NEC4 chosen to complete major Midlands hospital

NEC4 chosen to complete major Midlands hospital

The complex and challenging project of completing a major part-built hospital in the UK is being procured under an NEC4 Engineering and Construction Contract (ECC) worth up to £267 million.

The state-of-the art Midland Metropolitan Hospital near Birmingham was being delivered under a 30-year, £430 million private-finance contract by a Carillion-led joint venture. But, with construction just two-thirds finished, the contract was terminated last summer following Carillion’s insolvency.

Client Sandwell and West Birmingham Hospitals NHS Trust now has government funding to complete the 10-storey building directly under an NEC4 ECC Option C (target contract with activity schedule).

Tenders were invited in February 2019 and completion is due by 2022, four years later than originally planned.

Transparency and fairness

Trust chief executive Toby Lewis says, ‘We chose NEC4 as it is recommended for public sector organisations by the Government Construction Board and the Infrastructure and Projects Authority. The use of ECC Option C fosters a strong and effective partnership approach to the management of the contract and provides increased transparency and fairness for both parties.’

The Trust says total bids for the various design-and-construct and build-only packages must not exceed £267 million. It will then work collaboratively with the preferred bidder to mitigate risk and further reduce costs, with 50% of savings added to the contractor’s risk management payment.

When completed, the hospital will be the main acute hospital for nearly three quarters of a million people in north and west Birmingham and Sandwell borough. It will have around 683 beds and 13 operating theatres.

Innovative design

Innovative design features will include a fully enclosed winter garden, car parking on the ground and first floors to improve security for patients and staff, and full separation of clinical activities from public and non-clinical services.

Recent Projects

Recent news

Understanding NEC4 Option X4 on parent company guarantees

Understanding NEC4 Option X4 on parent company guarantees

Option X4 in the NEC4 ECC and other NEC4 contracts (except short forms) is an optional procedure which enables parties to use a parent company guarantee (PCG) as a form of contract security.

Read more
New NEC Practice Note: NEC4 Engineering and Construction Contract (ECC) Conflict Avoidance Clauses

New NEC Practice Note - NEC4 Engineering and Construction Contract (ECC) Conflict Avoidance Clauses

NEC has released a new conflict avoidance practice note, providing guidance on the conflict avoidance clauses and the conflict avoidance process.

Read more
Assuring equipment costs on NEC4 Option C and E contracts

Assuring equipment costs on NEC4 Option C and E contracts

This article provides guidance on what to look for when auditing equipment costs on NEC4 Option C and E contracts.

Read more
View all news