APPENDIX FIVE Station case studies

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

 

 

 

 

 

 

 

 

 

 

 

 

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.

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