Losses on the Nottingham Tramlink project will be a blow to Vinci’s UK construction business, which has suffered losses of £37m and £7m in the last two years of reported accounts for its building arm.
(PRWEB UK) 19 November 2014
It follows a report in the Construction Enquirer on the 27th October 2014 that an Easter handover date is now likely once final testing is complete, despite the project being due for completion by the end of the year. The official word is that it will now be finished sometime in the first half of next year.
The delay would leave the French contractor facing a huge bill for liquidated damages that could run into tens of millions of pounds including labour and materials cost overruns on the £423m project.
Vinci said it had implemented a policy of reducing bidding for UK projects while its new management team strives to complete the £232m civils element of the project. But the problems encountered are reported to have led to some completed work having to be ripped out and redone and several subcontractors deciding not to continue on the job.
The group confirmed that it had run into difficulties with several contracts in the UK after issuing a trading statement for the third quarter, before revealing that the voluntary scaling down of UK activity was responsible for an £80m fall in revenue during the period.
Losses on the Nottingham Tramlink project will be a blow to Vinci’s UK construction business, which has suffered losses of £37m and £7m in the last two years of reported accounts for its building arm. This is in contrast to its civil engineering business, which has managed to remain in profit reporting rapid growth from around £150m to close to £400m in recent years.
Prominent project management consultancy and training course provider, ILX, says the news shows that even organisations with a proven track record in project management are not immune to problems that can result in delays and cost overruns.
Global Head of Marketing, Kevin Tewis, said: ‘News of this significant delay to the Nottingham Tramlink project just goes to show that even companies of the standing of Vinci are not immune to experiencing problems when it comes to ensuring delivery of major projects on time.
‘One or more best practice principles have been neglected somewhere along the line in regards to this project. ILX Group can help organisations to identify points of weakness in their project management approach and bridge the gaps through the application of our consulting services and accredited project management training,’ he added.
ILX is a leading global provider of best practice learning solutions and consulting services and is a market leader in PRINCE2 training. Operating across 100 countries, they have delivered learning solutions to corporate, public, and consumer audiences for over 25 years. They have trained over 100,000 learners in more than 5,000 organisations across their virtual and online learning programmes, as well as in classroom environments.
PRINCE2® is a registered trade mark of AXELOS Limited.