HS2 confirms ‘successful’ renegotiation of two main works contracts as part of reset

HS2 Ltd said it has “successfully” renegotiated contracts with two of its civil engineering main works contractors as part of a programme wide reset. The organisation behind managing the construction of the UK’s flagship infrastructure project announced new commercial contracts have been signed with EKFB and Align which collectively account for more than 100km of the HS2 route between London and the West Midlands. The programme to build the UK’s new high-speed rail line has repeatedly seen timescales slip and budgets blown in recent years, leading to the appointment of new HS2 Ltd CEO Mark Wild in 2024. By the end of that year, the Department for Transport (DfT) confirmed the project was undergoing a full programme reset under Wild’s guidance. This process aims to re-baseline HS2’s timeframe and budget in tandem with increasing productivity. Wild’s initial review into the project from March last year said it was only one third completed. Transport secretary Heidi Alexander told Parliament in the summer that the 2029 to 2033 opening date for HS2 was no longer possible. Wild and the DfT have promised to publish new timeframes and estimates in spring 2027. More recently, as part of the reset process, transport secretary Heidi Alexander said the cost estimate to finish Phase 1 of HS2 has exceeded £100bn and the first trains will not run until at least another decade. The previous contracting model with civils contractors was established before project construction formally started in 2020 and was identified by Wild as one of the major issues to be addressed as part of his initial advice to Alexander last year. Wild believed the previous contracts were ineffective at encouraging efficient delivery of civil engineering works, placing almost all risk on the taxpayer by failing to incentivise schedule or cost targets. By 2024, the original £15bn budget allocated in 2020 for the main civils contracts on HS2 Phase 1 (London to West Midlands) had been spent, despite works being far from complete. The two new contracts reset incentives by rewarding efficient delivery and cost control through a revised payment structure with contractors. Wild and HS2 Ltd believe the new contracts will ensure the contractors are incentivised to deliver on budget and on time. Wild further believes the renegotiated contracts will help ensure HS2 is built at the lowest reasonable cost and the remaining programme can be delivered in line with the £93.2bn cost ambition announced by the government earlier this year. Through the reset, Wild has also considerably strengthened HS2 Ltd’s commercial capability, appointing a new chief commercial officer and new commercial staff. EKFB, a joint venture of Eiffage, Kier, Ferrovial Construction and BAM Nuttall, is delivering civil engineering works on an 80km section of the high-speed railway between the north portal of the Chiltern Tunnel in Buckinghamshire and Long Itchington Wood in Warwickshire. Align, a joint venture made up of Bouygues Travaux Publics, Sir Robert McAlpine, and VolkerFitzpatrick, is constructing 24km of the route in outer London and south Buckinghamshire, with major assets including the Colne Valley Viaduct and Chiltern Tunnel, the longest structures of their kind on HS2. Negotiations with HS2’s two other civil engineering joint ventures are currently ongoing. The Balfour Beatty Vinci (BBV) joint venture is responsible for a 90km section of the railway in the West Midlands, while Skanska Costain Strabag is building the 21km London tunnels section of HS2 beneath the capital from West Ruislip to Euston. The reset will continue into spring 2027 when a new “baseline”, the roadmap setting out HS2’s delivery timetable, will be finalised. Wild said: “This is good news, but there’s more to do, bringing an end to HS2’s cost over-runs and delays is a shared ambition, and I’d like to thank every one of the parent companies at both EKFB and Align for their willingness to negotiate and their commitment to doing the right thing for British taxpayers. “Investing in world-class infrastructure is vital to securing economic growth, but it cannot come at any cost. Today’s announcement represents a significant step forward in our mission to regain control of HS2.” EKFB managing director Sally Cox said: “EKFB has worked closely with HS2 Ltd to support the reset of the HS2 programme and has now reached a new commercial agreement. “I’m proud of the strong working partnership between the teams at EKFB and HS2 Ltd which has supported the swift conclusion of the contract renegotiation phase.” She added: “This agreement provides a clear path for the remainder of the civils works and we are committed to delivering our 80km section of the route in accordance with HS2’s delivery plan.” Align JV project director Adrien Baudard said: “The contract renegotiation has been an opportunity to strengthen our long-standing partnership with HS2 and build upon our shared objectives. “As an integrated project team, we have proudly delivered landmark assets such as the Colne Valley Viaduct and the Chiltern Tunnel and are now focusing on preparations for a successful handover and transition to rail systems.” Like what you've read? To receive New Civil Engineer's daily and weekly newsletters click here. Have your say or a new account to join the discussion.