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Transforming London’s Highways Management

This initiative aims to improve the highway maintenance and management service in London by working with suppliers and boroughs to identify opportunities for savings and improve relationships. It includes a Supplier Relationship Development program and the development of common specifications and contracts. The project also explores the use of e-auctions and aims to standardize highway management systems across boroughs.

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Transforming London’s Highways Management

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  1. Transforming London’s Highways Management • Capital Ambition • London Councils • OGC • LoTAG

  2. Need for Change • The whole supply chain is facing challenges • TfL working with the Boroughs has identified opportunities for savings across London in terms of the highway maintenance and management service. • TfL are working with LoTAG, OGC, Capital Ambition, and London Procurement Heads

  3. Work Streams

  4. Supplier Relationship Development • Supplier Relationship Development is the process of improving existing contracts for the mutual benefit of both suppliers and customers. • Sponsored by Capital Ambition, previous work examined suppliers in the waste and social care sectors • Working with two highways contractors in London as a pilot

  5. Supplier Relationship Development • Questionnaires sent to Boroughs asking them to rate their supplier experience • Performance, Relationship, Service delivery, Billing etc. • Sharing and comparing these with suppliers experience of Boroughs • Boroughs and Suppliers are nominating negotiating teams

  6. Results from Questionnaire – Borough Highlights and other points • No discounts offered for prompt payments by Boroughs • Little use made of shift/extended hours to get work done • Wide range of opinion about visibility/transparency of costs & charges – 5 x Boroughs scored <=2; 4 x Boroughs scored => 7

  7. Next Steps Analyse CAF; Identify Negotiation Areas/Teams Negotiation Planning meetings Negotiation Planning meetings 1-1 Interviews Sept 2010 Nov 2010 Dec 2010 Jan 2011 Feb 2011 Oct 2010 Mar 2011 Feedback “Reverse” CAF Supplier 1-1 interviews; “Reverse “ CAF Design & Issue CAF CAF = Contract Assessment Framework

  8. SRD outcomes • Strengthen existing relationships • New dialogue with clients • Develop commercial fitness • Improve infrastructure and process • Deliver best value services • Develop client facing strengths • Prepare for collaboration

  9. Common Specification and T&Cs • Key theme through all of the discussions • Widespread support • Build on the previous LoTAG work in reducing the number of specifications across London • Full time joint TfL/Borough team established • We need secondments from Boroughs to help develop the new contracts

  10. Common Specifications and Contract Conditions Structure Team Borough Technical reps Borough Commercial / Procurement reps

  11. Common Specification and T&Cs • Champions in each Borough being indentified • Reviewing copies of existing contracts to identify areas of best practice • Challenging technical specifications • Engaging with the supply market via HTMA • Learning from others

  12. Common Contracts • Target date April 2013 earliest • Sections may be complete earlier • Available to Boroughs, City of London and TfL • New contracts based on cost not price • Provision for client supplied materials • Geographic split

  13. East London Solutions • Havering and Barking & Dagenham • Pathfinder project • To try and achieve some savings prior to implementation of the pan London contracts • East London Solutions (ELS) Group is looking to develop an interim common specification for contracts going out from 2011 onwards within their area.

  14. Highway Systems Commonality • The three dominant systems Confirm, Symology and Exor. • Looking at the software systems in use by the boroughs and any commonality. • Looking at opportunities to allow data transfer between existing highway management systems. • Suppliers biggest problem

  15. E-Auctions • For commonly used highway maintenance commodities and services • Aggregate demand across London and to create competition through the use of e-auctions. • The first stage of the project is in two phases: • Electrical testing of street lighting, illuminated signage and bollards.   • Material purchasing such as street lighting lamps and signage, concrete/ natural kerbs and flags

  16. Work Themes in Progress • Governance and Collaboration • Developing a new structure • Standardisation • Developing a common way of working • Culture Change • New contracts require a new way of working

  17. Thank You Dana SkelleyDirector of Roads Transport for LondonLondon Streetsdana.skelley@tfl.gov.uk

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