Adjudicator rules council does not need to pay extra money to former contractor for regeneration project

The council said the independent adjudication also confirmed that the contractor Inside Limited’s attempt to terminate the contract was invalid, while the council’s subsequent termination was valid. The process found “the majority” of the contractor’s financial claims were not proven, a council statement said.

According to the adjudicator, payments already made by the council meant none further were due and evidence to support these claims was not provided.

A council statement said: “Now that this contractual matter has been resolved, the council will move forward with procuring a new contractor to complete the project, with further updates to follow.

“We recognise the strength of feeling locally following the contractor leaving the site and the impact this has had on residents and businesses. Our focus remains on completing the scheme and delivering the benefits for Clay Cross.”

In February, a council statement said contractor Inside Limited had stopped carrying out works.

Inside Limited ceased trading in January and said in a statement reported by the BBC that North East Derbyshire’s stance “presents an incomplete picture of the project and the issues encountered during delivery”.

It went on: “Inside Limited worked on this regeneration project for a prolonged period under extremely challenging circumstances and continued attempting to deliver the scheme despite ongoing issues relating to possession, utilities, design development and changing project requirements.

“The company successfully delivered more than £80m of construction projects across the UK during its trading history and remains proud of the efforts of its employees, subcontractors and supply chain partners.

“Inside Limited strongly disputes aspects of the narrative currently being presented publicly and reserves all rights in relation to the final account and associated matters.”

The overall project includes pedestrianisation and creating a new town square.

Mark Smulian