Subcontractors are in “highly complex discussions” to get back on site at Carillion’s problem Royal Liverpool Hospital project which is now unlikely to finish before the end of 2018, the client has revealed.
In an update on the £335m hospital, Royal Liverpool and Broadgreen University Hospitals chief executive Aidan Kehoe revealed construction work was still at a standstill following Carillion’s collapse last month.
He said “highly complex discussions” were taking place to get subcontractors back on site as soon as possible.
“However, many of these firms are facing financial difficulties as a result of Carillion’s collapse, therefore this process will take some time,” he added.
“Given this situation, we expect a significant delay and it will prove challenging to get the new Royal finished before the end of the year.”
The Hospital Company, a private sector consortium responsible for the delivery and completion of the hospital, is also working to get former Carillion construction staff to continue work.
Mr Kehoe said these staff were needed due to having the “best understanding of the work that is required to finish the job”.
He continued: “The trust is doing all it can to minimise the delay.
“Our local politicians and others have all been hugely supportive and we will continue to liaise closely with them and the Department of Health.”
Construction News reported last month that subcontractors were digging their heels in over unpaid contracts worth millions of pounds.
It is understood some subcontractors are owed hundreds of thousands of pounds in official payments and retentions.
Around 30 firms are believed to have been subcontractors for Carillion on the Royal Liverpool Hospital project, which is around 90 per cent complete.
Former Carillion CEO Richard Howson revealed more details of the problems faced on Royal Liverpool Hospital when he was grilled by MPs in a parliamentary select committee today.
Carillion discovered cracked beams shortly before the building was completed and had to do £20m-worth of remedial works, he told MPs.
Mr Howson also revealed Carillion was owed £200m for its work in Qatar and that 65 per cent of its pension deficit was down to its purchase of Alfred McAlpine in 2008.