Star date: 19th April 2021

'UNPREDICTABLE DELAYS' TO PRECINCT HIGHWAYS WORKS COULD COST COUNCIL OVER £1.2MILLION

Since November 2020, Salford City Council has been unable to pay contractor Eurovia additional costs of £1.265million for work on improvements to highway infrastructure, subways, landscaping and lighting around Salford Precinct.

The original total costs for the works was for £3.14million, paid via Greater Manchester Growth Deal funding, but due to the pandemic, 'drainage redesign' and knotweed, the cost has mushroomed to £4.4million, and the Council might have to stump up the extra costs from its own budget.

Full details here...

Salford City Council could be liable for £1.265million to cover the overspend on improvements to highway infrastructure, subways, landscaping and lighting around Salford Precinct.

The works, part of Delivery Package 4 of the Salford Bolton Network Improvements (SBNI) programme, were originally contracted to Eurovia and approved by the Council at a cost of £2,748,254, to be met via Greater Manchester Combined Authority's (GMCA) Growth Deal fund, with a Qualitative Risks Assessment (contingency) of £401,562, bringing the total to £3,149,816.

However, due to what a Council report calls 'unpredictable delays' caused by 'uncharted underground utilities; drainage redesign due to unchartered utilities; additional structural works to subways; additional footpath works; associated works to mitigate Japanese Knotweed' and the 'Coronavirus pandemic', costs have mushroomed by £1,265,569 to a total of £4,415,385.

As the Council's original purchase order only authorised the original figure of £3,149,816, it hasn't been able to pay the contractor the since November and is now looking for approval to stump up the extra from its own funds, hoping that Transport for Greater Manchester and the GMCA will pay the money back - although they are under no obligation to do so, and the Council report states that "At this time there is no guarantee that this will be the case"...

The assessment of risk for the project is recorded as 'High' in the report, which concludes and repeats that "As stated in the Delivery Agreement, there is no obligation for funds to be made available from Growth Deal funding to cover the £1,265,569 that Salford Council is committed to paying Eurovia for the SBNI DP4 works"...

And the Council's legal team add: "Not surprisingly, despite working with the Council over those months, the contractor requires payment for the work undertaken in accordance with the contract, failing which they will consider taking legal action for recovery.

"This would be counter-productive for several reasons, not least because the Council could struggle to defend such a claim, and also the works could well cease or be seriously disrupted causing further avoidable delays and unnecessary costs whilst a new contractor is appointed, as well as incurring not inconsiderable legal costs should a claim be made against the Council..."

If the Council fails to secure the extra funds from GMCA and the Growth Fund, it could affect other highways works that are scheduled to take place, including the A580 /Lancaster Road junction and the A580 Worsley Road junction.