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New Royal and Facilities Management Update - May 2018

The collapse of Carillion in January has created two issues that we are working to resolve; establishing a new contract for ongoing facilities management services previously provided by Carillion and completing the new Royal.

Facilities management

Progress is being made regarding the facilities management contract and former Carillion FM staff. The Hospital Company (Liverpool) is working to establish a new company that these workers will transfer to by 1 June. As part of the process of transferring the workers, once the company has been established and dates for transfer agreed, they will be given notice of termination of their current contracts. Their jobs are secure, it is all part of the process and the workers have been informed of this. We have again thanked these workers for their patience and for continuing to provide a great service.

The new Royal

Discussions regarding a new construction partner to complete the new Royal are ongoing. These discussions are very complex and involve a number of organisations and stakeholders including:

  • Funders; Legal and General, the European Investment Bank
  • Government departments from the Treasury and Cabinet Office – the Infrastructure and Projects Authority and the Department of Health’s Private Finance Unit
  • The official receiver’s representatives; PwC
  • The Hospital Company (Liverpool)
  • NHS Improvement
  • Various legal representatives

As you can appreciate with so many interested parties, reaching agreement is not a simple task and this process is taking longer anticipated. Nevertheless, we are doing everything we can to achieve a resolution and we’re hoping that a way forward will be agreed by the end of the month.

The Hospital Company recently commissioned a structural engineer’s review on the construction and we have received a draft copy report of the first phase of this review. The report found that work on the structural issues can be completed in line with other outstanding areas and should not impact further on the timescales for construction. We are currently working through the report with our own structural advisor and are discussing the findings with The Hospital Company (Liverpool).

The funders for the new Royal remain fully committed to the scheme. The Hospital Company (Liverpool) have recently appointed a specialist in restructuring to now oversee the work to deliver the new hospital.

"We would like to reassure anyone concerned about maintenance of the current Royal, that funds have been set aside for ongoing maintenance and patients will have a safe environment for their care."

We would also like to answer the question many people have been asking regarding the lights being on inside the new Royal. The lights are turned on for security reasons and it is The Hospital Company (Liverpool), not the Trust, that is paying for this.

In preparation for construction restarting, we have carried out compliance checks on 18% of the 4809 rooms in the new Royal. Teams are visiting the site to help orientate themselves and revise working practices in line with their new environment.

"We would like to thank you all for your continued patience and will continue to keep you updated."