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Tue June 15 2021

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Amey lands £200m East Anglian highways contract

23 Aug 13 The Highways Agency has awarded Amey a contract worth up to £200m to manage and maintain over 600 miles of strategic roads across East Anglia.

Under the Asset Support Contract (ASC) for HA Area 6 Amey will be responsible for improving and maintaining 609 miles routes through Norfolk, Suffolk, Essex and parts of Cambridgeshire.

The five year contract will begin in April next year and has the potential to be extended for up to three years. The contract is valued at between £30m and £40m per annum.

Nationally, 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.

The contract scope extends beyond routine maintenance to include scheme identification, value management, design and construction of schemes up to £5m and design and management of schemes in excess of £5m.

Highways Agency asset delivery director David Brewer said: “I am delighted that we have awarded the fourth ASC contract which represents a major step forward in the way that maintenance and improvement activities are carried out on England’s motorways and major 'A' roads.  ASCs are more outcomes based and less prescriptive, enabling our suppliers to be more innovative about the way their services are delivered.

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Amey plns to use streamlined processes, better use of technology, cutting-edge plant and equipment and collaboration with the supply chain in delivering the work.

“Better value is what we are looking for – from our contractors, on behalf of the taxpayer,” said Brewwer. “The key point is that the roads they manage on our behalf continue to be maintained to high standards and that we receive good value for every pound of public money which is spent.”

Mel Ewell, Amey’s chief executive, said: “I am delighted Amey has been awarded ASC6.  We have a long and proud history of successful strategic highways service delivery and this award underpins our commitment to remaining a key service provider to the Highways Agency.”

Agency’s East region divisional director David Gingell added: “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."

Key features of the new contracts include:

  • maintenance standards that 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 ‘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.

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