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

Aaron Morby 6 years ago
Share

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

13-year-old becomes UK’s youngest qualified digger driver

Grandson of Gallagher Group chairman sets industry record
5 hours ago

Cubby reborn in £12m Svella-backed takeover

£50m revenue target set as 14 firms combine under new Cubby Group banner
20 hours ago

North East NHS trusts plot £3bn health estate overhaul

Market engagement begins for major construction push across four trusts
20 hours ago

HG goes green on cranes in £1.2m switch to battery power

Diesel-free crane drive cuts fuel bills by 94%
20 hours ago

Developer fined £165,000 for fire safety failings

Firm ignored fire safety orders on apartment job in Preston
20 hours ago

Bidding to start for £1.8bn North West framework

Contractors invited to bid for latest Procure Partnerships deal
21 hours ago

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
2 days ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
2 days ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
2 days ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
2 days ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
3 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
2 days ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
2 days ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
2 days ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
3 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
3 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
3 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
4 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
4 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
3 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
4 days ago

Major Building Safety Regulator shake-up to end tower delays

HSE stripped of control and top fire chiefs brought in to fast-track stalled schemes
4 days ago

Hinkley trio sign Sizewell civils deal

Balfour,Bouygues and Laing O'Rourke form Civil Works Alliance for new power station
4 days ago

£3.9bn data centre plan for Ravenscraig steelworks

Green energy to power massive new steel to silicon AI campus
4 days ago

Breakthrough on HS2’s second longest tunnel

8.4 mile Northolt to Old Oak Common drive completes
4 days ago

Neilcott on fast-track to debt-free employee ownership

£22.5m loan nearly paid down after big profit year
4 days ago

TfL kicks off race for £700m Tube station upgrade

South Kensington and Elephant & Castle top the pipeline list
4 days ago

Corbyn Plant Hire fleet goes under the hammer

Kit to be sold off by sister firm to collapsed groundworks contractor
4 days ago

Government wields procurement stick on late payment

New rules would block slow payers from bidding on big public jobs
7 days ago

Hercules buys power line labour firm for £15.7m

Labour supply specialist snaps up Advantage NRG to tap booming electricity upgrade market
7 days ago