Interim Highways Services - Birmingham
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Birmingham City Council has entered into a variation agreement with Kier Transportation Limited to extend the Interim Services Contract for highways maintenance and associated operational services across the Birmingham network. Originally procured under the Public Contracts Regulations 2015 and novated from Birmingham Highways Limited to the Council on July 31, 2026, the contract was extended via a direct award to ensure the uninterrupted delivery of critical public services and public safety. This action follows the Department for Transport's decision to withdraw funding for the city's highways PFI project, necessitating an interim solution while the Council procures a long-term alternative. The extended agreement, valued at 120 million pounds excluding VAT, is set to expire on July 31, 2028, with an optional extension available until April 30, 2029. The contractual framework includes a supplemental deed involving Kier Group plc and detailed provisions for the administration and settlement of third-party and insurance recovery claims. These claims are managed through a structured matrix based on monetary thresholds, specifically categorizing claims up to 15,000 pounds, between 15,000 and 50,000 pounds, and those exceeding 50,000 pounds.
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