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(Little Hadham) Business Case Hertfordshire County Council A120 Bypass (Little Hadham) Business Case 1.0 Issue 3 | 27 February 2014 This report takes into account the particular instructions and requirements of our client. It is not intended for and should not be relied upon by any third party and no responsibility is undertaken to any third party. Job number 225805-31 Ove Arup & Partners Ltd The Arup Campus Blythe Gate Blythe Valley Park Solihull B90 8AE United Kingdom www.arup.com Document Verification Job title A120 Bypass (Little Hadham) Job number 225805-31 Document title Business Case File reference Document ref 1.0 Revision Date Filename A120 Business Case Report_Draft 1_26.04.13.docx Draft 1 26 Apr Description First draft 2013 Prepared by Checked by Approved by Ian Clarke / Emma Name Payne Signature Scrutiny 5 Nov Filename A120 Business Case Report_Scrutiny Draft_05.11.13.docx Draft 2013 Description Version submitted to Scrutiny 15/11/2013 Prepared by Checked by Approved by Emma Payne, Ian Clarke, Chris Name Stocks, Oliver Ian Clarke Peter Smith Nicholas, Chris Furneaux Signature Final Draft 11 Nov Filename 2013 Description Incorporating Scrutiny feedback and final updates Prepared by Checked by Approved by Emma Payne, Ian Name Ian Clarke Peter Smith Clarke Signature Final Draft 29 Nov A120 Business Case Report_Final Draft Post Filename 2013 Scrutiny_11.11.13.docx Description Final costs and economics. AE to issue to EA. Prepared by Checked by Approved by Ian Clarke, Emma Payne, Chris Name Ian Clarke Peter Smith Furneaux, Chris Stocks, Robert Blair Signature 1.0 | Issue 3 | 27 February 2014 J:\225000\225805-00 HCC CST\225805-31\4 INTERNAL PROJECT DATA\4-05 REPORTS\A120 LITTLE HADHAM BYPASS\A120 BUSINESS CASE REPORT\UPDATES POST DECEMBER SUBMISSION\A120 BUSINESS CASE_ISSUE 3 27.02.14.DOCX Issue Document Verification with Document Document Verification Page 2 of 3 Job title A120 Bypass (Little Hadham) Job number 225805-31 Document title Business Case File reference Document ref 1.0 Revision Date Filename A120 Business Case Report_FINAL DRAFT 06.12.13.docx Final 6 Dec Description Draft 2013 Prepared by Checked by Approved by Ian Clarke, Emma Name Ian Clarke Peter Smith Payne, Robert Blair Signature Arup 10 Dec Filename A120 Business Case Report_ARUP REVIEW_10.12.13.docx Review 2013 Description Incorporating PS comments Prepared by Checked by Approved by Name Ian Clarke, Emma Peter Smith Peter Smith Payne et al Signature Issue for 13 Dec Filename A120 Business Case_ISSUE for SCRUTINY_13.12.13.docx Scrutiny 2013 Description Final checks and edits Prepared by Checked by Approved by Ian Clarke, Emma Name Ian Clarke Peter Smith Payne et al Signature Issue 2 6 Feb Filename A120 Business Case_Issue 2 06.02.14.docx 2014 Description Minor updates since Scrutiny Issue version Prepared by Checked by Approved by Name Ian Clarke, Emma Ian Clarke Peter Smith Payne Signature Issue Document Verification with Document 1.0 | Issue 3 | 27 February 2014 J:\225000\225805-00 HCC CST\225805-31\4 INTERNAL PROJECT DATA\4-05 REPORTS\A120 LITTLE HADHAM BYPASS\A120 BUSINESS CASE REPORT\UPDATES POST DECEMBER SUBMISSION\A120 BUSINESS CASE_ISSUE 3 27.02.14.DOCX Document Verification Page 3 of 3 Job title A120 Bypass (Little Hadham) Job number 225805-31 Document title Business Case File reference Document ref 1.0 Revision Date Filename A120 Business Case_updated for Issue 3 by including MOU as Issue 3 27 Feb Description Addition of EA MOU 2014 Prepared by Checked by Approved by Name Emma Payne, Ian Ian Clarke Peter Smith Clarke Signature Filename Description Prepared by Checked by Approved by Name Signature Filename Description Prepared by Checked by Approved by Name Signature Filename Description Prepared by Checked by Approved by Name Signature Issue Document Verification with Document 1.0 | Issue 3 | 27 February 2014 J:\225000\225805-00 HCC CST\225805-31\4 INTERNAL PROJECT DATA\4-05 REPORTS\A120 LITTLE HADHAM BYPASS\A120 BUSINESS CASE REPORT\UPDATES POST DECEMBER SUBMISSION\A120 BUSINESS CASE_ISSUE 3 27.02.14.DOCX Hertfordshire County Council A120 Bypass (Little Hadham) Business Case Contents Page Executive Summary 4 1 Introduction 5 1.1 Background 5 1.2 Guidance 5 1.3 Scheme Overview 6 1.4 Project Status 6 1.5 Layout of Document 6 2 The Strategic Case 8 2.1 Introduction 8 2.2 Hertfordshire County Council Business Strategy 8 2.3 Policy Environment 10 2.4 The Problem Identified 14 2.5 Options Identification and Appraisal 18 2.6 Final Proposed Scheme 22 2.7 Impact of Do Nothing 23 2.8 Internal Drivers for Change 24 2.9 External Drivers for Change 24 2.10 Need and Objectives 27 2.11 Scope 27 2.12 Constraints 28 2.13 Inter-dependencies 28 2.14 Stakeholders 29 2.15 Measures of Success 30 3 The Economic Case 31 3.1 Introduction 31 3.2 Options Appraised 31 3.3 Costs 32 3.4 Traffic Data Sources 34 3.5 Growth 