Update on Contracts – High Speed 2 and Highways England

The contract, worth £3.298 billion to the joint venture as a whole, will involve the design and construction of major tunnels in the approach to the London terminus at Euston station. It is estimated that Phase 1 of the works will create 6,000 jobs.

To date, the joint venture’s contract with HS2 has been to undertake scheme design and site preparation for the civil engineering work. The new contract marks the point where the work transitions from scheme design and preparatory work to full detailed design and construction.

Currently, in response to the Covid-19 situation, construction on site is paused for all but safety-critical works for the health and safety of employees and the communities in which they work. Given the delayed start, the contract is not expected to make a significant contribution to the Group’s profitability until FY21 onwards.

Separately, Costain has been awarded a £210 million design and build contract by Highways England to upgrade an existing section of the A30 north of Truro, Cornwall. The scope of work includes the upgrading of an 8.7-mile section between Chiverton Cross and Carland Cross from a single carriageway to a dual carriageway, together with the construction of new grade-separated junctions, slip roads and bridges. Detailed design will commence in April 2020 with works commencing in the coming months. The new upgrade is expected to be open for traffic by the end of 2023.

Source: Costain