Support services firm Carillion has secured a massive contract with Oxfordshire County Council, designed to save the local authority over half a million pounds a year.
The 10-year deal to provide property and facilities management could be worth up to £700m to Carillion.
It is the first time that the council has grouped all of its property services into one contract, the firm said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
It added that this was the first local authority contract of this kind in the UK and would save the council at least £550,000 a year.
However, the company was quick to say quality would not be sacrificed.
"While contracted savings form the foundation of the solution, there is a strong commitment to improve quality to all service users by transforming the structure of service delivery and developing the skills of the people on the frontline of service delivery," it said.
Carillion will earn £500m from the provision of property and facilities management services.
A framework agreement has also been put in place through which other local councils and bodies within Oxfordshire can procure services that could increase Carillion's revenue by an additional £200m over the 10-year contract period, the firm said.
-
Will the Bitcoin price hit $100,000?With Bitcoin prices trading just below $100,000, we explore whether the cryptocurrency can hit the milestone.
-
Inheritance tax receipts jump 11% even before Autumn Budget overhaulOfficial figures show inheritance tax receipts are rising even before the chancellor’s changes to reliefs
