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

Recovery Support Worker

Wakefield Council
Grade 7 - Grade 8, 37 hours, Permanent
Working in one of Wakefield Council’s children’s homes is a chance to change lives and transform your own future. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Children's Residential Worker

Wakefield Council
Grade 7 SCP 19 £32,061 - SCP 23 £34,537
Are you passionate about making a difference to our citizens and the district that they reside in? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Integrated Resource Teaching Assistant

Wakefield Council
Grade 5 SCP 8 £26,824 - SCP 11 £28,142
Are you passionate about making a difference to our citizens and the district that they reside in? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Graduate Finance Trainee

Essex County Council
£28090.00 - £33047.00 per annum
Graduate Finance TraineePermanent, Full Time£28,090 to £33,047 per annumLocation
Recuriter: Essex County Council

Senior Highways Inspection Officer

The Royal Borough of Windsor & Maidenhead
£39,526 - £43,613 per annum.
We have an exciting opportunity for a Senior Highways Inspection Officer to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead
Linkedin Banner