The Portfolio Holder Decision Meeting of Harrow Council, held on Tuesday 30 September 2025, approved the abandonment of a procurement process for highways, street lighting, and associated works, and instead agreed to extend the current contract for these services. This decision was made to ensure value for money and allow for a review of the council's future requirements.

Highways, Street Lighting and Associated Works Procurement

The meeting approved the abandonment of the current procurement process for the Highways, Street Lighting and Associated Infrastructure Works Contract. This decision was made because a financial evaluation indicated that awarding a new contract following the competitive process would not represent value for money at this time. Instead, the council will extend its existing contract with JB Riney for a further 18 months, commencing on 1 October 2025, with an option to extend by a further two years in one-year increments.

Councillor Paul Osborn, Leader of the Council, sought clarification on legal advice contained within confidential appendices before making the decision. The Strategic Director of Culture, Environment and Economy, Cathy Knubley, outlined the report, highlighting issues with the procurement process and the financial costs incurred to date. The Director of Environment confirmed that these costs were not unusual and would contribute to any future procurement.

The decision to abandon the procurement and extend the current contract was made to allow the council to review its requirements for highways, street lighting, and associated infrastructure works to ensure they align with its strategic outcomes. A report on a future procurement strategy will be presented to Cabinet for approval. The extension of the current contract was deemed to represent value for money in the interim. The decision was made urgently as the current contract was due to expire on 30 September 2025, and a delay would have risked the council being without a contractor.

The council has a statutory obligation under the Highways Act 1980 to maintain its highways and related assets and ensure safe passage for users. The current contract, which covers reactive repairs, routine maintenance, planned structural maintenance, and planned transport and street lighting improvements, has been in place with JB Riney. The council's Cabinet had previously approved a procurement process for a new contract to commence on 1 April 2025, but the existing contract was extended to September 2025 to allow adequate time for this process. However, the evaluation of bids received in February 2025 raised concerns about the cost of planned non-core work, which was significantly more expensive than under the current contract.

The decision to abandon the procurement and extend the existing contract was considered to be compliant with the Public Contracts Regulations 2015 and the Council's Contract Procedure Rules. The cost of running the procurement process to date was approximately £130,000, primarily on consultancy fees. The value of works commissioned via the current highways works contract is typically around £16 million per annum, with the intended new contract estimated at £300 million over its term, including potential extensions.

The Leader of the Council, Councillor Paul Osborn, has delegated authority to the Strategic Director of Culture, Environment and Economy, following consultation with the Portfolio Holder for Finance and Highways, to agree the final terms of the extension and enter into the contract. The decision was made under urgency, and the call-in period was waived by the Chair of the Overview and Scrutiny Committee.