The complex and challenging project of completing a major part-built hospital in the UK is being procured under an NEC4 Engineering and Construction Contract (ECC) worth up to £267 million.
The state-of-the art Midland Metropolitan Hospital near Birmingham was being delivered under a 30-year, £430 million private-finance contract by a Carillion-led joint venture. But, with construction just two-thirds finished, the contract was terminated last summer following Carillion’s insolvency.
Client Sandwell and West Birmingham Hospitals NHS Trust now has government funding to complete the 10-storey building directly under an NEC4 ECC Option C (target contract with activity schedule).
Tenders were invited in February 2019 and completion is due by 2022, four years later than originally planned.
Transparency and fairness
Trust chief executive Toby Lewis says, ‘We chose NEC4 as it is recommended for public sector organisations by the Government Construction Board and the Infrastructure and Projects Authority. The use of ECC Option C fosters a strong and effective partnership approach to the management of the contract and provides increased transparency and fairness for both parties.’
The Trust says total bids for the various design-and-construct and build-only packages must not exceed £267 million. It will then work collaboratively with the preferred bidder to mitigate risk and further reduce costs, with 50% of savings added to the contractor’s risk management payment.
When completed, the hospital will be the main acute hospital for nearly three quarters of a million people in north and west Birmingham and Sandwell borough. It will have around 683 beds and 13 operating theatres.
Innovative design features will include a fully enclosed winter garden, car parking on the ground and first floors to improve security for patients and staff, and full separation of clinical activities from public and non-clinical services.