Galliford Try has lost an £18 million job to refurbish the Birmingham NEC after the parties failed to negotiate a “commercially suitable outcome” on the contract.
The National Exhibition Centre Ltd is retendering the contract and posted a fresh OJEU notice today.
The NEC says its budget for the job is £20m. Galliford Try had announced the deal as an £18m contract win back in September last year.
It comes a few months after Galliford Try announced financial close on an £89m deal to build a new development including a casino and hotel at the NEC.
The client is now looking for another main contractor to undertake the design and build for the refurbishment of the National Indoor Arena.
“This contract was originally let via a previous OJEU Notice in 2012,” it said.
“However due to the NEC and winning bidder being unable to reach a commercially suitable outcome we have ended the contract.
“The NEC has since worked hard on the design to ensure that the scheme is affordable for the market and not relying just on market forces to bring the project on budget.”
A Galliford Try spokesperson said: “Unfortunately, despite intensive negotiations by both sides, we were unable to reach agreement on commercial terms for the National Indoor Arena refurbishment project.
“We wish the NEC well in their future endeavours to get the project on site and look forward to continuing to work with them on the major upgrade in wifi provision on the NEC site.”
The NEC says constraints of planning approvals and main sponsor terms for the arena means the selection of new contractor “is required without delay”.
It plans to reduce the prequalification period with the tender timelines being maintained.
The award will go to the “the most economically advantageous tender”, it says
The job will include work on the arena floor level and replacement of all or part of the fixed, retractable and floor seating with the arena bowl, and considerable M&E enabling works.
The NEC also highlighted the complexity of the scheme, due to changing tenancy and events throughout construction.
“The tenancy is the key driver and baseline of the project,” it adds.
Time limit for receipt of tenders is 4 February 2013.
Interested parties should contact Mark Allwood, 01217672473, or email email@example.com