Costain dropped from £1.3bn A66 road job

Aaron Morby 4 months ago

National Highways has pulled Costain from the quartet of contractors mobilising to deliver the £1.3bn A66 Northern Trans-Pennine upgrade project.

At the same time in another serious blow to the firm’s highways division, Costain has agreed it will now deliver its planned £1bn-£1.3bn A12 upgrade around Colchester in the south east as a joint venture rather than as sole main contractor as originally planned.

Both National Highways and Costain described the decision as ‘an agreed change in contracting strategy’ for the mega projects.

The decision comes at a difficult time for Costain, which recently saw two key directors leave the £450m turnover highways division.

Also just over a month ago, it suffered another major project setback when National Highways managing director of the Smart Motorway Alliance, Tony Slater, cancelled the firm’s 19-mile central reserve replacement project along the M62 over soaring costs.

Taken together the decisions are estimated to shrink Costain’s pipeline of work by around £1bn.

It is understood Costain has been given eight weeks to demobilise on the A66, where it has built compounds and is carrying out ground investigation.

Fellow partners on the route upgrade Kier and Balfour Beatty are understood to be ready to share Costain’s work package, with the remaining partner Keltbray staying with its smaller section.

A spokesman for Costain said: “We’ve been holding regular meetings with National Highways about the A66 scheme.

“As a result of those meetings, we’ve both agreed to a change in contracting strategy which will see Costain’s involvement in the development phase of the A66 come to an organised and managed end. We will continue to bring our innovation and expertise to other critically important National Highways projects.”

National Highways added in its own statement: “We would like to thank Costain for their work during the development phase of one of our most significant and complex projects.”

On the A12 Chelmsford to A120 widening project National Highways said: “Costain will continue to work on the A12 Chelmsford to A120 Widening project, supporting the delivery of the project’s DCO application and delivering a package of enabling works for the scheme.

“We will continue to work together on the A12 until the existing contract comes to its conclusion.”

It is understood the plan is to deliver the main contract element as a joint venture with Costain set to team up with Skanska or Balfour Beatty, although no decision has been taken yet on the new delivery set-up.


Latest news

Housing contractor Real LSE files administration notice

Real LSE part of group formed in 2021 following acquisition of Rydon contracts
4 hours ago

ISG clinches £155m Cat D prison expansion

Firm to deliver 780 new places at three existing prison locations
4 hours ago

27-storey Salford student tower approved

540-bed student block to be built on former site of McDonalds' regional HQ
3 hours ago

Morgan Sindall £48m Dumfries school job approved

Building work to start before the end of 2023
3 hours ago

Pagabo starts race for £1.6bn decarbonising frameworks

Two frameworks are anchored by Great Ormond Street Hospital and Hull City Council
4 hours ago

Former HS2 chairmen blast plans to scale back scheme

Fears grow for future of UK's biggest construction project
3 hours ago

Redrow plans 1,400 home garden village in Rochdale

Construction on first phase could start next year
4 hours ago

Bouygues/Murphy JV tipped for £2.3bn Thames tunnel job

Frontrunner emerges for Lower Thames Crossing 4.2km tunnel job
3 days ago

Subbies facing squeeze as main contractors tighten belts

Pay disputes increasing as suppliers fear major contractors returning to "bad old ways"
3 days ago

Portview takes control of Fulham Buckingham stand

Fit-out specialist steps in after main contractor failure
3 days ago

Firefighters probe cause of Leeds modular scheme blaze

Fire broke out in timber frame office job at Citu's eco development
3 days ago

Manslaughter probe dropped after demolition deaths

HSE to now lead investigation of 2019 tragedy
3 days ago

Vinci/McAlpine JV to start £105m NHS rehabilitation centre

Treasury clears New Hospital Programme job to start main construction
3 days ago

First sign of price falls for construction products

Supply returns to pre-covid levels as demand drops
4 days ago

Three giant lab buildings approved at £700m Oxford R&D district

Phase 2 Oxford North office and lab buildings to deliver 460,000 sq ft of space
5 days ago

PM fails to quash speculation about plan to axe HS2 phase 2

Sunak ducks future of HS2 question at big net zero Government briefing
4 days ago

Green light for giant North Wales offshore wind farm

Awel y Môr wind farm is the biggest renewable investment in Wales for a decade
4 days ago

T&T breaks £1bn revenue mark for first time

Global consultant enjoys strong growth across all seven geographical regions
4 days ago

Subcontractors and suppliers wanted across Scotland

Constructionline Meet the Buyer event next week at Hampden Park: Register now
4 days ago

Springfield switches strategy as private housing slumps

Scottish house builder turns back to affordable homes market
5 days ago

Sunak details zero carbon targets climbdown

Ban on gas boilers delayed five years; 50% rise in scrappage scheme
5 days ago

RG Group to build tallest student block in the world

Contractor confirmed on 45-storey tower in Leeds
5 days ago

Galliford Try forecasts profit to double next year

Contractor delivers strong results this year and raises expectation for 2024
5 days ago

Strabag hires 15 senior Buckingham Group staff

Austrian civils giant to set up UK building business with pool of staff
6 days ago

Contractors raise pay offer to avert engineering construction strike

Blue book agreement employers up final offer to 10%
5 days ago

Former Mid Group chief joins Tilbury Douglas

Steven Hearn gets new role as regional director of the South East division
5 days ago

Crumbly concrete found at extra 27 schools

A total of 174 schools now found to contain RAAC concrete
6 days ago

Henry Boot Construction struggling to find work

Contracting arm looking to fill order book
6 days ago

More schools found to have crumbly concrete

Surveyors find another 27 schools containing Raac
6 days ago

Buckingham Plant Hire still trading as normal

Separate plant business "not affected" by collapse of contractor
6 days ago

Contractor services