Network Rail has named an alliance led by Balfour Beatty as the ‘final preferred bidder’ for £1.5bn of track upgrade works in central England.
The contract has initial five-year period with an option to extend and covers track, points, and associated overhead lines and signalling work in London North West, London North East and East Midlands routes.
It has been awarded to Balfour Beatty, TSO and SNC-Lavalin’s Atkins business, subject to contract terms being finalised and agreed. Balfour Beatty has an 80% share in the alliance while Atkins and TSO each have 10% shares.
Balfour Beatty said the new geographically-focused alliance model will promote greater collaboration between Network Rail and its partners, ensuring ‘dedicated attention on regional-specific rail requirements and works’.
Network Rail said the announcement marks the last of three new geographically-focused alliances between Network Rail, designers and construction suppliers.
Its programme director for track, Steve Featherstone, said: ‘Reaching this important milestone ensures we will have a stable foundation for the delivery of the core railway infrastructure across Great Britain for the next decade.’
Balfour Beatty Group chief executive Leo Quinn said: ‘Our expertise will be focused on driving innovative solutions that deliver sustainable, safer rail infrastructure.
‘We believe that industry collaboration is the way to drive higher efficiency and service standards. Network Rail’s new alliance model is a great step forward in rail contract procurement.’
Network Rail’s delivery arm for renewals and projects, Infrastructure Projects currently organises itself into four regional areas – Scotland North East, Central, Southern and Western and Wales.