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A630 SHEFFIELD PARKWAY WIDENING Full Business Case Rotherham Metropolitan Borough Council A630 SHEFFIELD PARKWAY WIDENING Full Business Case 70047347 JUNE 2020 CONFIDENTIAL Rotherham Metropolitan Borough Council A630 SHEFFIELD PARKWAY WIDENING Full Business Case TYPE OF DOCUMENT (VERSION) CONFIDENTIAL PROJECT NO. 70047347 OUR REF. NO. 70047347 DATE: JUNE 2020 WSP 1st Floor Station House Tithebarn Street, Exchange Station Liverpool L2 2QP Phone: +44 151 331 8100 WSP.com CONFIDENTIAL QUALITY CONTROL Issue/revision First issue Revision 1 Revision 2 Revision 3 Remarks Draft Final Final - Updated Final - Issued Date 23/10/2019 19/05/2020 10/06/2020 12/06/2020 Prepared by Donna Gutteridge, Amy Leather Amy Leather Amy Leather Sophie Higham Signature DG/SH Checked by Amy Leather Ian Turvey Ian Turvey Ian Turvey Signature IGT IGT IGT Authorised by Ian Turvey Ian Turvey Ian Turvey Ian Turvey Signature IGT IGT IGT IGT Project number 70047347 70047347 70047347 70047347 Report number - - - - File reference - - - - A630 SHEFFIELD PARKWAY WIDENING CONFIDENTIAL | WSP Project No.: 70047347 | Our Ref No.: 70047347 June 2020 Rotherham Metropolitan Borough Council CONTENTS QUALITYQUALITY CONTROL CONTROL 3 CONTENTSCONTENTS 4 EXECUTIVE SUMMARY CONTENTS 5 EXECUTIVE SUMMARY 18 1 STRATEGIC CASE 1 1.1 INTRODUCTION 1 1.2 STRATEGIC CONTEXT 1 1.2.1 INTRODUCTION 1 1.2.2 AN AMBITIOUS ECONOMIC VISION 3 1.2.3 TRANSPORT AS A KEY ENABLER OF ECONOMIC GROWTH 4 1.2.4 THE SCALE OF THE CHALLENGE 8 1.2.5 BOOSTING OUR ECONOMIC PERFORMANCE 13 1.3 BARRIERS TO ECONOMIC GROWTH 16 1.3.1 OVERVIEW 16 1.3.2 TRAFFIC DELAY AND CONGESTION 16 1.3.3 INTERACTION OF LOCAL AND STRATEGIC TRAFFIC 19 1.3.4 LACK OF SUSTAINABLE TRANSPORT ALTERNATIVES 19 1.3.5 ROAD SAFETY AND DRIVER LEGIBILITY 22 1.3.6 AIR QUALITY 28 1.4 IMPACT OF NOT CHANGING 31 1.5 OBJECTIVES 33 1.5.1 OVERVIEW 33 1.5.2 SCHEME OBJECTIVES 33 1.6 SCHEME SCOPE 34 1.7 CONSTRAINTS AND INTERDEPENDENCIES 36 A630 SHEFFIELD PARKWAY WIDENING CONFIDENTIAL | WSP Project No.: 70047347 | Our Ref No.: 70047347 June 2020 Rotherham Metropolitan Borough Council 1.7.1 CONSTRAINTS 36 1.7.2 ENVIRONMENTAL CONSTRAINTS 36 1.7.3 INTERDEPENDENCIES 42 1.8 OPTIONS IDENTIFICATION, SIFTING AND SELECTION 43 1.8.1 OPTIONS IDENTIFICATION, SIFTING AND SELECTION PROCESS 43 1.8.2 STAGE 0 44 1.8.3 STAGE 1 45 1.9 THE PROPOSED SCHEME 50 1.10 SCHEME BENEFITS 52 1.11 KEY RISKS 55 1.12 STRATEGIC ALIGNMENT 56 1.13 EVIDENCE OF STAKEHOLDER SUPPORT 63 1.14 MEASURES FOR SUCCESS 64 1.15 STRATEGIC RATIONALE 66 2 ECONOMIC CASE 69 2.1 INTRODUCTION 69 2.2 OPTIONS APPRAISED 69 2.3 TRAFFIC MODELLING METHODOLOGY AND ASSUMPTIONS 69 2.3.1 MODEL SELECTION 69 2.3.2 MODEL DEVELOPMENT, CALIBRATION AND VALIDATION 69 2.3.3 FORECASTING 72 2.3.4 DEPENDENT DEVELOPMENT TESTING 74 2.3.5 VARIABLE DEMAND MODELLING 75 2.4 ECONOMIC APPRAISAL METHODOLOGY AND ASSUMPTIONS 76 2.4.1 OVERVIEW 76 2.4.2 TRANSPORT USER BENEFITS 79 2.4.3 ACCIDENT BENEFITS 80 2.4.4 JOURNEY TIME RELIABILITY BENEFITS 82 2.4.5 WIDER ECONOMIC BENEFITS 82 2.4.6 CONSTRUCTION IMPACTS 84 A630 SHEFFIELD PARKWAY WIDENING CONFIDENTIAL | WSP Project No.: 70047347 | Our Ref No.: 70047347 June 2020 Rotherham Metropolitan Borough Council 2.4.7 GREENHOUSE