Kier secures £120m extension to Birmingham highways contract

Kier has secured a £120m extension to continue maintaining Birmingham’s highways network, as Birmingham City Council works towards a long-term replacement for the city’s stalled roads PFI contract.

The council has directly awarded Kier a two-year interim contract from 1 August 2026, with the option to extend the agreement by a further nine months until April 2029.

Kier has been responsible for maintaining Birmingham’s roads since April 2020, when it took over following the collapse of Amey’s £2.7bn Private Finance Initiative (PFI) highways contract.

The contractor had previously been named preferred bidder for a restructured long-term highways contract worth around £600m, but the procurement stalled after the Department for Transport withdrew support for continued PFI funding.

Although Birmingham City Council successfully challenged that decision through a Judicial Review in 2024, a long-term funding solution has yet to be agreed.

The latest extension will ensure highway maintenance services continue uninterrupted while the council progresses procurement of a permanent replacement contract.