The West London tri-borough has awarded a ten-year outsourced facilities management deal worth more than £150m to contractors Amey.
Hammersmith and Fulham LBC, Kensington and Chelsea RLBC and Westminster City Council hope the major deal - which combines facilities management services across nearly 2,000 buildings comprising 1.3 million square feet – could strip costs by a third and deliver annual efficiency savings of more than £2m annually to each of the boroughs.
Building security and maintenance, catering, cleaning environmental management, landscaping and reception services are packaged together in the contract and TUPE regulations will apply for facilities management staff working within the tri-borough.
The contract forms part of a series of wider tri-borough partnerships, including shared arrangements for children's services, adult social care and library provision, which are expected to result in £40m savings by 2015/16.
Cllr Nicholas Paget-Brown, leader of the Kensington and Chelsea RLBC said: ‘By sharing facilities management across the three councils we will be able to save money, protect front line services and keep taxes low during a time of unprecedented pressure on local government finances.
‘Through our tri-borough working we are proving to residents and other local authorities that this approach works and provides even better services.'
Mel Ewell, chief executive of Amey, said: ‘Working collaboratively with the councils will bring together service delivery expertise from the public and private sector, helping us to achieve their vision of enhanced services and greater efficiencies.
‘We look forward to delivering our commitments to the three councils as well as to the local community through employment and skills development.'