Newcastle project pulled after funding problems


Newcastle City Council has been forced to pull the plug on a massive construction programme originally worth £440m-plus.
The client was running the rule over a long list of 13 contractors to tackle a partnering project covering a mix of upgrading and new build work in the housing, education, social services and community facilities sectors.
But a council source said: "Because of a lack of funding, we couldn't guarantee any of the work except housing."
He said the deal has now been repackaged as a framework scheme and that the original 13 contenders have been invited to reapply by letter for the
rejigged project.
He said: "Under the framework deal, contractors aren't guaranteed a set amount of work. The council will now identify the work, but how much is done will depend on the price and quality of bids contractors send in. For instance, it could be £60m a year over six years; it could be £10m annually."
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It is understood that more than 100 outfits registered interest in the repackaged scheme, including the original 13.
Newcastle is expected to make its final choices of contractors to carry out the work in November.
n The original 13 were as follows. Local contractors: Bowey Construction; Dorin; Dun Elm Property Services; Frank Haslam Milan; John Hellems; Kendall Cross; C Spencer. Nationals: Clugston; Gleeson; Kier; Mansell; Wates. Specialist:
Balfour Kilpatrick.


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