The cost of the A52 Wyvern Transport Improvement Scheme has increased from £14.9M to £33M, Derby City Council has revealed.
In a public statement, the council’s chief executive Carole Mills said that project complexities had forced Derby to increase the approved budget to £33M. The council says it will pay for this out of its general contingency funds.
The £9M main works contract was awarded to Galliford Try in October 2017 under the Midlands Highways Alliance framework.
Problems were first cited in May, following a full level survey of the site. This survey identified complexities, particularly in relation to the Derwent Parade Junction, the realignment of the Wyvern slip road and pedestrian footbridge access.
Mills said: “In May this year, issues were identified with the scheme. This included differences between the budgeted costs and the emerging estimated committed costs, which resulted in potential delays in delivering the scheme.
“At the time, the new administration said that the council would review the serious issues with the project with a view to presenting a more accurate revised figure and timescale to cabinet in September.
“This review has made clear that the difficulties with the project are more complex than originally envisaged and, to move the scheme forward and ensure that works continue in a timely manner, it is necessary to increase the operational approved budget to £33M. We are working hard to produce a final scheme cost estimate by late autumn.
“An investigation is being carried out by the council’s independent audit service. The results of this will be reported to cabinet once it is complete.
“I want to emphasise how seriously we are taking these failings,” said Miller. ”The council is committed to finding out and fully understanding what went wrong and to delivering the scheme. Derby citizens and council tax payers should have every faith that this issue will be resolved and the benefits of this key infrastructure project will be realised.”
A Galliford Try spokesman said: “We’re currently working closely with Derby City Council to understand more clearly the reasons for the increased costs and how they can be mitigated.”
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