Rob Davies 

Galliford Try warns of extra costs for Aberdeen bypass

Construction firm says bad weather will add tens of millions to scheme already hit by collapse of Carillion
  
  

A CGI image of the planned Aberdeen bypass
A CGI image of the planned £750m Aberdeen bypass. Photograph: PR

The construction firm Galliford Try blamed freezing weather earlier this year for delays to the Aberdeen bypass that will add tens of millions to costs incurred from the collapse of Carillion, its former partner on the project.

Galliford Try raised £150m from shareholders this year, blaming overrun costs on its contract to build the £750m Aberdeen western peripheral route, exacerbated by Carillion’s liquidation.

It said the project, a joint venture with Balfour Beatty, was suffering “further cost pressure, principally from weather delays, which are likely to increase the exceptional charge in the current year”.

The extra cost will be less than the £25m charge it took in the previous half of the year, the company said.

But while Galliford Try increased its estimated financial hit on the project, Balfour Beatty said there was no change to its prediction of up to £120m in extra costs.

Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

The Aberdeen bypass is not the only large public works project to face delays and cost increases as a result of Carillion’s collapse.

The company was the lead contractor building the Royal Liverpool University hospital and the Metropolitan Midland hospital in Birmingham. Both have been delayed indefinitely as a result of the firm’s insolvency.

 

Leave a Comment

Required fields are marked *

*

*