Work resumes on Midland Metropolitan hospital after two-year delay
Construction work has now resumed at a “super-hospital” which has been hit by delays following the the collapse of construction giant Carillion.
The newly-named Midland Metropolitan University Hospital, in Sandwell, was due to open in 2018 but work ground to a halt when Carillion went under.
The 669-bed facility in Sandwell, which was due to open in October 2018, is now expected to open in July 2022 and will cost at least £988m – more than £300m over budget.
The taxpayer is currently expected to pay £709m of this, an increase of 3% from the original forecast, the National Audit Office report says.
The private sector has borne most of the cost increase, with shareholders, investors, insurers and Carillion losing at least £603m on the construction of both projects, the auditors said.
Construction work is being carried out by Balfour Beatty.
More than 3,000 jobs were lost when Wolverhampton-based Carillion folded, with 75,000 people working in its supply chain affected. It failed with debts of £7bn.
The circumstances of Carillion’s collapse are being investigated by the Financial Reporting Council and the Official Receiver.
