AN inquiry is being ordered into Kirklees Council's schools contract with troubled firm Jarvis.
A meeting of the full council was told that lessons must be learned from what happened.
A new investment company is taking over the multi- million-pound contract to maintain schools after Jarvis ran up huge debts.
The £50m deal to refurbish and maintain 19 schools was the council's first involvement in a Private Finance Initiative scheme.
Clr John Smithson, the council's deputy leader, said: "Jarvis got their price spectacularly wrong and had to put in some £20m to £30m of their own money.
"They did not live up to expectations in the delivery of the contract."
Town hall scrutiny chairman Clr Andrew Palfreeman will be asked to set up the inquiry.
Council leader Clr Kath Pinnock said: "We have got to have a detailed and objective inquiry into the contract.
"There are lessons that the council will want to learn."
Tory group leader Clr Robert Light said: "We have got to come out of the experience the wiser for it."
Investment company Secondary Market Infrastructure Fund is taking over Jarvis's shares in the contract.
It is likely to appoint cost consultants Turner and Townsend as its agent.
