The 2011 Road Maintenance Review provides an overview of the current status and challenges facing road maintenance in Scotland, highlighting increased spending needs and a significant backlog in maintenance. Recommendations from Audit Scotland emphasize the importance of collaborative working, effective asset management, and innovative practices to improve efficiency and service quality. The review aims to stimulate service redesign and examine potential for shared services among local authorities and transport agencies.

1. Road Maintenance Review 2011 Welcome

2. Road Maintenance Review 2011 Minister for Housing & Transport Keith Brown MSP Opening Remarks

3. Road Maintenance Review 2011 Councillor Alison Hay COSLA Regeneration & Sustainable Development Spokesperson

4. Road Maintenance Review 2011 Martin McLaughlin Ewan Wallace Context, Scope & Methodology

5. Context Scope Methodology

7. Change in Traffic Volumes Change in road maintenance spend Change in purchasing power Change in roads in acceptable condition Headline Backlog (£) Council Roads + 4% (since 2004/05) + 22 % (over last 15 years) + 12% (2004/05 – 2009/10) - 13% (due to road maintenance industry inflation) - 4% (from 2005 to 2010) 1.54 billion (640 million more than in 2004) Trunk Roads + 3% (since 2004/05) + 37% (over last 15 years) - 12% (2004/05 – 2009/10) - 32% (due to road maintenance industry inflation) - 6% (from 2006 to 2010) 713 million (480 million more than 2004)

10. Audit Scotland Recommendations

11. Audit Scotland recommendations Strategies and plans for adequate prioritisation – greatest contribution to economic growth and improved quality of life Collaborative working (resources & partnerships between councils and with the private sector) Regular reporting of road condition to elected members and the public Benchmarking, improved performance management and reporting

12. Audit Scotland recommendations Data available to allow effective asset management to take place Consistency in maintenance backlog calculation The SCOTS road asset management project fully deployed Adoption of performance indicators developed by SCOTS Benchmark road maintenance activities to drive out cost inefficiencies A costed model for shared services

13. Context Scope Methodology

14. Purpose of the Review… National review on how the road network is managed and maintained, with a view to stimulating service redesign and increasing the pace of examining the potential for shared services

15. … Purpose of the Review How Scottish Government and Local Authorities can work more collaboratively What can be learned from international road management practice

16. Scope of Review Delivering efficiently managed roads for all within budgets available and identifying opportunities for innovation, collaborative working and the sharing of services Whole of the road asset and all road users Excludes winter service

17. Context Scope Methodology

19. Methodology BASELINE Full deployment ‘ Accepted/ standard practice’ eg. 80-100% of road authorities employ BEST/GOOD PRACTICE Partial deployment eg. up to 50% of road authorities employ NOVEL/ INNOVATIVE DEPLOYMENT Possibly only 1-10% employ Barriers to wider adoption/ uptake Cost/ resources/ skills/ risk..? Innovators/ producers Route to market/ trials/ barriers/ risks..?

20. Phase 1 (March-June) Evidence gathering & option generation Stakeholder event (June) Emerging findings & options Phase 2 (July-Sept) Option analysis & appraisal Roads Summit (Oct 2011)

21. Road Maintenance Review 2011 Donald Bell, Director, Halcrow Emerging Findings

22. What the public see What’s underneath

23. Standards Asset Management Prioritisation Funding mechanisms New materials Health & Safety Delivery models

24. What I will cover Road maintenance Three working groups Asset management and standards Technology & productivity innovation Resourcing Emerging themes

25. Road maintenance Why?

26. Road maintenance Who does it benefit?

27. Road maintenance Who does it involve?

28. What I will cover Road maintenance Three working groups Asset management and standards Technology & productivity innovation Resourcing Emerging themes

29. Three Working Groups each looked at…. Baseline Best Practice Innovation

30. Asset Management & Standards What you have What you need to do When you need to do it How you do it

31. Asset Management & Standards Local authorities – “…plan in place no later than the end of 2011…” Transport Scotland – “...adequate prioritisation [given to routes contributing to] …greatest economic growth”

32. Asset Management & Standards – State of play Adherence to standards to minimise risk. Developing Codes of Practice - new materials and processes. Older standards may be slowing best practice and innovations. Asset Management Plans deliver value – the sector needs to implement these. Transport Scotland and 30 of 32 Scottish local authorities have a Road Asset Management Plan in place. Industry KPIs need to be outcome focused. Communication challenges: Increasing competition to retain current share of diminishing budgets Increasing frustration from road users affected by deterioration of the road.

