ORR’s role in the second Road Investment Strategy

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This page contains information on ORR’s approach to the activities we are responsible for in the second Road Investment Strategy (RIS2), in particular the efficiency review. It also includes links to some of the key pieces of evidence that informed our work.

In 2016, we set out how we would approach our role and highlighted a range of issues that we believed should be considered in the development of RIS2:

ORR’s Approach to the Second Road Investment Strategy
14 December 2016

ORR's advice on Highways England's Draft Strategic Business Plan

We reviewed Highways England's Draft Strategic Business Plan (Draft SBP) in the first half of 2019, and submitted our advice to the Secretary of State on 28 June 2019, in line with the statutory timescales set out in the Draft RIS. Our analysis and advice were based on the information provided in the Draft SBP, which mostly dated to August 2018.

There have been changes to the RIS2 package since the Draft SBP came to us. These changes were not covered in our advice but will be reflected in the final set of RIS2 documents.

DfT and Highways England responded to our recommendations in the RIS2 package and we provided additional, informal advice on how they were applied.

RIS2 Efficiency Review – ORR's advice on Highways England's Draft Strategic Business Plan for the Second Road Investment Strategy
Published 11 March 2020

As well as the three capability reviews discussed below, we commissioned a range of analysis to support our review. As mentioned above, the reports used information provided in the Draft SBP, many aspects of which have now changed in the final RIS.

Assessment of Highways England's cost estimation approach for RIS2
Published 11 March 2020

Review of efficiency, sample-based review and deliverability of Highways England's draft Strategic Business Plan
Published 11 March 2020

Review of Highways England's input price inflation proposals
Published 11 March 2020

Review of construction sector productivity work relevant to Highways England's performance and efficiency
Published 11 March 2020

Productivity growth in capital intensive sectors
Published 11 March 2020

Capability reviews

In preparation for the efficiency review, we commissioned, jointly with Highways England, a set of capability reviews in areas that we expected to be important for delivering efficiency in the second road period.

They provided a view of the level of efficiency the company could achieve from these activities but need to be considered alongside Highways England’s wider efficiency plans and other evidence, including benchmarking.

Review of Highways England's ability to improve efficiency from its asset management capability
Published 18 January 2018

A review of Highways England’s Procurement & Contract Management Capability
Published 19 December 2017

A review of Highways England’s Portfolio and Programme Management Capability
Published 19 December 2017