Network Rail targets overseas consultancy work

Network Rail is restructuring its business to compete for consultancy work overseas and infrastructure enhancement projects in the UK. The programme involves creating new bidding and contracting divisions in response to changes recommended by the Department for Transport’s McNulty review, which will enable engineering companies to compete with Network Rail to manage and carry out UK enhancement programmes.

Part of the restructuring is designed to position NR as an ‘intelligent client’ by developing new contractual models that will deliver better value for money through close co-operation with suppliers. A range of new approaches is being developed, from early supplier involvement in project concepts and designs to forming alliances and potentially ‘design build operate and maintain’ limited partnerships.

Chief executive David Higgins said Network Rail’s intention was to create partnership structures that “lead the way for the entire construction industry”.

A NewCo company will be set up by April next year to use NR’s experience in managing projects and developing the new contractual models to break into overseas markets. Targets include the Middle East and Asia Pacific. The company said it received regular approaches from overseas requesting advice on new projects and anticipated that its consultancy services would initially cover design, management and procurement of infrastructure works.

• Client Customer Contract Alignment for Transport Projects – an LTT-sponsored conference exploring supplier relationships and partnership building in the transport sector – will be held on July 14 in London.