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Olympics win proves golden for Carillion

Contractor takes a total of £627 million-worth of work in July as Department for Culture, Media and Sport tops client list

Clinching a £400 million deal to build the broadcast and press centre for the 2012 Olympic Games in London has sent Carillion sprinting to the top of the monthly contractor’s top 50.

The job for the Olympic Delivery Authority was one of nine contracts secured by Carillion during July worth a total of £627 million.

According to Glenigan, Carillion pipped Balfour Beatty and French titan Bouygues to the contract, which is one of the prime deals to come out of the next Olympics.

As this year’s Olympics in Beijing is played out, work for the next Games in four years’ time is moving up a gear.

The Construction Products Association says the 2012 Olympic Games in London will contribute £300 million to construction output in 2009 and another £430 million in 2010.

The ODA is part of the Department for Culture, Media & Sport in Glenigan’s statistics and the DCMS has awarded 15 contracts worth a total of £1.4 billion.

This time last year, the DCMS did not even feature in the top 50 clients but the department was ranked seventh in the year to July. The award of the contract for the press centre lifts the DCMS up to second spot in the latest rankings.

Games-related work

Carillion was languishing in eleventh place a year ago but moves up one place to second spot in the annual contractors’ top 50 for the year to August 2008.

A further break-down of Glenigan’s figures for Construction News shows that the ODA has awarded 14 contracts totalling £1.4 billion so far but 56 contracts worth a total of £13.3 billion-worth related to the 2012 Olympics have been let.

This larger total ranges from ODA jobs, such as Carillion’s £400 million broadcast centre, to work linked to the Olympics in a looser sense such as projects based on Government commitments to the 2012 Games or those aiming to capitalise on the event.

These other contracts range from a £363 million improvement of the Northern Line, being carried out by Carillion and Balfour Beatty, to the £2 billion Stratford City scheme being built by Westfield.

According to Glenigan’s analysis, Balfour Beatty has landed the most Olympic-related work either directly for the ODA or for jobs linked to the Games with eight awarded totalling more than £1.3 billion.

Carillion’s recent success in securing the broadcast and press centre project places the contractor in second spot in the chase for Olympic work with a hat-trick of contracts worth a total of £863 million.

Next down the rankings are Edmund Nuttall and Skanska with four contracts apiece worth a total of £302.3 and £200.5 million respectively. Most other contractors have only landed the odd project but Dutch giant VolkerWessels has picked up three jobs worth £29 million.

Steve Menary is the author of Emap Glenigan’s 2012 Construction Projects – The Definitive Guide. For more information on buying a copy of the report and Glenigan’s other products go to www.glenigan.com

To download a PDF of the 50 top contractors, clients, consulting engineers and quantity surveyors for July, click on the resource box on the right hand side of the page.