Editor's comment: Delays on the tube

It would be fair to say that Metronet hasn’t had a good week. A harsh report from the PPP Arbiter on its first three years of operation was followed by a Monday morning rush hour fraught with the nightmare of over-running engineering works on the Central, District and Circle lines.

Members of the Metronet PPP can hardly be happy with the outcome of the Arbiter’s report. It said that Metronet had neither performed in an "overall efficient and economic manner" nor "in accordance with good industry practice". And while the Arbiter added that less than comprehensive information meant there were some uncertainties surrounding his conclusions, he believed the evidence was enough to conclude that its performance wasn’t up to scratch.

It’s damning stuff – and was instantly pounced upon by the rail union, which declared that "failure is built into the very fabric of the PPP".

But in its defence, Metronet is working to address some of the areas that have previously been highlighted – and the threat of a £750m bill in 2010 should be enough to shock its members into very real action.

Work on such projects is never going to be easy or simple. Working with other firms as part of a PPP consortium isn’t a skill that all companies automatically have; it takes time and effort to develop a strong management approach within such a structure. And working as a PPP is also different to the traditional client and contractor relationship.

But it is clear that Metronet will need to make a very real improvement in its approach if it is to see any improvement in its Arbiter’s report. The PPP runs until 30 December 2010; a four-year period for it to focus on improvement.

Getting it right will be crucial – and the impending 2012 Olympics will only add to the pressure on Metronet. It will need to work hard to meet its timetable for improvement and for its members to emerge unscathed financially.

[Contract Journal, 22 November 2006]