Re Contract

Balfour Beatty PLC
10 October 2005


10 October 2005


BALFOUR BEATTY CONSTRUCTION WINS £110 MILLION OF MAJOR NEW UK BUILDING CONTRACTS
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Balfour Beatty, the international engineering, construction and services group,
announces today that its subsidiary, Balfour Beatty Construction (BBCL), has
been awarded three major new contracts to a total value of approximately £110
million.

The company is to design and build the new Higher Education and Further
Education Campus for York College in a contract worth £46 million. It has also
been appointed by Castlemore Securities to build a new office development in
Holborn, London in a contract worth £42 million. In Scotland, it has won a £22
million design and build contract for three Campuses for Pre-12 Education for
Glasgow City Council.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

'These three contract awards further demonstrate Balfour Beatty Construction's
pre-eminent position in the UK major building market. Customers choose Balfour
Beatty because of its proven capability in delivering large-scale, complex and
high-quality building projects on time and on budget.'

In York, the work will be undertaken at the College's Sim Balk Lane site. The
new college will be the biggest of its kind in the country, involving a
four-storey building of some 30,000 square metres, together with a separate
nursery, car parking and playing fields. It is due for completion in autumn
2007.

At 40 High Holborn, BBCL will construct 16,600 square metres of office and
retail space, with completion due in early spring of 2008. This project follows
the successful completion of Castlemore's £100 million Waverley Gate Development
in Edinburgh, for which BBCL carried out the £35 million construction project
including the largest listed facade retention in Europe.

In Glasgow, the three new education centres will comprise innovative,
environmentally-friendly buildings at St Bartholomew's in Castlemilk, Dalmarnock
Primary in the East End and Crookston Castle Primary. They are scheduled to be
completed in the summer of 2007.

                                      ENDS

Enquiries to:
Tim Sharp
Tel: [phone]
www.balfourbeatty.com



Notes to Editors
----------------

1.  Balfour Beatty Construction Ltd has annual sales of approximately
    £450 million. It is anticipated that its order book will have grown from its
    current level of about £800 million to in excess of £1 billion by the year 
    end.

2.  Balfour Beatty is a world-class engineering, construction and services 
    group, well positioned in infrastructure markets which offer significant 
    growth potential. Its partnerships with public and private customers
    generate secure, sustainable income. Its financial position, with 
    significant net cash and with strong operating cash flows, offers 
    continuing flexibility to add additional capacity and expertise to the 
    business mix and to make appropriate investments in PPP and other long-term
    growth opportunities.




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