Network Rail has revealed plans to slash its rail renewal contractors from six to four in a bid to achieve £150M efficiency savings across the railway.
Amey Seco (JV), Balfour Beatty Rail, Carillion Rail, Jarvis, First Engineering and Grant Rail Group will fight it out over the next six months to retain their place on the multi-million pound framework. Network Rail projects and engineering director Peter Henderson said: 'We are confident that retaining a reduced number of track renewals contractors is the best way forward for renewals activity. As well as the core renewals work awarded under the existing contracts the opportunities to win elements of competitively awarded work remains, which will drive further efficiencies by offering growth in turnover for the highest performers.' Network Rail will undertake a six-month review of the contractors, measuring their performance across key areas including safety, volume of work achieved, finishing jobs on time, unit costs and company culture. Using these measures, the top four performers from the present six suppliers will be selected to continue under the existing framework arrangement.Network Rail's decision follows a six-month review of the way it undertakes track renewals. It has concluded that although track renewal volumes remain constant, greater efficiencies will reduce the need for as many contractors.