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Tyne tunnel bid dies as Carillion breaks up jv

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CONTRACTORS NUTTALL and Vinci lost out this week in their bid for the £185M Tyne tunnel when Carillion pulled out of their consortium after a row over how the work would be carved up.

Carillion became involved in the bid after taking over Mowlem earlier this month, but decided to withdraw after reviewing the project.

In a letter to the New Tyne Crossing director Paul Fenwick, the consortium said that the takeover had led to a 'fundamental change in the way the consortium had originally envisaged how the allocation of work would be distributed.

'We were unable to satisfactorily resolve this issue and it is for this unfortunate reason that we are unable to proceed with this project, ' the letter adds.

Fenwick said that the move was disappointing, but could have a positive impact on time cales: 'We now only need to evaluate two bids, which will take less time.

'In addition, if one bid is clearly superior to the other and meets our criteria then we may be able to appoint a concessionaire without going through a 'best and final offer' stage.' The two remaining bidders are Connect North East, made up of Balfour Beatty and Volker Stein Construction Europe, and a consortium led by Bouygues.

The deadline for tenders is 7 August.

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