Galliford Try will have to find an additional £20M to complete the Aberdeen Bypass contract due to project delays, the contractor has revealed.
Work on the £745M project is being completed by both Galliford Try in a joint venture with Balfour Beatty, with both firm’s suffering from increased liabilities on the scheme after the collapse of their initial third partner Carillion in January.
Because of the additional £20M charge, the total cost overrun now stands at £143M.
In a trading update, Galliford Try also confirmed that completion of the bridge over the River Don would now be delayed to December due to “increased complexity and weather delays in implementing repairs to the bridge”.
In its update, the contractor added: “The final impact on Galliford Try’s financial results will be determined more importantly by the result of the group’s significant claim, in respect of which the board continues to pursue constructive discussions with the client.”
Galliford Try said it was pursuing constructive discussions with the client.
However, despite the £20M additional charge, the group said it expected pre-exceptional profits before tax for the financial year to be in line with previous guidance of between £170M and £190M.
The Aberdeen Bypass was initially delayed from spring to autumn and has suffered due to the collapse of Carillion, weather conditions prompted by the Beast from the East, and technical issues surrounding the River Don crossing.
In April, subcontracted workers ‘downed tools’ in a dispute with their employer on the Aberdeen Western Peripheral Route. In the same month Aberdeenshire Council sought repair costs up to £200,000, after local reports complained that the C13K Lairhillock Road was turned into a ‘war zone’ by construction traffic from the AWPR project.
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