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Construction News
15/03/2016
Committee Slams TfL After Costs Overrun On Tube Upgrade Project
A London Assembly committee has slammed bosses at Transport for London (TfL) after the cost of a tube upgrade project is due to spiral to nearly £900 million.
The 'Transport for London's Signal Failure' report examines the circumstances behind Bombardier Transport's appointment to improve signalling on the District, Circle, Metropolitan and Hammersmith & City lines
TfL paid £85m to cancel the contract in 2013, two years after the contractor had been appointed.
However, the Sub-Surface Upgrade Programme (SSUP) is now five years behind schedule and costing much more than anticipated.
The Budget and Performance Committee, which scrutinised TfL's SSUP over three years, concluded in its report how 'poor commercial expertise and a lack of IT procurement skills' left the organisation 'ill-prepared' to appoint a suitable contractor.
In addition, the organisation was vulnerable enough to be duped into a contract which Bombardier could never deliver.
The report also highlights a certain culture at TfL which was 'only interested in presenting good news' and was in denial about the programmes progress, therefore allowing it to run on for longer than it should have.
Overall, the project is set to cost TfL £271m in lost fares, as 11 million fewer journeys will take place per year on the underground between 2017 and 2023.
John Biggs AM, Chairman of the Committee, said the situation is "nothing short of a disaster for London".
"Neither TfL nor Bombardier's management teams were up to the task of managing the programme, but it is Londoners that will ultimately pay the price in travel delays and inefficiencies," he said.
"What is most remarkable about this affair is that no-one in TfL has been held to account, and the Mayor, who chairs its board, serenely and indifferently acts as if a £900 million increase to the budget isn't an issue. In government, heads – political or official – would roll after such financial mismanagement. At TfL the key players have been promoted and nobody was to blame. It is a scandal."
To view the report, visit here.
(LM/MH)
The 'Transport for London's Signal Failure' report examines the circumstances behind Bombardier Transport's appointment to improve signalling on the District, Circle, Metropolitan and Hammersmith & City lines
TfL paid £85m to cancel the contract in 2013, two years after the contractor had been appointed.
However, the Sub-Surface Upgrade Programme (SSUP) is now five years behind schedule and costing much more than anticipated.
The Budget and Performance Committee, which scrutinised TfL's SSUP over three years, concluded in its report how 'poor commercial expertise and a lack of IT procurement skills' left the organisation 'ill-prepared' to appoint a suitable contractor.
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In addition, the organisation was vulnerable enough to be duped into a contract which Bombardier could never deliver.
The report also highlights a certain culture at TfL which was 'only interested in presenting good news' and was in denial about the programmes progress, therefore allowing it to run on for longer than it should have.
Overall, the project is set to cost TfL £271m in lost fares, as 11 million fewer journeys will take place per year on the underground between 2017 and 2023.
John Biggs AM, Chairman of the Committee, said the situation is "nothing short of a disaster for London".
"Neither TfL nor Bombardier's management teams were up to the task of managing the programme, but it is Londoners that will ultimately pay the price in travel delays and inefficiencies," he said.
"What is most remarkable about this affair is that no-one in TfL has been held to account, and the Mayor, who chairs its board, serenely and indifferently acts as if a £900 million increase to the budget isn't an issue. In government, heads – political or official – would roll after such financial mismanagement. At TfL the key players have been promoted and nobody was to blame. It is a scandal."
To view the report, visit here.
(LM/MH)
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