Scottish Government announces A9 procurement overhaul after rise in costs

Transport Scotland has moved away from individual contracts to complete the remainder of its A9 dualling programme, worth a total of £1.9bn, and is instead setting up a framework.

Market engagement starts next month (March) for a four-year framework to cover the five remaining sections between Perth and Inverness. This work will be let via call-offs from a single framework and could, depending on feedback from contractors, include a lotting structure.

Scotland's transport secretary Fiona Hyslop told the Scottish parliament that the reason for the switch was that the mutual investment model (MIM) contracts used on the earlier parts had proved more expensive.

Ms Hislop said: ‘Our updated financial modelling indicates that the cost of MIM contracts is now around 28% higher than the cost of equivalent capital-funded contracts—an increase from the 16% difference estimated in 2023.

‘The increased difference is primarily linked to the fact that the expected costs of borrowing for each MIM contract are now around 2% higher per annum, which reflects macroeconomic factors impacting on borrowing costs.'

So far, Balfour Beatty, Wills Bros and John Paul have all won work on the earlier stages. Balfour Beatty, Wills Bros and Kier are also currently bidding for the £206m package covering works from Pitlochry to Killiecrankie, which is due to be awarded this Autumn.

The new framework will cover design and construction of dual all-purpose carriageway, including bridges, junctions, earthworks and environmental mitigation, on the remaining 90km of upgrade.

A9 – REMAINING PROJECTS