Laing O’Rourke legal battle over Newcastle hospital PFI job

Aaron Morby 4 years ago
Share

Laing O’Rourke Construction is locked in a legal battle with Newcastle-upon-Tyne Hospitals NHS Trust over the final phases of a major PFI building job.

The dispute centres around two clinical office buildings for the trust, which Laing argues were completed two years ago as part of the Royal Victoria Infirmary project.

They represent the last of an eight phase building programme carried out for PFI delivery consortium Healthcare Support (Newcastle), a joint venture between Equion and the Commonwealth Bank of Australia and Interserve.

But the trust argues that there is insufficient daylight in some offices, toilet areas are too small and the building could suffer from overheating.

It also claims some steelwork and high level windows in two bridges connecting the offices to the main hospital buildings were not shown in the drawings.

The row over meeting specifications has delayed issuing of a completion certificate and meant the offices have been left empty for two years.

Laing O’Rourke has now won a High Court ruling that the state of the office blocks should be considered by the independent tester.

The ruling said that a tester could agree completion if any of the alleged failures did not have a materially adverse effect on the enjoyment and use of the building by the trust, leaving the trust to seek its remedy in damages.

A Laing O’Rourke spokesperson said: “As this matter is the subject of legal action there is nothing we can say at this point in time.”

A Newcastle Hospitals NHS Foundation Trust spokesperson told website Chronicle Live: “Regrettably, a building – the Clinical Resource Centre, and what is intended to accommodate 860 key professional staff and is a fundamental component the phased re-development of the Royal Victoria Infirmary – does not satisfy basic standards, hence handover in mid 2012 could not happen.

“This is a PFI, therefore, the risks rest with others and not the NHS Foundation Trust.”

Latest news

Civils frameworks failing to deliver for contractors

CECA calls for reforms as frameworks promise more than they deliver
10 hours ago

Morrison wins contract for Aberdeen FC training ground

Funding secured for first phase of new £50m stadium complex
6 hours ago

Crown House Technologies southern boss resigns

Southern operation chief Steve Wignall leaves Laing O'Rourke M&E arm
10 hours ago

Government starts race for new £1.2bn modular framework

Crown Commercial Service expects framework to be used for £500m of school projects
8 hours ago

Clyde swing bridge gets thumbs up

184m-span swing bridge to spur Clyde Waterfront and Renfrew Riverside projects
10 hours ago

Countryside revenue tops £1bn as completions soar

Warrington offsite factory to cut home build times from 14 weeks to 10 Weeks
9 hours ago

Worker falls through ceiling on Croudace site

House builder fined after worker suffers multiple injuries
9 hours ago

£94m Coventry Station and precinct revamp approved

Work to start next year on new station concourse and multi-storey car park
10 hours ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
7 months ago

Forrest facing D-Day over company’s future

Decision on refinancing plan expected this week
1 day ago

Multiplex hires Laing O’Rourke commercial leader

Andy Butler joins Multiplex as technical director
1 day ago

Plans go in for tallest tower in the City of London

"Tulip" next to the Gherkin will let visitors ride down facade in glass gondolas
2 days ago

Byrne Group FD steps down

Daren Harris leaves firm after three years in post
1 day ago

£160m RAF contract win for Kier and VolkerFitzpatrick

Joint venture to make RAF Lakenheath ready for US Air Force F-35 Fighter Jets
2 days ago

Balfour Beatty on the hunt for highways subcontractors

Supplier engagement day in Crewe: Register now
2 days ago

Bid race starts for £435m HS2 Birmingham station

Four firms to be shortlisted to tender project in May
2 days ago

Mears buys Mitie housing upkeep arm for £35m

More than 1,000 Mitie Property Management staff to transfer to Mears
2 days ago

Expanding Weston Homes invests in logistics division

South east house builder on growth push as profits jump over 50% to £35m
2 days ago

Blu-3 bags enabling works for £1.1bn Stratford scheme

Firm to start £5m Stratford Waterfront utility works later this month
2 days ago
blu-3 (UK) Limited

Interserve fined after M&E blunders at animal lab

Court hears how inadequate maintenance posed potential risks from harmful biological agents
2 days ago

Plans in for 42-storey Ilford residential tower

Skanska on board to build landmark tower next to Ilford Crossrail station
2 days ago

Construction’s most considerate companies revealed

Full details now available of latest Considerate Constructors Scheme winners
2 days ago

Green light to redevelop Dragon’s Den into offices

L&G JV backs London warehouse studio redevelopment to offices
2 days ago

Union demands “toilet dignity” for construction workers

Unite threatens to name and shame guilty firms
2 days ago

Winners revealed of £22m fund for on-site training hubs

Full list of 26 winners for new initiative to train on live construction sites
5 days ago

Kier on track with debt reduction efforts

Kier chief says firm is chipping away at £410m debt mountain
5 days ago

Bouygues UK south east chief exits

Darren Gill leaves after 22 years at Bouygues Construction
5 days ago

Wates wins £82m London Haringey tower job

Work starts on developer Anthology's 32-storey Hale Works resi block
5 days ago

B&K tipped for £60m Nottingham HMRC hub

Developers seal forward funding for Unity Square scheme
6 days ago

Regal to build £55m Lords retirement homes block

Over 55s housing scheme will be build next to London cricket ground
6 days ago

Contractor services