Skanska, global project development and construction company, has signed a seven-year contract with the Somerset County Council, in south west England for maintaining highways in that region.

The total value over the course of the contract will be £175m.

The company further added that the first two years of revenue £50m will be included in order bookings for Skanska UK in the first quarter of this year.

"Somerset County Council is reported to have become the first local authorities in the UK to outsource highways maintenance."

As per the terms of the contract, Skanska will be responsible for carrying out a wide range of works including structural and routine maintenance, winter and emergency services and maintenance design.

With this new agreement with Skanska, Somerset County Council is reported to have become the first local authorities in the UK to outsource highways maintenance.

For Skanska, it is the longest-running highways maintenance partnership in the UK, starting in 1996. The previous contract commenced in 2010, and this is the fourth term for its team.

The highway maintenance contract is slated to begin from 1 April this year and will expire on 31 March 2024. There is also a scope to extend this contract for further three years.

Skanska has been active in building and civil construction, utilities and building services, as well as facilities management and commercial development. It has a workforce of approximately 5,500 employees.