Annual report and accounts 2006

Strong long-term partnerships

The range and depth of our experience and expertise is becoming an increasingly important element in the programmes and plans of major infrastructure owners as they seek to achieve their long-term objectives. An increasing proportion of our business and our forward order book derives from stable, long-term alliances and partnerships with customers who have ambitious long-term investment plans.

An increasing number of the organisations for whom we work make us an integral and indispensable part of their own processes, under long-term alliance, partnering or framework contracts. Whether they are utilities, social service providers, airport, road or rail network owners, a common theme is the need to deliver ever safer, more reliable, more efficient infrastructure for their customers.

To do this, they have to be able to rely on their supply partners to deliver absolute commitment, from Board level downwards, a broad capability base, a clear focus on and understanding of their objectives, processes and culture, a willingness to learn and a mind-set to collaborate externally and internally.

Balfour Beatty’s ability to rise to these challenges is reflected in the proportion of its work now carried out under long-term collaborative contract forms, providing stability and predictability of income and an increased capacity to attract the best talent and deliver the best solutions.

We have long-term relationships with five of the UK’s eight water companies; we take care of almost one-quarter of England’s strategic road network and the road systems for five major local authorities; we are the principal supplier of rail track renewal services to Network Rail and the London Underground; we look after substantial proportions of the UK gas and electricity grid systems; we are the supplier of choice for rail electrification projects in the UK, Germany and Italy; we will shortly commence running the entire office service network for the Department for Work and Pensions, nationwide; and through Public Private Partnerships we serve six NHS trusts and five local education authorities under long-term concession contracts.

Some major long-term contracts graph

Order book by contract type graph