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Amey beats Carillion and Interserve to £500m tri borough contract

Exclusive: Amey has beaten Carillion and Interserve to become preferred bidder for the tri-borough London contract, thought to be worth around £500 million.

The deal is to manage shared services, including construction procurement, across the boroughs of Hammersmith and Fulham, Kensington and Chelsea, and Westminster.

A spokesperson for the Kensington and Chelsea Borough Council confirmed to CN that Amey is now the preferred bidder.

The decision to award the contract will go to the three councils’ cabinets in May, where each will vote on it.

“After an 18-month procurement process, Amey has been named as the preferred bidder for an outsourced total facilities management contract across the Royal Borough of Kensington and Chelsea, Westminster City Council and Hammersmith & Fulham Council,” the spokesperson said.  

“The proposal to award the contract to Amey is expected to go before each councils’ cabinet for formal approval in May 2013. Details of the contract will not be disclosed until after it has been awarded.”

The aim is to create “one single property function” for the councils, with plans to share capital projects and “better procurement of contracts for construction-related services”.

The combination of those services is expected to save £40m a year – but it also means upheaval for staff.

The tri-borough councils are sharing £300m of services and “cutting management costs in half with 175 senior posts going”.

Communities and local government secretary Eric Pickles has encouraged more councils to merge their services to save money.

Capita beat Carillion to a multi-billion deal to manage education support services for Staffordshire council in December last year.

Carillion meanwhile won a £700m deal for property and facilities management services in Oxfordshire and has since predicted a rise in shared services and bundled council contracts.

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