Better journeys ahead with groundbreaking contract awards

7 November 2018 13:28 - BAM Nuttall Ltd
Better journeys ahead with groundbreaking contract awards

(Press release Highways England:) London, 7 November 2018 - We've launched a new era for road building with groundbreaking multi-billion pound contracts encouraging better planned roadworks and more reliable journeys.

We’ve announced deals with 13 supply chain partners to collaborate regionally to carry out up to £8.7 billion 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 our 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.

Our 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 us. They will develop, design and construct highway projects across England from 2019 through to 2024.

Until now, we’ve 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 and 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 and East - £350m - two partners: John Graham Construction Ltd; and Volker Fitzpatrick Ltd
  • Lot 3 – North West, North East, Yorkshire and 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 and 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 (lots1 to 3) and over £100m (lots 4 to 8).