Issue details

The two significant Highway Service delivery maintenance and improvement works contracts need their Service Period Extensions agreed by the 1st April 2024. The current contracts end March 2026.
Contract Procurement and Extension Information
• Highway Maintenance & Improvement Works Term Contract
This contract was procured in 2018 utilising a Competitive Procedure with Negotiation approach. VolkerHighways were successful and this contract commenced on 1st April 2019.
The initial service period was 7 years with an allowable extension of 36 months (3 years) allowing a maximum service period of 10 years after the starting date.
Under the Contract Scope the Council as Client takes into account performance against the Key Performance Indicators (KPIs) when considering whether or not to offer an extension to the Service Period. However contractually performance against the KPIs is not a criteria for extension.
• Highway and Public Realm Lighting Maintenance and Improvement Contract
This contract was procured in 2019 utilising an Open Procurement approach. VolkerHighways Street Lighting Division were successful, and this contract commenced on 1st April 2020.
The initial service period was 5 years with an allowable extension of 48 months (4 years) allowing a maximum service period of 9 years after the starting date. These timescales would allow its end date to be aligned with the Highway Maintenance & Improvement Works Term Contract.
As for the Highway Maintenance & Improvement Works Term Contract, within the Contract Scope the Council as Client takes into account performance against the Key Performance Indicators (KPIs) when considering whether or not to offer an extension to the Service Period. However contractually performance against the KPIs is not a criteria for extension.
3. Contracts Review
Both contracts were tendered under the New Engineering Contract version 4 Term Service Contract Conditions. This style of contract is very much a collaborative working contract underpinned by the spirit of mutual trust and co-operation. The contracts have been operating for nearly five and four years respectively. A lot of work has been undertaken on both to ensure a collaborative working approach with additional benefits as one team to deliver two essential areas of work for the Council around highway infrastructure management.
Excellent governance is in place around quarterly strategic board meetings and monthly contract operational meetings, the KPI’s are reported on a monthly basis to the monthly operational meetings and presented for review at quarterly strategic board meetings.
Recent contract successes have included:
• the ISO44001 accreditation recognising collaborative business system.
• Full marks on the last Considerate Contractor Assessment.
• International Green Apple Gold Environment Award
VolkerHighways approach to both collaboration and embracing innovation has underpinned a good working relationship.