The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Concerns Raised for Bouygues and Equans HS2 Bid

Concerns Raised for Bouygues and Equans HS2 Bid
20 July 2022
 

Bids from Bouygues and EQUANS for overhead power cable contract work for HS2 could constitute a breach of competition law.

The Bouygues buyout of Engie’s FM business, EQUANS, was announced in November 2021. However, both businesses are currently competing to supply HS2 with services to install and maintain overhead power cables, otherwise known as Overhead Catenary Systems (OCS).

The Competition and Markets Authority (CMA) stated that Bouygues and EQUANS are two of a ”smaller number of bidders in the final stages competing for the contract”, and therefore they are concerned that this may make the remainder of the tender process less competitive.

This reduction in competition could result in a higher-cost final contract.

Colin Raftery, Senior Director at the CMA, said: “The HS2 tender for overhead catenary systems is at an advanced stage, but the remaining bidders are continuing to compete on the final aspects of the contract. It’s important to ensure that this process isn’t undermined, as this could result in unnecessary additional costs, ultimately leaving taxpayers worse off."

This is the only contract in recent years for the supply of catenary systems to high-speed railways in the UK and is worth an estimated £300 million.

The firms now have five days to submit proposals to address the CMA’s competition concerns. The CMA then has a further five days to consider whether to accept any offer. They may refer the case for an in-depth Phase 2 investigation.

Picture: an image showing an artist’s impression of an HS2 train at a platform. Image Credit HS2

Article written by Ella Tansley | Published 20 July 2022

Share



Related Articles

Bouygues and Equans Offer Proposals to Address CMA’s HS2 Contract Concerns

In the latest update of the Competition and Markets Authority’s enquiry into a possible breach of competition law by the merger of Bouygues and EQUANS, the two...

 Read Full Article
10 Construction Firms Involved in Contract Bid Rigging

The Competition and Markets Authority has provisionally found that ten construction companies have been involved in “illegal cartel agreements” when...

 Read Full Article
Smart Local Energy System for Staffordshire Town Awarded Funding

A new project called Zero Carbon Rugeley has been given extra funding to progress the detailed design of a smart local energy system. EQUANS has secured extended...

 Read Full Article
Bouygues Submits Offer for Engie’s Equans

Bouygues has submitted a binding offer to acquire Engie's facilities management and technical services arm, Equans. Reuters estimates the deal is worth 5-6 billion...

 Read Full Article
Engie Rebrands FM Arm to Equans

Engie's facilities management and technical services will fall under the new EQUANS brand. EQUANS will operate as an autonomous subsidiary of Engie,...

 Read Full Article
Engie Gets Crown Posting

Engie has been named as a supplier on Lot 6 of the new Crown Commercial Service RM6017 Postal Goods, Services and Solutions framework. This provides the public...

 Read Full Article
Delivering Great FM Services Relies on Successful Mobilisation

The success of FM services is all in the mobilisation phase, where the partnership between the service provider and customer sets the tone for the future, says Densrienne...

 Read Full Article
A Quarter of UK Construction Companies Have Experienced Fraud Over the Last Year

A survey report on fraud in the construction industry reveals the most common experiences and negative impacts on businesses in the UK. Data collected from the Fraud...

 Read Full Article
Spotlight Interview – Helen Carter | Action Sustainability – Modern Slavery in FM

Modern slavery and forced labour have a huge presence within facilities management, its supply chain and the wider built environment. ThisWeekinFM spoke to Helen...

 Read Full Article
Bouygues Wins Total FM Contract With JCDecaux

Bouygues Energies & Services has announced a new partnership with JCDecaux UK, the world's largest outdoor advertising company. The contract includes the...

 Read Full Article