Engineering firm wins major HS2 contract after wrangle

ENGINEERING firm Bechtel has been named by HS2 as its preferred supplier for a major contract following a row over alleged conflicts of interest.

US-based CH2M withdrew from the £170 million deal to develop Phase 2b of the highspeed rail network last month.

Losing bidder Mace had threatened to sue HS2 amid concerns about its close links with CH2M and called for the procurement process to be rerun. Mark Thurston, HS2’s new chief executive, is a former CH2M employee, as was his temporary predecessor Roy Hill.

A total of 25 HS2 staff have previously worked for CH2M, while 37 of the engineering company’s employees are on secondment to HS2.

But HS2 insisted the bidding competition was “fair and robust”, with neither Mr Hill or Mr Thurston having “any input into or access to the process”.

On Tuesday, it announced its intention to award the contract to Bechtel without re-running the exercise.

Mace has 10 working days to lodge an appeal.

An HS2 spokesman said: “HS2 Ltd can confirm that Bechtel are being taken forward to the next stage of the 2b Development Partner procure- ment process. The bidder now enters the standstill period allowed for under the process prior to contract award. Following discussions, we are confident they are able and prepared to deliver the contract on time, on budget and to a high standard.”

Phase 1 of HS2 between London and Birmingham is scheduled to open in December 2026, with a second Y-shaped phase launching in two stages.

Phase 2a from the West Midlands to Crewe will open in 2027 and Phase 2b from Crewe to Manchester and Birmingham to Leeds, will begin operation in 2033.