Troubled support services firm Interserve has secured a £227 million contract to provide facilities management services for the Department for Work and Pensions (DWP).

Despite its precarious financial situation, the new deal will see Interserve deliver mechanical, electrical and building maintenance across the DWP estate.

Features include cleaning, catering, waste disposal, removal and secure destruction of confidential waste services to over 700 buildings throughout the UK, covering over 1.3 million square metres of space.

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The contract will replace the DWP's existing Private Finance Initiative contract, which ends on 31 March next year.

Debbie White, chief executive at Interserve said: "Our goal is to deliver a seamless transition to providing facilities management services to the department. We understand the needs of the DWP to provide a safe, effective, compliant and accessible space for their employees and customers and we look forward to continuing to support the DWP in delivering a cost effective and efficient service."

In a trading statement on Thursday, Interserve revealed it was at risk of breaking its financial covenants with lending banks, with cost pressures hitting its construction and supports services divisions.

(LM/MH)