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Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 9780102954968
Category : Business & Economics
Languages : en
Pages : 64
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Book Description
Metronet - a private infrastructure company responsible for the maintenance and upgrade of sections of the London Underground - went into administration in July 2007. Transport for London (TfL) guaranteed 95 per cent of Metronet's borrowing, with the Secretary of State for Transport assuring Metronet's lenders that the Department for Transport (DfT) would not just stand by should London Underground or TfL be unable to honour this guarantee. When Metronet failed, the DfT made a £1.7 billion payment to meet the guarantee so that the running of the Underground would not be compromised. London Underground managed the Metronet contract but DfT had a responsibility to protect the taxpayer from any financial liability. The PPP contracts gave the DfT few formal levers to protect the taxpayer, leaving the DfT to rely upon other parties, including London Underground, TfL and Metronet's shareholders and lenders. When these parties did not resolve Metronet's problems, and Metronet failed, the taxpayer was left exposed. This exposure crystallized in the early repayment of £1.7 billion to Metronet's lenders, and a loss to the taxpayer equivalent to between 4 per cent and 10 per cent of the work delivered (£170 - £410 million). DfT needs to consider how to reduce future risks to the taxpayer and, with the Mayor of London, how best to ensure effective and efficient delivery of improvements and maintenance of the Underground. The DfT sees TfL's ownership of Metronet as an interim solution and a joint decision from the Secretary of State for Transport and the Mayor of London on a long-term solution is awaited.
Author: Great Britain: National Audit Office
Publisher: The Stationery Office
ISBN: 9780102954968
Category : Business & Economics
Languages : en
Pages : 64
Get Book Here
Book Description
Metronet - a private infrastructure company responsible for the maintenance and upgrade of sections of the London Underground - went into administration in July 2007. Transport for London (TfL) guaranteed 95 per cent of Metronet's borrowing, with the Secretary of State for Transport assuring Metronet's lenders that the Department for Transport (DfT) would not just stand by should London Underground or TfL be unable to honour this guarantee. When Metronet failed, the DfT made a £1.7 billion payment to meet the guarantee so that the running of the Underground would not be compromised. London Underground managed the Metronet contract but DfT had a responsibility to protect the taxpayer from any financial liability. The PPP contracts gave the DfT few formal levers to protect the taxpayer, leaving the DfT to rely upon other parties, including London Underground, TfL and Metronet's shareholders and lenders. When these parties did not resolve Metronet's problems, and Metronet failed, the taxpayer was left exposed. This exposure crystallized in the early repayment of £1.7 billion to Metronet's lenders, and a loss to the taxpayer equivalent to between 4 per cent and 10 per cent of the work delivered (£170 - £410 million). DfT needs to consider how to reduce future risks to the taxpayer and, with the Mayor of London, how best to ensure effective and efficient delivery of improvements and maintenance of the Underground. The DfT sees TfL's ownership of Metronet as an interim solution and a joint decision from the Secretary of State for Transport and the Mayor of London on a long-term solution is awaited.
Author: Andrew Humphries
Publisher: CRC Press
ISBN: 1000601404
Category : Business & Economics
Languages : en
Pages : 116
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Book Description
In today’s competitive, globalized marketplace, the provision of services and products is a result of teamwork between several organizations. Relationships between organizations of any size are strategically important. If your supplier falls down at a crucial moment, it can have survival implications for your company or for other members of your supply chain. The management of these strategic assets cannot be left to chance and the same attention that you devote to finance, operations, HR, etc. must be applied to business relationships. Despite this, very few organizations focus on this or are even aware that they need to do it. Those that do are unsure how to do it. This is not helped by business schools that focus on either customer relationship management (CRM) or supplier relationship management (SRM) rather than collaboration between partners (Enterprise Relationship Management). This book is a unique "go-to" guide for all managers who should be looking at collaboration with other organizations as a new way to attain outstanding results that would not be achieved on their own. Currently, there is nothing else of this nature on the market. The book identifies relationship management as a pivotal management function. It presents a comprehensive, flexible, end-to-end management process that can be easily incorporated into the existing management structures. Further, they describe the crucial role of the relationship manager who is at the heart of the system and provides the drive to achieve high performance. Any company can tailor this discipline to the needs of its organization – whether an SME or a multi-national company selecting a new partner or managing existing relationships. This book covers the decision of whether or not to partner and with whom, the creation of an appropriate system of governance, the transition to operations, managing performance for continuous improvement, and, finally, controlled wind-up of the partnership. Throughout, diagrams to signpost the sequence of activities, checklists of important actions, and job-related worksheets are provided. In addition, there are numerous case studies in a variety of industries and public sectors that will be used as illustrations. Altogether these make this book ideally suitable for experienced managers as well as for training and induction purposes. Essentially, Implementing and Managing Collaborative Relationships: A Practical Guide for Managers shows managers how they can create and operate a simple and effective system of Enterprise Relationship Management that will enable them to maximize efficiency, resilience, innovation, and profitability.
