Transport for London has unveiled plans to bring maintenance work on the underground in-house from next year when its current deal with Amey ends.
Amey has managed maintenance on the line for the past 13 years as part of a public-private partnership but this will be brought to an end next year – the earliest possible point the contract allows.
TfL’s in-house team will manage maintenance of the Jubilee, Northern and Piccadilly lines in a bid to save more than £80m over the next decade.
Mayor Sadiq Khan wants to improve efficiency within TfL to plug a £1.9bn funding gap created by Mr Khan’s planned fare freeze over the next four years.
A root-and-branch review of TfL is being carried out and will look at ways of TfL working more efficiently and getting better value for money for passengers.
Construction News reported in July that TfL had begun merging its two main engineering arms into one centralised team.
The organisation is also streamlining procurement to save £60m over four years.
Other TfL savings
- Improved procurement and renegotiation of contracts from suppliers and other third-party spending which accounts for more than two-thirds of TfL’s total budget (estimated saving £50m-£60m).
- The reprioritisation and consolidation of IT projects (estimated saving £20m-£30m).
- Cutting the most expensive of the 3,000 agency contractors currently engaged by TfL.
Mr Khan said: “I’ve asked TfL to carry out a root-and-branch review of all its business operations, and the decision to bring underground maintenance work in-house will save tens of millions of pounds to invest in our transport network and pay for my freeze in TfL fares.
“London Underground already has experience running successful maintenance operations in-house, and we’re making the changes as soon as the contract allows.
“I want TfL to be the best in the world while staying in public control.”
London Underground’s managing director Mark Wild said: “We are carrying out a root-and-branch review of our business to cost less and make transport in London more affordable for our customers.
“As part of this, we are using our in-house maintenance expertise to save tens of millions of pounds.
”There will be no impact on our extremely high standards of maintenance and we will be working closely with Amey over the next 18 months to ensure a smooth transition.”