Big names line-up for £2.7bn Birmingham roads deal

Grant Prior 2 weeks ago
Share

Big name contractors and consultants are eyeing-up the troubled Birmingham Highways PFI job.

An open day next week organised by Birmingham City Council will see firms including Arup, Arcadis, Balfour Beatty, Carnell, Colas, Kier and Tarmac discover more information about the £2.7bn deal.

Prospective bidders will go through a competitive and transparent tendering process which is due to begin in February.

The process will take nine months to provide bidders with sufficient time to undertake due diligence and maximise an equal opportunity for all interested firms.

Birmingham originally signed a 25-year, £2.7bn highways management and maintenance contract back in 2010 with Amey.

But the contractor became embroiled in a lengthy performance dispute with the council which ended in March 2020 with Amey paying £215m to terminate its involvement in the PFI deal.

Kier stepped in as interim contractor while the council and Birmingham Highways Limited – the special purpose vehicle owned by Equitix and PIP Infrastructure Investments – have been working to restructure the contract.

The new contract will cover the remaining 12 years of the initial agreement, from April 2023 to June 2035.

Kevin Hicks, Assistant Director, Highways and Infrastructure, Birmingham City Council said: “Extensive work has been put in over the last two years by all of the project parties and with the close support of the DfT in order to establish a workable and deliverable contract framework.

“Many lessons have been learned from the first 10 years of the project and with the insight we have gained from the industry through previous engagement exercises believe that we have an attractive prospect for the market. As a result, we are extremely encouraged and excited by the interest this huge opportunity is generating within the industry.”

CEO of Birmingham Highways Limited, Natasha Rouse said: “We are confident that we can create a level playing field for all interested parties, and look forward to presenting our contract to the industry at the Supplier Day in January”.

Latest news

Forterra hikes brick prices by 10%+ with more rises to come

Demand continues to surge and costs increase for masonry products giant
4 hours ago

Go-ahead for £40m Manchester spec office scheme

Local firm PP O'Connor to demolish Speakers House for 17-storey office block
4 hours ago

Spanish giant lands deal to build £683m waste power plant

New plant will turn black bin bag waste into electricity
23 hours ago

Henry wins six Ealing council housing projects

Henry Construction secures £40m West London council homes deal
5 hours ago

Landsec eyes £825m Glasgow Buchanan Galleries rebuild

Glasgow's mammoth shopping mall could be demolished for mixed-use city quarter
18 hours ago

Mace lands £300m London court and police complex

Main construction works to start on Fleet Street site this autumn
21 hours ago

Graham bags £30m Birmingham build to rent job

Work set to start Crown Works residential scheme in the Colmore Business District
3 hours ago

Balfour Beatty names new investment arm chief

Leo Quinn promotes former major projects finance director Gavin Russell
21 hours ago

M1 fraud probe exposes contract management problems

M1 J13-16 investigation finds £320,000 of central barrier scrap metal went missing
1 day ago

Beaumont Morgan Developments goes into administration

Begbies Traynor now in charge of £47m turnover Manchester contractor
1 day ago

Green light for major overhaul of Surrey pharma campus

Kier and Mace bidding for revamp project with three storey glulam building at its heart
1 day ago

Morgan Sindall hires Crossrail safety director

Carole Bardell-Wise joins infrastructure business as SHEQ Director.
1 day ago

Galliford Try bags £28m Dover inland border control facility

Major inland border facility to be built alongside the A2 outside of Dover
1 day ago

Plans go in for £280m Leeds Whitehall Riverside scheme

Major office and flats scheme to be built next to River Aire
1 day ago

Roofer dies in six metre plunge through asbestos sheets

Court hears no safety nets were fitted on site
2 days ago

Subbies stop working for Beaumont Morgan Developments

Manchester based contractor was delivering Fortis Quay for associate development company
2 days ago

Gove threatens ban on cladding suppliers failing to pay for retrofits

Cladding and insulation suppliers now in firing line for cash for £9bn post-Grenfell remediation bill
3 days ago

Bill for £22bn HS2 extension to Manchester goes to Parliament

52-mile extension of HS2 to Manchester via Manchester Airport will support 17,500 construction jobs
2 days ago

Galliard scoops up trio of sites for schemes worth £265m

Sites in Redbridge, Ipswich and Milton Keynes to be developed
2 days ago

Plans in for 350-flat Salford student scheme

Developer X1 hopes to start 15-storey building later this year
2 days ago

Green light for Birmingham Paradise landmark hotel

17-storey hotel will be the 'cornerstone' of Phase 2
5 days ago

Structural steel price jumps another £50 a tonne

British Steel blames New Year's price hike on continuing high product costs
5 days ago

Enabling works start at £400m Manchester First Street

Downing to start main construction in March of three resi buildings rising up to 45 storeys
5 days ago

Former BAM Nuttall chief to join Murphy

Adrian Savory to start new role as director of Major Projects division next month
5 days ago

Bouygues set for London Tustin Estate 700-home rebuild

Phased building programme to start towards the end of the year
5 days ago

Safety horror show on housing site leads to director ban

Court hears contractor ignored multiple prohibition and improvement notices
5 days ago

JV North calls up local firms for £250m new home works

Framework for home building projects worth up to £2m
5 days ago

Kier more than halves debts to below £200m

Kier chief reports steady progress in first six months of trading
6 days ago

Barhale boosts funds as it looks to rebuild turnover

Contractor confident as water companies ramp-up spending plans
6 days ago

HS2 labour agency looks to float on AIM

£23m turnover labour supply business looks to raise funds for expansion
6 days ago

Contractor services