Near £250k bill for council emerges after roundabout works overran

Redcar and Cleveland Council oversaw a revamp of the A171 Swan’s Corner roundabout in Nunthorpe, Middlesbrough, appointing the firm Esh Construction to carry out the work in November 2021.

Esh was contracted to start work in January last year, but a delay of two months occurred before it could begin after electrical distribution company Northern Powergrid required time to divert its services.

The unplanned delay on site meant that the original tendered sum for the work increased from £1.08m to £1.32m with the local authority obliged to pay an additional £248,000 to Esh under the terms of the contract – money that will come from its highways budget.

The Local Democracy Reporting Service asked the council if it was seeking compensation from the utility company concerned with a spokesman stating that a “legal process is ongoing”.

The project, which was completed in November last year, involved removing the old roundabout and replacing it with a lozenge-shaped central island, as well as widening approach roads and installing pedestrian crossing facilities.

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Plans to upgrade the roundabout, which links Middlesbrough and Guisborough and provides access to Nunthorpe Academy school and Ormesby Bank, were submitted in 2019 and aimed at easing the strain on the local road network caused by new housing developments, including Roseberry Manor and Nunthorpe Grange, and allowing greater capacity at peak times.

A total of £2m had previously been made available from the Department for Transport towards the roundabout improvements – which also included a contribution from the council –  and a scheme to widen the accident-prone A171/Flatts Lane junction and install new traffic lights.

A Google Maps image of the original Swans Corner roundabout in Nunthorpe, Middlesbrough, before its revamp. Picture/credit: Google

On completion of the new roundabout, Esh had described how the works had been complex and “presented challenges”.

It said it had taken a phased approach to reducing disruption with traffic flows and pedestrian routes being maintained, while the council also thanked the vast majority of motorists for their patience.

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Recent council cabinet papers detailing the extra spend said the local authority was “contractually obliged to compensate Esh Construction for additional costs incurred as a result of delays they were not responsible for”.

The original planned duration of 23 weeks for the highway improvements had been extended to 34 weeks.

A spokesman for the local authority said: “The council can confirm that there were increased costs associated with the scheme to improve Swan’s Roundabout which were due to a number of factors. 

“A legal process is ongoing and therefore we are not able to comment further at this time.”

Northern Powergrid has been contacted for comment.

Meanwhile, a spokesman for Durham-based Esh Construction said: “The variation cost to the original tendered sum was a consequence of our programme being extended to accommodate delays caused by late utility diversions. 

“These were not part of our contracted scope of works.”