Three chasing £40m North East health PFI

Three groups are vying to make the cut for a £40m-plus PFI health-sector deal in the North East.

Clugston features in Future Care, one of the consortia in the line-up for County Durham and Darlington Priority Services NHS Trust scheme.

The Humberside contractor is working with D&HS Architects and United Medical Enterprise, which is providing the funding.

The second challenge comes from Investors in Healthcare, which is made up of Yorkshire-based contractor Shepherd and the Mill Group, with Investors in the Community handling the financial side.

These two contestants are joined by HBG and Grosvenor House, which comprises the third team hoping to win the contract.

A preferred bidder is expected to be appointed around September this year.

A project source said: "The Trust had always planned for three bidders to price the scheme and has no intention at this time to enter into a best and final offer (BAFO) stage of the selection process. But if the bids come in so close they can't be separated, then a BAFO might become an issue."

Work on the project is expected to start on site in May 2008, with construction work scheduled for completion in September 2009.

The scheme consists of building two new facilities in County Durham. The 76-bed Lanchester Road Hospital, in Durham, will be an in-patient hospital for people with acute mental health problems. And a primary health care centre will be built in the village of Stanley.

The facilities management concession on the scheme will run for 30 years.