M25 widening Q&A

(08 May 2008 09:17)

The M25 widening is the biggest roads project ever awarded by the Highways Agency (HA). It is valued at £4.5bn, and has been let as a 30-year design, build, finance and operate (DBFO) scheme. Our Q&A provides an overview of the key issues surrounding the project.

Who will carry out the construction work?

The winning consortium for the M25 widening is Connect Plus, made up of Balfour Beatty, Skanska, Atkins and Egis Projects.

The firms who also bid for the project is: the Flow consortium (Vinci, Autoroutes De Sud De La France, Laing Roads, Carillion, Costain, Ringway, Mouchel Parkman, Norwest Holst and Jacobs); and a group consisting of Amey, Laing O’Rourke and Ferrovial Agroman.

What construction work is involved on the M25 widening?

The contract will involve adding 102km of extra capacity to most of the remaining three-lane sections of the M25, which is expected to take eight years. The additional capacity will be made at:

Junctions 16 – 23 (35km);
Junctions 5 to 7 (17km);
Junctions 27 -30 (23km);
Junctions 23 – 27 (27km).

However, the scope of the widening works may be reduced, with the HA expected to turn to using hard shoulder running rather widening the existing network.

In its 2008/09 Business Plan the HA revealed that hard shoulder running is being considered at Junctions 5-7 and 23-27 rather than proceeding with widening works.

The winning consortium also has the responsibility for maintaining the motorway and its structures over the duration of the 30-year contract.

How much is the M25 widening costing?

The estimated construction cost for the widening works is £1.5bn. The maintenance and refurbishments works are valued at £110m over the 30-year life of the contract.

What are the risks for Connect Plus?

Bidders were asked to submit fixed price tenders for the first seven years of the contract. They will be expected to stick at that price, or face the wrath of the HA, the Department for Transport and the media.

The winning bidder Connect Plus will be expected to ensure a smooth running of the country’s busiest transport route with up to 200,000 vehicles per day using the most heavily-trafficked sections. This will be achieved through well-managed lane closures.

The 2012 Olympic Games will also be a consideration for Connect Plus. However, so far the HA has said that no planned works will take place during the Games.

How will Connect Plus be paid?

The contract will be set out with agreed obligations and allocation of risk between the Secretary of State and the DBFO Co.

Connect Plus will be required to state the gross annual payment that it will require to deliver the specified service covering both operation and maintenance. However, adjustments will be made for lane availability, condition of the network and performance measures.