Agenda Item 59


Cabinet        


         

Subject:                          Streetlighting Contract Extension & Variation

 

Date of meeting:    Thursday, 15th October 2026

 

Report of:                 Cabinet Member for Transport & City Infrastructure

 

Lead Officer:           Corporate Director- Operations

 

Contact Officer:     Tracy Beverley

 

                                    Email: tracy.beverley@brighton-hove.gov.uk

                                   

Ward(s) affected: (All Wards);

 

Key Decision: Yes

 

Reason(s) Key: Expenditure which is, or the making of savings which are, significant having regard to the expenditure of the City Council’s budget, namely above £1,000,000.

 

 

For general release

 

 

1.            Purpose of the report and policy context

 

 

1.1         This report seeks Cabinet approval to delegate authority to the Corporate Director, City Operations, to enter into a Deed of Extension & Variation with Colas Limited to extend the Council's existing Street Lighting Contract for a period of 12 months, from 1 November 2026 to 31 October 2027 to allow sufficient time for re-procurement of a new contract commencing from 1 November 2027.

 

1.2         The Street Lighting contract enables the management and maintenance of our critical street lighting assets, supporting the delivery of the city's priorities; making it easier and safer to move around the city, supporting the delivery of active, safe and inclusive travel. It is essential in supporting the Nighttime economy and therefore Investing in our city while protecting our heritage assets – keeping Brighton unique. These are all key aspects in working to achieve our vision ‘A City to Be Proud Of’.  Furthermore, street lighting is known to reduce crime and support our most vulnerable people travelling around the city, including contributing to the safety of woman and girls, therefore streetlighting is essential in delivering our vision ‘A Fair and Inclusive City’.

 

1.3         The extension is required to ensure continuity of these critical streetlighting assets, and to allow sufficient time to develop a new and improved £25m contract spanning 10 years. This new contract will learn from previous contracts, use the very best practice in KPI’s to achieve efficiencies and drive performance & innovation in technology to deliver transformation across the service.

 

1.4         The estimated value of the extension is £1.3m and in accordance with the Council's Contract Standing Order 2.2, an extension of this value requires Cabinet approval.

 

2.            Recommendations

 

2.1         Cabinet agrees to extend the existing Street Lighting Contract with Colas Limited for a period of up to 12 months commencing on 1 November 2026, with an estimated value of £1.3m.

 

2.2         Cabinet agrees to delegate authority to the Corporate Director, City Operations, following consultation with the Cabinet Member for Transport, Parking and Public Realm, to take all necessary steps to give effect to the contract extension and variation[SF1] [TB2] , including the execution of a Deed of Extension and any associated contractual documentation.

 

3.            Context and background information

 

3.1         The current contract supports the management and maintenance of a substantial asset portfolio including approximately: 19,988 street lighting columns and wall brackets; 2,231 externally illuminated traffic signs; 593 feeder pillars; 194 illuminated bollards; 168 center island beacons; 112 Belisha beacons. It also supports the delivery of high profile capital projects.

 

3.2         The council, as the Highway Authority, has a duty to keep the network safe this includes a duty to maintain those street lighting and illuminated assets that it has provided on the highway network and relies on the contract to undertake routine maintenance, electrical testing, structural inspections, emergency repairs, night scouting, capital replacement works and asset management activities.

 

3.3         Aside from the statutory requirements street lighting is a critical asset required to deliver the cities priorities in terms of delivering safe and accessible, well-maintained streets. Supporting our Accessibility Strategy particularly in respect to supporting our most vulnerable people to travel around the city and supporting the safety of Woman and Girls. These assets play a critical role in supporting our Nighttime economy and investing in our city whiles the contract also supports the heritage street lighting – helping to keep Brighton unique. Furthermore, this contract supports the delivery of the City Transport Strategy 2035 in supporting active travel, EV roll out.

 

3.4         The current contract between the Council and Colas Limited commenced on 1 November 2018 and the original service period of the Contract was 4 years from the commencement date until 31 October 2022. The Contract has subsequently been extended and varied twice in accordance with the contractual provisions available to the Council and is due to expire on 31 October 2026. All contractual extension provisions from the existing Contract have now been exhausted.

 

3.5         On the 2025/26 Annual Procurement Forward Plan (APFP) Cabinet gave authority to the service to proceed to market for the Street Lighting Maintenance Contract, with an estimated value of £25m. This granted delegated authority to the Corporate Director to procure and award the contract

 

3.6         In extending the existing contract, this will afford time to develop a new £25m, 10-year contract which will support transformation across the city. During the extension period detailed work will be carried out to perfect the new contract specification between Sept 26 -Jan 27. This new contract will be superior and pivotal in supporting the council to manage this critical asset. It will drive performance though use of best practice in terms of contracts and will include strong, performance based KPI’s to drive quality, cost, carbon reduction and social value. It will continue to support the cities priorities and help to deliver transformation in terms of EV charging points and innovation in technology while enhancing and maintenance our heritage street lighting columns.

 

3.7         From March, 2027, through open market procurement, we will seek innovation and will draw out the very best learning across the industry and to develop this new contract. We are using best practice learning from previous procurement exercises to drive innovation, competition and achieve the very best in terms of quality and price. Our planned contract award date is November 2027.

