Skanska has been named preferred bidder to design, build and maintain the new Papworth Hospital at its new location, the Cambridge Biomedical Campus.

Skanska was selected as a preferred bidder for the project, beating its rival Bouygues.

The project will consist of a 310-bed, purpose-built hospital and it will have a research and education institute.

OCS, a member of the consortium, will provide support services such as catering and cleaning.

The project cost is estimated at £165 million (US$270 million), and the construction is set to start in Autumn 2014 and be completed by early 2017. 

Project Director Ken Brewer said:

"While the two bids were both very comprehensive the assessment of the bids followed a very robust process which resulted in the selection of the consortium led by Skanska."

Skanka's Chief Executive, Stephen Bridge, said:

In early October we heard that the Department of Health had cleared the business case to be forwarded to the Treasury for approval and today's announcement will move us closer to realising our vision to provide the highest quality facilities for our patients."The clinical, research and economic case for the new Papworth Hospital is beyond doubt and we look forward to relocating to the Cambridge Biomedical Campus which is fast becoming one of the most vibrant biomedical communities in the world."