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."
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.