Jarvis is expected to run more than six months late on its
£30m fire station PFI on Tyneside.
CJ reported earlier this year (CJ 25 August) that the company was
running late on six new build fire stations, which were due for
completion in July, with the first four delivered in May.
Jarvis said the first fire station would be completed in October.
However, the project has suffered further delays and Tyne and Wear
Fire Authority project manager Chris Foster said he expects the
project to be completed "early next year".
"We're still waiting for them to be completed. Nothing's been
signed off, but it is very close
on a couple of stations, which should be completed before
Christmas."
A Jarvis spokesman confirmed the first fire station is nearing
completion. "We're making progress with the Tyne and Wear stations
and hope to hand over the first one, North Moor Lane, very shortly.
We are looking to complete the project early next year and we have
kept in close discussion with the fire authority throughout the
project."
He added that the company could not provide a specific date and
blamed cashflow problems for delays in the autumn.
"There have been some disruptions with receipts from Network Rail
and our property portfolio, which have impacted on our
resources."
Foster said he hoped the remaining stations would be completed in
mid-February. "The penalties lie between Jarvis and Barclays Bank.
The beauty of PFIs is in the formation of the contract and risk
allocation - we haven't paid a penny yet."
However, a Barclays spokeswoman refused to comment on its
arrangement with Jarvis.
Foster said: "We're looking forward to working with it in the
maintenance side of the contract."