HS2 renegotiates major civils contracts as programme reset gathers pace

By Danny BallPublished On: August 3rd, 2026Categories: News, Rebuild, Top Stories

HS2 Ltd has signed new commercial agreements with two of its largest civil engineering joint ventures as part of its programme reset, introducing revised contracts designed to strengthen cost control and improve delivery across more than 100km of the high-speed railway.

The new contracts have been agreed with EKFB and Align, which together are responsible for delivering major sections of the route between London and the West Midlands.

The agreements form part of HS2’s wider programme reset under Chief Executive Mark Wild, with the revised commercial model intended to incentivise efficient delivery, reduce cost overruns and improve value for taxpayers.

Revised contracts target more efficient delivery

EKFB, a joint venture comprising Eiffage, Kier, Ferrovial Construction and BAM Nuttall, is delivering an 80km section of the railway between the north portal of the Chiltern Tunnel in Buckinghamshire and Long Itchington Wood in Warwickshire.

Align, formed by Bouygues Travaux Publics, Sir Robert McAlpine and VolkerFitzpatrick, is constructing 24km of the route through west London and Buckinghamshire, including the Colne Valley Viaduct and the Chiltern Tunnel.

According to HS2 Ltd, the previous contracting model placed most commercial risk on the taxpayer and provided limited incentives for contractors to control costs or maintain programme schedules.

By 2024, the original £15 billion budget allocated to the main Phase One civil engineering contracts had been exhausted despite significant work remaining.

The new agreements introduce revised payment structures that reward contractors for delivering work on time and within budget, supporting the Government’s £93.2 billion cost ambition announced earlier this year.

Government and HS2 back programme reset

Mark Wild, Chief Executive of HS2 Ltd, added: “This is good news, but there’s more to do. Bringing an end to HS2’s cost over-runs and delays is a shared ambition, and I’d like to thank every one of the parent companies at both EKFB and Align for their willingness to negotiate and their commitment to doing the right thing for British taxpayers.

“Investing in world-class infrastructure is vital to securing economic growth, but it cannot come at any cost. Today’s announcement represents a significant step forward in our mission to regain control of HS2.”

HS2 said construction activity is continuing to increase, with the project now employing more than 30,000 people across the UK.

To date, all 46 miles of twin-bore tunnels between Old Oak Common and Birmingham have been excavated, while more than 108 million cubic metres of earthworks have been completed and 177 bridges and viaducts are currently under construction.

Sally Cox, Managing Director at EKFB, said: “EKFB has worked closely with HS2 Ltd to support the reset of the HS2 programme and has now reached a new commercial agreement. I’m proud of the strong working partnership between the teams at EKFB and HS2 Ltd which has supported the swift conclusion of the contract renegotiation phase. This agreement provides a clear path for the remainder of the civils works and we are committed to delivering our 80km section of the route in accordance with HS2’s delivery plan.”

Adrien Baudard, Project Director at Align JV, added: “The contract renegotiation has been an opportunity to strengthen our long-standing partnership with HS2 and build upon our shared objectives.

“As an integrated project team, we have proudly delivered landmark assets such as the Colne Valley Viaduct and the Chiltern Tunnel and are now focusing on preparations for a successful handover and transition to rail systems.”

Negotiations with HS2’s remaining civil engineering joint ventures, Balfour Beatty VINCI and Skanska Costain STRABAG, are continuing as part of the wider programme reset, with a revised delivery baseline expected to be finalised in spring 2027.