HS2 Civils Contract Renegotiations Expected to Continue for Three Months

HS2 Ltd chief executive Mark Wild has stated that the renegotiation of the remaining main works civils contracts for HS2 Phase 1 is likely to extend for another two to three months. Speaking at a Public Accounts Committee meeting on 14 September, Wild outlined the ongoing efforts to reset the project's timelines and budgets.

The main works civils contracts for HS2 Phase 1, which covers the route from London to the West Midlands, are currently held by four joint ventures: SCS Railways, Align JV, EKFB, and Balfour Beatty Vinci (BBV JV). By the end of 2024, the initial £15bn allocated in 2020 for these contracts had been expended, despite significant portions of the work remaining unfinished.

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New Commercial Agreements

HS2 Ltd announced at the beginning of the previous month that new commercial contracts had been finalised with EKFB and Align JV. Wild indicated that progress is being made with BBV JV and SCS Railways, expressing hope that agreements with these companies could be reached within the next two to three months, potentially before Christmas.

Wild previously identified that the original contracts placed a substantial amount of risk on the taxpayer, as they lacked incentives for schedule or cost targets. He explained that the renegotiated agreements aim to create more 'tension in the system', ensuring contractors have 'skin in the game' and are jointly incentivised to minimise expenditure and encourage early delivery.

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Project Timelines

The overarching goal for HS2 Phase 1 is to have all civil engineering work completed by 2029. Following this, track laying is scheduled to commence in March 2029. Wild noted that the renegotiation of three other contracts, including those for stations and rolling stock, might continue until March of the following year.

Wild emphasised the importance of aligning all parties to a viable schedule and sequence of work. He cited the EKFB contract reset as an example of a significant shift, where the number of exclusions was reduced from several hundred to fewer than 20, indicating a move towards clearer contractual terms and shared objectives.