Latest Rail News

08.03.13

Great Western bidders take legal action against DfT

The four TOCs who spent millions preparing their bids for the now-scrapped Great Western rail franchise competition are beginning legal proceedings against the Government for compensation.

FirstGroup, Stagecoach, Arriva and National Express each spent around £10m to submit their bids for the franchise, which was called off following the West Coast Main Line chaos.

Bidders for the West Coast contract are being compensated, unlike on Great Western, and the four TOCs suggest this is unfair.

In January, the DfT said: “In keeping with the relevant invitations to tender, which made clear that bidders are responsible for their own costs, the Secretary of State does not believe it would be appropriate to reimburse bidders.”

There will be a ‘stay’ in legal proceedings until the end of March, the BBC has reported.

Tell us what you think – have your say below, or email us directly at [email protected]

Comments

Mark Johnson   13/06/2016 at 09:37

Whilst I agree that companies should normally cover the costs of their own bids, surely this only valid when the competition continues to completion and a contract is awarded. This then would mean that the cost is an investment towards the possibility of winning the contract, and the bed bid would win. If the competition is called off due to no fault of the bidders (i.e. no foul play or collusion, etc.), then surely it would only be fail that some recovery of costs is possible. (PS, I'm not involved in any way with this bid or the tendering companies. Its just my view).

Add your comment

related

Rail industry Focus

View all News

Comment

The challenge of completing Crossrail

05/07/2019The challenge of completing Crossrail

With a new plan now in place to deliver Crossrail, Hedley Ayres, National Audit Office manager, major projects and programmes, takes a look at ho... more >
Preparing the industry to deliver trains for the future

04/07/2019Preparing the industry to deliver trains for the future

The move to decarbonise the rail network involves shifting to cleaner modes of traction by 2050. David Clarke, technical director at the Railway ... more >

'the sleepers' blog

On the right track, Sulzer is awarded RISAS accreditation for Nottingham Service Centre

29/06/2020On the right track, Sulzer is awarded RISAS accreditation for Nottingham Service Centre

Following an independent audit, Sulzer’s Nottingham Service Centre has been accepted as part of the rail industry supplier approval scheme (RISAS). The accreditation reinforces the high-quality standards that are maintained by Sulzer’s... more >
read more blog posts from 'the sleeper' >

Interviews

Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

24/06/2019Andrew Haines, CE of Network Rail, tells BBC News his organisation could issue future rail franchises

Andrew Haines, the Chief Executive of Network Rail, has told the Today programme on Radio 4's BBC’s flagship news programme that he would not rule out his organisation issuing future r... more >
Advancing the rail industry with management degree apprenticeships

08/05/2019Advancing the rail industry with management degree apprenticeships

In answering the pressing questions of how current and future generations of managers can provide solutions to high-profile infrastructure projects across the UK, Pearson Business School, part of... more >