National Highways has launched a procurement for an estimated £60M owner controlled insurance programme (OCIP) for the construction of the Lower Thames Crossing (LTC).

The project involves linking the A2 and M2 in Kent to the A13 and M25 in Essex, to alleviate chronic congestion at the Dartford Crossing.

It will involve the construction of a new 23km road and a 4.2km tunnel under the Thames Estuary.

As of May, the project was advancing through early preparatory works.

The procurement notice, published on 1 July, seeks insurance policies for the project through a contract estimated to run from 30 November 2026 until 19 November 2033.

The procurement has an estimated value of £60M excluding VAT (£75M including VAT) and has been divided into nine lots covering contractor’s all risks insurance, public liability insurance, delay in start-up insurance, terrorism insurance and environmental liability insurance.

According to the tender notice, National Highways requires suitable insurance policies for the construction of Lower Thames Crossing (above is a rendered image of what the tunnels will look like).

The largest element of the procurement is Lot 1, covering contractor all risks, primary public liability (£2.5M), delay in start-up and terrorism insurance. This lot has an estimated value of £52M excluding VAT (£65M including VAT).

The remaining eight lots relate to layers of excess public liability and environmental liability insurance.

Lot 2 covers excess public liability with a £22.5M limit in excess of £2.5M and has an estimated value of £2M excluding VAT.

Lot 3 covers excess public liability with a £25M limit in excess of £25M and has an estimated value of £1.2M excluding VAT.

Lot 4 covers excess public liability with a £50M limit in excess of £50M and has an estimated value of £1.6M excluding VAT.

Lot 5 covers excess public liability with a £150M limit in excess of £100M and also has an estimated value of £1.6M excluding VAT.

Lot 6 covers excess public liability with a £250M limit in excess of £250M and has an estimated value of £800,000 excluding VAT.

The final three lots relate to environmental liability insurance.

Lot 7 provides environmental liability cover with a £10M limit (£20M in the aggregate) and has an estimated value of £400,000 excluding VAT.

Lot 8 provides environmental liability cover with a £20M limit in excess of £10M (£40M in the aggregate) and has an estimated value of £200,000 excluding VAT.

Lot 9 provides environmental liability cover with a £20M limit in excess of £30M (£40M in the aggregate) and also has an estimated value of £200,000 excluding VAT.

The procurement is being run as a competitive flexible procedure under the Procurement Act 2023.

National Highways said bidders are required to complete a Procurement Specific Questionnaire alongside the Information to Tender documentation.

The deadline for enquiries is 15 July, while tenders must be submitted by 31 July. National Highways expects to make an award decision on 30 November.

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