Salford council has named outsourcing firm Capita as its preferred partner for a £250m regeneration project.

Under the deal, to be signed later this year, Capita and Salford will set up a joint venture company, as yet unnamed.

It will provide services including architectural work on housing refurbishments, highways maintenance, landscape design and planning services.

Salford has also named Morrison Construction as preferred partner to do highways building work for the project.

The venture will also work for other groups and is expected to raise £250m over the 12-year contract. The money will be spent on infrastructure improvements.

About 420 council staff will work for the joint venture but will remain employees of the authority.

A council spokesman said: “If major housing refurbishment contracts come along, the work with Capita will include things such as architecture needed as part of the refurbishment.

“The new company might design what the improved housing might look like, but it would probably be for someone else to do the building work. It depends on the nature of the job.

“Morrison would be a big player but there might be other firms involved as well.”

Salford council’s lead member for development services, Derek Antrobus, said: “One of the most important objectives for us is to transform the resources available for investment in our highways network. Improving the amount, quality and responsiveness of highways maintenance in the city will enable us to get other jobs done better and much sooner.

“That will save money and give better value for money, too.”

Rod Aldridge, executive chairman of Capita, said: “Together we have proposed innovative working arrangements that will ensure improved performance against key national and local indicators, meeting the council’s aims of continuously improving its service.”

Capita reported a 17% rise in turnover to £620m in the six months to 30 June. Turnover for the corresponding period of 2003 was £532m.

Source

Housing Today