HS2 Delivery Strategy Undergoes Major Contractual Reset

The High-Speed 2 (HS2) project is entering a strategic reset phase, with plans to renegotiate existing civil engineering contracts. This shift aims to better align risk, costs, and delivery expectations between the public sector and joint venture contractors.

As announced during a recent Public Accounts Committee session, HS2 Ltd will maintain its current contracting framework. However, incentive structures will be adjusted in collaboration with 14 parent companies overseeing the delivery consortia. These revisions seek to improve cost control while preserving the overall project scope.

The need for contractual realignment emerged from multiple observations. Construction on phase one began before all design work was completed, limiting the project’s ability to manage risk. The original contracts, signed in early 2020, have become largely cost-reimbursable and HS2 Ltd has since faced difficulties controlling escalating expenditures.

Moving forward, HS2 leadership, will develop a revised baseline for cost and scheduling over the next 18 months. Private financing remains under evaluation for specific segments such as Euston Station, and future-proofing efforts include planning for up to four additional platforms.

The reset does not indicate re-procurement but represents a practical response to cost pressures, incomplete designs, and lessons learned during delivery.

Following the most recent project update by HS2.