08:08 Monday 16th February 2015
BBC Radio Cambridgeshire
DOTTY MCLEOD: There are calls for an investigation into why improvements to the Fletton Parkway in Peterborough will end up costing over 30% more than planned. Widening of the road hit problems in January when soil contamination was discovered, adding £4.5 million to the project cost and delaying completion. Now three counclllors say the decision to approve that extra spending needs to be looked at closely or called in. One of those councillors is David Harrington, an Independent councillor who represents Newborough. David, what’s your issue with the way this decision’s been made?
DAVID HARRINGTON: Good morning Dotty. Well the purpose of the call-in is not to question the need for the scheme. I fully appreciate that growth has got to take place in the city, but it’s has to be measured and it has to be sustainable. And it’s to look into if the Council can demonstrate if it has understood the terms of the contract it’s entered into, and effectively managed the obligations of the running of the contract. There are a number of discrepancies in the Cabinet report. It says that the fixed price contract option is a lot more complex than the preferred target cost model, which they went along with. And it’s actually not true. Both are very complex in their respective detailing and I want to question, did the Council fully understand their obligations in the contract. Because the type of contract, this target cost contract, effectively means that the Council enters into a partnership with the contractor, and they do it on an equal 50/50 basis. And all variations of that contract should be fully identified before the scheme starts, to see what proportionality of any risks have taken place. Now it appears that the Council have been fully loaded with all of the costs, and the contractor, as far as it appears, has no obligation in any of this. So it needs to be demonstrated why the contractor had no costs that it had to meet.
DOTTY MCLEOD: Because this is a considerable extra cost, £4.5 million to get this road finished.
DAVID HARRINGTON: Exactly. And there’s a number of things that are interwoven in the report that was put before Cabinet. It was already identified that this road would need a major upgrade. That was identified in 2011 at a cost of £9 million. Well that must have been apparent then, that there would have been significant money to upgrade drainage etcetera, to make that amount of money costing to be viable. So they must have known that there were going to be problems with the building of this new extension. So I can’t see why those weren’t taken into effect in the first instance, why this £9 million wasn’t identified and put in with the contract that we have now.
DOTTY MCLEOD: OK. Well let’s talk to Gavin Elsey, who is Peterborough City Council’s Cabinet member for Street Scene, Waste Management and Communications. The basic charge Gavin is that the City Council took their eye off the ball when they were signing up to this scheme. Do you think that’s fair? Continue reading “Fletton Parkway overspend – the devil in the detail”