Costain and Welsh Government agree A465 settlement

24/02/2021
Steve Menary

Costain has agreed a settlement with the Welsh Government over changes to its contract for a major widening of the A465 but declined to confirm the exact value.

The two sides first agreed a deal valued at £159.5m in 2015 but the project has been dogged by complex engineering issues, resulting in costs and timelines spiralling.

In April 2019, the Welsh Government confirmed that an extra £54m was needed to complete the works, which took the cost of the project to £321.1m.

Since then Costain revealed it had written off £45.4m in its results for the first half of last year and the suggestion is the latest settlement is of a similar amount.

'The financial terms of the Settlement are in line with the provision made by the Group for the year ended 31 December 2020,' said Costain in a statement to the Stock Exchange.

'As a result of the Settlement, the Company has certainty of the final account sum payable by the Welsh Government to the Company, including further milestone payments.'

However it is unclear if costs could rise yet further  as 'Costain continues to be responsible for the delivery and the management of associated project risks for the remaining works, which are scheduled to be completed this September,' the contractor added.

The scheme comprises widening an 8-km stretch of the A465 between Gilwern and Brynmawr near the Brecon Beacons. Problems and changes on the project included the discover of asbestos at Brynmawr and the addition of an extra junction.

A Welsh audit office report published last February suggested the scheme would finish in April 2021 but that target will not be met.

Latest Issue

latest magazine issue

INSIDE:

  • COP26: The sector reacts
  • Road pricing: Putting the theory into practice
View the latest issue


Highways jobs

Senior Engineer- Highways

£23,080- £30,451
Our Highways Service is growing to reflect the increase in investment. Huddersfield, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Environmental Data Officer

£26,592
In this role you will collect, maintain and manage high quality energy and environmental data, and providing... Camden, London (Greater)
Recruiter: Camden London Borough Council

Senior Engineer - Highways Asset Maintenance

£39,854 to £43,741 (Pay Award Pending)
There’s never been a more exciting time to join Doncaster Council. Doncaster, South Yorkshire
Recruiter: Doncaster Council

Director of Environmental & Community Services

Up to £90,096 per annum
We seek an energetic and committed Director who has the right motivations and values; someone who is... Long Eaton, Nottingham
Recruiter: Erewash Borough Council

Transport Infrastructure Commissioning Officer

£30,451 to £34,728 per annum
We have a great opportunity in Somerset to join our Highways and Transport Service. Taunton, Somerset
Recruiter: Somerset County Council

Team Manager Band 3 – Environment Strategy & Change

£46,845 - £48,849 per annum
This is the perfect time to join St Helens and become part of our exhilarating journey and help build our legacy for the future. St Helens, Merseyside
Recruiter: St. Helens Metropolitan Borough Council

Noise and Nuisance Officer

£32,301 - £35,949 per annum
To be successful in the Noise and Nuisance Team you will need a genuine commitment to... Kensington and Chelsea, London (Greater)
Recruiter: The Royal Borough of Kensington & Chelsea Council

Team Manager Band 3 - Fleet, Depot & Security

£46,845 - £48,849 per annum
This is the perfect time to join St Helens and become part of our exhilarating journey and help build our legacy for the future. St Helens, Merseyside
Recruiter: St. Helens Metropolitan Borough Council

Minibus Driver

Hourly rate
North Yorkshire County Council
Recruiter: North Yorkshire County Council

Minibus Driver

Hourly rate
North Yorkshire County Council
Recruiter: North Yorkshire County Council

Minibus Driver

Hourly rate
North Yorkshire County Council
Recruiter: North Yorkshire County Council

Minibus Driver

Hourly rate
North Yorkshire County Council
Recruiter: North Yorkshire County Council

Minibus Driver

Hourly rate
North Yorkshire County Council
Recruiter: North Yorkshire County Council

Asset Manager

£42,821 - £46,845 per annum
The Highway Asset Manager is responsible for the strategic management of all the council’s highway assets... Blackburn, Lancashire
Recruiter: Blackburn with Darwen Borough Council

Digital Evidence Officer

£25.137 - £26.520
The Digital Evidence (CCTV) Team are responsible for improving community safety outcomes throughout the Royal Borough of Greenwich by... Greenwich, London (Greater)
Recruiter: Royal Borough of Greenwich

Guaranteed Relief Cleaners North and South Kirklees Area

£9.25 per hour
Some of the key features and benefits of being part of the Kirklees Cleaning Service include... Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Group Engineer - Safety Design

£40,876 - £45,859
We are looking for an experienced engineer to join our Highways Safety Design team. Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Group Engineer - Highways Network Management

£40,876 - £45,859
Are you experienced engineer looking for an opportunity to improve the lives of the local people of our towns and village centres? Kirklees, West Yorkshire
Recruiter: Kirklees Metropolitan Council

Energy and Sustainability Officer

£37.722 - £40.869
The role will be key to successful progress of the Carbon Neutral Plan and setting the borough on the path to reaching the net zero target.  Greenwich, London (Greater)
Recruiter: Royal Borough of Greenwich

Transport Development Team Leader

£53,018 - £59,964 per annum + Staff Benefits
We're looking for an experienced and innovative engineer. Woking, Surrey
Recruiter: Surrey County Council

Highways Presents

 

Highways on Fridays

Register now!

Latest Video