Innovative Organisational and Procurement Strategies in the Management of Highway Networks, an Examination of England’s Road Administration

In their quest to become highly efficient and professional asset managers in maintaining their roadnetworks and delivering a programme of network improvements some road administrations haveundergone significant changes in the way they operate in order to become more efficient and provide amore effective road network.The Highway Agency (HA), an executive agency of the Department of Transport, which is responsiblefor the management and development of England’s motorway and trunk road network, has a dedicatedprogramme of change to deliver best value solutions and services to customers, and is therefore amodel worthwhile of examination.Whilst the HA has an annual expenditure of currently £ 2,1 billion and anticipates a level ofinvestment of £ 21 billion over the next 10 years, it purchases 95 % of all its work from externalsuppliers. It already embraces new forms of contract based on improved effectiveness in relationsbetween internal and external partners at all stages of the supply chain. It also has implemented 10Design, Build, Finance and Operate (DBFO) road schemes in the past with different payment systemsof either shadow toll, availability and active management. The HA’s most challenging project over thenext decade will be the widening of the M25, the London orbital motorway, through a DBFO contractover 30 years with contract award planned in 2008....