R McAlpine and Clugston in final race for £25m Teeside PFI

Contract News
The race for a £25m PFI hospital deal on Teesside has narrowed to two contenders. Clugston and a Sir Robert McAlpine/Ryhurst pairing have gone head- to- head in the contest for a new community hospital at Redcar.

The news means that Carillion, which submittedalso worked up a bid for the scheme, is now on the casualty list. A source close to the project said: “The original intention was to have appointed a preferred bidder around now. “But bids from two of the firms were so close, that a best and final offer stage has now come into the equation.”

The winner of the contest is now expected to emerge by the end of November or the beginning of December. Work on site is expected to begin soon afterwards. The 32-bed facility, for Langbaurgh Primary Care Trust, will replace the Stead Hospital, which will close.

The new hospital, which will also feature four GP practices, is expected to be ready for the first intake of patients in 2008.

[Contract Journal, 27 September 2006, p 4]