Costain’s major M62 upgrade axed over soaring costs

Aaron Morby 2 years ago
Share

National Highways has scrapped Costain’s major project to install concrete central reserve barriers on the M62 across the Pennines on the eve of main works starting.

The M62 J20-25 project between Rochdale and Brighouse was originally conceived as a smart motorway scheme but had already been down-sized to a central reserve upgrade.

Now the projected cost of the 19-mile central reserve upgrade has soared so high that National Highways has axed the scheme.

It will now syphon off allocated funding for the M62 to top up the M1 J10-13 planned motorway scheme which is also forecast to exceed the original budget and had struggled to get final sign-off.

Costain recently completed works on a big works compound for the M62 job and will have to demobilise its team.

National Highways said it would work hard to explore opportunities for transfer of colleagues on to other schemes, as well as develop next steps for planned, closure and handover of the scheme and assets.

National Highways managing director of the Smart Motorway Alliance Tony Slater told firms that extensive forecasting exercises for the M62 J20-25 scheme projected the full scope cost would be 60% above the available budget.

Slater said that even after trying cuts to scope, Costain’s projected cost would be 10% above the available budget.

He said: “Frustration will be felt most profoundly by everyone who has been working hard on the M62 J20-25 scheme.

“The decision to stop work this scheme is hugely challenging to me, our Alliance members and our suppliers, and it is a decision we have tried very hard to avoid.”

Slater said he acknowledged there were still challenges to overcome on other projects including the M6 J5-8, M6 J8-10a and M42 J4-7 dynamic hard shoulder schemes.

He said: “These challenges are still being discussed and actively worked through – a further review of M6 J8-10a and M42 J4-7 schemes will be conducted as soon as we have finalised discussions, no later than September.”

The decision is another blow to Smart Motorway Alliance firms who late last month saw the Government confirm the paused Smart Motorway Programme would be abandoned after a 16-month long safety review.

Eleven projects already paused and three more earmarked for construction during the third Road Investment Strategy (2025 to 2030) were removed from government road-building plans.

 

Latest news

Ridge buys rival consultant Jubb

Acquisition will see 100 new staff join Ridge
5 hours ago

Enabling works to start £130m Huyton town centre regen

Phase one includes a new council HQ, hotel and 72 flats
5 hours ago

Grainger build to rent pipeline rises to £1.4bn

Rental specialist buys sites in Sheffield and Cardiff to build 600 rental homes
5 hours ago

Kier wins Cambridgeshire County council estate upkeep

Firm will provide building and M&E services to 106 buildings across the county
5 hours ago

Louvres and solar shading specialist files for administration

Hampshire based ALPS lodges court notice after 25 years in business
6 hours ago

Speedy Hire posts a loss in latest results

Hire giant confident of better performance in next six months
6 hours ago

Esh to lead next phase of Riverside Sunderland regeneration

Infrastructure work will allow further development of Sheepfolds area
5 hours ago

Green light for £1.3bn Edinburgh coastal town revamp

First phase of Granton Waterfront scheme will see Cruden Homes create a new community
22 hours ago

Vistry chief operating officer steps down

Earl Sibley exits as his COO role axed for more direct reporting to CEO
1 day ago

House builder Camstead goes into administration

Work stopped on three current sites
2 days ago

Death of piling legend Roger Bullivant

Industry innovator dies after long illness aged 85
1 day ago

ESS Modular went down owing suppliers £7m

Modular specialist owned by ISG owner Cathexis
1 day ago

Builders back farmers in inheritance tax protest

"A rethink is desperately needed" say National Federation of Builders
1 day ago

Willmott Dixon wins £36m leisure centre upgrade

Work to start on historic Westminster 1930s Grade II listed Seymour Centre
1 day ago

Graham wins £100m Cardiff Crossrail phase 1

Work on route to Cardiff Bay to start before end of next year
2 days ago

Laing O’Rourke appoints new European MD

Peter Lyons to take-up new role in February
3 days ago

Profits dip at Stepnell ahead of demerger

Turnover and secured workloads up ahead of restructure
3 days ago

HS2 green bridge deck takes shape

100m-wide wildlife bridge to carry hedgerows and country lane over HS2
2 days ago

1,000-home Wolverhampton city centre scheme in for planning

ECF and council advance City Centre West build to rent scheme
3 days ago

Sisk clinches £54m North London council HQ revamp

Haringey's iconic Grade II listed civic centre to be brought back into use
3 days ago

Ofgem approves £2.5bn Eastern Green Link 1

Work to start next Spring on cable project from Scotland to the north of England
3 days ago

Anglian Water hunts for £1bn delivery partner

Programme delivery partner wil integrate with client team over 15-year plan
3 days ago

Hadden collapse costs supply chain £6.7m

"Highly unlikely" subcontractors will receive anything for their unpaid invoices
3 days ago

Management buyout at M&E specialist

£25m turnover Kimpton in second MBO in its 60-year history
3 days ago

BAM finalises £71m deal to replace first major RAAC school

Work to start on new St Leonards Catholic School in Durham
3 days ago

Scaffolder hit by two tonne weight at nuclear plant

Court hands out £633,000 in fines after Dungeness B decommissioning incident
3 days ago

Go-ahead for 860,000 sq ft East London medical campus

Whitechapel Road scheme of six new and repurposed buildings
3 days ago

Site labour rates hit record high as cost inflation returns

Industry's biggest payroll firm says rates rose nearly 5% last month in London
6 days ago

Morris & Spottiswood acquires part of ISG fit-out division

ISG Cathedral acquisition saves 111 jobs and expands presence across England
7 days ago

New work drives Q3 construction output uplift

Third quarter activity up 0.8% despite slowdown in September
6 days ago

Contractor services