"For instance, are [Metronet] paid by the hour, or would they get a fixed sum to complete the upgrade of Chiswick Park station no matter how long it takes them?"
The whole PPP contract is horrendously complex. My impression is that refurbishing stations to a spec laid down by London Underground is one of Metronet's long-term commitments. As far as I know, progress is assessed every 7½ years through the 30-year contract, but I'm not sure if there are intermediate contractual targets. The fact that one platform is out of action for several weeks may also contribute to ongoing performance calculations, which can affect the payments made to Metronet. I know that LU management get frustrated with the lack of control and sanctions they have over Metronet, but the contract was drawn up by the Treasury and imposed on TfL. |