Kone new escalator gearbox install

Network Rail intends to directly award a contract to KONE PLC for the replacement of failing escalator gearboxes and delivery of associated modernisation works across several high risk stations. The anticipated contract value is £2.7 million, with an anticipated contract duration of 12 months, and an intended award date of 11 March 2026.

A direct award is justified under the Procurement Act 2023, Schedule 5, Paragraph 8(1) (technical/proprietary exclusivity), which permits direct award where “only a particular supplier can supply the goods, services or works because they have intellectual property rights or other exclusive rights and there are no reasonable alternatives.” In this instance, as the Original Equipment Manufacturer (OEM), KONE must carry out the initial retrofit works to implement the newly developed gearbox solution and establish the validated installation methodology; thereafter, third party providers may undertake future works once the OEM process and requirements are defined.

Following an escalator incident in 2023, a significant safety risk was identified concerning certain gearbox units within Network Rail’s escalator portfolio. In response, Network Rail will procure newly designed KONE gearboxes with a modified configuration, including an auxiliary brake, to enable safe retrofit across existing assets. The initial installations will be undertaken by the OEM to ensure full understanding of the new process, to confirm any additional engineering or safety requirements, and to develop a robust and repeatable methodology for subsequent works.

In accordance with Section 90 of the Procurement Act 2023, Network Rail confirms that no discrimination against treaty state suppliers has occurred. The requirement is grounded solely in proprietary rights and the need for OEM led initial implementation consistent with the Schedule 5 justification.