Galliford Try facing additional Aberdeen bypass costs

Galliford Try has indicated that the Aberdeen Western Peripheral Route (AWPR) remains on course for practical completion this summer but the firm expects to face additional costs due to delays.

The £745 million project to build a 28-mile bypass around Aberdeen, already subject to delays and having suffered from the collapse of Carillion, has encountered further problems due to recent inclement weather, Galliford Try announced this morning.

Galliford Try and Balfour Beatty, the two remaining members of the Aberdeen Roads Limited joint venture tasked with delivering the project, were left to cover the costs after former bypass partner Carillion went into liquidation in January.

Today, Galliford Try was unable to put a figure on the additional costs as it “will depend upon progress recovered through the summer”, when the project is expected to be completed.

Galliford Try said: “On the Aberdeen Western Peripheral Route we are making good progress on site, with progressive handover of sections of road under way. We have experienced some further cost pressure, principally from weather delays, which are likely to increase the exceptional charge in the current year. The amount will depend upon progress recovered through the summer, and is expected to be lower than the charge (£25m) taken in the first half. We are continuing to discuss several significant claims. Practical completion of the project is anticipated this summer.”

In a contrasting announcement also this morning, joint venture partner Balfour Beatty said there is “no change” to a previously announced £105m to £120m hit to its finances from the project.

Balfour Beatty said: “Completion of the Aberdeen Western Peripheral Road project is still expected this summer and there is no change to the £105-£120m Balfour Beatty cash outflow guidance for 2018 provided at the full year 2017 results.”

Client Transport Scotland has suggested it is prudent to aim for a late autumn opening date for the bypass.

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