Keen interest in London’s proposed new highways maintenance regime has prompted Transport for London to raise the expected work value to £2.6bn over eight years.
At least 10 London Boroughs, including Bexley and Kingston-upon-Thames, have said they would be willing to use the new maintenance framework.
Many more are set to sign up after more than 100 people attended a recent TfL open day to discuss the plans. As a result the estimated value of work to be let through the framework has been increased from the original estimate of £1.6bn.
TfL’s ambitious bundling of contracts is hoped to bring 15% savings from the £450m spent annually on London’s road maintenance.
Presently, around £300m of this total is procured through more than 100 contracts. Every six years up to £15m is spent just tendering and preparing these contracts.
“The industry, the Department for Transport and TfL realise there are huge gains to be made from collaborative working,” said TfL director of roads Dana Skelley.
TfL plans to shortlist up to seven contractors by January for the framework to maintain its 580-km road network of red routes plus 2,500 structures such as bridges and tunnels will start to come up for renewal in 2013.
The capital’s 32 boroughs are also being invited to use the new arrangement which should bring big delivery and procurement savings.
Most of this will come from collaboration, standardisation, common specifications, new contract conditions and e-auctions.
The new contracts would operate under a partnering ethos and could involve open book cost management depending on a study being carried out in conjunction with two London boroughs, Lambeth and Newham.