed to the initial contract in 2010 with an option to extend for a further two years.

Balfour will continue to provide design, labour, plant, and materials, as well as surveying, supervision and management of the works.

Throughout the extension, the focus will be on enhancing efficiencies including measures which will see project managers given more accountability for driving down costs.

Chief executive Leo Quinn said: "With world-class expertise in track, electrification and power supply systems, Balfour Beatty Rail is a significant player in the UK rail infrastructure market.

“We have utilised these market-leading skills and expertise working with London Underground over the last 13 years. This extension is a clear sign of London Underground's confidence in the capability of Balfour Beatty within the Track Partnership.”

At 0855 GMT, Balfour shares were down 0.1% to 251.23p.