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2020 / 2021 Edition

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Latest report on Highways Term Maintenance Contracts

Highways Term Maintenance

BDS publish thirteenth annual update of ‘Term Contracts for Highways Maintenance’

THE March 2020 Budget threw some crumbs of comfort to the road surfacing industry with £2.5 billion announced for the Potholes Fund over five years plus increased and accelerated spend on infrastructure projects.

Much of this spend will be taken on by local authorities through their Term Maintenance Contracts, details of which have just been published by BDS in their annual refresh.

The report, ‘Term Contracts for Highways Maintenance’, is in its thirteenth year of publication and provides details of the arrangements local authorities and other major bodies have for the maintenance of their highways. Around 340 separate contracts, frameworks and in-house provisions have been identified.

The top six asphalt producing companies (Aggregate Industries, Breedon, FM Conway, CEMEX, Hanson and Tarmac), which between them account for around 85% of asphalt production in Great Britain, all have their own road surfacing divisions. These companies are a named contractor in 27% of the term maintenance contracts held by local authorities.

This leaves a significant number of contracts let to other national, regional and local contractors. Leading these are companies such as Eurovia/Ringway, Colas, Amey, Keily Bros, Volker and Kier.

The latest report shows that 40% of the contracts identified are set to expire before the end of 2021.

The information in the report will be of value to companies looking for a roadmap to identify when and where new contract opportunities will become available as well as indicating potential targets for acquisition to allow existing contractors to expand or for new companies to enter the market.

For further details of the report, which was published in March 2020, contact BDS Marketing Research (QMJ) Ltd via research director Andy Sales at: [email protected]; or tel: (01761) 433035.

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