Metronet has asked the PPP arbiter to conduct an Extraordinary Review into its £1.2bn overspend on Tube renewals
Metronet has started formal proceedings to recover over £1bn spent on Tube renewals over the last seven and a half years.
The consortium says it has overspent by £1.2bn partly because of London Underground demanding maintenance and renewal work on top of that agreed in the original PPP contract.
LU said that the overspend was due to Metronet’s inefficiencies.
Metronet today gave LU notice of its intention to invite the PPP arbiter to conduct an Extraordinary Review.
The award decided by the arbiter will be the difference in the amount that an efficient contractor would have spent on any extra work and the amount contained in the original contract.
LU and Metronet will now conduct negotiations for ten days to agree the form and conduct of the review.
Metronet will announce the costs it intends to recover from LU after the consultation period.