High Speed 2 Ltd (HS2) carried out additional due diligence on Carillion as part of its decision to award two of the main civils contracts to the CEK joint venture.
More from: £6.6bn HS2 contracts awarded
The CEK joint venture – compromising Carillion Construction, Eiffage Genie Civil, Kier Infrastructure and Overseas – won two contracts in the £6.6bn awards announced today for the main civils works for phase one of HS2.
It won C2 – North Portal Chiltern Tunnels to Brackley – which is worth £724M.
The second contract awarded was C3 – Brackley to South Portal of Long Itchington Wood Green Tunnel – £616M.
The extra checks were carried out in the light of last week’s profit warning from Carillion, which included an £845M write down and the news that its chief executive was departing.
An HS2 spokesperson was keen to point out that the contract wasn’t just awarded to Carillion, but the joint venture as a whole.
HS2 Ltd said: “Obviously in the light of last Monday’s announcement by Carillion, HS2 has carried out additional due diligence and sought re-assurance of both it and its two partners in the joint venture - Kier and Eiffage - that they remained committed and able to deliver the contract. Each company’s boards have both given that assurance and confirmed that they underwrite the performance of each other in delivering the contract. And that is the key point. HS2, of course, will continue to monitor the situation.”