Railtrack confirmed this week that it is continuing negotiations with suppliers over new maintenance contracts despite chief executive Gerald Corbett's hints last week that existing deals may be suspended.
The main suppliers, including Amec and Balfour Beatty, responded by warning that they would shun maintenance work if their margins were not improved.

A spokesman said discussions about the new contracts, called IMC2000, were part of an overall review of supplier relationships being undertaken by Railtrack. He said: "It's part of the post Hatfield review, but we do not know as yet what is going to come out of it."

The review is also understood to include Railtrack's relationship with its principal quantity surveyors, including EC Harris, Franklin & Andrews and Gardiner & Theobald.

It is understood that the QSs met with Railtrack director Les Mosco last month, and that he told them that he was looking to work with fewer QSs on longer term deals.

Other proposals are thought to include cutting down the amount of "bodyshopping", whereby individuals are seconded to Railtrack on an hourly fee rate. This may be replaced by a system of incentives that will allow QSs to earn extra fees if they make cost savings.

Balfour Beatty came under fire again for its role in last month's Hatfield train crash.

Corbett told the House of Commons transport subcommittee last Wednesday that both Railtrack and Balfour Beatty had failed. He said: "We think that the whole management process for maintenance needs to be resolved."