Section 13 - Procedures for Network Rail‟s
dealings with stakeholders - enhancements
This Section 13 of the Code should be read in conjunction with Sections 1 to 3.
Network Rail will apply the principles of Section 2 of the Code to all its dealings with
all stakeholders. The procedures under Section 3 of the Code will be applied to
approaches by stakeholders who are customers and funders of enhancement
schemes in relation to:
a) infrastructure, station or light maintenance depot enhancements to be
undertaken by Network Rail; and
b) infrastructure, station or light maintenance depot enhancements to be
undertaken by other persons
13.1 Communication and responsiveness
13.1.1 Stakeholders requests
Our website provides the contact details and information requirements for making
requests regarding enhancements.
The procedure under Section 3 of the Code will apply to requests made under this
13.1.2 Putting things right if they go wrong
We will take steps to resolve satisfactorily all complaints alleging a breach of this
Code in the first instance through the relevant contact person. Contact details are
available on our website.
If it is not possible to resolve the complaint satisfactorily then the procedure outlined
in Section 3 of the Code will apply.
13.2 Management of information
Our website contains an easy to understand guide entitled „Investing in the Network‟.
a) sets out the investment process in more detail;
b) outlines the contractual framework; and
c) provides details of key contacts within Network Rail.
Access to information may be restricted in the circumstances outlined under Section
3 of the Code.
13.3 Charges and resourcing
We have a standard scale of charges. Total charges will be dependent on the type
of work that Network Rail‟s is required or requested to undertake during the
enhancement process. Any charge will be agreed with you before any action is taken or charge incurred.
We will not charge you for providing information or services for which we are already funded including as outlined under Section 3 of the Code of Practice.
Investing in the Network
Network Rail‟s role is:
1? to assist customers and stakeholders (‟promoters‟) who wish to invest in the
rail network infrastructure in the development of their proposals
? to deliver, or facilitate the delivery of, promoters‟ proposals as appropriate,
taking into consideration their impact on the rail industry.
Network Rail will coordinate and involve the train operators, the Regional &
Passenger team at the Department for Transport (DfT) or Transport Scotland as
? where there could separately be an impact on train service franchises, or
? where there is a material linkage with wider public policy objectives (such as
access to airports and freight access to major ports).
Part 1 of this guide describes the investment process; and
Part 2 outlines the contractual framework. This covers a suite of enhancement
template agreements for engaging with current and prospective customers and
stakeholders sponsoring infrastructure enhancement projects.
The appendices provide further background information on:
? the investment process;
? the Guide to Railway Investment Projects;
? risk management;
? services provided by Network Rail;
? decision criteria used for assessing promoters‟ reasonable requirements;
? Network Rail‟s licence obligations;
? the Single List of Enhancements;
? contact details;
? regulated change processes;
? approval in principle;
? the structure of template agreements.
This guide is intended to be consistent with ORR‟s Policy Framework for Investments
and will be reflected in the Network Code.
1 Current and prospective customers and stakeholders (including developers, scheme
promoters and funders) who approach Network Rail to undertake an investment or project are
referred to as the promoter throughout this guide. More details are given in Appendix H.
Network Rail governance arrangements
Before committing to a contract for services, products and works with a promoter or
committing internal resources to a project, every investment project requires Network
Rail internal approval. This is in order to ensure adequate monitoring of the impact of the project on the network, and where the project is funded or delivered by Network
Rail, control and prioritisation of our investment plans.
Network Rail authorises investment funding in discrete stages during the various
phases of a project. This is in order to:
? bring business case certainty;
? reduce the risks in committing investment expenditure on projects;
? ensure that each project phase is adequately defined.
The Guide to Railway Investment Projects (GRIP) – described in more detail in
Appendix B – includes the Investment Regulations which set out when projects must
obtain funding approval from Network Rail in the project lifecycle.
Part 1: The Investment process
There are a number of possible stages to the investment process depending on:
? the type of project;
? the level of Network Rail‟s involvement; and
? the promoter who is making the approach.
