The eight-year contract will be initially worth up to £600m, but has the potential to be extended to West Midlands area under a framework agreement worth up to £1.5bn over the term.

The Birmingham Energy Savers scheme will deliver energy services as part of the Green Deal and will also include schools and other council properties within its scope.

The scheme will give households affordable ways of improving their properties by fitting energy efficiency measures, such as insulation and new boilers.

Carillion has committed to create and sustain at least 360 jobs and train 600 people from priority groups for jobs.

Now that the contract has been finalised, Carillion is seeking to hire locally-based energy assessors, who will evaluate properties and provide advice on the energy efficiency improvements they require.

Recruitment events are being held in local community centres to deliver yet another boost to the local economy.

Carillion’s Chief Executive Richard Howson, said: “Birmingham Energy Savers is a genuinely ground-breaking scheme and we are delighted to have agreed this contract with Birmingham City Council.

“We believe that in order to reach its full potential, the programme must fully engage with the community and this is why the next stage will focus on recruiting local people and businesses to deliver the scheme.

“By engaging with our supply chain partners, particularly local small and medium-sized businesses and social enterprises, we can deliver service solutions that create jobs and offer training and development opportunities to support the economic and social development of the communities in which we operate.”

Cllr James McKay, Cabinet Member for a Green, Safe and Smart city at Birmingham City Council, added: “The scheme will reduce energy bills for citizens by up to £300 per year – taking up to 40,000 people out of fuel poverty by 2015 – create jobs in the technology supply chain and ensure that there are less carbon emissions from the city.”