Just days left for deal to keep Midlands hospital restart on track

Aaron Morby 4 years ago

The NHS Trust battling to restart Carillion’s stalled Midland Metropolitan hospital project has warned there are just days left to sign a deal with replacement contractor Balfour Beatty if the reopening its to be kept on track.

Contractors readied for final sign-off before Christmas
Contractors readied for final sign-off before Christmas

Toby Lewis Chairman of the Trust said Balfour Beatty and its inhouse M&E specialist Balfour Beatty Kilpatrick were now waiting in the wings with their wider supply chain ready to mobilise.

The Trust revealed it had still not reached final agreement in board minutes ahead of a meeting today despite gaining Government approval for £350m of public funding to complete the hospital over two months ago.

The signing off of a contract has been held up because of a funding gap between the agreed final business case for Midland Met and central NHS improvement targets imposed just after sign-off.

Lewis said: “We are close to reaching commercial close for the Midland Metropolitan with Balfour Beatty, and when we do, we have also secured our facilities management supplier.”

Lewis said the NHS board and Balfour had agreed risk transfer for MEP would sit with Balfour.

He added: “Considerable time during November has been focused on moving forward with the Midland Metropolitan.

“At the end of November, we agreed and both signed a memorandum of understanding with Balfour Beatty which confirmed that the majority of material matters consistent with start on site in December 2019 are now concluded.”

But he warned: “As outlined in the board’s last public meeting, we have to resolve the discrepancy between the agreed final business case for Midland Met and NHSI/E’s financial improvement trajectories issued in the days shortly after approval.

“It will not be possible to proceed nor sign a contract until that discrepancy is resolved.”

Lewis said the Trust had being trying to resolve the block for six weeks with national officials.

While the Trust has missed sign-off deadlines for October 31st and then November 30th, he said there were no obvious reasons why it could not be able to achieve contract signature in the next two weeks.

Latest news

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
2 hours ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
2 hours ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
2 hours ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
2 hours ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
1 hour ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
11 hours ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
22 hours ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
1 day ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
1 day ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
1 day ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
1 day ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
1 day ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
2 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
2 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
2 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
2 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
2 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
2 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
2 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
2 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
2 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
2 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
3 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
3 days ago

Housing contractor Durkan suffers second year of losses

More fire safety provisions tip firm into £3.9m loss
3 days ago

Farrans makes breakthrough on tricky tunnel job

Tunnel under Tees latest part of new £155m water pipeline job
3 days ago

Heidelberg buys aggregates and earthworks specialist B&A

Latest deal follows acquisition of Mick George
3 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
6 days ago

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
6 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
6 days ago

Contractor services