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Warwickshire County Council has awarded a £100m, five-year highway maintenance contract to Balfour Beatty. The maintenance provider fought off competition from the council’s current provider, Carillion, whose contract ends in May next year.

Councillors approved the contract alongside Coventry City Council, which will use the provider to deliver planned highway and bridge works.

The councils said that there is also scope for other neighbouring local authorities to use the Warwickshire contract.

London-based Balfour Beatty will have the option to extend the five-year contract for a further four years subject to performance, said the council. If the extension is agreed, the contract will be worth up to £200m over nine years.

The contract covers the county’s planned and routine highway maintenance, street lighting, bridgeworks and other transport projects up to the value of £250,000.

Councillor Alan Cockburn, Warwickshire County Council’s Portfolio Holder for Environment and Economy, said: “I am delighted to announce Balfour Beatty as the new provider of the highways maintenance contract, which is a key frontline service to residents and businesses.

“I have been involved as a board member during a competitive and rigorous procurement process since September last year. At the end of this process we had five quality and price-competitive submissions.

“The close proximity of Coventry and Warwickshire means it is makes perfect sense to link up certain highway activities and offer a joined-up service to deliver better value for money.

“I believe collaborative working is essential in these financially testing times and I am confident that this new highways contract will provide both efficiency savings and a high reputation service across the region over the next five years.”