The total project cost of the Vauxhall Tube station improvements has been slashed by £9m from £45m to around £36m because of a more cost effective construction method, which also reduces environmental impact.

Construction work will start in early 2014 and be completed by late 2015.

Amjad Bangash, Managing Director of Bechtel’s rail business, said: “This new contract builds on Bechtel’s previous work with London Underground, successfully managing nearly 100 tube station upgrades, including a significant programme providing step-free access.”

David Waboso, London Underground’s Capital Programmes Director, said: “The modernisation will make the station step-free, give passengers more space and make journeys through the station quicker and more pleasant.

“Careful thought has been given to the environmental impact of the works and how we can reduce costs.

“The lift shaft will be constructed from below ground level at the side of the ticket hall to minimise the disturbance in the surrounding area.

“In addition, the shaft and connecting tunnels will be constructed using sprayed concrete lining techniques, which reduces the amount of excavated materials and associated haulage.

“This has already produced significant savings in both utility diversions and construction costs.”

The upgrade is needed to meet a forecast 40% rise in passengers in the next few years and forms part of a package of measures from Transport for London to upgrade links in the massive development district.

These includes projects to extend the Northern line, transform the gyratory and major improvements for walking and cycling.

The works to improve Vauxhall station are part of TfL’s focus on investing in transport projects across London that will support economic growth including up to 20,000 jobs and 16,000 homes in the Vauxhall, Nine Elms and Battersea areas.

Vauxhall is designated as one of London’s Opportunity Areas, and is set to benefit from huge investment over the coming years – with major developments planned for the Nine Elms area.