Highways Agency

Section 5 - Issues

There are a number of perceived limitations and challenges on how far the Agency can go down the road to full performance specification and these are set out below. These issues need to be addressed in the future development and use of performance specifications.

5.1 Technical Governance

The Agency is responsible for technical governance for highway management and engineering on behalf of the Secretary of State. This role cannot be passed on. However, the Agency can ask the supply chain to carry out the tasks to help it meet its duties. What role the supply chain should take to support the Agency is a major area for discussion.

HA Standards

Currently the Agency's two main technical documents are the Design Manual for Roads and Bridges (DMRB) and the Manual of Contract Documents for Highway Works (MCHW). Some see these documents as prescriptive with little room allowed for designers or contractors to exercise flair and innovation. This perception might be dispelled with a change in working culture.

Suppliers and local authorities look to the Agency's current standards and specifications to limit their exposure to risk. If the HA defines outputs and outcomes rather than inputs and methodologies, then the responsibility of ensuring technical excellence will rest with the industry and suppliers. The existing Agency standards and specifications would be used as a guide to existing best practice, but the issue then arises about who would be responsible for updating the guidance and defining best practice.

The new European codes and standards will introduce new forms of specifications that will need to be followed.

5.2 Issues for Suppliers

• Risk management/analysis - Until now, the Agency has carried most of the risks associated with specifications and standards. Under a performance specification regime it is expected that a number of these risks and responsibilities will be transferred to the suppliers.
• The Agency will need assurance that highway design, construction and maintenance processes are developed in line with industry best practice principles.
• An understanding of the risks involved in the use of performance specifications is essential.
• Development of a comprehensive risk management system will therefore be critical to enable risks to be managed and their impact minimised as far as possible.
• The conventional method of specifications has been claimed to stifle innovation and create a barrier to improving construction performance. Suppliers are potentially in the best position to instigate innovations for improvement in service levels and reduction in costs. Ideas from suppliers could, thus, play a key role in defining the performance specifications.

5.3 Issues for the Agency

• Under its Procurement Strategy, the Agency is considering extending the use of performance specifications to other forms of contract, including DBFO. In doing this it must ensure that consistency of outcome across the network is maintained.
• The Agency provides technical and corporate governance and the use of outcome-based performance specifications must not compromise this role. Possible means of assurance for the Agency include the use of quality management systems, regular auditing procedures, product guarantees and liability insurance.
• A major issue is that of durability and future performance of the network assets. The Agency will need to know that work carried out today will perform in the future. This will require future looking indicators most likely based on suitability of process.

5.4 Issues common to both - Suppliers and Agency

• The development of a performance specification will need to ensure quality and durability of the end product.
• A robust set of performance indicators will need to be developed to ensure that realistic sustainable targets are set and can be easily measured.
• Performance specifications will need to be easily tailored to the specific requirements of a particular area, while ensuring a consistency of outcome across the network.
• There is a need to develop lead indicators that point to successful performance in the future rather than only identifying past performance or failure. Indicators, such as predicted durability of roads and structures, could be developed.
• Performance specifications will need to be flexible enough to accommodate future changes in standards and best practice in highway construction and maintenance.
• The use of performance specifications could have an impact on tender periods, methods of supplier evaluation/selection, the amount and quality of information needed within tender documents.