North Yorkshire County Council has set aside £11 million to cover any contingencies for a major realignment of the A59 at Kex Gill.
The project is set to cost £68.8 million and construction was due to start this month, but no precise date has been given.
The authority awarded a £50.7 million to John Sisk & Son (Holdings) Ltd, an Irish civil engineering and construction firm, to build the scheme.
The project is due to be funded by a £56.1 million grant from the Department for Transport, with the council covering the rest from its reserves.
Now, Cllr Keane Duncan, executive councillor for highways, has confirmed that £11 million has been factored into the £68 million budget to cover any issues with ground conditions or bad weather.
Cllr Duncan said:
“The re-alignment of Kex Gill will undoubtedly be one of the council’s most ambitious ever highways projects. The road has been identified by the government as one of the most important strategic routes nationally and this project is vital to maintaining east-west connectivity.
“Within the budget of £68.8 million there is an £11 million contingency. This includes a contingency for both price inflation and potential construction issues that may arise such as unexpected ground conditions or prolonged bad weather. The risk of price inflation sits with the contractor and this has been factored into the total bid price.
“There is always the risk of cost increases on any major construction project, however, we believe we have secured as much certainty as we can.”
Read more:
- Council warns of ‘high risks’ as Kex Gill cost soars to £69m
- £69m Kex Gill road scheme set for December start after contractor named
It comes as senior county council officials have warned about the risk involved with the authority’s major projects amid soaring inflation.
Gary Fielding, the council’s director for strategic resources, warned previously that the “burden of risk” for major projects, such as the realignment of the A59 at Kex Gill, will fall on the authority amid soaring inflation.
The last update said contractors were expected to move on site this month to clear the moorland by late February next year, to avoid the bird nesting season. The estimated completion date is May 2025.
The A59 at Kex Gill, near Blubberhouses, is the main route between Harrogate and Skipton. Since 2000, the route has been closed 12 times following landslips.
The project has faced numerous delays and following tender returns, the estimated cost of the scheme increased by £7.2 million to £68.8 million, which the council attributes to due to inflation affecting constructions costs.
It therefore approved an increase in its allocated funding from £5.5 million to £12.7 million, given the DfT grant is fixed.
