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Decision details

Award of Increased funding to complete Nene Bridge Bearings Works through the Peterborough Highway Services Contract – MAY20/CMDN/109

Decision Maker: Cabinet Member for Strategic Planning and Commercial Strategy and Investments

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


The Cabinet Member authorised the increase in value of the works package awarded to Skanska Construction UK Limited (“Skanska”) under the Council’s existing Peterborough Highway Services Contract (the “Contract”) from £5.1m to £6.7m.


Reasons for the decision:

Nene Bridge was constructed in 1984 by the Development Corporation and is located on a primary traffic route that has been identified as key for the development and growth of the city. It has been identified that the bridge pier bearings have deteriorated to a condition where significant maintenance is required in order to keep the route operational. Failure to maintain would have significant detrimental effects to both current daily traffic movements and future growth, forcing traffic limits at best and closure at worst.


Bridge bearings transfer loads and movements from the bridge deck to the substructure and foundations and in order for Nene Bridge to remain operational for its 120 year design life the bearings need to function efficiently. Condition surveys have identified that the bearings have deformed and subsequently, the working life of the structure may be significantly reduced. Replacing the bearings will ensure that the bridge can accommodate current traffic volumes and realign the structures condition in line with its 120 year design life.


Works to six of the eight piers was completed during May 2018- August 2019, but as the cost of these works exceeded the planned costs there is insufficient funding available to undertake the works to the remaining two piers.


The cost increase arose as a result of the original method planned to provide access to the four piers located within the River Nene proving to be unsuitable during the project.  The original plan was to create a piled platform in the river bed, however as further information became available it became apparent that the size of platform required would have been far greater than originally envisaged.  This would have resulted in significant increases in both time and costs to construct.  It would also have impeded a considerable portion of the width of the river impeding the flow of water in the event of a flood event, which would raise concerns with the Environment Agency who are responsible for the River Nene.


An alternative design solution to provide access from the river was therefore adopted that satisfied the requirements of the Environment Agency.  This solution avoided the time delays to the project.


The proposal to provide access to the remaining two piers would follow a similar method, but would be constructed from the opposite bank of the river closest to the two remaining piers.  The methods used to replace the bearings would be as per those successfully used on the first six piers.



The contract for highway services has been delivered by Skanska since October 2013 with the establishment of Peterborough Highways Services (an informal collaborative “partnership” between PCC and Skanska to deliver highway related services across the unitary authority area) and award of the Highway Services Contract (the “Contract”). This process was ratified by a Cabinet Member’s Decision Notice (AUG13/CMDN/068).


Further details in relation to the contract award can be viewed under the web link stated in Section 14 Background Documents.



Project Budget Profile


2015/16 (£2,305.98 Capitalised)


£2,305.98   Design Fees to Skanska


2016/17 (£158,076.23 Capitalised)


£153,992.63      Design Fees to Skanska

£1,351.64          Network Rail

£2,731.96          Staff Fee Capital Recharge


2017/18 (£220,683.71 Capitalised)


£185,369.66      Design Fees to Skanska

£2,560.35          Staff Fee Capital Recharge

£31,253.70        Construction Cost to Skanska

£1,500              Network Rail


2018/19 (£2,809,670.69 Capitalised)


£96,056.18        Design and Supervision Fees to Skanska

£8,431.03          Network Rail for BAPA (PO from PCC direct)

£126.55             PPE Costs recharged

£2,705,056.93    Construction costs to Skanska


2019/20 (£1,416,616.31 anticipated outturn)


£4,996.81          Design and Supervision Fees to Skanska

£460                 Network Rail for BAPA (PO from PCC direct)

£874.25             PCC Costs recharged

£1,420,278.87    Construction costs to Skanska


Costs incurred to date £4,607,352.92 to complete Piers 1-6 of which Skanska costs make up £4,589,317.14



2020/21(£2,132,837.99) Budget to complete Piers 7&8)


£30,000             Design and Supervision Fees to Skanska

£1,000              PCC Costs recharged

£0                     Network Rail for BAPA (PO from PCC direct)

£2,000,000        Construction costs to Skanska (Subject to Target Costing)

£101,837.99      Contingency (approx. 5%)


            Total Estimated Cost £6,740,190.91 of which Skanska costs make up £6,619,317.14


            Budget Available £2,132,837.99 (comprising £2,080,000 MTFS plus year end slippage £52,837.99)


Alternative options considered:

Defer the works to the remaining two piers.  This has been ruled out as the work will still need to be done and at present there is benefit in using the same project team and sub-contractors who are familiar with the project to deliver the remaining works. Delaying the works would result in increased costs and the potential loss of the experienced workforce.


Interests and Nature of Interests Declared:


Background Documents:

Peterborough Local Transport Plan 4 (2016 – 2021)



Highway Asset Management Policy and Strategy (2016)




Peterborough Highway Services contract (2013-2023)

·         Cabinet Member’s Decision Notice (AUG13/CMDN/068)



Award of Nene Bridge Bearings Work Package Through the Peterborough Highway Services Contract (2018)

·         Cabinet Member’s Decision Notice (FEB/CMDN/109)



Publication date: 13/05/2020

Date of decision: 13/05/2020

Effective from: 19/05/2020

Accompanying Documents: