Amey and Carillion fight to cut £40m from highways job

Amey and CarillionMouchel have put in detailed bids for the Sheffield Highway Maintenance PFI Project outlining how they will save £40m in road repairs.

Both bidders submitted detailed plans to the council this week highlighting how they would cut costs on the contract.

The Department for Transport was originally going to provide £1.25bn in finding for the scheme but that was cut to £1.21bn in the Comprehensive Spending Review.

Sheffield council will now evaluate both bids and a preferred bidder will be selected in December with the contract set to start in April 2012.

John Mothersole, Chief Executive of Sheffield City Council, said: “During the past year, the Council has worked very closely with the Bidders to ensure that they will be able to meet all the Council’s requirements, offer value for money and, above all, offer affordable solutions.

“At the same time we have faced a number of challenges as we worked with central Government to identify the efficiency savings which they and the Council needed to find to improve the affordability of the Project in the current economic climate.

“I’m pleased to say that we have now found these savings and that this has been achieved without the need to make any changes to the overall look and feel of the Project.

“We are delighted to be working with two such strong Bidders, who each have proven track-records of delivering high quality services for Local Authorities.

“We are expecting it to be a tough choice as to which we pick, but we are now on the last leg of our competition and, whichever bidder wins, we can be confident that they will be fully committed to providing excellent services which will improve and maintain Sheffield’s highway network to the standard our City deserves.

“This is one of the largest and most complex PFI contracts in the country and it is imperative that we select the right contractor for the job and for the Council.

“This investment in our highway network and making the much needed improvements in our highway network system will transform our City and provide enormous benefits for all residents, businesses and visitors.”

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