Highways Agency encourages Early Contractor Involvement schemes

Super early contractor involvement introduced following transport select committee call for agency to get its budgets in order.

Super early contractor involvement is being introduced by the Highways Agency (HA) after it emerged that the department is encouraging contractors to forge formal arrangements with consultants as part of its new Project Support Frameworks (PSF).

The PSFs, which will replace the HA's traditional Consultancy Framework Agreement for Design Services, set up solely for consultants, will now see contractors forge relationships at an even earlier stage, such as working up tender documents for early contractor involvement schemes (ECIs). This is in an effort to help drive down construction costs.

The HA hopes that having contractors on board at a super early stage, providing a subconsultancy service to consultants, will help address issues such as budgeting and buildability, which are often overlooked by consultants.

The move comes in response to strong criticism by the House of Commons transport select committee, which called on the HA to get its budgets in order following massive cost increases when ECIs schemes are worked up.

Birse Civils has emerged as the only contractor that is now formally working with Mouchel Parkman, one of the consultants awarded the four-year frameworks. However, there is no direct relationship between the contractor and the HA through the PSFs.

Other firms on the framework are: Arup; Atkins; Capita; Halcrow; Jacobs Babtie; Mott MacDonald; Owen Williams; Parsons Brinckerhoff; Pell Frischsmann; Scott Wilson; URS; Waterman Civils; and WSP.

"By having contractors on board we will get a much better idea of buildability. In the past we did not get the full range of services by consultants alone as they lacked the experience from the contractor," said HA procurement director Steve Rowsell. "This way we get all the resources and skills we need much earlier than before."

However, Rowsell said the arrangement meant that for commercial reasons Birse wouldn't be able to bid for contracts it has been doing detailed work on.

A Birse Civils official told Contract Journal: "The HA has been hinting for some time that it would like greater contractor involvement at an even earlier stage. I think a lot of contractors missed the boat on this one. They are starting to wise-up and are contacting consultants about teaming up to help provide advice on areas such as budgetary requirements, risk management and construction costs. However, we won't work on projects that will jeopardise our opportunities."

[Contract Journal, 30 August 2006, p 5]