Once an approach is made by a promoter about a project Network Rail will work with
the promoter to determine the appropriate scope and contractual framework for the
lifecycle of the project.
When a promoter asks Network Rail to develop and implement a project we will
follow a generalised process as described below (and outlined in the flowcharts at
In delivering services to the promoter we will follow the Guide to Railway Investment
Projects outlined in Appendix B.
Where the promoter undertakes the development and the implementation of the
works, then Network Rail will facilitate this project by undertaking non-contestable
services (see below and Appendix D) aligned with the relevant GRIP stage (our
network operator responsibilities) so that the network remains capable of supporting
safe, efficient and reliable train operations.
The various investment process stages from inception through to completion are
described below, highlighting each route of delivery.
Any requests regarding the investment process should in the first instance be made
to the relevant contact point (see Appendix H). Acknowledgement of this request
should be made within 12 working days.
Stage 1: Investment (project) idea initiation and prioritisation
Before the promoter makes any initial contact with Network Rail regarding an
investment to the rail network infrastructure, we would expect that consideration will
usually have been given to at least the following information requirements:
? the objective, scope and specification of the enhancement;
? the funding for the project and project risks;
? the procurement methodology (Network Rail undertaking development and
implementation works or non-contestable services as defined below);
? the likely interface with the railway; and
? other stakeholder involvement.
If the promoter is satisfied they have substantially met the information requirements
they will be in a position to make an initial request to Network Rail with the proposal.
Receipt of request
On receipt of an investment request, Network Rail will appoint a representative from
the Route Enhancement Manager‟s team. The role of this representative will be to:
? act as the promoter‟s point of contact with Network Rail
? if required, meet with the promoter to undertake an initial assessment of the
? validate that the promoter has provided the necessary information to enable
the representative to seek endorsement of the investment request from the
Route Strategy Planning Group (RSPG).
Review and ranking of project proposal by the Route Strategy Planning Group
A Route Strategy Planning Group has been established within each route and is an
internal (Network Rail) multifunctional review group created to:
? provide clarity on the required outputs from the route (via an appropriate
? ensure that the forward route investment programme is developed to deliver
these outputs in an efficient and cost effective manner;
? ensure that investment proposals are sufficiently well managed and
? ensure the effective maintenance of the Single List of Enhancements
database (SLOE) which maintains details of all proposed investments
schemes and provides details of their current status. More information on the
Single List of Enhancements database is provided in Appendix G.
All enhancement schemes whether they be promoter funded or Network Rail funded
are discussed at the relevant Route Strategy Planning Group meeting.
As part of the initial review process the Route Strategy Planning Group will undertake
an initial assessment of the scheme against the decision criteria used for assessing
the reasonable requirements of promoters. The decision criteria are summarised in
If the initial assessment of the scheme does not meet the decision criteria used for
assessing the reasonable requirements of promoters, the proposed scheme may be
rejected by the Route Strategy Planning Group. If the proposed scheme is rejected
by the Route Strategy Planning Group, the representative from the Route
Enhancement Manager‟s team will work with the proposer to identify possible options
to take the proposed scheme forward. This may include revising and resubmitting
the proposed scheme.
If a promoter wishes to appeal against a decision made by the Route Strategy
Planning Group, this should in the first instance be made in writing to the named
representative from the Route Enhancement Manager‟s team. The written appeal
should clearly set out the reasons why the promoter believes that the decision of the
Route Strategy Planning Group was incorrect (providing further information as
necessary). The written appeal will be reviewed by the Route Strategy Planning
Group and the promoter may be invited to attend a meeting to discuss the proposed
scheme if this is deemed necessary. The Route Strategy Planning Group will then
reassess the scheme against the decision criteria used for assessing the reasonable
requirements of promoters.
