Chris Ames Thursday, March 30, 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

Personal Advisor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £49,365 per annum
Personal Advisor£38,976 - £49,365... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Safeguarding Social Worker

Middlesbrough Council
£35,412 - £44,075 (Plus 10% Market Supplement once ASYE is completed)
Are you passionate about safeguarding those who are homeless and rough sleeping? Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Open Spaces Officer

Middlesbrough Council
£26,824 pro rata
We have an exciting role on offer within our Environmental Services as an Open Spaces Officer. Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

HGV Fleet Technician

Middlesbrough Council
£31,022 - £32,597 (plus £9,924 recruitment and retention payment to be paid annually)
We have an exciting role on offer within our Highways Infrastructure and Fleet as a HGV Fleet Technician. Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Access Safeguarding Lead Officer

Middlesbrough Council
£54,495 - £59,887
We have an exciting role on offer within our Adult Social Care and Health service as a Access Safeguarding Lead Officer. Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council
Linkedin Banner