North Yorkshire County Council has chosen Ringway Infrastructure Services to carry out highways maintenance in a deal worth £25m per year.
The 10-year contract will start from April, when Balfour Beatty WorkPlace which has held the previous contract since 2002 is planned to hand over the job.
The majority of staff working for Balfour will transfer to Ringway as it assumes responsibility for all aspects of highway maintenance, highway improvement including gully emptying, grass cutting, bridge repair and street lighting maintenance.
The council will retain the right to reduce the deal to six years if the contractor’s performance does not meet expectations.
The works area includes the city of York and the Yorkshire and Humberside region.
County Councillor Gareth Dadd, Executive member for highways said: “The tender assessment has been thorough and the contract has been awarded to the company which submitted the best bid both in terms of price and quality. It will provide excellent value for money for the residents of North Yorkshire.”