Track being installed during engineering work (Photo: Network Rail)

UK: Network Rail has appointed four companies to the Southern Integrated Delivery alliance which will undertake an estimated £9bn of renewal works in its Southern Region during Control Period 7 (2024-29) and CP8 (2029-34).

Southern Integrated Delivery alliance
VolkerFitzpatrick Buildings & civils
Octavius Electrification & plant
VolkerRail Track
Atkins Signalling

The alliance will use an enterprise model based on the Institution of Civil Engineers’ Project 13 principles. Developed following significant cross-industry consultation over the last 2½ years, these aim to provide a ‘transformational change’ in how work is delivered by merging the capabilities of Network Rail and its supply chain.

The model will replace the existing Regional Asset Management and Capital Delivery operating structure, and is based around three distinct entities: the Capable Owner, Southern Integrated Delivery and the Eco-System.

The Capable Owner will provide strategic direction and leadership, expressing ’what we wish to achieve, rather than how it should be done or how it should be delivered’.

The SID will be a fully-integrated team bringing together the contractors 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, with the members generating profit through performance against the final determination rather than work-done and turnover.

The Eco-system will comprise strategic and tactical suppliers, incentivised along similar lines as the SID. Initially the eco-system will be formed of Network Rail and supplier frameworks, but the SID will collectively develop a new set of contracting arrangements that will complement its internal capabilities.

‘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’, said Ellie Burrows, Managing Director of Network Rail’s Southern Region, on February 21.