If the proposed scheme is again rejected by the RSPG, and the promoter disagrees
with the basis for this decision, the procedure outlined in Section 3 of this Code of
Practice will apply. The promoter may at this stage make a complaint to Network
Rail‟s Head of Customer Services and as a last resort to our Director, Planning and
Regulation. Complaints will be acknowledged within 12 working days of receipt
unless resolved earlier to the promoter‟s satisfaction. As soon as is reasonably
practicable having regard to the circumstances of the complaint, we will consider the
promoter‟s complaint and make a decision on the justification of the complaint. We
will inform the promoter of our decision, the reasons for this decision and any actions
we propose to take. We would generally expect to respond to the promoter within
one month. However, if further time to investigate a complaint is required we will write
to the promoter stating how long we need in order to give a substantive response or,
if not practicable, given an account of factors relevant to achieving a substantive
If we are unable to resolve a complaint to a promoter‟s satisfaction a promoter has
the right to take its case to the Office of Rail Regulation (ORR). Contact details for
ORR are available on our website.
Prioritisation of project
Network Rail will usually communicate the relative priority of the promoter‟s proposal
to the promoter with the appropriate information requirements within 2 weeks of the
receipt of the request.
The classification of the relative priority of the promoter‟s proposal will be a
reasonable assessment, taking into account all relevant factors, including but not
? current information;
? the industry priorities;
? whether the scheme is funded or delivered by Network Rail or the promoter;
? resource constraints (particularly if the scheme is funded or delivered by
Network Rail or will require a significant resource input from Network Rail);
? the necessity to meet regulatory requirements in accordance with our network
Where Network Rail is delivering the scheme or where the delivery of the scheme will
have significant resource implications on Network Rail, we will give priority to those
schemes that improve overall industry and customer value.
If the scheme is to be delivered by the promoter, Network Rail will make all reasonable efforts to facilitate the implementation of the scheme in accordance with the terms of a Basic Asset Protection Agreement or an Asset Protection Agreement as described in Part 2 of this guide. In line with these Agreements we will seek to recover any additional costs incurred in facilitating the delivery of the scheme from 2the promoter (providing these additional costs are efficiently incurred).
In cases where Network Rail is only facilitating the delivery of a scheme, our ability to efficiently contribute to the delivery of any such scheme will be dependent on the promoters‟ adherence to the agreed programme plan as described in the contractual
agreement, along with the management structure and expertise employed to discharge their obligations.
Deliverability constraints will not generally affect the vast majority of schemes that are to be delivered by a third party. However, when any scheme is delivered, whether by us or a third party, we must also take into account our network stewardship obligations as set out within our network licence. For example in areas where a number of schemes may be proposed at a single point in time (for example, around the site of the London 2012 Olympics), which exceed a normal and reasonable volume of activity, it may not be possible to deliver every scheme at the same time whilst maintaining the efficient operation of the network.
Stage 2: Initial project feasibility and development process
Following the review and prioritisation of the investment proposal by the Route Strategy Planning Group, an RSPG representative will make contact with the promoter to arrange meeting(s) as appropriate to move forward the promoter‟s
project. At this stage Network Rail will also explain its governance and contracting arrangements for enhancements to the rail network infrastructure.
If a promoter is intending to carry out its own design and implementation of the project, then Network Rail will provide asset protection services. Only Network Rail can provide these services. These services are described as „non–contestable‟ and are associated with protecting the integrity and safety of the rail network and its operations. Such „non-contestable‟ services include the provision of information,
safety management (including approvals), consents and access. If the works are straightforward services, then a Basic Asset Protection Agreement (BAPA) may be appropriate at this stage. If the project characteristics are complex then an Asset Protection Agreement (APA) is likely to be more suitable.
Network Rail may also be prepared to undertake contestable in addition to non-contestable services, which in broad terms can be categorised as:
? project management;
? design management; and
2 In the event that Network Rail incurs claims from any third party for loss or damage caused as a result of the scheme being delivered by the promoter, we will seek to recover the full costs of meeting any such successful claim from the promoter.
