Interim Highway Services - Birmingham

Kier Transportation Limited ("Kier") currently provide interim highways maintenance and associated operational services across the Birmingham highways network (the "Services") through an Interim Services Contract ("ISC") with Birmingham City Council's ("the Authority") subcontractor, Birmingham Highways Limited ("BHL"). The ISC will novate from BHL to the Authority just before it is currently due to expire on 31 July 2026.

The ISC was originally procured in accordance with the Public Contracts Regulations 2015. Following the Department for Transport's recent decision to withdraw its support for the continued funding of the Authority's highways PFI project, the Authority will procure an alternative long-term solution to replace this project. To enable the procurement of this alternative solution, the Authority requires the continued provision of the Services on an interim basis and therefore proposes to enter into a variation agreement to extend the ISC, such that it will expire on 31 July 2028 (or on 30 April 2029 if the Authority exercises an option to extend the ISC set out in the variation agreement). The variation agreement will therefore ensure the continued uninterrupted delivery of critical public services and the continued safety of the public in accordance with the Authority's statutory duties.