City council to appoint provider to multi-million pound legal services contract advising on restructuring of major PFI agreement
Birmingham City Council has published a notice for a contract worth an estimated £4.1m for legal advice on the restructuring of the local authority’s Highway Maintenance and Management PFI (HMMPFI) contract.
The council entered into a 25-year PFI contract in June 2010 to provide highway maintenance and management services on its 2,500km highway network. The HMMPFI contract is with Birmingham Highways Ltd (BHL), which delivers the services through a subcontractor.
It is the primary means through which the council discharges its statutory duties to maintain public highways.
Birmingham is seeking to procure advisory services for the restructuring of the HMMPFI contract, “together with consequences that arise out of the restructuring of the contract”, the notice states.
The notice adds that the council is seeking advice on:
- Alternative positions should it not be possible to complete a restructuring of the contract;
- The council’s funding for highway maintenance and management services from HM Government;
- Mobilisation for longer-term highway maintenance and management services;
- Any litigation related to the contract or successor arrangements.
The contract will be awarded to one lead supplier. It is expected to begin in December 2022 and expire in June 2024.
The closing date for applications is 24 October.
Adam Carey