Forest construction firm KW Bell has won a contract worth more than £3 million to build 133 new homes in Lydney.

The deal is a huge boost for the family-run business and the first contract it has ever won with the Kier Group, who have been tasked with building the homes off the A48 near Federal Mogul.

Managing director Pete Bell said the work was originally going to be split between two contractors.

He said: "We'd never worked with Kier before so it was seen as too much of a risk for them to go with just one company. The job was going to be split between one contractor who would lay the ground works and another who would build the homes.

"I went down for an interview with the management team in Bedfordshire which went very well.

"We were called several days later and they informed us that we'd won the contract for the whole job.

"They must have liked my aftershave!"

Pete said the contract would secure the jobs of KW Bell's 40 employees and would allow for a further 20 employees to be hired over the coming weeks.

The Kier Group will also be hiring five apprentices to work on the project.

"In fishing terms this was a bit like landing a whale," said Pete.

"It has come on the back of us coming in second place for six major tender bids which were worth around £15 million in total. It was a very difficult time but to go from that to landing a project of this size on our doorstep is like manna from heaven.

"We've got great faith in the people that work for us and we've fought off some serious competition to be where we are now."

Pete said that the project had the potential to keep the company busy for up to four years.

Kier Group spokeswoman Louise Stride: "Kier Partnership Homes has chosen local contractor KW Bell to carry out the groundwork contract on this prestigious development due to the company's proven track record and its ability to meet the stringent programme and budget."