RE:Extension for London Train Contract
OOPS a Misinterpretation of release! Heres an article from the UK newspaper the Telegraph.
Bombardier, the transport engineering group, has lost a £354m contract to modernise signalling on vital parts of the London Underground.
The company, which is employing around 100 engineers in London on the project to upgrade the Circle, District, Hammersmith & City and Metropolitan lines, said its signalling system was incompatible with the Underground's creaking infrastructure, more than two years after the contract was first awarded.
Transport for London (TfL) will now seek new bids for the contract, insisting that the planned upgrade will still be delivered to its time schedule of 2018. However, a spokesman admitted that the cost of the project may potentially rise.
Bombardier is expected to receive between £80m and £85m for its work to date, which includes installing a control centre and conducting surveying work. TfL, meanwhile, will issue the new tender in the New Year, possibly this week.
"There is no change to either [schedule or budget] at present, we have got to re-let the contract," the spokesman said. "There will be a negotiation with a new company on price." The spokesman added that TfL was looking to appoint a new company to the job as soon as possible.
The original contract was awarded in June 2011 but due to the complex nature of the four lines, which share much of the same infrastructure, Bombardier's signalling system is incompatible.
The project is forecast to increase capacity on the Circle and Hammersmith & City lines by 65pc, the District line by 24pc and the Metropolitan line by 27pc. Between them, the lines handle around 40pc of London Underground traffic.
Around 100 engineers are working on the project in London. A Bombardier spokesman said the company would aim to redistribute these jobs across its international operations but could not guarantee their safety.
"This is the right decision to make for London Underground and for Londoners," said London Underground managing director Mike Brown. "We have been working closely with Bombardier to find a way forward on what is one of the most challenging and complex pieces of work on the Tube."
"However it has become apparent to both parties that for the work to be completed within or close to the planned deadline, we need to push on with works with another contractor. Enabling works already completed by LU and Bombardier can be utilised when works recommence next year."