Delivering Transformation in Highway Maintenance TAG Seminar London 21 st May 2015

Matthew Lugg OBE Director of Public Services at Mouchel HMEP Advocate

Topics covered The Self Assessment Questionnaire Latest HMEP products including:- The Revised HMEP Standard contract HMEP Method of Measure & Schedule of Rates The HMEP Highway Infrastructure AM E- Learning Toolkit

Incentivise Fund Capital maintenance

Context Local highways maintenance funding: 2015/2016 to 2020/2021 Headlines announced by DfT on 23 December 2014: “£6 billion over the next 6 years for maintenance of local highways: –£4.7 billion shared between 115 councils (needs-based formula) –£575 million through a new Challenge Fund to help repair and maintain local highway infrastructure. –£578 million set aside for an incentive fund scheme from 2016 To reward councils who demonstrate they are delivering value for money in carrying out cost effective improvements (linked to good asset management and efficiencies).”

The incentive element and funding formula The incentive element Year 15/16 16/17 17/18 18/19 19/20 20/21 Band1 100% 90% 60% 30% 10% 0% Band 2 100% 100% 90% 70% 50% 30% Band 3 100% 100% 100% 100% 100% 100% The incentive funding formula 0% 5.1% 7.7% 15.5% 15.5% 15.5% £0.0m £50m £75m £151m £151m £151m

About the Self Assessment Questionnaire Supports DfT’s incentive element of future funding A draft of the self-assessment questionnaire and guidance, has recently been considered by the HMEP Board. The questionnaire will now be beta-tested with a view to it being available for full trial use this year. Employing it for funding allocation would start from 2016/17

Banding categories Band 1 : Early stage authority Band 2 : Mid stage authority Band 3 : Final stage authority

Suggested Guidance to LHAs The questionnaire will be collected annually via the Single Data List Item in relation to highway data The questionnaire must be signed off by the Authority’s Section 151 Officer In answering the questions Authorities must be able to show the supporting evidence (as described in the instructions) The results of the questionnaire should be shared with the Councils Executive and made publicity available

Attributes covered Asset Management Service Delivery Collaborative working Customer Focus

Developing Assessment Self assessment Questionnaire HMEP recommendations Gaps in HMEP Feedback from sector

Maturity Journey Band 1 – Innocent to understanding Band 2 - Basic to Competent Band 3 - Proficient to advanced

AM Questions Asset management questionsScore 1Communications 2Asset Management Policy and Strategy 3Perfromance Management Framework 4Asset Data Management 5Lifecycle Planning 6Leadership and Commitment 7Competencies and Training 8Risk Management 9 Performance Monitoring Total

Resilience, Customer & Benchmarking questions Resilience questions 10Resilienet network 11Implemented pothole review 12Implemented the Drainage Guidance Customer questions 13Satisfaction 14Feedback 15Information Benchmarking and efficiency questions 16Benchmarking 17Efficiency monitoring

Operation service delivery questions Operational service delivery questions 18 Periodic review of operational service delivery 19Supply chain collaboration 20LEAN reviews 21Works Programming 22Collaborative working 23 Procuring external highway maintenance services Total

Standard suite of contract documents Official Journal of the European Union – Procedures HMEP Notes for Guidance Prequalification Questionnaire Instructions for Tenderers and Notes for Guidance The form of Contract - Agreement and Contract Data - Service Information - Partnering Information - Notes for Guidance

Review of the Standard contract Updated NEC3 Term Service Contract (TSC) released in April 2013 Feedback from earlier enablers- Bracknell, Wirral and development aspects released to others Feedback from the HTMA following their paper ‘Obtaining Best Value from Constrained Budgets’ HMEP considered that a review was needed and that this should be completed before the release of the HMEP Term Maintenance Document Compiler

Collaborative Efficiency Initiative Collaborative Working Group - HMEP, ADEPT (Hampshire/Devon) & HTMA Starting Point - Obtaining Best Value from Constrained Budgets Development of a standard Price List and Method of Measurement specifically for Highways Term Maintenance Services Streamlined to focus on key Items for effective operational use

Schedule of Rates Quantity Banding aligned to methods of delivery, gang size and productivity thresholds Establishment Items – encouraging cost effective work packaging Summation of Quantities - Kilometre Rules (5km & 1km dia.) Extra Over rates apply for small or unpackaged items of work Patching – Individual items for patch sizes with quantities aggregated to Kilometre Rule

Effective Pricing Rates with no hidden costs: Traffic Management paid when used (except Give & Take and Pedestrian Barriers type TM) Temporary Works for Structures – only paid when required Working over/in water – only paid when required Temporary Site Accommodation – only paid when required (Over 5 days duration) Excavation for Kerbing – only paid when required Item for Basic Facility for Fixed Contract Overhead for provision of the Service - Turnover related Site Overheads in the rates (People – Staff)

Standard Term Maintenance Contract Document Complier HMEP is developing an electronic document compilation system that will: Provide one term highway maintenance contract for local highway authorities Standardise the specification, method of measurement, schedule of rates and standard details Develop additional guidance documents Reduce LHA staff time spent on updating contract documents

Standard Term Maintenance Contract and Document Complier HMEP Term Maintenance Contract and Document Complier HMEP Expansion to Specification and Standard Details HMEP Standard Form of Contract HMEP Standard Specification and Standard Details Method of Measurement and Schedule of Rates

Asset Management e- Learning Toolkit Process £60k awarded by HMEP in June ‘14 Atkins appointed through the Surrey supply chain to deliver the final stages of the product. Five modules. Modules based on those prepared by the Highway Agency Programme of development split into five phases and due to be completed by the early in 2015 Development of the modules is now under way Reference group, acting as sector representatives, established to review content

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