黑洞社区

Laing O鈥橰ourke is hoping it can draw a line under the huge losses it has racked up on a hospital scheme in Canada after the firm said a local contractor will now carry out the remaining second phase of the work.

Last January, the firm said the PFI hospital job had blown a 拢93m hole in its accounts.

That writedown on the Centre Hospitalier de l鈥橴niversit茅 de Montr茅al (CHUM), which the firm is delivering in joint venture with Spanish contractor OHL, was disclosed in Laing O鈥橰ourke鈥檚 annual report.

The first phase, which Laing O鈥橰ourke is responsible for, had been due to be handed over in April 2016 but the firm was forced to admit 鈥渟ubstantial completion鈥� had been delayed until March last year.

In an update on the scheme, Laing O鈥橰ourke chief executive Ray O鈥橰ourke said phase one had been handed over with full patient transfer completed in October.

He added the firm has now handed over building work on the second phase of the job to Canadian contractor Pomerleau. Around 15% of the scheme still remains to be finished.

O鈥橰ourke said Pomerleau would be the principal contractor on the deal and admitted: 鈥淭he project has resulted in significant financial losses for the Laing O鈥橰ourke Group and minimising further risk on Phase 2 has been a priority.鈥�

This phase involves demolishing an old hospital 鈥� which is set to take a year to complete 鈥� and replacing it with outpatient services along with clinical and admin offices as well as a car park and amphitheatre.

O鈥橰ourke said the deal with Pomerleau was worth 拢235m and added that the firm would be retaining a team in Canada to 鈥渆nsure that Phase 1 continues to run smoothly鈥� as well as keeping an eye on the Montreal-based contractor鈥檚 progress on phase two.

黑洞社区 first revealed Laing O鈥橰ourke was facing heavy losses on the CHUM scheme back in November 2016.

Laing O鈥橰ourke was brought in by OHL to help design and build the giant project (pictured) 鈥� which is the largest healthcare construction project in North America at 3 million ft2 across 21 storeys and carries a C$2.1bn (拢1.2bn) price tag 鈥� less than 12 months into the scheme at the end of 2011.

The two firms are building the hospital in a PFI consortium called Construction Sant茅 Montr茅al, which also comprises UK-based investor Innisfree and French firm Dalkia.

O鈥橰ourke said the news now meant the firm could finalise its latest annual accounts, for the year ending March 2017, which he said would be filed at Companies House at the end of this month.

He said the group results will show a profit 鈥� although he admitted this was before exceptional items, which are expected to include the CHUM project.