Highways Agency: 'We want more'

The Highways Agency (HA) has once again urged highways contractors to help get a greater grip on cost estimating, cost challenging and cost control when delivering schemes in its Targeted Programme of Improvements (TPI).

Addressing the industry at Civils 2006 last week, the HA's director of major projects, Keith Miller, said: "Targeting costs is a big issue. Cost estimating, cost challenging and cost control is a major issue where you [the industry] have a central role."

Miller added that the Nichols review, being carried out to look into cost escalations on early contractor involvement schemes (ECIs) and programme management, was due to report back in the next three weeks. "I am committed to working through the issues [highlighted in the report] and to implement the recommendations," he added. "We will implement this proactively with our supply chain partners."

However, Miller denied claims made in the summer that the HA had lost budgetary control of its TPI and added that the agency had met its delivery targets within approved budgets.

This includes plans to invest around £1.7bn over the next two years and the planned opening of 21 major schemes since 2000, the agency has completed 40 major motorway and trunk road schemes. Miller also emphasised the importance of dealing with the situation taking into account the forthcoming Comprehensive Spending Review next year. He added: "We need to show that we can manage and deliver against the tough conditions we face."

Miller thanked the industry for its "commitment to delivery this year, and for the innovation you have shown". However, he added that "like Oliver Twist, we want more".

Miller also urged contractors to embrace earlier contractor involvement and design for maintenance on its major schemes. He reinforced the agency's commitment to ECIs as being "right for major road construction" and would be the normal method of delivery for many major road projects, apart from a few exceptions such as the M25 DBFO.

However, Miller admitted that ECI was a relatively new approach, with only a handful of such schemes now completed. Miller agreed that a need for clarity was needed on the TPI forward programme to allow the supply chain to plan resource requirements to achieve delivery, especially as 80% of projects in its TPI have yet to be awarded.

[Contract Journal, 06  December 2006, p 4]