HS2 Ltd has renegotiated contracts with EKFB and Align, which are two of the civil engineering joint ventures that are constructing the new high-speed line.

EKFB and Align collectively account for more than 100 km of HS2, and the renegotiated contracts represent a significant step forward in delivering the remaining works at the lowest reasonable cost. EKFB is a joint venture between Eiffage, Kier, Ferrovial Construction, and BAM Nuttall, and is carrying out civil engineering works on an 80 km section of the line between the north portal of the Chiltern Tunnel in Buckinghamshire and Long Itchington Wood in Warwickshire.

Align is a joint venture between Bouygues Travaux Publics, Sir Robert McAlpine, and VolkerFitzpatrick, and is constructing 24 km of the line in outer London and south Buckinghamshire, including the Colne Valley Viaduct, which is the line’s longest viaduct, and Chiltern Tunnel, which is its longest tunnel.

Under the previous contracts, almost all risk was on the taxpayer as there was no incentive to maintain schedules or cost targets. In comparison, the new contracts reward efficient delivery and cost control through an updated payment structure for the contractors as an incentive for them to deliver on budget and on time.

“These new contracts are an important milestone in the reset of HS2. The waste and mismanagement of the past are behind us – we are now laser-focused on delivering this project efficiently and responsibly for taxpayers. By resetting contractor incentives and rewarding cost control, we are making sure every pound spent delivers real value and that the project is built at the lowest reasonable cost. Under Mark Wild’s leadership and with close ministerial oversight, HS2 is being built faster and more efficiently than ever before – across the West Midlands and West London over the next decade, while sustaining 31,000 jobs across the country.”

Lord Hendy, Minister of State for Rail

“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.”

Mark Wild, Chief Executive of HS2 Ltd