Herefordshire Council has agreed to retender the first phase of the Western Bypass if ongoing corrective action with Graham does not produce a construction bid within the approved £45.3m budget.
The council’s cabinet approved the proposal on 29 September, with the decision due to take effect on 1 October. A new procurement process would be launched if the council’s corporate director for economy and environment is not satisfied that Graham can deliver an affordable bid.
Cost pressure
Graham was appointed under a preconstruction services agreement in April to develop the design and technical proposals for the 3.6km road. A report to councillors said the scheme had come under financial pressure because of design changes and construction inflation.
It also said some planned value-engineering savings were no longer considered achievable. The council’s external quantity surveyors are supporting the corrective action process set out in the agreement.
The report said assurance should be obtained that the process would still result in a bid for the construction works within the agreed governance arrangements and budget. If that could not be demonstrated, it recommended procuring a new construction contract for Western Bypass Phase One.
Design and land issues
Conservative councillor Philip Price said design work had been progressing since Graham’s appointment on 30 April, with the contractor and council officers engaging National Highways and Network Rail.
He said revisions were required to accommodate changes to road and bridge standards introduced by National Highways through the revised Design Manual for Roads and Bridges.
Price also said the owner of one of the seven land parcels needed for the scheme had withdrawn from negotiations, meaning the council would need to pursue a compulsory purchase order.
Green Party councillor Stef Simmons criticised the project’s management, saying: “We have spent £4m with a further £1.6m committed without any clue as to what the total project cost may be.”
Connection to A49
National Highways said it had stringent design and assurance requirements for work on its network and that projects needed to comply with them for safety reasons.
A spokesperson added: “The bypass connects to the A49 south of Hereford so we have to be assured that the design for it is suitable, in addition to agreeing the land ownership and maintenance boundaries after the construction is completed.”
Graham said in March that the first phase would comprise a 3.6km single-carriageway road, including a bridge over the Hereford-Newport railway line and several other structures. The contractor was contacted for comment on the cabinet report and vote.