East London Line Extension, UK
The East London line extension project (£1bn) involved extending the existing East London Line and integrating it into the London Overground mainline network. This was achieved by re-opening sections of disused railway lines and converting track electrified by the third-rail system, signalling, lineside signage and communication systems, etc. to mainline standards. Arnmore provided commercial management advice for the eLINK consortium Tender submission to Transport for London.
Key Client Benefits:
Arnmore provided strategic advice regarding the Tender submission, including:
- Preparation and production of the Commercial Management Document for bid submission detailing proposals for: Cost Reporting, Change Management, Procurement, Contractual & Insurance Arrangements and Risk Management.
- Reviewing, commenting and advising on the Commercial aspects of the draft NEC contract and subsequent negotiations with TfL.
- Quantitative and Qualitative Risk Management for Bid Submission. This related to the apportionment and agreement of where risks were best placed between the consortium members.
- The production of inflation forecasts for presentation to the eLINK board, which were subsequently included in the Tendered value. The client required bidders to take the inflation risk for the duration of the project.
- Trade-off analysis linked to life cycle was delivered for materials selection enabling a more robust commercial proposal and greater confidence in proposed solution.
Our approach provided a compliant and more commercially robust bid to be submitted by the consortium.
HSL Zuid, Holland
The HSL Zuid Holland €1.3 bn project is a 125 km long high-speed railway line between Holland and Belgium. The line will be exclusively operated by NS Highspeed (a joint venture consortium between Nederlandse Spoorwegen and KLM Airlines) operating a combination of new and existing rail to connect with The Hague and Breda with an ongoing service to Antwerp Brussels. The line will be served by newly renovated Thalys trains from Amsterdam to Brussels which have a maximum speed of 300km/hr.
Key Client Benefits:
Arnmore provided advice to the successful construction in relation to:
- Approach to risk management and risk provision in the project for construction, operation and route availability.
- Risk apportionment between Client and Consortium, developed scenarios to demonstrate where risks were best placed. This resulted in a split project risk structure. Operational and revenue risk assessment to inform cost provision to be included in the bid for maintenance and renewal.
- Negotiations and advice during preferred bidder stage on commercial issues cost and risk provisions to assist successful conclusion of deal.
- Optimized maintenance cycles and deployment of Maintenance Rapid Response teams at key locations
Our Approach delivered achievable cost reduction > 25 Million Euros over 25 years Euros.