Network Rail Southern region announces successful alliance partners for revolutionary Southern Integrated Delivery portfolio for 2024-2034: New track being installed during engineering work

Tuesday 21 Feb 2023

Network Rail Southern region announces successful alliance partners for revolutionary Southern Integrated Delivery portfolio for 2024-2034

Region & Route:

Four partners have been selected to join Network Rail’s Works Delivery team in forming an innovative, performance-based alliance to deliver the Southern Region's up-to £9bn estimated renewals portfolio over the next ten years.

The partners will be VolkerFitzpatrick for Buildings and Civils, Octavius for Electrification and Plant, VolkerRail for Track and Atkins for Signalling, and will cover Control Period 7 (2024-2029) and Control Period 8 (2029-34). Work is underway deciding the renewals budget for CP7 as Network Rail works to agree a final settlement with the regulator.

The alliance, known as Southern Integrated Delivery, or SID, will be part of a new enterprise model based on the Institution of Civil Engineers’ Project 13 principles*, developed following significant cross-industry consultation over the last two and a half years.

With the SID, the Southern Region seeks to make a transformational change in how renewals work is delivered by merging the capabilities of Network Rail and its supply chain to develop an integrated and coordinated approach to delivery.

Through tying efficiency savings found by partners to increasing the workbank, and linking profit to extra work delivered, the SID will make the best use of resources, maximise efficiencies and be collectively incentivised to deliver value for taxpayers and the right outcomes for passengers, freight and railway funders. 

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."

James Hindes, managing director of VolkerFitzpatrick, said: “I am delighted that Network Rail has chosen VolkerFitzpatrick to join the Southern Integrated Delivery alliance. Our multi-disciplinary expertise, and collaborative approach will ensure the safe and efficient delivery of the portfolio, while considering the needs of rail users and local communities. Our teams are excited to be part of these works that will create a more resilient and futureproof railway for all.”

John Dowsett, CEO Octavius Infrastructure, said: “We are delighted to have been entrusted by Network Rail to deliver the E&P works across the Southern Region. We look forward to building on the strong relationships that we have developed within the Southern Region over the last 30 years; deepening this level of collaboration even further in the SID, by forming an exciting new Project 13 based alliance with Network Rail, our partners and our ecosystem. This award recognises the expertise that we have developed in expanding our infrastructure transport solutions to safely delivering electrification outcomes that are centred on putting passengers first.”

VolkerRail’s managing director, Steve Cocliff, said: “VolkerRail is thrilled to have been named as one of the four partners to undertake Network Rail’s Southern Integrated Delivery Enterprise.  This achievement is a testament to our total commitment to collaborative working, the strength and quality of our teams and our extensive experience in track renewals.

“We look forward to spending the next 13 months working alongside Network Rail, VolkerFitzpatrick, Atkins and Octavius, as we develop the industry’s first enterprise delivery model.”

Richard Robinson, CEO Atkins UK and Europe, said: “This is a tremendous win which adds to our alliance portfolio and reaffirms our position as a leading program integrator on complex, major infrastructure projects. We now look forward to working with our partners in an integrated team focussed on delivering better outcomes through digitally-driven innovation and collaboration.”


Notes to Editors

What is the model and how will it work?

The model for CP7 and CP8 will be based around three distinct entities: the Capable Owner, Southern Integrated Delivery (SID) and the Eco-System. The model will replace the existing Regional Asset Management and Capital Delivery operating structure and will require a fundamental shift in leadership, governance, behaviours, and skills.

Capable Owner

The Capable Owner will provide strategic direction and leadership and oversee the delivery of the overall enterprise. The focus will be on the delivery of outcomes, meaning a significant change in expressing what we wish to achieve, rather than how it should be done or how it should be delivered.

Southern Integrated Delivery (SID)

The SID will be a fully-integrated team that will bring together the strengths, capabilities, and knowledge of the Supply Chain and Network Rail. It will own the renewals work bank, manage it at the portfolio level and drive a transition to a production management ethos. The SID will be commercially aligned and jointly incentivised - win together / lose together - to create a ‘share in success’ environment.

Business partners within the SID will generate profit through performance against the Final Determination rather than work-done and turnover.

Eco system

The Eco-system will consist of both strategic and tactical suppliers, to be split depending on the level of influence they may have on final outcomes. Recognising that the key to unlocking efficiencies lies with the SME community, strategic members will be incentivised along similar lines as the SID. Initially the eco-system will be formed of Network Rail and Supplier Frameworks. However, as the Enterprise matures, we intend for the SID to collectively develop a new set of contracting arrangements that will complement the capabilities held within the SID.

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