en.Wedoany.com Reported - The delivery body for High Speed 2 (HS2) has announced new commercial contracts with two joint ventures, EKFB and Align, collectively covering more than 100 kilometers of route works on the London to West Midlands section of HS2.
In recent years, the new high-speed railway project has faced repeated delays and budget overruns, and HS2 Ltd appointed Mark Wild as chief executive in 2024. By the end of 2024, the UK Department for Transport confirmed that the project was undergoing a full reset under Wild's leadership, resetting HS2's timetable and budget while improving productivity. Wild's initial review of the project in March of that year showed that only about one-third of the works had been completed; Transport Secretary Heidi Alexander told Parliament that summer that HS2's original opening dates of 2029 to 2033 were no longer feasible. As part of the reset process, Alexander recently stated that the estimated cost to complete phase one of HS2 has exceeded £100 billion, and the first trains will take at least another decade to run.
Before this contract re-signing, the old contract model with civil engineering contractors was formed before the project formally began in 2020. Wild identified it as one of the key issues to address in his initial review recommendations, arguing that the old contracts were ineffective in encouraging efficient delivery of civil engineering works, transferred almost all risk to taxpayers, and did not incentivize contractors to meet schedule or cost targets. By 2024, the original £15 billion budget allocated in 2020 for the main civil engineering works on HS2 phase one (London to West Midlands) had been exhausted, while the works were far from complete.
The two new contracts reset incentive mechanisms through revised payment structures, rewarding efficient delivery and cost control. HS2 Ltd believes the new contracts will give contractors the motivation to deliver the works on time and on budget. Wild also stated that the renegotiated contracts will help build HS2 at the lowest reasonable cost and ensure the remaining project progresses toward the £93.2 billion cost target announced by the government earlier this year. Through this reset, HS2 Ltd has also expanded its commercial team, appointing a new chief commercial officer and commercial staff.
EKFB, a joint venture of Eiffage, Kier, Ferrovial Construction, and BAM Nuttall, is responsible for civil engineering works on an 80-kilometer stretch between the north portal of the Chiltern Tunnel in Buckinghamshire and Long Itchington Wood in Warwickshire. Align, comprising Bouygues Travaux Publics, Sir Robert McAlpine, and VolkerFitzpatrick, is building a 24-kilometer section on the outskirts of London and in South Buckinghamshire, with major works including the Colne Valley Viaduct and the Chiltern Tunnel, both of which are the longest structures of their kind on HS2.
Negotiations with HS2's other two civil engineering joint ventures are still ongoing. The Balfour Beatty Vinci (BBV) joint venture is responsible for a 90-kilometer section of railway works in the West Midlands, and Skanska Costain Strabag (SCS) is building HS2's 21-kilometer tunnel section beneath London, extending from West Ruislip to Euston. The project reset will continue until spring 2027, when a new "baseline"—the roadmap for HS2's delivery schedule—will be established.
Wild said: "This is good news, but there is more work to do. Ending HS2's cost overruns and delays is our shared goal, and I thank all the parent companies of EKFB and Align for their willingness to negotiate and their commitment to doing the right thing for UK taxpayers. Investing in world-class infrastructure is vital to securing economic growth, but not at any cost. Today's announcement marks a significant step forward in our mission to bring HS2 back under control."
Sally Cox, Managing Director of EKFB, said EKFB has worked closely with HS2 Ltd to support the project reset and has now reached a new commercial agreement. She said: "I am proud of the strong working partnership between the EKFB and HS2 Ltd teams, which supported the rapid completion of the contract renegotiation phase. This agreement provides a clear path for the remaining civil engineering works, and we are committed to delivering our 80-kilometer section in line with HS2's delivery plan."
Adrien Baudard, Project Director of the Align joint venture, said the contract renegotiation was an opportunity to strengthen the long-term partnership and enhance shared goals between the parties. He said: "As an integrated project team, we have proudly delivered landmark assets such as the Colne Valley Viaduct and the Chiltern Tunnel, and are now focused on preparing for successful handover and transition to the railway system."
