10.11.16
Greater NR cost efficiency vital or ‘more jobs will get pulled’
Network Rail’s director of northern programmes has not ruled out further project deferrals by the infrastructure owner if costs are not kept under control.
At this year’s TransCityRail North Conference, Chris Montgomery, who was influential in the work to redesign Birmingham New Street station, told delegates that “if the costs go up, jobs will get pulled”.
Speaking after this week’s news that four GWML electrification projects had been deferred, Montgomery noted that the industry shouldn’t have been shocked, as the move was testament to the recommendations from both the Hendy and Shaw reports.
“It wasn’t a false promise,” explained Montgomery. “If the costs go up, jobs will get pulled.”
He added that this means it is even more important for Network Rail to be efficient.
The director of northern programmes, which also includes the TransPennine upgrade and north west electrification projects that have both been delayed, called on the supply chain to work with the infrastructure owner to help it become more efficient.
As noted by Andy Haynes, Network Rail’s contracts and procurement director for routes services, the company is having to get more out of less, as the funding structure has changed since the infrastructure owner became a public sector body.
“There is a real contradiction,” noted Montgomery. “We need to vastly improve the network and infrastructure, but punctuality and performance is key to everything.
“We are in the paradigm where we have got a very small window of opportunity where we can do this work without affecting the travelling public.
“I’m a real believer in lean and actually think the lean techniques for the plan of the job, the way we package a job and put it out to market, including the contractual mechanisms, is important, as everything we want to do needs to be focused on becoming more efficient.”
Have you got a story to tell? Would you like to become an RTM columnist? If so, click here.