York council terminates historic multi-million-pound Guildhall complex contract

York Council is to terminate the multi-million-pound Guildhall development contract with Interserve and will not progress to the next stage.

The contract had two stages, with the first phase providing a detailed build specification and a target cost which, if agreed, would lead to the letting of the construction contract.

The first phase has completed and the council said it had now “reflected on the current approach to developing this complex and historic site.”

In a statement, the council said: “As a result, the construction phase will not progress and instead, the council will consider options before inviting new bids from the market.”

Neil Ferris, director of economy and place, City of York Council, said: “I can confirm we have terminated our contract with Interserve to develop the Guildhall.  We set-up the contract following government procurement rules and as such, included a contractual break point after the first stage of the contract.

“We recognised from the start that given the site complexity and risks around the foundation structure, there was always the chance that estimate would be higher than anticipated.  We structured the procurement in this way to protect York residents from potentially spiralling costs.

“We remain committed to the Guildhall development and are excited about the potential it offers local businesses, communities and visitors.  Our next steps are to review options to reduce costs, such as revising the scale, scope or access arrangements to the site and we will invite members to confirm their preferred option in May.  In the meantime, to reduce delays, we will progress less disruptive works, such as fitting new utilities.”

Plans to transform York’s Guildhall complex into a “state-of-the-art venue for business” were released last year.

At the time, the council said the proposals aimed to transform the Guildhall complex and ensure the future viability of one of York’s most significant buildings through the creation of a vibrant business and civic venue.

Plans also included a restaurant development and public access to the riverside, maximising its economic use, heritage appeal and public access.