As part of the winning bid, Skanska will be required to identify further savings, follow industry best-practice, support local communities, and reduce the number of potholes over the life of the contract. They will also be expected to keep 85% of supply chain spend in the local economy.
The latest renewal deal comes after Skanska was also picked by Devon County Council to deliver highways term maintenance late last year in a deal worth £245m.
Both new maintenance contracts will run from 1 April 2017 to 31 March 2024, with the option to extend for a further three years based on performance.
Simon White, Operations Director for Skanska, said: “We are delighted to continue our delivery of highways maintenance services for Somerset County Council. This long-term partnership enables us to deliver a responsive and high-quality highways maintenance service for communities and road users across Somerset.
“Using our locally based teams and suppliers, combined with innovative solutions from across our business, we will help maintain and improve roads across the county.”
Skanska was awarded the contract following an extensive procurement process which was carried out jointly with Devon and Plymouth Councils to ensure competitiveness and to put in place opportunities for future collaborative working.
Although the procurement process was joint, Devon County Council and Plymouth City Council will each have their own contract.
Plymouth City Council awarded its contract to South West Highways, a joint venture of Colas and Eurovia, formed in 1995 especially for the Devon County Council highways contract.
While Skanska takes over from South West Highways in Devon, it is continuing a long association with Somerset County Council dating back to 1996, making it one of the longest running partnerships in the UK.