Birmingham City Council’s cabinet is to decide on terms to end its fraught highways contract with Amey at a meeting tomorrow.
Talks are under way between the council and contractor over a settlement to end the £2.7bn Private Finance Initiative (PFI) agreement, which was due to continue until 2035.
The terms of any agreement remain confidential, but Amey is reported to have offered £300m to buy itself out of the contract.
Officers have asked senior councillors to detail the 'criteria for a settlement to be acceptable’.
Officers wrote about Amey: ‘It has consistently sought to argue and obfuscate in the face of clear facts and commercial logic, rather than work positively to address its contractual failings and improve performance.’
The dispute ended with a series of court hearings, with the Court of Appeal finally ruling that Amey should pay Birmingham £54.95m plus interest.
Birmingham’s assistant director for highways, Kevin Hicks, wrote in the report to councillors: ‘The required investment has not taken place and is presently nearly four years beyond the required completion date.
'There is inconsistent and poor performance by the subcontractor and a reticence to improve.
‘Disappointingly, the council has been left with no option but to pursue matters through extensive dispute processes and litigation.’
The council is looking for a replacement operating subcontractor to be procured to replace Amey.
Amey has been approached for comment.
This story first appeared on our sister site The MJ.