Lincolnshire Highways Alliance, Lincolnshire, England

Lincolnshire Highways Alliance, Lincolnshire, England
  • location:
    Lincolnshire, England
  • Value:
    £450 million
  • Contracts Used:

    TSC, PSC

  • Start-Finish:
    April 2010 - March 2015
  • Employer:
    Lincolnshire County Council
  • Contractor:
    May Gurney, Peek, Mouchel Highways
  • Project Manager:
    Lincolnshire County Council

In 2010 Lincolnshire County Council signed three NEC3 contracts worth up to £450 million for highways maintenance, traffic signalling and design support. The two Term Service Contracts with May Gurney and Peek and a Professional Services Contract with Mouchel Highways were all for five years with the option to extend to ten.

Paul Rusted, Head of Highways Service Development and Project Manager, says, "The Term Service Contracts were let using target-cost option C in a change from the council's previous ICE schedule-of-rates approach. Design services are provided through the Professional Services Contract option G term option, which allows us to supplement our existing internal design service group as and when."

Alliance created with option X12

The council wanted to enhance the co-operation and mutual partnering elements of NEC3 by setting up an alliance between the council and its three contractors. "Rather than creating a separate and additional legal entity, this has been achieved through the incorporation of a partnering option X12 in all contracts," says Ross Hayes of Anthony Collins Solicitors, which advised the council.

Incentivising efficiency and value for money has been achieved in a number of different ways. "For the Term Service Contractor the gain share is adjusted to reflect performance as measured against a series of performance indicators," says Hayes. "The Professional Services Contract has its own incentive payment process, which rewards the consultants performance."

Incentives based on alliance performance

A further incentive was provided by making part of the incentive payments dependent on the total performance of all the alliance partners together. Poor performance by the council can cancel out some or all of the impact on incentives of poor performance by the other members of the alliance, says Hayes.

Rusted says the arrangements are working well so far and the process of choosing the three contractors and setting up the NEC3 contracts has been a resounding success.

Benefits of NEC3

  • NEC3 Term Service Contract and Professional Services Contract enabled three different disciplines highway maintenance, traffic signalling and design support to be contracted under harmonised NEC3 terms.
  • Alliance created between employer and its three contractors by using option X12 in all contracts, further enhancing co-operation and mutual partnering elements of NEC3.
  • Incentivising efficiency and value for money achieved using gain share and performance indicators in Term Service Contract and incentive payment process in Professional Services Contract.
     

Further Information

Contact: Paul Rusted, Project Manager, Lincolnshire County Council
Tel: +44 (0)1522 552 222
Email: paul.rusted@lincolnshire.gov.uk
Web: www.lincolnshire.gov.uk

Back to Previous PageBack

NEC CONTRACT FINDER

Not sure which
contract you need?
Start Finder

Q2. What is the risk / complexity level of your project?

Q2. What is the risk / complexity level of your project?

Q2. What is the risk / complexity level of your project?

Q2. What is the risk / complexity level of your project?

Q3.What type of contract do you require?

Q3.What type of contract do you require?

Engineering & Construction Short Contract The Engineering & Construction Short Contract is the most appropriate contract for your project:
View Contract X

Engineering & Construction Short Subcontract The Engineering & Construction Short Subcontract is the most appropriate contract for your project:
View Contract X

Engineering & Construction Contract The Engineering & Construction Contract is the most appropriate contract for your project:
View Contract X

Engineering & Construction Subcontract The Engineering & Construction Subcontract is the most appropriate contract for your project:
View Contract X

Professional Services Short Contract The Professional Services Short Contract is the most appropriate contract for your project:
View Contract X

Professional Services Contract The Professional Services Contract is the most appropriate contract for your project:
View Contract X

Term Service Short Contract The Term Service Short Contract is the most appropriate contract for your project:
View Contract X

Term Service Contract The Term Service Contract is the most appropriate contract for your project:
View Contract X

Supply Short Contract The Supply Short Contract is the most appropriate contract for your project:
View Contract X

Supply Contract The Supply Contract is the most appropriate contract for your project:
View Contract X

Framework Contract The Framework Contract is the most appropriate contract for your project:
View Contract X

Adjudicators Contract The Adjudicators Contract is the most appropriate contract for your project:
View Contract X

Contact NEC Contact the NEC Team for further advice
View Contract X

X

Related Products

NEC USERS' GROUPS

Save on products and services across our website and enjoy a host of exclusive benefits with membership to the NEC Users' Group.

More Info

Copyright © NEC® Contracts 2014, all rights reserved.
NEC® is a division of Thomas Telford Ltd, the commercial arm of the Institution of Civil Engineers.
Company Reg. No. (Thomas Telford Ltd): 2556636. VAT Reg. No: 240877747.

Institution of Civil Engineers Thomas Telford