Four claim lucrative London roads deals worth up to £2.6bn
London highways contracts potentially worth £2.6 billion have been awarded to four firms, with Balfour Beatty, Costain and Skanska among those to miss out.
Transport for London and London boroughs have awarded four new area-based joint highways contracts, which will be worth up to £1.2bn during the next eight years and will apply to all new TfL Road Network highway contracts from April 2013.
The winners are CVU – a joint venture between Colas, VolkerHighways and URS, a Conway Aecom JV, EnterpriseMouchel and Ringway Jacobs.
Ten bidders were shortlisted for the works in February but the following top firms have missed out on the lucrative work: Amey, Balfour Beatty Living Places, MGWSP (May Gurney/WSP), Skanska Construction UK/ Project Centre, Costain-J Murphy & Sons-Capita Symonds and a Bam Nuttall-Hyder Consulting JV.
Up to 12 London boroughs are expected to utilise these contracts for a range of maintenance services from April 2013.
More contracts are expected to be delivered through this framework as more boroughs’ individual contracts come up to renewal and TfL funds more major borough road schemes.
The total value of the contracts could reach around £2.6bn.
The winners are:
CVU (a joint venture between Colas, VolkerHighways and URS) – central area, covering roads within Camden, City of London, Southwark, Tower Hamlets, Hackney, Lambeth, Wandsworth, Hammersmith & Fulham, Royal Borough of Kensington & Chelsea, Islington and Westminster.
Ringway Jacobs – north-east area, covering roads within Havering, Barking & Dagenham, Redbridge, Newham, Waltham Forest, Haringey and Enfield.
Conway Aecom JV – north-west area, covering roads within Hounslow, Hillingdon, Ealing, Brent, Harrow and Barnet.
EnterpriseMouchel – south area, covering roads within Bexley, Greenwich, Lewisham, Bromley, Croydon, Sutton, Merton, Royal Borough of Kingston-upon-Thames and Richmond-upon-Thames.
TfL said the frameworks could save up to £450 million during the next eight years, helping to drive through more than £2bn of investment in road infrastructure.
The savings are expected to be achieved by avoiding expensive tendering costs and through better working practices, co-ordinated working and better use of resources, plant and fleet.
TfL has also written into the Local Implementation Plan guidance that boroughs will be expected to use the new arrangements where they represent better value than existing arrangements.
The new contract frameworks were developed jointly by TfL and the London boroughs and will cover both road maintenance and the design and construction of new schemes.
For the first time, the frameworks can apply to all roads across London. Until now, highways works have been carried out by a large range of contractors.
The frameworks cover 23 discrete services, including lighting, winter maintenance and safety inspections, meaning clients do not need to take the whole range of services and can choose which elements will deliver the greatest benefits.
FM Conway and Aecom announced they were formalising their JV to win highways work in March and have been rewarded with a lucrative long-term deal.
The winning contractors will be required to pay the London Living Wage and help tackle any skill gaps within local workforces to further help drive the capital’s economy.
All contractors will be required to join TfL’s Fleet Operator Recognition Scheme and all vehicles exceeding 3,500 kg (including those used by subcontractors) will be required to have sideguards, close proximity sensors and prominent signage to warn cyclists about the dangers of passing on the inside of the vehicle.
The contractors will also be required to ensure that their vehicle fleet meets European standards for emission standards and regularly demonstrate how they are working to reduce the impact of their works on the environment.
Reaction:
TfL director of roads Dana Skelley said: “These new contracts will allow us to further deliver this work in an efficient manner through joined up working with other London highway authorities, ensuring greater value for money and delivering a better road network for all.”
Chair of London Councils’ Transport and Environment Committee Catherine West said: “The London Highways Alliance Contract will mean better roads for Londoners at a lower cost.”