A consortium led by Bovis Lend Lease was this week tipped to be named preferred bidder on a £146m PFI hospital project.
The project, in Havering, east London, is the first of the NHS’ three delayed flagship PFI schemes to appoint a preferred bidder.

The projects, which are in Havering, Roehampton and Aylesbury, have a combined value of £500m. They have been held up by at least six months by disputes with Unison over the terms of the hospital staff’s working contracts.

Although the Bovis’ Catalyst consortium was expected to beat off competition from Bouygues, sources close to the project said the disagreements between the government and Unison had yet to be ironed out.