Balfour Beatty wins £46m hospital contract

Construction at the 6.5 hectare Ayrshire Central Hospital site is set to start next month, with the integrated mental health and community development expected to be operational in summer 2016.

It will have both out-patient and in-patient facilities, including 206 single en-suite bedrooms, and will cover floor space of approximately 16,000 square metres.

Funding for the project is coming from the Scottish Government’s non-profit distributing (NPD) model, with Balfour Beatty financing, designing and building the development, and operating the concession for 25 years.

Derek Lindsay, NHS Ayrshire & Arran’s director for finance and the senior responsible officer for the project, said he was confident that the “best possible” facility will be delivered.

“Having the right facilities in the right place is important to the people of Ayrshire and Arran, so I am delighted that work will start next month,” he said.

Stephen Gordon, Scotland director at Balfour Beatty Investments, said: “Balfour Beatty has extensive experience in the PPP (public private partnership) health sector and we look forward to working with NHS Ayrshire & Arran to provide a high-quality healthcare facility for the local community.”

The news comes after Balfour Beatty last month issued a profits warning attributed to continuing difficulties in its UK construction arm.

The group is also mulling the sale of US project manager Parsons Brinckerhoff, which it bought in 2009, and it has been looking for a new chief executive after Andrew McNaughton stepped down, having been  in position for less than 18 months.