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Both Balfour Beatty and Kier have told the NHS trust behind the stalled Midland Met Hospital that they want their expected 拢1m bid costs to be paid for if they miss out on the deal to complete the work.

Both were among five firms that attended an open day held by the trust in the autumn to find a replacement contractor for Carillion which was carrying out work on the Birmingham hospital before it went bust a year ago this month.

Balfour Beatty, which is onsite carrying out an early works programme that is due to wrap up this May, and Kier鈥檚 demands have been revealed in minutes published ahead of the latest monthly board meeting of the Sandwell & West Birmingham Hospital NHS Trust taking place this morning where chief executive Toby Lewis is set to give an update on the process to find a replacement builder.

The pair were joined at the open day by Sir Robert McAlpine, Laing O鈥橰ourke 鈥� which has since been appointed to replace Carillion on another hospital scheme in Liverpool 鈥� and Graham Construction.

The scheme, which is being bankrolled by the government, is expected to cost more than 拢400m to complete with the trust hoping the work can be completed in 2022. The hospital had originally been due to open in the middle of last year.

In the minutes on feedback from the event, Balfour Beatty was described as 鈥渆xpect[ing] bid costs of circa 拢1m to be underwritten in the event that they are not successful鈥� while Kier, which the trust said was expected to try and team up with M&E specialist NG Bailey, had also 鈥渞aised the issue of bid costs and underwriting should they be unsuccessful鈥�.

On Kier鈥檚 bid, the minutes added: 鈥淭hey do not have significant large acute healthcare experience and there is a risk they could fail the selection questionnaire stage.鈥�

The minutes also said Graham was 鈥渘ot expected to bid鈥� while they also mentioned Skanska which had been working with the trust earlier last year about taking over from Carillion before pulling out last spring after being lined up to carry out the work.

Skanska did not attend the bidders鈥� day and the trust鈥檚 minutes admitted: 鈥淭he bid investment already made and lost is expected to preclude them [Skanska] from further participation鈥�it is a very low probability that they would now compete for the Midland Met.鈥�

The trust鈥檚 board has also been told 鈥渃ontractors welcomed the trust retention of prior risk relating to Carillion鈥� but had flagged issues over the risks associated with the MEP and fit-out work already carried out.

鈥淐oncerns [were raised] regarding the interfaces,鈥� they said, 鈥渟pecifically energy performance, the retention of existing major plant, the time needed to get comfortable with it and the value for money implications should it end up being replaced.鈥�

The trust said a decision on which one of three shortlisted bidders will be chosen to finish the hospital is expected by the summer after what it called a 鈥渃ompetitive dialogue鈥� process which could take between four to six months.

Among the early works Balfour Beatty is carrying out is roofing, balustrading, temporary heating, glazing, completion of ramps and plantroom cladding.