The government has confirmed it will directly fund the completion of Carillion’s Midland Metropolitan Hospital project, designed by Edwards Williams Architects and HKS
The £588 million ‘glass palace’ project in Smethwick, west of Birmingham city centre, was left two-thirds completed when construction giant Carillion collapsed in January.
But work is set to resume after the Department of Health and Social Care (DHSC) pledged to fund its completion. It said the new agreement will see the hospital delivered by 2022.
The DHSC said today: ‘The government has thoroughly assessed their proposal and concluded that the only viable option was for the public sector to bring in its own contractors and that a one-off funding agreement would therefore be in the best interest of patients and taxpayers alike.’
Procurement for a new contractor will start soon, with an appointment to be made by November this year.
Sandwell and West Birmingham NHS Trust chief executive Toby Lewis said: ‘We will continue to engage with the construction market over coming weeks and build towards a formal procurement by November this year.
‘We always said Midland Met would be delivered and the doubters were wrong.’
The trust is currently looking for an interim contractor to carry out some remedial and enabling works before a new contractor is appointed.
The cost of this is estimated to be £21.5 million, with the contractor element worth £13 million.
A tender for this was launched on 6 August and the contractor is expected to be appointed by the end of August.