Issue - meetings

To consider a report of the Cabinet Member for Economy & Regeneration.

(Note: the report contains information ‘not for publication’ in its appendix that has been circulated to cabinet members only)

The A6 to Manchester Airport Relief Road commenced on site in spring 2015 and was due to be completed in autumn 2017 although contract completion was spring 2018. The scheme is funded through Department for Transport and Greater Manchester Combined Authority Earn Back finances.

The contractor Carillion Morgan Sindall (CMS) was appointed as a joint venture partnership in 2013 to assist in designing the proposed scheme and then constructing it. Carillion was excluded from the joint venture in early 2018 following its financial issues including closing parts of the business. Morgan Sindall is now delivering the remaining elements of the scheme. However there have been a number of issues on site that have delayed completion of the scheme creating time and financial pressures on the project. The client and the contractor have been in discussions during 2017 in relation to a number of claims for escalating costs. This report provides an update on the outcome of those discussions and requests approval for the principle of agreeing an addendum to the contract and delegating approval of the final document to the Corporate Director Place Management and Regeneration in consultation with the Cabinet Member for Economy and Regeneration.

The Cabinet is recommended to:-

·         Notes the content of the report and approves the proposed settlement with Morgan Sindall.

·         Authorise the Corporate Director for Place Management & Regeneration and Head of Legal and Governance in consultation with the Cabinet Member for Economy and Regeneration, to finalise the settlement agreement and take all necessary steps to bring it into effect.         

Officer Contact: Sue Stevenson, 0161-474-4351, sue.stevenson@stockport.gov.uk

The Cabinet Member for Economy & Regeneration submitted a report (copies of which had been circulated) updating the Cabinet on the outcome of discussions with contractors for the A6-Manchester Airport Relief Road in relation to concerns about the scheme costs and delivery. The Cabinet was asked to give consideration to a proposal to agree an addendum to the contract to settle outstanding matters.

The Cabinet Member highlighted a number of unforeseen events that impacted on the delivery of the scheme, including two significant flooding events and the need for more extensive earth works, and the collapse of Carillion PLC. A number of outstanding matters needed addressing before the road could be opened for use by vehicles.

The Leader of the Council emphasised the detail contained in the public report and the frankness of the assessment made. He also stressed that the road scheme was still within budget and the Council had worked hard to ensure that the final settlement was right and protected the public purse.

(Note: the report included a ‘not for publication’ appendix that had been circulated to cabinet members only)

RESOLVED – That in relation to the A6MARR Update:

·         the content of the report be noted and approval be given to the proposed settlement with Morgan Sindall.

·         the Corporate Director for Place Management & Regeneration and the Head of Legal & Democratic Governance, in consultation with the Cabinet Member for Economy and Regeneration, be authorised to finalise the settlement agreement and take all necessary steps to bring it into effect.