Carillion and Wates resign from ProCure 21

Carillion and Wates have resigned from ProCure 21, as predicted by CJ last month.

A statement from the Department of Health confirms their departure from the programme and also that the other two firms CJ predicted would pull out, Medicinq and Taylor Woodrow, "have voluntarily suspended their participation in the framework while reviewing their positions".

As a result of Carillion's withdrawal and its takeover of Mowlem, the DoH statement confirms that Costain has taken the place occupied by the ACM team of Amec, Costain and Mowlem. No announcement of Amec's withdrawal has been made, but this must clearly be the case.

Carillion, Wates, Medicinq and Taywood will complete the contracts they are already working on.

A statement from Carillion read: "Carillion today confirmed withdrawal from ProCure 21. Lower than predicted volumes and a disappointing distribution of work in the pipeline lie behind the decision. The level of work secured has not met Carillion’s expectations. The decision is based on commercial considerations and the continued requirement of an annual framework fee."

CJ reported last month that new health minister Andy Burnham was not prepared to waive the fee.

So, the remaining principal supply chain partners with confirmed commitment to ProCure 21 are: Balfour Beatty, Costain, HBG, Integrated Health Projects (Norwest Holst and Sir Robert McAlpine), Interserve, Kier and Laing O'Rourke.