This public procurement record has 2 releases in its history.

Award

21 Jul 2026 at 08:44

Award

17 Jul 2026 at 15:48

Summary of the contracting process

Birmingham City Council has awarded a contract to Kier Construction Limited for interim highway services in Birmingham. The contract, identified under "068530-2026," involves maintaining and operational services on Birmingham's highways. This procurement, part of the works category, was directly awarded to ensure service continuity following the Department for Transport's funding withdrawal for the existing highways PFI project. The contract runs from 1st August 2026 until 31st July 2028, with an option to extend until 30th April 2029, subject to performance and funding. The contract was awarded on 21st July 2026, ensuring seamless service delivery and public safety throughout Birmingham (UKG region).

This tender presents significant opportunities for businesses specialising in highway maintenance and associated services, particularly those capable of managing large-scale projects. The direct award was due to urgency and the technical complexities of transitioning suppliers. As Birmingham City Council explores long-term solutions for its highways PFI project, there will be further opportunities for companies involved in public infrastructure and maintenance. The existing contract's scale and scope suggest that businesses with strong project management capabilities and experience in public authority dealings are particularly well-suited to benefit from this initiative.

How relevant is this notice?

Notice Title

Interim Highway Services - Birmingham

Notice Description

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.

Procurement Information

The Authority has determined that a change of supplier and immediate replacement of Kier as the incumber supplier would give rise to incompatibility, and such incompatibility would result in disproportionate technical difficulties in the operation and maintenance of the Service which would give rise to a material risk to service continuity. 2. Urgency and interim nature of the arrangement The need for the variation agreement to ensure the continuation of the Services currently delivered by Kier has arisen as a result of circumstances outside of the Authority's control, resulting from the Department of Transport's decision to withdraw its support for the continued funding for the Authority's highways PFI project. The Authority considers that the direct award is strictly necessary for reasons of extreme and unavoidable urgency to ensure continuity of a critical public service while it undertakes the steps required to develop and procure a longer-term solution and the continued safety of the public in accordance with the Authority's statutory duties. The Authority has determined that it would not be possible to run a competitive procurement process to procure a supplier which could ensure such continuity of service in the timeframes available. The proposed variation agreement is therefore intended to operate as a temporary measure pending the completion of a procurement process for a replacement solution to the Authority's highways PFI project. The Authority will shortly provide further information concerning the procurement of the replacement solution and the opportunities this will present to the market. 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 with an option to extend for up to a further 9 months to 30 April 2029 where funding remains available and performance is satisfactory. 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.

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-06ce46
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/068530-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK6 - Contract Award Notice
Procurement Type
Standard
Procurement Category
Works
Procurement Method
Direct
Procurement Method Details
Direct award
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

45 - Construction work


CPV Codes

45233139 - Highway maintenance work

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
£120,000,000 £100M-£1B
Contracts Value
Not specified

Notice Dates

Publication Date
21 Jul 20262 weeks ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
17 Jul 20262 weeks ago
Contract Period
31 Jul 2026 - 31 Jul 2028 2-3 years
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Active
Contracts Status
Not Specified

Contracting Authority (Buyer)

Main Buyer
BIRMINGHAM CITY COUNCIL
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
BIRMINGHAM
Postcode
B1 1BB
Post Town
Birmingham
Country
England

Major Region (ITL 1)
TLG West Midlands (England)
Basic Region (ITL 2)
TLG3 West Midlands
Small Region (ITL 3)
TLG31 Birmingham
Delivery Location
Not specified

Local Authority
Birmingham
Electoral Ward
Ladywood
Westminster Constituency
Birmingham Ladywood

Supplier Information

Number of Suppliers
2
Supplier Names

KIER CONSTRUCTION

KIER TRANSPORTATION

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

JSON Markdown

The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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