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Thu November 15 2018

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Aberdeen bypass completion pushed back to December

8 Nov Galliford Try is having to spend a further £20m more than it had planned to finish construction of the delayed Aberdeen Western Peripheral Route for Transport Scotland.

Work on the Aberdeen Western Peripheral Route [Photo: Transport Scotland]
Work on the Aberdeen Western Peripheral Route [Photo: Transport Scotland]

In a trading update to shareholders, Galliford Try said that it expects to complete the final section of AWPR in December, including the bridge over the River Don. It was supposed to finish in spring 2017.

“Increased complexity and weather delays in implementing repairs to the bridge,” had recently set the project back, the company said.

“As a result of higher than anticipated direct costs, and the further delay to completion, our estimate of the final costs to complete the contract has increased by approximately £20m.”

However, it is pursuing a “significant” claim against the client on the project, which is the subject of “constructive discussions”.

Galliford Try is building the AWPR in joint venture with Balfour Beatty. There had been a third member of the team, but Carillion went bust in January 2018. The AWPR project was one of three UK schemes that Carillion executives blamed for the financial difficulties that resulted in its liquidation in January. 

In February Galliford Try said that cost overruns on the project, coupled with it now having to shoulder 50% instead of 33.3%, had increased its cash commitments on the project by more than £150m.

The three contractors originally agreed the job at a fixed price of £550m. The project was initially meant to be finished in spring 2017. When earthworks were not finished before the end of 2016 and winter set in, the opening was pushed back to the end of 2017. Subsequent delays pushed completion back to spring 2018.

MPU

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