Joint venture between Laing O’Rourke and Spain’s Ferrovial sees off three other rival teams

Northern Line

A joint venture between contractors Laing O’Rourke and Ferrovial has been named as the preferred bidder to build the £600m Northern Line extension.

The joint venture saw off competition from three teams comprising Costain and Sir Robert McAlpine; Balfour Beatty and Bam; and Bechtel and Austrian firm Strabag to take the job.

A Transport for London spokesperson said: “Following negotiations with the two remaining bidders for the Northern Line extension design and build contract, London Underground has selected Ferrovial Agroman Laing O’Rourke Joint Venture as the preferred bidder.

“Other tenderers have been notified and should we fail to reach agreement with the preferred bidder London Underground may reopen negotiations with those who have been stood down.

The mega project will involve construction of two new stations at Battersea and Nine Elms, tunnelling and track work, installation of lifts and escalators, power supply and station fit out work; and design and build of the required civil engineering.

The project has already qualified for a funding guarantee under the government’s £40bn UK guarantees scheme.

The contract for the job is set to be signed in late August this year and construction is due to start in spring 2015.

The shortlisted bidders for the project were:

  • a consortium of Laing O’Rourke and Spanish contractor Ferrovial;
  • a joint venture between Costain and Sir Robert McAlpine;
  • a Balfour Beatty and Bam consortium;
  • and a consortium of Bechtel and Austrian firm Strabag