Network Rail reorganisation opens up more work to competition
A reorganisation at Network Rail aims to improve the efficiency of its £2bn capital works programme by opening up more work to outside contractors.
A regionally based projects delivery business, Network Rail Infrastructure Projects, comes into being this week with four regional directors and three programme directors responsible for delivery of major renewal and enhancement infrastructure in their area. They will manage their own profit and loss accounts and will be charged with winning work under a new competitive structure proposed by Network Rail.
Simon Kirby, managing director, investment projects, said: "Network Rail is transforming the way it works as a company and taking the lead in driving change through the rail industry. Our commitment is to build not just a bigger and better railway, but a better value railway too.
“The investment Network Rail is delivering now and for the future is crucial to accommodating increasing demand and supporting economic growth. But it is clear that capital investment in infrastructure must be delivered as efficiently as possible, with the best possible value secured for every pound spent.”
A new ‘client’ function has also been created within Network Rail that will define project outputs and work with delivery organisations earlier in the project lifecycle. In most instances the delivery organisation will be Network Rail Infrastructure Projects. However, some lower risk projects will be put out to tender to benchmark the company’s capital project delivery. To enable open competition for this work, Network Rail Infrastructure Projects must become a separate legal entity. This is planned for 2013, when it can start to bid against other market competitors for some of Network Rail’s capital programme for Control Period 5 (2014-19), as well as for other UK off-network projects.
Mr Kirby concluded: "The changes we’re making to our projects delivery business will encourage competition, innovation and closer partnerships with our suppliers to deliver projects more safely, competitively and efficiently.
“Our focus over the next few years will be on improving and becoming more efficient at delivering projects in a commercial environment. Our aim is for Network Rail Infrastructure Projects to build an unrivalled record of successful project completion, innovation and reduced cost to rail users and taxpayers whilst delivering better value for money. In the longer term, the goal is to be the leader in providing rail infrastructure solutions in Britain.”
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This article was published on 17/04/2012 (last updated on 18/04/2012).