Big Win Suggestion: Develop a “Virtual Joint Venture” partnership between client and contractor to provide highway maintenance services

Impact overview
Hard to implement / 1------2------(3)------4------5 / Easy to implement
Risk High / 1------2------(3)------4------5 / Risk Low
Negative Policy Impact / (1)------2------3------4------5 / Positive policy impact
Slow return (12 months or more) / 1------(2)------3------4------5 / Fast return
What is it? The highway service in Staffordshire is delivered as a ‘virtual joint venture’ (VJV) bringing together Staffordshire County Council and the term maintenance contractor, Enterprise plc as a seamless team. In 2010, the service was recognised as an ‘exemplary practitioner of integrated working and at the forefront of collaborative working and best practice within the Midlands HighwayAlliance (MHA)’.
What are the benefits? The partnership has successfully managed the transformation from traditional service delivery, to a dynamic public/private sector partnership and, into a ‘virtual joint venture’. The leaner, more creative, fully integrated ‘single team’ delivers innovation, value for money and sustained cash releasing savings from cost avoidance, an integrated team and, efficiency savings from improved performance.
  • Greater long-term certainty of contract providing opportunity for innovation across projects, transfer of knowledge and more efficient planning of work
  • Staffordshire ranked in the in the top ten highway authorities nationally for ‘Gershon’ efficiency savings.
  • Improved pavement condition despite significant network growth and higher than average traffic volumes
  • Highest scoring authority against the Midlands Highway Alliance Term Contract Best Practice Model in 2010.
  • The cost based contract allows savings to be reinvested in the service. This is estimated to be worth £10m in 2009/10 and circa£25million since 2004 compared to a traditional price based contract using inflation indices.
  • Savings of over £3 million as a result of the single integrated team.
  • Recycling and re-use of materials saving £2.6million
  • Procurement gains mitigating inflationary increases e.g. £0.7 million in 2009/10
  • Winter maintenance route optimisation and removal of duplicate roles £0.4 million
  • Re-engineering activities and value engineering through ECI £1.0 million
  • The Lyons Report on Local Government stated that “StaffordshireCounty Council’s partnership … is built on a ‘one team’ approach rather than on a rigid definition of client and contractor roles. The focus is on outcomes and a shared performance culture is improving efficiency, service quality and budget management”.
  • Considerate Constructors Schemes placing Staffordshire County Council in the top 5% nationally
  • Staffordshire placed in the top six County highway authorities for overall customer satisfaction with highways and transport in the National Highways and Transport Public Satisfaction Survey for the past three years.
  • Culturally aligned and motivated employees
  • Standardised end-to-end business processes and enabling systems
  • Compliments up 121% and complaints down 12%
In challenging times Staffordshire’s highways operations are delivering cost savings and improvements to service and responsiveness at the same time.
The service is delivering improvements to the condition of the roads network at one of the lowest costs of any authority in the UK.
What is the Big Win proposal? Create a joint venture partnership model with the Councils client team and the successful highways maintenance term contractor.
What are the risks/problems to avoid? Ensuring you have an organisation and cultural fit and trust between parties, a clear sense of direction and leadership capability that has a common goal to improve services delivered efficiently. Don’t under estimate the time and effort required to create a seamless and transparent “common” single organisation approach.
What examples exist of this approach?Berkshire have implemented a formal joint venture whereas a number have adopted a more “softer” approach e.g. Worcestershire where client and contractor are separate organisations but have an open and shared approach to service improvements.
How scalable is this opportunity across England? This can be applied to all The 148 County, Unitary and Metropolitan Councils
Which tier of councils would use this and at what approximate implementation cost? County, Unitary and Metropolitan Councils responsible for Highway Maintenance
Other resources/links to supporting documents/case studies etc.

Key contact:
David Walters
Contracts Manager,
Physical Environment,
t: 01785 854024 or 07973 503195
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