Follow us on Twitter Follow us on LinkedIn Follow us on Instagram
Daily construction news
Weekly plant news

Construction News

Wed May 23 2018

Related Information
Related Information
Related Information

News » UK » Amey books £200m loss on Birmingham highways contract » published 11 May 2018

Amey books £200m loss on Birmingham highways contract

Amey’s Spanish parent company Ferrovial has reported a loss of €161m for the first three months of 2018 due mainly to its problems in Birmingham.

Amey looks after Birmingham's highways Above: Amey looks after Birmingham's highways

The first-quarter loss includes a €237m (£200m) provision for possible losses on Amey’s contract with Birmingham City Council.

Amey signed a PFI contract with Birmingham City Council in 2010, worth £2.7bn, to look after its highways for 25 years but by 2014 the two parties had fallen out over the contract specification and went running to their lawyers.

The legal dispute reached the court of appeal earlier this year, which found in favour of the council. Amey says it has already invested £350m in the contract.

Ferrovial said that a decline in Amey’s activity in the UK had also had an impact on its first quarter earnings.







Download our free construction news iPhone / iPad app. Sign up to our FREE email newsletters or subscribe to our RSS feed for regular updates on the latest Construction News, Plant News & Contract News. The Construction Index also provides the latest Construction Tenders, Construction Market Data & Construction Law Commentary all FREE.

This article was published on 11 May 2018 (last updated on 14 May 2018).

More News Channels