O’Rourke wins £2bn Hinkley nuclear contract

Grant Prior 12 years ago
Share

EDF Energy has confirmed the Bouygues TP/Laing O’Rourke joint venture as preferred bidder for the main civils contract to build a new nuclear power station at Hinkley Point C in Somerset.

The contract will be worth around £2bn and will create 3,000 construction jobs.

The O’Rourke jv fought off fierce competition from rival bidder Balfour Beatty/Vinci in one of the most keenly contested contract races for years.

The Enquirer first revealed in January that O’Rourke was winning the race for the job.

The firm will be delighted to win the contract now its work on the London 2012 Olympics is coming to an end.

The Hinkley job is subject to planning consent and EDF Energy comitting the cash.

Construction will involve the main civils works for the nuclear island, the conventional island and supporting structures.

The O’Rourke team has entered into a preliminary agreement for Early Contractor Involvement which will see it working on the development of the detailed design, construction methodology and programme.

The ECI arrangement means engagement can begin early with the local community and supply chain.

This contract is the first relating to the main construction works which will see up to 25,000 jobs created on site over the course of the project, including an estimated 400 apprenticeships for the civils work.

EDF Energy Chief Executive Vincent de Rivaz said: “I am delighted to welcome Bouygues TP/Laing O’Rourke Joint Venture into our project.

“The agreements announced today show we are continuing to maintain momentum in 2012 towards our final investment decision.

“We will work with Bouygues TP/Laing O’Rourke Joint Venture over the next few months to ensure we are in the best possible position to begin work on site once the investment framework and permissions are in place.

“This was a close, very competitive tender which attracted some high quality and robustly-costed bids.  We look forward to harnessing the relevant and complementary experience, expertise and knowledge offered by this powerful partnership of two well-respected and highly-committed construction companies.

“So much has been achieved on site already and we now have a strong partner in Bouygues TP/Laing O’Rourke Joint Venture to help to plan the next phase of works. For us, early engagement with key contractors is critical to ensure that they are clear on their responsibilities and the expectations we have of them.

“The civils contract will assist the UK’s economic recovery and boost economic prospects and prosperity locally. Our project will inject billions of pounds into the economy, revitalise entire sectors of industry and support tens of thousands of further jobs.

“2012 is a defining year for new nuclear. We will continue our discussions with Government about agreeing a legally robust investment framework.

“Agreeing the contract for difference is key – as I said at the recent Energy and Environment Select Committee hearing – it means that we and Government will have to be clear about our costs before we sign a contract for our project.

“It’s part of the open and transparent process taking us towards our final investment decision. The final investment decision will be based on cost evidence which will be robust.

“We are also working towards obtaining crucial decisions on planning consent and design approval later this year. A huge amount remains to be done but we are determined to do it.”

Ray O’Rourke, Laing O’Rourke Chairman and Chief Executive said: “We are delighted, along with our partner Bouygues Construction, to be appointed by EDF Energy as preferred bidder to lead the development of the first new nuclear power station, which is vital to meet the UK’s future energy demands and support the wider economic recovery.

“Today’s announcement marks an important juncture in Laing O’Rourke’s growth and development as a delivery partner of choice to the power sector.

“We look forward to bringing this nationally strategic project into successful reality. Through our direct delivery capability and investment in a new generation of engineering jobs and skills, we have the opportunity to create a valuable legacy that is so critical to the future success of the UK nuclear industry.”

Philippe Bonnave, Deputy CEO of Bouygues Construction, said: “We are very proud to be preferred bidder in partnership with Laing O’Rourke. This project confirms the mutual confidence that exists between EDF, Laing O’Rourke and Bouygues Construction.”

SCALE OF THE CONTRACT

The scope of work of the main civils contract includes the Nuclear Island, Conventional Island, Balance of Plant, Waste Disposal, Operational Service Centre; Temporary Civil Structures, Contractor’s offices on site; Contractors roads, platforms and networks.

The scale of the work involves sufficient steel reinforcement to build up to 9 HMS Illustrious aircraft carriers and enough left over to build 5 London Eyes; each nuclear island is the equivalent size of St Paul’s Cathedral; and around enough concrete will be poured to fill Twickenham Rugby Stadium to roof level.

