Ringway will take over maintenance of roads, street lights and pavements for five years in April, with a possible extension of a further two years.
Philip Whitehead, cabinet member for highways, said: “I believe this deal is the best one possible for the people of Wiltshire in terms of value for money, but most importantly quality.”
The contractor, which ran the contract in Wiltshire between 1999 and 2013, was appointed following a thorough tendering exercise which saw four companies assessed in terms of price and quality.
Balfour Beatty Living Places took on the five-year contract with Wiltshire Council in 2013 but relations between both sides became strained following a string of complaints about the contractor’s performance.
In September both sides mutually agreed to end the contract in March, more than two years before the scheduled end of the contract in June 2018.