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Efficiency Gains from Collaborative Roads Procurement

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Efficiency Gains Strategy

Current Progress and Drivers for Change

Achieving Efficiency Gains From Collaborative Roads Procurement

The Government has a long-term commitment to improving efficiency in the construction industry. Much has already been achieved by leading highway authorities in delivering improved efficiency in roads procurement. This has been predominantly through the development of a 'best value' culture with partnerships supported by performance measurement and continuous improvement being core features. Also, a key focus of some clients has been leading the development of improved effectiveness in relationships between internal and external partners, particularly with suppliers. Examples of new initiatives applied by highway authorities include:

  • The Managing Agent Contractor (MAC) contract (based on the NEC/ECC form of contract) - a single company to manage the planning and operational delivery for maintenance areas
  • Early Contractor Involvement (ECI) contracts - team selection based on its ability to deliver effectively and efficiently with emphasis on quality The HA's Capability Assessment Toolkit (CAT) - to identify those high quality supplier organisations with whom we want to develop more effective and longer term relationships
  • The HA's Culture Assessment Framework (CAF) - to identify areas for improved effectiveness and efficiency in the client/supplier team working relationships
  • Strategic Partnering contracts with integrated team working contractor/ designer/supplier both public and private sector
  • NEC/ECC contracts which embrace partnering, procured over a wider scope with target cost included and which encourage continuous improvement.

The extension of Whole of Government Accounting to local authorities and the application of Asset Management to roads as part of the next Local Transport Plans will raise greater awareness of the scale of the roads asset and the most efficient options for funding its improvement and maintenance.