Jarvis wins £300m varsity contract

JARVIS, the construction and maintenance group, has won its biggest non-rail industry assignment with a £300m contract to build and then look after 4,350 student bedrooms at Lancaster University.

Lancaster, a 1960s university which, while in Britain's top 20 of undergraduate institutions, has suffered from its students moaning about living in the middle of nowhere, has awarded a 25-year contract to Jarvis on the proviso that construction is completed by the end of 2006.

The deal means that Jarvis will earn £12m a year over the life of the contract, which could be extended to 34 years.

Jarvis, a major railways contractor and partner in the London Underground PFI, is expanding into the education and health accommodation management sectors.