HERTFORDSHIRE COUNTY COUNCIL

HIGHWAYS & TRANSPORT CABINET PANEL

THURSDAY 10thJULY 2008 AT 10:00AM

EAST HERTS VEHICLE CROSSOVER TRIAL

Report of the Director of Environment

Author: Steve JohnsonTel:01992 526910

Executive Member:Stuart Pile (Highways, Transport and Rural Affairs)

1Purpose of report

1.1To report progress with the East Herts Vehicle Crossover trial, which has been running for a year, and to seek the panel’s comments on whether to continue or terminate the trial.

2Summary

2.1The Residential Crossovers Topic Group in its June 2006 report to the Overview and Scrutiny Committee established a number of findings and agreed a series of recommendations including the introduction of a pilot scheme, in one area, for delivering residential vehicle crossovers (VXO’s) through an approvedcontractor system.

2.2The pilot scheme operated across the East Herts district area, started on 16th April 2007 and it was agreed that this would run for at least one year.

2.3190 applications have been received for crossovers under the East Herts trial, 71 have progressed to the construction phase of which 65 have been built so far.

2.4The average works cost of a crossover constructed under the trialto date is approximately £1,400. The average works costs for these same crossovers, if they had been delivered via Herts Highways, would have been approximately £800.

3Recommendations

3.1Although the East Herts VXO trial provides customers with a greater choice and potential control over who builds the crossover, the overall increase in cost is not considered as offering value for money. On this basis it is recommended that the trial in East Herts is stopped and future crossovers are delivered via Herts Highways, providing consistency across the county.

4Background

4.1The vehicle crossover trial in East Herts started on 16th April 2007 and was due to run for at least 12 months

4.2The basic process is:

  1. An application for a VXO is considered in the normal way by HCC staff.
  2. If appropriate the application is approved and a mini document (customer pack) prepared, which is then sent to the applicant.
  3. The customer then chooses from a list of approved contractors who to send their pack to for a quotation to carryout the VXO construction.
  4. Once the customer has decided which contractor to use they return a copy of the customer pack together with the quotation and a cheque to cover construction.
  5. HCC then place the order with the contractor and arrange for the VXO to be built.
  6. The customer can nominate their own contractor to carryout the works. However, HCC will need to check their Health and Safety and Finance position before deciding if they can be added to the approved list. A checking fee is charged for this process

4.3Contractors

4.3.1When the trial was established there were 7 contractors on the select list, of which one was based in Hertfordshire, the remainder being from Kent, London, Middlesex, Reading and Bedfordshire.

4.3.2Since the trial started a number of other contractors (8) have expressed an interest in going on the approved list and to date 3 have been added. These are:

  • Brymac London Ltd. – based in Epping
  • Home Counties Surfacing – based in Kimpton, Herts
  • A & R Groundworks – based in Hertford

4.3.3One of the original seven contractors (Bardon) has since requested that their name be removed from the list. A & R Groundworks have recently been taken over by a company who have not yet satisfied our H & S procedure and as such they have been temporarily removed from the list.

4.4Applications Received

  • By the 4th June, 190 customers had applied for a vehicle crossover and these are being processed under the East Herts trial.
  • 158 applications have been processed to date, with 141 sites approved and customer packs issued. 17 applications have been refused.
  • 3 applications are currently on hold due to land issues, awaiting customer response etc. and 12 applications have now been closed due to customer request, land issues etc.
  • The remaining 17 applications received to date are being checked to see if the sites comply with the VXO guidance and if appropriate, customer packs will be prepared and issued.

4.5Crossovers Constructed

  • 71 customers have now chosen a contractor to build their crossover and returned the necessary paperwork.
  • Of the 71 crossovers that are being progressed for construction, the majority of customers (58) have chosen one of the two more local contractors. Brymac London Ltd. based in Epping (36) or Nedburn Properties Ltd. based in Waltham Cross (22)
  • To date,65 crossovers have been constructed.

4.6Summary of Results to date

Totals / Number
Applications Received / 190
Applications Refused / 17
Customer Packs Sent Out / 141
Applications on Hold / 3
Applications Still to be Processed / 17
Applications Closed / 12
Customer Quotations Received / 71
Crossovers Constructed / 65
Average Cost of VXO Through Trial Process (Note 1) / £1,438
Average Equivalent Cost Through HH Contract (Note 2) / £804

Notes:

1.This represents the average cost of the crossovers ordered for construction as part of the trial – these are works cost only and do not include any HCC fees.

