Amey in talks to exit Birmingham highways PFI

Aaron Morby 6 months ago
Share

Contractor Amey is in talks with Birmingham City Council to agree on a swift exit from its loss-making highways upkeep PFI deal.

Spanish giant Ferrovial is aiming to sell-off its UK support services business Amey but the 25-year PFI contract is a major obstacle.

According to a report in the Sunday Times, Amey is facing a £200m divorce bill to extricate itself from the contract.

Amey has been locked a five-year legal battle with the council over performance on its £2.7bn PFI deal.

It is reported Amey has not been paid for the work since the end of 2017 as the dispute rumbles on despite court rulings for a settlement.

A council spokesman said: “We continue to work with all stakeholders to achieve a consensual replacement of Amey as soon as practicable and with regard to ensuring continuity of service.”

The PFI deal has already cost Amey dearly.  In 2017 annual account the firm was plunged into the red after writing off £208m on its highways contract with Birmingham City Council following the long-running payment dispute over quality of works.

Last year’s loss came on top of reported losses of £44m in 2016.

An Amey spokesman said: ‘The Birmingham contract is just one of hundreds of contracts across the UK which Amey operates successfully. It is no secret that the ongoing dispute in relation to the Birmingham Highways PFI deal remains a challenge.

‘That is why we are working closely with Birmingham City Council, Cabinet Office and a range of other stakeholders to reach a resolution which is in the best interests of all sides, and importantly delivers for the people of Birmingham.

“We will continue to meet our obligations under the contract for the remainder of its term to 2035, or until such time an alternative position is agreed.”

Latest news

Javid unveils £600m boost for five projects

Fresh infrastructure funding to unlock 50,000 homes in London, Bedfordshire and Essex
3 hours ago

VolkerWessels UK on track to top £1bn turnover

Group margin hits 3% as UK business enjoys record order book of £1.4bn
3 days ago

Lendlease unveils new construction boss

Company veteran Simon Gorski takes over from Neil Martin
3 days ago

Kier to start work on £50m new home for Durham council

Contractor promises major boost to local supply chain
3 days ago

Willmott Dixon to complete Pochin Stoke site

Replacement found for collapsed contractor on £37.5m scheme
3 days ago

Britain’s oldest building company strikes deal with creditors

R Durtnell agrees debt repayment plan with suppliers owed more than £8m
3 days ago

Worker jailed for tax dodging on major London sites

Self-employed Bournemouth builder sentenced to 30 months for evading £110,000 in tax
4 days ago

Bid race starts for £40m M1-A6 link road

Central Bedfordshire Council says project could start in March 2020
3 days ago

Castle Building Services bags £6m M&E package

Early appointment by Bowmer & Kirkland alllows plenty of pre-site start design time
3 days ago

Bright ideas from Balfour Beatty staff save £4m

"My Contribution" programme sees staff suggest 2,600 ways to improve efficiency
4 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

£120m plan to replace Liverpool flyover with tunnel

Plan lodged to demolish flyover and replace it with a dual-lane tunnel
4 days ago

B&K checks in with Manchester “Jenga” hotel

Work to start next month on 275-bed Piccadilly Station hotel
4 days ago

Radisson backs £5bn Kent theme park with hotel plan

Hotel giant takes stake in project as backers look to confirm construction start date
4 days ago

Super safe scaffold screen could slash site costs

System in use at Twickenham station site boosts safety and saves money
4 days ago

McMullen lands cladding package at King’s Cross

Specialist to deliver striking facade for main contractor BAM
4 days ago

Balfour results can help “restore confidence” in construction

Boss Leo Quinn says latest numbers show contractors can deliver
5 days ago

HS2 relaunches race for £300m tunnels fit-out

Latest plan for M&E and ventilation bid race to be detailed at London industry day next month
5 days ago

Midas Group struggles to raise margin above 0.25%

Regional builder rejigs operation to restore golden touch
5 days ago

Polish steel entrepreneur buys Builders Beams

Steelo swoops to save 45 jobs at fabricator
5 days ago

Spanish contractor seals £180m Aberdeen waste plant job

Acciona Infrastructure will deliver full turnkey package on Ness Energy Project
5 days ago

Kier and Interserve secure £100m NHS framework places

North East NHS Trust picks trio of firms for estate improvement programme
5 days ago

Workers given mental health monitors to wear

Spencer staff hit blue button on wristband when they are feeling anxious
5 days ago

Contractors advice wanted on £400m concrete road renewal deal

Highways England wants to talk to potential bidders about procuring resurfacing framework
5 days ago

Silvertown Tunnel award suspended after challenge by losing bidder

Transport for London forced to suspend summer contract confirmation after legal action
6 days ago

Colas UK targets growth after trading loss

Colas chief sets out business turnaround plan to double in size
6 days ago

Interserve fit-out boss joins Morgan Lovell

Matt Bray takes head of contracts role at Morgan Sindall office fit-out firm
6 days ago

Subcontractors wanted for £400m Dounreay decommissioning

Framework contractors to host suppliers day next month: Register now
6 days ago

Henry Boot buys social housing contractor

Sheffield developer and contractor buys controlling stake in Starfish Commercial
6 days ago

Caledonian lands £10m modular student digs deal

Offsite specialist will help cut build times by half at Hereford scheme
6 days ago

Contractor services