Author: Great Britain: Parliament: House of Commons: Committee of Public Accounts
Publisher: The Stationery Office
ISBN: 9780215544216
Category : Business & Economics
Languages : en
Pages : 44
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Book Description
In 2003, the Government entered into three innovative 30 year contracts with private sector contractors to upgrade London's underground rail system. Four years later, in 2007, two of the three contractors (Metronet BCV and Metronet SSL, known collectively as Metronet) went into administration when they could no longer meet their spending obligations. The loss to the taxpayer arising from Metronet's poor financial control and inadequate corporate governance is some £170 million to £410 million. The Department's oversight and management of risk on the Metronet contracts were inadequate, especially given that it provided a £1 billion a year grant, was ultimately responsible for delivery and carried the majority of the risk of failure. These failings ignored a clear warning from the National Audit Office in 2004 that they should avoid taking a 'hands-off' approach to oversight. The Department undermined its assumption that lenders would exercise strong oversight by assuring them that it would meet 95 per cent of the outstanding debt in the event of failure. The public sector parties to the contract were unable to obtain the information they needed to oversee the contract effectively. A serious weakness in the arrangements was that the independent Public Private Partnerships (PPP) Arbiter was not invited to act at the earliest opportunity, rendering him largely ineffective. The Department must learn from its mistakes, have the right commercial skills in place and perform robust risk analysis when negotiating such contracts, to monitor the risks thereafter, and be prepared to intervene where necessary.
Author: Yseult Marique
Publisher: Edward Elgar Publishing
ISBN: 1781004552
Category : Business & Economics
Languages : en
Pages : 329
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Book Description
This timely book examines the legal regulation of Public_Private Partnerships (PPPs) and provides a systematic overview of PPPs and their functions. It covers both the contractual relationships between public and private actors and the relationships be
Author: International Transport Forum
Publisher: OECD Publishing
ISBN: 9282103951
Category :
Languages : en
Pages : 231
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Book Description
The report examines the nature of risks and uncertainty associated with different types of public-private partnership projects and the practical consequences of transferring risks to private partners.
Author: International Transport Forum
Publisher: OECD Publishing
ISBN: 9282108155
Category :
Languages : en
Pages : 132
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Book Description
Ex-post evaluation is important to improving the delivery of transport policy objectives. It can be used for multiple purposes at the core of which is the improvement of ex-ante assessment. A small number of jurisdictions employ ex-post evaluation systematically and leading experience is ...
