EnterpriseMouchel (EM) could cut the number of staff working on its Highways Agency Area 3 contract.
According to Construction Enquirer, more than 100 jobs could go and a redundancy consultation exercise is already underway. This is due to be completed by the end of October.
EM is the current service provider in Area 3 having been appointed as the Highways Agency’s managing agent contractor in 2008. It was awarded the new Asset Support Contract (ASC), which will run to 2018, last month.
The contract covers approximately 1,242 km of motorways and trunk roads in Surrey, Hampshire, Dorset, Wiltshire, Berkshire, Buckinghamshire and Oxfordshire. It will go live from 1 November 2013 and is valued at up to £140 million per annum.
However, if these proposals are given the go ahead then the EnterpriseMouchel team working on the contract will be reduced from 405 to 296. The asset development team is expected to be cut by 50% from 144 to 72.
One source told the Enquirer: “This is all about cutting things down to the bare bones.
“It looks like they are concentrating in keeping the tarmac together in the short term but any long-term improvements are being sacrificed along with resources for the asset development people.
“This Government talks a lot about helping construction then just stands back while this happens.”