https://www.nao.org.uk/wp-content/u...modification-of-the-national-rail-network.pdf
Damning NAO report on how the project costs increased 401%, also reveals the Rail Investment Board and the Permanent Secretary at the DfT Philip*Rutnam tried to kill it in July 2016 after £25m was spent arguing that it would release £20m in savings but the minister overruled them.
Picking out the technical issues from the report for why it went overbudget;
*Detailed design work was done before the specification of the winning rolling stock was known and it differed from the design assumptions.
*Initial contractor Carillon apparently made a total mess of the design.
*After decision to electrify track in future was taken £5m more had to be spent beefing up the electrification supply to mainline standards.
*Discovered the line was in worse condition than thought and in need of total renewal.
*Changes were made to signalling and traction power design mid project.
*Team wernt very good at change management and costs were allowed to spiral.
*Team lacked technical knowledge and there was a high staff turnover, team didn't understand the complex technical issues.
*Design Integration was not managed well, particularly integration of light and heavy rail technology.
*Project budget envelope led to high risk value engineering decisions (cutting corners to save money) that did not work out and ended up costing more in the long run. E.g. Contractor was ready to start work immediately at contract award but NR wasted 3 months waiting for a planning application to the secretary of state for a revised design of the Tinsley Chord that was supposed to save money and then there was a further 2 month delay before contractors were free again to start work.
*Halfway through the Minister decided to continue the project but that the Dft would not give any more money towards it or allow NR to borrow to fund it. NR were forced in to creative accounting, taking £4.6m from renewals budget elsewhere and allocating the project £21.9m from CP6 March 2019 budget.
As of June 2017
Installed new track, points and crossings (including the Tinsley Chord);
Installed 85% of OHLE
Installed new power supply for signalling
Completed new platform at Rotherham Parkgate
19 construction milestones achieved with 6 left to complete before May 2018
Network Rail has now appointed a dedicated program director, recruited the engineering and technical specialists required to manage and certify technical innovation and product approvals, interacting with other parts of the project properly using agreed instructions, nominated contracts and joint risk assessments. In May 2016 Stagecoach received £2.5m in compensation for late delivery of the infrastructure assets.
Achievements of the project so far;
*The signalling design developed for the tram-train project was made available to the bidders for the Wales and Border franchise in March.
*Between 2014 and 2015 NR published a series of technical manuals for assessing the whole system safety risks of extending tram-train services from a heavy line on to a tram line.
*The tram-train team has been contracted to assist on the design of the Glasgow Airport Access Project, and held discussions with West Yorkshire Combined Authority, the Welsh Assembly and Transport for Greater Manchester.
*While engaging with UK Tram trade body has been deemed by some useful, in response to others disappointment in lack of detail an online technical library is being developed for access by third parties.
An industry learning report will be produced by NR by 2021.