A consortium led by Brookfield Multiplex has edged out rivals Laing O’Rourke and BAM Construction to take preferred bidder status on a £165m privately-financed children’s hospital in Edinburgh.
The project team will design, build and maintain the new Royal Hospital for Sick Children and Department of Clinical Neurosciences, with construction work expected to start in autumn 2014, and completion in the summer of 2017.
The Integrated Health Solutions Lothian consortium also includes architect HLMAD, Australian bank Macquarie Capital and Bouygues E&S FM as facilities management provider.
The project is the first acute hospital facility to be procured under the Scottish government’s Non Profit Distributing (NPD) model, which was introduced as an alternative to the traditional private finance initiative.
It has three core principles of enhanced stakeholder involvement in the management of projects, no dividend bearing equity and capped private sector returns.
The project is the first acute hospital to be procured under Scotland’s Non Profit Distributing model
The three bidding consortia were selected in March 2013, and their bids evaluated by 20 staff from client NHS Lothian. The information was sifted by a core evaluation team complemented by technical, financial and legal advisers.
The Brookfield consortium will also undertake to provide employment and training opportunities during the construction phase.
Peter Reekie, director of finance and member of the Project Steering Board, Scottish Futures Trust, said: “It’s fantastic to reach this milestone on such a significant hospital project. Robust project preparation and the strength of the NHS Lothian project team, combined with SFT’s simplified NPD programme approach had led to a highly efficient and competitive procurement.
“I look forward to working with the team and preferred bidder to deliver construction activity later this year, which will be welcome news to many local businesses.”
Laing O’Rourke Construction’s bid also included architects Keppie Design and Hassell, with John Laing Investments on finance and Serco as FM provider.
BAM Construction was teamed with Balfour Beatty on construction and finance, along with architect BDP and BAM FM and Cofely WorkPlace on the FM side.
