Seven major contracts to deliver bridges, tunnels and earthworks for the High Speed 2 project from London to Birmingham are now up for grabs, Chancellor George Osborne has announced.

Pre-qualification for £11.8Bn worth of works has begun, following which successful applicants will be invited to bid for a maximum of four packages at tender stage. Up to two contracts can be awarded to any one tenderer.

Mr Osborne announced the start of the bidding process last week while on a tour of China. He is encouraging Chinese and international firms to engage with UK industry and establish potential partnerships to join up on bids for HS2 contracts.

Transport Secretary Patrick McLoughlin said: “HS2 provides an excellent opportunity for businesses across the UK with 25,000 jobs created during construction and 3000 when up and running. The start of the procurement process for these significant contracts is a major step towards construction on HS2 getting under way in two years’ time.”

Civil Engineering Contractors Association chief executive Alasdair Reisner described the announcement as “the culmination of a long push by industry to improve the way we manage our vital infrastructure, through visibility of investment and workload”.

“This long term certainty allows investment in skills, equipment and innovation, reducing delivery costs and making savings for the taxpayer,” he added.

Association for Consultancy & Engineering chief executive Dr Nelson Ogunshakin said: “This is welcome news for the entire construction sector and the UK as a whole, and we applaud the Government’s continued strong commitment to this vital project.”

But he added that the Chancellor, “in his rush to secure foreign investment, risks undermining the ability of UK firms to benefit from the work”.

“We must ensure that UK engineering companies do not miss out on what would be an outstanding opportunity to develop the skills of its workforce, increase their expertise, and export what they have learned to the global market,” he said.

A second package of contracts for stations will be launched in 2016, to be followed by a third for railway systems in 2017. Construction works will commence following Royal Assent of the Phase 1 Hybrid Bill, which is currently going through Parliament.

Image courtesy of Capita