THE construction firm being lined up to deliver the new acute hospital at Overdale is a “stable company”, the Health Minister has said it emerged the government’s preferred contractor has recorded losses totalling £136 million since 2022.
Deputy Tom Binet stressed that the New Healthcare Facilities Programme team had “done their homework”, after it was announced that Bouygues UK will enter into a professional services agreement with the government.
The firm, which is a subsidiary of Bouygues Construction, has been appointed as the preferred tenderer in the procurement process for a main works delivery partner for the new acute hospital at Overdale.
Bouygues UK has delivered a number of health infrastructure projects over the past two decades, including Barnet Hospital, Broomfield Hospital and the Grafton Way Building for University College London Hospitals.
Deputy Binet said the company was appointed as the preferred tenderer following a “long and very comprehensive process”.
According to Bouygues Construction’s financial reports, Bouygues UK recorded a loss of more than £30 million last year, following losses of around £60 million and £40 million in 2023 and 2022 respectively.
Asked how confident he was in the contractor’s financial stability, Deputy Binet said: “A huge amount of background work has been done on this.
“Hospital building has been very difficult territory for all international builders in recent years, particularly since the Ukraine invasion.”
He highlighted that Bouygues UK’s parent company had injected around £129 million into the business over the last three years.
“It’s a stable company,” he continued.
“The team have done their homework on this to make sure they are comfortable with it.”
He also said that “the parent company will be giving a guarantee” in relation to the project.
The government has said that Bouygues UK will work closely with the New Healthcare Facilities Programme team “to refine their proposals, confirm their supply chain and price and prepare for the main works in early 2026”.
Deputy Binet added: “I’m very hopeful that this will be signed before the end of this parliamentary term.
“Nothing is guaranteed, but we are fairly certain.”
The government has also stated that a reserved tenderer has been confirmed to ensure “commerciality and resilience should it not be possible to agree final contract terms with the preferred tenderer”.
