Re Contract

Balfour Beatty PLC
17 October 2002



BALFOUR BEATTY AWARDED £110 MILLION STRATEGIC ALLIANCE CONTRACT BY DURHAM COUNTY
COUNCIL


Balfour Beatty, the international engineering, construction and services group,
announces today that its subsidiary, Balfour Beatty Civil Engineering, has been
awarded the Durham County Council 'Strategic Alliance for Civil Engineering &
Environmental Works & Services' partnering contract.  The contract, which
commences in October 2002, is valued at approximately £110 million over five
years with a possible two-year extension.

The alliance joint venture is led by Balfour Beatty Civil Engineering and also
involves Cumbrian Industrials, Ringway Highway Services.  CAPITA and Babtie
Group will supply design services.

The Balfour Beatty joint venture will integrate with the existing Durham County
Council in-house service providers to deliver an extensive programme of major
and minor civil engineering works.  The decision criteria weightings applied in
assessing the bids and awarding the contract were 70% quality and 30% price.

Commenting on the award today, Balfour Beatty Chief Executive, Mike Welton,
said:  'We are delighted to be involved in this important Strategic Alliance
with Durham County Council.  It is particularly pleasing to win a contract in
which quality was the most important decision criterion'.

This award is a further development of Balfour Beatty's business strategy to
secure long-term work under partnering agreements.  The company has existing
civil engineering framework contracts in the North East of England with the
Highways Agency and Northumbrian Water and a wide range of other such contracts
for electricity, gas and water utilities and outsourced asset and facilities
management in both the public and private sectors.


Enquiries to:

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


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