Disposal of unacceptable material (U1A)

This aspect is now presented as a charge per tonne. Commencing at £27.37 on 24/06/2019, this has increased to £30.45.  In the scheme of things, this is likely considered a relatively small issue.

However, it should be considered in relation to the historical charges we have been challenging and demonstrates our serious concerns about exaggeration and a lack of transparency.  Kier Highways have been charging neigh on £300 per incident for years!  This is an overstatement of about £270 / claim likely on about 4,000 claims/annum – or £1million.

It is apparent even the Authority were (apparently) paying (being charged), twice the new rate.  How did Highways England come up with the 2019 cost and fail to agree this years ago?

09/02/2019 we wrote to Highways England in early 2018 about the issue.

Our Ref: A03A001/L569632
Mrs S. Green,
Head of Claims, Recovery and Dart Charge Service
Highways England
mailto: Sarah.Green@highwaysengland.co.uk

Tipping / Debris Charges

Appendix A to Annex 23 is not applicable to all Kier Highways Ltd (‘Kier’)Areas however, the process is used across the board and we see standardised, consistent, charges in areas. Charges to Third Parties should comprise:

A. a defined cost (£)
B. a third party claims overhead (%) – stated to be 20.38%

To Highways England, the charges ARE presented in a clear format, laid out displaying:

  • a defined cost (£)
  • a third party claims overhead (%) – this having varied from 4.5% to 7.38%

The defined cost to both parties is stated to be the same, the only difference is the uplift i.e. if 20.58% to Third Parties and 7.38% to Highways England, the variance should be 13.2%. However, with regard to disposal of debris following an incident, the charges are displayed very differently and the variance substantially more than 13.20%:

Highways England Third-Party
charge £75.00 £244.30 Remove VRS beams etc. & load into skips
fee @ 7.38% £5.54 £50.42 Tipping charges
Total: £80.54 £294.72

The uplift applied is 265%.

Kier and the lawyers acting for you, Corclaim will not respond to our requests for information.

However, when we have asked Highways England (on an above-threshold claim) for an
explanation of Kier Highways ‘debris removal’ charge; to what does this refer and how is the debris removed, the response was:

‘I do not have this information, and am therefore willing for this charge to be disregarded.

1. Please explain and evidence the above charges you, your lawyers and or your contractor are seeking

2. Please confirm the process will stop with immediate effect and that all claims, which are
presented in the name of Highways England, will clearly display the ‘Defined Cost’ and Third Party Claims overhead. In turn that interest (at the discretion of the Court) will be plainly, visibly applied to the relevant aspects.

3. Please also confirm this information will be passed to KPMG and form part of your investigation.