The London Borough of Islington has selected Kier Group's Facilities Management division as a partner for a major outsourcing contract under the Government's 'best value' programme. Valued at £120m over ten years, this latest contract boosts the Group's recent facilities management awards to over £285m.

Kier will establish a partnership company with Islington to undertake the ten-year programme of building and housing maintenance. The partnership company will take over activities from the Council's current in-house provider and is expected to start operations in October 2000. Some 530 employees will transfer to the new company, which will trade as part of Kier's growing FM services division. Kier’s activities will comprise day-to-day repairs to the housing stock, housing voids, gas maintenance, routine maintenance such as periodic painting, and building cleaning.

Kier Group chairman Colin Busby commented: "The 'best value' initiative is set to transform many local government activities and it is very exciting that Kier has set up this long-term housing maintenance partnership with Islington, which may well be repeated elsewhere. This partnership also underlines Kier's commitment to FM services following the recent signing of support services contracts worth £165m at the Neath & Port Talbot Hospital and Pembroke Dock CP School in South Wales under PFI."

Anna Lagerkvist