Jarvis removed from Kirklees schools PFI

Kirklees Metropolitan Council (KMC) is in negotiations with Wates after ditching Jarvis as preferred bidder for its £25m schools PFI deal.

Concillor Geoff Alvy, KMC’s cabinet member for children’s services, said: “We have been having detailed discussions with Jarvis and its bankers since the company made its financial statement during the summer. 

“However, due to the uncertainty of the future ownership of the accommodation services division, Jarvis has not been able to reassure the council as to when it would be able sign the contract and start the construction programme. The council has had to consider its options. 

“Consequently, the cabinet agreed to recommendations that officers negotiate an alternative option with a consortium that had also submitted a bid to undertake the project. The Council intends to work with Jarvis to ensure a smooth transfer to the reserve consortium".

In a statement issued this morning, Jarvis said: "Despite its disappointment in the KMC decision JAS has been involved in constructive and amicable discussions with KMC to ensure that the council can move forward promptly with its plans. Both KMC and JAS are confident that the success of their existing 20 school PFI project is not jeopardised by this decision."

Totty was to have been Jarvis's construction partner on the scheme.

In August, Jarvis reached an "agreement with Fife Council to no longer be the preferred bidder" on the £42m Expanding Horizons PFI schools project. In the same month, Cheshire County Council dropped Jarvis as preferred bidder for its £140m highways maintenance deal. Edmund Nuttall replaced Jarvis.

Jarvis's chief executive Kevin Hyde left the firm on Tuesday afternoon.