Highways Agency urges standard approach to contracts

14 June 2006

The variation in the type of contracts local highway authorities across England are using ‘can and should’ be standardised, to achieve demanding efficiency savings targets, the Highways Agency said this week.
The latest report on how England’s 149 local highway authorities can achieve Gershon review-inspired savings, while delivering the same or better services, calls for an end to ‘unnecessarily diverse specifications, a plethora of forms of contract, and unco-ordinated renewal dates’. A continuation of the current response to the agenda – which delivered £56M of efficiencies last financial year and an expected £53M this – was not an option. Councils should be prepared for tougher post-2008 targets than the current 2.5% annual savings, which it has been claimed would be ‘easy to fiddle’ (Surveyor, 20 October 2005).
The document, Achieving efficient delivery of local highways services, says the often-mentioned barrier to greater standardisation and collaborate working is the need for bespoke requirements, due to local geography, demography, and for policy reasons. While some of these issues were valid, ‘many relate to historic practices with little current relevance’.
A move to outcome-based specifications would allow more uniformity while still allowing local variations in construction materials.
Improved collaboration, particularly between adjacent authorities, and more joint-forward planning on works were urged. Savings of up to 10% could be secured, a scoping study for a stalled joint council/ Highways Agency maintenance contract in Southwest England showed.
The executive summary of the report, sent to councils this week, asks: ‘Local highway authorities must consider whether they are implementing real change or doing just enough.’
Steve Rowsell, HA director of procurement, said: ‘We understand the complexities of procurement. We hope the report will provide ideas to encourage change.’

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