1 The increased costs of station works contributed the largest part of Metronet's overspend. By March 2007, Metronet was projecting that the station programme would cost £1.1 billion more than it had originally bid. Metronet was supposed to deliver 132 station modernisations, refurbishments and enhanced refurbishments by end March 2010. This included eight stations by end March 2005, none of which were delivered on time, and 35 stations by end March 2006 only 11 of which were delivered on time. To understand the evolution and causes of delay and extra costs, we have reviewed the work that was carried out on several stations, identifying factors that appear to have led to additional spending. These include Tube Lines stations as the comparator to Metronet. The stations looked at are set out in Figure 24.
24 | Station case studies | |||||||||||
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Station Project | Company | Due | Initial Target Cost1 | Update Position2 | ||||||||
Bow Road Station Modernisation | Metronet SSL | March 2005 | £3.6 million | £11.2 million | ||||||||
Shepherds Bush Station Refurbishment | Metronet SSL | March 2006 | £2 million | £4 million | ||||||||
Northfields Station Enhanced Refurbishment | Tube Lines | January 2005 | N/A | N/A | ||||||||
Stockwell Station Enhanced Refurbishment | Tube Lines | January 2006 | N/A | N/A | ||||||||
West Ruislip Station Refurbishment | Metronet BCV | March 2005 | £1.7 million | £4 million | ||||||||
Epping Station Modernisation | Metronet BCV | March 2006 | £2.9 million | £5.9 million | ||||||||
Source: London Underground Limited | ||||||||||||
NOTES 1 Initial target cost data taken from PricewaterhouseCoopers Regression Analysis for Station Costing October 2007. 2 Updated costs are based on Metronet's 2006-07 Annual Asset Management Plan and total £25.1 million. London Underground only recognizes £16.7 million as additional spending that a competent company would have incurred. | ||||||||||||