Latest Rail News

07.04.17

HS2 to scrap and rerun £10m management services contract bid

HS2 has told companies bidding for its £10m commercial management services contract that the process will be scrapped and rerun, RTM has today learnt.

Firms including Arcadis, Mott MacDonald and Turner & Townsend had been competing for the £10m commercial services contract, which was due to be awarded in February – but now it has been revealed that the entire process will be halted and rerun, due to apparent conflicts of interest.

The news follows a plethora of problems with multiple procurement contracts with HS2, as last month the company announced that CH2M had withdrawn its interest from the £175m civil contract for Phase 2B development.

This followed losing bidder Mace complaining about the competition and threatening legal action against HS2 as it stated: “we have never seen a procurement process like this”.

Now, the Transport Select Committee said it will be launching an investigation into the procurement activities of the HS2 Phase 2B development contract, and will ask project leaders some serious questions about how contracts are being managed.

Louise Ellman MP, chair of the committee, said: “Given the scale of HS2 and the amounts of money involved, the Transport Committee is keen to understand the reasons behind the latest developments.

“I will be suggesting to Committee members that we hold a session as early as possible after recess. It is important that business, industry and public have confidence in the processes involved.”

Today’s development also comes on the same day that HS2 launched its design ambition, which set out the project’s vision ‘from the pixel to the city’.

It also follows Lord Berkeley calling for a review of the entire project, as estimated costs for Phase 1 alone have soared to £48bn – more than twice the price previously quoted by HS2.

The Peer stated that should this cost prediction be correct, then almost the entire budget for the project would be spent on Phase 1, leaving no cash to finish the rest of the Phase 2a to Crewe and Phase 2B to Leeds.

More information to follow.

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Comments

Tony   07/04/2017 at 12:53

a gravy train created as a political ideaology needs scrapping too many people in project have no ideas except wage packet.

Andrew Gwilt   09/04/2017 at 04:00

The question is-will the construction of the HS2 get the go ahead or will HS2 not happen at all.

Pigs In The Trough   09/04/2017 at 08:10

Read Margaret Hodge's report on the Garden BBridge project. There are obvious parallels with HS2 in trying to spend so much cash to prevent it being stopped. Pull the plug on both of them now.

Revolting Peasant   19/04/2017 at 11:29

HS2 received Royal Assent on February 23rd and it is going ahead. This news story simply relates to bids for one professional services contract. This particular competition was halted because one bidder declared a conflict of interest, and therefore had to withdraw from the competition.

J, Leicester   20/04/2017 at 15:40

Well, I'm a HS2 convert, but they need to get a move on. Having been lucky enough to visit Spain last week and having travelled on the new HS route from Alicante to Madrid, it embarrasses me somewhat that it is going to take another 15 years on top of the decade or so already wasted to get the full proposed network built and running, and 9 years to even make it as far as Birmingham. Spain's first HS line opened in 1992 - in 24 years, they've built 1,990 miles of track. In the interim, we've built... uh, 68 - and even that was predated by 14 years of 186 mph trains sharing third-rail lines with suburban services! Granted, there are a number of daft, mostly political decisions that have gone alongside the introduction of HS services in Spain (case in point, our stop in Villena, which was 6 miles from the town in the middle of what can only be described as a dusty olive field!), but even with the rife corruption and string pulling that occurs in the Cortes Generales, they've managed to set up an efficient high speed network on a relative shoestring, while people still use the Iberian gauge network with capacity freed up for regional and freight services. And don't even get me started on France! Hoo boy... our intercity railways are appalling. Just get it built, for pity's sake.

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