‘Big leap’ urged to hit highways targets

31 May 2006

Highway authorities are expected to make major changes in procurement practice if they are to meet their Gershon target of £190M in highways efficiency gains by the end of next year. But no examples of cost-saving joint procurement have yet materialised.
The Highways Agency's procurement manager for the South East, Mark Kumar, said it would be a ‘big leap’ for authorities to meet the 2007/08 target although they would be on course to reach this year’s target of £60M with the help of a new toolkit produced by the highways efficiency liason group.
Actual efficiency gains in the 2004-05 base year had been £27M and highway authorities were expected to confirm in July that this had risen to £36M in 2005/06.
But more significant changes would be needed in future such as a general switch to the modern NEC form of contract and joint procurement both by neighbouring authorities and between councils and the HA.
The agency – which is expected to deliver £250M in cashable savings for local roads procurement and £200M in ‘non-cashable’ savings from improvements in administration – now routinely discusses opportunities for joint procurement with highway authorities. ‘But it could be a couple of years or so before we can get anything on the ground,’ said Kumar. A proposed joint contracts pilot, coupling a North Yorkshire County Council bypass scheme with an HA upgrade of the A1, ran into procedural and funding problems (Surveyor, 23 February). A Department for Transport funding decision on the bypass is expected within the next few weeks.
Several authorities are discussing the possibility of shared term maintenance contracts with the HA but none has been announced.
The toolkit, released last week, gives guidance on how to measure and demonstrate efficiency gains together with good practice examples. It lists joint procurement as a potential area for gains, along with already widely adopted measures such as e-government, road recycling, and private finance contracts.
Recommended ‘quality cross-checks’ – to ensure that monetary savings are not at the expense of service quality – include measuring against local transport plan progress and best value indicators such as numbers of killed or seriously injured casualties and road and footway condition. ‘Cashable’ efficiencies are only deemed to have been secured where services are provided to at least the same level of quality.
Ministers have been eager to stress that the efficiencies drive is not about cuts.

Register now for full access

Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login

Sign In

‘Big leap’ urged to hit highways targets

order biaxin tablets

buying biaxin

ordering clarithromycin

Register now for full access

Login