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.

Highways InProfile

latest magazine issue
Highways jobs

Senior Highways Engineer

£50,754 – £53,607 per annum
Our people are deeply committed to providing excellent services to our residents, doing all we can to make lives as good as they can be. Hounslow (City/Town), London (Greater)
Recruiter: Hounslow London Borough Council

Senior Engineer x 2

£47,532 –£55,620 per annum
Our people are deeply committed to providing excellent services to our residents, doing all we can to make lives as good as they can be. Hounslow (City/Town), London (Greater)
Recruiter: Hounslow London Borough Council

Rights of Way Assistant

£28,797 - £30,708
Within the Highways Directorate we are looking to appoint enthusiastic, customer focused and experienced person to join the Service. Darley Dale, Matlock
Recruiter: Derbyshire County Council

Project Design Engineer

Up to £0.0000 per annum
Project Design EngineerFixed Term, Full Time£37,559 to £44,186 per annum Location
Recruiter: Essex County Council

Project Design Engineer

Up to £0.0000 per annum
Project Design EngineerFixed Term, Full Time£37,559 to £44,186 per annumLocation
Recruiter: Essex County Council

Principal Transport Planner (Strategy)

£46,731-£49,764
We are looking for an experienced professional to join North Northamptonshire Council as a Principal Transport Planner (Strategy). Sheerness House, 41 Meadow Road, Kettering moving to Haylock House, Kettering Parkway, Kettering NN15 6EY, United Kingdom
Recruiter: North Northamptonshire Council

Highways Capital Delivery Manager

£50,788 - £52,805
To be responsible for the implementation of Welsh Government’s Renewal and Upgrade programme. Baglan, Port Talbot
Recruiter: South Wales Trunk Road Agent

Electrical Design Engineer

Grade 9 £34,314 to £37,938 - Grade 10 £37,035 to £40,476 - Grade 11 £39,513 to £43,693 - Grade 12 £42,708 to £46,731 p.a.
The Construction Consultancy Services (CCS) team provide client-side construction consultancy services across a range of professional disciplines to d Durham
Recruiter: Durham County Council

Park Operations Assistant - Thorndon Country Park

Up to £12540.50 per annum
This is a permanent, part time position on an annualised hours contract. This means you will be contracted to work a minimum of 964.59 hours per yea England, Essex, Brentwood
Recruiter: Essex County Council

Highways Capital Lead

£47,754 - £50,788
To be responsible for management of the Regional Highway Capital Delivery Teams South Wales
Recruiter: South Wales Trunk Road Agent

Senior Development Management Engineer

£37,938 - £44,711
In line with our One Coventry Values, we want to ensure that our communities are represented across our workforce Coventry, West Midlands
Recruiter: Coventry City Council

Head of Highways

£66,366 - £85,284 pa
Highway Operations is a large division within the Planning, Growth & Infrastructure. Enfield (City/Town), London (Greater)
Recruiter: Enfield London Borough Council

Director Highways, Transport & Waste Management

up to £120k
There for Nottinghamshire. There for each other. There for you. Nottinghamshire
Recruiter: Nottinghamshire County Council

Director of Highways and Transportation

£126,909
We’re seeking a dynamic and innovative leader to spearhead our Highways and Transportation services. Essex
Recruiter: Essex County Council

Senior Structures Technician

£32,654 - £36,124 plus circa £2000 - £4000 OT (variable
To lead on the planning, delivery and reporting of the highway structures General Inspection programme. Baglan, Port Talbot
Recruiter: South Wales Trunk Road Agent

Assistant Director of Place Operations

£85,962 to £93,267
Bury is a proud and prosperous borough Bury, Greater Manchester
Recruiter: Bury Council

Career Grade Transport Planner (Carer Grade 6-8)

Grade 06 (£29,093 - £32,654) TO Grade 08 (£37,938 - £41,511)
This is a fantastic opportunity to work for a forward thinking and dynamic transport authority located in the heart of the North West Warrington, Cheshire
Recruiter: Warrington Borough Council

Principal Performance and Assurance Manager

£Competitive
We have an exciting opportunity for a highly motivated Principal Performance and Assurance Manager to join our Senior Management Team SBIM Avonmouth, Bristol
Recruiter: Amey

Principal Construction Manager

£Competitive
We are excited to offer a fantastic opportunity for a Permanent Principal Construction Manager to join our dynamic Area 12 West Yorkshire
Recruiter: Amey

Electrician

£Competitive
We are excited to offer a fantastic opportunity for two Permanent Electricians Tingley, Wakefield
Recruiter: Amey
SUBSCRIBE NOW

Latest Video

Subscribe to Highways today to ensure you keep your finger on the pulse of everything happening in the UK road network throughout the year.

SUBSCRIBE NOW