What's Happening?
Wates Construction has assumed responsibility for a £73.1 million contract to upgrade prison facilities for the Ministry of Justice (MoJ) after ISG's collapse into administration. The contract, part of the MoJ's Contingency Response Programme, involves critical upgrades across six sites in England, impacting prison and court capacity. Wates will deliver design and construction works using modern methods, including design for manufacture and assembly. The contract is set to run until February 2028, with Wates acting as principal designer and contractor under relevant regulations. The project includes extensions and maintenance work at various prison sites and Liverpool Magistrates’ Court.
Why It's Important?
The takeover by Wates Construction ensures continuity in critical justice infrastructure projects, which are essential for maintaining prison and court operations. This development highlights the importance of contingency planning in public sector projects, especially following contractor failures. The use of modern construction methods may improve efficiency and reduce costs, setting a precedent for future public infrastructure projects. The situation underscores the need for robust frameworks to manage contractor risks and ensure project delivery.
What's Next?
Wates will proceed with design validation and cost forecasting, coordinating subcontract procurement and stakeholder engagement. The firm must agree on logistics strategies and health and safety methodologies before full site commencement. The MoJ will monitor progress closely, with potential additional packages awarded under the same framework. The project’s success could influence future public sector procurement strategies and construction practices.
