North Midland will now start construction this summer on the new Water treatment plant at Frankley for Severn Trent Water in a joint venture with Doosan Enpure Limited.

The plant is part of the Birmingham Resilience Project and will take three years to build.

The Enquirer revealed in April that Severn Trent Water had parted company with its preferred contractors on the job.

The Interserve/Kier joint venture agreement was terminated following a six month Early Contractor Involvement period.

The Enquirer understands that both sides were unable to agree a price with the original contractors viewing a realistic build price at around the £115m-£130m mark.

North Midland said the deal was “worth in excess of £100m” and will now mean results for the full year to December 2017 are ahead of management expectations.

John Homer, Chief Executive of North Midland, said: “This is a fantastic flagship project to be awarded with one of our key customers and is a testament to the specialist capabilities that our group have developed”.