Lack of bidders forces HS2 to relaunch contractor search for £1.5bn rail contract

High Speed 2 is “re-launching” its £1.5bn track and overhead line contract, blaming “increasing concern regarding risk transfer” from contractors.

The contracts, for phase 1 and 2a from London to Birmingham and West Midlands to Crewe, were due to start in December this year and run through to December 2027.

A notice posted on the Official Journal of the European Union said: “HS2 Ltd is hosting an Industry Day on 3.9.2019 to re-engage with the market and launch its revised strategy based on market appetite and conditions.

“HS2 have recognised the current market conditions are challenging and the increasing concern regarding risk transfer and have therefore revised our position to provide a better balance and overall outcome.

“The industry day will provide an opportunity to re-engage with the market and outline our revised strategy which we believe will attract a larger number of bidders, reduce risk and thereby produce a more competitive process.”

An HS2 spokesperson said: “We are currently revising our approach to the procurement of our Railway Systems contracts to increase competition and reduce risk for our contractors. These contracts cover our track and overhead catenary systems as well as tunnel and lineside mechanical and electrical work.

“Taking these decisions now will help us deliver contracts which, in the long term, deliver best value for HS2 and the taxpayer.”

The planned HS2 station at Curzon Street

In July, HS2 cancelled its original procurement strategy for Curzon Street Station in Birmingham due to lack of interest.

The government body behind England’s high-speed rail project launched what it called “a fresh approach” to engaging with prospective contractors.

In an advertisement calling for applications for an Industry Day, HS2 said it had listened to market feedback from the original procurement and believed the new approach would attract more bidders, reduce risks and thereby produce a more competitive process.

The original procurement process was launched in November 2018 but HS2 also said there would be no change to the current planned opening date of 2026, and the award of the contract for Curzon Street was still set for 2020, despite the procurement pause and re-plan.

Click here to sign up to receive our new South West business news...
Close