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

Costain's problem Manchester waste deal to be retendered

The Manchester PFI waste deal which led to losses of more than £15m for Costain is to be retendered a month after being cancelled by the client.

Greater Manchester Waste Disposal Authority (GMWDA) will begin the search for firms to take on the management of waste across Greater Manchester.

In addition to waste management, the contract’s scope will include a number of construction jobs on dozens of waste sites across the North-west.

The contract will replace GMWDA’s 25-year PFI deal with operator Viridor Laing to deliver waste management services for Manchester and its surrounding areas, which was officially ended last month.

Costain served as Viridor Laing’s subcontractor under the PFI as part of a £397m design, construct and commission deal signed in 2009 for 46 waste facilities across Greater Manchester.

The contract was beset with problems, with Costain revealing earlier this year that it had set aside £15.1m in costs and provision to cover the losses on the deal.

GMWDA has said the new contract would likely be split across three lots when it is launched on 7 November.

The construction work will involve changes to a number of facilities belonging to GMWDA including 20 household waste recycling centres, eight transfer loading stations, the Bolton thermal recovery facility and a number of biowaste facilities.

Readers' comments (1)

  • Who on earth would want to bid for this? Anyone who does may as well issue a profits warning at the same time.

    The client is unbelievable too. Always chasing a cheap deal and is now looking for a new and unfortunate desperado who will chase straight to the bottom and want this contract.

    Unsuitable or offensive? Report this comment

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.