Client takes work in-house to “save £80m”
Transport for London has taken its tube maintenance in-house in a bid to save £80m.
As part of a public-private partnership, contractor Amey currently provides maintenance across three London Underground lines – the Jubilee, Northern and Piccadilly lines.
But TfL has announced it will bring this to end as soon as contractually possible, at the end of next year, in order to save on “expensive management fees” which it said would amount to around £80m.
TfL said such a move will enable it to eliminate unnecessary duplication in its operations, obtain better value from procurement, and significantly cut reliance on “expensive” agency staff.
Commenting on the decision to take the work in-house, Mayor of London Sadiq 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.”
An Amey spokesperson said: “We understand LU’s strategic business decision to bring all maintenance work in-house and we will be working closely with the team to ensure a smooth transition.”