Wates Construction has lodged a claim for an extra £2.3m for the refurbishment of a shopping centre in Basingstoke that it completed last year.

The facelift of The Malls was originally budgeted by Basingstoke & Deane Borough Council at £5.9m. Work started in Auguist 2010 and finished a year later. The main feature of the project was a installation of a new EFTE foof canopy. Other works included a new entrance, new shop fronts and paving and landscaping improvements.

The bill has yet to be finally settled however, with negotiations continuing over Wates' substantial claim.

Local newspaper Basingstoke Gazette quotes councillor John Izett, cabinet member for property and finance, saying: “The contractor is claiming £2.3m more in scheme costs than the currently valued position, but the council’s contract team disputes the scale and validity of the contractor claims. At this stage in a contract, it is not unusual for there to be a difference between client team and contractor over the value of works completed, and it is part of the contract process to determine final costs.

“It is nevertheless disappointing and concerning that the contractor has decided to make such a substantial claim. If there is any substance to this claim, we will need to understand how it has arisen.”

Clly Izett said that unforeseen problems included extra structural works to the lift shaft by The Anvil theatre, which were only uncovered when the area was stripped.

A Wates spokesman told the paper: “We are currently working with Basingstoke & Deane Borough Council and hope a resolution is reached by the end of the year. As a locally-based business, we are committed to working on great schemes which benefit the local Basingstoke community.”

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