Media centre

Thursday 15 Dec 2005

MULTI-MILLION POUND CIVIL FRAMEWORK CONTRACTS NOW IN PLACE

Region & Route:

National

Network Rail today announced the final multi-million pound civil engineering framework contract.  Nuttalls will be responsible for civil engineering work in the South East and this completes contracts for the entire UK network.  The five year ‘framework’ renewals contracts represents a key element of Network Rail’s task of rebuilding Britain’s railway and will deliver cost reductions and significant improvements in value for money through:

• more integrated methods of working
• reduction in overheads
• competitive pricing
• benchmarking unit rates for standardised work rates
• pain/gain incentives tied to key performance indicators

  Network Rail Chief Executive John Armitt said:  “The award of these contracts is a significant step toward our goal of controlling costs, whilst delivering a safer more reliable railway infrastructure and better train performance.  The huge task of rebuilding our railway is underway.” These contracts are ‘framework’ contracts and thus have no guaranteed work levels. However estimated values for the first year of the contract, and some more details on areas and contractors selected are as follows: Contractor Area Length of contract Est. 1st year value May Gurney London & the North East 5 years £25 million Kier South East (Anglia) 5 years £20 million McAlpine Western 5 years £25 million Nuttall South East 9 (South) 5 years (commences 1st April 2006) £25 million Mowlem Scotland 5 years £20 million Birse North West  5 years £25 million Birse Midlands 5 years £20 million