HS2 Ltd has renegotiated contracts with EKFB and Align as part of the programme reset aimed at reducing costs and improving delivery.
The new commercial contracts cover more than 100km of the HS2 route between London and the West Midlands.
They introduce a revised payment structure to incentivise on-budget and on-time delivery. HS2 says the new agreements are a significant step forward in its commitment to deliver the remaining works at the lowest reasonable cost.
EKFB, comprising Eiffage, Kier, Ferrovial Construction and BAM Nuttall, is delivering civil engineering works on an 80km section between the north portal of the Chiltern Tunnel in Buckinghamshire and Long Itchington Wood in Warwickshire.
Align – a joint venture of Bouygues Travaux Publics, Sir Robert McAlpine, and VolkerFitzpatrick – is constructing 24km of the route in outer London and south Buckinghamshire, with major assets including the Colne Valley Viaduct and Chiltern Tunnel, the longest structures of their kind on HS2.
The previous contracting model with civils contractors was established before project construction formally started in 2020 and was identified by HS2 CEO Mark Wild last year as one of the major issues to be addressed.
The previous contracts placed almost all risk on the taxpayer by failing to incentivise schedule or cost targets. By 2024, the original £15bn budget allocated in 2020 for the main civils contracts on HS2 Phase 1 (London to West Midlands) had been spent, despite works being far from complete.
HS2 says the new approach will help ensure HS2 is built at the lowest reasonable cost and in line with the government’s £93.2bn cost ambition announced in May.
Minister for state rail Lord Hendy said the new contracts were an important milestone in the HS2 reset.
“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,” he said.
HS2 CEO Mark Wild thanked the contractors for the new agreements.
“Bringing an end to HS2’s cost overruns 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,” he said.
HS2 is now at peak construction, with more than 30,000 people working on the project. Excavation is complete on all 74km of twin-bore tunnels between Old Oak Common and Birmingham, 108 million m3 of earthworks have been completed and 177 bridges and viaducts are currently being built.
EKFB managing director Sally Cox said the new agreement provided a clear path for the remainder of the civils works and the joint venture was committed to delivering its 80km section of the route in accordance with HS2’s delivery plan.
Align JV project director Adrien Baudard said the contract renegotiation strengthened its partnership with HS2. The joint venture delivered landmarks such as the Colne Valley Viaduct and the Chiltern Tunnel and was now focused on a successful handover and transition to rail systems.
Through the reset, Wild has strengthened HS2 Ltd’s commercial capability, appointing a new chief commercial officer and new commercial staff.
Negotiations with HS2’s two other civil engineering joint ventures are ongoing. Balfour Beatty Vinci (BBV) joint venture is responsible for a 90km section of the railway in the West Midlands, while Skanska Costain Strabag (SCS) is building the 21km London tunnels section from West Ruislip to Euston.
The reset will continue into spring 2027 when a new roadmap for HS2’s delivery timetable will be finalised.
