Another setback for Jarvis as Fife council revokes preferred bidder status on £177m schools PFI contract

Jarvis has lost a £177m PFI contract to build and maintain 10 schools in Scotland.

The withdrawal by Fife council of Jarvis’s preferred bidder status on the £177m PFI contract is the latest blow to hit the loss-making contractor.

Colin Brown, project solicitor at Fife council blamed uncertainty over Jarvis’s financial position for the failure to reach final agreement on the project.

He said that the council had decided to reopen talks with the two defeated bidders to avoid possible delays caused by the timetabling of the recently announced restructuring of Jarvis.

The news is a major setback for Jarvis and the banks that offered it a eight-month lifeline. The recovery plan envisaged Jarvis retaining the contracts it had already won and attracting new business.

Jarvis is currently trying to reach final agreement on a further four contracts where it has won preferred bidder status. These are:

  • £263m contract to build and maintain up to 39 schools for Norfolk County Council
  • Four special schools for Kirklees totalling £65m.
  • £115m contract for two schools in Manchester
  • Two schools in Bangor, Northern Island worth £155m