Council and roads contractor ‘need marriage guidance’
BIRMINGHAM City Council and its roads contractor Amey need some “marriage guidance” after a falling out over their £2.7 billion contract.
That recommendation came after a court case over the quality of street repairs in the city.
The council is just six years into the 25-year highway PFI contract with Amey and the relationship is already on the critical list following a High Court case and disputes over the quality of repairs and condition of roads the contractor inherited in 2010.
Councillors and residents have been unhappy with the extent and quality of resurfacing and pothole works and the decision to replace heritage lampposts and street signs with modern fixtures in conservation areas.
The committee heard a first adjudication in the council’s favour has been overturned by the High Court. It was told: “The city council is presently reviewing its position in respect of an appeal.”
There will be a court hearing on October 10 and talks are ongoing with Amey over several areas of dispute.
Committee member Coun Ken Wood (Con, Sutton New Hall) asked: “Do we need marriage guidance or do we need to instigate divorce proceedings?”
City transport official Kevin Hicks replied: “It is very much about the former rather than the latter.”
He said the court case focused on a narrow technical area of the contract. “The court case is one dimension of the dispute and issues we have been having with Amey,” he said.
The council and Amey are now in talks to ensure both are clear about the levels of service, what is included in the contract and what is not.
The highways deal is the largest PFI contract in local government. It set out plans to upgrade the council’s entire road and pavement network by 2015 and maintain it over the next 20 years.
But the company is currently behind schedule and is unlikely to be finished until the contract dispute is resolved.
Do we need marriage guidance or do we need to instigate divorce proceedings? Councillor Ken Wood