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.

Making digital poverty history image

Making digital poverty history

Elizabeth Anderson, CEO of Digital Poverty Alliance, discusses the role of local government when it comes to tackling digital poverty.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Accountant - Adult Social Care

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,133 - £55,758
Senior Accountant - Adult Social Care
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Personal Facilitator - Rayleigh Library

Essex County Council
Up to £23344.0000 per annum
Personal Facilitator - Rayleigh LibraryFixed Term, Part Time£23,344 per annum (full time equivalent) Location
Recuriter: Essex County Council

Libraries Strategy and Improvement Manager

Liverpool City Council
£66,750 - £74,019
Working at Liverpool City Council provides an opportunity to contribute to your community and make a positive impact on the lives of residents Liverpool, Merseyside
Recuriter: Liverpool City Council

Electrician & Multi-skilled Electrician, Selby Area

North Yorkshire Council
From £23,893 up to £40,221 per annum pro rata
The Housing Standards team is responsible for the management and maintenance of all the Councils’ homes. Selby, North Yorkshire
Recuriter: North Yorkshire Council

Lead Compliance Surveyor WMF1472e

Westmorland and Furness Council
£53,775 - £55,963
We have an exciting opportunity in the Corporate Assets Team Cumbria / Various
Recuriter: Westmorland and Furness Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.