5 LUL claims that the axle box failures represent a risk taken that the Infraco priced for in the contracts: the need to maintain assets that are fit for purpose and to keep safety risks As Low As Reasonably Practicable (ALARP). LUL believe that Infraco JNP should therefore bear the capital costs of the replacement programme and any abatements caused by reduced availability.
6 But Infraco JNP argues that it is not liable for these costs, because:
■ The issue was identified late in the negotiations, just prior to transfer. At the time, the Infracos argued that efforts to rectify such defaults should be defined as "transition projects". LUL successfully rejected this argument on the grounds that this risk was already priced into the Infraco bid.
■ Infraco JNP also suggest that LUL is changing the standard on roller bearings and has applied for change in classification as a safety change in relation to the replacement of the axle boxes. The Piccadilly Line trains currently have spherical roller bearings, whereas other fleets are equipped with tapered roller bearings. The Infraco proposes that Piccadilly Line trains be fitted with tapered roller bearings, to ensure that the bearings last until the end of the train stock's life. They argue that not undertaking a like for like replacement represents a change in standard over what was required at contract signature. LUL, however, state that there is no standard for bearings, but rather that the choice of bearing design resides with the Infraco so long as risks are kept ALARP - which would be the case with a like for like replacement, at least in the early periods of their lives.