Project Scotland

Edinburgh hospital delayed after Dunne Group folds

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EDINBURGH’S new £150 million Royal Hospital for Sick Children and Department of Clinical Neurosciences looks set to be delayed following the collapse of two construction firms working on the project.

IHS Lothian Ltd, the consortium building the hospital, has informed NHS Lothian that they are reviewing the construction timetable.

The move follows news that the Dunne Group, which was responsible for construction of the concrete frame, ground works and associated support services, had entered administration and ceased trading. Additionally, JB Brickwork, providers of materials and labour, entered provisional liquidation.

NHS Lothian said “early indications” suggest the building will now open in Spring 2018 rather than Autumn 2017 as previously stated.

Progress has also been affected by poor weather and “unavoidable technical construction problems”. IHS Lothian, which comprises Macquarie Capital as sole sponsor and exclusive financial advisor, Brookfield Multiplex (design and build contractor) and Bouygues E&S (facilities management provider) has lessened the impact of some of the issues by increasing staffing and working hours along with altered construction methods. 

Jim Crombie, acting chief executive at NHS Lothian said, “We will continue to work closely with IHS Lothian Ltd to ensure that our state of the art new hospital is delivered as soon as possible. Projects of this scale and, of this nature, are very rarely straightforward and bring with them many complex and sometimes unavoidable challenges. It is important to note that these alterations to the construction timetable will not result in any additional costs to NHS Lothian.

“Whilst this change is frustrating for our patients and staff, we must not forget that construction of this impressive new building is continuing and that much work has already been achieved. In addition, the project has already created a host of new entrant jobs for local people, including apprentices and graduate opportunities.”

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