SCARBOROUGH councillors last week decided to seek independent expert advice on whether to sue contractor Nuttall over the failure of Accropodes on its massive sea defence project.
The advice was about whether to sue or ask Nuttall to repair or replace them in exchange for a final payment.
Nuttall is seeking £55M for its work for the Scarborough coastal defence scheme, which was completed in June.
The council, under advice from consultant High-Point Rendel, had previously insisted that it should only pay £34M.
The original cost of the project was budgeted at £28M.
The Department for Environment, Food & Rural Affairs (DEFRA) is funding the scheme.
According to a confidential report seen by NCE, DEFRA, the Nuttall board and the council are negotiating a settlement of the row through payment of a lump sum (News last week).
Scarborough is also considering whether to claim compensation from High-Point Rendel over its handling of compensation events under the Engineering Construction Contract which was used on the project.