Latest project news

Galliford Try to upgrade Red Arrows base

Contractor seals quartet of RAF base upgrades
5 months ago

Galliford Try bags £87m Brent Cross build to rent job

Firm picks up another three blocks at Argent's North London £8bn regeneration scheme
6 months ago

Balfour starts £67m Edinburgh school campus

Passivhaus certified campus buildings will replace Liberton High School
6 months ago

Red wins Bristol retirement village £14m expansion

44 extra care flats to be built at former Frys chocolate factory
6 months ago

Caddick bags UK’s largest fertiliser plant job

Yorkshire contractor seals £28m contract for new plant in Yorkshire
6 months ago

Mace wins concrete bunkers for world’s most powerful laser

Firm will build two 7m tall bunkers with 2m thick radiation resistant concrete walls
7 months ago

Robertson to deliver £20m Alloa Wellbeing Hub and school

Design work will now start on Wellbeing Hub and Lochies primary school
7 months ago

Green light for Canada Water next phase of 380 homes

Zone G plan includes major resi tower, supermarket and park
7 months ago

Mace to start £230m Landsec London office job

Timber Square project will pioneer a hybrid cross laminate timber and steel superstructure
7 months ago

British Land multi-storey logistics hub approved

London urban last-mile logistics hub pipeline hits £1.3bn
7 months ago

£350m Birmingham triple tower scheme approved

Vast curving Ringway Centre to be demolished for 1,750 flats development
7 months ago

Midgard lands £245m Tottenham Hale towers

Three towers of up to 38 storeys complete north London regeneration scheme
7 months ago

Go-ahead for Wates £35m Hartlepool leisure centre job

Work on the Highlight waterfront centre to start in November
7 months ago

Green light for 690-home Birmingham Smithfield scheme

Prosperity Group plans to start work in Autumn next year on major Smithfield scheme
7 months ago

Go-ahead for 289 homes next to Saltaire World Heritage site

Ambitious plan to demolish a vacant Bradford office complex for new residential quarter
7 months ago

Plans in for 800-bed Leeds student and retail scheme

Major scheme will replace The Core shopping centre in the city
7 months ago

McAleer & Rushe awarded £60m Barking flats job

Work to start in November on near 200 rental homes project
7 months ago

ISG clinches £155m Cat D prison expansion

Firm to deliver 780 new places at three existing prison locations
7 months ago

27-storey Salford student tower approved

540-bed student block to be built on former site of McDonalds' regional HQ
7 months ago

Morgan Sindall £48m Dumfries school job approved

Building work to start before the end of 2023
7 months ago

Bouygues/Murphy JV tipped for £2.3bn Thames tunnel job

Frontrunner emerges for Lower Thames Crossing 4.2km tunnel job
7 months ago

Vinci/McAlpine JV to start £105m NHS rehabilitation centre

Treasury clears New Hospital Programme job to start main construction
7 months ago

Three giant lab buildings approved at £700m Oxford R&D district

Phase 2 Oxford North office and lab buildings to deliver 460,000 sq ft of space
7 months ago

RG Group to build tallest student block in the world

Contractor confirmed on 45-storey tower in Leeds
7 months ago

Vinci wins major St Helens town centre revamp

£90m first phase includes new market hall, 120-bed hotel and over 60 flats
7 months ago

Work to start this year on Manchester £250m spa resort

Developer Therme gets green light for re-engineered 28-acre Trafford complex
7 months ago

Barhale JV sign-off for £18m Dewsbury sewage works upgrade

Project forms part of Yorkshire Water’s £500m investment in Phosphorous removal
7 months ago

Murphy seals main build on £124m Essex station

Contractor lands main contract after successful start on enabling works package
7 months ago

GMI lands latest £42m phase of lab cluster

Citylabs life sciences complex in Manchester continues to grow
7 months ago

Green light for Canada Water commercial scheme

Twin-tower scheme will offer "a new type of office for London"
7 months ago

Contractor services