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Balfour Beatty Workplace loses QinetiQ deal

14 April 2011

Balfour Beatty Workplace and its defence sector client QinetiQ will part ways in October after less than two years into a major seven-year contract.

The loss of the contract, estimated to worth £15m a year to BBW, will see 350 staff move back in-house to QinetiQ.

A spokesperson for Qinetiq told FM World the contract was “terminated for convenience”.

BBW announced the deal in late December 2009, saying it would provide integrated facilities management for QinetiQ’s 31 UK sites “for a seven-year contract with a base-line value of £15m per annum, plus additional fees for non-core services”.

“Balfour Beatty will be transforming the service, providing greater efficiencies and cost reductions to QinetiQ and will be responsible for mechanical and electrical and building fabric maintenance, waste management, mail, logistics, cleaning, front of house, helpdesk management and ground maintenance,” the original 2009 Balfour statement said.

A source close the contract told FM World that QinetiQ announced the termination of the deal on their intranet and also emailed employees, saying they could achieve better quality and value for money by bringing the service back in-house.

BBW said in a written statement that they had “a number of contracts worth substantially more than the contract with QinetiQ, with one worth some £1bn”.

Also, “Balfour Beatty Workplace made efficiencies during last year within its back office function due to the introduction of a shared service system. Balfour Beatty Workplace has achieved consistently strong growth over many years and we anticipate it being a core area of growth within Balfour Beatty (Group).”