Three neighbouring West Midlands councils have joined together to sign up Balfour Beatty to a highways contract that it is hoped will bring joint savings of £1M a year.
Solihull Council, Coventry City Council and Warwickshire County Council have undergone a procurement process that sees them jointly employ the contractor Balfour Beatty for their highways work.
The contract will cover around 5,400km of roads, and create savings of £1M each year.
Councillor Ted Richards, cabinet member for transport and highways at Solihull Council, said: “This partnership demonstrates how, by working together, local authorities can achieve the best possible services for their residents and at the same time, bring in savings to the council taxpayer.”
Coventry will also benefit by the extra skills available in bridge maintenance outlined in their works programme.
Councillor Lindsley Harvard, cabinet member for city services at Coventry City Council, said: “It makes sense in the current climate for us to work together and, using our bulk buying power, to maximise on expenditure. Balfours will provide specialist and top-up services whilst working alongside our workforce.”
The agreement comes into effect in 2013, with the new contractor working from a base in each area.