The Cost of an AIW

04/2018. We have long questioned Kier Highways Ltd (KHL) and England Highways about the charges presented for an AIW.  The process of charging has been explained; there is a base or ‘defined’ cost for each component.  This ‘defined cost’ is the same to Highways England and a Third Party (driver, fleet and insurer).  To the ‘defined cost’ is added a ‘fee’ to Highways England of about 7.5% and to Third Parties, the ‘Third Party Claims Overhead’ of 20.58%. But this simply cannot be reconciled with the information in our possession an AIW is charged:

  • about £25 / hour to Highways England
  • over £70 / hour to Third Parties

If the process was applied, a Third Party should be charged no more than about £30 / hour i.e. £25 plus 20% (1/5th) uplift.

Kier Highways Ltd (KHL) from 10/2015 commenced charging Third Parties (drivers, fleets & insurers) £70.32 / hour for an AIW.  KHL explained that this rate comprised £58.32 costs and £12 uplift (to cover planning, profit etc.).  A further breakdown was supplied: 

Wages & Salary £18.30  
Bonus & Incentives £7.38  
specialist allowances £0.01  
absence due to sickness and holiday £0.96  
 Travel £0.09  
relocation £0.01  
medical examinations £0.03  
Protective clothing £6.52  
N.I. £3.85  
meeting legal requirements £0.17  
pensions and life assurance £1.26  
general training £9.82  
Safety training £0.52  
Water £0.03  
Gas £0.02  
electricity £0.18  
consumables for vehicle £9.17  
sub total £58.32  
third Party Claims overhead £12.00 20.58%
Total £70.32  

Highways England pay about £25 / hour. 

Third parties pay the above £70.32 / hour BUT to this is added a multiplier:

Therefore, while Highway England pay the set £25 / hour (approx.) Third parties will see the £70.32 increase to:

  • £105.48 after 5pm on a weekday
  • £140.64 on a weekend
  • £175.81 on a Public Holiday