Babcock and UK MoD at loggerheads over bill for increased Type 31 programme expenses
A rendering of the UK RN's future Type 31 frigate. (Image: UK MoD/Crown Copyright)
The shipbuilder is building five frigates for the UK RN under a £1.25 billion contract awarded in 2019, shaking out at around £250 million per ship.
To date, Babcock said it had seen revenues of £600 million related to the project but seen no profit on the programme.
Over the course of FY2023, Babcock said it had been in a dialogue with the UK MoD 'about the contractual position regarding additional forecast costs resulting from certain material macroeconomic changes that were not foreseen at contract inception'.
The shipbuilder said these had increased the actual and projected programme costs to deliver
Already have an account? Log in
Want to keep reading this article?
Read this Article
Get access to this article with a Free Basic Account
- Original curated content, daily across air, land and naval domains
- 2 free stories per week
- Personalised news alerts
- Daily and weekly newsletters
Unlimited Access
Access to all our premium news as a Premium News 365 Member. Corporate subscriptions available.
- Original curated content, daily across air, land and naval domains
- 14-day free trial (cancel at any time)
- Unlimited access to all published premium news
More from Naval Warfare
-
Intermarine and Leonardo unite for Italian Navy minehunter contract
Five modern minehunters will undertake sweeps of leading maritime areas of interest.
-
India pauses self-reliance in defence manufacture as it turns back to international OEMs
Maritime security concerns has led India to delay its pursuit of self-reliance in defence manufacturing and procurement as it makes urgent orders from international OEMs due to maritime security concerns.
-
Lockheed Martin strengthens Spanish SPY-7 radar supply chain
The global defence giant chose a Spanish firm for its work on the Bonifaz-class frigate.