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11
Nov
Council resolves £3.1m Kex Gill contract claim
North Yorkshire Council has resolved a £3.1 million claim over a delayed contract award for the multi-million pound Kex Gill scheme.
The project, which is one of the council’s biggest ever capital investments, will see the key east-west route linking Harrogate and Skipton realigned.
But it was revealed in May the cost had increased by £13.7 million from £68.8 million to £82.5 million.
The council increased the budget partly to cover compensation claims — referred to as compensation events — made against the authority from contractor John Sisk & Son.
One of the claims related to the the delayed awarding of the contract, which was expected to amount to £3.125 million.
However, Cllr Malcolm Taylor, executive councillor for highways at the council, said the issue had since been resolved.
In a statement due before full council, he said:
On the commercial front, the adjudication relating to compensation event 01 has been resolved in favour of the council. A compensation event is a mechanism for contractors to claim extra time and/or money for dealing with unexpected changes. Commercial discussions regarding other CEs are ongoing.
The council has so far received 191 claims over the scheme — though it said the majority have been resolved.
The authority said previously that the claims related to a number of matters, such as the safe removal, transportation and disposal of a larger volume of material from the site than had been originally expected, essential design changes, weather impacts, as well as costs incurred by the Department for Transport’s later than expected award of funding.
Cllr Malcolm Taylor
Council officials remain in discussions over resolving the remaining compensation events.
Meanwhile, the increase in costs from the scheme will fall on local council taxpayers because of the terms of the contract.
Under the deal, the Department for Transport awarded a fixed sum of £56.1 million and the council contributed £12.7 million.
But the contract stipulated the council was responsible for any price rise, which meant it had to stump up the £13.7 million increase — taking the total paid by local council taxpayers to £26.4 million.
However, the council has warned that the cost of the project could increase further — which the taxpayer would ultimately foot the bill for.
It comes as the project reached a “milestone moment” in September as the base layers of asphalt were laid for the new four-kilometre section of road.
Cllr Taylor said the scheme remains on schedule to open in Spring 2026.
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