33. Asset Management & Standards - Questions What factors are most important when prioritising spend on assets for the benefit of all road users? How should spend be apportioned between different elements -roads, footways, lighting, traffic lights, etc. What, if any, reduction in standards or level of service is acceptable within reduced budgets? How can we better communicate issues and benefits? What needs to be done to deliver transformational change?

34. Technology & Productivity Innovation Can we do it better?

35. Technology & Productivity Innovation Transport Scotland and local authorities should “work together… …achieving more with the resources currently available”

36. Technology & Productivity Innovation – State of Play Innovation, research and development is predominantly undertaken by the private sector. Examples of public sector organisations working together, and with their supply chains, to develop new materials, tools and techniques. New and innovative techniques are being developed, BUT new materials and techniques have to be trialled across all roads authorities. The use of Lean techniques is limited. Where they have been used, there has been success in improving the quality and efficiency of services. No apparent strategy within the sector on research and development. Development and use of new ideas, techniques and materials can be inconsistent.

37. Technology & Productivity Innovation - Questions Are there examples from other key sectors that we can learn from, where innovation is supported at the heart of the sector? What types of structures would be required to support greater access to innovation/ access to the market to deliver better outcomes for all road users? How do successful productivity improvements in the road maintenance sector become more widely adopted? What needs to be done to deliver transformational change?

38. Resourcing How it is set up

39. Resourcing Transport Scotland and local authorities should explore “…new ways of working, such as service reconfiguration, pooling and flexible use of resources and partnerships between councils and with the private sector ”

40. Resourcing – State of Play Public sector procurement is governed by European legislation. Management arrangements follow traditional lines – local or central government fund the work, which is carried out in-house, or put out to tender. Sharing of road maintenance services is not widespread, but is expanding. Given the Audit Scotland recommendations, there is a case for all roads authorities to examine who they can work together with to deliver a better service.

41. Resourcing - Questions What scope is there for different delivery models to maximise efficiencies whilst maintaining quality maintenance services? How can we utilise procurement or contract mechanisms to drive savings and benefits for all road users? What are the barriers to more shared services and collaboration and how might these be overcome? Are there alternative, or new, funding models to either deliver access to new streams of funding or to create better value for money? What needs to be done to deliver transformational change?

42. What I will cover Road maintenance Three working groups Asset management and standards Technology & productivity innovation Resourcing Emerging themes

43. Findings – Emerging Themes Asset Management & Standards Technology & Productivity Innovation Resourcing Effective Asset Management   Prioritisation   Benchmarking & Monitoring   Delivery Models   Incentivising Innovation    Enabling Faster Change   Communication   

44. The BIG questions How do we take themes forward? Will they deliver transformational change? What else needs to be considered?

45. Road Maintenance Review 2011 Facilitated Working Group Sessions Introduction Professor Malcolm Horner

46. Scope Evidence base Emerging options Gaps

47. Scope Resourcing Economic Issues, Impacts, Costs & Benefits Technology & Productivity Innovation Standards & Prioritisation (Asset Management) National Roads Maintenance Review Evidence Best Practice Innovation Baseline

48. Full deployment ‘ Accepted/ standard practice’ eg. 80-100% of road authorities employ Partial deployment ‘ Best practice’ eg. up to 50% of road authorities employ Novel/ innovative deployment Possibly only 1-10% employ How do we move more efficiently through the pipeline towards standard/ accepted practice…? Barriers to wider adoption/ uptake Cost/ resources/ skills/ risk..? Innovators/ producers Route to market/ trials/ barriers/ risks..?

