Pochin and Willmott Dixon replace contractor on schemes worth £50m in Conwy and Newport

The contractor formerly known as HBG has been replaced by rivals on two schemes in Wales worth a total of almost £50m.

Bam Construct has lost the contract to build a northern base for the Welsh assembly in Llandudno Junction in Conwy and academic buildings in Newport for the University of Wales (pictured).

It was appointed to the £20m north Wales scheme in 2006, but then faced lengthy delays partly owing to a redesign last year to make the office carbon neutral.

EU procurement rules then dictated that the job be retendered. Bam put in a bid, but lost out to Cheshire contractor Pochin Construction, which was due to start work this week.

The original completion date for the base was this year; the Welsh assembly is now aiming for an opening date of spring 2010.

First minister Rhodri Morgan said: “The decision to re-procure the contract will be fully justified owing to the improvements made and the demonstrable value for money achieved.”

The building, which is to be sited on a former Hotpoint site, was first announced to the assembly in 2004.

Bam has also been replaced on a £26m scheme to build student halls for the University of Wales.

Bam carried out early work on the project under a two-stage tender agreement, but it is understood that the client considered its price too high at the second stage. The work will now be undertaken by Willmott Dixon.

The city-centre campus is a joint scheme between the university, Newport council and Newport Unlimited, the urban regeneration company for the city. It will provide a home for the Newport business school and the digital media, film and design elements of Newport School of Art, Media and Design. It was designed by ڶ Design Partnership and is due for completion in 2010.

A Bam spokesperson said: “There are no ill feelings about the University of Wales and we wish both projects well. Bam is fortunate to be winning a lot of work at the moment and all the regions are busy.”