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Carillion confirmed for £400m Battersea Power Station job

Carillion has been confirmed as winner of the first phase £400 million deal for the Battersea Power Station redevelopment.

Construction News reported that Carillion were set for the win yesterday.

Brookfield, Lend Lease, Laing O’Rourke and Sir Robert McAlpine had been in the running for the scheme.

Preparatory work on phase 1 of the project, to the west of the 39-acre site, has already begun. Main construction works will start in the summer of 2013 and are scheduled for completion in 2016.

This will coincide with the start of the renovation of the Grade II-listed power station, which is the largest brick building in Europe.

Carillion chief executive Richard Howson said: “We are delighted to have been selected as the preferred bidder for this prestigious project, which I believe reflects Carillion’s reputation for delivering high-quality, value for money projects.  We look forward to working in partnership with the Battersea Power Station Development Company to deliver this iconic project that willmake a major contribution to the transformation of this historic site. 

“This takes the total value of new orders and probable orders for Carillion in 2013 to some £2.6 billion and demonstrates the benefits of our strategy in construction services of focusing on national projects.”  

Phase 1, also known as Circus West, will see 866 apartments and townhouses built with up to three bedrooms, raising to 18 storeys at its peak. The first residential occupancy is expected in 2016.

The project also includes offices, shops and community spaces designed by Ian Simpson Architects and de Rijke Marsh Morgan.

A consortium comprising SP Setia, Sime Darby and the Employees’ Pension Fund of Malaysia bought the the site for £400m in July last year.

Chief executive of Battersea Power Station Development Company, Rob Tincknell, said: “This will be one of the largest construction contracts to be awarded in recent history and, on behalf of the Battersea Power Station shareholders, we are delighted it will go to an award-winning British firm.

“The first phase of any redevelopment is an important statement of the qualities that will govern the entire project and for that reason we took a lot of time selecting the contractor. 

“After a great deal of consideration, we believe Carillion is best placed to deliver the ambition, precision and rigour that people rightly expect from a scheme which will flank a building as famous and distinguished as Battersea Power Station.

“Battersea Power Station is the last central London regeneration project of its sort and over the course of the redevelopment it will generate 15,000 new jobs, 3,500 new homes and the restoration of the historic Power Station.”

The complex is to be serviced by a new underground station, as well as river bus services.

London Underground issued a tender notice for contractors for the extension of the Northern line from Kennington to Battersea, worth between £400m and £600m in March.

The Mayor of London, Boris Johnson, said: “This is a hugely important step forward in the regeneration of Battersea Power Station and it paves the way for the creation of thousands of new jobs and homes.

“This iconic London landmark has lain dormant for too long and it’s fantastic news that it will soon be home to a hive of activity that boosts the economy in the capital and beyond. I’m delighted that we now have one of the UK’s leading firms on board to help deliver what is without doubt one of London’s most important construction projects in decades.”     

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