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A local authority in Wales has announced it will terminate the joint venture it set up with a major construction firm to carry out repairs and maintenance of its housing stock after deciding to to bring the services back in-house.
Powys County Council and Kier will end their joint venture company, the Heart of Wales Property Services, in July next year at the end of the current five-year contract.
Heart of Wales Property Services was first set up in 2017 to provide services including housing and building maintenance, as well as a consultancy service for new projects.
The company employs nearly 150 staff who will be transferred back to the council when the transition takes place next year.
Rosemarie Harris, leader at Powys County Council, said: “Following a detailed review of the company, it has been agreed by both parties that a break clause in the contract will be implemented and all staff and services provided will be transferred back to the council.
“Some initial investment will be required to make the change, but we are confident it will provide long-term improvements which continue to support the local economy. We are grateful to Kier for their support and look forward to a seamless transfer.”
Mark Whittaker, managing director of Kier Places, said: “We are proud to have served the Powys community over the past four years, providing essential housing and building maintenance services, as well as supporting residents in response to the COVID-19 pandemic.
“Following a strategic review of our business, we have refined our areas of focus and geographical locations and have mutually agreed with the council to end our partnership at the end of this five-year term. We will continue to work collaboratively with the council through to July 2022, helping to transition the service and throughout this time we will be focused on maintaining the same level of service to residents, as well as providing stability to our staff and supply chain partners.”
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