Gloucestershire pilots HMEP’s standard contracts

Gloucestershire County Council is to pilot a suite of standard contracts drawn up by the Highways Maintenance Efficiency Programme.

The HMEP hopes to encourage local authorities who are about to procure new maintenance contracts to use the new standard contract suite. Developed by the Collaborative Working Centre (CWC), it is expected to save £100,000 in the cost of developing bespoke contracts alone.

The suite includes what Joe Dowling, deputy chief executive of the CWC, described as “best practice  mechanisms” designed to save local highway authorities more money, in addition to the  procurement savings.

These mechanisms include: the integration of the client and contractor teams; collaborative engagement with the supply chain; incentives for providers to make savings, such as target costs; and joint risk-sharing to tackle the costs associated with making the  providers responsible for risks entailed in maintaining the highways asset.

 Gloucestershire will not use an integrated public/private team as championed by the Highways Term Maintenance Association, having decided to abandon its use of this last year (LTT 14 Sept 12).

A spokesman for Gloucestershire was unable to say which parts of the contract it will be using and what this will save. The county council said it will have a better idea once the five firms it has invited to bid have submitted their prices.

The HMEP also wants to bring down contractors’ bidding costs through greater standardisation of what clients ask for, but this will depend upon the new contract being widely adopted.

Herefordshire, Leicestershire and Worcestershire are also considering using the contract, which the CWC developed with support from consultants Bevan Brittan and URS.

The consultant identified the NEC3 contract as best practice but found 27% of authorities do not use it.

The HMEP contract will be discussed at the Future of Highways Delivery event on 14 March. For more information: www.highwaysdelivery.co.uk