UK: HS2 Ltd has signed revised civil engineering contracts with EKFB and Align, changing payment incentives across 104km of the high-speed route between London and the West Midlands.

Concrete piers under construction for the HS2 Colne Valley Viaduct
Colne Valley Viaduct piers under construction in January 2023; illustrative image, not the July 2026 contract announcement. Photo: OtisVR / Wikimedia Commons / CC BY-SA 4.0.

HS2 Ltd said the previous contracting model, established before formal construction began in 2020, did not effectively encourage contractors to meet cost or schedule targets. It placed almost all risk on taxpayers, while the original £15bn budget allocated in 2020 for Phase 1 main civil works had been spent by 2024 with construction still far from complete.

Revised agreements divide 104km between two joint ventures

EKFB, comprising Eiffage, Kier, Ferrovial Construction and BAM Nuttall, is delivering an 80km section from the Chiltern Tunnel’s north portal in Buckinghamshire to Long Itchington Wood in Warwickshire.

Align—formed by Bouygues Travaux Publics, Sir Robert McAlpine and VolkerFitzpatrick—is responsible for 24km in outer London and south Buckinghamshire. Its principal assets include the Chiltern Tunnel and the Colne Valley Viaduct.

The 3.4km Colne Valley Viaduct completed its main civil engineering phase at the end of 2025, clearing the way for railway systems installation. Align said its team is now preparing to hand over completed civil assets for that transition.

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Payment structure targets cost and schedule performance

The revised contracts replace the earlier risk model with payments designed to reward efficient delivery, cost control and adherence to the programme. HS2 did not disclose the monetary value of either renegotiated agreement.

The contracts support Mark Wild’s £93.2bn cost ambition for the programme. The government’s May 2026 HS2 update placed the expected delivery cost between £87.7bn and £102.7bn. It projected the first Old Oak Common–Birmingham Curzon Street services between May 2036 and October 2039, with the full scheme expected between May 2040 and December 2043.

HS2 reported that all 46 miles of twin-bore tunnels between Old Oak Common and Birmingham have been excavated. The programme has also completed 108 million cubic metres of earthworks, while 177 bridges and viaducts are under construction and more than 30,000 people are working at peak activity.

Remaining contract talks continue into 2027

Renegotiations are continuing with the other two main civil engineering joint ventures. Balfour Beatty VINCI is responsible for 90km in the West Midlands, while Skanska Costain STRABAG is building the 21km London tunnel section from West Ruislip to Euston.

The wider reset will continue until spring 2027, when HS2 expects to finalise a new baseline setting out the programme’s delivery timetable.

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