Skanska has been awarded an additional GBP 24M, about SEK 320M, under its existing contract with National Highways towards works on a new 16-kilometer dual carriageway on the A428 road in the East of England. This will be included in the order bookings for Europe in the fourth quarter 2023.
The award relates primarily to increased costs caused by a legal challenge to the scheme. These costs relate to a delay to the start of construction and the associated impact of high inflation.
The total contract, now valued at GBP 679M, about SEK 9.0 billion, involves the design and construction of a new 16-kilometer dual carriageway between the Black Cat roundabout in Bedfordshire and Caxton Gibbet roundabout in Cambridgeshire. A number of junction improvements will be made, including a new three-tier junction at the Black Cat roundabout allowing free flowing traffic onto the A1 and the new carriageway.
The scheme will deliver significant benefits by preventing delays and increasing capacity along the route. It will also contribute to unlocking the potential for longer term economic growth in the wider Oxford-Milton Keynes-Cambridge areas which have been identified by the Government as a key national priority.
Skanska has received Notice to Proceed from National Highways, meaning that main construction can begin before the end of year. The scheme is due to open for traffic in 2027.
Source link:https://group.skanska.com/
