Chris Ames 30 March 2017

Engineering giant pulls out of £170m HS2 contract

HS2 Ltd has welcomed a decision by engineering giant CH2M to pull out of a development contract worth up to £170m after rivals raised conflict of interest concerns.

Chairman and CEO of the US-based firm, Jacqueline Hinman, has written to HS2 Ltd chairman David Higgins to formally withdraw interest in the Phase 2b Development Partner Contract award, which was only announced last month.

Reports suggest officials investigated concerns from rival bidder Mace over alleged conflicts of interest after Mark Thurston, regional managing director overseeing CH2M’s European operations, was appointed as the new chief executive for HS2 Ltd.

He is due to start in the spring, 'once he has transitioned his leadership responsibilities at CH2M'.

CH2M said in a statement: ‘The protracted delays and ongoing speculation risk further delays to this critical national infrastructure, thereby increasing costs to UK taxpayers, as well as to the firm.’

A spokesperson for CHSM added: ‘CH2M has demonstrated all appropriate measures taken throughout to ensure the integrity of the procurement process.

‘Notwithstanding these efforts, we have taken the decision to alleviate any further delays to this critical national infrastructure project which could ultimately lead to increasing costs to UK taxpayers, as well as to our firm.’

A spokesperson for HS2 Ltd said: 'As they have announced, CH2M have decided to withdraw from the Phase 2b Development Partner bid process, a decision which we welcome.'

The spokesperson confirmed that the deal was worth £130m -170m. CH2M is also involved in the first phase of the high speed rail link and said it remains ‘fully committed to working with HS2 Ltd on delivering Phase 1 on time and within budget’.

A spokesperson for HS2 Ltd said they had started discussions with the second placed bidder – Bechtel – with a view to signing a contract with them instead.

SIGN UP
For your free daily news bulletin
Highways jobs

Independent Travel Trainer

Oxfordshire County Council
£41,771 - £45,091
About Us At Oxfordshire County Council (OCC), our Supported Travel Service plays a vital role in keeping communities across the county connected, independent and involved. Every day, a dedicated team of around 200 staff members supports the journeys and t Oxford
Recuriter: Oxfordshire County Council

Contract & Compliance Manager

Oxfordshire County Council
£63,576 - £67,003
About Us At Oxfordshire County Council (OCC), our Supported Travel Service plays a vital role in keeping communities across the county connected, independent and involved. Every day, a dedicated team of around 200 staff members supports the journeys and t Oxford
Recuriter: Oxfordshire County Council

Procurement Manager

West Northamptonshire Council
£49587 - £52860
At West Northamptonshire Council, we are currently looking for two experienced procurement professionals to join and support both our People and Resources and Place and Capital Business Partner teams. As procurement managers you will play a central role Northampton
Recuriter: West Northamptonshire Council

Technical Assistant - Place Services

Essex County Council
Up to £25081.00 per annum + + 26 Days Leave & Local Gov Pension
Technical Assistant - Place ServicesPermanent, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Senior Project Manager (Major Projects)

Calderdale Metropolitan Borough Council
£49,282 - £52,413
Are you a Senior Project Manager with significant experience in delivering highway and infrastructure projects? Calderdale, West Yorkshire
Recuriter: Calderdale Metropolitan Borough Council
Linkedin Banner