Commuters and contractors affected as government cuts roadworks funding

Londoners may soon find they are in for a bumpy ride commuting on London’s highway network. This after the joint venture between Colas, VolkerHighways and AECOM (CVU) recently announced that they will be quitting their eight year contract with Transport for London (TfL) three years early.

Billion Pound contract loses its shine

In 2013 CVU won the contract, with an estimated value of £2,6bn over the eight year framework. The contract saw CVU undertaking construction and maintenance projects in the central London region while other major players such as Ringway Jacobs & Kier and Conway AECOM secured contracts for the other areas. However, with recent government budget cuts, CVU and TfL have parted company, reportedly by mutual consent.

Budget cuts blamed, commuters to lose

The Mayor of London as well as the TfL have confirmed that all non-essential road repairs would be placed on hold, citing the lack of funding available. As it is unlikely the City of London will be able to secure funding from other sources, this is set to have a major impact on the quality of roads in and around London in the foreseeable future.

While TfL has promised to ensure the roads are kept safe, with no proactive maintenance happening, Londoners can expect delays and disruptions on their daily commute. This is most likely to come in the form of road closures as emergency repairs are carried out, as well as speed, size and weight restrictions for daily traffic.

Industry set to become more competitive

It is not only commuters that will be affected. With the CVU joint venture coming to a close, Colas, VolkerHighways and AECOM are likely to compete for major contracts in other areas. As more players enter the game, the squeeze will be on for contractors to offer more competitive pricing in order to win tenders. Cost cutting measures can be expected to filter down into all areas of the industry, affecting profit margins, efficiency, and more importantly jobs.


However it’s not all doom and gloom. While the pressure will be on commercial directors to find more efficient ways of operating, with this comes an opportunity for innovation and creative thinking. As projects seek to optimise their budgets, interim executives can showcase their unique and specific areas of expertise. Top talent that can deliver on projects, despite the industry challenges, will be in even greater demand.

If that’s you, and you’re looking for a new executive challenge, contact us today on Tel: 020 7183 0255 / 0188 466 4025