Laing O’Rourke working on £300m prison originally due to be built by ISG

The Ministry of Justice has confirmed Laing O’Rourke is leading work on a £300m prison scheme that had been due to be carried out by failed contractor ISG.

Along with Kier, Laing O’Rourke and Wates, ISG was one of four firms appointed to the New Prisons Programme – which the Ministry of Justice (MoJ) refers to as the Alliance – that is intended to create 6,000 new places.

But ISG’s collapse into administration last September meant the MoJ needed to find an alternative appointment to build a 1,500 space category C “resettlement” jail called Gredon Underwood near Aylesbury, next to the existing category B Grendon and category D Springhill prisons.

The MoJ opened talks last autumn with O’Rourke in the wake of ISG’s collapse and in statement today said: “Laing O’Rourke is progressing key activities for the new prison at Grendon Underwood as part of the New Prisons Alliance.

“This prison is a crucial part of our long-term strategy to increase prison capacity and ease pressure on the estate.”

The MoJ is expected to make further appointment on the main works in the coming weeks.

Kier, which built HMP Five Wells at Wellingborough, has completed work on HMP Millsike near York, which opened last week, while Wates last November began work on a new, 1,700 space category B prison at HMP Gartree in Leicestershire for £300m.

Laing O’Rourke is also set to build a 1,700 space prison at Chorley in Lancashire, which has been held up by a series of planning wrangles.