Trust says O鈥橰ourke was 鈥渘ot prepared to take any risk鈥 on the job

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The Royal Liverpool Hospital in January 2018.

Mace has been called in to help complete the new Liverpool hospital stalled by Carillion鈥檚 collapse, according to the NHS trust behind the scheme.

In October the Royal Liverpool and Broadgreen Hospitals NHS Trust confirmed Laing O鈥橰ourke would manage the construction contract of the Royal Liverpool Hospital (pictured) but new documents reveal Mace has also been brought in to get the 拢350m project back on track.

In published ahead of tomorrow鈥檚 meeting of the trust鈥檚 board it was revealed that Mace had been brought in to help manage the risk associated with the scheme 鈥 and that O鈥橰ourke was 鈥渘ot prepared to take any risk鈥 on the job.

The papers said: 鈥淭he agreement with Laing O鈥橰ourke is such that they will have a very different set of responsibilities to those carried by Carillion.

鈥淟aing O鈥橰ourke was not prepared to take any risk on either construction cost or timetable to complete 鈥 these risks sit with the Trust which we will manage this through Mace and the in-house project team.鈥

Mace is acting as the project manager, contract administrator and cost advisor.

The papers also revealed that Laing O鈥橰ourke, which is also building the neighbouring Clatterbridge Cancer Centre, had already started work on site.

Aidan Kehoe, the trust鈥檚 chief executive, said: 鈥淎fter such a challenging and turbulent time over the last 11 months, we are glad to see work begin back on the site and we are looking forward to the New Year with fresh optimism.

鈥淲ith Laing O鈥橰ourke and others in place, more contractors to follow in the coming months and work returning to the site, our staff are now refocusing their attention on our plans for moving in.鈥

The trust revealed the contractor had commenced some minor early works and that the main construction work will start early in the New Year.

Andy Thomson, Laing O鈥橰ourke鈥檚 project director who also led the delivery of the new Alder Hey Children鈥檚 hospital, said: 鈥淭he team is now mobilising with important early work already underway. The pace of delivery will grow in the New Year and all involved are energised and committed to completing the new Royal for the people of Liverpool.鈥

In an effort to protect itself from another Carillion-style collapse, the trust has also revealed that it will be making payments directly to Laing O鈥橰ourke鈥檚 sub-contractors.

In his executive summary, Kehoe said: 鈥淭his means that should the same situation befall Laing O鈥橰ourke as it did Carillion, then the Trust would simply look to appoint a new contract manager. Sub-contractors would continue to work and get paid as normal.

鈥淲hile some delay may be inevitable, the sub-contractors would be kept whole and there would be no risk to the project being completed.鈥

The trust also made mention of the principal funders of the PFI arrangement that was scrapped, Legal & General and the European Investment Bank, saying they had 鈥渢aken considerable losses on their original investment鈥.

It said: 鈥淎ll parties have worked extremely hard to resolve the issues caused by Carillion, and the lenders鈥 have shown tremendous goodwill in reaching a final solution.鈥

The trust said the termination agreement provided 鈥渟ignificant savings to the public sector and represents good value for money for the taxpayer鈥.

Mace has all been contacted for comment.