Highways Agency to re-run bid races for areas 4 and 12

Aaron Morby 8 years ago
Share

The Highways Agency has told contractors that it is abandoning long-running bid races for asset support contracts in areas 4 and 12.

It is understood the bidding contractors and agency are poles apart in their estimates for the cost of the five-year maintenance deals.

The agency said a fresh invitation to tender will be issued early next year with clearer information about what needs to be delivered over the maintenance period.

Agency procurement chiefs decided to retender both areas after receiving bids that failed to meet spending expectations of around £825m for both areas.

The decision will put the award process back by about 18 months.

New contests will be run started by the first quarter of next year with more clearly scoped work outputs.

For the Area 4 in Kent and Sussex, worth an estimated £350m, incumbent joint venture Balfour Beatty Mott Macdonald will now have its contract extended.

Then it will be reinvited to tender along with rivals: Amey, Aone+, Atkins/Skanska, and Carillion.

Likewise for Area 12 in Yorkshire and North Lincolnshire, valued at around £475m, the present managing agent contractors Aone+ will have its contract extended before being reinvited to bid against Amey, Atkins/Skanska, Bam URS and Carillion.

Both areas were due to switch from Managing Agent Contractor to Asset Support Contracts by the autumn, although the procurement process has already slipped.

A Highways Agency spokesperson said: “The Agency is committed to ensuring that any contract we award is able to deliver against the backdrop of significant investment in England’s strategic road network.

“The decision to discontinue the existing procurement and issue a revised ITT has not been taken lightly; Asset Support Contracts are a key part of the Agency’s ability to successfully deliver its objectives.

“The Agency has decided to discontinue the procurement following stage 1 finance evaluation due to concern arising from elements of the pricing of the bids that in the view of the Agency will not support the delivery of the contract over the next five years.

“By deciding to return to ITT it will give all tenderers and the Agency the opportunity to align both contract documents and return tenders to meet the challenge of successfully delivering the future needs of the Agency and the successful delivery of maintenance and improvements required between now and 2020.“

The new ASC contracts are less prescriptive and focus on agency performance outcomes.

This allows contractors to assess what they require in order to deliver the service and focus on achieving outcomes, giving them freedom to innovate and to find more efficient ways of working.

 

Latest news

Civils boss banned for £200k false Covid loans

Yorkshire plant hirer and civils boss wrongly claimed bounce back loans for four firms
8 hours ago

Green light for Skanska £507m A428 dualling job

Construction is due to start at the end of this year on 16km dualling job
8 hours ago

W Stirland set for administration after nearly 100 years of trading

Family-run south coast firm has been building since 1928
22 hours ago

BAM UK delivers steady first half growth

UK profit up 16% to around £40m from revenue at £1bn
22 hours ago

Crane hirer M&M enters voluntary liquidation

Family-owned mobile crane ceases trading amid soaring costs and depressed hire rates
22 hours ago

£161m funding for Oxford Railway station revamp

Kier to deliver first project under the new Rail SPEED initiative
22 hours ago

VolkerFitzpatrick wins 240km wind farm cable job

Contractor lands connections deal from energy giant Ørsted
22 hours ago

Seddon Construction returns to profit

Plan to target more diverse work pays off as construction revenue rises 27% to £166m
22 hours ago

Faults found on giant HS2 green tunnel segments

"Quality issues" found on precast segments at HS2 site pioneering off-site construction
2 days ago

Balfour Beatty UK construction returns to profit

Group profits double to £82m in first six months after construction arm bounces back
2 days ago

Bidding starts for £4.5bn Southern Construction Framework

5th generation deal includes new £1m-£5m lot for south west
2 days ago

Persimmon expands output at off-site factories

Housing giant hits 31% profit margin with another £750m returned to shareholders
2 days ago

Modular specialist Algeco lands £31m MoD double

Construction to start this year on two new sets of army barracks
2 days ago

Hill gets go-ahead for North London estate rebuild

750 homes to be built at Douglas Bader Park estate in Colindale
3 days ago

Bid race for £210m Huddersfield town centre revamp

Kirklees Council's Cultural Heart scheme will be split into two major projects
3 days ago

£100m Darlington Station revamp enabling works start

Willmott Dixon set to deliver major station upgrade project
3 days ago

Demolition worker gets huge payout after losing leg

Compensation settlement will fund latest prosthetic limb technology for site victim
3 days ago

Plant hirer Vp abandons sale plan

Chairman Jeremy Pilkington says the plant hirer failed to find a suitable new owner.
3 days ago

Turner & Townsend on board for Sheffield Supertram upgrade

Consultant to help deliver programme over next seven years after £570m funding deal
3 days ago

Green light for new £33m Ipswich logistics park

Construction to start this October on latest Trebor Developments site
3 days ago

Piling starts on pioneering double composite HS2 viaduct

Wendover Dean Viaduct ‘double composite’ structure will halve carbon emissions
3 days ago

ISG pauses work on £300m gigaplant

Construction work rescheduled to reduce costs at giant car battery plant
4 days ago

Tory leadership battle delays bidding for HS2 phase 2a

Prequalification for £5.2bn-£7.2bn route to Crewe put back to September
4 days ago

Greswolde Construction goes under

Solihull contractor ceases trading with 24 jobs lost
6 days ago

Hanson on track for UK’s first net zero cement works

20 carbon capture projects shortlisted for £1bn funding
4 days ago

Plan in for Nottingham 967-room student scheme

Vita submits plan for second major purpose built student sh
4 days ago

Galliford Try gets go-ahead for next A47 dualling job

Early 2023 start for £200m section of A47 between North Tuddenham and Easton in Norfolk
4 days ago

Designs revealed for £1bn London Blackfriars tower blocks

Fosters design landmark green office skyscraper and two blocks of flats for Southwark site
7 days ago

Everton stadium job still on budget despite inflation

Club and Laing O'Rourke confident they can still build new ground for £500m
7 days ago

Construction output falls 1.4% halting 7-month growth spurt

Fresh output and orders figures confirm summer construction slowdown
7 days ago

Contractor services