New commercial contracts have been signed with EKFB and Align which collectively account for more than 100km of HS2 between London and the West Midlands.

The new deals “reset incentives by rewarding efficient delivery and cost control through a revised payment structure with contractors, ensuring they are incentivised to deliver on budget and on time.”

Previous contracts were “ineffective at encouraging efficient delivery of civil engineering works, placing almost all risk on the taxpayer by failing to incentivise schedule or cost targets.”

By 2024, the original £15bn budget allocated in 2020 for the main civils contracts on HS2 Phase 1 (London to West Midlands) had been spent, despite works being far from complete.

HS2 said the new approach “provides greater confidence that HS2 Ltd can deliver the remaining programme in line with the £93.2bn cost ambition announced by the Government in May.”

EKFB – a joint venture of Eiffage, Kier, Ferrovial Construction and BAM Nuttall – is delivering civil engineering works on an 80km section of the high-speed railway between the north portal of the Chiltern Tunnel in Buckinghamshire and Long Itchington Wood in Warwickshire.

Align – a joint venture made up of Bouygues Travaux Publics, Sir Robert McAlpine, and VolkerFitzpatrick – is constructing 24km of the route in outer London and south Buckinghamshire, with major assets including the Colne Valley Viaduct and Chiltern Tunnel, the longest structures of their kind on HS2.

Lord Hendy, Minister of State for Rail, said: “These new contracts are an important milestone in the reset of HS2. The waste and mismanagement of the past are behind us – we are now laser-focused on delivering this project efficiently and responsibly for taxpayers.

“By resetting contractor incentives and rewarding cost control, we are making sure every pound spent delivers real value and that the project is built at the lowest reasonable cost.”

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.”

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, Align JV said: “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 two other civil engineering joint ventures are ongoing.

The Balfour Beatty VINCI (BBV) joint venture is responsible for a 90km section of the railway in the West Midlands, while Skanska Costain STRABAG is building the 21km London tunnels section of HS2 beneath the capital from West Ruislip to Euston.