Highways England with multi-billion pound contract awards

Wednesday, November 7, 2018 - 09:53
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Highway EnglandHighways England launched a new era for road building today (7 November 2018) as it announced ground-breaking multi-billion pound contracts encouraging better planned roadworks and more reliable journeys.

The company announced deals with 13 supply chain partners to collaborate regionally to carry out up to £8.7 billion worth of work on England’s motorways and major A roads.

The deals have been set up using a new industry-leading approach, the Routes to Market Regional Delivery Partnership, which incentivises companies to improve safety and journeys on Highways England roads. It contains incentives for results which include:

  • Shorter duration and more accurate management of roadworks to help drivers better plan their journeys and experience predictable journey times
  • Buying more efficiently and buying locally – using the capability of a region to benefit the region
  • Encouraging innovation, for example lighting and signs designed to need less maintenance, reducing disruption and improving road worker safety
  • Reduced road noise and increased environmental benefits

Highways England Chief Executive, Jim O’Sullivan said: “Routes to Market represents a fundamental change in the way we deliver road projects.  It will be performance rather than price based, focusing on building the right projects with the best outcomes for road users and the communities we serve.

“It demands a major step up in our supply chain to embrace innovation and team work and in their ability to deliver value.”

The 13 companies – known as Delivery Integration Partners – will be part of the Regional Delivery Partnership working with Highways England. They will develop, design and construct highway projects across England from 2019 through to 2024.

Until now, Highways England has procured work on a scheme by scheme basis. This new approach provides a secure pipeline of work, instilling confidence to invest in skills and employment. Driving value for money, innovation and delivery certainty, the Regional Delivery Partnership model has been designed to start a long overdue transformation within the infrastructure construction sector.

The value of work allocated across the 13 companies is as follows – the values mentioned are shared between suppliers on the lot over a six year period (includes RIS1 budget and RIS2 estimate):

Lot 1 – South West & Midlands – £200m – two partners: Geoffrey Osborne Ltd; and Griffiths / Farrans Joint Venture (Alun Griffiths (Construction) Ltd and Northstone (NI) Limited trading as Farrans Construction)

Lot 2 – South East & East – £350m – two partners: John Graham Construction Ltd; and Volker Fitzpatrick Ltd

Lot 3 – North West, North East, Yorkshire & Humber – £200m –  two partners: Amey Sir Robert McAlpine Joint Venture (Amey OW Ltd and Sir Robert McAlpine Ltd); and North Midland Construction Plc

Lot 4 – South West – £800m – two partners: Galliford Try Infrastructure Ltd; and Taylor Woodrow

Lot 5 – Midlands – £1,250m – two partners: BAM Nuttall Ltd; and Skanska Construction UK Ltd

Lot 6 – South East – £1,100m – two partners: BAM Nuttall Ltd; and Balfour Beatty Civil Engineering Ltd

Lot 7 – East – £2,800m – three partners: Costain Ltd; Galliford Try Infrastructure Ltd; and Skanska Construction UK Ltd

Lot 8 – North West, North East, Yorkshire & Humber – £2,000m – three partners: Balfour Beatty Civil Engineering Ltd; Costain Ltd; and Kier Highways Ltd

The work is arranged into 18 Packages of schemes, awarded to Delivery Integration Partners in bands of up to £100m (lots 1 to 3) and over £100m (lots 4 to 8).

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