NAO praises contracts approach

The National Audit Office describes HS2 Ltd’s approach to main civil engineering contracts of engaging the market two years before the beginning of the procurement process as “good practice”.

HS2 Ltd splits contracts into two stages. The first requires contractors to work with it to develop the design and method of construction, so that forecast costs are reduced and opportunities to improve to deliver more quickly are identified. The second is to finalise designs and carry out the construction. The commercial approach includes mechanisms for contractors and the programme to benefit from any savings against the budgeted price of the contract.

The NAO says this approach “has resulted in strong interest from the market, and the shortlist includes joint ventures with extensive experience of high-speed rail internationally, and of major infrastructure and rail programmes”.