In July 2017, HS2 Ltd let contracts with four joint venture companies for the main civil construction work on Phase 1. However, in 2020, once the cost of building the railway became clearer, it revised the terms of the contracts in an attempt to ensure an affordable programme at that time. Contractors would no longer be liable for cost increases above a fixed target price. Instead HS2 Ltd would be responsible for funding increases above the estimated cost although contractors would lose a pro...

In July 2017, HS2 Ltd let contracts with four joint venture companies for the main civil construction work on Phase 1. However, in 2020, once the cost of building the railway became clearer, it revised the terms of the contracts in an attempt to ensure an affordable programme at that time. Contractors would no longer be liable for cost increases above a fixed target price. Instead HS2 Ltd would be responsible for funding increases above the estimated cost although contractors would lose a proportion of their fee for building the railway if they did not meet performance indicators on cost and schedule.28 Type: conclusion | Number: 16 | Response status: not_addressed Government response: 3.1 The government disagrees with the Committee’s recommendation. 3.2 The department agrees with the substance of the recommendation but will require more time before it can update the Committee. HS2 Ltd has concluded the first phase of commercial renegotiations, however further work is still needed