Birmingham seeks highways firm to step in for Amey
Birmingham City Council is looking for a highways contractor to step in on a short term basis to maintain roads after its bust-up with Amey.
The council aims to find a full replacement for Amey but in the meantime is looking for an interim contractor to carry out maintenance work between April 2020 and June 2021.
The package is expected to be worth around £85m, including around £50m of capital works.
Amey will formally terminate its work on the Birmingham Highways PFI at the end of March next year.
A permanent 14-year replacement subcontract is intended to start in July 2021 but has not yet been procured and awarded.
Amey has finalised a deal to pay £215m to walk away from its troubled Birmingham highways maintenance PFI contract at the end of June.
Amey has been locked in a five-year legal battle with the council over performance on its £2.7bn PFI deal. This saw Amey Highways suffer serious losses.
The deal will allow Spanish owner Ferrovial to press-ahead with plans to sell its UK support services business Amey.
The council plans to hold a market engagement with contractors ahead of formally inviting tenders at the end of September.
More information is available from Michael Murray at Birmingham Highways.