The contractor confirmed losses on the project ran to 拢93m so far earlier this year
Laing O鈥橰ourke has finally completed the first stage of a PFI hospital scheme in Canada, on which it has racked up 拢93m of losses to date.
Laing O鈥橰ourke in a statement said that following the achievement of substantial completion on the first stage of the 21-storey superhospital in Montreal there would now be a transition period of six months to test the hospitals systems prior to admitting the first patient in October.
鈥淭his will trigger stage two of the project, as patients from adjoining St Luc Hospital enter the new facility, enabling St Luc鈥檚 demolition,鈥� the statement added.
Laing O鈥橰ourke was brought in to help design and build the C$2.1bn (拢1.2bn) hospital by Spanish contractor Obrasc贸n Huarte Lain (OHL), which is also on the scheme.
OHL, itself, revealed a loss of 鈧�105m (拢90m) on its deal in November last year for the Centre Hospitalier de l鈥橴niversit茅 de Montr茅al (CHUM).
The two firms are building the hospital in a PFI consortium called Construction Sant茅 Montr茅al (CSM), which also comprises UK-based investor Innisfree and French firm Dalkia.
Laing O鈥橰ourke had reported losses on the 3 million ft2 project - the largest healthcare construction project in the region - in its accounts for 2015 and 2014 totalling 拢5m prior to 好色先生TV revealing that the contractor was making a further substantial loss on the project last autumn.
Laing O鈥橰ourke confirmed it had made a 拢93m loss on the scheme in its latest accounts posted on Companies House in January, which contributed to the contractor reporting a 拢246m loss for the financial year to March 2016.
In a letter to clients and staff the firm鈥檚 founder Ray O鈥橰ourke called the Canadian hospital 鈥渁 particularly difficult large project,鈥� adding that the timetable for the build had been revised.
The first phase of the hospital was due to be handed over to the client in April last year, but saw the deadline pushed back to 6 November, but this was also scrapped.
The first phase of the hospital includes 772 beds in single rooms and 39 operating theatres. The completion of phase two of the hospital, comprising a library and an amphitheatre as well as administrative offices, is also understood to have been pushed back from 2019 to 2021.
No comments yet