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Cambridgeshire claims £55M from Bam over busway delays

Cambridgeshire County Council is seeking to recover £54.7M from contractor Bam Nuttall and parent firm Royal Bam Group for its delayed Guided Busway project.

The writ was filed on 11 August and relates to damages for break of contract on the design and construction of the scheme.

Zurich Insurance is also named in the action, as the council claims a £7.5M guarantee bond has not been paid.

“Bam Nuttall finally delivered the scheme two years late, but now dispute they should be liable for the overspend,” said a council spokesman.

“The council has a duty to deliver best value for Cambridgeshire taxpayers and we are taking the necessary actions to achieve this.”

The original project cost was £116.2M while the construction fee was £87M. However, the project cost has now reached £151M. Bam Nuttall declined to comment.

Readers' comments (2)

  • Why has the Performance Bond not been paid? Was it not On Demand?
    Why a sum claimed by the Client as high as £55m at this late stage? Were Bam over-paid and why? Were they paid as per an agreed stage payment schedule and/or a schedule related to progress? Were they claimed V.O's which are now being challenged by the Client? Did Bam abandon the job and others finished it, or refused to remedy defects advised to them as requiring rectification; and if so why wasn't the Bond not pulled immediately or at least much earlier. Or is the Claim LD's for Delay or certified General Damages arising from the delay and what Retentions were held and available?
    Again, even some very basic details would be of interest!

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  • I worry that we have dumbed-down our local authorities so much that most of them are incapable of promoting anything that is slightly original (check out Edinburgh Tram!). Who are the consultants advising them? Equally worrying is the thought that consultants are bidding for jobs that they either are not sufficiently skilled for, or that their skill resources are so thinly stretched that they cannot apply the correct amount of attention on their client's behalf. The informed client seems to have been killed off in the last few decades, without there being sufficient consultant resources to fill the gap.

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