High Speed 2 Railway Line

Department for Transport written question – answered on 21st June 2018.

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Photo of Dame Cheryl Gillan Dame Cheryl Gillan Conservative, Chesham and Amersham

To ask the Secretary of State for Transport, whether the initial cost estimates for the four joint ventures working on the seven packages of the civils works contracts on High Speed 2 Phase 1 submitted at the end of the third checkpoint have come in over their original budget; and by how much each such (a) joint venture and (b) package has so gone over that budget.

Photo of Nusrat Ghani Nusrat Ghani Parliamentary Under-Secretary (Department for Transport), Assistant Whip (HM Treasury)

In July 2017 HS2 Ltd awarded Stage 1 of seven Main Works Civils Contracts (MWCCs) to four joint venture companies. Stage 1 activities include design works that enable the suppliers to confirm and agree the price and schedule for the subsequent (Stage 2) detailed design and construction. There are a series of gateway reviews which lead to an agreed price and schedule prior to Notice to Proceed, and suppliers have recently submitted responses to the third (out of six) gateway review.

HS2 Ltd is currently working with the joint ventures to progress design development and agree final cost estimates for the Main Works Civils for Phase One. HS2 Ltd is still in commercial discussions with these joint ventures and has not yet authorised Stage 2 of these contracts. It is not appropriate to set out detailed cost estimates for each package at this stage as this information is commercially sensitive and also incomplete. HS2 Ltd and the suppliers will work together to ensure the successful delivery of HS2 within the agreed budget. In the event that acceptable prices cannot be agreed HS2 Ltd can re-tender specific contracts.

The Department for Transport will set out a full affordability assessment as part of the Full Business Case for Phase One, which will be published prior to Notice to Proceed.

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