Cambridgeshire and contractor head to court over guided busway delays

Cambridgeshire County Council has admitted that court action over delays and cost overruns with its high-profile Busway project is “inevitable” after announcing the launch of an independent public review of the scheme.

The council’s cabinet ordered the review into the operation of the standard civil engineering contract used for the project. It claimed that the “final straw” was when the contractor – engineering firm BAM Nuttall – attempted to drop plans in the contract for lighting at a junction where buses will change onto a section of single track guideway. BAM Nuttall has now accepted that the lighting is necessary.

A contractual expert will be appointed to lead the review, with evidence heard in public, and the final report will be published. The council insisted the review would give it and residents a full investigation without the multi-million pound cost of a legally based public inquiry.

However, the independent review will only be carried out “after the legal process has concluded to avoid prejudice of the legal outcome”.

Cambridgeshire revealed that BAM Nuttall has had £14,000 a day deducted for late delivery of the project since February 2009. This amounts to more than £7m so far.

Roy Pegram, Cambridgeshire’s cabinet member for growth, infrastructure and strategic planning, said: “I am shocked that an internationally renowned contractor would even consider not installing lighting on a section of the route where it is needed for safety. To need to be told twice it is needed is even more worrying.

“The numerous delays and overspends by BAM Nuttall have angered everyone in Cambridgeshire and I’m sure the contractor potentially putting safety at risk will also be the final straw for residents as it has been for senior councillors.”

Cllr Pegram added that a full review of the standard civil engineering contract was necessary to make sure other users of the contract “do not have the same problems we have faced”.

He also said the council would ask the government for funding for the review as this was “a matter of national importance”.

The Busway project – which will run between St Ives and Cambridge and is the longest of its type in the world – was expected to cost £116m but looks likely to reach more than £160m.