Following investigations into “compliance issues”, BAM Nuttall has removed Danny Sullivan Group as a labour supplier for HS2’s infamous £100m bat tunnel
The Danny Sullivan Group (DSG) was originally contracted to supply labour for the construction of the 1km-long mesh structure that would protect bats in the nearby woods.
However, following a statement from BAM stating “compliance issues have been identified”, their contract has been terminated.
BAM will now continue with another contractor
The termination comes as the latest result of an investigation launched by HS2 into their subcontractors regarding alleged fraud among their construction staff.
The Danny Sullivan Group was then suspended from creating new contracts until the end of the investigation.
At the time, an HS2 statement said: “We treat all whistleblower allegations seriously and are continuing to conduct our own investigation.
“Furthermore, HS2 Ltd has formally reported the allegations to HMRC, and we encourage anyone who believes they may have relevant information, which could support our enquiries, to report it in confidence via HS2’s Speak Out channels.”
Balfour Beatty terminated its contract with DSG following an investigation into overinflated rates
Balfour Beatty also contracted the group to work on their 90km section of HS2; however, that contract was terminated earlier this month due to misinformation regarding the provision of Construction Industry Scheme workers versus PAYE employees.
The Danny Sullivan Group responded to the incident at the time: “After extensive discussions on our commercial arrangements and contractual terms, Danny Sullivan and Sons will cease its provision of skilled trades and labour to Balfour Beatty.
“This decision follows the completion of a review, commissioned by Danny Sullivan and Sons, into the erroneous engagement of a number of Construction Industry Scheme (CIS) workforce operatives. Throughout this review process, no evidence of deliberate wrongdoing involving any employees of our business was identified.
“Individuals affected by this decision will continue to work with Balfour Beatty, and we are working to mitigate the impact with minimal interruption.
“Our externally-led review was carried out in conjunction with significant investment in enhancements and transformation to the company’s processes, technology and culture, supporting our ongoing and future partnerships with long-standing clients who trust us to deliver projects at the heart of UK infrastructure.
“Our work continues across UK infrastructure projects, and we are proud to be operating at a size and scale not seen before in our business with a renewed focus on the highest standards of governance alongside significant operational improvements.”
Controversial bat tunnel
The controversy over the bat tunnel, designed to keep Bechstein’s bats, found in Buckinghamshire, safe, was one of the key aspects causing the Public Accounts Committee to call for a ‘fundamental reset’ of HS2 Ltd.
Bechstein’s bats are one of the rarer bat species in the UK, and by law, they must be protected. The tunnel will be up to 10m high in some places, and around 1km long.
The tunnel has been controversially labelled as a waste of money and time by politicians, as it reportedly will bring the cost of that stretch of track to £100m.
At the time, Sir Geoffrey Clifton-Brown MP, chair of the Public Accounts Committee, said: “Our Committee has not made recommendations in our report on delivering better outcomes for HS2’s future passengers. We are long past that point.
“It is time to deal with HS2 as what it is – a cautionary tale that should be studied by future governments in how not to run a major project. We are sceptical of Government’s ability to successfully deliver even a curtailed scheme, one which we already know will on its face bring very poor value for money.
“The question has instead become: what possible benefit can the Government now salvage for the taxpayer, from a mess that presents real risks to the UK’s overall reputation?”
