Skanska and Costain win the Crossrail job with price 40% below lowest estimates.
A Costain-Skanska joint venture will build a new Crossrail station at Paddington for £150m rather than the £250m to £400m that Crossrail had expected it to pay.
The contract, awarded earlier this month, is the first of seven new underground stations. The Paddington station will act as an interchange between the mainline rail station and London Underground. However, statements from both Costain and Skanska today confirm the price is well below the £250m cost anticipated.
A list of Crossrail work packages in procurement on its website values the job at between £250m and £400m. The award comes amidst continuing concern in the industry over underbidding, and follows cheaper than expected prices for a number of major civils projects in recent months, including Crossrail’s running tunnel contracts.
The new station will be a 260m long, 25m wide and 23m deep underground box underneath Departures Road and Eastbourne Terrace. Construction work will start this year.
Andrew Wyllie, chief executive of Costain, said: “We are delighted to have secured our fourth Crossrail contract, reflecting our ability to consistently deliver valuable solutions in the rail sector utilising our broad range of capabilities and depth of expertise. We look forward to working with Crossrail to deliver this landmark station and to playing our part in enhancing London’s transport infrastructure.”