Contractors face uncertainty as Metronet schemes retendered

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The group that looks after more than half of the London Underground network has said it is re-tendering all jobs awarded by Metronet that have not started on site.

The group that looks after more than half of the London Underground network has said it is re-tendering all jobs awarded by Metronet that have not started on site.

The highest-profile casualty of Transport for London's decision looks set to be Costain's £50 million contract to refurbish Embankment station - a key hub in the middle of the capital.

TfL took over from Metronet in May after the company, whose former shareholders included Balfour Beatty and Atkins, went bust last summer.

Metronet was responsible for looking after the Bakerloo, central and Victoria lines as well as the Tube lines which run above and below ground.

Costain was first awarded the project in February 2007 and began design work. But the project was put on hold when Metronet went into administration last July.

A spokeswoman for TfL, which now controls Metronet, confirmed the revamp at Embankment would go ahead but not necessarily with the same contractor.

She told Construction News: "We are currently deciding how best to re-start the design work. The design intent is to modernise the existing station and the best means of carrying out the work is currently being considered."

The news is a blow for Costain but a source at the firm said: "We remain in active discussion about finding a way to continue with the work for Embankment. If the job is re-tendered we'll -definitely be looking at it."

And TfL has confirmed that it will be re-tendering all Metronet jobs that have not started on site. The spokeswoman added: "Transport for London's priority is to ensure that upgrade work is continued while representing good value and therefore work at other stations not already in construction will be retendered."

YJL Infrastructure, part of Renew Holdings, which also includes Allenbuild, won two contracts worth £9 million to refurbish Sloane Square and Westbourne Park stations.

Design work for these was completed but the contracts were terminated under the new regime. A source at the contractor said: "It's not great news, we're quite disappointed."

Similarly, London-based Cleshar Contract Services won two jobs to refurbish Rickmansworth and Moor Park stations, both of which have now been pulled.

All five jobs were part of a competitive tender process in late 2006, which saw a tranche of six contracts awarded to firms outside Metronet's supply chain.

It is likely that they will be re-tendered under the transport operator's Vendor Capital Programme, frameworks for which were announced last month.

The only station revamp to go ahead as planned is the £25 million overhaul of Baker Street station won by Taylor Woodrow.

This has been highlighted as crucial for the 2012 Olympic Games given that the Jubilee line, which runs to Stratford in the east, is one of the lines that passes through the station.

Sector director at Taylor Woodrow Tim Fitch said: "We won the job under Metronet but it was renegotiated under London Underground's framework."

Who got what

Baker Street (£25 million) Taylor Woodrow
Embankment (£50 million) Costain
Sloane Square/Westbourne Park (£9 million) YJL Infrastructure
Rickmansworth/Moore Park (£50 million) Cleshar Contract Services