Two bidders to battle it out for new West Midlands hospital contract

Carillion and Laing O’Rourke with Interserve Support Services make final cut to win contract for £353m Midland Metropolitan Hospital

Midland Metropolitan Hospital is due to open in 2019

Sandwell and West Birmingham Hospitals NHS Trust (SWBH) has shortlisted two bidders for the new £353m Midland Metropolitan private finance 2 hospital.

Carillion and a joint venture between Laing O’Rourke and Interserve Support Services will compete for the contract to part finance, build and maintain the new 670-bed hospital, which will be built in Smethwick.

The news comes after Balfour Beatty announced it had cancelled its bid for the contract.

An SWBH spokeswoman confirmed the two bidders were shortlisted last month. They will submit their draft final bids for the hospital in April 2015.

Midland Met is likely to be seven storeys high and provide around 80,600sq m of hospital space. It is expected to provide capacity for around 81,455 inpatients and 115,045 outpatients every year.

It will be delivered under the government’s PF2 scheme, with £100m of public investment and an additional £253m to be raised from private finance.

It is hoped many suppliers for the project will be locally-based companies, with the trust planning a ‘Meet the Buyers’ event so they can find out more about the scheme.

Laing O’Rourke procurement leader, Andy Carroll, said: “We know West Midlands engineers and manufacturers are innovative, talented and capable of fulfilling our needs, and events such as this allow us to build strong links with SMEs by meeting face to face and seeing what is available in the region.

“When we can procure close to a development site, this helps us to build and maintain a sustainable supply chain and reduce the material mileage accumulated by our building work. It also gives a boost to local businesses and people.”

Construction is due to begin in 2016 with the hospital due to open by 2019.