The document discusses the development of supplier relationships in the context of highways management, highlighting the principles, involved parties, and a strategic approach to enhancing efficiencies. It outlines best practices drawn from various client experiences and presents a strategy for improving contract behaviors and achieving cost savings. Key challenges include contractor reluctance for savings and the effective utilization of technology in asset management.

1. Highways Supplier
Relationship Development
(SRD)
Local Transport Today
9th November 2011

2. Agenda
• SRD
– Principles
– Who has been involved
– Approach
– Change in Emphasis
• Overview of Best Practice findings
– Conway clients
– Volker clients
• Comments
2

3. SRD - Principles
• To analyse the relationships between
buying and supplying organisations to
identify scope for greater efficiencies
– It’s a two-way process
– Opportunities to improve performance –
smarter contract behaviors
– Opportunities to implement cost savings for
mutual benefit
3

4. Who has been involved
Conway Clients
Volker Clients
Enfield
Barnet
Harrow Haringey
Redbridge
Waltham
Forest
Havering
Brent
Camden
Barking &
Newham Dagenham
Tower
Hillingdon Ealing City Hamlets
Greenwich
Hounslow Bexley
Wandsworth
Richmond Lewisham
Merton
Kingston
Bromley
Sutton
Participating 6 Croydon
Participating 5
4

5. SRD – Approach
• Series of Briefings and Meetings
• Create initial SRD Strategy via
- Market Information
- Common Assessment Framework
- Project Manager Visits
• Appoint Negotiation Team
• Negotiation Sessions – best practice
identification
• SRD Strategy document
You and Your Contractor –
www.capitalambition.gov.uk/srdbestpractice
SRD White Paper -
www.capitalambition.gov.uk/srdwhitepaper
The “SRD toolkit” –
www.capitalambition.gov.uk/srdtoolkit
Negotiation
Meetings 5

6. Max.
Max.
VOLKER HIGHWAYS F M CONWAY
Current
Current
Service Delivery Manager (Co-
7
1
6
Drainage Products
16
Located)
Formally Integrated Team -
7
7
2
Recycled Materials
16
Partnering Charter
Footway Specification Early Contractor Involvement
7
7
16
16
Materials Specifications &
Alteration (Walk and Build)
Intelligent KPIs - financial
7
2
Sliding Scale Discount
4
16
implications
Discount for up front Partially Managed Service -
7
0
3
16
payment Safety Inspections
Partially Managed Service -
7
0
Discounts for Turnover
Fixed Spending & Profile
7
Best Practice
16
Scheme Design
Joint Completed Works Partially Managed Service -Full
7
1
1
16
Inspection - Large jobs Scheme Implementation (design,
consultation and construction)
Joint Completed Works
7
0
7
Lump Sum / Early Payment
16
Inspection - small jobs
Best Practice
Remote Monitoring of
7
0
Volume Discounts - Sliding Scale
3
16
Street Lighting
Discount
Temp. Make-safe of
7
2
Fixed Spending Profile and
Operational Mangement
5
16
damaged gully grates
payment
Find & Fix approach to
7
2
potholes
Standadised approach to
7
7
Overview of Findings
procurement (e.g PQQ,
CHAS, PAS91)
Minimised Numbers of
7
2
Invoices
Early Contractor
7
7
Involvement
Contract Operations
6
Contractor undertakes
7
0
Design

7. Some comments
• Difficulty (reluctance from contractor) in
getting savings amounts
• Contractor can do more than is being asked
of them.
– Have provided indications of future service
developments – e.g. Design,
• “Thin client” model
– How far can you/do you go?
• Varying exploitation of Highways Systems
– Mobile
– Accuracy of Asset Inventory
– Sometimes hampered by local IT
7

8. Thank you
8