Northumbria Healthcare and contractors Lendlease have confirmed they've settled a multi-million pound court case over a range of defects found in the construction of the £95m Northumbria Specialist Emergency Care Hospital (NSECH) in Cramlington.
The settlement remains confidential, but Northumbria Healthcare had initially sought more than £140m, claiming that £70m was needed to build a temporary structure in order to "decant" NHS hospital services - move them to new premises - while wide-ranging work takes place to fix issues in the main building.
The "defects" identified range from those relating to fire safety "including fire-stopping, fire dampers, fire doors, smoke clearance, smoke curtains and use of lifts for evacuation", issues with the "fire-rating" of door frames, and the "fire resistance" of external walls. It is understood that work to fix fire safety issues and ensure public safety took place prior to action being taken.
Other issues related to flooring, external walls, the hospital roof, pipework, the drainage system, M&E, landscaping and the hospital's helipad. M&E refers to mechanical and electrical systems. As long ago as 2018, the hospital trust confirmed that remedial fire safety work had taking place. At this stage, the Trust has said it is not yet at a position to discuss next steps needed to fix outstanding issues.
However it is understood that a group has been convened - including senior medics - to consider how moving hospital services into a temporary building during remedial works would work. The NHS trust and lead contractors have been clear they are assured of the safety of the public.
NSECH opened in 2015 and cost £95m to build and fit out. Previous rulings as part of the now settled legal action taken against contractor Lendlease - who involved its own sub-contractors including firms Balfour Beatty Kirkpatrick, Horbury, MPB, Iko, Keppie and Briggs Amasco in the action - highlight the range of defects identified. All of the claims and counter-claims arising from the legal action have now been settled.
According to a May 2022 ruling in the case: "The Claimants' total claim is for damages in the sum of £140 million approximately. A large part of the claim, some £73 million, is claimed as the cost of 'the decant scheme', comprising the decanting of the hospital into a specially constructed four-storey building during the proposed remedial works, so that the hospital can continue to function and maintain the level of care necessary for patients subject to critical or emergency medical conditions."
The NHS trust confirmed it was assured of the "continued ongoing safety for patients, staff and visitors". In 2018, a n NHS worker at the trust questioned whether there were fire safety issues with the then three-year-old building after seeing firefighters regularly at the hospital. At the time, firefighters from Northumberland Fire and Rescue Service had been offering advice to correct “minor defects”, while hoses on-site were a precautionary measure during external works.
At the time, the health worker said they had seen cladding and door frames removed, with the Northumbria NHS Trust saying that the replacements were part of “standard practice snagging” works, where minor faults have been found. Northumberland Fire and Rescue Service said it had been working with the NHS to "ensure that all fire safety measures are in place and the premises are compliant with fire regulations".
Following confirmation of the settlement, which has not been disclosed, the NHS trust and Lendlease issued the same statement, saying: "Northumbria Healthcare NHS Foundation Trust (the Trust) and Lendlease can confirm that a settlement has been reached in respect of its ongoing litigation with Lendlease, which was due to be heard in court starting on 26 October 2022.
"The terms of the settlement remain confidential but the Trust can confirm that the settlement allows the Trust to ensure the continued ongoing safety for patients, staff and visitors of Northumbria Emergency Specialist Care Hospital."
A Balfour Beatty spokesperson said: “We are pleased to have reached an agreement with Lendlease in relation to the Northumbria Specialist Emergency Care Hospital. The details of the agreement are confidential and as such we are unable to comment further at this time."
The other contractors involved in the litigation have also been contacted for comment.
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