Sixteen road projects at risk of being scrapped

Aaron Morby 8 years ago
Share

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 the Department for Transport’s rush to draw up the RIS in just 17 months, so it could be published 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 2019/20 go 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 project starts in 2019-20.

£11.4bn RIS progress on 112 major projects

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.

It 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% of its savings target of £1.2bn in the final two years of the strategy.

Costs forecast to exceeds available capital funding by £841m, mainly due failure to account for post-project evaluations and IT investment.

Highways England chief executive Jim O’Sullivan said: “We are confident we will deliver our capital programme without overspending our budget.

“So far we have delivered nine schemes on time or ahead of schedule, with one of them, the M25 Junction 30, opening in December 2016 six months earlier than planned.

‘We will be publishing our delivery plan update in June laying out the programme for the current year and again we expect to deliver all of the required work.”

Amyas Morse, head of the National Audit Office, said: “The Department and Highways England need to agree a more realistic and affordable plan if they are to provide optimal value from the Road Investment Strategy.

“Decisive action needs to be taken before the updated delivery plan is published in the summer if shortcomings in the current strategy are not to be carried over into future road investment periods.”

Latest news

Winners revealed for £5.4bn electricity grid upgrade

SP Energy Networks unveils 19 winners - full list
17 hours ago

Malaysian property giant to buy 50% stake in JRL

IJM Land to buy into diversified £800m turnover south east contractor
23 hours ago

Fast-track skills hubs to train 5,000 extra apprentices

Plan for network of 32 skills hubs to rain construction apprentices in half the time
16 hours ago

Luxury house builder files administration notice

£31m turnover Octagon Developments Ltd lodges court notice
1 day ago

Morgan Sindall takes on £22m stalled ISG Cardiff school job

Workplan is being drawn up ahead of restart on Penarth school
24 hours ago

Walker Modular wins bathroom pod deal on student tower

Sealant-free construction method helps supplier dominate student market
1 day ago

Over £600m awarded for decarbonisation projects – full lists

Over 240 public building energy upgrade projects secure cash
2 days ago

Enabling works to start on £130m Huyton town centre regen

Phase one includes a new council HQ, hotel and 72 flats
2 days ago

Ridge buys rival consultant Jubb

Acquisition will see 100 new staff join Ridge
2 days ago

Grainger build to rent pipeline rises to £1.4bn

Rental specialist buys sites in Sheffield and Cardiff to build 600 rental homes
2 days ago

Kier wins Cambridgeshire County council estate upkeep

Firm will provide building and M&E services to 106 buildings across the county
2 days ago

Louvres and solar shading specialist files for administration

Hampshire based ALPS lodges court notice after 25 years in business
2 days ago

Speedy Hire posts a loss in latest results

Hire giant confident of better performance in next six months
2 days ago

Esh to lead next phase of Riverside Sunderland regeneration

Infrastructure work will allow further development of Sheepfolds area
2 days ago

Green light for £1.3bn Edinburgh coastal town revamp

First phase of Granton Waterfront scheme will see Cruden Homes create a new community
3 days ago

Vistry chief operating officer steps down

Earl Sibley exits as his COO role axed for more direct reporting to CEO
3 days ago

House builder Camstead goes into administration

Work stopped on three current sites
4 days ago

Death of piling legend Roger Bullivant

Industry innovator dies after long illness aged 85
3 days ago

ESS Modular went down owing suppliers £7m

Modular specialist owned by ISG owner Cathexis
3 days ago

Builders back farmers in inheritance tax protest

"A rethink is desperately needed" say National Federation of Builders
3 days ago

Willmott Dixon wins £36m leisure centre upgrade

Work to start on historic Westminster 1930s Grade II listed Seymour Centre
3 days ago

Graham wins £100m Cardiff Crossrail phase 1

Work on route to Cardiff Bay to start before end of next year
4 days ago

Laing O’Rourke appoints new European MD

Peter Lyons to take-up new role in February
5 days ago

Profits dip at Stepnell ahead of demerger

Turnover and secured workloads up ahead of restructure
5 days ago

HS2 green bridge deck takes shape

100m-wide wildlife bridge to carry hedgerows and country lane over HS2
4 days ago

1,000-home Wolverhampton city centre scheme in for planning

ECF and council advance City Centre West build to rent scheme
5 days ago

Sisk clinches £54m North London council HQ revamp

Haringey's iconic Grade II listed civic centre to be brought back into use
5 days ago

Ofgem approves £2.5bn Eastern Green Link 1

Work to start next Spring on cable project from Scotland to the north of England
5 days ago

Anglian Water hunts for £1bn delivery partner

Programme delivery partner wil integrate with client team over 15-year plan
5 days ago

Hadden collapse costs supply chain £6.7m

"Highly unlikely" subcontractors will receive anything for their unpaid invoices
5 days ago

Contractor services