SUPPLY CHAIN

Generating £22 billion in the first three years of Control Period 5 (CP5, 2014-19), Network Rail is the UK’s largest infrastructure client. Of this figure, it said 99% went to UK-based businesses.

NR warns: “Stable and consistent activity levels are critical for efficient delivery by the supply chain. We must avoid the huge variation that we have previously had for some activities, so that we can better support the supply chain in delivering the country’s major programme of infrastructure investment.

On February 12, NR Chief Executive Mark Carne said: “The capability of the supply chain? We have analysed this. The infrastructure workload is very significant across the UK. The really critical thing is a fight for resources. We want profitable contracts - it’s basic but important.

“Secondly, providing continuity means there will be a long-term framework to provide training.”

He spoke of the situation concerning Carillion’s collapse ( RAIL 845): “We have around 30 contracts with Carillion. Within one week we gave assurance to sub-contractors about pay, and got them money within two weeks. We told hundreds of SMEs that you will be paid.”

He said NR could see the risk of Carillion defaulting and planned accordingly, but explained: “Carillion didn’t fail because of the railway, as they were good deals. I have had half a dozen letters from CEOs of major businesses offering to help anyway they can. Carillion’s failure is a huge blow to construction in the UK.”