From "New Civil Engineer"
Two HS2 JVs lack ‘sufficient capacity and capability’ according to deputy chair
17 OCT, 2022 BY
ROB HAKIMIAN
Two out of the four main contractor joint ventures (JVs) working on HS2 Phase 1, London to Birmingham, lack “sufficient capability to manage all the various obligations placed upon them”, according to a leaked internal review document.
The document, seen by the
Financial Times, is report by HS2 Ltd deputy chair Sir Jon Thompson to the HS2 board. Thompson, who was formerly head of HM Revenue & Customs, adds that the four JVs are “too large to effectively manage and control”.
The four JVs working on HS2 are:
- SCS JV: Skanska, Costain, Strabag
- Align JV: Bouygues Travaux Publics, Sir Robert McAlpine and VolkerFitzpatrick
- EKFB JV: Eiffage, Kier, Ferrovial, Bam Nuttall
- BBV JV: Balfour Beatty, Vinci
SCS is working on
the tunnels in London. Align is currently working on the
Chiltern tunnels and the
Colne Valley Viaduct. EKFB is working on the route beyond the Colne Valley, through Buckinghamshire, including the
Thame Valley Viaduct and the
precast green tunnels in Chipping Warden. BBV is building the West Midlands section of the route, including the
Water Orton viaducts.
Thompson’s report, according to the
Financial Times, also says that HS2 Ltd is receiving “bids for money from contractors on a continual basis and significant and lengthy commercial discussions around them”.
The report states that the final cost of HS2 Phase 1 will be “many billions more than the reported estimate” of £40.3bn. This means it will also likely overrun its contingency budget of £44.6bn. Thompson says that HS2 has continued to record costs in 2019 prices, which means that none of the figures truly reflect “what has or is being paid”.
The report continues: “In almost every area reviewed significant developments are planned in 2022/23 which impact on the estimates and risk.” It also highlights the “significant and growing challenge” of inflationary cost pressures.
Last week, Lord Tony Berkeley, who served as the deputy chair of the
government-ordered review into HS2 which concluded earlier this year, said that allowing for inflation using Office for National Statistics indices, he believes HS2’s overall cost for Phases 1 and 2a now sits at £155.52bn – over £100bn more than what has been budgeted for.
Despite this, the Department for Transport has said: “There are no plans to cancel HS2, this vital project is already well underway, significantly contributing to Britain’s economic growth and setting the foundations for additional schemes as Northern Powerhouse Rail.”
A HS2 spokesperson said: “We are confident in the progress the programme is making in partnership with our suppliers. HS2 is complex project, unprecedent in scope and scale, and we constantly review and evaluate the performance of our Joint Venture construction partners. HS2 Ltd has strong processes for the management of our contractors, and working together we remain confident that we will deliver the project successfully.”