The future of the Royal Liverpool Hospital development must be decided by September 30, 2018.
Discussions are becoming more frantic as the contractual “long stop date” is nearing on September 30.
The contract for the works details that the handover should have been completed by March 31, 2017. This means that the build was well behind schedule when construction firm, Carillion, collapsed earlier this year.
If an agreement is not reached by September 30, the contract is likely to be classed as in default and will result in a complete termination of the current agreement.
If this is to occur, the build will need to go out to tender once again which could mean that the new hospital will not be completed for years to come.
Local MP, Louise Ellman, held emergency meetings with Health Minister Steve Barclay last week in order to find a resolution.
In a written response to Ms Ellman, the Minister agreed that reaching an agreement about how to proceed before September 30 is of vital importance.
He said: “I am absolutely clear that we cannot allow the current situation to continue indefinitely. We need to bring the discussions with the lenders to a head, and agree the way forward.
“These discussions are given added impetus by the existence of a key milestone on September 30, the so-called ‘longstop date’.
“The contract required the hospital to be handed to the Trust by March 31st 2017, and the longstop date for this to happen is 18 months later, namely 30th September. Clearly this milestone for handover is not going to be met either.
“Once that date is passed, the Trust has the option of declaring that the project is in default, which we would expect to be followed by the contract being terminated.
“If it looks like an agreement cannot be reached with lenders soon, I have indicated to the Trust that I will support them in whatever steps they need to take, be it termination or some other option, to ensure this project is not delayed any further.”
He added: “Of course, one option would be to follow a similar approach as in Birmingham where (following a consensual termination of the project agreement) the Government has agreed that the public sector should bring in its own contractors to complete the project at the Midland Metropolitan Hospital.
“But this is not the only option available in Liverpool where the physical issues with the building and the financial position are different.
“The timetable for opening the hospital will be a very important factor in deciding between the options.
“All the viable options are being discussed very actively at present, involving all the parties.
“Everyone is agreed that, as I say, the current situation is not acceptable, and that we need to be clear on the way forward by the end of September, so that works on the site can restart as soon as possible thereafter.”