Government cuts mean contracts re-tendered for savings

In an attempt to save half a million pounds, Peterborough City Council is putting contracts to carry out street cleaning and road maintenance out to tender, reports the Peterborough Telegraph.

Four organisations currently provide services on the council's behalf. But from August 1, 2013, the city council wants to bring all four areas of work together into one contract.

'These contracts will come to their natural end in July next year and we cannot simply extend them without ensuring we are providing services for the best possible price,' Councillor Peter Hiller, cabinet member for housing, neighbourhoods and planning for the city council, was quoted as saying at the beginning of October.

'At a time when we are receiving less money from government to run services we need to make sure every penny we spend is providing good value for money.

'Reducing the number of contracts has the potential to save the council in the region of £500,000 a year.

'It makes better financial sense to provide these essential services under one contract, thus reducing the cost of managing the contracts.'