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Carillion close to securing BSF deal

Carillion’s success in winning Building Schools for the Future work looks set to continue as it has been left as sole bidder on a £100 million deal in northern England.

The firm’s Inspired Spaces consortium is the only remaining contender for Durham County Council’s BSF deal to redevelop schools in East Durham and Sedgefield village after rivals Spirel (Morgan Ashurst) and Icelandic outfit NYOP withdrew from the bidding.

The council said that despite the lack of competition created by the situation, it would be proceeding through the rest of procurement as planned.

A council source said: “It is not unknown for this to happen. We are confident that we can still achieve good value and will go through all of the processes required to make sure that is the case.”

Any acceleration of the procurement process due to the sole bidder status is likely to be marginal with the council still anticipating signing a deal by early 2009.

If the Durham win is confirmed for Carillion it would mark a continuation of the turnaround in the firm’s BSF fortunes.

Last year the firm was at the bottom of the class having failed to secure a single deal despite throwing its hat in the ring for a series of contracts.

But since then Carillion has bagged major deals in South Tyneside and Gateshead; Nottingham and Tameside, with a combined value of more than £500 million.

Now the firm is understood to be looking at where the next opportunities may come from to further bolster this work.

Company sources say that it will target Cambridgeshire County Council’s £150 million Fenland schools scheme, the first tranche of the council’s £500 million BSF programme, which is due to be advertised in early July.

The firm is also understood to be tracking the £1 billion Essex schools BSF deal and Somerset Council’s £450 million programme.

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