Bam has backed out out of a project to build a new £671m children’s hospital in Belfast just weeks after it was named as one of the contractors.
The firm was due to develop the Royal Victoria Hospital as part of its ongoing joint venture with Northern Ireland-based Graham Construction.
However, a Bam spokesperson confirmed to Construction News it had taken a “commercial decision” not to proceed with the scheme.
“Graham will now go ahead with the customer, and Bam’s decision will not impact on the delivery of the hospital,” the spokesperson added.
Philip McClay, a director at Northern Ireland’s Department of Health, reportedly told a committee on Thursday (3 April) that Bam “withdrew at a late stage in the discussions” and its withdrawal was by “amicable agreement”.
CN understands that Bam did not sign any contracts for the project with Graham or client the Northern Ireland Executive (NIE), and work on the five-year build has just commenced.
“Ahead of the formal signing of contract, Bam made the decision to withdraw from its partnership with Graham,” the NIE told CN.
“Graham provided assurances to Belfast Trust and the department that Bam’s decision would not materially alter its ability to deliver the project.
“With these assurances in place, the contract was signed and construction work has begun as planned.
Bam’s reasons for exiting the partnership are a matter for them and it would not be appropriate for us to make any comment about this.”
The proposed 10-storey hospital has been hit by numerous delays since the scheme was first unveiled in 2013. Initial costs were put at £250m, but have since ballooned.
The construction works are now valued at £389m, while the overall development cost is £671m.
The new 52,000 square metre hospital is due to cater for up to 45,000 children annually with 155 beds, 10 theatres and an emergency department.
The joint venture between Graham and Bam (GBHP) is behind a string of other major healthcare projects in Belfast.
The firms completed the new Belfast Maternity Hospital last April, but it is yet to open. Costs spiralled from £57m to £97m after delays partly due to dangerous bacteria found in its its water pipes.
GBHP also delivered a £95m acutes services block and £86m ward at Ulster Hospital, as well as a £33m mental health inpatient facility at Belfast City Hospital.