Highways Agency - Safe roads, Reliable journeys, Informed travellers

DBFO projects in the pipeline

Introduction

In a recent speech (spring 2004), Steve Rowsell, the Highways Agency director for procurement, outlined future developments in the delivery of privately funded road schemes in England. Highways Agency's Procurement Strategy stated that the spending plans included in the 10 Year Plan allow for 25% of the additional capital investment in the trunk road and motorway network coming from private finance.

The process

A consultation document, "Improving DBFOs" , was published in 2003. The aims were to:

• ensure best value is achieved throughout the life of the contract providing continuous improvement
• speed up delivery
• minimise transaction costs for all parties
• select suppliers on the optimal combination of quality and price
• secure the benefits of early contractor involvement
• incentivise innovative solutions
• improve the flexibility of the contract
• maintain a competitive and sustainable market

The document provided an opportunity for the industry to help shape future DBFO procurement and operations. Over 50 responses were received (figure 4.1 shows a breakdown of the types of respondents). Following the consultation, a working group has been established to review the responses and workshops/ dialogues which are taking place with selected respondents.

The three principle messages received from the respondents were that the Agency should work towards:

• larger scale projects
• speeding up the DBFO tender process
• incorporation of early contractor involvement principles into DBFO