UK government lets £10 bn of new NEC works and services
UK government entities High Speed Two (HS2) and Crown Commercial Services (CCS) have recently let over £10 billion of new works and services under NEC contracts.
Following royal assent for the first phase of the UK’s £55.7 billion second high-speed rail project in February this year, UK government-funded company HS2 Limited signed the main civils contracts on 1 August 2017.
Worth £6.6 billion, all seven contracts were let under an NEC3 Engineering and Construction Contract Option C (target contract with activity schedule).
Winning HS2 contractors
Going north from Euston, SCS JV – consisting of Skanska, Costain and Strabag – won the Euston and Northholt tunnels section worth £1.8 billion.
Align JV of Bouygues, VolkerFitzpatrick and Sir Robert McAlpine secured the Colne Valley viaduct and Chiltern tunnels, worth £1.1 billion, with CEK JV of Carillion, Eiffage and Kier delivering the overland route to just south of Leamington Spa, worth £1.2 billion.
BBV JV – consisting of Balfour Beatty and Vinci – has the remaining £2.5 billion part of the route to north of Birmingham. Construction is due to start at the end of 2018 following a 16-month detailed-design stage.
Other HS2 contracts
In March 2016 a joint venture of CH2M, Atkins and Sener was appointed as phase one engineering delivery partner under a 10-year NEC3 Professional Service Contract (PSC) framework worth up to £350 million (see Issue 79).
Enabling contracts worth £900 million were let to three consortia in November 2016 under ECC Option F (management contract), while an NEC3 Engineering and Construction Short Contract (ECSC) for supplying seven million trees was let in December 2016.
PSC design contracts worth £520 million for phase 2 were let in February 2017 and invitations to tender for PSC contracts for four phase-one station designs were sent out in April.
Public sector framework
In May this year, UK government agency Crown Commercial Services announced the winning 32 consultancy firms for a two-year, £2.9 billion framework for project management and full design team services.
The framework, which gives public-sector clients the choice of PSC or CCS’s own form, is designed to make it easier and more cost-effective to procure project management and design services for construction projects.
Other CCS frameworks include the £4.1 billion TSC-based facilities management framework, which runs until 2019 (Issue 71) and a £750 million traffic management technology framework, which uses ECC, PSC, TSC and the NEC3 Supply Contract.
HS2 awards final NEC station contract on first phase from London to Birmingham
HS2, currently the world’s largest NEC-procured project to date, has let the last of four new high-speed railway stations on the £45 billion first section between London and Birmingham.
How NEC contracts can help us to achieve net zero carbon emissions
Recent record-breaking temperatures in the UK and across the world have reminded us, yet again, of the impact of climate change on our ability to function as a society and economy.
NEC adopted for £2.8 billion of reconstruction works in Peru
NEC contracts are being used to procure £2.8 billion of infrastructure reconstruction in Peru following significant flood and landslide damage caused during the 2017 El Niño climate oscillation.