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He added that current contracting set-up is “outdated and ill-equipped to carry us forward in this new, post recession economy.”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