Tube boss blasts main contracting model

Grant Prior 11 years ago
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London Underground’s infrastructure boss has dismissed the current supply chain model for contracting as “unsustainable” as tube leaders cut out main contractors to work directly with specialists.

LU confirmed in April it will be dumping traditional main contracting to work directly with specialist subcontractors on its £330m stations modernisation plan over the next seven years.

Tube bosses named the 20 subcontractors and three consultants it will use after a major shake-up in the way it delivers station upgrade work.

Now London Underground Head of Commercial – Infrastructure Geoff Gilbert has confirmed the thinking behind the move to an audience of specialists.

Speaking at last week’s Breakthrough Construction 2014 conference, organised by StreetwiseSubbie.com, Gilbert said:  “The current construction supply chain approach is unsustainable.”

He added that current contracting set-up is “outdated and ill-equipped to carry us forward in this new, post recession economy.”

Gilbert confirmed the new approach which involves working direct with Tier 3 and 4 specialist contractors in order to “sustain quality and productivity  but reduce costs and potentially improve time scales of works.”

The move is designed to cut costs by 25% working directly with the trade contractors using the consultants to oversee work on the 70-station improvement programme.

 

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