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

Careers and Skills Facilitator Part Time

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,260 - £48,789 (pro-rata)
Careers and Skills Facilitator... Richmond, Greater London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Community Support Worker

Essex County Council
£26284.0000 - £33256.0000 per annum
Community Support WorkerPermanent, Full Time£26,284 to £33,256 per annumLocation
Recuriter: Essex County Council

Residential Assistant

Essex County Council
£25959.0000 - £26284.0000 per annum
Residential AssistantPermanent, Part Time£25,959 to £26,285 per annum (full time equivalent) Location
Recuriter: Essex County Council

Senior Social Worker

Cheshire East Council
£43,149 - £49,658 per annum
At Cheshire East Council, we're looking for a passionate and skilled Senior Social Worker to join our children's services team. Macclesfield/ Crewe
Recuriter: Cheshire East Council

Educational Teaching Assistants - Southgate School

Kirklees Metropolitan Council
£22,272 - £23,389
This is more than just a job. It is an opportunity to make a real difference in the lives of young people Huddersfield, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner