Final multi-million-pound contracts awarded to deliver rail projects in Scotland and North East

17 January 2019 15:26 - BAM Nuttall Ltd

(Press release Network Rail:) London, 17 January 2019 - Network Rail has announced further multi-million-pound contract awards for Control Period 6 (2019-2024), worth a total of £467m.

The most significant work-bank for Scotland and North East (SNE), a renewals and enhancements framework valued at £320m, has been awarded to BAM Nuttall Ltd. The framework will complete a wide range of projects including replacing and refurbishing structures across the route and delivering improvements at stations.

In addition, two Geotech frameworks worth a combined £147m have been awarded to Story Contracting (London North East) and QTS (Scotland) as part of the procurement process.  At the end of last year, Story Contracting was also awarded a contract covering renewals and enhancements work in Scotland valued at around £135m.

The latest contract awards complete the procurement activity for Scotland and North East, which is anticipated to hold one of the largest work-banks for the coming five-year funding period.

Kris Kinnear, Interim Regional Director for SNE, said: ‘Work to renew our infrastructure is increasingly important to improve reliability for our passengers, and making sure we have the right suppliers to deliver those improvements is paramount. We look forward to working closely with our supply chain to build on the progress that has already been made and ultimately, build a better railway for our customers.’

Scotland and North East have awarded five-year contracts, with an option of two-year extensions on the Geotech framework. Kris added: ‘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.’

Alan McLeish, QTS Managing Director, said: ‘We are exceptionally proud of the collaborative work QTS has carried out during the last control period, with some outstanding geotechnical projects delivered across Scotland. It is a testament to the hard work of our team during the CP5 contract, and the strong relationship that we have built with Network Rail, that has allowed us to be successful in this CP6 tender process. Our expertise and commitment to finding further efficiencies for Network Rail by using innovative plant and methods, stands us in excellent stead to continue providing a high standard of work over the next five years.’

Jason Butterworth, Story Contracting Chief Executive, said: ‘We are thrilled with the news of another win for Network Rail which again reinforces our reputation for delivering quality projects safely, on time and to budget. This contract will mean we can employ even more professionals across the area and also entice new talent into the industry – including investment in the future with our graduate and apprentice programmes. It will also mean we can invest into local communities through our Corporate Social Responsibility programme which will deliver sustainable projects for local organisations and charities.’

Huw Jones, BAM Nuttall Rail Director, said: ‘BAM Nuttall is proud to be awarded this framework, which gives us the opportunity to strengthen our partnership with Network Rail and our fellow CP6 framework contractors. We look forward to establishing an integrated “One Team” approach with our partners to deliver exceptional business and safety performance, driving sustainable growth across Scotland and LNE, whilst enhancing passenger experience and the communities where we work.’

Scotland and North East are operating two frameworks in CP6

FRAMEWORK 1: RENEWALS AND ENHANCEMENTS

It comprises 3 Lots:
Lot 1: SNE – value £320m BAM Nuttall Limited
Lot 2: SCO – value £135m – awarded to Story Contracting
Lot 3: LNE – value £190m – awarded to AmcoGiffen (Amalgamated Construction Ltd)

FRAMEWORK 2: GEOTECH

It comprises 2 Lots:
Lot 1: LNE – value £47m Story Contracting
Lot 2: SCO – value £100m QTS

The frameworks cover works such as:

Structures

  • Underbridge Renewal
  • Underbridge Refurbishment
  • Overbridge Renewal
  • Overbridge Refurbishment
  • Scour Remediation
  • Coastal Defences
  • Retaining Walls
  • Footbridge Renewal / Removal
  • Footbridge Refurbishment
  • Tunnel Works
  • Culvert Works

Building and enhancement:

  • New Station Buildings
  • Modifications to Existing Station Buildings
  • Refurbishment of Station Buildings
  • Platform Works
  • New Under / Overbridges
  • Level Crossing Works
  • New Depots
  • Modifications to Existing Depots
  • Refurbishment of Depots
  • Geotech

Upgrade and renewal of:

  • Embankments
  • Cuttings
  • Natural Slope
  • Approach Earthworks
  • Tunnel Portals
  • Drainage
  • Formation
  • Network Rail’s delivery arm for renewals and projects, Infrastructure Projects (IP) organises itself into four regional areas – Scotland North East, Central, Southern and Western and Wales, and national programmes for Signalling, Track and the pan regional Northern Programme.
  • The tender and procurement process for CP6 was intentionally phased to help improve efficiency for both Network Rail and the supply chain.
  • The awards form part of Network Rail’s CP6 contracts, following the Office of Rail and Road’s final determination, which confirmed £35bn of funding for rail maintenance and renewals.
  • BAM Nuttall Limited also successfully acquired a framework contract to deliver work in the South East shortly before Christmas.
  • Story has been awarded framework contracts for structures work on the South of the LNW (London North Western) rail route, which covers Crewe to London, and property work from Preston to Crewe. The LNW route is home to the West Coast Mainline, which is the busiest mixed-use railway in Europe and supports the major British cities outside of London.

This contract will be completed over a two-year period and Story Contracting has established a new regional office in Birmingham to deliver the work, which is a significant strategic step for the business.

The contract equates to up to £38m of work for the Carlisle-headquartered company and is part of ‘CP6’ – Network Rail’s five-year programme during which it plans to spend £35bn making Britain’s railways more reliable.

Ian Purdham, Rail Director Story, said: “I am delighted that Story Contracting have won this framework as it forms an extension of our earthworks portfolio from LNW into LNE. It also secures a major framework in LNE which is part of our longterm growth strategy.  We are looking forward to continuing our relationship with Network Rail throughout LNE and collaborating with them and the other successful framework contractors”.