matthew lugg, never waste a good crisis: the opportunity to make efficiencies under all delivery...

The Future of Local Transport Delivery: Oldham road show

6 July 2011, Smokies Park, Oldham

Sponsored by

In partnership with

LTT – The Future of Local Transport Delivery

Road Show

6th July 2011

Oldham

“Never Waste a Good Crisis”The Highway Maintenance

Efficiency Programme

Matthew LuggDirector of Environment and Transport,

Leicestershire County CouncilPresident of ADEPT

Chair of Workstream 1 HMEPPart-time technical adviser to DfT

Chair of Midland Highways Alliance

Topics Covered

• The challenges

• Highway Maintenance Efficiency Programme (HMEP)

• Workstream 1

• The Pothole Review

Challenges……

CSR

Priorities for the public Top transport priorities, March 2011 %

0

10

20

30

40

50

60

70

80

fuel cost

road condition

rail fares

road congestion

road safety

roadwork delaysbus frequency

rail overcrowdingenvironmental

HS2 other

Ipsos MORI poll of 991 British adults

HMEP – the context• Support sustained approach to maximising returns

from highways investment and delivering step change in efficiencies

• £6m over 2011/12 and 2012/13, whilst developing a longer term plan

• Links with wider work of Infrastructure UK• Consistent with ‘localism’ agenda - providing the

tools and opportunities - not central direction• Partnership working between public and private

sectors• Target senior decision makers (Council Leaders,

Portfolio Holders, Chief Executives, Chief Officers) as well as highways practitioners

• Building on best practice in the sector

HMEP - deliverables

• Formally launched on 6 April 2011 by Local Transport Minister

• Practical guidance, case studies, toolkits• Example products: Standardised contracts, common

design standards, guides on asset management and shared services, lean management techniques, benchmarking tools

• Potholes: addressing the causes, not just symptoms• See www.dft.gov.uk/pgr/regional/hmep/ - we need

your views and input to make this a success!

Timescales

Phase 1 – October 2010 to March 2011 – With funding available from April 2011, background work to map key partnerships will take place. A strategy for delivery and full programme developed and published. Work stream groups established. Programme Board established. Early efficiency opportunities identified.

Phase 2 – April 2011 to March 2013 – Release of funding to support projects agreed by the board and through the programme. Establish business model post 2013. Establish route to get solutions to users. Benefits realisation model agreed. Review of programme delivery March 2012.

Phase 3 – April 2013 + DfT funding ceases and full non central government ownership of the efficiency programme continues with further research, horizon scanning and solutions to market free of charge to local authorities.

2010

2011

2013+

Programme BoardHMEP Chair

Mostaque AhmedDfT

Chair Work Stream Group 1

Matthew LuggLeicestershire CC

Chair Work StreamGroup 2

Jason RussellSurrey CC

Chair Work StreamGroup 3

Julian AbelDfT

HMEP ChampionAndrew Smith OBE

Chair Work StreamGroup 4

Steve KentCheshire West &

Chester

Technical secretariat,Procurement, Legal,

Private sector, Engineering,

Prog. Management

Drawn from local authorities, supply

and provider’s side

Drawn from local authorities, supply

and provider’s side

Drawn from local authorities, supply

and provider’s side

Drawn from local authorities, supply

and provider’s side

Overview of Workstream Groups

Group 1 Operational Service DeliveryChair – Matthew LuggProcurement StrategiesShared service provisionsAsset Management PlanningDesign Standards

Group 2 Business ImprovementChair - Jason RussellGovernanceLean ManagementChange ManagementIncentives for change and innovation

Group 3 Communications and Capability

Chair - Julian AbleCommunication and MarketingSkills – capability and capacityBenefits realisation

Group 4 Research and Data ManagementChair – Steve KentResearch and Horizon ScanningPrice/QualityMeasurement

Benchmarking of costs and performance

Products – Operational Service Delivery

WP1 – To produce a standard suite of highway maintenance contract documents

WP2 – To develop a standard highway maintenance specification

WP3 – A best practice toolkit to set up and operate alliances for highway maintenance services

Products – Operational Service Delivery

WP4 – A toolkit to aid local highway authorities in setting up shared service arrangements to deliver highway maintenance services

WP5 – A best practice toolkit to aid procurement choice for highway maintenance services

Products – Asset Management

WP6 – To develop a best practice toolkit for asset management life cycle planning

WP8 – To further increase the sector’s knowledge base of the benefits of asset management by producing accredited practitioner training

Products – Asset Management

WP9 – To provide guidance on the most cost effective approach to managing and maintaining drainage assets

WP10 – To produce a revised comprehensive guidance document for highway asset management

WP11 – To develop a standard deterioration model available to all local highway authorities

The Pothole Problem

• 2008/09 worst winter for 20 years

• 2009/10 worst winter for 30 years

• 2010/11 worst December for 100 years

• 42% increase in potholes 2009

• 59% increase from 2009• Estimated 2010 – 2.7m

potholes

The Government Response

• 2009/09 some emergency capital made available

• 2009/10 £100m allocated• 2010/11 £200m allocated• In April this year Norman Baker,

Transport Minister, commissioned a review into the problem

The Review will Consider

• Causes• The management

arrangements for reporting and repairing potholes

• Service standards• The specifications

for repairs• The workmanship• User input

What are the Causes?

• The lack of durability of some surfacing products?

• Have we laid the surfacing too thin?

• Have we had the right quality and workmanship?

• Are we doing enough preventative treatment?

What are the Causes?

• National indicators should we move from worst first?

• Are the highway drainage systems adequate?

• Has the excessive salt and grit prematurely damaged our roads?

• Are our utility reinstatements adequate?

How have we Handled the Repairs?

• What are the current regimes, are they appropriate?

• Are the current methods of repair cost effective?

• How are we monitoring performance?

• How have we managed customer relations

• What engagement have we had with stakeholders?

What Happens Next?

• Awaiting ministerial sign-off of the brief

• Set up the project management arrangements

• Instigate broad Industry engagement

• Identify best practice

We would welcome your input and support to HMEP. Groups

already contributing are: ADEPT, TAG, LoTAG, TfL, HA, DfT, HTMA, ICE, CIHT, ASPE.

If you would like to contribute please contact me

matthew.lugg@leics.gov.uk

Thank YouAny Questions?