Contractors Carillion, Balfour Beatty and Interserve have all increased the amount of money they contribute to their staff pensions.
The annual reports of the three companies, issued this week, show that Carillion has increased provision by £14m, Balfour Beatty by £9m and Interserve by £8.9m.

The net deficit in Carillion's pension schemes rose from £52.9m in 2002 to £76.6m last year, and the firm closed its final-salary scheme to new members last March.

Despite these extra costs, Carillion and Balfour Beatty turned in improved figures for the year ending 31 December 2003. Carillion increased pre-tax profit to £51m. Turnover eased £3m to £1.9bn.

Balfour Beatty's pre-tax profit rose 10% to £130m, and turnover increased to £3.7bn. Interserve, however, had a £2.9m pre-tax loss.