Costain removed from £1.3bn A66 upgrade as DfT disbands unit set up to fast track the project

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The A66 upgrade will see the single-lane sections of the 80km stretch between the M6 and A1 made into a dual carriageway, while key junctions will be improved. It was to be delivered in collaboration by four tier 1 contractors: Balfour Beatty, Kier, Keltbray and Costain. This was intended to speed up the project, slashing the delivery time from 10 years down to five.

It was intended to be a trailblazer example of the government’s Project Speed initiative, which would see major infrastructure projects timescales slashed through greater collaboration and more use of modular and offsite construction and design processes. However, The Times recently reported that the Acceleration Unit created in 2020 to handle this process was disbanded at the end of March.

Despite these setbacks, National Highways is still targeting a five-year timeframe for the works.

There has not yet been a decision made on who will take over Costain’s section of the project. The contractor will continue to work on the A66 for a short transition period until the agreement with a future supplier – potentially one or more of the other contractors on the job – has been finalised.

The project is currently in pre-construction phase, with RSK carrying out surveys across the entirety of the route.

A Costain spokesperson said: “We’ve been holding regular meetings with National Highways about the A66 scheme. As a result of those meetings, we’ve both agreed to a change in contracting strategy which will see Costain’s involvement in the development phase of the A66 come to an organised and managed end. We will continue to bring our innovation and expertise to other critically important National Highways projects.”

A National Highways spokesperson said: “National Highways and Costain have agreed to a change in contracting strategy, which will see Costain’s involvement on the A66 come to an organised and managed end. We would like to thank Costain for their work during the development phase of one of our most significant and complex projects.”

National Highways’ development consent order (DCO) application for the A66 Trans-Pennine project is currently under consideration by the Planning Inspectorate. Two suggested changes to the application were recently rejected for fear of increasing flood risk in the area.

The Planning Inspectorate will make its recommendation to the secretary of state by 29 August. The secretary of state will then have three months to make the final decision on whether to grant the DCO. If approved, main works will start in the new year.

The DfT has been contacted for comment about the disbandment of the Acceleration Unit.

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