Carillion rejoins £245m PFI job

Carillion is back in the running for the £254m North Staffordshire PFI hospital project. Its re-entry follows Summit Healthcare's decision to pull out of the bidding last week after failing to find a contractor to replace Sir Robert McAlpine.

Carillion withdrew from the bidding earlier this month (CJ 15 January) after delays to the Portsmouth hospital bid meant staff earmarked to work on the North Staffs bid could not be transferred. But last week its team on the £335m Birmingham hospital PFI project became free after its bid failed to make the final shortlist.

A North Staffs NHS Trust spokesman told CJ: "We are delighted that Carillion is back on board. It is familiar with the hospital after it completed a mental health unit on the site recently. Its return is very welcome since Summit Healthcare was in the process of withdrawing after failing to replace Sir Robert McAlpine."

Summit Healthcare, which included Interserve, was given five weeks to replace Sir Robert McAlpine, but failed to attract any other contractor. The spokesman added: "We understand Sir Robert McAlpine was over committed elsewhere and capacity in the market meant Summit could not source another contractor."

Industry sources say Sir Robert McAlpine had problems with the terms of the scheme and had wanted to renegotiate. The company was unavailable for comment as CJ went to press.

The hospital does not expect Summit's withdrawal and Carillion's late re-entry to delay the project. The hospital's spokesman said: "This will not affect the overall timescale. We are still on course and expect to announce a preferred bidder by the end of August this year and to reach financial close by midsummer next year."

John Laing Group subsidiary Equion is the other bidder.