Balfour Beatty has won a £245m highways maintenance contract covering three major councils in the Midlands - Coventry City Council, Solihull Metropolitan Borough Council and Warwickshire County Council.
The contract, which was first revealed by Transport Network, is one of several in the market at the moment that seek to maximise economies of scale by joing local authorities' procurement processes together.
The deal could be worth up to £350m to Balfour Beatty, with the contract valued at £245m for the first seven years and a potential three year extension in the gift of the council.
Under the contract, Balfour Beatty will deliver a variety of services to more than 5000km of roads, including winter maintenance across 2000km of roads and maintenance of over 55,000 street lights.
Leo Quinn, Balfour Beatty Group chief executive said: ‘We build long-term relationships with local authorities that add real value to communities. With a clear focus on the outcomes that matter to communities, we are helping local authorities to deliver better value for money.
‘This contract award is a real endorsement of the excellent service we have provided across Warwickshire since 2011 and gives us the opportunity to build upon our successes.’
Cllr Peter Butlin, Warwickshire County Council’s portfolio holder for transport and planning, said: ‘By approving a highways contract as a three-way partnership, we are able to provide improved value for money to the taxpayer as well as better service resilience and flexibility. As neighbours, it makes perfect logic for Warwickshire, Coventry and Solihull to link up and provide a more efficient service through cooperative working.’
Cllr Ted Richards, Solihull Council’s cabinet member for transport and highways, said: ‘I’m pleased that we will see the benefits of the three local authorities working together with Balfour Beatty to deliver on our shared objectives, provide strong management of our collective assets and a more efficient service for our residents.’