37 3.6 Benefits 39 3.7 Appraisal Summary Table 46 3.8 Value for Money Statement 48 3.9 Sensitivity and Risk Profile 50 4 Financial Case 53 4.1 Introduction 53 1.0 | Issue 3 | 27 February 2014 J:\225000\225805-00 HCC CST\225805-31\4 INTERNAL PROJECT DATA\4-05 REPORTS\A120 LITTLE HADHAM BYPASS\A120 BUSINESS CASE REPORT\UPDATES POST DECEMBER SUBMISSION\A120 BUSINESS CASE_ISSUE 3 27.02.14.DOCX Hertfordshire County Council A120 Bypass (Little Hadham) Business Case 4.2 Costs 53 4.3 Funding Sources 54 4.4 Budgets / Funding Cover 56 5 Commercial Case 57 5.1 Introduction 57 5.2 Procurement Strategy 57 6 Management Case 59 6.1 Introduction 59 6.2 Evidence of Similar Projects 59 6.3 Project Dependencies 60 6.4 Governance, Organisational Structure and Roles 60 6.5 Programme 62 6.6 Approvals 63 6.7 Dependencies 64 6.8 Project Plan 64 6.9 Document Log 66 6.10 Project Controls and Reporting 68 6.11 Risk Management 68 6.12 Communications and Stakeholder Management 70 6.13 Benefits Realisation Plan 71 6.14 Monitoring and Evaluation 72 6.15 Options 72 References Appendices Appendix A Proposed Scheme Drawings Appendix B Construction Risk and Opportunities Register Appendix C Highways Agency Optimism Bias Tool Appendix D Environmental Appraisal Report 1.0 | Issue 3 | 27 February 2014 J:\225000\225805-00 HCC CST\225805-31\4 INTERNAL PROJECT DATA\4-05 REPORTS\A120 LITTLE HADHAM BYPASS\A120 BUSINESS CASE REPORT\UPDATES POST DECEMBER SUBMISSION\A120 BUSINESS CASE_ISSUE 3 27.02.14.DOCX Hertfordshire County Council A120 Bypass (Little Hadham) Business Case Appendix E Project Plan Appendix F Risk and Controls Report Appendix G WebTAG Guidance Appendix H Draft Memorandum of Understanding between Hertfordshire County Council and the Environment Agency 1.0 | Issue 3 | 27 February 2014 J:\225000\225805-00 HCC CST\225805-31\4 INTERNAL PROJECT DATA\4-05 REPORTS\A120 LITTLE HADHAM BYPASS\A120 BUSINESS CASE REPORT\UPDATES POST DECEMBER SUBMISSION\A120 BUSINESS CASE_ISSUE 3 27.02.14.DOCX Hertfordshire County Council A120 Bypass (Little Hadham) Business Case Executive Summary The A120 is an important east-west link in Hertfordshire’s primary road network. The road runs from the A10 at Puckeridge eastwards to join the M11 near Stansted Airport and then through Essex to the port of Harwich. A single carriageway bypass carries the A120 around Bishop’s Stortford but at Little Hadham the road experiences severe congestion and delays as a result of a one-way working signal controlled junction in the centre of the village. A bypass for Little Hadham has been under consideration since the 1970s. The existing traffic signals have been upgraded several times over the years but there is no further scope for improvement. There are no options for physical widening or other localised infrastructure improvements due to the close proximity of Grade II listed private properties. An assessment of strategic options for improving the A120 was undertaken in 2006 with a local bypass to Little Hadham being identified as the preferred option. Route variations for the bypass were consulted on and appraised leading to county council cabinet approval of the preferred route in 2008. This forms the proposed scheme. With the bypass in place, congestion would be removed in the village and journey times along the A120 would be reduced, improving the quality of life for residents. In addition, a flood alleviation scheme will be brought forward as part of the scheme to help reduce the risk of flooding in Little Hadham and communities south of the bypass route. Within the current policy background, key themes have contributed to the environment from which the A120 proposals have evolved. These include the aspiration to enable growth, relieve traffic congestion and improve main interurban corridors. The scheme ‘fits’ with these topics by alleviating congestion along a key route through which faster journey times will help to stimulate growth. The economic case demonstrates very high value for money with a Benefit Cost Ratio of 9.1. Sensitivity tests of the underlying assumptions show that the scheme is still likely to represent high value for money even if traffic growth and time savings resulting from the bypass are lower than forecast. The capital funding required to deliver the scheme places it within the class of infrastructure project categorised as a local major transport scheme. Funding for such projects has been devolved from central government to Local Transport Bodies (LTBs) and ultimately to Local Enterprise Partnerships (LEPs) via the Single Local Growth Fund (SLGF). The total funding required to deliver the scheme is £29.86m including inflation. Of this, £1.55m is preparation costs which will be funded by the county council with the rest being the subject of bids to the LTB fund for £18.50m and to the LEP for the balance of £9.81m.
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