Kier Group awarded East Midlands highways contract

Another Highways England contract went Kier Group’s way on Wednesday, with the firm being selected by the government-owned roads operator as the preferred supplier for design services in 'Area 7', covering the East Midlands.

The FTSE 250 property, residential, construction and services group said the new deal was in addition to its existing Highways England contracts, and was worth up to £50m over a five year period, starting on 1 July.

Area 7 comprises 50 miles of motorway and 266 miles of trunk toads in Nottinghamshire, Derbyshire, Leicestershire, Lincolnshire, Northamptonshire and Rutland, including parts of the M1, M6 and A1.

Kier Highways would prepare technical design and undertake supporting work for capital projects in the area from an initial scheme feasibility phase, through to the as-build phase.

The company said its expertise in structures, pavements, drainage, lighting, technology and landscaping would be called upon in the delivery of the contract.

"We are pleased to have secured an attractive design services contract with Highways England under its new delivery model,” said Kier chief executive Haydn Mursell.

“This contract reflects our adaptability and flexibility when working with clients, whilst showcasing our enhanced offering that has been strengthened by the acquisition of Mouchel,” he added.

Mursell said the company remained confident about the long-term outlook for its services business, underpinned by a healthy combined order book of £9bn across the construction and services divisions.

The company’s board said the award of the contract also demonstrated Kier’s ability to tailor its services offering to Highways England’s evolving asset-led delivery model, and reflected the breadth of the group’s capabilities following the Mouchel acquisition.