Re Contract

Balfour Beatty PLC
14 November 2005


14 November 2005


 MANSELL WINS NEW CONTRACTS IN EDUCATION AND SOCIAL HOUSING TO A TOTAL VALUE OF
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                           APPROXIMATELY £130 MILLION
                          ===========================
             M1 widening contract to begin at value of £289 million
              -----------------------------------------------------

Balfour Beatty, the international engineering, construction and services group,
announces today that its subsidiary, Mansell, the construction and property
services company, has been awarded new contracts in education and social 
housing to a total value of approximately £130 million.

In the education sector, the company is to renew part of the school estate for
Argyll & Bute Council under a £35 million contract. It has won £30 million of
education building work for Norfolk County Council, which is in addition to its
existing three-year framework partnering agreement with the customer. It is 
also to refurbish existing buildings and build a new extension at the 
University of London's College Halls of Residence in a contract valued at 
£19 million and is to design and build new teaching facilities in Kilburn for 
the College of North-West London.

In the social housing market, Mansell has been appointed by the Metropolitan
Housing Trust to construct 345 new mixed tenure housing units in
Northamptonshire under a £37 million framework partnering contract. The
development comprises 144 apartments, 114 two and three bedroom traditional
houses and 87 houses and flats designed using new standards of energy
efficiency.

Mansell is now established as the second largest participant in the 
fast-growing social housing market, to which the UK government has committed 
some £22 billion of expenditure over the next five years.

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

'Mansell has gone from strength to strength since we acquired the business at
the end of 2003, with annual sales now exceeding £600 million. Much of the
company's work is in long-term framework contracts with blue chip clients and 
in the rapid growth sectors of education and social housing.'

It was also announced last week that advanced works on Balfour Beatty's Early
Contractor Involvement scheme to widen the M1 between the M25 and Luton
(Junctions 6a-10) will begin today, November 14th. The major works on the
carriageways will begin early in the New Year. The scheme will widen 10 miles 
of the motorway to four lanes in each direction to relieve congestion and 
improve safety.

A joint venture of Balfour Beatty and Skanska were appointed preferred bidder
for this £289 million contract in March.

Last week, the Highways Agency awarded Balfour Beatty the £171 million Early
Contractor Involvement contract for the A421 scheme in Bedfordshire.

                                      ENDS

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











Notes to Editors

1. Mansell was acquired by Balfour Beatty in December 2003 for a total
   consideration of £42 million.

2. Over 70% of Mansell's work comes from repeat business from a
   long-established, blue chip customer base.

3. Mansell's major long-term customer relationships include those with BAA, BT,
   the Ministry of Defence, the Department for Work and Pensions, UNITE and a 
   wide range of major UK housing associations.

4. 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.


5. Balfour Beatty Civil Engineering is a UK leader in road building and
   widening schemes. In December this year, it will hand over the major M25 
   widening scheme adjacent to Heathrow Airport ahead of schedule. In April, it
   completed the £132 million M77/Glasgow Southern Orbital PFI scheme in
   Scotland on time and on budget.




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