Birmingham rejects Amey £245m settlement deal

 

Birmingham City Council has rejected a £245m payoff offer from Amey in order to settle a long-running dispute over a 25-year PFI contract for the city's roads and bridges, according to reports.

The standoff with the local authority could put the security of Amey's future at risk.

Some have speculated that the situation could also interfere with the delivery of the Commonwealth Games although the council has denied this.

Reports have suggested parent company Ferrovial could remove support and financial backing from the troubled contractor.

The Spanish giant is trying to sell Amey and recently slashed the asking price by £660m leaving it valued at £88m.

As well as the Birmingham debacle that saw Amey lose a costly legal case over its interpretation of the contract, it also looks set to part ways with Trafford Council on its 23-year joint venture contract.

A council scrutiny committee has found a series of problems with the contract, including poor performance, failure of the self-monitoring aspects and poor communication. It recommended the council ‘consider alternative models of service delivery... with a view to ending the contract with Amey’.

Amey is also involved in a dispute in Sheffield with subcontractor Aggregate Industries - over difficulties in its PFI in Sheffield. According to report, Aggregate Industries initially made legal claims amounting to £32m.

A Birmingham City Council spokesperson said: 'We take contract management very seriously and where a contractor is found to be underperforming then appropriate action will be taken. We remain in discussions with Amey to find the best way forward and this current position will not impact on the delivery of the Birmingham 2022 Commonwealth Games.'

An Amey spokesperson said: 'As we have said before, the ongoing dispute in relation to the Birmingham Highways PFI deal remains. We are committed to reaching a resolution which is in the best interests of all sides, and importantly delivers for the people of Birmingham as they look forward to hosting the Commonwealth Games in 2022.

'We have worked hard with a range of stakeholders to achieve this but so far have not been able to reach agreement. If we do not reach a settlement we will continue to meet our obligations under the contract for the remainder of its term to 2035.'

Register now for full access


Register just once to get unrestricted, real-time coverage of the issues and challenges facing UK transport and highways engineers.

Full website content includes the latest news, exclusive commentary from leading industry figures and detailed topical analysis of the highways, transportation, environment and place-shaping sectors. Use the link below to register your details for full, free access.

Already a registered? Login

 
comments powered by Disqus
 
 
highways jobs

Environmental Health Officers within Environmental Protection, Health and Safety and Food Safety

Kirklees Metropolitan Council
£30,507 - £32,878
We expect candidates to have expertise or qualifications in one or more of the relevant areas of Air Quality, Acoustics and/or Contaminated Land. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Assistant Director

Hammersmith & Fulham London Borough Council
£92,826 - £111,231
This is an ideal opportunity for an expert waste management professional to make a real impact and to lead the service to outstanding. Fulham, London (Greater)
Recuriter: Hammersmith & Fulham London Borough Council

Environmental Health Officer and Grad EHO – Private Sector Housing with benefits*

Camden London Borough Council
£33,122 - £42,490
Exciting opportunity for a highly organised and enthusiastic Environment Health Officer or a newly qualified graduate working towards... Camden, London (Greater)
Recuriter: Camden London Borough Council

Director of Inclusive Growth and Public Sector Reform

West Midlands Combined Authority
£110,000
The role requires someone with a talent for innovation and a passion for designing and implementing public services. West Midlands Region
Recuriter: West Midlands Combined Authority

Vehicle Technician x3

Sandwell Metropolitan Borough Council
£24,313 - £28,785 per annum
All Candidates must hold a clean category C driving licence (CPC not required). Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Ugobus Driver (multiple positions)

Essex County Council
Up to £18938.0 per annum
Primary locations will include Clacton and Harlow only. Please note that we have permanent, fixed term and relief contract opportunities on a part tim England, Essex, Chelmsford
Recuriter: Essex County Council

Corporate Director of Neighbourhoods and Climate Change

Durham County Council
£148,583
You will manage a range of front-line services including bins and waste, transport, environmental health, technical services, partnerships and... Durham (County)
Recuriter: Durham County Council

Tenancy Enforcement Assistant

Royal Borough of Greenwich
£22.377 - £23.607
Looking for individuals who have an interest in the environment with good customer service skills, flexible approach to work and a good team player. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Head of Programme Management Office

Manchester City Council
£60,857 to £65,865
As the Head of PMO, you will define and maintain standards for project management within the Highways Service. Manchester, Greater Manchester
Recuriter: Manchester City Council

Highways Development Specialist

Manchester City Council
£60,857 to £65,865
Seeking a highly capable strategic leader to join the team to develop our strategic pipeline of works and financial model. Manchester, Greater Manchester
Recuriter: Manchester City Council

Civil Engineering Technician Apprentice

London Borough of Richmond upon Thames and London Borough of Wandsworth
£214 per week
Are you looking to gain vital work experience as an Apprentice? London (Greater)
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Assistant Planner/Planner

Kirklees Metropolitan Council
£19,554 - £32,878
The ideal candidate will already have... Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Principal Engineer

Liverpool City Council
£37,849 - £42,683
The successful candidate will... Liverpool, Merseyside
Recuriter: Liverpool City Council

Environmental Health Officer (Food, Health & Safety) & Environmental Health Technical Officer

Dacorum Borough Council
£24,710 to £39,034
You will be highly motivated and be expected to deliver against a challenging work plan. London (Greater)
Recuriter: Dacorum Borough Council

Director of Public Health

Worcestershire County Council
Competitive Salary
We’ll look to you to take responsibility for the high-calibre delivery of... Worcestershire
Recuriter: Worcestershire County Council

Street Cleansing Operative Driver (Large Goods Vehicles)

Redbridge London Borough Council
£22,377 to £23,607
We are looking to recruit staff for both our day service and evening service. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Street Works Officer

Enfield London Borough Council
£29,766 to £30,708
he Network Coordination Team are looking for an enthusiastic self-motivated person to join its Street Works Team. Enfield (City/Town), London (Greater)
Recuriter: Enfield London Borough Council

Traffic Management Group Manager

Devon County Council
£61,593
This is an exciting time for the Service with the immediate introduction of a new Permit scheme and significant programme of redesign and... Devon
Recuriter: Devon County Council

Principal Engineer (Highway Safety)

Kirklees Metropolitan Council
£30,507 - £38,813
Are you looking for an opportunity to work as a Principal Engineer, whilst still being able to develop your career and have a good work-life balance? Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Principal Engineer (Highways Operations)

Kirklees Metropolitan Council
£30,507 - £38,813
Are you looking for an opportunity to work as a Principal Engineer, whilst still being able to develop your career and have a good work-life balance? Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council