Section 13 of our Code of Practice

By Eugene Gomez,2014-05-06 12:40
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Section 13 of our Code of Practice

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

as follows:

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‟.

    The guide:

    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

    Appendix A).

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

Information requirements

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

    project; and

    ? 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

    supported; 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

    Appendix E.

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

    limited to:

    ? 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.

Non-contestable services

    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.

Contestable services

    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;

    ? development;

    ? design management; and

    ? implementation.

     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


Initial agreements

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

    be considered.

    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

    development services:

    ? 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

    business case.

    ? 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.

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