{"id":502254,"date":"2024-07-15T09:00:26","date_gmt":"2024-07-15T08:00:26","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=502254"},"modified":"2024-07-12T13:30:12","modified_gmt":"2024-07-12T12:30:12","slug":"hs2-costs-rise-on-phase-one-works","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/civils\/hs2\/hs2-costs-rise-on-phase-one-works-15-07-2024\/","title":{"rendered":"HS2: costs rise on phase one works"},"content":{"rendered":"

Costs have risen on the main civils works of HS2 in the south of England.<\/span><\/p>\n

Skanska revealed in a stock market statement on Friday that it is set to receive an extra \u00a350m for its role on the southern section of the megaproject after agreeing changes to its scope of works.<\/span><\/p>\n

The Swedish multinational is in a joint venture with Costain and Strabag on the project, known as SCS JV, holding a 34 per cent share.<\/span><\/p>\n

Costain also owns a 34 per cent share, while Austrian multinational Strabag holds 32 per cent.<\/span><\/p>\n

HS2 said some of the increase was due to inflation, but refused to state the total extra money given to the JV.<\/span><\/p>\n

The main works civils (area south) contract had previously been worth \u00a33.8bn overall.<\/span><\/p>\n

It is the second year in a row that it has received extra cash due to changes in the scope of works, after it received an extra \u00a3305.3m<\/span> in July 2023<\/span><\/a>.<\/span><\/p>\n

Skanska\u2019s statement said: \u201cThe award relates to planned and agreed changes to the scope of works under the contract.\u201d<\/span><\/p>\n

But an HS2 spokesperson said: \u201cThe allocation is based on a number of elements including adjustments for inflation and additional compensation events. This is drawn down from HS2\u2019s contingency funding.\u201d<\/span><\/p>\n

Work under the contract includes the design and construction of major tunnels in the southern section of the overall project.<\/span><\/p>\n

This includes tunnel boring across London and between the capital and Birmingham. In April it<\/span> launched the last of four tunnel-boring machines<\/span><\/a> to build the Northolt Tunnel in west London.<\/span><\/p>\n

Uncertainty surrounds its tunnelling work between Old Oak Common and Euston after the latter station\u2019s<\/span> development was paused<\/span><\/a> over its spiralling cost and then<\/span> relaunched with a plan based on private sector funding<\/span><\/a>.<\/span><\/p>\n

In January,<\/span> HS2 interim chief executive Sir Jon Thompson said the true cost of phase one of the megaproject would be around \u00a38bn-\u00a310bn higher<\/span><\/a> than the company\u2019s official estimates, which are still stated in 2019 prices.<\/span><\/p>\n

Former Crossrail boss Mark Wild was<\/span> named as HS2\u2019s next chief executive in May<\/span><\/a>. His start date has not yet been announced.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Costs have risen on the main civils works of HS2 in the south of England. Skanska revealed in a stock market statement on Friday that it is set to receive an extra \u00a350m for its role on the southern section of the megaproject after agreeing changes to its scope of works. The Swedish multinational is …<\/p>\n","protected":false},"author":43915,"featured_media":497093,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[39314,543],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n