23/03/2016 - 10:06

Programmed wins big govt contract

23/03/2016 - 10:06

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Programmed Maintenance Services will provide infrastructure maintenance services to seven state government agencies under a contract potentially worth up to $1.5 billion.

Programmed managing director Chris Sutherland. Photo: Attila Csaszar

Programmed Maintenance Services will provide infrastructure maintenance services to seven state government agencies under a contract potentially worth up to $1.5 billion.

The Perth-based staffing, maintenance and facility management company announced today it had been named the successful bidder for the contract with the Western Australian government, which is expected to generate between $90 million and $120 million in annual revenue.

Commencing in July, Programmed will provide its services for an initial five-year term, with options for a further 10 years.

“The new contract model and expanded scope means that, in conjunction with delivering maintenance repairs and capital works programs, Programmed will provide strategic procurement and asset management services, optimising the WA government’s facilities whilst delivering savings and reducing costs,” Programmed said in a statement.

Managing director Christopher Sutherland said the contract would continue Programmed’s 18-year long relationship with the state government, with the contract more than doubling the annual value of services the company already provided to the government.

“The government has invested significantly in building and upgrading social infrastructure in recent years and we are honoured to be selected to maintain such important assets for the people of WA,” he said.

“This contract confirms the growing demand we are seeing for maintenance services, and further demonstrates Programmed’s ability to provide competitive solutions that add value to our customers in this market.”

The contract covers seven agencies - education, transport, corrective services, attorney general, culture & arts, fire & emergency services, and training.

Meanwhile, Programmed shareholders today approved two resolutions at a general meeting held in Perth.

A resolution provding for Skilled Group to financially assist the company to acquire all of the issued shares in Skilled was approved by 99 per cent of shareholders.

This was a final, technical step in completing the merger of the two companies.

An increase in the total remuneration payable to directors, from $850,000 to $1.35 million, was approved by 89 per cent of shareholders.

Programmed shares were 5.6 per cent higher to $1.51 each at 10am.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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