An NHS trust is taking legal advice in a dispute with contractors over leak-related defects on two £103m building projects.
South London and Maudsley Foundation Trust said the damage could cause delays of at up to nine months, with the cost of the delays presently standing at over £1m, minutes from its board of directors’ latest meeting reveal.
In the minutes, the trust said legal advice was being sought “daily” over problems involving the construction of the £50m Pears Maudsley Centre for Children and Young People (PMCYP) and the £53m refurbishment of its New Douglas Bennett House (NDBH) building.
Integrated Health Projects (IHP), a joint venture (JV) between Sir Robert McAlpine and Vinci UK, is contracted to work on the project.
Work began on site in March 2021 and was due to complete in May 2023, according to Sir Robert McAlpine’s website.
However board papers released by the trust last week said “significant moisture damage” had been found on PMCYP’s fourth floor bathrooms. This had delayed post-completion works that were originally due to begin on 23 March, the trust said.
“Legal advice is being sought on contractual matters with IHP,” it said. “Structural design changes and floor-by-floor testing are now required.”
At NDBH, the trust said “leaks and structural moisture problems” were persisting and intrusive surveys were being conducted by third-party experts.
“Remedial work (drying, redesign, repairs, compliance testing) is estimated to take six to seven months, possibly longer,” the minutes said.
“The drying phase in NDBH has not started due to unresolved water ingress from balcony cladding and concerns over the damp proof membrane. Drying may begin in May, but full building use is unlikely before February 2026. There is significant uncertainty about drying timelines – expert opinions have been sought.
“Legal advice is being sought daily to manage documentation and assign liability for leaks.
“IHP argues the trust contributed to the leaks, a claim strongly refuted by the trust’s legal team.”
The papers said that leak-related delay costs were estimated at “over £1m”, while there was £5m double-running costs from running both an old and new site.
“Some costs may be claimable under contractual provisions if legal action proceeds,” the papers said.
NDBH was originally expected to be completed in October 2022, according to SRM’s website.
IHP was contracted to demolish the original 1970s building and construct a new eight-ward building for adults currently treated at Lambeth Hospital.
The JV was later given the contract to build PMCYP, which will be for young people experiencing anxiety, depression, OCD, self-harm, eating disorders, trauma and autism.
It is understood patients and staff were expecting to move into the NDBH in February following the delays.
However, the papers said full use was “unlikely before February 2026” as the drying phase at the building had not started.
A spokesperson for South London and Maudsley NHS Foundation Trust said: “We are in ongoing discussions with the contractor and are unable to comment on the details of that at this time.
“The delays, as a result of the remediation work required, will be at least a further six to nine months but the final position is still not finalised.
“We are working through the root causes of these delays and the trust will enforce all of its contractual rights and require the construction partner to remedy any defects that it is liable for.”
IHP, Sir Robert McAlpine and Vinci declined to comment.
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James Wilmore