The Birmingham City Council has modified the private finance initiative (PFI) contract for the operation and maintenance of road network project in Birmingham, the UK.
The new contract includes the following changes:
- Reduced Contract length: The duration of the contract is only 12 years. It covers the time period from April 2023 to June 2035 and is expected to commence the full services by September 2023.
- Risk Allocation: a change has been made to the surfacing condition risk. The operating subcontractor will be responsible for the carriageway condition. Another change is structures, bridges and tunnels, with the inclusion of a shared arrangement whereby the operating subcontractor only has the risk of reinstatement works up to a capped amount and routine maintenance responsibilities.
- The key performance indicators (KPIs) have been reduced from more than 600 to 169.
- To resolve the issues quickly a fast-track dispute avoidance board (DAB) has been included.
- A new technical arbitration panel and highways oversight board (HOB) have been created to meet quarterly or as required.