Laing O'Rourke tipped to win £60m college deal

Industry insiders say Laing O'Rourke has won an education-sector deal in the North West with an overall value of £60m.

The contractor looks to have seen off its three remaining rivals for the design and build South Cheshire College redevelopment scheme in Crewe. Construction costs are expected to range between £42m and £47m.

Amec, HBG and Sir Robert McAlpine also threw their hats into the ring for the project. Norwest Holst and ISG were originally shortlisted to pitch as well, but they later pulled out of the contest.

CJ understands that O'Rourke has passed the first stage of the two-stage tender process and that the contract will be awarded next year. A source said: "It was a very close contest between the four remaining contractors and it wasn't easy to select the winner from such high-quality submissions."

Building work is expected to start on the site next May, with the revamped college expected to be ready in time for the start of the September 2010 term.

The present seven-storey college, built in the 1960s, will be knocked down in phases in an effort to minimise disruption to students, and the demolition work will finish only when work on the redeveloped complex has been completed.

The new building will be on three levels, with an overall gross internal floor area of 25,869m2.

Crewe & Nantwich Borough Council planners are expected to give the scheme the green light next month. And funding from the Learning and Skills Council is expected to be in the bag by early next year.