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Balfour Beatty in pole position for Hereford road maintenance

Balfour Beatty Living Places has unseated Amey from its position as road maintenance contractor in Herefordshire after the county council made it preferred bidder for a major new privately financed public realm contract.

Herefordshire Council’s cabinet confirmed Balfour Beatty as preferred bidder for a 10 year contract initially worth around £20M a year.

It covers highways, parks, street cleaning and street lighting maintenance.

Amey remains on standby as reserve bidder, however, in case the council and Balfour Beatty fail to agree the terms for an injection of private finance into the county’s road network.

The council has Costain lined up as second reserve bidder.

Herefordshire’s new highways strategy is predicated on its
new contractor financing a significant proportion of an estimated £20M upfront investment to improve the condition
of the county’s roads and streets over an initial investment period.

The council hopes the use of private finance will help drive down the cost of ongoing maintenance during the remaining years of the 10 year contract.

“We’re delighted to be able to announce the shortlisted bidders and look forward to working with them to conclude the procurement process and award the final contract in July,” said Herefordshire’s director for places and communities Geoff Hughes.

“This procurement has sought commitments to ensure improvements, value for money and bring investment into Herefordshire’s highways network.

“We had a field of extremely strong bidders.

“I am confident that the resulting contract will achieve savings and help the council balance its budgets in the coming years.”

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