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.