Service Reconfiguration

10.01.19

Trust sets £320m cap on finishing Birmingham hospital hit by Carillion collapse

The NHS trust behind the Midland Metropolitan Hospital hit by the collapse of Carillion last year has launched its search for a replacement contractor, and set a £320m cap on any bids to finish the hospital.

Sandwell and West Birmingham Hospitals NHS Trust has published a contract notice calling on potential contractors to register their interest in taking over the Birmingham hospital project— and pledged to share any cost-savings identified on the project.

The trust has placed a number of restrictions on the contract, namely capping the project budget at £320m, as well as requiring bidders to have a turnover of at least £534m.

The Midland Metropolitan Hospital was hit with delays and increased costs caused by the collapse of the construction giant Carillion, temporarily halting the building of the new facility.

In total, the NHS was forced to implement contingency plans at 14 hospitals to keep essential services running, and left trusts hundreds of millions out of pocket.

Now, firms have been formally invited to apply up until 6 February to complete the half-finished hospital, and three contractors will then be shortlisted and invited to tender later in the month, with a preferred bidder being selected from the trio.

The main construction work is expected to recommence in October, and the trust plans on having the project completed by the end of 2021.

Sandwell and West Birmingham Hospital Trust had previously admitted it was struggling to find a contractor to replace Carillion and warned there was still a risk of the trust being unable to find a firm prepared to take over the site.

Balfour Beatty are reporting one of the favourites for the job with the company already on the site carrying out an £10m early works contract.

Following conversations with the market, the Birmingham trust found that there was concern about the risk any new contractor would have to bear when taking on the hospital project, and today’s contract notice reveals that firms will have to take full design and construction risk.

The hospital had an original construction budget of £350m when it was first procured under a private finance initiative in 2015, with Carillion spending £205m on work by January last year which means the total cost will hit £525m if the £320 budget cap is reached.

It was previously reported by the trust that the delays to the Midlands hospital could bring the total cost into eight figures, with Carillion’s collapse also leading the cancellation of over £100m in EU funding.

Comments

There are no comments. Why not be the first?

Add your comment

 

national health executive tv

more videos >

latest healthcare news

CQC finds ‘significant improvements’ at specialist London NHS trust

25/03/2019CQC finds ‘significant improvements’ at specialist London NHS trust

Significant improvements have been found by inspectors at the Royal National Orthopaedic NHS Trust (RNOH) in a “major step forward” f... more >
Heart surgeries cancelled and patients warned of fatal infection risk due to deaths at Edinburgh hospital

25/03/2019Heart surgeries cancelled and patients warned of fatal infection risk due to deaths at Edinburgh hospital

NHS Lothian has written to nearly 200 patients who have undergone heart surgery in the last six months warning them of a potentially fatal infect... more >
Medical director promoted to chief executive at under-investigation trust

25/03/2019Medical director promoted to chief executive at under-investigation trust

The Countess of Chester Hospital Trust (COCH) has announced that its medical director has been appointed as its new chief executive. Susan G... more >

editor's comment

25/09/2017A hotbed of innovation

This edition of NHE comes hot on the heels of this year’s NHS Expo which, once again, proved to be a huge success at Manchester Central. A number of announcements were made during the event, with the health secretary naming the second wave of NHS digital pioneers, or ‘fast followers’, which follow the initial global digital exemplars who were revealed at the same show 12 months earlier.  Jeremy Hunt also stated th... read more >

last word

Hard to be optimistic

Hard to be optimistic

Rachel Power, chief executive of the Patients Association, warns that we must be realistic about the very real effects of continued underfunding across the health service. It’s now bey... more > more last word articles >

the scalpel's daily blog

What progress are we making to transform our population’s mental health?

25/03/2019What progress are we making to transform our population’s mental health?

Professor Gillian Leng, Deputy Chief Executive and Director of Health and Social Care at the National Institute for Health and Care Excellence - NICE - provides her view of the newly published NICE impact report on mental health. Mental health conditions are the largest single cause of disability in the UK, with one in 4 adults experienci... more >
read more blog posts from 'the scalpel' >

comment

What progress are we making to transform our population’s mental health?

25/03/2019What progress are we making to transform our population’s mental health?

Professor Gillian Leng, Deputy Chief Executive and Director of Health and Social Care at the National Institute for Health and Care Excellence - ... more >
Staying curious with the Shadow Board Programme

20/03/2019Staying curious with the Shadow Board Programme

Kirstie Stott, director of The Inspiring Leaders Network, discusses organisational and system curiosity alongside the work of the Shadow Board Pr... more >
Fiction as Therapy

20/03/2019Fiction as Therapy

Elaine Bousfield of ZunTold Publishing – a press specialising in fiction for children and young people – discusses ‘Fiction as ... more >
Capturing funds for the NHS estate

20/03/2019Capturing funds for the NHS estate

Aahsan Rahman, department head of town planning at NHS Property Services (NHSPS), looks at an alternative and perhaps underutilised funding sourc... more >

interviews

How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

24/10/2018How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

A dedicated national social care service could be a potential solution to surging demand burdening acute health providers over the winter months,... more >
RCP president on new Liverpool college building: ‘This will be a hub for clinicians in the north’

24/10/2018RCP president on new Liverpool college building: ‘This will be a hub for clinicians in the north’

The president of the Royal College of Physicians (RCP) has told NHE that the college’s new headquarters based in Liverpool will become a hu... more >
Duncan Selbie: A step on the journey to population health

24/01/2018Duncan Selbie: A step on the journey to population health

The NHS plays a part in the country’s wellness – but it’s far from being all that matters. Duncan Selbie, chief executive of Pu... more >
Cutting through the fake news

22/11/2017Cutting through the fake news

In an era of so-called ‘fake news’ growing alongside a renewed focus on reducing stigma around mental health, Paul Farmer, chief exec... more >

health service focus

View all News