Four chosen for £9bn Network Rail renewals scheme

Network Rail has picked four firms to work on its renewals jobs in the South of England over the next decade.

Within the renewals portfolio – which is expected to be worth up to £9bn from 2024 to 2034 – VolkerFitzpatrick will work on buildings and civils, Octavius on electrification and plant, VolkerRail on track and Atkins on signalling.

The work will take place under the Southern Integrated Delivery scheme, described as an “innovative, performance-based alliance”.

Network Rail said the model will work by “tying efficiency savings found by partners to increasing the work bank, and linking profit to extra work delivered”.

This approach is intended to increase efficiency and incentivise contractors to deliver value. It is based on the Institution of Civil Engineers’ (ICE) Project 13 principles, developed following cross-industry consultation.

The principles are designed to support “more integrated and collaborative arrangements” for delivering major infrastructure projects. The ICE says that the transactional model for delivering infrastructure is “broken”.

Discussions are underway to decide Network Rail’s renewals budget for the next five-year funding period as it negotiates a settlement with its regulator, the Office of Rail and Road.

Ellie Burrows, managing director for Network Rail’s Southern region, said: “I am really excited for the future of project delivery in the southern region – the rail industry has consistently demonstrated that when it comes together, it can do amazing things.

“This transformational step will bring all those ingredients together for the long-term delivery of renewals and make a tangible difference to passengers and freight-users alike.”