Carillion cracked hospital beams remedial work unfinished

Aaron Morby 3 months ago
Share

Watchdog MPs probing into the collapse of Carillion have revealed remedial work to cracked beams at the Royal Liverpool Hospital still needs to be completed.

Problems were first uncovered with major structural beams at the Royal Liverpool Hospital in November 2016

A bombshell letter from the Hospital Company (Liverpool) was published as MPs grilled the pension regulator and Carillion auditors about the events leading to the group’s collapse.

It discloses that Carillion knew about major structural defects on the new PFI hospital as far back as November 2016, nine months before the July £845m writedown.

During questioning works and pension committee MPs revealed they had been contacted by a whistleblower with evidence that invoices were being bunched and delayed for payment until after annual reporting deadlines.

MPs also noted that the Guardian newspaper had published claims from a former director that Carillion was in serious financial difficulty by the middle of 2016, but major problems were not being disclosed.

During sometimes blistering questioning, KMPG auditor Peter Meehan repeatedly confirmed the auditors had no knowledge of the full extent of Carillion’s problems at the time the 2016 accounts were signed off in February 2017, four months before the writedown.

KPMG also audited The Hospital Company accounts.

The head of the pension regulator also admitted it needed to be “clearer and quicker and tougher” when dealing with firms failing to plug pension funding gaps.

The letter from the director of the hospital reveals that work still needs to be completed on two of the eight beams found to require strengthening.

All work on the hospital is now on hold, following Carillion’s collapse, while negotiations are underway to restart the job.

The director states that the costs of the defects are currently being borne by the beam designers, while liability is established.

Carillion group firm TPS Consult has overall responsibility for the structural design of the works.

The letter adds that design and installation of the relevant floor plates and integral beams was subcontracted to Heyrod Construction, which in turn subcontracted aspects of the structural design work to Freyssinet.

Frank Field MP, Chair of the Commons Work and Pensions Committee, said: “These famous beams are becoming an ever more perfect parable for the whole company.

“The cracks were visible long before the directors or auditors admit, and while they were dutifully added to the litany of factors and organisations to blame for Carillion’s spectacular demise – anyone and anything but the people running it – they were only ever holding up one part of one of Carillion’s thousands of projects.”

Latest news

Flooring specialist Polydeck Group in administration

Firm was locked in a long-running payment row with Balfour Beatty
2 days ago

Mace on board for £100m Olympia revamp

Exhibition centre will remain open during major refurbishment programme
3 days ago

Construction green light for delayed £135m bypass

Work on the Caernarfon and Bontnewydd bypass to start in November
3 days ago

Plans lodged for over 1,300 Lincoln Uni student rooms

Student complex to kick start £150m St Marks scheme
3 days ago

Fleeing tax cheats grounded over £1m phantom homes scam

HMRC officers catch construction con artists hiding in a Benidorm villa
3 days ago

United Utilities starts £800m network maintenance race

Shortlisted firms to be invited in July to bid for six-year framework
3 days ago

Network Rail renews cost consultant team

Currie and Brown, Motts, Gleeds, Arcadis, T+T and Corderoy win cost planning places
3 days ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
4 weeks ago

KeolisAmey JV wins £5bn Welsh rail franchise

Joint venture will deliver £700m south wales Metro electrification project
4 days ago

Retractable pitch tested at Spurs stadium site

Huge pitch trays and touchline hydraulics in action for the first time
4 days ago

Builders named for £1.5bn Scottish social housing panel

Robertson, ENGIE, Bancon and Hadden take top honours
4 days ago

Bovis Homes fends off shareholder revolt over pay

Shareholders voted 38% against remuneration report at agm
4 days ago

Site safety shambles at care home extension

Residents put at fire risk from timber frame scheme. Main contractor now in liquidation
4 days ago

Wates wins £23m contract with London’s Brent Council

Work to start on Knowles House redevelopment in Harlesden
4 days ago

Speller Metcalfe wins £18m Coventry Uni job

Speller to start next month on former hospital site at Gulson Road
4 days ago

GPE to start trio of projects despite London caution

All three projects located next to Crossrail stations
5 days ago

Government slammed for not spotting Carillion was in trouble

Carillion bosses talked officials out of highest risk rating
5 days ago

Bouygues tipped for £135m Cardiff innovation campus

Cardiff University close to selecting firm after Kier moved on after pre-construction
5 days ago

Dandara plans 340-flat Bristol build to rent project

Bedminster plan includes a podium and tower at St Catherine's Place
5 days ago

Morrison agrees £59m price for East Ayrshire school complex

New Cumnock school complex incorporates three primary schools and two academies
5 days ago

Welsh towers get cash to replace Grenfell style cladding

Trio of Newport resi blocks get £3m of government funding to remove ACM panels
5 days ago

WSP raids CH2M and Atkins for infrastructure hires

WSP boosts local government transport arm
5 days ago

Galliford Try starts £47m Solihull retirement village

Contractor starts eleventh scheme for ExtraCare Charitable Trust
5 days ago

Sisk confirms next £96m office at Manchester Circle Square

Total orders at Manchester city centre scheme reach £240m
5 days ago

Galliford Try expects further hit from Aberdeen Bypass

Bad weather earlier this year drives up finishing costs on delayed Scottish road
6 days ago

Green light for Manchester’s Old Granada studio revamp

Work to start on studio revamp and new hotel in June
6 days ago

Renew counts cost of gas contracting exit

Renew expects the year ahead to show show growth after acquisition of rail contractor QTS
6 days ago

Drones to move construction materials around sites

Future gazer also predicts floating buildings and 3D printing solving the housing crisis
6 days ago

Forterra to boost brick production with new £95m plant

Materials giant to double capacity at Desford site
6 days ago

Watkin Jones has £900m of student schemes in pipeline

Sector still booming as contractor also continues expansion in build to rent market
6 days ago

Contractor services