GASES 85 2.4.8 AIR QUALITY 86 2.4.9 NOISE 87 2.4.10 SOCIAL DISTRIBUTIONAL IMPACT 87 2.5 SCHEME COSTS 90 2.5.1 CONSTRUCTION COSTS 90 2.5.2 OPERATION AND MAINTENANCE COSTS 91 2.6 SCHEME BENEFITS 92 2.6.1 TRANSPORT USER BENEFITS 92 2.6.2 ACCIDENT BENEFITS 93 2.6.3 GREENHOUSE GAS BENEFITS 94 2.6.4 AIR QUALITY BENEFITS 94 2.6.5 NOISE BENEFITS 95 2.6.6 CONSTRUCTION IMPACTS 97 2.7 INITIAL BENEFIT – COST RATIO 97 2.8 ADDITIONAL BENEFITS 98 2.8.1 WIDER ECONOMIC BENEFITS 98 2.8.2 RELIABILITY BENEFITS 98 2.9 ADJUSTED BENEFIT COST RATIO 99 2.10 CONSTRUCTION COST SENSITIVITY TEST 99 2.11 SOCIAL IMPACT ANALYSIS 100 2.12 DISTRIBUTIONAL IMPACT ANALYSIS 101 2.13 APPRAISAL SUMMARY 103 2.14 VALUE FOR MONEY STATEMENT 104 3 FINANCIAL CASE 107 3.1 INTRODUCTION 107 3.2 SCHEME COSTS 107 3.2.1 BASE SCHEME COSTS 108 3.2.2 RISK ADJUSTED SCHEME COSTS 109 3.3 DEVELOPMENT COSTS 110 A630 SHEFFIELD PARKWAY WIDENING CONFIDENTIAL | WSP Project No.: 70047347 | Our Ref No.: 70047347 June 2020 Rotherham Metropolitan Borough Council 3.4 SPEND PROFILE 110 3.5 WHOLE LIFE COSTS 112 3.6 BUDGETS AND FUNDING 112 3.7 SUMMARY OF THE FINANCIAL CASE 114 4 COMMERCIAL CASE 116 4.1 INTRODUCTION 116 4.2 OUTPUT BASED SPECIFICATION 116 4.3 PROCUREMENT STRATEGY 116 4.4 TYPE OF CONTRACT 117 4.5 FORM OF CONTRACT 118 4.6 SOURCING OPTIONS 119 4.6.1 OPTION 1: SCAPE NATIONAL CIVIL ENGINEERING FRAMEWORK 2019-2023 119 4.6.2 OPTION 2: OPEN OR RESTRICTED TENDER (OJEU) 120 4.6.3 OPTION 3: MIDLANDS HIGHWAY ALLIANCE FRAMEWORK 121 4.6.4 PREFERRED PROCUREMENT OPTION 122 4.7 PAYMENT MECHANISMS 122 4.8 PRICING FRAMEWORK AND CHARGING MECHANISMS 123 4.9 RISK ALLOCATION AND TRANSFER 125 4.10 CONTRACT LENGTH 125 4.11 CONTRACT MANAGEMENT 126 4.12 COMMERCIAL VIABILITY 127 5 MANAGEMENT CASE 129 5.1 INTRODUCTION 129 5.2 EVIDENCE OF SIMILAR PROJECTS 129 5.3 PROJECT GOVERNANCE, ROLES AND RESPONSIBILITIES 131 5.3.1 OVERVIEW 131 5.3.2 GOVERNANCE STRUCTURE 131 5.4 ROLES AND RESPONSIBILITIES 133 5.5 PROGRAMME AND PROJECT PLAN 136 A630 SHEFFIELD PARKWAY WIDENING CONFIDENTIAL | WSP Project No.: 70047347 | Our Ref No.: 70047347 June 2020 Rotherham Metropolitan Borough Council 5.6 TOLERANCES AND CONSTRAINTS 137 5.7 ASSURANCE AND APPROVALS 137 5.7.1 DFT ASSURANCE AND APPROVALS 137 5.7.2 SHEFFIELD CITY REGION ASSURANCE AND APPROVALS 139 5.7.3 RMBC CITY REGION ASSURANCE AND APPROVALS 140 5.8 COMMUNICATIONS AND STAKEHOLDER MANAGEMENT 141 5.9 PROJECT REPORTING 145 5.10 LESSONS LEARNED 145 5.11 RISK MANAGEMENT 146 5.12 MONITORING, EVALUATION & BENEFITS REALISATION 151 5.12.1 OVERVIEW 151 5.12.2 MONITORING AND EVALUATION APPROACH AND METHODOLOGY 151 5.12.3 BENEFITS REALISATION 155 5.13 DELIVERABILITY 160 6 RESPONSES TO DFT OBSERVATIONS 162 6.1 INTRODUCTION 162 6.2 TIMELINE OF RESPONSES 162 6.3 TRAFFIC MODELLING BACKGROUND 163 6.4 SUMMARY OF MAIN DFT OBSERVATIONS 164 6.4.1 VARIABLE DEMAND MODELLING 164 6.5 FUEL AND INCOME ADJUSTMENT FACTORS 165 6.6 ECONOMIC APPRAISAL 165 6.7 DISTRIBUTIONAL IMPACT 165 6.8 FORECASTING 165 6.9 BUSINESS CASE 165 6.10 DEPENDENT DEVELOPMENT 166 6.11 ANNUALISATION AND OFF PEAK BENEFITS 166 6.12 IMPACTS ON COST, RESOURCING AND PROGRAMME 168 6.13 SUMMARY 168 A630 SHEFFIELD PARKWAY WIDENING CONFIDENTIAL | WSP Project No.: 70047347 | Our Ref No.: 70047347 June 2020 