Warwickshire County and Coventry City Councils join forces for new £100m highways contract
Warwickshire County Council’s Cabinet has yesterday (14 October) awarded a prestigious £100 million five year highway maintenance contract to Balfour Beatty.
Following a competitive tendering process, county councillors approved the contract in partnership with Coventry City Council which will deliver better value for money to the taxpayer.
Balfour Beatty will commence the initial five year contract when the current highway maintenance contract with Carillion ends on 5 May 2011, with the option to extend the contract for a further four years subject to performance, making the total contract worth up to £200m over nine years.
Councillor Alan Cockburn, Warwickshire County Council’s Portfolio Holder for Environment and Economy, said: “I am delighted to announce Balfour Beatty as the new provider of the highways maintenance contract, which is a key frontline service to residents and businesses.
“I have been involved as a board member during a competitive and rigorous procurement process since September last year. At the end of this process we had five quality and price-competitive submissions.
“The close proximity of Coventry and Warwickshire means it is makes perfect sense to link up certain highway activities and offer a joined-up service to deliver better value for money.
“I believe collaborative working is essential in these financially testing times and I am confident that this new highways contract will provide both efficiency savings and a high reputation service across the region over the next five years.”
Cllr Lindsley Harvard, Coventry’s Cabinet Member for City Services, said: “I am very pleased to be working in partnership with Warwickshire County Council and Balfour Beatty. This partnership will complement our in-house maintenance team at Whitley and will enable us to provide the city with a first class maintenance service that is good value for money.
“We have already made big savings just by procuring the contract with Warwickshire. And this is just the start of what I am sure will be a great partnership that delivers benefits and savings in equal measure.”
Paul Galland, Warwickshire County Council’s Strategic Director for Environment and Economy, added: “The contract is one of the first of its kind in the Midlands region, in that highway work will be delivered by one provider across two local authorities.
“The aim of this approach is to create a clear and straightforward highway contract that avoids complex clauses, utilises modern IT systems, promotes ‘lean business’ processes to drive down costs and requires excellent service by our contractor in order gain contract extensions.”
Warwickshire’s highway network stretches to 3,820km and Coventry’s network extends to 820km. The contract covers the county’s planned and routine highway maintenance, street lighting, bridgeworks and other transport projects up to the value of £250,000.
Coventry City Council will use the contract to deliver planned highway and bridge works and use its existing in-house Direct Labour Organisation to provide a 24/7 highway response and routine maintenance service. There is also scope for other neighbouring local authorities to use the Warwickshire contract.