Birmingham City Council has awarded Kier a new two-year interim highways maintenance contract starting on 1 August 2026, with the option to extend the agreement for an additional nine months until April 2029.
The extension ensures Kier will continue managing Birmingham’s road network while the council develops a long-term replacement for one of the UK’s largest Private Finance Initiative (PFI) highways maintenance programmes.
Kier has been responsible for maintaining the city’s highways since April 2020, taking over the service after the collapse of Amey’s £2.7 billion PFI contract.
The company was later named the preferred bidder for a redesigned long-term highways maintenance contract valued at approximately £600 million. However, the procurement process was delayed after the Department for Transport withdrew its support for continued PFI funding.
Although Birmingham City Council successfully challenged the funding decision through a Judicial Review in 2024, a permanent financial arrangement for the long-term contract has yet to be finalised.
The council said the interim contract extension is essential to ensure highway maintenance services continue without disruption while work progresses on securing a sustainable long-term replacement agreement.
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