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HS2 allocates Skanska JV additional £150m for works

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Skanska Costain Strabag joint venture (SCS JV) has been allocated an additional £146.609 million towards works on HS2.

HS2
Credit: HS2

Skanskas has been allocated £50 million, with its contract for works now totalling £1.425 billion under the existing contract with HS2 Ltd.

The allocated funds are towards works on phase one of the high-speed railway project.

The overall payment across the joint venture is £146.609 million, and the payment is split between the joint venture:

  •  34 per cent Skanska 
  •  34 per cent Costain
  •  32 per cent STRABAG

SCS JV’s work involves the design and construction of major tunnels in the southern section of the overall project.

Part of that work includes the 7.2 kilometre tunnel between Euston and Old Oak Common which was delayed to 2024.

Since being given notice to proceed 2020, Two tunnel boring machines (TBMs) started operations in late 2022, with a further two which started operations in early 2024 and a total of four TBMs now operational.

The TBMs are building 13.5 kilometres of twin bored tunnels between West Ruislip and the new high speed rail superhub station at Old Oak Common.

Last Friday, Balfour Beatty VINCI SYSTRA JV (BBVS JV) completed the excavation of the Old Oak Common Station underground box, handing over to SCS JV to begin tunnel construction.

In June 2022, SCS JV was awarded additional £78 million for the Euston tunnel.

Most of the additional costs are for inflation rather than changes to scope, contained within the HS2 contingency fund. 

As such, Skanska claims there will be no impact on the programme schedule.

An HS2 Ltd. spokesperson said: “The allocation is based on a number of elements including adjustments for inflation and additional compensation events. This is drawn down from HS2’s contingency funding.”

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