AMEY has pipped Associated Holdings and Morrison to a £68 million, 10-year deal to take over highways work for North Lanarkshire Council in Scotland.
The deal will be let under the best value initiative and signed within two months.
The firm will form a company with the council's Direct Labour Organisation (DLO), which will be able to bid for contracts let by other Scottish councils.
An Amey source said: 'The DLO is not allowed to bid for work for other councils on its own, but this new company will be able to.'
Amey will own two-thirds of the firm, with the remaining share held by the council.
The company will employ about 20 staff, including workers from the DLO's highways department. No redundancies are expected.