Question
To ask the Secretary of State for Transport, with reference to his Written Statement of 17 July 2017, on HS2 update, HCWS49, how the estimate of 7,000 further contract opportunities was calculated.
Answer
The estimate is based upon data from Crossrail, which sampled the construction supply chain from tier 1 to tier 5 to assess and map the economic impact of tier 1 contract spend. The results suggest every 10 tier 1 contracts give rise to a further 10,000 contract opportunities through the supply chain.
This is because of the multiplier effect generated through the tiers of the supply chain as contracts are awarded. As a programme of relatable scope and scale, HS2 Ltd has used this calculation to estimate that the seven MWCC contracts will give rise to 7,000 opportunities through the supply chain.