Birmingham members reserve final say on Amey settlement

23/05/2019 | MARTIN FORD

The final details of a settlement between Birmingham City Council and highways contractor Amey will go before senior councillors next month.

Council leaders decided that the full cabinet should have the final say on the deal as the two parties negotiate an early end to the 25-year contract, rather than delegating to officers in consultation with the finance and transport portfolio holders.

At a meeting on Wednesday, finance cabinet member, Cllr Tristan Chatfield, said: ‘A settlement from Amey has to provide for repairing roads to the right standard, but also meeting the liabilities that Amey proposes to leave behind.’

However, he said that there was a potential risk to the PFI (Private Finance Initiative) grant worth £51.9m every year to Birmingham.

The council will have to submit a revised business case to the Department for Transport for approval when a new subcontractor is appointed, under the existing contracting vehicle.

Disputes arising over the council’s claims of ‘contractual failings’ and ‘inadequate’ work have dogged the contract, ending in the Court of Appeal with a ruling in favour of Birmingham, ordering Amey to pay £54.95m plus interest.

Lib Dem group leader, Cllr Jon Hunt, said: ‘The leadership, in terms of transport services, provided at cabinet was weak.

'A fundamental rethink about how the council handles contracts, monitors them, picks up problems and deals with them moving forwards is probably something very important at this point.’

However, Cllr Chatfield responded: ‘We shouldn’t make any apology for the very strong contract management that has been applied in this instance.

'The PFI contract was a means of obtaining investment in our roads.

'However, an acceptable deal for our city balances the financial aspects with the service delivered.’

The process of transferring the service from Amey to a new subcontractor will take a maximum of two years, but the council said it would continue to invest in the network during the handover period.

Council leader, Cllr Ian Ward, added: ‘The episode demonstrates that outsourcing is not the silver bullet some people have made it out to be in the past.’

This article first appeared on our sister publication themj.co.uk.

Highways InProfile

latest magazine issue
Highways jobs

Highway Design and Construction Manager

Grade N, scp50 £62,443 to scp53 £65,663 per annum, plus essential car user allowance
We embrace AI to enhance our operations and to innovate our services. Bolton, Greater Manchester
Recruiter: Bolton Council

Asset Senior Maintenance Engineer (CDC)

Grade 10, £47,154 – £51,235
Do you have a positive approach to work and enjoy the challenge of a busy role? Doncaster, South Yorkshire
Recruiter: City Of Doncaster Council

Structures Engineer

£40,777-£45,091
We are seeking to recruit a Highway Structures Engineer - Asset Management Graded 11. The post holder will be responsible for undertaking the workloa Durham
Recruiter: Durham County Council

Arboricultural Consultant

£36168.0000 - £42551.0000 per annum
Arboricultural ConsultantPermanentFull Time, 37 hours per week£36,168 to £42,551 per annumLocation
Recruiter: Essex County Council

Flood Risk Engineer - Epping Forest District Council

£40.0000 - £45.0000 per hour
Flood Risk Engineer Epping, EssexFull-Time, Temporary 37 Hours per Week 3 Months Contract* £40-£45 per hour, Umbrella Closing Date
Recruiter: Essex County Council

Senior Engineer

Starting Salary from £43,545 based on skills and
Job TitleSenior Engineer (x2 v... Frogmore Complex, Wandsworth, London,
Recruiter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Electrical Design Engineer

Grade 9 £35,412 to £39,152 - Grade 10 £38,220 to £41,771 - Grade 11 £40,777 to £45,091 - Grade 12 £44,075 to £48,226 p.a.
The Construction Consultancy Services (CCS) team provide client-side construction consultancy services across a range of professional disciplines to d Durham
Recruiter: Durham County Council

Street Lighting Electrician CDC

Grade 8, £33,708 - £37,399
Highways Operations is a growing service area within the Place directorate. Doncaster, South Yorkshire
Recruiter: City Of Doncaster Council

Assistant Traffic Management Technician - WMF2311e

£26,403 - £26,824
This is a predominantly office-based role with some site visits required. Penrith, Cumbria
Recruiter: Westmorland and Furness Council

Senior Lawyer Planning and Highways - WMF2312e

£56,883 - £59,198
To be a success in our Legal Team you will have experience as a Planning and Highways Lawyer Cumbria / Various
Recruiter: Westmorland and Furness Council

Street Cleansing Operative

£26,403.00 - £28,142.00, Grade 5, 37 hours, Permanent
An opportunity exists in the Council's Street Scene Services for a Street Cleansing Operative Wakefield, West Yorkshire
Recruiter: Wakefield Council

Civil Engineering Technician (HDM)

Grade 4 - Grade 6
Do you want to join a team helping to shape the future of Wakefield through Highways Development Management? Wakefield, West Yorkshire
Recruiter: Wakefield Council

Highways Maintenance Operative Apprentice

£28,729.00 per annum (Subject to review)
As part of your apprenticeship, you will be enrolled onto a Lead Traffic Management operative course Staffordshire
Recruiter: Amey

Highways Maintenance Operative Apprentice

£28,729.00 per annum (Subject to review)
As part of your apprenticeship, you will be enrolled onto a Lead Traffic Management Operative level 2 apprenticeship Goole, East Riding of Yorkshire
Recruiter: Amey

Highways Maintenance Operative Apprentice

£28,729 (Subject to review)
As part of your apprenticeship, you will be enrolled onto a Lead Traffic Management Operative level 2 apprenticeship Rothersthorpe, Northampton
Recruiter: Amey

Head of Design Services

£77,536 - £83,366
You will lead the delivery of a high-performing Technical Services Partnership (TSP). Lincolnshire
Recruiter: Lincolnshire County Council

Highways Maintenance Operative Apprentice

£28,729.00 per annum (Subject to review)
As part of your apprenticeship, you will be enrolled onto a Lead Traffic Management Operative level 2 apprenticeship Ecclesfield, Sheffield
Recruiter: Amey

Highways Maintenance Operative Apprentice

£28,729.00 per annum (Subject to review)
As part of your apprenticeship, you will be enrolled onto a Lead Traffic Management Operative level 2 apprenticeship. Barnsley, South Yorkshire
Recruiter: Amey

Highways Maintenance Operative Apprentice

£28,729.00 per annum (Subject to review)
As part of your apprenticeship, you will be enrolled onto a Lead Traffic Management Operative level 2 apprenticeship Knottingley, West Yorkshire
Recruiter: Amey

Civil Enforcement Officers x 2

£26,403.00 - £28,142.00, Grade 5, 37 hours, Permanent
Parking Services are looking to recruit 2 full time Civil Enforcement Officers to complement its existing workforce. Wakefield, West Yorkshire
Recruiter: Wakefield Council
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW