Harrow Council has spent £130,000 on a procurement process for a Highways, Street Lighting and Associated Infrastructure Works Contract that has now been abandoned.
The decision, made by Councillor Paul Osborn, Leader of the Council, on Tuesday, September 30, 2025, comes after officers determined that awarding a contract following the competitive process would not represent value for money. Instead, the council will extend its existing contract with JB Riney for 18 months, with the option to extend for a further two years in one-year increments, subject to cabinet approval. Any further extension will be subject to compliance with performance management requirements and the achievement of agreed social value commitments, which will be formally evaluated six months prior to each extension being awarded.
The council is legally required to maintain its highways under the Highways Act 1980 and the Local Government Act 1999 requires the council to achieve best value in the exercise of its functions.
According to the Supplemental Agenda, the procurement process commenced in February 2025. Bids were received and assessed, but concerns arose regarding the weighting included in the specification, leading to unexpectedly high costs for planned non-core work. The evaluation indicated concerns with the weighting included in the specification and resulted in the cost of planned non-core work coming out significantly more expensive than the current contract and than anticipated. A financial evaluation, detailed in Appendix 2 of the Supplemental Agenda, compared the cost of the highest scoring bidder with the cost of extending the current contract. The evaluation determined that extending the current contract would provide better value for money.
To ensure effective delivery and accountability during the extended contract period, the contract with JB Riney includes a robust set of Key Performance Indicators (KPIs). Performance against these KPIs is monitored regularly through formal contract management meetings and reporting mechanisms. Any underperformance is addressed through agreed escalation procedures and improvement plans.
The minutes from the meeting note that the Strategic Director of Culture, Environment and Economy confirmed that the £130,000 procurement costs were not unusual and would contribute to any future procurement.
Councillor Osborn expects the Procurement Strategy to be submitted to Cabinet soon.
The Supplemental Agenda states that the council spends approximately £16 million per annum on highways works, and the abandoned contract was estimated at £300 million inclusive of potential extensions.
