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Andrew Palmer
Business Editor
8:08 PM 23rd November 2020
business

Yorkshire Businesses Invited To Tender For £12bn Worth of HS2 Contracts

HS2 CEO Mark Thurston visits Soil Engineering in Leeds, guided by MD Tristan Llewellyn, to see the work they undertake to survey the rail route
HS2 CEO Mark Thurston visits Soil Engineering in Leeds, guided by MD Tristan Llewellyn, to see the work they undertake to survey the rail route
HS2 Ltd, the company delivering Britain’s new high speed railway, was launched (23rd November) kicking off a four-day virtual event that will showcase many of the £12bn worth of contract opportunities that businesses from across the UK can find out how to prepare and start bidding for.

The event will give businesses, across hundreds of sectors, a crucial insight into how they can become part of HS2’s rapidly growing supply chain, which already includes over 2,000 businesses.
Following the Prime Minister announcing the start of construction on the London-Birmingham route, HS2 has released £12bn worth of supply chain contracts to be let over the next 18 months
Over 150 Yorkshire-based businesses have registered for HS2’s virtual event to find out more about the plethora of contract opportunities available

“This event will unlock billions of pounds worth of new contract opportunities on HS2, providing thousands of businesses and their employees with guaranteed incomes..."

114 companies in Yorkshire and Humber have delivered work on HS2 so far and over 150 have registered to attend this week’s virtual ‘Meet the Contractor’ event in the hope that they too will benefit from future contract awards.

Over the four-day programme, delegates will hear about the estimated 400,000 supply chain opportunities that will emerge over the next 18 months, and how they can get ‘HS2 ready’.

The event is being delivered in partnership with HS2’s four main works construction partners (Balfour Beatty VINCI (BBV)); Eiffage, Kier, Ferrovial, BAM Nutall (EKFB)); Align and Skanska Costain STRABAG (SCS)) and two stations contractors (Balfour Beatty/VINCI/SYSTRA and Mace/Dragados), who between them will unlock thousands of individual work packages which range in size and value between £5,000 and £200m.

The potential contracts represent a huge boost for British businesses seeking security and growth amidst the economic uncertainty arising from the Coronavirus pandemic. HS2 has so far awarded 98% of its current contracts to UK-based businesses; 70% of which have gone to SMEs, and it aims to continue that positive trend through direct engagement with suppliers and local business during the Meet the Contractor event.

Supply chain company 3Squared in Sheffield July 2019.Photo:3Squared
Supply chain company 3Squared in Sheffield July 2019.Photo:3Squared
The £12bn boost reflects the scale of progress to date in delivering HS2’s Phase One programme between London and Birmingham, as work on the tunnels, viaducts and station foundations along the 140-mile route gathers pace.

Mark Thurston, HS2 Ltd’s CEO said: “The Government has said that construction must continue during the lockdown, and for HS2 that means continuing to bring more and more companies onto the project, creating thousands of jobs across Britain.

“This event will unlock billions of pounds worth of new contract opportunities on HS2, providing thousands of businesses and their employees with guaranteed incomes, and helping the country’s economic recovery in these uncertain times.”

Leeds-based Soil Engineering Geoservices Ltd and Sheffield-based 3Squared are among the 114 Yorkshire firms already delivering work on HS2.

Soil Engineering Geoservices Ltd have been investigating ground conditions for the railway between Birmingham and London for the past five years, and Managing Director Tristan Llewellyn, credits their HS2 contract awards with enabling long-term expansion of the business.

Mr Llewellyn said: “Soil Engineering have secured significant revenue during our 5 years on the HS2 supply chain and are now undertaking works for several of HS2’s main works contractors. This continued association with the project has facilitated continued company growth and development throughout the period across the UK, and significantly at our main operating base in Leeds.

“With HS2-related revenue now in excess of £40M over the lifetime of the project there has been a considerable benefit to our organisation and to our key suppliers and the continuity of work throughout the period has given us the confidence to expand our capacity for future related works.”

CREDIT: hs2
CREDIT: hs2
Railway Technology firm 3Squared were awarded a three-year contract with HS2’s main works construction partner SCS earlier this year. They are supplying their RailSmart software, alongside bespoke modules, to form a supply chain management system, which gives visibility of the complex freight supply chain, and provides live performance, cost management information and operational control data in real-time. Its HS2 contract award has led to the creation of new jobs within the business.

Tim Jones, co-founder and Managing Director of 3Squared, said: “We are delighted to play a part in the construction of HS2 and we are looking forward to being part of the supply chain event this week. We have benefitted from our relationships with the HS2 supply chain and encourage other SMEs to engage to find out more about the opportunities available.

“The capabilities of our RailSmart platform combined with new and tailored BulkSmart enhancements, which have been developed specifically to help manage the supply chain will provide significant benefits to the project and deliver a solution that could also be of benefit to the other phases of HS2, all major infrastructure projects and anyone moving bulk materials by rail.”