Re Contract

Balfour Beatty PLC
09 January 2006


9 January 2006


             BALFOUR BEATTY AWARDED ROAD MAINTENANCE CONTRACTS TO A
                   TOTAL POTENTIAL VALUE OF OVER £300 MILLION
                   ==========================================


         New contracts in Essex and Scotland take the Group's confirmed
                  maintenance order book to over £700 million
                  -------------------------------------------

Balfour Beatty, the international engineering, construction and services group,
announces today that its specialist road management and maintenance company,
RCS, has been awarded two major new long-term maintenance contracts in Scotland
and in Essex with a total potential value in excess of £300 million.

Commenting on these awards, Balfour Beatty Chief Executive, Ian Tyler, said:

'These new contract wins further consolidate the position Balfour Beatty has
established through RCS as a leading service provider in the fast-growing market
for highways management and maintenance. Our success stems from our commitment
to understanding and exceeding customers' expectations and bringing an
innovative and disciplined approach to our customer partnerships.'

In Scotland, a joint venture of RCS and Mouchel Parkman has been awarded the
contract for the management and maintenance of major trunk roads in the north
west of the country by the Scottish Executive. The five-year contract will
commence on 1 April 2006 and has extension options of up to two years. It will
be worth approximately £27 million per annum. It covers over 1,300 km of
highways, including strategic ferry routes to Wick, Ullapool and Oban, and some
1,300 structures, including the Skye Bridge.

RCS has also been awarded the five-year term maintenance contract for county
roads in Mid and East Essex by Essex County Council. It covers general highways
and winter maintenance as well as emergency response on a predominantly rural
network. The contract will commence in April 2006 for an initial five years with
the possibility of extensions and is worth approximately £20 million per annum.
The county as a whole has more than 7,200 km of roads.

                                      ENDS

Enquiries to:
Tim Sharp
Tel: [phone]

www.balfourbeatty.com


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

1.  RCS was established in 1996, has approaching 2,000 employees and annual 
    sales in excess of £200 million. Its vision is to be the UK's leading 
    operator and term maintenance provider, renowned for customer service, 
    respect for people, protecting the environment and providing best value.

2.  RCS is responsible for the management and maintenance of major roads in
    Highways Agency Areas 2, 3 and 4, stretching across southern England from 
    the Kent coast to the West Country.

3.  RCS has contracts for managing and maintaining local authority roads in
    Hampshire, North Yorkshire, Westminster and Wokingham, and for street 
    lighting in Surrey.

4.  RCS maintains Balfour Beatty PFI road concessions in Devon and Dorset,
    Derbyshire, Yorkshire and the west of Scotland.

5.  Balfour Beatty is a world-class engineering, construction and services 
    group, well positioned in infrastructure markets which offer significant 
    growth potential. Its partnerships with public and private customers 
    generate secure, sustainable income. 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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