14 November 2007 | Antony Barton
A framework agreement for road construction and maintenance has been launched to help speed up procurement and make annual savings of 3 per cent.
The Midlands Highways Alliance (MHA), which comprises 10 councils and the Highways Agency, has chosen Balfour Beatty/Birse, Carillion, Osbornes/Aggregate Industries and Tarmac for the MHA Medium Schemes Framework.
The framework was created for new highways projects valued at up to £8 million each. The MHA predicts its local authority members will procure work worth around £48 million in the first year through the framework, with the Highways Agency set to procure projects worth a further £50 million.
Matthew Lugg, director of highways, transportation and waste management at Leicestershire County Council, one of the alliance members, told Supplymanagement.com the four-year framework agreement should provide cashable annual savings of 3 per cent. He said the agreement is likely to be extended if it proves successful.
The MHA also expects annual spend through the framework to increase to £150 million in the next few years. This is because public bodies will be under increasing pressure to seek more efficient procurement as a result of spending cuts.