HS2 Ltd has given ‘notice to proceed’ on its four main civils contracts worth nearly £12bn combined, after receiving the green light from the government.
The four groups of contractors – SCS Railways (Skanska Costain Strabag), the Align (Bouygues, VolkerFitzpatrick, Sir Robert McAlpine) joint venture, the EKFB (Eiffage, Kier, Ferrovial Agroman and BAM Nuttall) joint venture, and the BBV (Balfour Beatty Vinci) joint venture – will now be asked to start full detailed design and construction of phase one of the HS2 route from London to the West Midlands.
So far, work on HS2 has involved scheme design and site preparation for civils works.
BBV’s two main civil engineering contracts total £5bn and involve extensive earthworks, ground engineering, viaducts and tunnels along a 90km stretch from Long Itchington Wood Green tunnel in the south to the West Coast Main Line tie-in near Litchfield in the north with a major junction into central Birmingham at Curzon Street.
Industry relief
Leo Quinn, Balfour Beatty Group chief executive, said: “Notice to Proceed provides certainty for many businesses up and down the UK, and will drive investment in skills and capability for current and future generations.”
Meanwhile, EKFB, which will deliver the £2.3bn lots C2 and C3 – an 80km section running between the Chilterns to Warwickshire – said it expected construction works to start later in the year.
Andrew Davies, CEO at Kier, said: “We are pleased that the Government has confirmed NTP for the HS2 project, allowing us to progress onto the next phase of works in delivering this vital infrastructure project. We have been successfully delivering the design and development phase since 2017 and working with our new partners BAM Nuttall and Ferrovial Agroman alongside Eiffage we will collectively bring invaluable knowledge and expertise throughout delivery to play our part in the most sustainable high-speed railway of its kind.”
Commenting on SCSJV’s share of the work, Costain said its £3.3bn contract was not likely to make a “significant” contribution to its profitability until 2021 onwards because construction on site was currently paused for all but safety-critical work due to the coronavirus.
Align JV has the £1bn contract to design a 22km section between Colne Valley and the Chilterns.
Mark Thurston, CEO of HS2, said: “In these difficult times, today’s announcement represents both an immediate boost to the construction industry – and the many millions of UK jobs that the industry supports – and an important investment in Britain’s future: levelling up the country, improving our transport network and changing the way we travel to help bring down carbon emissions and improve air quality for the next generation.”
