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Highways England's £8.7bn framework: Initial work winners revealed

Highways England has revealed the 13 winning contractors for its £8.7bn regional framework, as well as who will deliver the initial 18 packages of work under the deal.

Costain emerged as one of the biggest winners with places on the two highest-value lots of the framework, which will design and deliver projects on English motorways and major A roads from 2018 to 2024.

The framework is split into eight regional lots, with 1-3 covering individual packages worth under £100m, while 4-8 involves packages worth more than £100m.

Costain, Galliford Try and Skanska won places on the £2.8bn East of England lot 7, while Costain was joined by Balfour Beatty and Kier on the £2bn lot 8 covering the North-west, North-east, Yorkshire and the Humber.

As well as Costain, Balfour, Bam Nuttall, Galliford and Skanska all picked up two places each across the higher-value lots 4-8 (see full winners table).

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Among the winners of lots 1-3 was Sir Robert McAlpine in joint venture with Amey, which secured a place on the £200m North-west, North-east and Yorkshire lot.

The contractor revealed in 2016 that it was targeting a return to civils, aiming to secure a fifth of its revenue from civils work by 2019.

In an interview with CN earlier this year, CEO Paul Hamer stopped short of committing to 20 per cent civils, but added he wanted to ”build a base civil infrastructure business” and establish joint ventures. 

Highways England regional framework winners

Lot Regions Total value Individual packages Winners
1 South-west and Midlands £200m Up to £100m Alun Griffiths-Farrans JV | Osborne
2 South-east and East of England £350m Up to £100m John Graham Construction | VolkerFitzpatrick
3 North-west, North-east and Yorkshire £200m Up to £100m Amey-Sir Robert McAlpine JV | North Midland Construction
4 South-west £800m More than £100m Galliford Try | Taylor Woodrow
5 Midlands £1.25bn More than £100m Bam Nuttall | Skanska UK
6 South-east £1.1bn More than £100m Balfour Beatty Civil Engineering | Bam Nuttall
7 East of England £2.8bn More than £100m Costain | Galliford Try | Skanska UK
8 North-west, North-east and Yorkshire £2bn More than £100m Balfour Beatty Civil Engineering | Costain | Kier Highways

In addition to the winners on each of the lots, Highways England also released details of which contractors would deliver the first 18 packages of projects under the framework.

Six of the 18 packages in this first tranche fall under lots 7 and 8 – the two highest-value bands.

Schemes within these first packages are being taken forward under Highways England’s current RIS1 funding cycle. The second tranche of work will be confirmed at a later date once the second road investment strategy (RIS2) is finalised.

Among the allocated projects, John Graham will make improvements to the M25’s junctions 25 and 28, Skanska will deliver works on junction 6 of the M42, and Galliford Try will oversee various upgrades to the A47 including dualling (see full project allocation table).

The framework has been developed under Highways England’s new Routes to Market approach, which marks a move away from procurement on a scheme-by-scheme basis and aims to provide more secure pipelines of work.

Highways England chief executive Jim O’Sullivan said: “Routes to Market represents a fundamental change in the way we deliver road projects.

“It will be performance rather than price-based, focusing on building the right projects with the best outcomes for road users and the communities we serve.

“It demands a major step up in our supply chain to embrace innovation and team work and in their ability to deliver value.”

Costain said it expected to recoup work worth worth £1.5bn to the company over the framework. Its chief executive Andrew Wyllie said: “We look forward to bringing our expertise in management of complex investment programmes to support Highways England with its ambitions for this framework.”

Balfour Beatty said the framework would be worth an initial £425m for the first tranche and committed to using offsite techniques as well as 5 per cent of its employees being apprentices.

The Amey Sir Robert McAlpine JV said it would use its membership of the Manufacturing Technology Centre in Coventry to ”bring transferable knowledge from other sectors to contribute to Highways England’s planned Centres of Excellence – helping to drive innovation across the highways sector”.

North Midland chief executive John Homer said: “We welcome the step change Highways England is taking to deliver improvement regionally by involving communities at a local level.

“We will work collaboratively with Highways England, other framework contractors and stakeholders to achieve shared success and deliver maximum benefit through our projects.”

Highways England framework: First tranche of works

Package Lot Contractor Projects in the package
A1 1 Alun Griffiths-Farrans JV A5 Dowdwells to Longshot widening
A2 1 Osborne  A46 Coventry junctions upgrade | A46 Coventry junctions Walsgrave
A3 2 VolkerFitzpatrick East of Lewes STM (A27) | M3 J9 Iimprovement
A4 2 John Graham Construction M25 J25 / J28 improvement | M2 Junction 5 improvement
A5 3 North Midland Construction M621 junction improvements 
A6 3 Amey-Sir Robert McAlpine JV M56 J11a | M6 J19
B1 4 Galliford Try A303 Sparkford - Ilchester 
B2 4 Taylor Woodrow A30 Chiverton to Carland Cross 
B3 5 Skanska UK M42 Junction 6 | A52 Nottingham
B4 5 Bam Nuttall A38 Derby junctions | M54-M6 Toll PEP
B5 6 Balfour Beatty Civil Engineering M25 J10/A3 Wisley Interchange | A2 Bean Ebbsfleet
B6 6 Bam Nuttall A27 Arundel bypass | A27 Worthing and Lancing improvements | M27 Southampton junctions
B7 7 Galliford Try A47: North Tuddenham to Easton, Blofield to North Burlingham dualling, A12 junction enhancements, A11 junction, Guyhirn junction, Wansford to Sutton
B8 7 Skanska UK A428 Black Cat - Caxton Gibbet
B9 7 Costain A12 Chelmsford A120 Widening
B10 8 Costain A1: Scotswood to N Brunton, Birtley to Coal House widening, Morpeth to Felton dualling, Alnwick to Ellingham
B11 8 Kier A5036 Port of Liverpool, A585 Windy Harbour - Skipool
B12 8 Balfour Beatty Civil Engineering A19 Norton to Winyard, A57 (T) to A57 Link Road

 source: www.constructionnews.co.uk

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