Carillion and GrantRail have been dropped from Network Rail’s track renewals framework, while Jarvis has been granted a reprieve.
The two lost their places as part of Network Rail’s plan to cut the number of companies on the framework from six to four.
The proposal to eliminate two contractors was announced in December 2006. Network Rail said this was to improve performance, including health and safety, and the ability to plan and co-ordinate work.
“It will allow each contractor to reduce the distance between its depots and worksites,” said Peter Henderson, group infrastructure director at Network Rail.
“Longer-term security for the successful contractors, coupled with improvements in our ability to define work, will enable us to plan with confidence.”
The contractors were judged on safety, engineering quality, cost and ability to start and finish work on time.
Carillion and GrantRail will continue work until early 2008, after which their work will be divided up between the others.
Carillion was banned from bidding for Network Rail contracts in August 2006 until it improved its safety record. The ban was lifted in February.
Carillion said: “By early 2008, Carillion will have completed the planned track renewals work. This decision will have no material impact on our earnings in 2007 and beyond.”