Kier’s Damage to Crown Property Manager is regularly overcharged to Third Parties; drivers, fleets and insurers.
It is common to see the DCP Manager, Dan Hay (2016/2017) charged at an excessive rate with 1/2 hour assigned to ‘planning’ and another 1/2 hour associated with ‘pricing’ but whilst Kier will state to Courts that this total of 1 hour is an average, on the low side, a Judge saw through the misrepresentation:
Q: However, I thought the point is they do do a time-sheet for everything.
A: They do, but they’ll do one for their whole day, so a DCP manager is doing goodness knows how many things a day. So yes, they do a time-sheet for the duration of the day. What they don’t do is a time-sheet for every couple of minutes.
The DCP manager completes a time-sheet, a document that is unlikely to be supplied.
Kier have made a statement to the Court:
Highways England’s witness, Sophie Granville of Kier, was asked questions about the DCP manager:
Q: Let us talk about the DCP manager because he is a useful example because he appears both in planning and repairs. Now, how many DCP managers do you have?
This made the consideration of the DCP’s manger’s charge simpler. The Court heard that Kier have about 5,400 claims of which about 60% are ‘traced’ i.e. a culprit is identified. It was put to Ms Granville:
I am going to say to you that that is implausible, that estimating an hour as being cautious as an average is implausible when he has got to get through just over 3,400 claims, namely 60 per cent of 5,400. This is an overstated ﬁgure and it just goes to show that because you do not have time-sheets, we actually do not know what he has done on this one.
The District Judge similarly was skeptical:
THE DISTRICT JUDGE: Mathematically, if you divide 3,400 by 48 weeks, assuming you get some holiday, by ﬁve days for the ﬁve days a week and then 9 (hours / day), he has to do in every hour 1.4.
If the DCP manager did nothing else, in every hour he would need to work 1.4 hours!
Clearly there has been no ‘undervaluation’ but at £55.75 / hour, a gross over exaggeration but what is likely 1/2 hour (at least) on every claim.
The above figures apply to post 10/2015 priced matters. Before this, Kier used their 1153 process and presented evidence in support of these charges. It was explained that the DCP manager was charged per claim at:
S14 1 x DCP Manager, annual cost £115,888.26, per incident £100.51.
The process (1153) saw the annual costs divided by the number of incident, claimed to be 1153 but was actually (as admitted above) about 5,400. The average per claim is therefore £21.46. But this assumes the DCP Manager does nothing else.