Highways Agency

1.2 Progress in applying the Principles to Specific Categories of Work

Maintenance

• The Managing Agent Contractor (MAC) contract is now in use in nine out of 14 maintenance areas, achieving single-point responsibility for delivering front-line services to road users. The MAC contract is based on a strong partnership approach between an integrated and incentivised client-supplier team focussed on delivering a safe and reliable network
• A new pilot maintenance contract, the Enhanced MAC or EMAC, was awarded in December 2004 in Area two around Bristol
• Service delivery performance indicators have been agreed and implemented with suppliers covering key functions such as response times to incidents on the network and repair of defects. Results are now being collated and analysed to drive performance improvements and influence investment decisions.

Regional Road and Bridge Works, Technology Projects, and Consultancy Services - the Use of Frameworks

Frameworks are now in place for delivery of virtually all small works, technology and consultancy requirements. Frameworks:

• Allow planners, designers, front-line suppliers and their supply chain to be involved in the design and programming of works
• Add value to the product or service by enabling suppliers to influence specifications and have a greater understanding of the risks to delivery
• Allow more time to develop health and safety plans.

Construction Management (CM)

CM is a framework arrangement allowing us to directly appoint specialist trade contractors and suppliers. Early pilots led to:

• Establishment of longer term, flexible arrangements in maintenance areas nine and 10
• An insight into cost components and the build-up of prices
• The development of a strong community approach amongst the suppliers, focussed on measuring performance, driving out wastage and achieving continual improvement.

Major Projects

• The Agency has successfully introduced its Early Contractor Involvement (ECI) initiative to major projects
• The ECI concept has now been extended to packages of work and the first contract comprising six junction improvements was awarded in 2003
• An Agency Model Contract Document was launched in August 2004
• The Model Contract contains several financial incentives to complete within the contract budget and contractual performance indicators
• Delivery of projects has been accelerated and transaction costs reduced.

Private Finance

We have consulted with the industry and financial institutions on an improved DBFO contract, which would be cheaper and quicker to tender, more flexible to change and includes the Early Contractor Involvement principles. Development work has started on the new contract and the associated procedures.

Other Areas of Procurement

Significant progress has also been made in procuring works, goods and services, which support front-line delivery. These include:

• The rationalisation of Research and Development requirements under a framework arrangement and proposals for a Research and Development Community
• Procurement options for property facilities, estate management and information technology are being rationalised to make maximum use of existing Government contracts
• Extensive use of existing Government contracts for the speedy delivery of vehicles, uniforms and ancillary services in support of establishing Regional Traffic Control Centres and Traffic Officers on our network.

Health and Safety

The Agency has worked closely with the Health and Safety Executive to focus on priorities for improving the safety of the workforce operating on our network. Since 2001, we have introduced several initiatives:

• Closer scrutiny of suppliers' corporate commitment to health and safety at the pre-qualification stage
• Proposals for managing safety on site are scrutinised at tender stage and safety plans are a pre-requisite for Award of Contract
• Data is collected and collated to inform our supplier selection process and monitor our Business Plan target to reduce the number of road workers killed on our network
• Further monitoring and measuring of health and safety performance. Suppliers involved in serious incidents may have their opportunities to tender restricted until we are satisfied that they have appropriate plans in place to prevent re-occurrence.