Services firm Kier has agreed to an early end to a 10-year waste and recycling collection contract with four East Sussex councils.
The decision has been taken due to ‘significant’ change in the recycling market, according to the company.
The contract, which involves collections and beach cleansing services on behalf of Rother, Wealden, Eastbourne and Hastings borough councils was due to run until 2023, having commenced in April 2013.
Kier has agreed to an early end to its East Sussex contract
However, the councils and the contractor have announced today that the contract will instead terminate in June 2019, with the councils to decide later in 2017 how to replace the current service.
The announcement comes less than a year after the company set aside £35 million across the East Sussex contract and a similar contract with Cheshire West & Chester council after a reported drop in revenue from the sale of recyclable materials (see letsrecycle.com story).
At present Kier operates an alternate-weekly collection service for residual waste and commingled dry recyclables, with glass presented in a separate container. Residents can also receive an optional free collection service for garden waste.
Area
The contract covers nearly 200,000 households over a 550 square mile area, and was thought to be worth up to £120 million over its 10-year lifetime, when signed in December 2012 (see letsrecycle.com story).
The service was rolled out to residents in Eastbourne and Wealden in April 2013, followed by Hastings in July 2013 and Rother in April 2014.
Commenting on the announcement, Julian Tranter, managing director of Kier said: “Kier has been delivering waste, recycling, beach and street cleansing services as part of the East Sussex Joint Waste Partnership since 2013, delivering excellent service to circa 200,000 properties in the region. We’re proud of our satisfaction rate of 95% and our investment in local community projects.
“Following significant change in the recycling market Kier and East Sussex Joint Waste Partnership have mutually agreed to end the contract with effect from June 28, 2019. We continue to work closely together to provide a high quality service for residents and stability for our teams during the transition.”
Julian Tranter
Kier
“Following significant change in the recycling market Kier and East Sussex Joint Waste Partnership have mutually agreed to end the contract with effect from June 28, 2019. We continue to work closely together to provide a high quality service for residents and stability for our teams during the transition.”
Saving
A spokesman for the East Sussex Joint Waste Partnership, said: “The four councils save £3m a year through our partnership with Kier, and the average recycling rate across the partnership has increased from 37% to 40%, that’s an extra 1,500 tonnes or 130 lorry loads a year.
“Our focus as a partnership remains on the standard of services being provided for residents so we will continue working locally with Kier to achieve the best possible levels of service over the next two years. By the time the contract expires the councils will have saved circa £18m.”
The services will continue to be provided by Kier until the end of the contract in 2019.
Kier was named as the successful bidder for the ten-year contract in 2012, having seen off interest from a number of competitors (see letsrecycle.com story).
The post Kier agrees early end to East Sussex contract appeared first on letsrecycle.com.
Source: letsrecycle.com Waste Managment
