We challenged HS2 Ltd on the feasibility of renegotiating existing contacts to deliver significant cost savings given the lack of incentives for the contractors to change terms. It told us that all major contractors have expressed willingness to discuss and work through a renegotiation as there was recognition from the private sector that better alignment of incentives between the taxpayer and the delivery of the works was necessary to reduce long–term risk. HS2 Ltd also emphasised that the m...

We challenged HS2 Ltd on the feasibility of renegotiating existing contacts to deliver significant cost savings given the lack of incentives for the contractors to change terms. It told us that all major contractors have expressed willingness to discuss and work through a renegotiation as there was recognition from the private sector that better alignment of incentives between the taxpayer and the delivery of the works was necessary to reduce long–term risk. HS2 Ltd also emphasised that the major contractors would want to work on future rail and wider government infrastructure programmes and so would want to help successfully deliver HS2.34 Type: conclusion | Number: 20 | 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, h