It will deliver renewals work worth up to £9bn over the next 10 years.
An early adopter of the enterprise model Project 13, Network Rail’s Works Delivery team has chosen four partners to form the alliance, known as Southern Integrated Delivery (SID).
They will deliver renewals work worth up to £9bn for the 10 years to 2034.
How Network Rail has adopted Project 13
Aligning with Project 13 principles means that Network Rail’s new model for delivering the renewals work will be based around three distinct entities:
- The capable owner (Network Rail)
- Southern Integrated Delivery (SID)
- The eco-system
It replaces the existing Regional Asset Management and Capital Delivery operating structure.
As the capable owner, Network Rail will provide strategic direction and leadership. It will focus on the delivery of outcomes – rather than how it should be done or how it should be delivered.
The SID alliance will be a fully integrated team. It will own the work and manage it at the portfolio level. It will be commercially aligned and jointly incentivised (win together/ lose together) to create a ‘share in success’ environment.
The SID business partners will generate profit through performance against the final determination, rather than work done and turnover.
At first, the eco system will be formed of Network Rail and supplier frameworks.
As the enterprise model matures, Network Rail intends for the SID to collectively develop a new set of contracting arrangements that will complement the capabilities of the SID.
The benefits of Project 13 principles
Project 13 is an approach to delivering infrastructure projects, referred to as an enterprise model, that is more collaborative and aims to ensure better outcomes for customers.
Using Project 13 principles, Network Rail’s new alliance hopes to deliver the work with an integrated and coordinated approach.
According to Network Rail, the approach will allow the SID to take advantage of efficiency savings.
Also, by linking profit to extra work, the partners will be collectively incentivised to deliver value for taxpayers and rail users.
Ellie Burrows, managing director for Network Rail's Southern region, said: "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."