Market Engagement Launches for £600M A38 Derby Junctions Upgrade

National Highways has begun preliminary market engagement for its long-delayed A38 Derby Junctions scheme, confirming a revised contract value of £600M and a proposed duration of 10 years.

The major upgrade will target three key roundabout junctions along the A38 corridor west and north of Derby city centre: Kingsway (A38/A5111), Markeaton (A38/A52) and Little Eaton (A38/A61). The improvements are intended to reduce congestion, improve journey reliability and support economic growth across Derby and the wider East Midlands.

The preferred route for the project was established in 2018. Under current plans, the design and build contract would run from 31 January 2028 to 30 January 2038, underlining the long-term scale of the programme.

Legal challenges and reinstated consent

The scheme has faced a complex planning history. Its original Development Consent Order (DCO), granted in January 2021, was overturned following a High Court challenge. After reconsideration, the DCO was reinstated in August 2023. A subsequent legal challenge caused further delay but was ultimately dismissed by the courts in March 2025.

Following the July 2025 Spending Review, the government confirmed funding for the project, clearing a major financial and political obstacle to delivery.

Costs more than double

However, delays and inflationary pressures have significantly increased the projected cost. Around the time of the DCO redetermination, the scheme was estimated at between £200M and £250M. Data released by the Office of Rail and Road in July 2025 indicated an increase of £417M, and the newly issued engagement notice confirms the total value now stands at £600M.

A spokesperson for National Highways said projects of this size and complexity can experience cost increases over time, particularly when subject to legal delays and high inflation. The organisation added that it is working closely with the Department for Transport to establish the most efficient and cost-effective delivery timetable.

Supplier engagement event in March

The preliminary market engagement notice invites suppliers to help shape the procurement and delivery strategy for the forthcoming design and build contract. National Highways said it is seeking to draw on industry expertise to refine its approach, reduce bidding risk and encourage innovation.

An in-person engagement event will take place on 4 March 2026 at The Eastside Rooms in Birmingham. Up to 100 suppliers will be able to attend, with a limit of two representatives per organisation, ideally covering both technical and commercial disciplines.

The session will include presentations on the scheme’s objectives, programme, planning constraints and commercial approach, followed by breakout discussions focused on procurement, technical requirements and risk allocation.

A concluding Q&A session will gather feedback on preferred contract structures, barriers to bidding and minimum participation requirements.

The formal tender notice is expected to be published on 7 December 2026, marking the next significant milestone for one of the region’s largest planned highways upgrades.