Costain’s major M62 upgrade axed over soaring costs

Aaron Morby 1 year ago

National Highways has scrapped Costain’s major project to install concrete central reserve barriers on the M62 across the Pennines on the eve of main works starting.

The M62 J20-25 project between Rochdale and Brighouse was originally conceived as a smart motorway scheme but had already been down-sized to a central reserve upgrade.

Now the projected cost of the 19-mile central reserve upgrade has soared so high that National Highways has axed the scheme.

It will now syphon off allocated funding for the M62 to top up the M1 J10-13 planned motorway scheme which is also forecast to exceed the original budget and had struggled to get final sign-off.

Costain recently completed works on a big works compound for the M62 job and will have to demobilise its team.

National Highways said it would work hard to explore opportunities for transfer of colleagues on to other schemes, as well as develop next steps for planned, closure and handover of the scheme and assets.

National Highways managing director of the Smart Motorway Alliance Tony Slater told firms that extensive forecasting exercises for the M62 J20-25 scheme projected the full scope cost would be 60% above the available budget.

Slater said that even after trying cuts to scope, Costain’s projected cost would be 10% above the available budget.

He said: “Frustration will be felt most profoundly by everyone who has been working hard on the M62 J20-25 scheme.

“The decision to stop work this scheme is hugely challenging to me, our Alliance members and our suppliers, and it is a decision we have tried very hard to avoid.”

Slater said he acknowledged there were still challenges to overcome on other projects including the M6 J5-8, M6 J8-10a and M42 J4-7 dynamic hard shoulder schemes.

He said: “These challenges are still being discussed and actively worked through – a further review of M6 J8-10a and M42 J4-7 schemes will be conducted as soon as we have finalised discussions, no later than September.”

The decision is another blow to Smart Motorway Alliance firms who late last month saw the Government confirm the paused Smart Motorway Programme would be abandoned after a 16-month long safety review.

Eleven projects already paused and three more earmarked for construction during the third Road Investment Strategy (2025 to 2030) were removed from government road-building plans.


Latest news

Former Crossrail boss Mark Wild to lead HS2

Wild to bear down on spiralling costs and bring rejigged scheme in on time
12 hours ago

Election delays decision on Lower Thames Crossing

Planning decision on £1.2bn Luton airport expansion also pushed back six months
43 mins ago

Costain A1 £260m dualling job finally gets go-ahead

Ministers sat on planning inspectors report for nearly three years
48 mins ago

Receivers in at £125m Manchester tower developer

Domis Construction walked away from scheme following doubts over funding
1 day ago

Plans in for Leeds iconic Tetley building revamp

Former brewing giant's HQ to become indoor market and offices
47 mins ago

BAM wins first phase of North Devon hospital revamp

New staff accommodation to kick-off hospital redevelopment
48 mins ago

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
5 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
4 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
4 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
4 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
5 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
5 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
5 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
5 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
5 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
5 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
5 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
5 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
6 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
6 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
6 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
6 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
6 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
6 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
7 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
7 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
7 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
1 week ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
7 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
7 days ago

Contractor services