2.4 Network Rail has been carrying out surface works on the Great Western main line, between Paddington, Reading and Heathrow Airport, on the Great Eastern main line between Shenfield and Liverpool Street, as well from Abbey Wood to Plumstead. This includes track, signalling and electrification works, and station enhancements including the extension of platforms to accommodate Crossrail trains.
2.5 The current forecast cost of Network Rail's work on the existing network is £2.6 billion, around £300 million (13%) more than its original agreed funding of £2.3 billion, including contingency. The cost of Network Rail's work has increased due to, for example, changes in scope and because the assets that it was working on were in a worse condition than anticipated. Gaining access to the railway to carry out work has also been an issue for Network Rail. Network Rail must operate within limited windows that are negotiated with train operating companies on the live railway. Where changes and remedial works are required, the planned access arrangements must be changed, which can have a substantial impact on how the works are delivered and the cost to carry them out, particularly where additional access is needed.
2.6 While Network Rail's work is nearly complete, risks remain. Network Rail has been engaged in a contractual dispute with one of its main contractors over the price of scope changes. This dispute remains unsettled. Network Rail also had to replace Carillion as a contractor when Carillion went into liquidation in January 2018. Network Rail works have also seen cost inflation due to changes made to station enhancements in the west. The Department and Network Rail are currently assessing the financial impact of these issues.
2.7 Despite delays to the development of the on-board train operating software, and the consequent delay to Transport for London (TfL) accepting delivery of manufactured trains, the cost of this contract has not contributed to overall cost increases because TfL awarded a fixed-price contract to the main contractor, Bombardier Transportation.