HA puts £155m Kent highways deal in limbo

Highways Agency chiefs have slammed the brakes on a £155m road job in Kent.

The A21 upgrade is now in limbo and the news has intensified industry fears that civils spending is starting to slowdown.

The early contractor involvement (ECI) scheme's tender validity deadline has already been extended an unprecedented three times.

The HA said it has now "withdrawn tenders", as regional transport boards have been ordered to "re-assess their priorities" following the latest cost estimate forecasts for major road projects.

One contractor said: "This throws into doubt the viability of the entire roads programme and is the last thing contractors want, with the economic downturn continuing to bite deep into the heart of the industry.

"There have been downturns before, but the roads programme was not seriously hit - this time, though, it is shrinking."

The A21 upgrade deal first surfaced two years ago. Bids from Nuttall, Laing O'Rourke, Skanska, a May Gurney/Interserve pairing and Alfred McAlpine (now Carillion) went in as far back as July 2007.

One furious contractor accused the government of finding "yet another way of delaying a decision as long as possible by passing the scheme through yet another level of bureaucracy".

Some road builders are also pointing the finger at HA chiefs.

One contractor claimed: "They're reneging on ECI. They don't think it's value for money and now want to get contractors involved later rather than earlier."

The overall fate of the A21 is not clear at this stage. There is uncertainty over whether it will be rebid, procured under different arrangements, scrapped or split into separate contracts.

The present scheme rolls two stretches of the road into a single package - the 4.1km Tonbridge-Pembury dualling and the 4.7km Kippings Cross-Lamberhurst dualling.