Balfour Beatty, the global infrastructure Group, has been selected as preferred bidder to maintain Suffolk's highways in a contract worth £200 million over five years, with the possibility of an extension to 10 years.

The decision for awarding the contract remains subject to formal legal procedures.

If approved, it will mean that Balfour Beatty Living Places will be responsible for the design and implementation of highway maintenance and improvement works, winter gritting, street lighting, traffic signals and bridge works throughout the county.

The council said the procurement process identified Balfour Beatty as the contractor best placed to meet their needs and deliver high quality service to Suffolk residents and visitors.

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In addition, Balfour Beatty will improve the availability of information about work on the highway, achieve savings of £2 million in 2013-14, improve Suffolk's environmental performance and contribute to the local economy through the use of local companies, commitment to apprenticeships and action to raise skill levels. If approved, approximately 200 Suffolk County Council and Ipswich Borough Council staff will be transferred, under TUPE rules. The new arrangement will come into effect on 1 April 2013.

Ian Tyler, CEO, said: "We are delighted to be chosen preferred bidder by Suffolk County Council for the highways maintenance contract. Once again Balfour Beatty Living Places has shown that it can deliver a high quality service to local authorities at a price that is right for the taxpayer.

"As well as continuing to provide excellent highway services, we will also be concentrating on supporting the local economy through opportunities for local people, especially young people, offering apprenticeships and enhancing skills. We will also be employing local supply chain within the county."

(CD)