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Efficiency
Efficiency
Improved efficiency continues to be an important element in adding value to service delivery. Following our strong performance over the three year Spending Review period to 31 March 2008 when the Highways Agency delivered £238 million of efficiency gains against a stretch target of £200 million we are again aiming to over-achieve our targets. In 2008-09 value for money (VfM) gains of £106 million were achieved against a target for the year of £91 million.
The Highways Agency's latest Spending Review settlement included a target to deliver VfM gains of £144m by the end of the financial year 2010-11. In addition, the November 2008 Pre-Budget Report included a requirement for the Agency to identify a further £150m efficiency savings by 31 March 2011. These additional efficiency savings are expected to include efficiencies arising from the rollout of the Managed Motorways programme as well as the over delivery of the original CSR 07 target.
By the end of March 2009, the Highways Agency identified £66 million of VfM savings through Value Engineering Workshops. Savings are identified through sharing engineering best practice across Highways Agency, which ensures that more efficient ways of working are developed and shared effectively. For example, these workshops have delivered savings through encouraging the re-use of materials found at construction sites and through promoting the recycling of waste from local quarries, both of which can be alternatives to purchasing materials when constructing roads.
Continuous improvement and sharing cost reductions between the Highways Agency and its managing agents, in the delivery of routine and winter maintenance, has enabled several contract renewals for Maintenance Areas to deliver efficiency gains of £23 million. In addition, value for money gains on provider and managed works amounted to £16 million in 2008-09.
The award of the ICT Services Contact in December 2007 has delivered gains of £1 million in 2008-9 and should deliver further VfM gains over the CSR 07 period.




