Defence framework bears fruit for Lendlease 

Lendlease Construction Europe has been awarded three contracts for British Army facilities under a broader £5.1bn Ministry of Defence (MoD) framework.

The contractor said today (5 July) that the deals, worth a combined £450m, were procured under the Defence Estate Optimisation (DEO) Army Programme by the Defence Infrastructure Organisation (DIO).

Lendlease will build new accommodation, office and training facilities and extend existing facilities at Imjin Barracks (pictured) in Gloucestershire, St David’s Barracks in Oxfordshire, and Beacon Barracks in Staffordshire.

“All of the works will aim to improve the lived experience of Army personnel and are focused on delivering a better structured, modern and more sustainable defence estate,” Lendlease said in a statement.

The contracts are part of the MoD’s 10-year Strategic Alliance Contract, under which Lendlease and six other tier one firms are delivering the design-and-build elements of the MoD’s 25-year DEO Portfolio programme.

Galliford Try, Graham, ISG, Kier, Laing O’Rourke and Morgan Sindall are the other major contractors involved in the alliance.

Lendlease posted a pre-tax profit of £11.9m from turnover of £509m in its latest annual results for the year ending 30 June 2023.

But its Australian parent firm is now racing to find a buyer for its UK construction business, having put it up for sale in May.

Lendlease Construction Europe managing director Simon Gorski cited his firm’s work with the MoD as one example of “major public sector spend” from the government.

Speaking to Construction News before the 4 July general election, he added that, whatever the result of the vote, “there’s going to be a huge impetus for capital spend on major complex projects”.

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