To encourage third party investment in the network, we have a suite of downloads and template agreements for enhancement projects.
They have been developed and revised following extensive consultation with industry, customers and stakeholders.
They’re aimed at reducing the need for time-consuming negotiations on contractual arrangements for each scheme, providing transparency on payments to Network Rail. We strive to find solutions that reduce barriers to entry through the provision of a more economic and efficient contractual framework.
Many of these documents are well established templates and codes of practice to remove barriers. Some are being revised to incorporate service levels and other recommended improvements.
You can find more information in our guide Investing in the railway, part of our stakeholder code of practice.
Template Agreements and Detailed Guidance Notes
Network Rail Delivery of Services – pre-GRIP 4/5
Customer Delivery of Services or Works
Detailed guidance for both the asset protection agreement and basic asset protection agreements is currently being written and will be available shortly
Network Rail Delivery of Works – post GRIP 4/5
New, cheaper ‘risk fees’
To encourage third party investment into the railway, we have a system to address commercial and industry liabilities taken on by Network Rail when working with third parties. Known as ‘risk fees’ they are applied as percentage uplifts to third party agreements to fund Network Rail to take on certain risks and pay the costs of these if they occur.
After reviews within the industry and working with the ORR, it has been decided that reductions to the percentage fees can be implemented to third party agreements for development services and asset protection agreements.
As of 1 April 2021, the amendments to the risk fees are:
| Basic service agreement (BSA) | Basic asset protection agreement (BAPA) | Asset protection agreement (APA) | Development services agreement (DSA) | Basic implementation agreement emerging cost. (BIA: EC) | |
|---|---|---|---|---|---|
| Previous Network Rail fee | 5% | 10% | 10% | 5% | 5% |
| NEW Network Rail fee | 1% | 5% | 7.50% | 1% | 2.50% |
Industry risk fee
| Basic service agreement (BSA) | Basic asset protection agreement (BAPA) | Asset protection agreement (APA) | Development services agreement (DSA) | Basic implementation agreement emerging cost. (BIA: EC) | |
|---|---|---|---|---|---|
| Previous industry risk fee | 0% | 2% | 2% | 2% | 2% |
| NEW industry risk fee | 0% | 1% | 1% | 1% | 1% |
The risk fee percentages on all other third-party agreements will remain as currently set. These amended risk fees will take effect for any agreement entered into from 1 April 2021. The new risk fees are not retrospective and the terms of existing contracts will not be affected. Any agreements entered into prior to 1 April 2021 will use the risk fee percentages set out in those agreements. This includes any variations made to existing agreements i.e. the contract terms entered into will continue to apply.