Decision details

The Cabinet Member authorised the issue of a work package to Skanska Construction UK Limited (“Skanska”) using the Council’s existing Peterborough Highway Term Service Contract (the “Contract”) to undertake a programme of resurfacing and repair works at locations across the authority area.  The total value of the work package will be up to  £2.352m.

Peterborough’s Highway Asset Management Policy and Strategy provides a clear position on how the Council maintains the highway network to ensure that it is safe and supports the growth of the city in line with the Council’s Strategic Priorities.

Key aspects of the Highway Asset Management Policy and Strategy include:

·         Acknowledgement that effective asset management is critical to the delivery of its services and the realisation of the Council’s long term vision and strategy;

·         Asset management principles enable informed decisions to be made about investment and maintenance funding, assist in the targeting of resources to where they can be most effective, and enables the identification and management of the risks associated with statutory duties to manage and maintain public infrastructure;

·         To promote a strategic and forward thinking approach to managing the highway network to give confidence to decision makers to take current and future planned maintenance decisions.

It is proposed that the programme of works for this funding stream will be carried out by Skanska through the Professional Services element of the Peterborough Highway Services Contract established in 2013. The award of these package of works is undertaken in accordance with clause Z44 and Schedule 2 of the Highway Services Contract.

Utilising an existing contract will allow physical works to commence far quicker than alternative procurement routes.  Reduced procurement and mobilisation time will be a key factor in the Authority’s ability to take full advantage of the £2.35m and achieve full spend of the funds. There is considerable risk that full spend will not be achieved if an alternative procurement route is required.

Skanska have delivered Highways schemes both and major and minor through the contact since 2013 with a great deal of success. Works have been delivered effectively and efficiently. Utilising the existing Highway Services Contract will mean that the Council will realise the following benefits:

·         Reduced procurement costs and maximised delivery time by using an existing framework contract.

·         Improved project management and cost certainty through the utilisation of a target cost style of contract.

·         Reduced construction costs through ‘Early Contractor Involvement’ (ECI) at the design stage to manage and mitigate more effectively any potential issues with the scheme.

Not to deliver a programme of works: A do-nothing scenario has been ruled out, since the impact on the road network to communities and businesses would not be welcomed. This additional budget is ring fenced to be spent on the road network and cannot be spent for alternative means.

Defer the works: The funding award is only for 2020/21 financial year and must be spent before 31 March 2021. Therefore, there is no option to defer the programme until next year as the Council will not have the budget internally to contribute to the programme subsequently creating pressure on other maintenance budgets.

External tender for delivery: It is important to consider the amount of time and resources that would be required in order to complete a full tender and contract award exercise. This would significantly reduce the amount of time for delivery and almost certainly prevent full delivery by the 31^st March 2021. Given the prescribed spend date this delivery option has been discarded.

None.

Peterborough Local Transport Plan 4 (2016 – 2021)

http://www.peterborough.gov.uk/ltp

Highway Asset Management Policy and Strategy (2016)

https://www.peterborough.gov.uk/residents/transport-and-streets/highway-assetmanagement/#PolicyAndStrategy

Peterborough Highway Services contract (2013-2023)

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

http://democracy.peterborough.gov.uk/documents/s17190/PHS%20CMDN%20V5%20Final%20pub.pdf