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Galliford Try hit by extra Aberdeen bypass costs

Galliford airport

Galliford Try will face extra costs over the Aberdeen Western Peripheral Road (AWPR) due to delays caused by bad weather.

The construction company said that the exceptional charge was expected to increase, but will be less than the £25M charge announced in its half year financial report. 

The delayed £745M Aberdeen bypass scheme has been affected by poor weather conditions and the collapse of former joint venture partner Carillion in January this year. However, the company is still on course to be completed during the summer. 

A company spokesperson said: “On the Aberdeen Western Peripheral Route we are making good progress on site, with progressive handover of sections of road under way.

“We have experienced some further cost pressure, principally from weather delays, which are likely to increase the exceptional charge in the current year.

“The amount will depend upon progress recovered through the summer, and is expected to be lower than the charge taken in the first half.

“We are continuing to discuss several significant claims. Practical completion of the project is expected this summer.”

In March Galliford Try announced it had raised a £157.6M through a rights issue to cover costs incurred on the route.

Joint venture partner Balfour Beatty said it is not expecting further costs in relation to the project. A statement said: “Completion of the Aberdeen Western Peripheral Road project is still expected this summer and there is no change to the £105M-£120M Balfour Beatty cash outflow guidance for 2018 provided at the full year 2017 results.” 

 

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