Surrey council launches ‘innovative’ £2.5bn highways contract
Surrey County Council is seeking a contractor to take on a £2.5bn long-term highways contract.
The deal will see one contractor picked to take over its highways maintenance contract, worth around £80m per year.
On top of this, the council hopes the firm will take on other types of projects. In a contract notice setting out its plans, the council said: “It is anticipated that the appointed supplier will not only deliver day-to-day maintenance services, but may also assist with the design/delivery of major schemes and/or design and implement new innovations connected to the operation of the highways network.”
It said the new contractual arrangements were “a new, exciting and innovative arrangement to facilitate its highways maintenance requirements”.
A market engagement event in July led the council to pursue the new contracting approach. It has also seen the total potential value more than triple from £800m to £2.5bn.
A competitive bidding and negotiation approach will be used for the procurement. The council said this would allow it to interact with potential suppliers more closely and explore different options. Four firms are expected to make the shortlist for the contract.
The new contract is scheduled to start in April 2022 and will run for an initial 10 years with options to extend it for up to a further 11 years. It will replace the council’s current highways maintenance contract which May Gurney won in 2011 and has been delivered by Kier since 2013 when they bought the highways specialist.
Source: Construction News