New procurement deal sees Underground contract direct with over 20 small firms

London Underground has directly hired over 20 SME contractors and three multi-discipline design firms to bring a new and collaborative approach to modernising 70 stations in a seven year, £330m investment programme.

The Stake delivery model it is using is part of an Infrastructure UK trial project and is designed to create greater efficiency by reducing sub-contractor layers in the supply chain. LU will be engaging directly with the SMEs.

Stake adheres to six key principles:

  • Engaging with the sme contractors who actually do the work on site
  • Simplified contractual arrangements with LU taking the majority of the risk
  • Giving a long term commitment to suppliers
  • Having competent and capable resources
  • Creating a ‘one team’ approach
  • Production leads, everything else enables.

The contractors involved are: Wingate, Delatim, Giffin Group, Atkins, Fourway, Magnolia, Emerald, Close Brothers, Livis, DMC, Excel, K&M McLoughlin, JNG, HA Marks, AGS, Community Clean, UKDN, Waterflow, Lanes Group, Hillmore Fire Protection, Young & Young Security, TRAD Scaffolding, Millcroft.

Appointed designers are: Atkins, Jacobs, Capita.

LU is working with the companies to establish craft academies to support the aim of delivering work faster and on a larger scale. Academies will provide craft skills training as well as frontline leadership for supervisors and construction managers.

“Construction supply chains have become multi tiered and fragmented and it could be said that the industry has lost sight of the importance of craft skills in delivering efficiently,” said LU programme director for stations Miles Ashley.

Director of tiling contractor DMC Alex Morrissey said: “Stake is opening up opportunities to value engineer and innovate in ways that weren’t possible under conventional sub-contracting arrangements. It is a breath of fresh air which values our skills and knowledge.”

See analysis  - "Network Rail's new infrastructure boss expected to refresh delivery approach"

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