BT Selects Partnership for Facilities Management
Reliance Security Group PLC
2 May 2000
RELIANCE SECURITY GROUP PLC
BT Selects Partnership for Major FM Contract
BT has selected a partnership led by Carillion with Balfour Beatty and
Reliance Integrated Services as its preferred supplier for the delivery
of facilities management services to over 8,500 of its buildings.
Subject to the satisfactory conclusion of final negotiations, the
proposed contract is likely to be worth over £500 million, making it the
largest private sector facilities management contract to date in the UK.
The contract period will be five years, but there will be an option to
extend this through the inclusion of an 'evergreen' clause, which
reflects the partnering philosophy that is fundamental to the contract.
The partnership has worked closely with BT to develop a ground breaking
model agreement under which the management of all BT's FM related
services will be brought together into an integrated solution that will
deliver improved and sustainable standards of service across the whole
of BT's estate.
The facilities management services to be provided range from support
services for cleaning and catering to maintenance of the fabric of
buildings and external ground maintenance. The buildings involved
include large offices, computer centres, research centres, telephone
engineering centres, motor transport workshops and telephone exchanges.
Brian Kingham, Chairman of Reliance Security Group, said:
'We are delighted to have been chosen by BT against extensive
competition. We look forward to providing high added value through an
innovative approach for an organisation that is at the forefront of the
revolution in communications and information technology'.
Notes to Editors
Under the terms of the partnership, Carillion has a 51% share and
Reliance Integrated Services and Haden Building Management each have
24.5%.
The proposed model for the agreement with BT is based on the principles
of franchising, with the partnership led by Carillion acting as the
enabling organisation, managing change and innovation through a network
of eight Regional Service Providers, who will adopt common systems,
processes, and work practices to deliver consistent standards.
The eight Regional Service Providers will be formed by bringing together
BT's existing best practice suppliers to create a multi-skilled
workforce capable of delivering the full range of services required. In
addition to their enabling role, the members of the partnership will
also be service providers through this regional structure. Some 4000
people will be employed across the regional businesses.
The model is highly flexible, enabling the services identified now to be
provided efficiently, while accommodating changes in services to match
the size and scope of BT's estate.
E-commerce will be used extensively for the procurement of goods and
services and a 'data warehouse' will be created to facilitate open
access to information and a linkage to BT's 'Legacy' systems.
Carillion is one of the UK's leading construction to services groups
with an annual turnover of around £1.8 billion. Its service related
businesses, in the areas integrated facilities management,
infrastructure management and Private Finance, have been the focus for
growth over the last five years and now have an aggregate turnover of
some £650 million. Carillion Services is already the leading supplier
of non-clinical support services to the NHS, a leading supplier of
property maintenance services to the Ministry of Defence, the manager of
the Metropolitan Police Estate and a leading supplier of building
control and property legislation services.
Haden Building Management, is one of the country's leading asset
management and facilities management service providers. It is part of
Balfour Beatty, the £2.5 billion international engineering, construction
and services group, which has a support services business, of which
Haden Building Management is a part, currently worth more than £600m per
annum. Haden's clients include Shell, HSBC, Barclays, Merrill Lynch,
Goldman Sachs, the BBC, British Gas, National Power, Intel, BAA, Tesco
and Sainsbury's. Balfour Beatty's other support services activities
include rail maintenance for a number of Railtrack areas, road
management and maintenance for the Highways Agency and a number of
county authorities and power system management for the London
Underground.
Reliance Integrated Services Limited is a provider of innovative total
facilities management solutions to industrial and corporate customers.
It is part of Reliance Security Group plc which has grown organically
over the last 25 years. Reliance provides a wide range of support
services and is an established market leader in the provision of
contract security management, manpower and electronic surveillance.
With a turnover in excess of £130 million per annum and employing over
7,500 people, the company operates from more than 30 offices nation-wide
and the customer base includes over 60% of the FTSE Top 100 UK
companies.
For further information contact
Reliance Geoff Hazlehurst 01895 205000
Carillion John Denning 01902 316426
Balfour Beatty Tim Sharple 020 7629 6622
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