Carillion cracked hospital beams remedial work unfinished

Aaron Morby 8 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

Forecasters cancel 2019 construction rebound as orders fall

2019 construction growth forecast downgraded from 2.6% to just 0.6%
4 hours ago

Galliard Homes plans £500m Birmingham push

Housebuilder links-up with developer Apsley House Capital to build "London-style" apartments
3 hours ago

Balfour confirmed for £85m London student scheme

Vine Street scheme will deliver 654 student beds across a 14 storey building
4 hours ago

CEG submits plan for £79m Manchester resi scheme

21-storey mansion block planned next to Arndale Centre
3 hours ago

£490m eastern area highways upkeep out to bid

Combined area 6 and 8 upkeep to be subject to 3-year service reviews over 15-year contract
4 hours ago

Adenstar to pave way for £150m Sussex site

£15m infrastructure package to get underway in January
4 hours ago

Alun Griffiths wants to meet new suppliers in South West

Meet the Buyer and recruitment event in Exeter: Register your interest now
20 hours ago

Murphy cancels Christmas party as job cuts loom

Redundancies planned as slow down in growth predicted next year
3 days ago

Tideway boss to chair Construction Leadership Council

Andy Mitchell takes over from former Crossrail chief Andrew Wolstenholme
3 days ago

McLaren tipped for £120m Leicester City training complex

Planners give green light to stunning designs by architect KSS
3 days ago

Moda Living funding deal for seven build-to-rent jobs

Projects in Liverpool, Leeds, Birmingham, Edinburgh and Glasgow get green light
3 days ago

Yorkshire fit-out firm folds after 150 years

21 jobs axed as H. Waterhouse & Sons falls into administration
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
6 months ago

Expanding Winvic forecasts £650m turnover by 2019

Shed builder ramps up student room and private rental schemes
3 days ago

£135m Third Menai Crossing route selected

Work could start on new bridge by 2021
3 days ago

Lower Thames Crossing tunnels widened to three lanes

Budget rises as Highways England ups tunnels design from two to three lanes
4 days ago

Graham wins £22m Dounreay waste store

Work set to start on 3-year intermediate level waste storage building
4 days ago

Winners revealed for Highways England work bonanza

Big names bag places on deal worth up to £8.7bn
4 days ago

North West output rises 10 times faster than national average

North west construction activity soars to £4.6bn over summer
4 days ago

Fusion21 bidders days for £800m framework plan

Contractor days planned next month in London and Merseyside
4 days ago

Brunel Uni prepares to bid £40m teaching centre

Market testing day for new learning and teaching building later this month
4 days ago

Argent names new construction boss

Former BAA and Laing O'Rourke development director joins Argent
5 days ago

Keller warns of losses in Far East

Asia Pacific arm set to rack up £15m loss
4 days ago

Untrained teenager saws through own fingers

Contractor fined after circular saw accident on refurbishment job in Cornwall
4 days ago

Redrow extends health programme to subcontractors

Advice helpline now available to subcontractors and their families
5 days ago

VolkerFitzpatrick wins £25m King’s Cross office job

Rock & Alluvium starts piling work on 9-storey project
5 days ago

South Eastern Electrical goes under

Nearly 200 staff sent home at £50m turnover Essex based M&E specialist
6 days ago

ISG wins £70m-plus Watford TK Maxx HQ

Carey on enabling works at Watford Junction station site
5 days ago

Mount Anvil ramps up London homes pipeline to 4,125 flats

Profits surge as average house price tops £1m milestone for first time
5 days ago

New union launches to protect self-employed sparks

Electricians group targets the end of unfair agencies and umbrella companies
5 days ago

Contractor services