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

Principal Transport Planner (Strategy)

£46,731-£49,764
We are looking for an experienced professional to join North Northamptonshire Council as a Principal Transport Planner (Strategy). Sheerness House, 41 Meadow Road, Kettering moving to Haylock House, Kettering Parkway, Kettering NN15 6EY, United Kingdom
Recruiter: North Northamptonshire Council

Highways Capital Delivery Manager

£50,788 - £52,805
To be responsible for the implementation of Welsh Government’s Renewal and Upgrade programme. Baglan, Port Talbot
Recruiter: South Wales Trunk Road Agent

Senior Engineer x 2

£47,532 –£55,620 per annum
Our people are deeply committed to providing excellent services to our residents, doing all we can to make lives as good as they can be. Hounslow (City/Town), London (Greater)
Recruiter: Hounslow London Borough Council

Electrical Design Engineer

Grade 9 £34,314 to £37,938 - Grade 10 £37,035 to £40,476 - Grade 11 £39,513 to £43,693 - Grade 12 £42,708 to £46,731 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

Park Operations Assistant - Thorndon Country Park

Up to £12540.50 per annum
This is a permanent, part time position on an annualised hours contract. This means you will be contracted to work a minimum of 964.59 hours per yea England, Essex, Brentwood
Recruiter: Essex County Council

Senior Highways Engineer

£50,754 – £53,607 per annum
Our people are deeply committed to providing excellent services to our residents, doing all we can to make lives as good as they can be. Hounslow (City/Town), London (Greater)
Recruiter: Hounslow London Borough Council

Highways Capital Lead

£47,754 - £50,788
To be responsible for management of the Regional Highway Capital Delivery Teams South Wales
Recruiter: South Wales Trunk Road Agent

Senior Development Management Engineer

£37,938 - £44,711
In line with our One Coventry Values, we want to ensure that our communities are represented across our workforce Coventry, West Midlands
Recruiter: Coventry City Council

Head of Highways

£66,366 - £85,284 pa
Highway Operations is a large division within the Planning, Growth & Infrastructure. Enfield (City/Town), London (Greater)
Recruiter: Enfield London Borough Council

Director Highways, Transport & Waste Management

up to £120k
There for Nottinghamshire. There for each other. There for you. Nottinghamshire
Recruiter: Nottinghamshire County Council

Director of Highways and Transportation

£126,909
We’re seeking a dynamic and innovative leader to spearhead our Highways and Transportation services. Essex
Recruiter: Essex County Council

Senior Structures Technician

£32,654 - £36,124 plus circa £2000 - £4000 OT (variable
To lead on the planning, delivery and reporting of the highway structures General Inspection programme. Baglan, Port Talbot
Recruiter: South Wales Trunk Road Agent

Assistant Director of Place Operations

£85,962 to £93,267
Bury is a proud and prosperous borough Bury, Greater Manchester
Recruiter: Bury Council

Career Grade Transport Planner (Carer Grade 6-8)

Grade 06 (£29,093 - £32,654) TO Grade 08 (£37,938 - £41,511)
This is a fantastic opportunity to work for a forward thinking and dynamic transport authority located in the heart of the North West Warrington, Cheshire
Recruiter: Warrington Borough Council

Principal Performance and Assurance Manager

£Competitive
We have an exciting opportunity for a highly motivated Principal Performance and Assurance Manager to join our Senior Management Team SBIM Avonmouth, Bristol
Recruiter: Amey

Principal Construction Manager

£Competitive
We are excited to offer a fantastic opportunity for a Permanent Principal Construction Manager to join our dynamic Area 12 West Yorkshire
Recruiter: Amey

Electrician

£Competitive
We are excited to offer a fantastic opportunity for two Permanent Electricians Tingley, Wakefield
Recruiter: Amey

Principal Engineer – Structures Capital Delivery

£43,693 - £47,754
To act as one of the Agent's technical experts for highway structures schemes and related issues South Wales
Recruiter: South Wales Trunk Road Agent

Senior Engineer Programme Management

£36,124 - £39,513
To support the Principal Engineer ensuring effective co-ordination, programming and contract administration. South Wales
Recruiter: South Wales Trunk Road Agent

Senior Engineer – Structures Delivery

£36,124 - £39,513
To support the Principal Engineer Structures (Capital Works) and deputise if necessary South Wales
Recruiter: South Wales Trunk Road Agent
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