Carillion named preferred bidder on £430 million hospital project

Carillion , the construction and support service group, has been named as the preferred bidder for a £450 million, Public Private Partnership project to redevelop the Southmead Hospital, Bristol. Through a joint venture with the Bank of Scotland, the prtnership will finance the new 800-bed acute hospital, investing up to £50 million. Subsequently, Carillion is providing design, construction, maintenance and facilities management services for the project.

Carillion Chief Executive, John McDonough said “We are delighted to have been selected as the preferred bidder for the North Bristol project, which will be our largest PPP hospital to date...We are deploying the Group's wide range of in-house skills and resources to generate a truly integrated solution”

The construction contract is valued at approximately £430 million, plus an additional £20million in advance works.Over a 30-year concession period, the construction and maintenance group also expects to earn a further £170m for facilities management and lifecycle maintenance services.

Advanced construction work started in August 2009, the hospital is due to open in early 2014.