Lendlease quits Hub West Scotland framework

Aaron Morby 7 years ago
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Lendlease has dropped out of the Hub West Scotland framework as the business winds down in the region.

Kier and Galliford Try-owned Morrison have now been signed up to replace Lendlease joining Morgan Sindall and BAM as the Hub’s contractors of choice.

The decision to pull out of the Hub framework comes as Lendlease is scaling down its business in Glasgow after losing the bid race for Glasgow University’s new £700m campus to Multiplex.

With an uncertain pipeline of major building projects in Scotland it is understood that any future bids will be made from Lendlease’s London office.

It will also retain a workforce to complete the £15m Dumbartonshire Council building, which it secured last year.

Latest accounts for the year to June 2017, reveal that Lendlease Construction (Scotland) struggled during the year with losses widening from £1.2m in 2016 to £6m this year.

The firm’s Scottish operation revenue slumped from £46m to £18m with staff numbers cut by nearly half to 42.

Lendlease said it still remained committed to the Scottish market and was looking at several opportunities.

As a result of the deal Kier is now working with four and Morrison Construction with three of the five Scottish Hub companies.

Eddie Robertson, Morrison Construction’s managing director for Central Scotland, said: “As a business we have demonstrated a significant track record on the three hubs that we are an existing member of.

“We look forward to working with public sector bodies within the west to carry on creating a proud legacy of high-quality infrastructure for the people of Scotland.”

Iain Marley CEO, hub West Scotland, added: “Our supply chain renewal focused on selecting organisations who clearly demonstrate a partnering approach and are committed to adding value to the delivery of projects and programmes.

“We are looking forward to working collaboratively to strengthen the hub partnership and delivering yet more fantastic community facilities in conjunction with our public and private sector partners.”

Hub West Scotland was established in April 2012 and has to-date successfully delivered 20 facilities worth £130m, with £138.5m projects currently under construction and many projects in development including health centre’s in Clydebank and Greenock and Stobhill Hospital Adult Acute and Elderly Continuing Care Facility.

The West hub territory has an operational boundary defined by the Greater Glasgow and Clyde region, the West Territory is serviced by one health authority and six local authorities.

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