Reports that the Interserve/Kier jv, the preferred bidder with Severn Trent Water for its £100 million upgrade of its Frankley Water Treatment Works near Birmingham, have parted company, have been confirmed by the water company.
A statement issued by Severn Trent said:
“Following extended negotiations with preferred bidder Interserve, and its subcontractor Kier Group, Severn Trent has decided to find a new way forward on the contract for the treated water contract on its Birmingham Resilience Project.”
“We’re absolutely committed to the project and confident that we will still deliver on time and to budget.”
Reports suggest that following a six month Early Contractor Involvement period, the deal foundered after the failure to agree on price, with the jv taking the view that the contract value should be closer to £115 million- £130 million.
North Midland Construction is tipped as among a number of other contractors Severn Trent is now talking to.
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