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Costain's HS2 work gets green light

The group's joint venture has been granted "notice to proceed" to the construction phase of its work on the high speed rail project
April 15, 2020

Costain’s (COST) joint venture with fellow contractors Skanska (STO:SKA-B) and Strabag (VIE:STR) has been granted “notice to proceed” on the full detailed design and construction of phase 1 of the southern section of HS2. The contract is worth £3.3bn to the joint venture and involves building the major tunnels approaching the London terminus at Euston station.

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The work is already included in Costain’s £4.2bn order book but this news marks the shift to the construction phase. Current activity has been paused in light of the Covid-19 crisis and the delayed start means the contract will not significantly contribute to profit until 2021.