2.This represents the average cost of the crossovers in 1 above if they had been constructed by Herts Highways – these are works costs only and do not include any HCC fees.

3.HCC fees associated with VXO’s are:

East Herts Trial / Herts Highways Process
Initial Application / £104.00 / £83.00
Construction Phase / £179.00 / £115.00
TOTAL / £283.00 / £198.00

4.7Comments

4.7.1Although the number of applications received for approval under the trial in 2007/08 is similar to previous years, the number of crossovers actually built is approximately half the previous annual rate (see below)

Financial Year / Deliver Route / Applications Received / Crossovers Built
2005/06 / Herts Highways / 181 / 117
2006/07 / Herts Highways / 189 / 110
2007/08 / East Herts Trial / 174 / 54

This may be due to a number of reasons including:

  • Initial slow progress with the trial (learning curve) – first crossover not built until June
  • Takes longer for customer to get price for crossover – under the old system Herts Highways would have provided a cost estimate at the time the approval was given.
  • The quotes being provided through the trial may be making customers consider the costs more closely, before making a decision.

4.7.2Although the trial is providing customers with a choice in terms of who builds their crossover, the majority are now using Brymac London Ltd or Nedburn Properties Ltd as their preferred contractor.

4.7.3The difference in price between a crossover constructed under the trial compared to an equivalent constructed by Herts Highways had been reducing over the period of the trial. However, it appears that this trend has now levelled out.

4.7.4Looking at the more recent quotes, it appears that contractors are now submitting a standard price (e.g. £1,250 or £1,350 etc) rather than pricing each VXO on individual rates.

4.7.5There has been considerable variation in the cost difference between crossovers delivered under the trial and an equivalent delivered via Herts Highways.

  • Of 64 comparable quotes, 61 have been higher than the HH equivalent
  • 3 quotes have been lower than the equivalent HH costs – but no significant trend.
  • There does not appear to be any significant trend in terms of crossovers constructed in towns being cheaper or more expensive than those delivered in rural areas
  • The average cost of a crossover constructed under the trial is approximately £600 more than the equivalent Herts Highways cost. HCC staff charges associated with the trial are also £85 higher.

4.7.6One idea behind the trial was to allow customers the option to use their ‘builder’ to construct their crossover, provided they satisfied certain criteria (adequate public liability insurance, Health and Safety requirements, suitably experienced staff etc.). Very few have taken this approach possibly because their builders wouldn’t satisfy our criteria for allowing them to work on the public highway or because of the costs involved in vetting contractors (£167.00).

4.7.7Engineers have indicated that they are having more customer contact under the new process, but only up to the construction stage. It appears that customers are unsure what to do once they receive their packs and how to go about getting quotes and are therefore seeking additional guidance from engineers at this time.

4.7.8During the construction phase it appears that our contact with the customers has reduced probably because customers are dealing directly with their chosen contractor on when the works will be carried out. Previously under the HH system they would have contacted the area office for the same.

4.7.9Fewer complaints (formal/informal) have been received under the trial, possibly as result of customers dealing directly with ‘their’ chosen contractor rather than chasing Herts Highways for a build date.

4.7.10Workmanship, traffic management, site supervision etc. have not been a problem on the crossovers constructed to date through the trial.

4.7.11Whilst some customers may be willing to pay a slight premium to allow them greater choice over who builds their crossover, the increase in cost under the trial is too great to be considered as offering value for money.

4.8Other Considerations:

If the decision is taken to stop the trial:

  • Herts Highways will need around 6 weeks to mobilise works resource before they start constructing new crossovers.
  • There are around 80 customer packs which have been issued but not yet returned for construction these could form a considerable backlog if they are all returned to Herts Highways to construct.
  • Customers who already have packs may wish to continue and have their crossover constructed via the trial. This would be allowed provided the chosen contractor is willing to continue and they still have the necessary insurance etc in place.
  • In previous years Herts Highways have delivered around 10 to 12 crossovers per month. On this basis and with new applications being received all the time it could take around 6 months to clear the potential backlog.
  • In view of the above there will need to be careful management of customer expectations during the transition period.

5Financial Implications

5.1None - The cost of constructing a vehicle crossover, including staff costs associated with processing the application and supervising the construction is borne by the applicant.

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