Skanska has been awarded a £196m facilities management contract part of the 13-year PFI contract formerly held by Carillion with the Ministry of Defence’s Northwood HQ in Hertfordshire (UK).

The agreement will see it provide buildings maintenance, grounds maintenance and IT communications infrastructure support for the MoD until 2031.

Around 2,500 military personnel work at the Northwood HQ, which acts as headquarters for the UK military, NATO maritime and an EU operations headquarters. 

In 2006, a Carillion joint venture won the £198m 25-year contract to finance, construct, operate, and maintain the facility. 

In January 2013 Carillion’s PFI partner HICL Infrastructure Company Northwood bought the contractor’s stake in the PFI for £30.6m.