Network Rail regulation and performance

05.12.18

First CP6 contracts awarded by Network Rail in major £645m deal

The first major contracts for CP6 have been awarded by Network Rail, worth a combined £645m.

Story Contracting has been announced as the winner of ‘Lot 2,’ which covers renewals and enhancement work in Scotland and is worth around £135m.

‘Lot 3’ is valued around £190m and has been awarded to AmcoGiffen to deliver work on the London North East route.

But the remaining and most significant work-bank in the Scotland and North East (SNE) renewals and enhancements framework, ‘Lot 1’ – worth £320m – will only be announced later this year.

The framework announced today will complete a wide range of projects including replacing and refurbishing structures across the route and delivering improvements at stations.

The regional director of SNE, Kris Kinnear, stated: “Our CP6 contracts provide suppliers with substantial work-banks and the opportunity to be part of delivering essential improvements that will help shape the future of Britain’s rail network.

“Work to renew our infrastructure is increasingly important to improve reliability for our passengers and we look forward to working closely with Story and AmcoGiffen to deliver this.”

He added: “Significant five-year contracts not only benefit our key supply chain partners, but the thousands of companies who work for them too, providing them with the surety they need to invest in their people, innovation and value for money.”

These contracts are the first of Network Rail’s CP6 contracts to be let, following the ORR’s final determination. The next region to be announced will be Southern.

The SNE and Southern regions will likely hold largest work-banks over the next control periods, with over £5bn estimated to be spent per region in addition to network-wide upgrades.

The director of Story Scotland, which has won Lot 2, John MacArthur, noted: “I am absolutely delighted to win this contract which reflects the collaborative working relationships we have been building with Network Rail and other key clients in Scotland.

“The award also supports our growth plans in Scotland and our vision to provide a highly professional turn-key service to the construction industry, where we deliver rail and civils infrastructure with our in-house labour resource.”

The managing director of AmcoGiffen, Andries Liebenberg, commented: “We are delighted to have been appointed in partnership with Network Rail, delivering this programme of significant rail infrastructure investment. Providing substantial benefits to the travelling public, this framework award is testament to our long-standing relationship.”

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