49. Evidence Base Review Working Group input & feedback SCOTS/ Transport Scotland reports & papers Audit Scotland/ Audit Commission reports & data UK case study examples eg. Highways Agency, County Councils, Water Sector, DfT - Highways Maintenance Efficiency Programme (HMEP) International case studies & benchmarking reports Web resources Topical expert input

50. Emerging Options Preliminary options developed by Working Groups Examples to support discussion for facilitated sessions Stakeholder options Post-event shortlist for appraisal

51. Gaps Feedback on gaps/ additional issues Facilitated sessions Post-event feedback Deadline– 11 th July

52. Facilitated Working Group Sessions Technology & Productivity Innovation Scott II Facilitator: Professor Malcolm Horner University of Dundee Standards & Prioritisation (Asset Management) Scott I Facilitator: Mike Bordiss Independent Consultant Resourcing Burns Suite Facilitator: Emma Langman Progression Partnership Wider Economic Issues, Impacts, Costs & Benefits Caledonian Facilitator: Professor Iain Docherty University of Glasgow

53. Lunch Break 12:40-1:15pm Exhibition Viewing In the Lounge

54. Road Maintenance Review 2011 Coffee Break – 2:15 pm Back in Caledonian Suite - 2:30pm

55. Road Maintenance Review 2011 High Level Summary Reports Back to Plenary

56. Road Maintenance Review 2011 Wider Economic Issues, Impacts, Costs & Benefits Professor Iain Docherty

57. Stakeholder Session Options Wider Economic Issues, Impacts, Costs & Benefits ARE WE HAVING A GOOD CRISIS? No consensus Whose Standards? Prepared to let standards fall? Taxation/hypothecation Democratic Failure? Those who cause damage pay No clear evidence re: outcomes More funding!

58. Road Maintenance Review 2011 Resourcing Emma Langman

59. Different Delivery Models : – revenue funded road maintenance with consistent budget, shared services among smaller local authorities, LLP, PPP and MAC, cross boundary working Procurement or Contract Mechanisms: – outcome based contracts, standardisation road only procurement, standardised long-term contracts to maximise efficiencies and justify set-up costs. Term maintenance contracts joint TS and LA. Performance-based incentives. Barriers to shared services: - political and legislative barriers, clear objectives, Alternative funding models: - charging utilities for failures and occupation, re-introduce ring-fencing roads maintenance budgets, flexibility on annualised budgets. Horizontal integration of services. Deliver Transformational Change : - political will, positive political buy-in is fundamental, supported by clear direction and strong management, stable long term budgeting, collaboration Stakeholder Session Options Resourcing

60. Road Maintenance Review 2011 Standards & Prioritisation Mike Bordiss

61. Stakeholder Session Options Standards & Prioritisation (Asset Management) Communication - engaging with all road users on levels of service Communication - politicians on budget scenarios to meet levels of service options Commonality of asset management themes and objectives Long term view of road maintenance v. political cycles Localism (eg potholes) v. asset management prioritisation Standards – difficulty in convincing standard owners to change Climate change adaption and mitigation Redefine backlog to reflect chosen state of roads not perfect Wider issues - street lighting against crime; NHS costs View as community asset not a liability

62. Road Maintenance Review 2011 Technology & Productivity Innovation Professor Malcolm Horner

63. Stakeholder Session Options Technology & Productivity Innovation Key Points Programming and coordination of works Utilities and reinstatements Annualised budgets Standardising protocols Identifying and coordinating a proactive research agenda Accessibility for all / use of voluntary groups to advise Incentivisation for innovation Appropriateness of current standards Effective communication

64. Road Maintenance Review 2011 Question & Answer Session For Plenary

65. Road Maintenance Review 2011 Closing Remarks Ewan Wallace, SCOTS