UK: HS2 has renegotiated two civil engineering contracts covering more than 100km of the London–Birmingham route as the government seeks tighter control over future project spending and delivery.

Aerial view of the HS2 Colne Valley Viaduct under construction with Align’s launching girder over a lake.
HS2’s Colne Valley Viaduct on the Align section, shown during construction in April 2024; illustrative image that does not depict the contract renegotiation. Photo: 42 Walkers / Wikimedia Commons, CC BY 4.0

HS2 contract renegotiation covers EKFB and Align

The Department for Transport was expected to announce the revised agreements on 31 July, Sky News reported. The reported settlements are with EKFB and Align, which deliver adjoining sections of the railway between London and the West Midlands.

EKFB comprises Eiffage, Kier, Ferrovial Construction and BAM Nuttall. Its section extends for approximately 80km from the Chiltern Tunnel’s northern portal to the Long Itchington Wood Green Tunnel. Align brings together Bouygues Travaux Publics, Sir Robert McAlpine and VolkerFitzpatrick; its approximately 22km section includes the 16km Chiltern Tunnel and the Colne Valley Viaduct.

The detailed pricing, risk allocation and performance conditions of the revised contracts had not been published at the time of writing. Sky News said the changes were expected to save hundreds of millions of pounds by replacing incentives that had allowed spending to rise.

HS2 chief executive Mark Wild called the agreements a “significant step forward in our mission to regain control of HS2.” He said ending cost overruns and delays was a shared objective, but that infrastructure investment could not come at any cost.

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Wider commercial reset targets around £2bn

The National Audit Office’s June 2026 report said HS2 Ltd began renegotiating its four main civil engineering contracts in spring 2024. After an initial approach failed, a renewed commercial reset started in April 2025 to settle historic costs, strengthen controls and revise terms for future expenditure.

Under the revised approach described by the watchdog, contractors may receive more if they complete work early and efficiently. The broader commercial reset aims to save around £2bn, including costs avoided if work takes longer. That figure applies to the wider programme and is not a confirmed saving from the EKFB and Align agreements alone.

The NAO also reported that HS2 Ltd and its contractors had identified around £500m in disallowable costs across main civil works and station contracts by May 2026.

Two contracts leave the wider reset unfinished

By 31 March 2026, £46.8bn had been spent on the programme, including the cancelled Phase 2. The government’s May 2026 HS2 reset placed the expected programme cost at £87.7bn–£102.7bn, with HS2 Ltd aiming to deliver it for £93.2bn within that range. Initial services between Old Oak Common and Birmingham Curzon Street are expected between 2036 and 2039. About 30,000 people currently work on the project.

Talks with the two remaining main civil engineering joint ventures are continuing. The NAO expected the main works negotiations to conclude by autumn 2026, while the wider programme reset is scheduled to run until spring 2027.

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