Balfour Beatty – Fluor JV Conditionally Bags $1.7 Billion Texas Highway Contract

Balfour Beatty (BBY.L), a British infrastructure group, said early Friday that it has been conditionally awarded a $1.7 billion interstate highway contract from the Department of Transportation in Texas as part of a joint venture with Fluor (FLR).

The company said in a statement that it has a 45% share in the joint venture, while Fluor, an engineering and construction firm headquartered in Irving, Texas, holds the remaining 55%.

Work on the new 635 LBJ East contract includes the reconstruction and widening of 11-miles of the interstate highway around the North and East of Dallas in Texas, as well as the construction of service roads and numerous intersection improvements along the route.

When complete, the highway will consist of 12 lanes in total, widening the general-purpose lanes from eight to ten as well as two reconstructed existing, tolled managed lanes.

“With over half of Balfour Beatty’s construction revenue generated from our US operations,” the firm continues to benefit from “strong competitive positions in our chosen large and growing infrastructure markets,” Group Chief Executive Officer Leo Quinn said in the statement.

The full contract award is expected in autumn 2019, with works expected to commence in early 2020, and substantial completion scheduled for late 2024, the company said.

Balfour, which employs 26,000 people globally, reported an 11% increase in its order book as at the end of December to 12.6 billion pounds ($15.84 billion), from 11.4 billion pounds a year ago, it said in a full-year earnings statement in March.