Balfour Beatty Living Places and the deal has now been confirmed, with a value of £200m over the full term.
The contract covers highways maintenance and improvement works, street lighting, street cleaning, as well as responsibility for public rights of way, and parks and open spaces. It will start on 1 September 2013.
Balfour Beatty takes over the contract from Amey, which has looked after Herefordshire's highways for the past 10 years.
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