Skanska is in line for a highways term maintenance contract with Devon County Council after the authority’s cabinet agreed recommendations from officers.
The contract, which is still subject to usual council procedures and a standstill period, will run from 1 April 2017 to 31 March 2024 with the option of a three-year extension.
A lonely road on rolling hills in Dartmoor, Devon
Skanska beat the incumbent South West Highways Ltd to the recommendation of officers. However Devon worked jointly with Plymouth City Council and Somerset County Council in developing the new contract, with companies invited to tender for any and all three contracts.
On 13 September, Plymouth appointed South West Highways Ltd as its new highway maintenance contractor, subject to the same call-in and statutory standstill period.
Somerset is expected to announce its decision in due course.
In a statement, Devon CC said: ‘It is anticipated that a large number of current South West Highways employees will be eligible to transfer to Skanska Construction UK Ltd, under legislation to protect workers when work passes to a new contractor.’
Cllr Stuart Hughes, Devon's cabinet member for highway management, said: ‘This is a very significant contract for the county council and we believe we have secured the best solution, with a focus on price and quality.
‘We want to ensure the new contract provides value for money as well as providing a good service to Devon’s communities and users of our 8,000 mile highway network.’
As part of its successful bid, Skanska included a range of initiatives to tackle potholes, as well job creation plans in Devon, the introduction of an efficiency and performance manager, an affordability review every three years to target investment, and improved communications.