Contractor’s joint venture with Arup sees off competition from Balfour Beatty for Infrastructure Strategic Alliance contract
Morgan Sindall has landed the £1.1bn contract to deliver a series of major infrastructure works at the Sellafield nuclear site, beating off competition from Balfour Beatty.
The contractor, in a joint venture with engineer Arup, was chosen as the preferred delivery partner for the Infrastructure Strategic Alliance contract, worth up to £1.1bn over a maximum of 15 years, which is part of Sellafield’s long-term programme of strategic investment.
As Building revealed this month, , Morgan Sindall was in competition with Balfour Beatty for the job, which will see the winning contractor charged with managing and delivering a series of infrastructure projects and emergent work, ranging from £1m to £50m and providing a range of essential services at the Sellafield nuclear site.
Morgan Sindall said the job included the maintenance of steam and electricity generation, water supply, chemical storage and distribution, drainage networks and all transport infrastructure at the site.
The contract is expected to be signed later in the year, for an initial five year period, with an option to extend the contract for a further 10 years.
The contract has been described as a “game changer” by firms bidding for the work.
Morgan Sindall opened an office in Cumbria last December as part of its drive to secure work with Sellafield.
According to the OJEU notice for the contract, the winning bidder will be asked to deliver cost savings of 25% over the first five years of the contract, with “equivalent savings” over the full contract period.
Paul Smith, Morgan Sindall Group chief executive said: “This appointment is fantastic news for the Group and Sellafield as a whole.
“The award builds on our strong track record of delivering on the most complex and challenging infrastructure projects for our clients. The renewal of Sellafield’s infrastructure is an important commitment to Cumbria, and underlines the Group’s continuing focus on UK regeneration.”
Nuclear Management Partners’ Deputy Managing Director for Sellafield Ltd, George Beveridge, said: “We have set ourselves a number of challenging targets through our performance plan.
“Long term, collaborative alliances with supply chain partners represent best industry practice and it’s important that we seize that opportunity to unlock expertise and innovation and safely deliver our work programme quicker and more cost effectively.
“We’re confident that in Morgan Sindall and Arup, we have found partners with a proven track record that will help us ensure that our infrastructure assets receive the best possible care.”