Both Balfour Beatty and Kier have told the NHS trust behind the stalled Midland Met Hospital that they want their expected £1m bid costs to be paid for if they miss out on the deal to complete the work.

Both were among five firms that attended an open day held by the trust in the autumn to find a replacement contractor for Carillion which was carrying out work on the Birmingham hospital before it went bust a year ago this month.

Balfour Beatty, which is onsite carrying out an early works programme that is due to wrap up this May, and Kier’s demands have been revealed in minutes published ahead of the latest monthly board meeting of the Sandwell & West Birmingham Hospital NHS Trust taking place this morning where chief executive Toby Lewis is set to give an update on the process to find a replacement builder.