The four-year contract, with a possible two-year extension, is estimated to be worth around £20m per annum.

The contract is effective from April 2009 and includes a range of maintenance and improvement activities across approximately 80 to 150 projects each year. Covering British Waterways' 2,200 mile network in England, Wales and Scotland, the contract includes repairs to 200 year-old locks, bridges, aqueducts, weirs, reservoirs, tunnels, towpaths, embankments and cuttings.

While the major works contract excludes spend on waterways dredging, May Gurney is also likely to deliver a number of additional third party funded canal improvement projects on behalf of British Waterways and its partners.

Philip Fellowes-Prynne, chief executive at May Gurney, said: "We are delighted to have been awarded this contract with British Waterways. It demonstrates our success at building strong long-term customer relationships and cements our position as a leading provider of maintenance and improvement services to the public sector.

"This contract demonstrates our success at building strong long-term customer relationships"