Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

Skanska set for Carillion job after Kier admits defeat

Skanska is poised to be named as the new contractor on Carillion’s £350m Midland Metropolitan Hospital contract after Kier confirmed it was out of the running.   

Speaking exclusively to Construction News Kier boss Haydn Mursell said he believed a decision had “already been made” and that Kier was “not the chosen party.”

CN has learned Skanska is in negotiations with the Hospital Company, the PFI body tasked with the construction of the project.

The Sandwell and West Birmingham Hospitals NHS Trust chief executive Toby Lewis confirmed to CN the Hospital Company was part of the way through agreeing an interim contract with a new body.

“We understand that our contractor, Hospital Company, are part way through a competition for an interim contract”, he said.

“[We] look forward to confirming details during March of that arrangement to get work restarted.”

CN understands Carillion staff on the project were let go in two waves of redundancies, one last week and another on Monday.

The £350m Midland Hospital project has suffered from several significant delays.

The initial completion date of October 2018 has been pushed back and last September the NHS Trust admitted it was still unable to confirm a new date for the project’s completion.

Board minutes released by the Carillion joint inquiry showed there were concerns over the fact the contractor signed the Hospital deal in four months.

The evidence revealed ex-interim chief executive Keith Cochrane thought mobilisation on the project had been rushed as a result.

Following the collapse of Carillion, Haydn Mursell said contractors would be “daft” to take on Carillion loss making projects of which the Midland Metropolitan was one.

Speaking to BBC’s Today programme, Mr Mursell said: “Carillion has publicly said those contracts were loss-making, so it would be daft for any contractor to step in to the same terms and conditions.”

Skanska told CN the contractor ”only comment[s] on signed contracts.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.