Area 9 – Sample Costs
The following information is provided to assist those who are presented a Kier Highways Ltd (Kier) claim, you are one of over 3,000+ drivers, fleets and insurers each year who will be subjected to their costs for a claim that should be under £10,000 but may be over – once Kier have ‘re-priced’ using their Third Party rates / process.
The information relates to Area 9 (and to a great extent Areas 6 & 8). It should be noted that Area 9 is apparently the most expensive Area Kier manage – they claim this is because, in 07/2014, they took over a shambles from Amey. Whether or not this is true, the below should be the highest rates you encounter.
The following are some ‘base rates’ also referred to as ‘defined costs’ that should be used when billing you – but are NOT. There is a process Highways England & Kier contractually agreed to protect Third Parties but which Highways England kept secret and Kier told no one about. The process appears in Appendix A to Annex 23 of the Area 9 contract. The process is simple:
- Highways England is charged the ‘base rate’ or cost of an item and to this is added an uplift, a percentage increase. In this actual example, the uplift is 7.4%.
- You (the Third party) are to be charged the ‘base rate’ plus an uplift, a percentage increase referred to as the TP Claims Overhead (TPCO).
What the TPCO percentage is, we cannot confirm. Despite years of inquiries we have no formal statement from Highways England who apparently set the rate (with Kier). We have been emailed by Kier that the rate is 20.58%, it has also been said to be about 26% in Area 9.
The TPCO gives an indication of what Kier and Highways England appear to have agreed was reasonable when contracting 07/2014. But the process has never been followed by Kier, Highways England have never enforced it and the process has (as mentioned above) been hidden from you.
The following have been taken from an incident 12/2016, repair 02/2017 our ref W11D370. The ‘HE Total’ is what Highways England are charged; base rate (hourly) + uplift (7.4%). The ‘TP Total’ is what you should be charged if Kier were complying with the contract and adding the TPCO – we have used 25% for ease of understanding:
‘Staff’ are generally office based employees, administration:
|Operations Manager DCP||£39.15||£2.90||£42.05||£48.94|
|Scheme Commercial Manager||£39.15||£2.90||£42.05||£48.94|
|NCC Stakeholder Liaison||£19.16||£1.42||£20.58||£23.95|
|Deputy Network Manager||£39.15||£2.90||£42.05||£48.94|
|Routine Operations Manager||£39.15||£2.90||£42.05||£48.94|
|Formulating & Processing||£12.77||£0.94||£13.71||£15.96|
|Formulating & Processing||£20.95||£1.55||£22.50||£26.19|
Operatives / Labour. We have highlighted AIW’s as they are common to almost every incident, they are the ‘first response’ and therefore we can compare their rates easily. We have also been provided the most contradictory information about them.
- If you have a Kier bill in front of you, have you been charged less than £30 / hour for an AIW? If not, why not?
|these are operatives||£22.63||£1.67||£24.30||£28.29|
|i.e. Traffic management||£26.21||£1.94||£28.15||£32.76|
Plant” or vehicles. Sometimes the easiest aspect to compare. To ascertain if we have knowledge of a VRM simply input it at www.google.co.uk
|BJ03LEU||18 Tonne PV TM Truck||£44.81||£3.32||£48.13||£56.01|
|LX64 OVJ||18t Barrier Rig||£40.81||£3.02||£43.83||£51.01|
|RK56 JKU||18t Barrier Rig||£40.81||£3.02||£43.83||£51.01|
|WP14 XJE||18t TM Truck Sidewell with cushion||£44.82||£3.32||£48.14||£56.03|
|FV60CMF||3.5 Tonne TM Pick up Truck||£13.20||£0.98||£14.18||£16.50|
|BD14 CXE||Mercedes Sprinter Hi-roof Van (ISU Spec) AIW Servi||£13.20||£0.98||£14.18||£16.50|
|BD14 CXG||Mercedes Sprinter Hi-roof Van (ISU Spec) AIW Sen.ti||£13.20||£0.98||£14.18||£16.50|
|LO64 VAJ||Mercedes Sprinter Hi-roof Van (ISU Spec) AIW Servi||£13.20||£0.98||£14.18||£16.50|
For the reasons above, we have highlighted AIW vehicles. Odds on, you are being charged over £35 / hour for the very same vehicle i.e. a mark-up of over 100% on top of the TPCO.
RK56JKU is highlighted as it has previously been presented as an 18T barrier Rig and a concern raised with Highways England as the DVLA have no trace of the VRM. – see Kier Highways Fleet Oddities
No one has yet explained why the base rate is £23.71 / hour whereas Kier informed us it was £58.32.
We will shortly be updating this page to address another multiplier Kier uses to further increase the above rates – the application of a 1.5x uplift when an AIW works after 5pm of a weekday. Highways England pay no such multiplier just the £23.71 / hour.
Kier have advised a Court that they charge the multiplier on top of £70+ / hour because they pay this to their AIW’s i.e. an AIW costs them more than £30 / hour more after 5pm.
But Kier charge HE £23.71 / hour for an AIW that costs them £58.32 / hour and charge no uplift when the AIW works after 5pm and costs them 50% more / hour.
The facts do not stack up – it appears Kier are profiteering with the assistance of Highways England.