Asset Support Contract for maintenance of motorways and other major roads in North West England by Highways Agency

The second of its new Asset Support Contracts of The Highways Agency was awarded to Balfour Beatty Mott MacDonald, for maintaining and improving the network of motorways and major ‘A’ roads in the North West. The contract will cover the Agency’s roads in Cheshire, Greater Manchester, Merseyside and south Lancashire and will go live from November 2012. Cumbria and the remainder of Lancashire are covered by a separate contract. The new contract will ensure motorways and major 'A' roads in the region continue to be maintained to high standards while delivering substantial savings and making the major part of the Highways Agency’s contribution to reducing the budget deficit. Nationally, the new Asset Support Contracts (ASCs) are replacing the existing arrangements, known as Managing Agent Contractor (MAC) contracts, and will form the basis of the delivery of maintenance and improvement services for most parts of England’s motorway and trunk road network.

Key features of the new contracts include:

-maintenance standards which are ‘outcome based’ and less prescriptive about how and when work is delivered
-affordable levels of service, with appropriate quality but no reward for over-delivery
-incentives for innovation and efficiency, including the opportunity for contract extensions
-simplified pricing mechanisms with a schedule of rates and ‘year on year’ cost reduction mechanism
-a higher cost threshold for works, to allow more procurement through the ASC rather than by separate tender
-managing technology maintenance and improvement works through the main contract, for more efficient and joined up delivery.

Derek Turner, the Highways Agency’s Network Development and Delivery Director said: "I believe that these new contracts deliver the best possible value for money without compromising safety. This is because we are selecting only the most capable and best performing suppliers through competitive, effective and timely commercial procurement.

"The contracts may have changed, but our essential requirements remain the same – a safe and well maintained road network. Contractors will retain their incident support capability, but will be better able to deploy their staff more flexibly. Our winter fleet will work as usual to keep the network open during periods of severe weather. We and our contractors always put the safety of road users first when prioritising maintenance and improvements and we will continue to do so."

David Grunwell, North West Regional Divisional Director added:

"I am looking forward to working with Balfour Beatty Mott MacDonald to manage and maintain our network in the North West. More than 90% of the Agency’s expenditure is delivered through contractors and that is why we need to work with an efficient, effective and professional supply chain to drive down costs and deliver the highest quality service. I am confident that this new contract will do just that."

"I would like to thank the staff of A-one+ for helping us operate, maintain and improve the region’s strategic roads network over the last five years, especially during some of the most challenging winter weather in decades."

ASCs in other regions are due to go out to tender later this year, with all of the Agency’s regional maintenance contracts moving to ASCs by 2015. In the meantime, key ASC principles are being ‘retrofitted’ to existing contracts to deliver cost benefits as soon as possible.