Wiltshire Council and Balfour Beatty Living Places (BBLP) have announced they have mutually agreed to end their contract, saying it had become clear the arrangements were no longer appropriate for either party.
BBLP started the £150M five-year highway maintenance contract in June 2013. The contract will now end next March.
A joint statement said: “A phased transfer plan to minimise disruption to the service is now in place. A number of existing subcontractor agreements will transfer to Wiltshire Council for continuity in major resurfacing, ground maintenance and grass cutting services. The council will now seek a service provider to start a new contract on 1 April 2016.
“In the meantime Balfour Beatty will remain responsible for street lighting maintenance and highways activity such as temporary repair works, paths and cycle schemes, and will continue to work closely with Wiltshire Council.”