Details of the huge BT facilities outsourcing contract, first reported on i-FM last week, were released yesterday in a Stock Exchange announcement. The Carillion-led consortium, including Balfour Beatty and Reliance Integrated Services, has been selected as preferred supplier for the delivery of facilities management services to over 8,500 buildings. All three partners will, in effect, be both client and provider for facilities services under a 'franchising arrangement'.

Carillion has a 51% share in the consortium, with Reliance and Haden each taking 24.5%.The contract will be worth more than £500 million over the initial five year term, although an "evergreen" clause could see this extended.

The management of all FM related services will be brought together into an 'integrated solution'. BT expects this to deliver improved and sustainable standards of service across the whole of the 6m sq m estate, including office buildings, computer, research and engineering centres, motor transport workshops and telephone exchanges. The services to be provided range from building fabric maintenance to cleaning and catering.

The proposed model for the contract is based on the principles of franchising, with the partnership led by Carillion acting as the enabling organisation, managing change and innovation through a network of eight Regional Service Providers, who will adopt common systems, processes and work practices to deliver consistent standards.

The eight Regional Service Providers will be formed by bringing together BT’s existing best practice suppliers to create a multi-skilled workforce capable of delivering the full range of services required. In addition to their enabling role, the members of the partnership will also be service providers through this regional structure. Some 4,000 people will be employed across the regional businesses.

The consortium says the model is highly flexible, enabling the services identified now to be provided efficiently, while accommodating changes in services to match the size and scope of BT’s estate.

E-commerce will be used extensively for the procurement of goods and services and a 'data warehouse' will facilitate open access to information and a linkage to BT’s legacy systems.

Carillion chairman, Sir Neville Simms said: "I am delighted that our consortium has been selected by BT for this important contract. The innovative agreement being adopted has been made possible through the development of a strong partnership with BT, which I believe will set new standards for quality and efficiency in the delivery of integrated facilities management services."

Richard Byatt