Media centre

Tuesday 19 Apr 2005

30% SAVING ACHIEVED FOLLOWING AWARD OF NEW SMALL PLANT HIRE CONTRACT

Region & Route:

National

Big savings have been achieved following the award of new contracts for the hire and maintenance of small plant and tools across the UK. AMEC, for rail specific plant, and HSS Hire, for non-rail specific, have been selected from a tough and competitive field. The new three-year ‘framework’ contracts, with an additional two-year extension option, represent a key element of Network Rail’s task of rebuilding Britain’s railway.  They will deliver cost reductions of almost 30% and will see significant improvements in value for money through: ·         consolidation of volumes ·         reduction in charges through competitive pricing ·         standardisation across the country ·         better utilisation of equipment ·         reduction in the age profile of the kit used Richard Fenny, Maintenance Director, said: “The award of these contracts is a significant step toward our goal of controlling costs, while delivering a safer, more reliable railway infrastructure and better train performance. The huge task of rebuilding our railway is well underway.” These contracts are ‘framework’ contracts and thus have no guaranteed work levels. However, estimated values for the first year of the contract are as follows: New contractor Area Length of contract Estimated first year value AMEC National (rail specific) 3 years (+ 2 option) £10 million HSS Hire National (non-rail specific) 3 years (+ 2 option) £3 million Old contractor First Engineering Scotland and Manchester Jarvis Fleet Management North East, Great Northern, Liverpool, East Mids A-Plant East Midlands Torrent West Country, Wales & Marches, West Coast Sth, Preston Amey Fleet Services West Mids, West Country, Thames Valley AMEC West Anglia, Sussex Balfour Beatty Great Eastern, Wessex, Kent