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Kier and CH2M Costain JV win Highways England maintenance deals

Kier and CH2M Costain have scooped more than £250m of highways work in the North of England.

Highways England awarded Kier Highways the maintenance and response deal for Cumbria, worth approximately £140m.

A joint venture of CH2M and Costain scooped the equivalent contract for the North-east, valued at around £120m.

Both deals will span 15 years from April 2017 and come under the client’s new-style asset delivery structure.

These deals see Highways England take decision-making on maintenance and improvement work back in-house, and let contracts in each area for design, construction and maintenance work.

The first of the new-style of contracts began operation in the East Midlands region in July this year.

In addition, two new five-year design services contracts, with an expected total value in excess of £38m, have been awarded to Amey OW – one covering Cumbria and north Lancashire, the other the North-east.

Highways England executive director for commercial and procurement David Poole said: “The awarding of these four new contracts builds on the new way of working already taking place in the East Midlands and is a real change in the way we have previously operated the network.

“These contracts demonstrate our commitment to increasing capability and understanding within Highways England and bringing Highways England closer to our customers.

“Collaboration with our supply chain is key to our new way of working and we are looking forward to establishing a successful, long-term relationship with the appointed contractors.”

Further contracts will be awarded for specialist goods and services in the coming months and suppliers will be appointed to the new framework for delivering construction works in late January.

The asset delivery maintenance and response contracts and the design services contracts will commence in these areas when the current managing agent contracts – A-one+ in the North-east and Kier in Cumbria and north Lancashire – come to an end.

Highways England will be working with the successful contractors to ensure they are mobilised and ready to begin delivering key services from 1 April 2017.

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