Mouchel chief executive Grant Rumbles has declared his firm to be the “public sector partner of choice for the strategic highway network” following official confirmation of its latest Highways Agency win.
As tipped in NCE last month, Mouchel subsidiary EM Highway Services has landed the Agency’s prestigious Area 9 Asset Support Contract (ASC). Under the contract, EM Highway Services will operate, maintain and improve the strategic road network in the West Midlands over five years. The deal is worth up to £160M a year.
The contract covers the Birmingham box and parts of the M5, M6 and M40.
It is the second major Highways Agency win in 12 months for the firm, which landed the Area 3 ASC last summer. This contract is worth up to £700M over five years.
Rumbles said winning the contract was proof that his firm was a major player in the highways market.
Partner of choice
“To win two of the Highways Agency’s new ASCs in a calendar year reaffirms EM’s position as the public sector partner of choice for the strategic highway network,” he said.
EM managing director Dave Wright added that he was determined to make both deals exemplars of well run highway maintenance and operations contracts.
“Having recently mobilised our first ASC in Area 3, I am confident we can make Area 9, along with Area 3, the leading examples of how a successful contract of this type should perform,” he said.
EM is understood to have beaten off competition from incumbent Amey, plus bids from Carillion, Skanska and Balfour Beatty/Mott MacDonald.
The news will come as a blow to Amey. It currently maintains Birmingham City Council’s highways as part of a PFI deal. Retaining Area 9 would have allowed it to make use of economies of scale.
The new contract will start on 1 July and will run until July 2019 with extensions possible until 2022.