Councils unite in highway efficiency drive

19 July 2007
 
Ten East Midlands councils have joined forces with the Highways Agency to streamline the delivery of highways projects and drive through efficiency gains.

Led by Leicestershire County Council, the Midland Highways Alliance will focus on regional procurement and the delivery of highways maintenance and capital works through framework agreements. The MHA aims to reap efficiency gains of up to 10% on contracts, speed up procurement and deliver schemes to a higher standard.

The alliance also aims to share innovation and performance data across its members, and improve working practice throughout the supply chain. In its first year, projects worth around £50M are expected to be procured through the first of a number of regional frameworks. However, this is expected to increase up to £150M in subsequent years due to greater pressure to realise efficiency gains in the face of spending constraints.

The framework agreements will also be open to highways authorities in the West Midlands. Cllr Nicholas Rushton, Leicestershire’s cabinet member for highways and transportation, said: ‘We recognise the benefits of collaborative working, particularly in the procurement of major transport infrastructure projects. This will provide improved value for money and better solutions for highways services.’

Matthew Lugg, director of highways and transportation at Leicestershire County Council, said the alliance would deliver costs through supply chain integration and a reduction in duplication. It would also address the skills shortage by keeping jobs in the area, and bind contractors during the busy Olympics construction period in London. He said a number of schemes in Leicestershire would be carried out through the partnership, including park-and-ride sites and the Loughborough relief road.

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