Southampton City Council decided to award a new five-year contract to Balfour Beatty Living Places last year.
While the contract came into effect from October 1, no public announcement was made by the council or Balfour Beatty.
It is understood a press release was not published in a timely manner due to an administrative issue. This was only addressed in late-March, after the council was approached by the Local Democracy Reporting Service.
The fresh procurement with Balfour Beatty will see its partnership with the council reach 20 years when the contract’s term ends in 2030.
A Southampton City Council spokesman said: “In March 2024, cabinet and full council delegated authority to the executive directors of place (since re-named growth and prosperity) and enabling services and the s151 officer to appoint a new highways service partner through a procurement process or other route to market.
“The decision was taken last year to make the award of a new contract through the SCAPE framework.
“Balfour Beatty’s performance, which was constantly monitored between 2010 and 2025 as part of the previous contract, was reviewed as a part of this process.”
Liberal democrat group leader Cllr Richard Blackman, who is chairman of the overview and scrutiny management committee, said he remained concerned about the process which led to the highways contract extension.
He said he insisted on a discussion at the committee’s meeting in February last year to review the process, however, this took place in closed session with press and public excluded.
Cllr Blackman said: “The desire to have oversight of the procurement of our key contracts was outlined at the meeting and, to support greater transparency, a new approach to communicating key timelines for procurement activity in the future was agreed.
“I would have liked the scope of that discussion to have been wider than just the procurement process.
“I would like, for example, to have the information needed to assess whether the contract provides value for money.”
The Bassett ward representative said he asked a question on the level of expenditure on roads and pavements in the contract at full council in November but the response from the Labour administration was “not wholly clear”.
He added: “Looking ahead, and with the proposed increase in the highways budget from 2026/27, I think there is scope to shed some much-needed light on the contract, the process for the award of additional public funds, and whether the contract constitutes value for money.”
Conservative group leader Peter Baillie said it was important the council had control over the budget and the work that is done on the roads.
Cllr Baillie: “Extending Balfour seemed the most straightforward option, especially with the potential changes to local government coming up so I can understand why they did it.”
The contract with Balfour Beatty includes reactive and proactive roadworks, including improvements and winter services, as well as refurbishment of the Itchen Bridge and Above Bar Street.
Steve Helliwell, managing director of Balfour Beatty Living Places, said: “This award reflects our proven track record and shared ambition to build a greener, better-connected city through innovation and excellence in service delivery, leaving a positive and lasting legacy across the communities we serve.”
In Balfour Beatty’s press release, a council spokesperson said it secures best value for local people.