Manchester Uni suspends £170m student halls as bids soar

Aaron Morby 7 years ago

Manchester University has abandoned talks with contractors to build an accommodation campus for over 3,000 students after bids came in way over target costs.

Owens Fields redevelopment was billed as the 'jewel in the crown' of university accommodation
Owens Fields redevelopment was billed as the 'jewel in the crown' of university accommodation

The University had hoped to start work on its estimated £140m-£170m Owens Park student village development next month.

But procurement chiefs are going back to the drawing board after a year-long bid competition to review their options and either scale-back plans or find extra finance.

It is the second major scheme in the University’s £1bn redevelopment plan to be hit by a mismatch between PQS estimates and contractors’ tender prices.

The massive Fallowfield student village at Owens Park is one of the University’s largest planned projects in its 10-year building programme and was to be built in three phases over several years.

The University said in a statement: “We have taken the decision not to proceed with this procurement because the final tenders received were substantially in excess of the budget and made the project unaffordable in its current form.

“We intend to commence a new procurement process for these works once we have reviewed our options in relation to both the scope of the works and our funding requirements.” 

Owens park campus

Owens Park was to become city’s biggest student residential campus

Redevelopment work on the 29 hectare site was to be funded by the Mubadala Development Company with the university managing construction work.

The Mubadala Development Company is owned by the Abu Dhabi government and run by Manchester City chairman Khaldoon Al Mubarak.

Earlier this month, the Enquirer revealed that Sir Robert McAlpine had walk-away from negotiations to build a £30m graphene engineering innovation centre for the university. It is understood there was a 20% difference in estimated project price.

Laing O’Rourke, one of the University’s three framework contractors, has now been asked to price this smaller job.

Latest news

Enabling works start on £200m Cambridge station

Murphy starts site preparation ahead of main contractor award next month
9 hours ago

Work stops on MAC education job

MAC-Interiors seeks protection from creditors as subbies walk away from Birmingham site
16 hours ago

HS2 labour supply firm posts loss despite revenue jump

Hercules Site Services confident about future prospects despite HS2 slow down
15 hours ago

Graham to lead UPP push for next generation green campuses

Student campus developer strikes deal with Architype to design and retrofit next generation net zero student halls
16 hours ago

NG Bailey appoints Sellafield chief as NED

Martin Chown joins M&E contractor main board
15 hours ago

EN:Procure wants firms for £700m new-build homes deal

Regional social housing consortium Efficiency North to renew house building partners
16 hours ago

£470m tunnel plan for Scotland’s landslip-prone A83

Scottish Government plans 1-mile long debris flow shelter to protect vehicles from falling rocks
1 day ago

Developer dumps Henry Construction from London tower job

Growing list of subcontractors and suppliers complain they have not been paid
4 days ago

HS2 construction shake-up sees main contractor changes

Align to take over responsibility for parts of the route previously under the control of EKFB
4 days ago

Claritas Group heading for liquidation

CEO of £50m turnover contractor confirms news and thanks staff and suppliers
4 days ago

Go-ahead for clutch of major jobs to reboot Manchester

Two biggest high rise projects at Bridge Street and Medlock Street to cost £575m to build
4 days ago

Plan for major NHS estate green upgrade framework

NHS Shared Business Services starts early consultation with firms on decarbonisation retrofit plan
4 days ago

Willmott Dixon signs £34m revamp of DfE headquarters

Grade II Sanctuary Buildings in Victoria will be modernised and made energy efficient
4 days ago

£500m southern highways framework up for renewal

Ten firms face fight to retain places on major councils roads framework
5 days ago

Engineering losses halve Briggs & Forrester profit

Main engineering services arm suffers £1.6m loss
5 days ago

Plans in for University of East London campus expansion

Work to start in early 2024 on 280,000 sq ft Stratford teaching and student rooms scheme
5 days ago

CITB told to improve by Ofsted inspectors

Number of in-house apprentices drops as training body changes business model
5 days ago

IHP wins £100m Derbyshire mental health projects

Vinci/McAlpine JV will build two 54-bed Adult Acute Care units
5 days ago

Align hits key milestone on HS2 Colne Valley viaduct

Engineers rise to the challenge to complete first V-piers in lakes
5 days ago

£9.3bn race starts for National Grid construction partners

Plan for Great Grid Upgrade Partnership to be set out at bidders day in early June
6 days ago

Plan approved to redevelop major Glasgow shopping mall

Outline plan backed for demolition of St Enoch centre for over 900 homes, shops and leisure space
6 days ago

Banned demolition boss wins appeal to remain a director

Paul Cluskey wins Court appeal to remain director of Cantillon but steps down as MD
6 days ago

B&K confirms £140m Leeds build to rent project

Work to start on Whitehall Riverside twin blocks for client Glenbrook
6 days ago

McLaren Property to revamp Liverpool roller skating site

242-bed student scheme unveiled for sensitive site
6 days ago

Wates names Midlands construction chief

Matt Johnson promoted after just 10 months at family-owned builder
6 days ago

Glencar lands £28m Peel Ports Liverpool shed job

240,000 sq ft Alexandra Docks warehouse will be five football pitches long
6 days ago

Private equity giant buys United Living

US based investment group Apollo makes latest swoop on UK construction market
7 days ago

Quartet secure Thirteen Group £500m new homes deal

Esh, Morris & Spottiswood, ReGen and Henry Boot secure spots on new build framework
7 days ago

Luton Town FC to start new stadium before end of 2023

Talks already underway with contractors ahead of submission for detailed planning this summer
7 days ago

Plans for renovation of historic Cardiff Market

Subject to planning and final funding work could start next year
7 days ago

Contractor services