Re Contract

Balfour Beatty PLC
19 September 2006


19 September 2006

                        BALFOUR BEATTY WINS £320 MILLION
                        ================================
                      NATIONWIDE SUPPORT SERVICES CONTRACT
                      ====================================
                    FOR THE DEPARTMENT FOR WORK AND PENSIONS
                    ========================================

      Haden Building Management to deliver seven-year, nationwide package
      -------------------------------------------------------------------

Balfour Beatty, the international engineering, construction and services group,
announces today that its specialist facilities management arm, Haden Building
Management (HBML) has been selected by the Department for Work and Pensions to
be their single service provider in delivering a comprehensive range of office
support services, on a nationwide basis, under a seven-year contract, worth
approximately £320 million. There is also an option to extend the contract by a
further three years.

It is anticipated that the contract will commence on March 1, 2007, following a
period of planning and preparation to ensure a smooth transfer from the
Department's current arrangements which involve a range of both internal and
external service providers.

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

'We are delighted that the Department for Work and Pensions has decided to award
this vital contract to Haden Building Management on a comprehensive nationwide
basis. This will build on and extend, significantly, the successful working
relationship that we have built up with the Department over recent years.

'The Department will have our full support in ensuring that it achieves optimum
value for money and a flexible system readily able to meet its changing business
requirements.'

HBML has been working with the Department for Work and Pensions since 1995 and
has had responsibility for facilities management services for Southern England
since 1999.

This single national contract will enable the Department to harness the benefits
of new technology, increase organisational efficiencies and promote a flexible
approach in responding to the changing needs of the Department as it is
modernised and refitted. It will involve the full range of office services and
vehicle fleet management.


                                      ENDS


Enquiries to:
--------------

Tim Sharp
Tel: [phone]
www.balfour.beatty.com



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

 1. Haden Building Management is a leading asset and facilities management
    business with current annual revenues of approximately £250 million. Its
    customers' wider long-term framework contracts include the Royal Mail, BT
    and a range of the Balfour Beatty Group's PFI hospitals and schools schemes.
    Other customers include the BBC, BAA, Tesco and Land Securities.

 2. Balfour Beatty is a world class engineering, construction and services group
    which works in partnership with sophisticated customers who require the
    highest levels of quality, safety and technical expertise and for whom
    infrastructure, efficiency and reliability are critical.




                      This information is provided by RNS
            The company news service from the London Stock Exchange