Network Rail has adopted a pioneering model to enhance its Southern maintenance framework.
- Fifteen suppliers have been selected for a £1.4bn project across the Southern Region, leveraging an innovative collaboration model.
- The Southern Integrated Delivery (SID) alliance aims to synergise supplier expertise for efficient project delivery from 2024-2034.
- This new approach follows the successful Project 13 model, improving outcomes through performance-based rewards.
- The framework focuses on consistency and innovation, with substantial opportunities for SMEs across various sub-disciplines.
Network Rail has embarked on a significant reformation of its Southern Region maintenance framework, appointing fifteen suppliers under a £1.4bn contract that applies a groundbreaking model previously unseen in the railway sector. The initiative focuses on both planned and reactive maintenance, utilising an innovative collaborative ecosystem to drive efficiency and enhance outcomes.
The Southern Integrated Delivery (SID) alliance includes eminent firms such as AtkinsRéalis and VolkerFitzpatrick, operating under a ten-year partnership framework. This alliance is tasked with delivering Buildings & Civils works across Network Rail’s Southern Region during Control Period 7 (CP7) from 2024 to 2029 and Control Period 8 (CP8) from 2029 to 2034. Their approach is rooted in the Southern Renewals Enterprise (SRE) model, established in April 2024, to manage a £9bn renewals portfolio. This model, inspired by the Institution of Civil Engineers’ Project 13, promotes long-term planning and operational efficiency by rewarding performance-based outcomes.
Significantly, the SRE model marks a departure from traditional contracting methods by emphasising value-driven, long-term partnerships. By building on lessons from other major programmes, this framework aspires to introduce greater value and efficiency in project delivery, which is anticipated to yield better outcomes for passengers and freight services alike.
The revised framework structure amalgamates seven existing frameworks into a single unified system, thereby fostering regional consistency and nurturing sustainable growth. By reducing reliance on mini tendering competitions, the framework aims to cultivate long-term relationships and drive innovation amongst local SMEs. Network Rail has committed to awarding a substantial portion of the framework to SMEs, which is expected to stimulate local economic growth and unlock innovation while streamlining administrative costs.
Network Rail’s strategic commercial director, Cameron Burns, highlighted the progressive nature of this framework, which is designed to promote collaboration and reduce administrative burdens. Approximately 53% of framework expenditure is destined for SMEs, providing these entities with opportunities to contribute significantly to regional infrastructure.
The SID, led by Liz Baldwin, has emphasised that this framework represents the most substantial financial commitment from their Works Delivery team to date. Baldwin stated, “We want to radically transform the way in which suppliers are incentivised and rewarded in the Southern Region… by decoupling turnover from profit and incentivising delivery partners around efficiencies and outcomes.” This approach not only guarantees a minimum committed spend for each partner but also inspires investment in innovation and efficiencies.
Network Rail’s adoption of the Project 13 model sets a new benchmark for collaboration and efficiency in infrastructure projects.
