Tony Jilesen, a director of Taumarunui roading contracting firm Jilesen Contractors, said the council decision was "great news" for his company and others who had been awarded contracts.
Mr Jilesen said the contract gave his company some surety for the next few years and would probably mean more staff would have to be taken on as a result.
"We've got 20 staff at present but it could mean we look to take on another 10," he told the Chronicle.
He said council's decision to break up the overall roading contract gave companies like his the opportunity to tender successfully.
"Taking on the whole contract would be too much for us but this decision has changed that."
Mr Jilesen said it was something his company was always hoping council would do.
"The good thing is we've worked with most of the others involved in the contracts, people like JJ Walters and Emmetts, so council has got all the good guys together."
He said the contractors had not actively lobbied council to make a change.
"But they've seen the work we've done for them before now, seen what we're capable of and have been very happy with it," he said.
Other companies involved in the contract included tarsealing contractors JJ Walters (Marton) and Wanganui firm Emmetts which specialises in the bridge building. The three other companies are Downer, Mulch and Mow and Agspec. Together they will be responsible for nine separate contracts covering all aspects of Ruapehu's land transport network.
For the past six months the council's land transport team has been involved in an open market tender to decide who would provide the services.
Mr Furner said 32 cents of every rate dollar is spent on land transport in the district and the new contract model would give council more flexibility of work while reducing costs.
"With the recent funding assistance rate (FAR) review the need for cost effective and efficient services is more critical than ever," he said. The new contracts are expected to come into effect from October 1.
