The Performance Audit Group's Annual Report 2006/07

SE – BEAR
The OC provided good full time supervision for works contracts. The general standard of workmanship
was good.

NW – Scotland TranServ
Good full-time OC site supervision was noted on all works contract sites visited by PAG. The general standard of workmanship was good.

SW - Amey
The standard of supervision has improved on last year’s good performance, with continued emphasis on health and safety issues on site. The good standard of workmanship has been maintained.

Value study 2 – works contracts

The objective of this value study was to identify trends in tenders, and to examine tender value and the control of final scheme costs. It included those schemes awarded during the year, but which may not necessarily have been completed by the end of 2007/08.

The study looked at a total of 28 works contracts awarded in 2007/08. The total tender value of these works contracts was £48m. A typical works contract in NW is shown in figure 20.

The principal type of works falls into three categories:

• Pavement structural repairs.
• Structures.
• Minor improvements.

The numbers of works contracts in each of these categories are indicated in
figure 17.

Type of contract	No
Pavement structural repairs	18
Structures	6
Minor improvements	4

Findings

The average number of tenderers per works contract in each Unit in 2007/08 ranged from 3.9 to 4.5, which was broadly similar to previous years

Trends in tenders

The average percentage difference between the lowest and highest tenderer has generally reduced as a whole across the network from 2001/02 to 2007/08 (see
figure 18). With the exception of 2006/07,
this suggests that tendering has become more competitive since 2001/02.

Trends in tenders showed:

• As with 2006/07, the pre-tender estimates were again very close to the tender award values. The average difference over the four Units was pre-tender estimates being 2.1% lower than tender award values.
• NE had the most competitive tendering for the fourth consecutive year, with the average difference between the lowest and highest tenderer being only 18%.
• The highest average award value was £2,156k in NW, and the lowest average value was £1,125k in NE.
• The highest award value was £4,332k in SW, whilst the lowest award value was £373k in NE.

OC	NE	SE	NW	SW
Most successful contractor by number schemes won	Ennstone Thistle 44%	N/A (see Note 1)	Ennstone Thistle 60%	Tarmac 38%
Most successful contractor by value of schemes won	Ennstone Thistle 39%	CEMEX 31% (see Note 1)	Ennstone Thistle 52%	Tarmac 62%
Note 1: In SE each of the works contracts was won by different contractors

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