Sixteen road projects at risk of being scrapped

Up to 16 major roads projects are at risk of being scrapped because they are not value for money, according to a report by the Government’s spending watchdog.

The National Audit Office revealed the plans were on hold in an assessment of progress on the Road Investment Strategy published today.

The report also warned that Highways England was struggling to deliver a step change in project starts because of challenges in recruitment of staff to cope with the increased workload.

Highways England plans to procure contracts for 57 projects this year, compared to six in 2016. But is 19% below its target headcount for procurement and commercial specialists who are in high demand.

It has been filling gaps with consultants and interim staff, who cost on average three times more than permanent employees.

The NAO blamed some of the agency’s budgetry and delivery problems on its haste to drawn up the RIS  in just 17 months, in order to publish it before the May 2015 General Election.

This meant projects were selected without knowing whether they would be the best value.

The report also warns of a supply bottleneck and significant disruption to motorists if 54 of the 112 projects currently scheduled to start in 2019/20went ahead.

Highways England is now reviewing the portfolio of enhancement projects to improve value for money, and has so far identified the 16 unnamed projects which present a risk to value for money.

One is thought to be a controversial tunnel past Stonehenge.

The report says that Highways England and the Department are exploring several ways to manage risk, including revising project design, cancelling projects or delaying projects to enable further assessment of benefits.

Chiefs at Highways England have also developed options to bring forward the start dates of up to 10 projects and to delay up to 19 to reduce the number of projects due to start in 2019-20.

RIS so far

So far Highways England has completed six projects on or ahead of schedule and has started construction on a further 19, with 16 planned to be on or ahead of schedule.

Highways England forecasts that these projects will be delivered 5% over budget.

Highways England met its efficiency savings target of £33m for 2015-16, and expects to exceed its target for 2016-17, but it has to achieve 70 per cent of its savings target of £1.2bn in the final two years of the strategy.

from Construction Enquirer http://www.constructionenquirer.com/2017/03/22/sixteen-road-projects-at-risk-of-being-scrapped/

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