Rotherham Metropolitan Borough Council TABLES Table 1-1 - Bus Services on the A630 Parkway and in the Wider Area 20 Table 1-2 - Summary of KSI Accident Data (January 2014 – June 2019) 25 Table 1-3 - RMBC Air Quality Monitoring Locations in Proximity to Proposed Scheme 29 Table 1-4 – Scheme Objectives 33 Table 1-5 - Alignment of Options with Scheme Objectives 45 Table 1-6 - Revised & Adopted Options for Appraisal 45 Table 1-7 - Full List of Sub-Options for Assessment 46 Table 1-8 - OAF Assessment – Top Ranked Scheme Options 50 Table 1-9 - Scheme Alignment with National, Regional & Local Policy 57 Table 2-1 - Model Time Periods 71 Table 2-2 - Summary of Appraisal Methodology 77 Table 2-3 - Types of Scheme Impact and Use of VfM Assessment 78 Table 2-4 - Annualisation Factors 80 Table 2-5 - Transport User Benefits – Core Scenario 92 Table 2-6 – Transport User Benefits - High Growth Scenario 93 Table 2-7 – Transport User Benefits – Low Growth Scenario 93 Table 2-8 - Accident Benefits 94 Table 2-9 - Construction Impacts Summary 97 Table 2-10 – Initial BCR: Core, Low and High Growth Scenarios (£) 97 Table 2-11 - Wider Economic Benefits (WITA) 98 Table 2-12 - Wider Economic Benefits (Genecon Alternative) 98 Table 2-13 - Reliability Benefits 98 Table 2-14 – Adjusted BCR: Core, Low and High Growth Scenarios(£000s) 99 Table 2-15 – Change in PVC 100 Table 2-16 – BCR Results: Construction Cost Sensitivity Test 100 Table 2-17 - Summary of Social Impact Analysis 101 Table 2-18 – Summary of Distributional Impact Analysis 101 Table 2-19 – Project Appraisal Summary 103 Table 3-1 – Base Scheme Costs (Q1 2020/21 Prices) 108 A630 SHEFFIELD PARKWAY WIDENING CONFIDENTIAL | WSP Project No.: 70047347 | Our Ref No.: 70047347 June 2020 Rotherham Metropolitan Borough Council Table 3-2 – Risk Adjusted Cost Estimate (Quarter 1 2020/2021 Prices) 109 Table 3-3 – Scheme Development Costs (£, Outturn Costs) 110 Table 3-4 - Spend Profile (£, Development Costs in Outturn Prices; Delivery Costs in Quarter 1 2020/2021 Prices) 111 Table 3-5 – Scheme Funding (£, Previous Costs in Outturn Prices; Future Costs in Q1 2020/21 Prices) 113 Table 4-1 - Type of Contract: Advantages and Disadvantages 117 Table 4-2 - Scape: Advantages and Disadvantages 120 Table 4-3 - OJEU Tenders: Advantages and Disadvantages 121 Table 4-4 - Midlands Highway Alliance: Advantages and Disadvantages 121 Table 4-5 - Contract Milestones 125 Table 5-1 - Evidence of Delivery of Similar Projects 129 Table 5-2 - Key Roles and Responsibilities 135 Table 5-3 - Key Tasks and Dates 136 Table 5-4 - Key Stakeholders 142 Table 5-5 - Top Scoring Risks and Associated Mitigation 148 Table 5-6 - Information/Data Collection Methods and Timescales 153 Table 5-7 - Key Monitoring and Evaluation Activities 154 Table 5-8 - Benefits Realisation Plan 156 Table 6-1 – Timeline of Responses to DfT 162 Table 6-2 – Draft Results of TUBA Assessment Using the Uplifted Matrices 167 FIGURES Figure 1-1 - Top 20 SCR Highway Corridors Forecast to Experience Increased Delay 6 Figure 1-2 - GVA Per Worker 9 Figure 1-3 - Employment in Higher Level Occupations/Median Gross Weekly Pay 10 Figure 1-4 - Workforce Qualifications by City Region 10 Figure
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