HE Agree Massive Price Rise?
Price Hike of 250+%
In June 2015, Highways England (HE) were being charged by Kier Highways Ltd (KHL) an hourly rate for emergency response to an incident on our roads of:
£24.41 / hour
In early 2016, a Freedom of Information Act request was made of HE for the Pricing Methodologies used by KHL, see:
A response was provided, an extract from which reads:
The pricing methodologies that are used for both MAC and ASC contracts in repairing damage to the highway, barriers or signage are:
the service provider is reimbursed the actual costs they incur in carrying out the works, plus an additional fee. This is used where the nature or scope of the work to be carried out cannot be properly defined at the outset and the risks associated with the works are high, such as emergency work.
It appears the AIW staff fee of £24.41 is comprised, as above, £22.73 / hour (actual cost) + 7.38% (additional fee) of £1.68.
The FoIA request (above) also asked:
What increases in charges have been agreed year on year?
In accordance with the contracts, the prices are adjusted by the contract price adjustment for inflation on an annual basis.
However, in May 2016, HE advise that they too are paying £70.32 / Hour. If this is correct, the price hike from £24 to £70 per hour is well beyond inflation!