Swedish authority and contractor clash over West Link work termination

A tram rides through the streets of Gothenburg, Sweden. (Image: Adobe Stock)

The authority claims that the contractor mismanaged works, which increased costs up by nearly 400%.

NCC, through the West Link Contractors (WLC) consortium – which also includes Wayss & Freytag Ingenieurbau – rejected the allegations and said the decision is without legal basis.

The West Link rail project

The West Link (Västlänken) is one of Sweden’s largest infrastructure investments, designed as an 8km commuter rail tunnel beneath central Gothenburg with three new underground stations, including Korsvägen.

Aimed at easing congestion and improving regional mobility, the project carries an estimated total cost of about SEK 49 billion (US$5.2 billion).

Korsvägen is among the most technically complex segments, situated at a busy transport hub that links trams, buses and road traffic.

Trafikverket’s argument

Trafikverket said WLC systematically failed to meet its obligations, citing serious deficiencies in financial control and contract management.

It claimed the consortium favoured ‘related’ companies in procurement decisions, leading to spiralling costs.

The authority estimated that the phase has run nearly 400% over expected costs, revising the overall project prognosis upward and seeking repayment of about SEK 7.5 billion ($801 million).

Trafikverket stressed it repeatedly asked WLC to respond to findings over several years but lost confidence in the contractor’s ability to deliver.

NCC’s response

NCC and its partners rejected the allegations, calling the termination an attempt by Trafikverket to shift blame for delays and overruns of its own making.

“This is a highly regrettable decision that will increase the final cost and result in major delays to the West Link project,” said Kenneth Nilsson, Head of NCC Infrastructure.

He added that the authority gave the consortium fewer than eight days to respond to claims it had long been aware of, denying WLC a fair process.

NCC argued it has worked to secure completion by 2030 while seeking agreement with Trafikverket on how to address cost increases and delays.

Construction perspective

The dispute underscores the risks of large-scale partnering models in complex urban infrastructure.

Contract termination at this stage leaves open questions over how quickly another contractor can be engaged, the size of potential compensation claims, and how much additional cost and time will ultimately fall on taxpayers.

With Gothenburg commuters awaiting a project intended to improve regional mobility, the construction industry should watch closely how Sweden’s largest infrastructure client and one of its leading contractors resolve the impasse.