HS2 Ltd has completed a significant milestone in its drive to regain control of Britain's biggest infrastructure project after successfully renegotiating commercial agreements with two of its principal civil engineering contractors.
The new contracts have been signed with EKFB and Align, the joint ventures responsible for delivering more than 100km of the high-speed railway between London and the West Midlands. The agreements form a key part of the wider HS2 reset programme being led by Chief Executive Mark Wild and are designed to improve efficiency, strengthen cost control and provide better value for taxpayers.
EKFB, a partnership between Eiffage, Kier, Ferrovial Construction and BAM Nuttall, is constructing an 80km section of the route stretching from the northern portal of the Chiltern Tunnel in Buckinghamshire to Long Itchington Wood in Warwickshire.
Meanwhile, Align, comprising Bouygues Travaux Publics, Sir Robert McAlpine and VolkerFitzpatrick, is responsible for 24km of the route through outer London and south Buckinghamshire. Its portfolio includes two of the most significant assets on the railway: the Colne Valley Viaduct and the Chiltern Tunnel.
The renegotiated contracts replace arrangements that were originally established before formal construction began in 2020. According to HS2 Ltd, the previous model placed the majority of project risk on the taxpayer while offering limited incentives for contractors to meet cost and schedule targets.
By 2024, the original £15 billion budget allocated for Phase One civil engineering works between London and the West Midlands had been exhausted despite substantial construction activity still remaining.
The revised commercial framework introduces stronger incentives for efficient delivery, linking contractor rewards more closely to programme performance, budget management and delivery outcomes. HS2 Ltd believes the new structure will help support its ambition of delivering the remaining works within the Government's £93.2 billion cost ambition announced in May.
Minister Welcomes Contract Agreement
Lord Hendy, Minister of State for Rail, said:
"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."
While welcoming the agreement, HS2 Chief Executive Mark Wild stressed that further work remains to ensure the project is delivered successfully.
Mark Wild, Chief Executive of HS2 Ltd, 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.”
Construction Progress Continues Across Route
The contract renegotiations come as HS2 enters its peak construction phase, with more than 30,000 people now working across the programme.
Major construction achievements include:
- Completion of all 46 miles of twin-bore tunnelling between Old Oak Common and Birmingham.
- More than 108 million cubic metres of earthworks completed.
- 177 bridges and viaducts currently under construction.
Industry leaders involved in the project welcomed the new agreements and the clarity they bring for the remainder of the civils programme.
Contractor Support for New Commercial Framework
Sally Cox, Managing Director at EKFB, 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. 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."
Adrien Baudard, Project Director, Align JV 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.”
Further Negotiations Continue
Alongside the contract reforms, HS2 Ltd has strengthened its commercial capability through the appointment of a new Chief Commercial Officer and additional commercial specialists.
Negotiations continue with the project's remaining civil engineering contractors. Balfour Beatty VINCI is delivering a 90km section through the West Midlands, while the Skanska Costain STRABAG joint venture is constructing the 21km London tunnels section between West Ruislip and Euston.
The wider HS2 reset programme is expected to continue until spring 2027, when a revised baseline schedule for the railway will be finalised.
Image & Video credits: HS2
