Area 10 CECA Rates & Charges Time Line

14 /06/2012: press release from Balfour Beatty Mott MacDonald (BBMM) ‘awarded Highways Agency Asset Support Contract for Area 10

11/2012: contract commences.

… there are two regimes in operation to recover damages in respect of damaged highway furniture:

  • Where the costs are under £10,000 then BBMM undertake the repairs and, under the authority of clause 87.2 of its contract with Highways England, recovers damages from the tortfeasor.
  • With larger repairs (over £10,000) Highways England claims against the tortfeasor and claims the repair cost calculated by reference to rates agreed with BBMM for works over £10,000. Those rates are not the CECA Dayworks rates. (Judge – 2018)

BBMM commence using CECA rates for Damage to Crown Property works these present substantially higher costs than are charged to Highways England for claims over £10,000

06/04/2017 – lawyers for BBMM write:

BBMM tendered on the use of CECA and this was successful. When tendering for the contract, it was originally envisaged that damage caused by third party repairs would be completed as a lump sum duty or as a scheme. Within the tender process however BBMM advised that repairs to damage caused by third party repairs could not be priced in this way as there was no way of knowing how many incidents there would be in any given year. It was agreed by the Claimant that when formulating the rates for labour and plant, Balfour Beatty Mott MacDonald would utilise the Civil Engineering Contractors Association Schedules of Dayworks Carried out Incidental to Contract Works (“CECA Schedule”) to calculate the reasonable cost of repair.

To date neither BBMM nor Highways England have located and supplied any such agreement.  An FoIA request found that no such documentation was possessed.

13/02/2018 – Derby County Court BBMM for Highways England – registered users. Judge reports that BBMM’s witness, for Highways England has stated:

  • BBMM do have agreed rates with Highways England for repairs where the total is over £10,000 (DCP works) but
  • these are subsidized by the lump-sum payment BBMM receives – The Judge accepted Mr Ellis’s evidence that the £10,000 + repair rates are subsidised in part by the lump sum payment.

Mr Ellis of BBMM acknowledged that CECA Dayworks rates were not a perfect fit to this type of work.

Mr Ellis was asked why the same rates which were used in pricing repairs of over £10,000 could not be used. His response was that the £10,000 + rates were negotiated prescribed rates which were in part subsidised by the lump sum paid under the agreement.

Further comment about the rates can be found here.

17/12/2018 – exchange with BBMM re disclosure of rates and explanations (registered users) – refused. (sent to HE 22/02/2019 – no response as at 20/04/2019)

22/02/2019 – FoIA request of Highways England The Schedule of Damage to Crown Property Rates – Area 10 – request made via WDTK

FoIA response contradicts lump-sum subsidizing above-threshold rates – Area 10 DCP Rates Unaffected by Lump-Sum Payment