Balfour has been maintaining roads and open spaces for the council since 2013 when it signed a ten-year deal worth £200m employing 150 staff.
Last December it was awarded a £54m two-year extension to the Herefordshire Public Realm contract.
But the council has now decided the deal will end in 2026 “because the current contract does not allow the council to deliver its longer term requirements and aspirations.”
The council added: “A new contract will commence on 1 June 2026. This gives a two year period for a redesign, procurement and planned mobilisation of the new service. This work is underway and we will share further details of this as we progress.
“We are committed to continuing to work closely with BBLP for the duration of our contract to ensure high quality services for local residents, and a smooth transition to the new arrangements.”
A Balfour Beatty Living Places spokesperson said: “We are aware that Herefordshire County Council intend to retender the Herefordshire Public Realm contract to allow them to focus on a new operating model.
“We have enjoyed working alongside the Council over the last 11 year to successfully deliver public realm services to benefit local communities and residents across the County and remain committed to delivering these through the current contract until May 2026.”