170703 Kier Highways Fleet & AIW’s 24/7

01/04/2017, Kier is gifted Areas 6&8 as Amey abandon it being unable to make money on the contract. Kier, however, have a very different approach to attendance and repair pricing!

Asset Incident Watchmen (AIW’s) are employed to identify and capture asset damage and vehicle details to ensure Kier are recouping as much cost as possible and minimising their commercial risk.

03/07/2017. The AIW team start their rolling shift pattern from which will allow for 24hr cover.

The Area 6 & 8 fleet:

LT17UZJ – Toyota Hilux Active D-4d 4wd Dcb (X02A574 >£10k) 10/08/2018.
LT17UZP – Toyota Hilux Active D-4d 4wd Dcb
LT17UZC – Toyota Hilux Active D-4d 4wd Dcb
LT17UZG – Toyota Hilux Active D-4d 4wd Dcb
LT17UZK – Toyota Hilux Active D-4d 4wd Dcb
LT17UZD – Toyota Hilux Active D-4d 4wd Dcb
HY17BDU – Iveco Daily 35s14v

Expect to be charged over £36.91 / hour for an AIW’s Toyota Hilux Active D-4d 4wd Dcb … double what Highways England are charged for the very same vehicle!

08/07/2017 Just days after the announcement of 24/ hour cover, AIW’s working the weekend were charged at double time to a Third Party:

  • £65.75 / hour Base Rate
  • £131.50 / hour of a weekend

The vehicle was charged at £36.91 / hour.

Had Kier complied with the contract, the rates to the Third Party would have been in keeping with those 31/07/2019 (see below):

Charged Multiplier contract %
to TP 2 rate difference difference
operative £65.75 £131.50 £31.69 £99.81 415.01%
operative £65.75 £131.50 £23.00 £108.50 571.66%
vehicle £36.91 £36.91 £16.54 £20.37 223.18%

Less than weeks later an over-threshold (£10,000) claim was presented to the Authority:

31/07/2017 at almost 2:30am Kier operatives were on the A12 southbound when they responded to an incident on the northbound carriageway.  They were obviously working in the early hours (not 8am to 5pm).  The Incident Response (IR) costs the Highways England are presented differently, clearly setting out the ‘rate’ which is then totalled and subject to the displayed ‘fee’ uplift of 7.4%.  Third Parties are provided no such clarity.

Highways England were presented costs:

  • £25.29 / hour rate
  • £18.36 / hour

The vehicle was charged at £13.20 / hour.  To these charges, Kier adds a 7.4% ‘fee’ uplift causing the charges to be:

Rate Fee
to HE 7.40%
operative £25.29 £1.87 £27.16
operative £18.36 £1.36 £19.72
vehicle £13.20 £0.98 £14.18

To a Third Party, the rates should be that charged to the Authority (above) plus the Third Party Claims Overhead percentage (TOCO) of 25.29% (Area 9):

to TP 25.29%
operative £25.29 £6.40 £31.69
operative £18.36 £4.64 £23.00
vehicle £13.20 £3.34 £16.54

However, rather than add the TPCO of 25.29%, 8am to 5pm rates to a Third Party are:

to TP uplift
operative £65.75 242.07%
operative £65.75 333.44%
vehicle £36.91 260.35%

Had a Third Party been charged for the 31/07/2017, 2:30am weekday incident, a multiplier of 1.5 would have been added to the inflated rates bringing the costs to:

Charged Multiplier
to TP 1.5
operative £65.75 £98.63
operative £65.75 £98.63
vehicle £36.91 £36.91