Procurement for Highways

The London Borough of Croydon is preparing for the future re-procurement of its Highways Term Maintenance Contract, with a new contract anticipated to commence in April 2027. In advance of tendering, the Council is undertaking a structured market engagement exercise to inform its procurement strategy and contract design. Croydon continues to operate within a financially constrained environment following previous Section 114 notices and remains subject to oversight by the Government’s Improvement and Assurance Panel. Highways maintenance is, however, a statutory service and will continue to be funded through approved revenue and capital programmes. The future contract is expected to be procured as a zero-value contract in accordance with the Public Procurement Regulations 2023, with works instructed through approved programmes. The Council has not yet determined the final delivery model, commercial structure, performance regime or procurement route. A range of potential approaches is under consideration, including contract packaging, NEC4 contract options, revenue maintenance pricing models, performance management arrangements, digital delivery requirements and sustainability and social value outcomes.