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CH2M loses £44M US contract following takeover

boston green line

CH2M has been removed from a £44M project management contract in the United States, to avoid any potential conflict of interest following its acquisition by Jacobs. Jacobs is part of a joint venture bidding for the same project’s £1bn design and build deal.

In May the Massachusetts Bay Transportation Authority (MBTA) awarded CH2M the £44M (US$57M) contract to provide programme management/construction management services for the Green Line Extension Project. The project in Greater Boston is to extend the MBTA Green Line light rail beyond its current northern terminus at Lechmere Station in Cambridge, Massachusetts

The CH2M contract has now been terminated.

A spokesperson for the Massachusetts Bay Transportation Authority said: “Jacobs Engineering, which is part of one of the teams competing for the GLX design-build contract, acquired CH2M. To avoid the potential for a conflict of interest, the contract with CH2M was terminated earlier this month. CH2M understood why this action needed to be taken.

“There are no implications for the overall project schedule. During the competitive procurement process, the MBTA received two qualified proposals – one from CH2M Hill and one from HAKS Engineering. The MBTA is negotiating with HAKS to fill the void.”

CH2M declined to respond.

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