Royal Liverpool Trust to pay Laing O’Rourke trade firms direct

Aaron Morby 6 years ago
Share

The Royal Liverpool hospital trust has revealed it will pay Laing O’Rourke’s specialist trade contractors direct as part of the deal hammered out to restart work on Carillion’s stalled hospital project.

Mace joins Trust client team to oversee cost and schedule risk
Mace joins Trust client team to oversee cost and schedule risk

Latest board papers also reveal that Mace has also been drafted in to oversee the project and manage risk for the Trust after Laing O’Rourke said it would not take responsibility for cost or the hand-over date as part of its restart deal.

Laing O’Rourke, which is managing the construction contract, has already started some minor early works. It will provide a detailed construction programme in the New Year setting out a timescale for handover towards the end of 2020.

The board papers ahead of tomorrow’s meeting state that the agreement sees Laing O’Rourke with a very different set of responsibilities to those carried by Carillion.

As a result, the board had decided to strengthen the trust’s project team to enable it to run the project.

“Laing O’Rourke was not prepared to take any risk on either construction cost or timetable to complete – these risks sit with the trust which we will manage through Mace and the in-house project team,” reveals trust chief executive Aidan Kehoe.

In his summary,  Kehoe adds: “One key safeguard going forward is that the trust will make payments to Laing O’Rourke’s subcontractors directly.

“This means that should the same situation befall Laing O’Rourke as it did Carillion, then the trust would simply look to appoint a new contract manager. Subcontractors would continue to work and get paid as normal.

“Whilst some delay may be inevitable, the subcontractors would be kept whole and there would be no risk to the project being completed. ”

The Trust is currently working with Laing O’Rourke through the procurement process, with around 140 works package contractors who were previously employed on the site.

Having all these contracts in place will see a swifter restart and means that where possible, the Trust retains the warranties for the original works, as well as the completion works.

Kehoe added: “After such a challenging and turbulent time over the last 11 months, we are glad to see work begin back on the site and we are looking forward to the New Year with fresh optimism.

“With Laing O’Rourke and others in place, more contractors to follow in the coming months and work returning to the site, our staff are now refocusing their attention on our plans for moving in.”

 

Latest news

Winners revealed for £5.4bn electricity grid upgrade

SP Energy Networks unveils 19 winners - full list
23 hours ago

Malaysian property giant to buy 50% stake in JRL

IJM Land to buy into diversified £800m turnover south east contractor
1 day ago

Fast-track skills hubs to train 5,000 extra apprentices

Plan for network of 32 skills hubs to rain construction apprentices in half the time
22 hours ago

Luxury house builder files administration notice

£31m turnover Octagon Developments Ltd lodges court notice
1 day ago

Morgan Sindall takes on £22m stalled ISG Cardiff school job

Workplan is being drawn up ahead of restart on Penarth school
1 day ago

Walker Modular wins bathroom pod deal on student tower

Sealant-free construction method helps supplier dominate student market
1 day ago

Over £600m awarded for decarbonisation projects – full lists

Over 240 public building energy upgrade projects secure cash
2 days ago

Enabling works to start on £130m Huyton town centre regen

Phase one includes a new council HQ, hotel and 72 flats
2 days ago

Ridge buys rival consultant Jubb

Acquisition will see 100 new staff join Ridge
2 days ago

Grainger build to rent pipeline rises to £1.4bn

Rental specialist buys sites in Sheffield and Cardiff to build 600 rental homes
2 days ago

Kier wins Cambridgeshire County council estate upkeep

Firm will provide building and M&E services to 106 buildings across the county
2 days ago

Louvres and solar shading specialist files for administration

Hampshire based ALPS lodges court notice after 25 years in business
2 days ago

Speedy Hire posts a loss in latest results

Hire giant confident of better performance in next six months
2 days ago

Esh to lead next phase of Riverside Sunderland regeneration

Infrastructure work will allow further development of Sheepfolds area
2 days ago

Green light for £1.3bn Edinburgh coastal town revamp

First phase of Granton Waterfront scheme will see Cruden Homes create a new community
3 days ago

Vistry chief operating officer steps down

Earl Sibley exits as his COO role axed for more direct reporting to CEO
3 days ago

House builder Camstead goes into administration

Work stopped on three current sites
4 days ago

Death of piling legend Roger Bullivant

Industry innovator dies after long illness aged 85
3 days ago

ESS Modular went down owing suppliers £7m

Modular specialist owned by ISG owner Cathexis
3 days ago

Builders back farmers in inheritance tax protest

"A rethink is desperately needed" say National Federation of Builders
3 days ago

Willmott Dixon wins £36m leisure centre upgrade

Work to start on historic Westminster 1930s Grade II listed Seymour Centre
3 days ago

Graham wins £100m Cardiff Crossrail phase 1

Work on route to Cardiff Bay to start before end of next year
4 days ago

Laing O’Rourke appoints new European MD

Peter Lyons to take-up new role in February
5 days ago

Profits dip at Stepnell ahead of demerger

Turnover and secured workloads up ahead of restructure
5 days ago

HS2 green bridge deck takes shape

100m-wide wildlife bridge to carry hedgerows and country lane over HS2
4 days ago

1,000-home Wolverhampton city centre scheme in for planning

ECF and council advance City Centre West build to rent scheme
5 days ago

Sisk clinches £54m North London council HQ revamp

Haringey's iconic Grade II listed civic centre to be brought back into use
5 days ago

Ofgem approves £2.5bn Eastern Green Link 1

Work to start next Spring on cable project from Scotland to the north of England
5 days ago

Anglian Water hunts for £1bn delivery partner

Programme delivery partner wil integrate with client team over 15-year plan
5 days ago

Hadden collapse costs supply chain £6.7m

"Highly unlikely" subcontractors will receive anything for their unpaid invoices
5 days ago

Contractor services