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Construction and civil engineering company Veidekke has secured four new contracts for the maintenance of national and county roads in Norway.
These contracts last five years with possible extension options. The total value of the four deals amounts to NKr1.61bn ($151.65m) excluding VAT.
The clients include Vestfold Telemark County Municipality, the Norwegian Public Roads Administration, Viken County Municipality and Møre og Romsdal County Municipality.
The contracts will become effective on 1 September.
Veidekke will be responsible for maintaining 11,100km of roads, generating annual revenues of approximately NKr1.7bn excluding VAT.
Under these contracts, Veidekke will offer a range of tasks aimed at ensuring safe and efficient traffic flow and extending the service life of the affected roads.
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By GlobalDataThis includes routine operational duties and minor maintenance tasks on the road network, encompassing pedestrian and cycle paths.
The company will carry out activities such as clearing, salting, tunnel and sign cleaning, landscape area maintenance, road and rest area cleaning, as well as providing emergency responses during accidents and severe weather conditions.
Veidekke Drift og Vedlikehold director Kjell Otto Bragstad said: “We are very pleased with the results in this year’s tender round, and especially proud to have won our largest contract to date of more than NKr800m with the Norwegian Public Roads Administration in tough competition with five other players.
“We are now looking forward to taking over responsibility for the new contracts in September. We will do what we can together with our clients to ensure that road users experience good and safe driving conditions both in summer and winter on our 24 contracts from Finnmark in the north to Agder in the south.
“We have won the contracts in the wake of good processes with thorough risk assessments that provide us with a good basis to carry out the required work while also ensuring a healthy economic situation in the operations.”
The first three contracts will be added to Veidekke’s order backlog for the first quarter of the year.
Meanwhile, the fourth contract will be included in Veidekke’s order backlog for the second quarter of this year.