Construction Management

Network Rail to shake-up £9.6bn southern renewals delivery

Network Rail is aiming for a radical shake-up in the way renewals are delivered across its large southern region by appointing a new integrated collaborative team of firms to deliver a vast works programme over 10 years.

The fresh delivery approach will involve a switch to integrated and collaborative Project 13 principals of delivery for an estimated work programme of £4.5bn to £9bn over Control Period 7 and 8.

Its new Southern Integrated Delivery model will be used to deliver all categories of railway asset work including: signalling & telecoms, track, buildings & civils, electrification and plant and minor works.

Of the total spending estimate, buildings and civils will constitute 30% – 45%, track 15% – 25%, signalling & telecoms 5% – 15%, electrification and plant 5% -10% while minor works will constitute 20%- 30% of the overall estimated value.

The southern region is now starting the hunt for the first partners for the first work areas to deliver buildings & civils; and electrification and plant

The SID approach aims to harness the strengths, capabilities, and knowledge of the supply chain, through a knowledge sharing and digital transparent approach that breaks down tier one, two and three hierarchies to deliver better outcomes.

Under the new enterprise approach, financial rewards will be based on value and performance, rather than transferred risk and volume outputs.

Works will be undertaken on Kent Sussex and Wessex routes, primarily for renewals, although options exist to enable enhancements to also be delivered, subject to capacity and where the SID is considered the optimum procurement route.

Under the present procurement plan, all appointed firms will initially sign into a development phase agreement, scheduled to commence in December 2022 / January 2023 and run up until April 2024.

After this Network Rail will commence the main SID agreement.

Network Rail plans to host a virtual market briefing event on 1 November to set out the forthcoming procurement process.

To register for the event or for details of the presentation, email your name, organisation and contact number to Network Rail before 25 October 2021. Emails should be entitled “Southern Integrated Delivery (SID) – Market Briefing”.

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