Amey is involved in a long-running legal dispute with the council over the quality of works across the city.

Earlier this year the Appeal Court overturned a previous ruling in favour of the contractor.

Unveiling its latest quarterly results Ferrovial said it was setting aside £208m in provisions for “possible losses on Amey’s contract with Birmingham City Council.”

The provision pushed Ferrovial into a £141m loss for the first quarter of the year.