Atkins was selected as preferred bidder for the £7.6m a year contract last month but had already agreed the sale of its highway services business to Skanska back in February for £16m. Skanska was therefore increasingly involved in developing Atkins’ winning submission.
Peterborough City Council yesterday signed the contract with Skanska (as pictured below). The contract includes design services, street lighting and drainage cleansing as well as highway maintenance. There is also an option to extend the contract for up to a further 10 years.
The Peterborough highway services contract replaces four existing contracts and is expectd to save the council £750,000 a year.
Peterborough head of planning, transport and engineering Simon Machen said: "Skanska were the stand out candidates to take on this brand new contract in terms of quality and the price they could provide the service. This is a long-term partnership between the council and Skanska that will deliver essential services such as pot-hole repairs and traffic light maintenance.
“We are now working with Skanska to ensure a seamless transfer of operations between the existing contracts and the new contract, which will start on 1 October 2013.”
Skanska president and CEO Mike Putnam said: “As one of the UK’s greenest companies, we look forward to working in partnership with Peterborough City Council to help it achieve its environmental aspirations. We have extensive experience of building and maintaining highways, and are committed to working with the council to create local job opportunities and provide excellent customer service.”
Skanska already operates five other similar contracts taken over from Atkins, including the Cambridgeshire County Council’s highways contract.