Re Contract

Balfour Beatty PLC
16 March 2007


16 March 2007


                    BALFOUR BEATTY AWARDED £111 MILLION NEW
              DESIGN AND BUILD CONTRACTS BY GROSVENOR IN LIVERPOOL
              ====================================================

Balfour Beatty, the international engineering, construction, services and
investment group, announces today that it has been awarded design and build
contracts worth £111 million by Grosvenor, the privately-owned international
property group, for the Paradise Project in Liverpool. This multi-use
development, adjacent to Paradise Street in the heart of the city centre, will
form a significant proportion of Grosvenor's 42-acre Liverpool redevelopment
programme, which will be completed during the city's European Capital of Culture
Year in 2008.

The work will involve five Balfour Beatty companies, namely Balfour Beatty
Construction, Mansell, Balfour Kilpatrick, Balfour Beatty Civil Engineering and
Stent Foundations.

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

'This award demonstrates the all-round strength of the Group and the increasing
appeal of integrated solutions to deliver the infrastructure which our major
customers need.'

Balfour Beatty Construction will act as the main contractor for the eastern part
of the Paradise Project. This part of the project consists of some 15 buildings
including over 50 new retail units, 160 apartments and three commercial
buildings, together with 550 car parking spaces and the comprehensive
refurbishment of other buildings, including Liverpool's oldest Grade 2 listed
warehouse, for retail use.

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


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

1.  Balfour Beatty's 2006 revenues in the UK building, building management and
    services market amounted to almost £2 billion. Balfour Beatty Construction 
    and Mansell are leaders in building construction. Balfour Kilpatrick and 
    Haden Young also lead their markets for electrical and mechanical
    engineering. Haden Building Management is a fast-growing force in the 
    facilities management market, having secured over £750 million of new orders
    during 2006.

2.  Balfour Beatty is a world-class engineering, construction, services and
    investment business, well positioned in infrastructure markets which offer
    significant long-term growth. We work in partnership with sophisticated
    customers who value the highest levels of quality, safety and technical
    expertise. Our skills are applied in appropriate combinations to meet
    individual customer need. 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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