Firm took over job from Amey last year
Kier has been handed a six month extension to the contract it took over from Amey to manage Birmingham’s roads and pavements last year.
The interim contract, which began last April, had been due to run out at the end of June but client Birmingham Highways Limited (BHL) has extended it until the end of December.
Amey had previously won a £2.3bn, 25-year PFI contract to manage Birmingham’s highways in 2010.
But two years ago it agreed a £300m deal with the council to finish the contract early after losing hundreds of millions on the job.
BHL, which is owned by investor Equitix, the Pensions Infrastructure Platform and the city council, are in the process of procuring a 14 year contract to look after Birmingham’s roads which will take it up to 2035 – the original date when Amey’s contract was due to end.