Carillion collapse delays new £335m Liverpool hospital

Royal Liverpool University Hospital
Image captionThe Royal Liverpool Hospital building will cost £335m
The collapse of Carillion has delayed the opening of the new £335m Royal Liverpool Hospital, with bosses saying it is unlikely to be finished in 2018.
Chief executive Aidan Kehoe said it will be “challenging” to open the 646-bed facility this year.
First due to open in March 2017, the project has been repeatedly delayed after asbestos was found on site, while remedial building work was also needed.
Construction giant Carillion collapsed last month with debts of about £1.5bn.
The Insolvency Service and accountancy firm PwC, which is overseeing Carillion’s liquidation, declined to comment on the hospital delay.
Mr Kehoe said Royal Liverpool and Broadgreen University Hospitals NHS Trust was trying to retain sub-contractors and former Carillion staff “because they have the best understanding of the work that is required to finish the job”.
However, he said “highly complex” negotiations were taking time because many were facing financial difficulties as a result of Carillion’s collapse.
Mr Kehoe said: “Given this situation, we expect a significant delay and it will prove challenging to get the new Royal finished before the end of the year.”
The new hospital is being built next to the existing Royal Liverpool, which will be demolished once the new site opens.
Graffiti at Carillion's Royal Liverpool siteImage copyrightREUTERS
Image captionGraffiti at Carillion’s Royal Liverpool Hospital site
Mr Kehoe said the trust “was doing all it can” to minimise the completion delay including liaising with the Department of Health.
He said: “We all want the best for our patients and the people of Liverpool and that is to move into our world-class new hospital.
“When it is built, the new Royal will be at the heart of one of Europe’s leading health and life sciences hubs and will provide the best possible environment for cutting-edge healthcare and research.”
A Department of Health and Social Care spokesman said health minister Steve Barclay had held a “constructive discussion” with Mr Kehoe on Monday.
He said: “Along with the hospital regulator NHS Improvement, we will continue to support all NHS organisations involved to ensure there are plans in place to keep any construction delays to a minimum.”
Carillion employs 43,000 staff globally, about half of them in the UK where it did most of its business. It also operated in Canada, the Middle East and the Caribbean.
The British Medical Association, which previously said the company’s collapse raised “serious questions about PFI deals and the tendering of NHS services”, tweeted that “both patients and staff need urgent answers on when construction will resume”.
Carillion's activities graphic

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