Skip to main content

Balfour Beatty Mott McDonald secure key H Agency contract

The Highways Agency has awarded the second of its new Asset Support Contracts to Balfour Beatty Mott MacDonald. The contract involves maintaining and improving the network of motorways and major ‘A’ roads in the North West. It will cover the Agency’s roads in Cheshire, Greater Manchester, Merseyside and south Lancashire and will go live from November 2012. Cumbria and the remainder of Lancashire are covered by a separate contract. The key contract will ensure motorways and major 'A' roads in the region co
June 15, 2012 Read time: 3 mins
The 2309 Highways Agency has awarded the second of its new Asset Support Contracts to 1530 Balfour Beatty Mott MacDonald.

The contract involves maintaining and improving the network of motorways and major ‘A’ roads in the North West.  It will cover the Agency’s roads in Cheshire, Greater Manchester, Merseyside and south Lancashire and will go live from November 2012. Cumbria and the remainder of Lancashire are covered by a separate contract.

The key contract will ensure motorways and major 'A' roads in the region continue to be maintained to high standards while delivering substantial savings and making the major part of the Highways Agency’s contribution to reducing the budget deficit.
Nationally, the new Asset Support Contracts (ASCs) are replacing the existing arrangements, known as Managing Agent Contractor (MAC) contracts, and will form the basis of the delivery of maintenance and improvement services for most parts of England’s motorway and trunk road network.

Key features of the new contracts include:

  • maintenance standards which are ‘outcome based’ and less prescriptive about how and when work is delivered
  • affordable levels of service, with appropriate quality but no reward for over-delivery
  • incentives for innovation and efficiency, including the opportunity for contract extensions
  • simplified pricing mechanisms with a schedule of rates and ‘year on year’ cost reduction mechanism
  • a higher cost threshold for works, to allow more procurement through the ASC rather than by separate tender
  • managing technology maintenance and improvement works through the main contract, for more efficient and joined up delivery.

Derek Turner, the Highways Agency’s Network Development and Delivery Director said:

"I believe that these new contracts deliver the best possible value for money without compromising safety. This is because we are selecting only the most capable and best performing suppliers through competitive, effective and timely commercial procurement.

"The contracts may have changed, but our essential requirements remain the same – a safe and well maintained road network. Contractors will retain their incident support capability, but will be better able to deploy their staff more flexibly. Our winter fleet will work as usual to keep the network open during periods of severe weather. We and our contractors always put the safety of road users first when prioritising maintenance and improvements and we will continue to do so."

David Grunwell, North West Regional Divisional Director added: "I am looking forward to working with Balfour Beatty Mott MacDonald to manage and maintain our network in the North West. More than 90% of the Agency’s expenditure is delivered through contractors and that is why we need to work with an efficient, effective and professional supply chain to drive down costs and deliver the highest quality service. I am confident that this new contract will do just that."

ASCs in other regions are due to go out to tender later this year, with all of the Agency’s regional maintenance contracts moving to ASCs by 2015. In the meantime, key ASC principles are being ‘retrofitted’ to existing contracts to deliver cost benefits as soon as possible.

For more information on companies in this article

Related Content

  • Balfour Beatty wins Midlands road technology maintenance package
    April 23, 2014
    Balfour Beatty has secured its third Regional Technology Maintenance Contract (RTMC) from the Highways Agency. This deal is worth some €10.56 million (£8.7 million) over five years. The package involves maintaining around 28,000 technology assets on behalf of the Highways Agency and will cover both the Highways Agency’s Area 7 (the East Midlands) and Area 9 (the West Midlands). The technology service provided by Balfour Beatty includes responsibility for managing and maintaining road-side technology systems
  • Balfour included on major UK Highways Agency framework contract
    November 7, 2014
    Balfour wins place on major UK Highways Agency road framework contract Balfour Beatty’s UK construction business has been appointed by the UK’s Highways Agency to a new collaborative framework contract for projects totalling more than US$3.95 billion (£2.5 billion). Under the framework arrangement, Balfour is one of five contractors that the agency can call upon to deliver individual projects worth between $160 million and $713 million (£100 million and £450 million) on Lot 3B of the Collaborative Del
  • New design consultant partnership
    July 7, 2017
    A new strategic design consultant partnership is now being formed between infrastructure group Balfour Beatty, Atkins, Mott MacDonald and WSP. The collaborative UK Strategic Design Consultant Partnership is said to offer a new level of openness, collaboration and innovation for the construction industry.
  • Highways Agency announces 2012 supplier recognition scheme winners
    December 10, 2012
    The Highways Agency has announced the winners and highly commended entrants for the second year of its supplier recognition scheme. The scheme recognises suppliers who are deemed to be demonstrating class-leading performance in driving down costs and delivering increasingly efficient and effective customer services, promoting best practice in the Agency’s supply chain. The annual recognition programme highlights the important contribution made by the Agency’s suppliers, who play a vital role in supporting t