scope:

This standard specifies policy and forums for governance relating to:

• Category Strategy approval;

• Supplier Strategy approval;

• Contracting Strategy approval;

• Provisional Sums.

Reference shall also be made to the most recent version of the Company's "Delegation of Authority & Signing and Sealing of Documents" to identify the level of authority required for specific approval.

The Category, Supplier and Contracting Strategies shall be compliant with the 'Network Rail Group Policy on Business Conduct (08/06/04)'.

Purpose

The purpose of this policy is to specify the high level sourcing and supplier governance structure and processes within Network Rail.

Through good sourcing and supplier governance, Network Rail will:

• Achieve uniform commercial excellence ("One way of doing things") through Strategic Sourcing;

• Deliver joined-up decision making;

• Empower appropriate levels and groups to execute commercial decisions;

• Disseminate best practice - the structu re and processes should be perceived to add value by everyone involved;

• Improve compliance without unduly slowing down implementation;

• Improve alignment to the business conduct policy