Council braced for revised budget as cost of Derby road scheme doubles

The cost of a road improvement scheme in Derby has more than doubled in ten months, with council bosses now braced for a revised budget of £33m.

Galliford Try started on the A52 Wyvern Transport Improvement Scheme for Derby City Council last October with a construction contract value of £9m on the £15m scheme.

Issues were identified with the scheme in May, including differences between the budgeted costs and the emerging estimated committed costs, which resulted in potential delays in delivering the scheme.

Now, the council is expected to increase the operational budget to £33m in order to move the scheme forward.

Carole Mills, chief executive of Derby City Council, said: “At the time (May), the new administration said that the council would review the serious issues with the project, with a view to presenting a more accurate revised figure and timescale to cabinet in September.

“This review has made clear that the difficulties with the project are more complex than originally envisaged and, to move the scheme forward and ensure that works continue in a timely manner, it is necessary to increase the operational approved budget to £33m.  We are working hard to produce a final scheme cost estimate by late autumn.”

Mills said an investigation is being carried out by the council’s independent audit service and the results of this will be reported to cabinet once it is complete.

She said: “I want to emphasise how seriously we are taking these failings.  The council is committed to finding out and fully understanding what went wrong and to delivering the scheme.  Derby citizens and council tax payers should have every faith that this issue will be resolved and the benefits of this key infrastructure project will be realised.

“With over 18 million vehicles using the road each year, the A52 Wyvern Transport Improvement Scheme is a key infrastructure project for our city, which will bring significant benefits to a congested part of Derby’s principal road network, offering improved access to the city and supporting wider economic growth.”