The specific type of service provided by Network Rail will be dependent on the stage
in the project lifecycle. In the early stages of a project it is recognised that the
promoter may require help to develop and refine their business case and this may
need to be done on a prioritised basis if there are a number of schemes under
Any charge for this work will be discussed and agreed with the promoter before any
action is taken or any charge is incurred and will be dependent on the nature of the
proposal. Details of the contracting and risk framework for third party sponsored
enhancements in provided in Part 2 of this guide. Please also refer to ORR‟s
document „Policy framework for investments: conclusions‟.
As part of the business case development there is a requirement to establish clarity
for the following areas:
? a sustainable funding route for the project, including covering all the risks;
? what, if any, adverse impact will the scheme have on network capacity, and
options to mitigate this;
? interface risks to Network Rail‟s Operations, Maintenance and Renewal
(OM&R) activity including:
o the requirements for the safe accommodation of works;
o the needs of other users of the network;
o the avoidance of conflict with the existing rights of other users; and
o the need to ensure that Network Rail is not unduly placed at risk of
breaching its regulatory licence obligations and duties (see Appendix
If it is agreed that Network Rail will develop the scheme, the proposed project will be
incorporated into one of three agreements, as applicable:
? a Basic Services Agreement (BSA) – is suitable for straightforward projects
and for schemes being progressed through feasibility where no consultancy,
procurement advice or other external input is required;
? a Development Services Agreement (DSA) – is suitable for projects being
progressed through the development lifecycle and which require the
appointment of consultants; or
? a Framework Development Agreement (FDA) - if there are multiple projects to
The representative from the Route Enhancement Manager‟s team appointed to manage the promoter‟s relationship with Network Rail will provide guidance on the
appropriate contractual arrangements. Upon entering into an agreement with the
promoter, Network Rail will provide assistance in developing the investment proposal
as required by the promoter.
If Network Rail is not chosen to develop the scheme or the promoter decides to
undertake the development activity itself or procure it from another company we will
facilitate the project‟s interface with our business in accordance with the terms of a Basic Services Agreement, Asset Protection Agreement or Basic Asset Protection
Agreement as appropriate.
Further details regarding the contractual framework are outlined in Part 2. An
indicative list of services that Network Rail can provide is set out in Appendix D.
Business Efficiency Objectives
In order to ensure overall efficiency where there is the potential to align the
promoter‟s proposal for investing in the rail network infrastructure with Network Rail‟s
renewal activity (e.g. where there is a major renewal and a promoter proposes a
minor enhancement), then it may be appropriate for Network Rail to undertake these
works as part of the renewal activity.
In such cases, the promoter‟s requirements should be identified in line with Network
Rail‟s business planning criteria and project development and implementation
processes, as detailed in the Guide to Railway Projects (GRIP). Where appropriate,
Network Rail will provide information to promoters on their renewal plans to enable
them to identify such opportunities. For further details on bringing forward renewals
as a result of a new investment scheme, please see ORR‟s March 2006 Guidelines
on implementation of the policy framework for investments.
In cases where the proposed enhancement may create potential for significant risk to
the efficient operation, maintenance and renewal of the network but is nonetheless
deemed to be a priority, then Network Rail will offer to develop the project in line with
the template agreements.
Stage 3: Project Development
If the promoter wishes to continue development activities in conjunction with Network
Rail, the project will be developed against the specification, time and cost parameters
agreed through the relevant agreement, as detailed above.
At the end of the project development phase it is envisaged that the following
workstreams will have been completed by Network Rail or any other provider of
? the various options available to complete the project will have been identified;
? each of these available options will have been appraised; and
? a single option and outline design should be recommended.
Based on this recommendation it is suggested that:
? Indicative time and cost information for implementation of the project should
be provided to the promoter by Network Rail or any other provider of
development services, which can be used by the promoter to inform their
? The promoter‟s business case is expected to include confirmation as to
whether or not the project is affordable, whether it can be achieved (in a
reasonable timescale) and whether it will provide value for money.
? Thereafter the promoter will decide on the appropriate procurement route and
on whether or not to proceed with the implementation of the project.