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Contractors wary of Area 1 merger plan
15:52 11 May 2005
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Roads contractors have given a cautious welcome to the Highways Agency’s (HA) planned move to combine local authority roads and trunk roads into one contract for Area 1 (Devon and Cornwall).
CJ revealed earlier this year (CJ 31 March) that the HA was in discussions with councils in the affected areas over working together under one mega multi-million pound contract as part of last year’s Gershon review to drive cost efficiencies across local government.
The move would see a selected contractor working under a Managing Agent Contractor
type agreement to provide highways maintenance over a five-year period.
However, contractors have warned that potential in-fighting between council and HA officials could become an obstacle for productivity and that the selected contractor for such a
scheme could end up playing “piggy-in-the-middle”.
One contractor told CJ: “The scheme is a logical progression from all the good work being done by the HA in procurement and the industry is ready for a new challenge that the revamped Area 1 contract could provide.
“However, it is well known that relations in the past have been somewhat strained between the agency and local authority highways officials, with the groups clashing over the control of their territories.
“If both parties don’t get this sorted out at the start, the contract is likely to fall apart. It is important that each of the representatives don’t have their own agenda and try to dominate exactly what sort of work should be carried out and when.”
Another contractor warned that the company chosen for the job could face split
responsibilities.
“There is the potential situation that the contractor will be piggy-in-the-middle as it will
be expected to provide services to both the highways agency and the local councils,” the
source said.
“This puts it in the position of being asked by certain parties to provide preferential treatment and if the work doesn’t get done there will be questions over whether the contractor will get paid.”
CJ revealed earlier this year (CJ 31 March) that the HA was in discussions with councils in the affected areas over working together under one mega multi-million pound contract as part of last year’s Gershon review to drive cost efficiencies across local government.
The move would see a selected contractor working under a Managing Agent Contractor
type agreement to provide highways maintenance over a five-year period.
However, contractors have warned that potential in-fighting between council and HA officials could become an obstacle for productivity and that the selected contractor for such a
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scheme could end up playing “piggy-in-the-middle”.
One contractor told CJ: “The scheme is a logical progression from all the good work being done by the HA in procurement and the industry is ready for a new challenge that the revamped Area 1 contract could provide.
“However, it is well known that relations in the past have been somewhat strained between the agency and local authority highways officials, with the groups clashing over the control of their territories.
“If both parties don’t get this sorted out at the start, the contract is likely to fall apart. It is important that each of the representatives don’t have their own agenda and try to dominate exactly what sort of work should be carried out and when.”
Another contractor warned that the company chosen for the job could face split
responsibilities.
“There is the potential situation that the contractor will be piggy-in-the-middle as it will
be expected to provide services to both the highways agency and the local councils,” the
source said.
“This puts it in the position of being asked by certain parties to provide preferential treatment and if the work doesn’t get done there will be questions over whether the contractor will get paid.”
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