Following an incident causing Damage to Crown property (DCP), Kier Highways Ltd. reported to Highways England that they recovered from the Third Party (driver, fleet, haulier or their insurer) less than their costs plus uplift (25.29%):
But is this true, how would Highways England know and do they care?
- The claim is for less than £10,000 so Highways England could care less; it is retained by their contractor who must try and recover the costs.
- Highways England claim (since 01/2019) that they do not have a schedule of DCP Rates for such repairs – so nothing to check the costs against – some oversight!
- Kier must have a schedule of rates, they are compiling invoices daily
The evidence in our possession indicates the ‘defined costs’ used to achieve the total above are untrue.
- This is an Area 9 claim
- The contract sets out the means by which a Third Party is to be charged ‘no more than’; £defined costs + TPCO% = £maximum
- Defined Costs should be the same to the Authority as a Third Party
But the contractor is using higher rates to bill Third Parties, Kier is not complying with the contract and the Authority have been aware of this for years. Rather than stop the conduct, they have sought to hide it, to keep the rates secret.
We believe, if the true defined costs were used, a profit would have occurred, the amount invoiced would be higher than costs + TPCO … that profiteering would be demonstrated.
Third parties have been thrown to the wolves; Highway England, a Public Authority, is not protecting those they are to serve.
For a more detailed breakdown and account, click here.