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Thu July 18 2019

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Amey to pay £215m to quit Birmingham road contract

1 Jul Amey has agreed to pay Birmingham City Council £215m to terminate its highway maintenance contract.

The agreement will see Amey pay the council £160m this year, with the remaining £55m paid over the next six years. Amey will continue to provide services on an interim basis until at least 30th September 2019; the period may be extended until 31st March 2020.

The potential losses on the contract have been reported in the recent results of Amey and its parent company Ferrovial, with Ferrovial announcing in February that it had put Amey up for sale.

In 2010, Amey had signed a £2.7bn PFI contract to look after the council’s highways for 25 years but by 2014 the two parties had fallen out over the contract. The legal dispute reached the court of appeal last year, which found in favour of the council.

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