A COUNCIL has signed a deal that will provide two construction firms with £140m of work.

Durham County Council, Balfour Beatty and Wates have forged seven-year strategic alliances, thought to be the first of their kind in the country.

For years, councils have had to go out to tender for individual projects but this is being changed under the Government's best value regime.

Balfour Beatty will work on civil engineering and environment schemes such as highways, bridges and road maintenance.

Wates will build schools and libraries and carry out building maintenance.

The council's deputy leader Councillor Don Ross said: "Each partner will bring together quality local firms to work with the council's in-house teams.

"It is an arrangement which will see continuous improvement in performance, reduced costs and the elimination of waste.

"Our new approach is based on the Egan Report, Rethinking Construction, which aims to raise the standards of construction in the UK through partnering, leaner working and a focus on the customer."

Wates and Balfour Beatty were selected following a rigorous and intensive tender process.

Their performance will be monitored against tough targets - including faster completion times, defect-free hand-over, and increased customer satisfaction.