Southwark Council Approves Split Highways Maintenance Contracts to Enhance Value and Specialisation
Southwark Council has approved a strategy to divide its highways maintenance contracts into two distinct lots, a move designed to secure better value for money and attract specialist providers. The decision, confirmed by the council's Executive on Tuesday 13 October 2026, will see contracts split into Lot A for reactive maintenance, winter services, and repairs, and Lot B for planned renewal and improvement projects.
Councillor James McAsh, Leader of the Council, presented the procurement strategy, emphasizing its aim to ensure a competitive tender process and deliver value for money. This strategic procurement is intended to align with the council's broader transport ambitions, including its 'Streets for People' strategy, which prioritises improvements to walking, cycling, and public transport infrastructure.
The current annual budget for highways maintenance is substantial, with the average revenue budget for Lot A over the past three financial years (2023-24 to 2025-26) standing at £4.5m per year. The average capital budget for Lot B, including external funding, has been £15m per year. For the new contracts, the proposed Lot A has an estimated annual value of £3.925 million, and Lot B has an estimated annual value of £12.755 million.
The new contracts are anticipated to be in place by April 2028, with an initial term of seven years and an option for a three-year extension. The tender process itself is projected to commence in early 2027. Key milestones include the approval of the procurement strategy on 13 October 2026, completion of tender documentation by 11 December 2026, and the publication of the Find a Tender Service Notice by 06 January 2027.
The split approach is expected to attract specialist providers for each area of work, fostering improved service delivery and innovation. The contracts will be awarded through a competitive tender process, balancing quality and cost. As the estimated value of this contract exceeds £5 million, Southwark Council will establish suitable Key Performance Indicators (KPIs) and publish at least three, in accordance with section 52 of the Procurement Act 2023.
This approach is consistent with service delivery models employed by other highway authorities across London. An inquiry to all 34 London highway authorities revealed that 12 responded, with most utilising a mixture of single and multi-supplier delivery models, with all responding authorities delivering services through external providers.
For more details on the council's executive decisions, refer to the Public reports pack for Tuesday 13 October 2026.