A £20m contract for replacement heating systems in council houses across the Tees Valley may create jobs at contractor H&B Heating and Plumbing.

The Middlesbrough business has been awarded a partnership contract by Tristar Homes to replace and service heating systems in council houses in Stockton, Billingham and Thornaby.

The contract, which starts next month and runs until March 2009, will secure the jobs of 120 staff at H&B, but could also lead to the creation of further jobs.

Harry Butler, managing director of the family-run business, said: "We have been operating for 25 years, during which time we have installed well over 20,000 central heating systems in homes in the Tees Valley.

"The security which a five-year partnership offers a business like ours is tremendous.

"We have been expanding steadily over the past few years and developed a good, strong client base, and this new contract can only help us grow even stronger."

The contract win follows Tristar Homes' £100m partnership deal with four leading contractors who are implementing the company's ten-year investment programme to provide properties with new bathrooms, kitchens and windows.

David Vasey, head of business development at Tristar Homes, said: "We believed H&B Heating and Plumbing would provide our tenants with the peace of mind that they will provide value for money in terms of energy efficiency, quality after-sales and reliability."