"There is not an ounce of encouragement to contractors in the
Highways Agency's Business Plan 2004/05", according to the Civil
Engineering Contractors Association (CECA).
Harsh words, and ones that call for some explanation. CECA's rather
gloomy assessment derives from a comparison of the indicative spend
for 2004/05 outlined in the 2003/04 business plan and the actual
spend announced last week in the HA's business plan for the year
just starting.
It appears that capital expenditure on major schemes is to be cut
by £154m, or 36.8%, with invitations to tender expected to go
out on just eight schemes.
That said, the programme outlined in the business plan does not
include any of the 13 motorway widening schemes announced by the
transport secretary in December 2002. And some multi-modal studies
have yet to report and more road schemes may be added to the
programme as a result.
So it's not all gloom and doom, but it's true that the government
has its eye, and by the looks of it, much of its capital
expenditure, firmly fixed on education and health. However, major
improvements are needed on vital parts of the road network and the
backlog of repairs continues to grow.
But there is another point to be made. The HA has worked hard to
turn itself into a best practice client, working with the industry
using partnering contracts to meet its environmental,
sustainability and better value for money criteria. Contractors in
turn are having to raise their game to meet the HA's aspirations.
It would be a great shame if all this hard work on everyone's part
went to waste through lack of funding. The government needs to
provide enough projects to justify the time, effort and money spent
by both the HA and its contractors on meeting the new best practice
quality criteria.