 

3.8         The above timetable therefore requires an extension and variation of the existing contract under Regulation 72 of the Public Contract Regulations 2015 for 12 months for the estimated value as set out in the part 2 report..  

 

4.0 Analysis and consideration of alternative options

 

4.1         The proposed extension will afford sufficient time to develop a new transformational contract that will deliver innovation and drive quality, value and performance. Using best practice learning from previous contracts and driving value and quality through a full and open procurement process at every step we can ensure lasting performance.

 

4.2         Alternative procurement frameworks have been explored rather than a contract extension, but this is not considered  a viable option due to the mobilisation period, TUPE requirements and likely loss in service during the contract transfer.

 

 

5.0      Community engagement and consultation

 

5.1       The proposal relates solely to the continuation of an existing contractual arrangement and will not result in any changes to service levels experienced by residents, businesses or visitors. Consultation has been undertaken with Legal Services, Procurement and Finance in developing the proposed approach.

 

6.         Financial implications

 

6.1         The extension outlined is covered by existing streetlighting budgets and is part of the forecasted TBM05 position for the service. The contract is required to continue streetlighting operations and cannot be covered internally by existing staff.

 

Name of finance officer consulted: David Wilder            Date consulted (14/09/2026):

 

7.0         Legal implications

 

 

7.1          In order to vary [SF3] a regulated contract, the variation must fall under one of  the six ‘safe harbors’ in Regulation 72 of the Public Contract Regulations 2015 (PCR 2015). The Council has reasonable grounds to rely on Regulation 72(1)(e) ‘non-substantial ground’ to extend and vary the Street Lighting Contract.

 

7.2 The legal team will assist with drafting and executing the Deed of Extension & Variation between the Council and Colas Limited.

 

Name of lawyer consulted: Sabina Cherevicheko        

Date consulted: 15/09/2026

 

8.0         Risk implications

 

 

Risk

Impact

Mitigation

Failure to extend and vary the existing Street Lighting Maintenance Contract.

The Council would be unable to maintain street lighting assets to the required standard, increasing the risk of asset deterioration, lighting failures, and reduced network safety. This could impact public confidence, increase the likelihood of third-party claims, and compromise the Council's ability to demonstrate compliance with its statutory duty to maintain a safe highway network. There may also be adverse impacts on personal safety, the night-time economy, and the Council's wider transport and place-making objectives.

Extension and variation of the current contract will ensure continuity of service, maintain asset performance, support compliance with statutory duties, and provide sufficient time to procure and mobilise a replacement contract without service disruption.

Contractor unable to extend beyond the current contract timeframe

Likelihood is low but if the contractor is unable to accept an extended contract the council may be in a position unable to maintain critical assets.

The contractor has agreed to extend the contract with us and are keen to bid for the new contract when it is prepared.

 

 

9.0     Equalities implications

 

9.1         As part of the procurement process, a full Equalities Impact Assessment will be undertaken.

 

9.2         Extending the existing street lighting contract will help ensure the continued maintenance and operation of the Council's street lighting assets, supporting a safe, accessible and inclusive highway network for all residents and visitors. Well-maintained street lighting can particularly benefit people with protected characteristics, including older people, disabled people and those with visual impairments, by improving visibility, personal safety and confidence when travelling.

 

10.    Sustainability implications

 

 

10.1    Extending the current street lighting contract supports the Council's sustainability objectives by ensuring the continued maintenance and optimisation of energy-efficient LED lighting assets across the network. Maintaining a well-performing lighting asset helps minimise energy consumption, reduce carbon emissions associated with street lighting operations, and prolong the life of existing infrastructure, thereby reducing waste and the need for premature replacement.

 

11.         Health and Wellbeing Implications

 

11.1   Well-lit streets support active travel particularly walking and cycling and also contribute to reducing crime and disorder leading to a safer more accessible transport network.   

 

Other Implications

 

12.         Procurement implications

 

12.1   Procurement officers are supporting with the new streetlighting contract and timeframes. This new contract offers an opportunity to develop KPI’s for both Social Value and Carbon Reduction in line with procurement advice.[SF4] 

 

12.2    The full procurement implications are set out in section 3 of this report.

 

13.       Crime & disorder implications:

 

13.1    All councils are subject to statutory duty (s17 Crime and Disorder Act 1998) to do all they can to reasonably prevent crime and disorder in their area across the range of services delivered within their communities. The Streetlighting Contract will facilitate continued street lighting across the city which has been proven to deter and reduce crime.

 

14.         Conclusion

 

14.1      Taking all the above considerations into account the recommendations set out in section 2 of this report will enable the council to deliver its priorities  and duties in terms of maintaining a safe public highway by continuing to deliver the street lighting maintenance function.

 

 

 

 


 [SF1]Sabina - what is being varied (other than the extension and presumably the price to be agreed?)

 [TB2]Yes just the extension and price

 [SF3]@SabinaCherevinchenko - What is required for the variation - is it just to extend the contract  - what other matters need to be agreed?

 [SF4]The procurement implications need to cover the recommendation  topics of this cabinet report   - ie the variation and extension - can these be amended/added to please?