HA wants quicker, better and cheaper DBFO road contracts

The Highways Agency (HA) is looking to knock a third off time spent bidding for its PFI work as it opens up its Improving DBFOs consultation document to the industry.

In the document, which requires written or online responses by the end of February, the Agency has submitted two proposals to reduce time, improve quality and "substantially reduce" bidding costs.

Both proposals include a two-stage tendering process. The first will see a construction contractor appointed to work through planning issues and design, after which a Special Purpose Vehicle (SPV) will be appointed to secure partners for maintenance, operation and finance to take over the contract.

Option two proposes that an SPV is appointed from the start. This SPV will be required to secure a construction, maintenance and operations team. Once planning issues have been finalised, a finance and competition partner will be appointed to secure funding.

The HA has already earmarked a major road scheme for the A1 Dishforth to Barton - which has a construction value of £220m - to trial the improved DBFO procedure.

A pre-information notice will be released later this month.

The HA's procurement director Steve Rowsell said: "The proposals will allow more scope for innovation and quality. A current DBFO contract takes two years to finalise; we want to become more streamlined."

Two further documents on introducing private finance (PF) into operation and maintenance contracts through the development of a PF managing agent contractor contract, and on widening performance specifications in contracts will be released later on this year.