Author: Great Britain: Parliament: House of Commons: Transport Committee
Publisher: The Stationery Office
ISBN: 9780215545305
Category : Political Science
Languages : en
Pages : 90
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Book Description
Update on the London Underground and the public-private (PPP) partnership Agreements : Seventh report of session 2009-10, report, together with formal minutes, oral and written Evidence
Author: Charles O'Neil
Publisher: John Wiley & Sons
ISBN: 1119440254
Category : Technology & Engineering
Languages : en
Pages : 354
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Book Description
A guide to effective corporate and project management in the construction industry with a focus on the role that people play in the process Global Construction Success explores the importance that human dynamics play in risk management of construction projects. Every time a project is structured, designed and built, personal behaviours and inputs can either lead to success or be the cause of failure. With contributions from noted experts on the topic, the book offers insight into stakeholders' reactions in a variety of situations, provides expert analyses of risk management and proposes potential solutions and recommendations in order to ensure effective construction management. The book explores common causes of project failure, outlines the key factors of successful projects, shows how to implement Public Private Partnerships, explores the different stages of structuring projects and reveals what it takes to manage difficult client/contractor relationships. International case studies of major projects clearly illustrate how communications and relationships can lead to helpful solutions to commonly encountered challenges to achieve positive results. Offers a comprehensive review of the impact human dynamics play in the success or failure of construction projects Stresses the importance of the leadership of senior management Offers a chapter on managing and resolving conflicts Shows why the industry needs better risk management Includes new information for managing communications and relationships Explores new areas of technology that are being embraced by the construction industry Written for construction industry senior management in both the corporate and government sectors, project management professionals, consultants and supply chain participants, Global Construction Success includes material for minimizing risk and improving management quality and profitability when working with international construction projects.
Author: Great Britain: Parliament: House of Commons: Transport Committee
Publisher: The Stationery Office
ISBN: 9780215038319
Category : Business & Economics
Languages : en
Pages : 134
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Book Description
This report from the Transport Committee, examines London Underground and the Public-Private Partnership Agreements. The Government originally announced proposals for modernising the London Underground network system via Public-Private Partnership (PPP) agreements in 1998. Three contracts were drawn up with: (i) Tube Lines for the maintenance and renewal of the Jubilee, Piccadilly and Northern Lines; (ii) with Metronet Rail BVC for the maintenance and renewal of the Bakerloo, Central, Victoria & Waterloo & City Lines; (iii) with Metronet Rail SSL, responsible for the maintenance and renewal of the "sub-surface lines": the Circle, District, Hammersmith & City, Metropolitan & East London Lines. These PPP Agreements, 30 years in duration, were arrangements to maintain, renew and upgrade parts of London Underground by private sector infrastructure companies (Infracos), whilst London Underground is responsible for services to customers. The PPP Agreements also set out a performance-related incentive and penalty scheme to remunerate the Infracos for the improvements they make to the network. In May 2007, Metronet admitted an overspend of £1 billion and was refused access to loan facilities by the banks. It then made a reference to the PPP Arbiter, which in turn triggered an Extraordinary Review (which occurs when extra costs are incurred above the level allowed for the bid). Metronet put in a bid for £551m but the PPP Arbiter provisionally concluded that a sum of £121m was appropriate. Metronet subsequently went into administration on 18 July 2007. The report sets out a number of conclusions and recommendations, including: contracts that were supposed to deliver 35 station upgrades, in fact delivered only 14, 40% of the requirement; stations that were supposed to cost Metronet SSL £2m, cost £7.5m, with only 65% of schedule track renewal accomplished; the Committee criticises the consequences of the imposition of PPP on Transport for London, as a "lamentable state of affairs", with the future of most of London Underground's upgrade and maintenance work in doubt; the Committee states, that the Government should remember the failure of Metronet before it considers entering similar arrangements; that the Government should publish a candid analysis of the events preceding Metronet's collapse and its consequences; the Committee believe that the PPP model was flawed and probably inferior to traditional public-sector management; that the Government needs to prioritise transparency and clarity to taxpayers and ensure that any future contracts result in clear accountability.
Author: Norman Flynn
Publisher: SAGE
ISBN: 1446258408
Category : Political Science
Languages : en
Pages : 297
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Book Description
The highly-anticipated sixth edition of Norman Flynn's Public Sector Management continues to provide students with an insightful, jargon-free description, analysis and critique of the management of the public sector by the UK government. New to the sixth edition: Fully updated to take account of the coalition government and the impact of the financial crisis on public spending. Four new chapters on managing public finance, e-government, regulation and public-private partnerships. Expanded learning features including:, additional boxed examples, annotated suggestions for further reading and suggestions for discussion topics and references to journal articles. New companion website with free access to full-text journal articles, policy documents, links to useful websites, and relevant multimedia and social media resources. www.sagepub.co.uk/flynn6 Public Sector Management will prove invaluable reading for students studying public sector management as part of a business, management, social policy, politics or sociology degree.
