HS2 contractor pulls out of £170m agreement

The engineering firm that won the contract to deliver part of the second phase of the HS2 railway line has pulled out of the deal.

CH2M won the brief to to develop Phase 2b of HS2, which is the sections from Crewe to Manchester and Birmingham to Leeds. Phase 1, which received Royal Assent earlier this month, is from London to Birmingham, and Phase 2a covers Birmingham to Crewe.

However, Mace – which was beaten to the Phase 2b contract – had raised questions over the awarding of the deal after CH2M European managing director Mark Thurston was named as HS2’s new chief executive just two weeks after the contract award.

CH2M wrote to HS2 chairman David Higgins today confirming its decision to withdraw from the Phase 2b.

A spokesperson for CH2M said: “CH2M today provided formal notice to HS2 Ltd that we are withdrawing our interest in the HS2 Phase 2b contract.

“CH2M has demonstrated all appropriate measures taken throughout to ensure the integrity of the procurement process.

“Notwithstanding these efforts, we have taken the decision to alleviate any further delays to this critical national infrastructure project which could ultimately lead to increasing costs to UK taxpayers, as well as to our firm.

“CH2M’s reputation reflects excellence earned by placing the interests of our clients and communities first, best exemplified by our delivery of vital programmes like Crossrail, the London 2012 Olympics, the most sustainable to-date; HS2 Phase 1; and the Thames Tideway and Lee Tunnels.”

Bechtel is now being widely rumoured as a replacement.