3.8 Crossrail Ltd has identified the relationship with its suppliers as one of the top strategic risks to completion of the programme. Productivity levels are behind expectations and costs are rising. To regain control of costs and prevent them from escalating further, Crossrail Ltd needs to incentivise contractors to deliver the remaining work in a timely and efficient manner. The new programme plan should help to provide clarity to contractors about the work remaining and when it needs to be done, and provide a stronger basis for agreeing contractual terms that support cost-effective delivery.
3.9 Since the end of 2018, Crossrail Ltd has been renegotiating the terms of the remaining work with its main contractors. For example, it has established a fixed, lump sum price with contractors for some of the remaining work. This is understandable, given the need to improve certainty about the cost to deliver remaining work and to arrest the sharp cost increases that have occurred since the announcement of the delay to the opening of the central section. However, this form of contract means that Crossrail Ltd risks losing commercial levers to ensure that contractors prioritise completion of Crossrail over other projects and opportunities.