Managing agent contracts start up

Exclusive by Carol Millett



The Highways Agency is to replace all but three of its 24 super agency maintenance contracts with Managing Agent Contractor (MAC) contracts, following extensive consultation with contractors and consultants.

MAC contracts, which will run for between five to seven years, will combine the managing agent and term maintenance contractor roles into a single operating company. The first of this new breed of term maintenance contracts will be advertised in the Official Journal of the European Communities on 7 June.

It will cover super agency area 8, which covers all major trunk roads and motorways north of the M25 to Leicestershire, including the M11, M1 and A1(M).

Only three of the existing 24 super agency contracts are being retendered as traditional super agency contracts. These are in area 5, which has been enlarged to include the maintenance of the whole of the M25 and in areas 3 and 6, which border the M25. The three contracts will be used as benchmarks against which the performance of the new MAC contracts will be measured. Expressions of interest must be returned by 19 May.

A senior Highways Agency official told CJ this week: "We have identified the MAC contract as the way forward. Area 8 will be a pathfinder contract, leading the way, rather than a pilot scheme. Contracts for areas 3, 5 and 6 will be used as real benchmarks with a tried-and-tested formula."

There will be greater emphasis on quality for both forms of contract, with tenders assessed on a ratio of 80% quality to 20% price. Performance standards will also be rigorous, with continuous improvement expected year-on-year.

Each MAC contract will be overseen by a Network Board comprising representatives from HA and the operating company. The board will have the power to make changes to the contract to enable innovation or greater efficiencies. It will also set and monitor performance standards and be responsible for delivering the overall key performance indicators that the Highways Agency has to meet in the area, for example, on accident levels and urban regeneration.