Why some people are pushing for smart motorways

There’s A LOT of money changing hands on the bank of the s.m roll out!

 

Highways England contractor spend revealed

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Kier Highways was the largest recipient of Highways England spending in the last financial year, Construction News can reveal.

The contractor earned £312m from its work with the government-owned roads body, putting it ahead of both Balfour Beatty and Costain, a Freedom of Information request has revealed.

Kier’s Infrastructure and Overseas arm was also paid £158m in the period, meaning Kier earned a total of £470m (see first table).

The company has been paid £1.56bn from Highways England in the last three financial years, more than any other contractor.

Highways-England_contractor-spend_20-21.jpgDuring the period, Kier continued to deliver maintenance in the client’s Area 9, carrying out response throughout the West Midlands – the largest of Highways England’s areas. The contract is due to expire next year and procurement has started for a company to run the £335m contract for the next eight years. Other areas where it has performed the same function include Hampshire, Surrey and Oxfordshire – known as Area 3 – which it has already won the race to continue in a £190m deal until 2029.

The Balfour Beatty / Vinci joint venture was the second largest supplier to Highways England in the year, receiving £302m of its spending. The JV has worked on different parts of the smart motorways network including the M5 junction 4a-6 and M4 junction 3-12.

Balfour Beatty Civil Engineering and its former JV with Carillion, which is still registered on the client’s payment system, were paid £134m and £46m in the financial year respectively. Balfour was working with Carillion on the A14 Cambridge to Huntingdon improvement scheme and two smart motorway projects when the company went under in 2018.

During 2020/21 Balfour Beatty’s wins included being named on the next ten-year £4.5bn smart motorway scheme, as well as getting the green-light to start on Highways England’s £355m improvement scheme for the A63 Castle Street, in Hull, East Yorkshire.

Highways-England_contractor-spend_19-20.jpgA-One Integrated Highway Services received £167m in the year, the third highest single payment. It is a joint venture comprised of Jacobs, Colas and Costain that manages Highways England assets. Costain itself also received £167m directly, as well as £142m in its smart motorways joint venture with Galliford Try, and £42m as part of its JV with Skanska on the A14 upgrade.

Among Costain’s wins in the period was a place on a £300m advisory framework for its £27bn Roads Investment Strategy (RIS2). RIS2 has been subject of a legal challenge to the Department for Transport over allegations the government did not consider its effects on the UK’s carbon emissions targets, but last week a judge ruled the DfT had met its legal obligations and threw the case out.

Costain and all its associated joint ventures received £515m in the period, ahead of Balfour Beatty and its connected JVs’ total of £482m and Kier’s £470m.

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