Tube bosses have cut-out main contractors altogether to work directly with specialist subcontractors on the £330m stations modernisation plan over the next seven years.
They hope to cut costs by 25% working directly with the trade contractors using the consultants to oversee work on the 70-station improvement programme.
The new ‘Stake delivery model’ is being used to give specialists greater freedom to value engineer and innovate freely.
To hammer home LU’s new procurement philosophy tube bosses have adopted a new slogan: ‘production leads, everything else enables’.
Programme director for stations, Miles Ashley, said: “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.
“Great craftsmanship is the key to the success of any infrastructure project, and our Stake approach allows long-term engagement with the people at the workface and recognises that they are the most valuable part of our team.”
Stations delivery team
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
Atkins, Jacobs, Capita
London Underground first piloted the new Stake approach during the refurbishment of Embankment station.
Bosses hope the seven-year programme can be used to enable suppliers and their workforces to work closely with LU to improve delivery with a focus on delivering high quality work first time round.
This alone will deliver increased value across the programme and reduced unit costs.
Also LU will establish craft academies to support subcontractors so they can deliver work faster and on a larger scale.
These academies will provide craft skills training as well as frontline leadership for supervisors and construction managers on the skills and practices needed to deliver the programme efficiently.
Refurbishment project manager Jeevani Subasinghe said: “Stake has provided the flexibility to work closely with our suppliers and organise work to reduce our project delivery times.”
Alex Morrissey, director of tiling contractor DMC, said: “Stake is opening up opportunities to value engineer and innovate in ways that weren’t possible under conventional sub-contracting arrangements.
“It’s a breath of fresh air which values our skill and knowledge.”
Six principles of Stake model
The Stake delivery model is a Treasury trial project under its Infrastructure UK office.
The unit is responsible for achieving greater value for money on infrastructure projects and has set out six key principles:
- Engaging with the SME contractors who actually do the work on-site
- Simplified contract arrangements with LU taking the majority of the risk
- Having competent and capable resources
- Giving a long-term commitment to suppliers
- Creating a ‘one team’ approach
- ‘Production leads, everything else enables’