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Balfour Beatty Chosen to Get Midland Met Hospital Back on Track

Oct 10, 2018 Red Flag Alert Updated On: August 15, 2023
Balfour Beatty Wins Contract at Midland Met Hospital

The collapse of Carillion has left clients and contractors reeling, and the damage is still being unpicked. The Midland Metropolitan Hospital is one project that completely stalled, but this week there is some good news.

Balfour Beatty has been appointed to complete an interim enabling project that includes repairing and replacing some unfinished elements and preparing the site for a larger contract to complete the project. The value of this project is estimated to be between £10m and £15m.

The Government Steps In

The project was initially a Private Finance Initiative (PFI), but is now going to be backed by the government to the tune of £300m after the Department of Health and Social Care agreed to bankroll it. At completion, the project will be a mind-boggling six years late.

Once Balfour Beatty completes the first phase, a contractor will come in to deliver the main part of the project. It will begin at some point in 2019.

Relief for Sandwell and Birmingham NHS Trust

Chief Executive Toby Lewis said: “We are delighted to enter this partnership with Balfour Beatty.” Acknowledging the sadness felt when the project stalled, he was bullish about the future. “In 2022 our partnership with local GPs, schools and care homes will be even deeper and more integrated than today.

Lewis also talked about the short-term measure the Trust has been forced to take, stating: “We are investing in our existing buildings for the interim period, but there is no doubt that a new single acute and emergency hospital in Smethwick is what the local NHS needs to provide the very best care.

Thomas Edgcumbe, Managing Director of Balfour Beatty, was also upbeat, saying: “We are delighted to be able to support the Trust on this key hospital project which is vital for the local residents and the wider community. Our wealth of experience and expertise in the healthcare sector will enable us to recommence work quickly and allow for the successful completion of this early works contract.

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The impact of Carillion’s insolvency was obviously severe and it reinforces how critically important it is to undertake company credit checks when running important projects.

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Every business has a health rating based on hundreds of different factors – this rating allows you to see insolvency coming. Carillion was rated as having two red flags for a whole 12 months before their insolvency – 50% of businesses with this rating fall into insolvency within a year.

If the Sandwell and Birmingham NHS had been privy to this level of information, they could have taken action. Perhaps it would have been difficult to mitigate all the problems they’ve since encountered, but it would have given them foresight and helped to counter some of the damage.

Using Red Flag Alert gives you vital insight, so if any businesses you work with are in financial distress you will know straightaway.

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Published by Red Flag Alert October 10, 2018

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