Jarvis faces caning from four PFI schools

Several schools involved in Jarvis's £105m Brighton PFI are threatening legal action against the contractor if it fails to complete works in time for the new term.
Jarvis has new build and refurbishment contracts for four schools: Dorothy Stringer High School; Patcham High School; East Brighton College of Media Arts and Varndean School.
However, Varndean, which claims it has been waiting months for landscaping work to be finished, and Dorothy Stringer, which still has a fenced construction area on its site, are losing patience.
"We have already reported Jarvis to the council's internal auditor and we are considering approaching the Audit Commission," said a schools source. "If we are not satisfied we will group together and stump up the cash for a legal challenge."
Jarvis is now talking to its two main bankers every day as it tackles its mounting debt crisis.
The company also admits to being in breach of its banking covenants, but is hoping that, while these have been waved until 30 July, a further extension will be granted beyond that time due to the improved prospects painted by chief executive Kevin Hyde's management survival plan.
However, rival contractors are not holding their breath and most are reported to have already put in bids for parts of Jarvis, particularly the accommodation services division, where the facilities management workload is said to be profitable.
The group's £230m debt is said to be soaring as subcontractors demand more immediate payment terms, fearful of being left in debt if Jarvis folds.
"Also, clients won't be paying if they envisage a similar financial scenario," said one analyst.
Jarvis said its delayed financial results should be published next week.