Shropshire Council has selected Ringway Infrastructure Services to replace Enterprise as its new partner to maintain the roads and deliver street services across the county.
This new six-year contract, which was part of a pioneering shared contract procurement process with neighbouring Cheshire West and Chester Council, will start in April.
There is an option to extend the £240m, six-year contract for a further four years, subject to the contractor’s high performance, which would bring the total value across both regions to around £400m.
The shared arrangement will help save around £700,000 per year.
Councillor Simon Jones, Shropshire Council’s Cabinet member, said: “By working together with Cheshire West and Chester Council to share expertise and resources, this new contract presents us with a potential additional saving of around £700,000 per year between the two councils.
This is on top £600,000 saved by retendering the contract.
Brian Moss, Ringway’s regional director, said: “We are delighted to have won these contracts and are very much looking forward to working with Shropshire Council and Cheshire West and Chester Council to deliver a variety of highways and streetscene services.
He added: “We already have experience of working in similar collaborative arrangements with other councils and we will bring this experience to the region.”
The contract will cover all aspects of highways maintenance, highways improvements, gully emptying, grass cutting, bridges repair and maintenance, streetlighting maintenance and streetscene.
Staff will transfer to the new provider under TUPE regulations on their current terms and conditions of employment.