Thank you for your interest in this story.
To continue reading this article, subscribe to the Stray Ferret for as little as £1 a week.
Already a subscriber? Log in here.
11
Sept 2024
Harrogate Station Gateway: Council responds to concerns about appointing its own company
North Yorkshire Council has said it inserted a clause into the Harrogate Station Gateway contract that would enable it to appoint its own in-house company to do the work.
The £12.1 million gateway scheme, which includes creating a cycle lane on Station Parade and a bus lane on Lower Station Parade, will be Harrogate’s biggest town centre redevelopment for 30 years.
Last year the council hired British construction firm Galliford Try, which has 3,300 staff and has undertaken major projects such as the £350 million Queensferry Crossing in Scotland, to undertake the work.
But the Stray Ferret revealed this month the local authority is now considering dropping Galliford Try for its own company — NY Highways.
Richard Binks, the council’s head of major projects and infrastructure, told a business meeting it was “essentially a two-horse race” between NY Highways and Galliford Try.
A decision is due before the end of the year before work gets underway in April next year after years of wrangling that has seen the project downgraded but costs rise.
NY Highways is a roads maintenance company with 250 staff that has never taken on a project of this scale. It is a council Teckal company, which means it is exempt from competitive tender processes when it contracts with the council.
A south facing visual of how Station Parade will look.
News of its possible appointment prompted questions at a gateway business meeting this month about whether the council was acting properly by effectively hiring itself at this late stage and whether doing so would put taxpayers at risk if costs continued to escalate.
Cllr Keane Duncan, the Conservative transport chief with oversight of the scheme, told businesses the procurement exercise was about seeking “best value for the taxpayer”.
After the meeting, the Stray Ferret asked the council if any other companies were given the opportunity to bid for the contract, and if so was it advertised. We also asked if taxpayers would be expected to pay any increase in the cost of the scheme if NY Highways were appointed.
The council replied with the following statement:
The contract was advertised in line with public procurement regulations, so the bidding contractors knew during the original tender they were bidding for a two-stage collaborative contract – the design development and construction planning, then delivery of works.
A clause was also included to allow us to appoint a different delivery partner, should we wish to do so, to ensure best value for money.
Regardless of contractor choice, the costs will be vigilantly managed under the contractual arrangements entered. This is why we are exploring different delivery partners to help ensure the allocated budget is carefully managed, with a contingency plan in place should any unforeseen circumstances arise, as these would need to be covered by grant or council funding.
The statement also said that work was “anticipated to be completed by spring 2026” – meaning 12 months of town centre disruption.
3