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Larger renewal schemes pay off for Network Rail.
<25A0> Contractors angry that [pounds sterling]1m-plus projects outside contracted framework deals are reducing margins to 2%.
Network Rail (NR) is achieving "impressive results" by externally tendering 40% of renewals works on a competitive basis - news that might worry the rail operator's six renewals framework contractors. The majority of NR's non-rail renewals work is covered by six five-year contracts with Alfred McAlpine, Birse Rail/Galliford Try, Edmund Nuttall, Kier, May Gurney and Mowlem. The frameworks are used for schemes worth up to approximately [pounds sterling]1m. However, larger projects can be tendered outside the framework deals. Director for major projects and investments Simon Kirby told delegates at Civils 2005 that the rail operator is getting "significant gains" in tendering those works on a competitive basis, specifically in terms of cost reductions. NR is striving to meet its 31% cost reduction target by 2009 and has already achieved a ...
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Local Government (Best Value and Capping) Bill announced in Queen's Speech. Compulsory Competitive Tendering will be abolished and Council's will be required to review all services every five years and to set targets for performance...