NAO to probe handling of Carillion hospital contracts

The NAO said it would examine the government’s contingency planning for the hospital projects before the Carillion collapse and its response afterwards, the termination of the PFI contracts, and the subsequent letting of the new contracts. It is also expected to assess the eventual costs of the two hospitals.

A report following the NAO’s investigation into the government’s handling of the Carillion collapse in June 2018 noted that in 2017, Carillion expected losses of over £120m on the two hospitals.

Laing O’Rourke has since taken over the contract to complete the Royal Liverpool University hospital and has already removed parts of the cladding and exterior of the hospital to fix structural defects. In September, it started to install 165t of structural steelwork to secure the building.

Meanwhile, the NHS Trust in charge of the Midland Metropolitan hospital is hopeful that Balfour Beatty can begin works to complete the £267m building in December.