Balfour's bid scuppered on 2.2bn Birmingham roads PFI

Balfour Beatty has pulled out of the 2.2bn Birmingham City Council (BCC) highways PFI contract half-way through the bidding process.

Balfour was teamed up with Mouchel Parkman for the 25-year contract against the three remaining contenders: Amey; Atkins/EDF Energy Consortium; and Birmingham Street Services (Amec/Vinci/Laing O'Rourke).

However, CJ understands that Mouchel Parkman suddenly notified BCC last week that it was to pull out of the scheme, as it didn't have the time and resources to carry on with the bid.

As the decision came with the invitation to tender period about to come to a close, Balfour has had to withdraw as well.
Balfour is believed to be furious.

One source told CJ: "Balfour must be devastated by the news, as it has come so late in the day. The bid costs for all of us have been very substantial. Questions need to be raised over why Mouchel Parkman left it so late, and how will this affect the two working together in the future."

Balfour would not be drawn on how much it had bid for the scheme and was unwilling to comment on any strain on its relationship with Mouchel Parkman.

Mouchel Parkman local roads and transport managing director Jeremy Wray said the withdrawal was a result of the group's "normal risk management processes".