Construction contract price indices aid efficiency

A new way of working has been launched for the UK highways maintenance and management industry.
February 22, 2012 Read time: 1 min
A new way of working has been launched for the UK highways maintenance and management industry.

2479 Highways Term Maintenance Association (HTMA), Civil Engineering Contractors Association (2993 CECA) and Building Cost Information Services of the Royal Institute of Chartered Surveyors (2994 BCIS) have collaborated to develop a set of new price adjustment indices specifically for term contracts in the highways maintenance industry.

Counties Cheshire West and Shropshire in England are the first to adopt the mechanism within their new contracts being issued later this month.

The three organisations have worked together to produce a monthly highway maintenance term contract indexation mechanism that effectively tracks costs to achieve lowest priced bids, fair allocation of risk between client and supplier, and accurate cost profiling.

The mechanism has been put before a client review panel that declared it to be fit for purpose and relevant for today’s industry.

Steve Ashley, chair of the HTMA procurement working group, said: “The industry as a whole has experienced intense periods of cost volatility and it is in the interest of all parties to reflect true costs in order to promote and encourage flexibility, forward planning and efficiency”.

For more information on companies in this article

Related Content

  • Optimising operations with construction software gains
    May 20, 2015
    Innovations in construction software are helping boost project efficiency and optimising project operations – Clive Davidson writes Over the past decade, while construction engineers have been putting up buildings or infrastructure, software engineers have been developing a parallel universe where virtual buildings or infrastructure can be created in ever increasing detail. What started with 2D architectural drawings in computer-aided design (CAD) systems, has become a multi-dimensional world, with 3D ge
    Read More
  • Shrewd construction
    January 2, 2013
    David Williams is director of Kijlstra UK, one of the leading European manufacturers and suppliers of drainage solutions. The Group has a turnover in excess of €150 million and sites in numerous locations throughout Western Europe. Ever since Sir John Egan kick-started the Rethinking Construction movement more than a decade ago, designers, contractors and suppliers have been trying to find ways of improving site safety, cutting waste and generally improving efficiency in the construction process. “There has
    Read More
  • Kier’s strong financial performance
    September 20, 2018
    Kier Group has announced a strong financial performance for its full-year results to 30th June 2018. The results were bolstered in particular by a solid performance in its highways business. The company claims that this has reinforced the firm’s position as the UK’s leading provider of highways management and maintenance services. Over the 12 months, Kier has maintained its position as the lead supplier to Highways England. Securing two three-year extensions to 2021 and 2022 respectively worth over £250 m
    Read More
  • Putting roller compacted concrete to the test
    June 28, 2013
    Although it has been around since the 1970s, roller compacted concrete (RCC) is starting to look a whole lot more attractive, thanks to the rising price of bitumen. Now the challenge is to define specifications and tests to help ensure quality - Kristina Smith reports. At a meeting of the American Concrete Pavement Association in December 2011, there was a sea-change in the attitude towards roller compacted concrete (RCC). Up until that point, the feeling among the 400-plus members, of which half are contra
    Read More

Highlighted Content