Local highway authorities set to save with new standard contract

The Highways Maintenance Efficiency Programme has launched a new standard contract as part of its aim to achieve 15-20% efficiency savings.

The HMEP hopes to encourage local highway authorities who are about to procure new highway maintenance contracts to use the new standard contract to save an average of £100,000 in developing bespoke contracts. In addition, the HMEP Form of Contract, developed by the Collaborative Working Centre, Bevan Brittan and URS, includes best practice mechanisms to secure efficiencies including target costs, risk-sharing, collaborative governance and collaborative supply chain engagement.

Gloucestershire, which invited five firms to bid for its new contract last month, will use the new standard contract and Herefordshire, Leicestershire and Worcestershire are also considering using the document. Matthew Lugg, HMEP advocate, said: "There's a real appetite for this. It will save councils a fortune and also make benchmarking easier and reduce private sector risk and in turn lead to more competitive bids."

The HMEP will discuss the new standard contract at The Future of Highways Delivery on March 14 offer training from April for the HMEP Form of Contract, targeted at those who have an immediate need. For more information, view a HMEP presentation here or email: highwaysefficiency@dft.gsi.gov.uk