Network Rail announces first contract awards for multi-billion-pound work bank in CP6

Network Rail announces first contract awards for multi-billion-pound work bank in CP6

Network Rail has announced the award of the first multi-million-pound contracts for Control Period 6 (2019-2024), worth a combined £645m.

Story Contracting has successfully acquired ‘Lot 2’ covering renewals and enhancements work in Scotland valued at around £135m, while AmcoGiffen have secured ‘Lot 3’ to deliver work on the London North East route valued at around £190m. The framework will complete a wide range of projects including replacing and refurbishing structures across the route and delivering improvements at stations.

The remaining and most significant work-bank in the Scotland and North East (SNE) renewals and enhancements framework, ‘Lot 1’, will be announced later this year and is valued at a further £320m. In addition to the framework covering renewals and enhancements, SNE is also set to announce the award of its £147m Geotech framework later this month.

Kris Kinnear, Regional Director for SNE, said “Our CP6 contracts provide suppliers with substantial work-banks and the opportunity to be part of delivering essential improvements that will help shape the future of Britain’s rail network. Work to renew our infrastructure is increasingly important to improve reliability for our passengers and we look forward to working closely with Story and AmcoGiffen to deliver this.”

“Significant five-year contracts not only benefit our key supply chain partners, but the thousands of companies who work for them too, providing them with the surety they need to invest in their people, innovation and value for money.”

The awards are the first of Network Rail’s CP6 contracts to be let following the Office of Rail and Road’s final determination, which confirmed £35bn of funding for rail maintenance and renewals.

Scotland North East and Southern regions are anticipated to hold the largest work-banks for the coming five-years, with over £5bn of renewals spend estimated per region in addition to substantial network wide upgrades. Southern will be the next region to announce its contract awards next month.

John MacArthur, Director of Story Scotland, said: “I am absolutely delighted to win this contract which reflects the collaborative working relationships we have been building with Network Rail and other key clients in Scotland. The award also supports our growth plans in Scotland and our vision to provide a highly professional turn-key service to the construction industry, where we deliver rail and civils infrastructure with our in-house labour resource. The delivery of this contract will also be supported by our award-winning Plant Division who are one of only two suppliers in the UK to be awarded GOLD in Network Rail’s Route to Gold. This award also means we will be able to bring security to our trusted supply chain and generate opportunities for new partners.”

Andries Liebenberg, Managing Director AmcoGiffen, said “We are delighted to have been appointed in partnership with Network Rail, delivering this programme of significant rail infrastructure investment. Providing substantial benefits to the travelling public, this framework award is testament to our long-standing relationship. AmcoGiffen’s engineering and project management expertise, coupled with our detailed regional knowledge, means we are ideally placed to support all stakeholders. Delivering added social value in the communities we operate, we’re creating apprenticeship and trainee programmes, developing local supply chain spend and employment opportunities.”