HSS Hire on the right track

Network Rail said it expects to make big savings after awarding AMEC and HSS with multi-million pound contracts for the hire of small plant and tools across the entire UK.

The deals will see AMEC supply rail specific plant, such as grinders and cutters, and HSS Hire, all non-rail plant and tools.

According to Network Rail's maintenance director Richard Fenny, these new three-year contracts, both with additional two-year extension options, will deliver cost reductions of almost 30%.

As the deals are framework contracts, Network Rail said there are no guaranteed work levels. However, estimated values for the first year are œ10m for AMEC and œ3m for HSS.  

Announcing its three-year contract, HSS chief executive Paul Nolan said the deal was the largest ever signed with a tool hire company.

"Covering 18 separate contracts for five UK regions, the deal will require HSS to supply equipment such as generators, drill, saws and lighting on long-term hire," he said.

The two new suppliers are being phased in area by area between now and the end of June, with all existing contracts, that were due to expire at the end of March, now extended up to that time.

The contracts for road/rail equipment and heavy plant have yet to be awarded. However, CJ was told that the deals would be finalised within weeks and Network Rail is likely to award them as two national packages.