Speedy Hire, the U.K.’s largest tool and equipment rental business, last week secured a three-year contract to continue supplying tools and equipment to Simons Construction, one of the U.K.’s leading privately owned construction companies. The contract is worth £1 million (about U.S. $1.48 million) per year and will include lifting, power generation, surveying equipment and temporary accommodation.

Under the terms of the deal, Speedy will act as sole agent for general supplying of rental equipment. Speedy will service the contract from a dedicated hire desk staffed within Simons’ Lincoln headquarters. This will enable the contractor’s personnel to call one telephone number to access ordering, administration, management information and payments for tools and equipment to be supplied from Speedy Hire’s network of more than 450 branches.

Speedy will also provide reports that monitor delivery and collection performance, equipment mix, breakdown response and spend analysis.

“We have chosen Speedy Hire for its national coverage, product portfolio and because they offer a complete solution,” said George Dickinson, supply chain development manager for Simons.

“This agreement demonstrates our commitment to working with our customers as an integrated supply chain partner, providing simple, efficient solutions for complex hire requirements and valuable management information,” said David Marshall, national accounts director for Speedy.

In other Speedy news, the company said it is cutting capital expenditures and forsaking dividend growth to deal with the construction downturn. The company reduced its fleet by 200 vehicles and laid off nearly 500 employees. Speedy has also closed 38 branches. It has cut its equipment replacement capex to about £22 million, a 60-percent reduction from the previous year.

The cost-cutting measures will cut full-year debt by about £45 million from the nearly £300 million it said it had in June.